Ministers came up with the plan after Theresa May allowed planning for a total break to begin – and as the resignation of Boris Johnson and David Davis threw more doubt on her ability to pull off a deal.
The vast majority of processed food and drinks in Britain are imported, with 97 per cent arriving from the European Union.
It is reportedly focused on plans for the border in the case of a swift change.
Other departments have also been handed budgets to get plans in place.
NHS England boss Simon Stevens revealed earlier this month that “extensive” plans have been put in place to make sure the health service keeps running in a no-deal scenario, while justice minister Lucy Frazer said in Parliament that preparations were underway.
“Like all competent government departments, we are also working to ensure that if there is no deal we are ready for it,” she said. “We have £17.3 million extra from the Treasury to look into and ensure that we have the right Brexit scenario.”