Only one third of existing UK pallets will be compliant with EU rules in a no-deal scenario according to packing company Pallite.
The problem is ISPM-15 requirements which require heat treating or fumigation of wooden packaging to prevent disease transfer. The EU applies lower standards to members, allowing untreated pallets to move across borders but this benefit would be lost in a no deal scenario.
In order to meet the requirements, the firm is to ramp up production of its pallet products, which are made from a paper-based material that is exempt from the regulations. The company reports that so far, £1.1m in funding has been raised through the crowd-funding site CrowdCube.
Iain Hulmes, CEO of Pallite, said:
“We are delighted that our fundraising has been such a success at an important time for the nation. While we don’t endorse any political position, we recognise the reality that, if there is no deal between the UK and EU, there could be a pallets crisis and [we] are in a position to help”.