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Farming industry insists a deal is vital
BORIS Johnson’s government must “pull out all the stops” to agree a trade deal with the European Union after comments dismissing the impact of a no-deal outcome angered the industry.
Farming unions have repeatedly emphasised the importance of an EU trade deal, with warnings of the “catastrophic impact” ending the transition period without one would have.
Industry leaders were concerned by suggestions from Defra secretary George Eustice that sectors which were net importers would not be affected as the UK would put retaliatory tariffs on imports. He also said mixed sheep and beef farmers could diversify into beef production to bolster incomes.
Farmers’ Union of Wales president Glyn Roberts says the impact of leaving without a deal would hit home very quickly, with the sheep industry likely to feel the impact most acutely.
“It would also cause untold disruption to food and other supply chains and complete anarchy at our ports,” he said.
Roberts says such a failure would also have devastating BEEF imports have risen sharply as restrictions imposed during the first UK covid-19 lockdown were relaxed.
Figures released by the AHDB show imports reached 26,200 tonnes in September – up 5% on the August total and 12% higher than the same month in 2019.
Almost the whole rise of 2900t was due to more beef coming in from Ireland, which was up by 2400t, according to AHDB analyst Hannah Clarke.
However, shipments from Brazil were also 800t higher and imports from the Netherlands rose by 200t.
Despite the growth in September, total imports between January and September were down 7% on the year at 227,400t. This was due to the effects of the first coronavirus lockdown, which saw all months up to August record beef imports below 2019 levels.
The late summer period saw foodservice markets regain some strength, although EU cattle remained competitively priced, Clarke says.
In contrast to the import situation, UK exports stayed flat in September compared with August at 13,700t and were down by 5500t year-on-year.
This was primarily due to falls in shipments to the Netherlands, down 2,300t, and exports to Ireland, which fell by 1100t against the September 2019 figure.
Clarke says the September impacts for EU businesses and it was therefore in both the EU and UK’s interest to reach a deal. He also rebuffed the Prime Minister’s claims the UK “would prosper” without an EU trade deal, saying “You cannot cut yourself off from the world’s biggest economy and trading bloc in the height of a global pandemic, the worst recession for a century and having borrowed a quarter of a trillion to cope and think it is going to go well.”
NFU Scotland says farmers and crofters had been angered by Eustice’s comments, stating they had repeatedly reminded ministers there would be a significant impact to farm income from tariffs on exports.
It highlighted AHDB analysis showing how no-deal would see third-country tariffs make UK exports to Europe “uneconomical” and higher supplies on the domestic market would put downward pressure on prices. The levy board also stated with 91% of dairy exports going to the EU, tariffs would “significantly impact the UK dairy industry.”
NFUS president Andrew McCornick says failure to
Despite the recognise the huge impact imposition of tariffs under a no-deal situation would have on many agricultural sectors has caused significant anger and frustration in what potentially is a landmark week for negotiations.
“The minister’s remarks ignored the commonly held understanding of the impact a no-deal outcome would have on the thousands of farming and food businesses across the United Kingdom,” he said.
He added suggesting sheep producers could simply “diversify into beef” showed a lack of understanding of sheep production in much of Scotland.
“It should have been obvious to the minister that sheep farmers, who will be hammered by a no-deal outcome, cannot simply avoid this by diversifying into another sector of production by January 1,” he said.
NFU Cymru president John Davies added only a year ago the industry was told the odds of a nodeal Brexit were “a million-to-one against” and there was an “ovenready deal.”
He says Eustice’s comments would be of major concern to period of low farmgate prices
Year-to-date exports were valued at £382 million (about NZ$731m) down 11%, with average unit prices 5% lower than in 2019.
The majority of the annual decline in exports was due to less product being sent to the Netherlands, with lower volumes also sent to France, Italy, Spain and others.
Exports into the EU as a whole between Jan-Sep were down 13% year-on-year, while shipments to non-EU destinations were up by 14%.
CONCERNED: UK farming leaders expressed concerns after Defra secretary George Eustice suggested that mixed sheep and beef farmers could diversify into beef production to bolster incomes.
Welsh sheep farmers who were “some of the most efficient and innovative in the world.”
“The reality is changing production methods involves long-term production cycles and for many the significant investment required makes it an unviable option,” Davies said.
He added the total focus of negotiators needed to be on securing a comprehensive deal.
“Being priced out of our nearest and most important export markets for even a short amount of time would have severe consequences for the food and farming sector in Wales,” he said.
Glyn Roberts
Beef import figures show sharp rise
UK Farmers Guardian
SOURCE: According to AHDB analyst Hannah Clarke the import spike is a result of more beef entering the UK from Ireland.
Shipments to Canada were up by 141% and those to Japan were even higher at 179%, with other countries such as Ghana and the US also taking more British product.
Meanwhile, the United States Department of Agriculture (USDA) has forecast global beef production in 2021 could rise by 2% to 61.5m tonnes.
Clarke says the growth in production in 2021 is expected to come as global economies strengthen, and supply chains recover from disruption caused by the coronavirus pandemic.
The USDA also projected that the recovery could drive up global beef exports by 3%.
It is expected that Asian demand will support shipments from the US and Brazil during the year.
Chinese beef imports are forecast to rise by another 4% in 2021, having increased by a forecast 21% year on year in 2020.
However, Chinese pork production could rebound in 2021, as producers continue to recover from African swine fever, which may ease demand.
