Are UK bakery businesses ready for incoming SPS regulations on EU exports?

For UK bakery businesses exporting to the European Union, the regulatory landscape is once again shifting.

The change is looming to coincide with period of significant inflation for bakers. After several years of post‑Brexit disruption, the UK and EU are now moving towards a new Sanitary and Phytosanitary (SPS) Agreement, announced almost a year ago now in May 2025 and which remains under negotiation, with implementation expected from mid‑2027.

While the agreement promises reduced border friction in the long term, the transition period presents significant challenges particularly for bakery manufacturers whose products fall into regulatory grey areas between “low‑risk” ambient foods and higher‑risk composite products.

Here, Duncan Reed, regulatory and corporate defence partner at law firm Birketts LLP, discusses whether UK bakers are ready for the incoming regulations, how to best to prepare for them, and the mistakes to avoid.

Why do SPS rules matter?

SPS rules govern food safety, hygiene, labelling, traceability and ingredient controls. Contrary to a common misconception, they do not apply only to meat, dairy and fresh produce. The forthcoming SPS framework explicitly covers:

• Food hygiene rules
• Additives and processing aids
• Allergen management
• Nutrition and health claims
• Food contact materials, and
• Traceability and recall systems.

For bakeries exporting biscuits, breads, cakes and frozen dough into the EU, compliance depends heavily on product composition. Items containing dairy, egg or other animal‑derived ingredients may also be classed as composite products, triggering additional certification and controls under current rules and potentially tighter scrutiny during the SPS realignment phase.

Are UK bakeries prepared?

Broadly speaking, readiness is uneven across the sector. Large, export‑focused bakeries particularly those with multinational customers or EU‑based manufacturing sites are generally better prepared. Many already operate to EU‑aligned standards, maintain bilingual labelling, and employ specialist regulatory teams.

However, according to reports small and medium‑sized bakeries have struggled. Industry bodies confirm that numerous UK food businesses exited EU markets after Brexit due to the administrative burden, skills shortages, and cost of compliance, with food and drink exports to the EU falling sharply compared to pre‑2020 levels. Where producers are closely keeping an eye on costs it is anticipated that this level may fall even further as the cost of compliance rises.

What does ‘good’ SPS preparation look like?

Successful SPS preparation involves far more than waiting for final legislation. Best‑prepared bakeries are already acting in five key areas:

1. Product and ingredient risk mapping

Leading exporters have undertaken SKU‑by‑SKU reviews to identify any animal‑derived ingredients, any additive or enzyme usage differences between UK and EU law, and shelf‑life and storage implications affecting risk categorisation. This groundwork allows businesses to anticipate where Export Health Certificates or additional declarations may still apply – even under a new agreement.

2. EU‑aligned food safety systems

Food hygiene rules are expected to sit firmly within SPS alignment scope. Bakeries that maintain robust HACCP, hygiene auditing, and validation records are likely to face fewer operational changes than those relying on minimal UK‑only compliance frameworks.

3. Labelling and claims discipline

Nutrition and health claims that are considered acceptable in the UK can still trigger non‑compliance in the EU. Businesses that retained EU‑compliant artwork, allergen statements, and claims substantiation may be able to avoid costly relabelling and rejected consignments.

4. Supply chain traceability

EU importers increasingly expect near‑instant access to ingredient provenance data. Bakeries with digital traceability systems and clear supplier assurance processes are significantly better placed to pass both documentary and physical checks.

5. Watching EU law, not just UK guidance

Because the new SPS framework is expected to involve ‘dynamic alignment’, UK bakeries will need to track changes in EU food law on an ongoing basis.

As examples, frozen bakery suppliers that retained EU‑grade hygiene controls and temperature‑monitoring systems were able to resume exports more quickly than competitors. Branded biscuit manufacturers that maintained EU‑compliant labelling post‑Brexit avoided reformulation and packaging costs when re‑entering EU markets. Retail‑linked bakeries supplying EU supermarket own‑label products benefitted from retailer‑led compliance auditing, effectively outsourcing regulatory discipline. These businesses are typically viewing SPS compliance as a commercial enabler, rather than merely a regulatory burden.

What are the pitfalls to avoid?

Common mistakes across the sector include assuming ambient bakery goods are not within the scope of the SPS, and underestimating composite product rules which can be complex. In addition, if an operator has exited the EU market it is likely that their compliance knowledge will lapse and it would then be more difficult to attain compliance. Sometimes responsibility for export compliance requirements falls between teams operationally with labelling and product claims being seen as a marketing issue. Consignments can be delayed or refused due to missing documentation, mis-classified products or outdated ingredient specifications often at significant cost to SMEs.

With full implementation still expected no earlier than 2027, bakeries have a narrow but valuable window to prepare. Practical steps include conducting a regulatory gap analysis against EU food law, re‑auditing suppliers and checking ingredient specifications. Particular attention around labelling and product claims substantiation is going to be time well spent and it is also worth investing in staff training and engaging early with customs agents and EU import partners.

Defra has stressed that the rewards of preparation are significant: smoother trade, reduced border friction, and renewed export growth opportunities. Those that treat SPS alignment as a strategic evolution rather than a regulatory shock are already positioning themselves to rebuild EU trade on more stable footing.

Ultimately, compliance will not be optional, but competitive advantage may well be. The bakeries that invest now in governance, systems and regulatory literacy are likely to be the first to benefit when the doors to EU markets finally reopen more fully.