One of Scotland’s biggest dairy companies has urged the Scottish secretary to push for “nightmare” Brexit labelling to be dropped from produce.

Dr Robert Graham, the chairman of Graham’s Family Dairy, said a requirement to print “not for EU” on all products not being shipped to the continent was an “absolute nightmare” that was driving up costs.

The labelling was brought in as part of the deal to minimise checks of goods crossing between Britain and Northern Ireland, which was key to securing a deal to allow powersharing to resume in the province.

The rules are due to come into force this October and Scotland Food and Drink, the industry body, has warned that businesses would face “substantial challenges” that could cost millions of pounds in upfront and ongoing costs.

In a letter to Alister Jack, the secretary of state for Scotland, Graham said that because of the firm’s exports to the Republic of Ireland, it would have to create different packaging, which would lead to higher running costs and more complexity on site.

“It would be hard for me to explain in an email how unhappy and how strongly I feel about this,” he wrote. “It is using a sledgehammer to crack a nut.”

Earlier this month Simon Roberts, chief executive of Sainsbury’s, warned that new government policies designed to make farming more sustainable could harm Britain’s food production and lead to more imported food.

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