A detailed analysis of the potential impact of Brexit on Welsh farming said the industry needs to prepare for both risks and opportunities following the United Kingdom’s departure from the European Union.
“Even though Wales exports proportionately less to the rest of the EU than other parts of the UK the future UK/EU trading relationship will still have a critical, direct and indirect bearing on the industry in Wales,” the report, produced jointly by the UK’s Agricultural and Horticultural Development Board and Hybu Cig Cymru – Meat Promotion Wales (HCC), said.
“What‘s more, the UK government’s future trade policy might exploit new opportunities for Welsh food and drink exports whilst at the same time potentially exposing the industry to greater competition from lower-cost imports.”
Given that HCC’s chairman Kevin Roberts said in May that future NZ lamb exports to Britain should be pegged at 65,000 tonnes a year, the new report can only heighten Welsh producers’ fears over future UK/EU/NZ trade agreements.
“Wales is a net exporter of lamb with 30% of UK sheep but only 5% of the UK population.
“Lamb is also an iconic Welsh product, has PGI (protected geographical indication) status and is a well-recognised brand on UK and global markets with up to 35% being exported outside the UK.”
It’s estimated that over 90% of the exports go into the EU single market, however, chiefly to France, Italy, Germany, Spain, the Netherlands, Belgium and Scandinavia.
Welsh lamb exports outside the EU are comparatively small in volume though they get a premium in non-EU markets such as Switzerland, Canada, United Arab Emirates and Hong Kong.
It’s against that trading background exposing Welsh lamb exports to tariffs will have a significant impact on many livestock products and will be likely to mean these exports will no longer be economically viable at current prices, it said.
The Farmers’ Union of Wales (FUW) also issued a discussion document highlighting market distortions and other negative impacts linked to Brexit.
“The upheaval caused by Brexit coupled with numerous political and practical concerns, agendas and obstacles has left us with a void,” FUW president Glyn Roberts said.
“This opens up the risk that gulfs between national (UK) policies will lead to major trade distortions and gross disadvantages for some farmers, regions and sectors, something brought into stark focus by the differences between the stated aspirations of the Welsh, Scottish and English administrations in terms of future agricultural policies.”
