Friday, March 29, 2024

British farmers want lamb deal with kiwis

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The idea of Britain and New Zealand working together to promote a complementary fresh lamb offer, with seasonality being used to stimulate demand, was discussed during a recent meeting between English and Welsh farming leaders and delegates from the kiwi meat industry.
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A similar plea for closer co-operation between NZ and United Kingdom lamb producers, including on pricing levels, was also voiced to Farmers Weekly by north of England sheep sector leader, Richard Findlay.

The proposed complementary lamb offer emerged during talks between English National Farmers Union president Meurig Raymond; NFU Cymru president Stephen James and NFU livestock board chairman Charles Sercombe on the UK side with Meat Industry Association chairman John Loughlin and High Commissioner Sir Lockwood Smith.

With both sides expressing concerns over lamb sector profitability, let alone what might happen to values in the future, there was general agreement that lamb was an under-marketed category for which new marketing initiatives, such as a complementary fresh lamb offer backed by both countries, were desperately needed.

The NZ team also told the meeting, however, they were encouraged the UK government had said that, as a result of Brexit, no one trading partner would either be worse off or, conversely, gain from the UK’s departure from the European Union.

Further encouragement for NZ hopes of a future free-trade deal with the UK were also strengthened when UK Farm Minister George Eustice told a Brexit meeting for farmers in Yorkshire not to be afraid of such a prospect.

“I think sometimes farmers are in danger of talking themselves down and being fearful about not being able to compete,” he told the meeting in Skipton, adding that after 40 years of EU membership it would be a mistake not to now take the opportunity to do things differently.

Findlay, who farmed 900 ewes at Quarry Farm, 32km from Whitby and was the NFU’s regional livestock board chairman, agreed up to a point.

“We’re already only getting about half the level of subsidy support which is given to farmers in central France,” he said, adding the UK government had effectively been weaning British farmers off subsidies for several years.

“The choice now for government is to continue with some form of support for farmers, allow the price of lamb to increase so we can get more from the marketplace or accept increased levels of imports.

“In the face of these three quite stark choices, however, I think UK farmers are still pretty optimistic about what might be possible once we’re out of the EU.

“There are opportunities for us all, including in relation to a free-trade agreement with NZ, although there are concerns in that as well.

“I look at sheep farm incomes in NZ, for example, and they’re very low. We think our returns are low but your incomes are lower.

“There’s a feeling among farmers here, in fact, if that NZ exporters could hold their nerve a bit and charge more for what’s being sent into the UK, we would all be better off.

“I’m not sure, of course, we would be able to fix a trade deal where we all benefitted in that way as we’d probably be told such action would be viewed as a cartel. That’s what is needed, though, if it can be delivered within the rules.

“In addition, if we could negotiate to have no lamb coming in from NZ during our peak season, with imports being targeted more into our out-of-season period; that would be good.

“There are definitely opportunities available if we could work together, without harming each other’s industries,” Findlay said.

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