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FARMERS WEEKLY – farmersweekly.co.nz – September 5, 2022

World Scots cast envious eye over NZ deal

TWO Scottish cabinet ministers have hit out at the UK Government’s trade deal with New Zealand, noting the European Union has secured more favourable terms for its farmers in its deal.

Rural Affairs Secretary Mairi Gougeon and Trade Minister Ivan McKee pointed to a “stark contrast” between the two agreements, with the EU securing the same market access for its exporters but seemingly better safeguards for domestic producers.

The pair went on to warn that the UK deal has left Scottish farmers on an unlevel playing field.

In a joint letter to UK Minister of State for Trade Policy Penny Mordaunt, Gougeon and McKee said: “The UK’s deal emphasises the futility and economic selfharm of the UK Government leaving the EU, making its own trade agreements and then ending up with a worse deal than if we had stayed in the EU.”

In the first year of its Free Trade Agreement (FTA), the UK will allow 12,000 tonnes of NZ beef into the UK, while the EU has agreed to only 3,333t across all 27 EU countries.

By year 15, the UK Government will allow 60,000t of NZ beef into

BAD DEAL: In its deal with NZ, the EU secured better safeguards for its farmers than the UK did, says Scottish Rural Affairs Secretary Mairi Gougeon.

the UK and after that an unlimited quantity, while the EU will cap imports at 10,000t and still apply a 7.5% tariff.

Similarly for sheepmeat, the UK FTA allows 50,000t into the country by year 15, with no limit on imports after that.

The EU-New Zealand FTA, however, allows a maximum of 38,000t.

In both cases, this is in addition to the current World Trade Organisation country-specific quota for sheepmeat imports from NZ, which already provides significant market access for NZ producers.

The Scottish ministers said: “In return for this limited access to the EU market, New Zealand is offering the EU full tariff liberalisation on EU exports to New Zealand from day one, which is the same outcome as the UK Government secured for UK exports.

“So it seems clear that the EU has secured the same market access for its exporters at a much lower cost to its domestic producers.” Gougeon and McKee have called on the UK Government to set out what mitigations and compensation it will put in place for economic sectors and communities that suffer as a result of trade deals.

Minister for Trade Ranil Jayawardena said: “Our deal with New Zealand will increase bilateral trade by almost 60% and open even greater opportunities, including paving the way to accession to the Trans-Pacific Partnership – a trading area worth £9 trillion [about $17 trillion].

“The British Government will continue to champion farmers and food producers across the country.”

The EU has secured the same NZ market access for its exporters at a much lower cost to its domestic producers.

Scottish ministers’ letter

Farmers Guardian

Energy crisis could hit UK food output, ag leaders say

SOARING energy costs are forcing some UK farmers to consider cutting production, posing a food security risk.

British agricultural leaders are pleading with the UK Government for some kind of support to mitigate the impact of the stratospheric rises, pointing out commercial customers do not benefit from a residential price cap.

Nottinghamshire farmer Oliver Cunningham, who grows arable and root crops, told Conservative leadership hopeful Rishi Sunak that his electricity bills are expected to increase by 500%.

Speaking at the National Farmers Union hustings held with Sunak in Stoneleigh last week, Cunningham said he would have to leave 50% of his land barren in the coming season as the cost of irrigation is increasing.

Meanwhile in Scotland, Graham Bruce, managing director of Laurencekirk-based Ringlink, is currently negotiating electricity supply renewals for 400 of the cooperative’s members.

Bruce said: “One of our pig farmers said the increase would increase his cost of electricity per pig reared from £3 to £12.50 [about $5.70 to $23.70]. That is simply unsustainable and the same goes for potato farmers with cold stores.

“I am advising members only to renew for a year, because something will have to be done to bring prices back. I would like to hear more from Scottish MPs on this crisis.”

National Farmers Union deputy president Tom Bradshaw said the industry is facing a “perilous” winter period, with energy price hikes coming on top of rising fuel, fertiliser, feed and finance costs.

“Given the huge importance of energy to the entire food industry, it is essential there is crossgovernment collaboration on how to address this issue.”

Farmers Union of Wales president Glyn Roberts also warned “crippling” increases in costs would “clearly have an impact on food production”.

“Countries across the European Union have announced support packages worth hundreds of billions to support businesses suffering as a result of massive price rises and to bolster and boost food production,” he said.

“By comparison, the support provided in the UK has been negligible, resulting in a reduction in our capacity to produce food as farmers have sought to tighten their belts.”

Responding to Cunningham’s question, Sunak said if he won the election he would look to break the link between the inflated gas price and the rest of the wholesale energy market – a step several European countries have already taken.

A UK Government spokesperson said action is being taken to help farmers by bringing forward 50% of the Basic Payment Scheme payment, as well as reducing employer National Insurance, cutting fuel duty and introducing 50% business rates relief.

Farmers Guardian

The support provided in the UK has been negligible, resulting in a reduction in our capacity to produce food.

Glyn Roberts Farmers Union of Wales

Sheep gas diet hard to swallow

FARMERS must not be forced to feed sheep a methane-suppressing diet that disrupts natural and well-established grazing systems, National Sheep Association chief executive Phil Stocker has warned.

His comment came in response to a new UK-wide government consultation on methanesuppressing animal feed products, including methanogenesis inhibitors, seaweeds, essential oils, organic acids, probiotics and antimicrobials.

Westminster, together with the devolved administrations in Scotland, Wales and Northern Ireland, is seeking views on how farmers can increase adoption of these technologies to support “sustainable protein production”.

Farming Minister Victoria Prentis said the call for evidence will give the government a better understanding of how they can help drive the development of the technologies forward.

But Stocker noted it would be difficult to get the products into sheep, given they graze grass for most of the year.

“There needs to be proper financial incentives for farmers to use these products, since there is no market benefit currently,” he said.

“I was also a little bit alarmed by the mention of antimicrobials, as every part of the industry is being driven to use them in a responsible way.

“To routinely use them in a feed additive is the wrong direction.”

However, Neil Shand, chief executive of the National Beef Association, said it is positive the government is looking at means to ensure livestock numbers are maintained with lower environmental impacts, saying it highlights the sector’s importance.

“If you take livestock out of UK agriculture, the whole wheel falls off, so the consultation is a massive positive,” he said.

“We have to look at every tool in the toolbox to reduce methane output.”

SAY AAH: Getting supplements into sheep will be hard, given that they graze for most of the year, said Phil Stocker, CEO of the UK’s National Sheep Association.