GLOBAL DAIRY UNITED KINGDOM
Clues to UK dairy future slowly emerge Widespread disruption is expected post-Brexit. Tim Price outlines what the future may hold for trade.
L
ast year, maverick MP Boris Johnson won a snap UK election, promising ‘an oven-ready’ EU free trade deal. We’re still waiting for service as the clock ticks down to January 1 when we leave the cosy protection of Europe and attempt to stand on our two feet. As Dairy Exporter went to press, talks to agree a post-Brexit deal with the EU were deadlocked. Without this, World Trade Organisation rules come into play, with disruption to supply chains and sharp price increases for dairy products expected as tariffs are applied. While British, French and German cooks argue about the main course, the signing of the UK Agriculture Bill means we have, finally, been served some tasty hors d’oeuvres after four years of chaos. Casting aside the generous support and labyrinthine rules of the EU, the UK is moving towards payments for environmental improvements, under a still-vague system known as ELMS – Environmental Land Management Schemes. Promoted as ‘public money for public goods’, it focuses on environmental protection, sustainability, low emissions, and high animal welfare standards. Food is also briefly mentioned in the new legislation, with a commitment to its high-quality production squeezed in at the insistence of the farming unions. Unsurprisingly, the system announced in the Agriculture Bill will bring a whole new raft of bureaucracy. While the new framework commits UK farmers to high environmental and welfare standards, desperate attempts to woo Trump into a favourable US/UK trade deal leaves a glaring gap in the rules, allowing 20
Investing in UK dairy: Robert Morris-Eyton with wife Rowena and son Patrick.
the importation of food produced under lower standards. Massive protests against a glut of US chlorine-washed chicken, and antibioticheavy beef in British supermarkets have failed to overturn this. Ironically, US President-Elect Biden shows little interest in a UK/US trade deal. Ongoing machinations for an EU deal dominate headlines, but behind the scenes, new agreements are quietly being put in place with other countries. The stakes are high for existing and potential exporters: in the year to September, the
UK imported food and drink to the tune of NZ$91billion. Negotiations with New Zealand are claimed to be progressing well, with more trade deal talks due in January 2021. Broad agreement has been reached on initial market access offers, rules of origin and simplified customs rules.
INVESTING IN DAIRY
After four years second-guessing the future of the dairy sector following the BREXIT vote, a number of bold farmers are putting serious money into new dairy units.
Dairy Exporter | www.nzfarmlife.co.nz | January 2021
