GLOBAL DAIRY BRITAIN
Red, white and blue tape focused countryside policy which farmers fear will bring increased production costs ix months on from the UK’s and make their produce uncompetitive in departure from the cosy protection world markets. of the EU, British dairy farmers are However, government ministers claim facing the harsh reality of world the changes will lead to a ‘renewed’ market trading. agricultural sector producing healthy food For many farmers, the real driving for consumption at home and abroad, and force for leaving the EU was their hatred bring about environmental improvements of its myriad rules and the red tape that across the country. governed every aspect of farming. It’s so complicated that it includes a But even as British Prime scheme to pay older farmers who can’t Minister Boris Johnston lit cope with the change a NZ$200,000 a symbolic red tape bonfire lump sum to get out of farming. to celebrate freedom from Nearly four in 10 British farmers EU rules, a massive heap are over the age of 65, and the of new paperwork landed payments are an enticement for with a thump on farmers’ them to retire ‘gracefully’ to let doorsteps. Instead of just red in new blood with new ideas and Tim Price. tape, farmers are now faced a willingness to sacrifice yields for a with even more red, white and blue tape. better environment. The first shock was the announcement Brexit has also brought extra paperwork of rules for the new environmental-based for British dairy exporters to the EU. support system which replaces the EU’s Instead of seamless trade as when the UK farm support system. Under the outgoing was still a member of the EU bloc, there EU Basic Payment Scheme (BPS), farmers are now acres of paper forms to fill in got taxpayers’ money based on the for every single product that crosses the amount of land they farmed. That meant channel. Some dairy exporters have found the richer the farmers, the bigger the grant the process so slow and time consuming they got. that they have stopped exporting to EU The new Environmental Land countries. Management (ELM) system will pay Cheesemaker Simon Surrell was left with farmers for running managed schemes a NZ$500,000 Brexit hole in his business as which enhance the landscape. It includes a direct result of the UK’s departure from adapting farming techniques to help the EU. He lost 20% of his NZ$8m annual wildlife thrive, planting woodlands to sales overnight after discovering he needed help the country move towards its carbon to provide a NZ$360 health certificate on neutral goal and even flood prevention every retail order to consumers in the EU. schemes. He said he was prepared for barriers It’s part of a strongly environmentallyon EU sales to his wholesale business but
Words by: Tim Price
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there had been no warning there would be no exemption for direct consumer sales. “This came as an almighty shock, like a rear-end hit in a car accident because I wasn’t expecting it,” he said. New opportunities for New Zealand dairy exports to the UK are likely to emerge following the announcement of a trade deal between the UK and Australia. The 15-year transition to a zero-tariff, zeroquota trade deal is the first trade deal to be negotiated from scratch since the UK left the EU. It is seen as an important step towards the UK joining a wider Asia Pacific freetrade agreement. It’s expected that a similar deal allowing NZ dairy and meat exports to ramp up over coming years will be on the table soon. UK farmers are furious about the terms of the Australia trade deal. They fear there are no safeguards to stop British farmers being undercut by cheaper imports. Already facing spiralling production costs, and a new support system without a food production focus, UK dairy farmers feel badly let down by the Government. National Farmers Union president Minette Batters summed up their mood: “A tariff-free trade deal with Australia will jeopardise our own farming industry and will cause the demise of many, many farms throughout the UK. “It is wholly irresponsible for the Government to sign a trade deal with no tariffs or quotas on sensitive products and which therefore undermines our own domestic economy and businesses. “It is also incredibly concerning that the Government is in a ‘sprint’ to sign up to a trade deal with Australia that would have serious implications for British farming and would seemingly offer incredibly little benefit to the economy.” Away from the doom and gloom of politics, there’s good news that the British public has turned to dairy-based foods during the Covid-19 pandemic, significantly boosting sales of cheese, butter and cream. Overall spending on dairy rose by 7.8% during 2020 compared with a year earlier, according to Britain’s Agriculture and Horticulture Development Board.
Dairy Exporter | www.nzfarmlife.co.nz | July 2021
