The previous government's ‘not for EU’ labelling scheme for meat and dairy has been postponed indefinitely following concerns from the industry.
The new Labour government said the plans have been paused and are under review after warnings that it could cause 'chaos' for producers and suppliers.
The Conservatives had committed to introduce the labelling across the whole of the UK, which would have been displayed on a range of agri-food products.
But Dairy UK, the trade body for the dairy sector, warned that the financial cost per business of changing labelling alone would've been up to £500,000, and up to £2m per business when factoring in all other costs.
And the NFU had raised concerns that the labels would have lead to consumer confusion and misconceptions about the quality of food that UK farmers produce.
There would also have been additional costs for domestic suppliers of food and products for sale across Britain, the union warned earlier this year.
The labels were brought in as part of concessions secured with the EU under the Windsor Framework Agreement, which sets out post-Brexit trade arrangements for Northern Ireland.
The labels were intended to guarantee that food sold in the province that had not undergone EU border checks did not pass into the Republic of Ireland, which is part of the EU’s single market.
Meat and dairy products being sent from Britain to Northern Ireland already have to carry the stickers, but it was to be expanded from 1 October.
Judith Bryans, chief executive of Dairy UK, said the association and the wider dairy sector welcomed the new announcement.
“Had this initiative gone ahead with new labels being required on pack by 1 October, it would have resulted in chaos for dairy and added significant unnecessary cost and a huge admin burden to businesses.
“We’re very pleased that the government has listened to and reflected on the concerns we raised on behalf of our members.”
A spokesman for Defra said: “Ministers are carefully considering the evidence provided in the recent ‘not for EU’ labelling consultation.
“We are committed to taking all necessary steps to protect the UK internal market and are continuing to engage with businesses to ensure the smooth flow of goods to Northern Ireland.”
