Despite intensive lobbying from the farming and food sectors, the UK government has not changed the tariff schedule that will apply to imports of agri-food products in the event of a no-deal Brexit.
The original plan, announced in March, has been reviewed by the UK government and an updated version published on Tuesday contains only three changes, all for sectors outside of agri-food.
The UK tariff plan would effectively see import tariffs for most beef products coming into the UK drop to around half the level under the current EU tariff schedule, while a tariff-free quota of 230,000t is also available to all countries.
There is also a 245,000t tariff-free poultry quota on offer from the UK
Most UK tariffs on dairy products are set at zero, or else at levels significantly below EU tariffs. On pork, no-deal tariffs are between 10-20% of current levels, while for most poultry products they are slightly over half those applied by the EU. There is also a 245,000t tariff-free poultry quota on offer from the UK. Zero tariffs are proposed for grain and eggs.
In addition, there will be no tariffs paid on any products imported from the Republic of Ireland (ROI) into NI, but full EU tariffs (until a trade deal is done) in the opposite direction.
Reaction
The UK government’s unchanged tariff plan led to an angry reaction from farming unions.
“Farming families are once again left in fear of what could happen to their businesses if a no-deal Brexit occurs,” said Ulster Farmers’ Union (UFU) president Ivor Ferguson.
The no-deal tariff plan is supposed to be a temporary arrangement for 12 months
His organisation had lobbied government to introduce reciprocal tariffs on imports, meaning whatever tariffs the EU applies, the UK will apply in return.
The no-deal tariff plan is supposed to be a temporary arrangement for 12 months, and is to be reviewed before a more permanent plan is put in place.
Slaughter scheme
The UFU is also pressing the UK government to introduce a livestock slaughter scheme if the UK leaves the EU without a deal.
Its proposals are for government support to cover a cost of production price of £4.37p/kg for a U-3 steer and £4.90/kg for a R3 lamb. The UFU also wants the UK government to cover the cost of EU tariffs that will apply to exports of live sheep going to ROI for slaughter.
NI milk price down 10p/l in no deal
Milk prices in NI will fall by at least 10p/l as a result of tariffs on exports to the EU in a no-deal Brexit, according to analysis by the Dairy Council NI.
The body, which represents local processors including Dale Farm, Lakeland Dairies, Glanbia Cheese and Glanbia Ireland, calculates that tariffs on both raw milk and finished products moving from NI to the EU would total £320m.
“This tariff represents 25% of the value of our entire industry. In a sector where the margin is, at best, 3% or 4%, trade tariffs of that magnitude would wipe out the industry,” said Dairy Council NI chief executive Dr Mike Johnston
He also raised concerns about processing capacity in NI, suggesting that the shortfall could be as much as 600m litres, and maintained that there is no spare capacity to process surplus NI milk in Britain.
“NI farmers, processors and customers need a deal to mitigate trade tariffs and enable the continued movement and trade in raw milk and finished products,” Johnston said.
Glanbia Cheese letter to suppliers
Glanbia Cheese has written to suppliers at its facility in Wales, informing them that it is suspending its normal policy of indicating milk price a month in advance. By this stage of October, Glanbia Cheese producers in Britain would normally know the price to be paid in November. “The suspension will continue until we have confirmation of what the future Brexit trading relationship looks like,” states the letter.
Read more
Lobbying intensifies on no-deal tariffs
No-deal Brexit ‘worst possible outcome’ for NI dairying
Despite intensive lobbying from the farming and food sectors, the UK government has not changed the tariff schedule that will apply to imports of agri-food products in the event of a no-deal Brexit.
The original plan, announced in March, has been reviewed by the UK government and an updated version published on Tuesday contains only three changes, all for sectors outside of agri-food.
The UK tariff plan would effectively see import tariffs for most beef products coming into the UK drop to around half the level under the current EU tariff schedule, while a tariff-free quota of 230,000t is also available to all countries.
There is also a 245,000t tariff-free poultry quota on offer from the UK
Most UK tariffs on dairy products are set at zero, or else at levels significantly below EU tariffs. On pork, no-deal tariffs are between 10-20% of current levels, while for most poultry products they are slightly over half those applied by the EU. There is also a 245,000t tariff-free poultry quota on offer from the UK. Zero tariffs are proposed for grain and eggs.
In addition, there will be no tariffs paid on any products imported from the Republic of Ireland (ROI) into NI, but full EU tariffs (until a trade deal is done) in the opposite direction.
Reaction
The UK government’s unchanged tariff plan led to an angry reaction from farming unions.
“Farming families are once again left in fear of what could happen to their businesses if a no-deal Brexit occurs,” said Ulster Farmers’ Union (UFU) president Ivor Ferguson.
The no-deal tariff plan is supposed to be a temporary arrangement for 12 months
His organisation had lobbied government to introduce reciprocal tariffs on imports, meaning whatever tariffs the EU applies, the UK will apply in return.
The no-deal tariff plan is supposed to be a temporary arrangement for 12 months, and is to be reviewed before a more permanent plan is put in place.
Slaughter scheme
The UFU is also pressing the UK government to introduce a livestock slaughter scheme if the UK leaves the EU without a deal.
Its proposals are for government support to cover a cost of production price of £4.37p/kg for a U-3 steer and £4.90/kg for a R3 lamb. The UFU also wants the UK government to cover the cost of EU tariffs that will apply to exports of live sheep going to ROI for slaughter.
NI milk price down 10p/l in no deal
Milk prices in NI will fall by at least 10p/l as a result of tariffs on exports to the EU in a no-deal Brexit, according to analysis by the Dairy Council NI.
The body, which represents local processors including Dale Farm, Lakeland Dairies, Glanbia Cheese and Glanbia Ireland, calculates that tariffs on both raw milk and finished products moving from NI to the EU would total £320m.
“This tariff represents 25% of the value of our entire industry. In a sector where the margin is, at best, 3% or 4%, trade tariffs of that magnitude would wipe out the industry,” said Dairy Council NI chief executive Dr Mike Johnston
He also raised concerns about processing capacity in NI, suggesting that the shortfall could be as much as 600m litres, and maintained that there is no spare capacity to process surplus NI milk in Britain.
“NI farmers, processors and customers need a deal to mitigate trade tariffs and enable the continued movement and trade in raw milk and finished products,” Johnston said.
Glanbia Cheese letter to suppliers
Glanbia Cheese has written to suppliers at its facility in Wales, informing them that it is suspending its normal policy of indicating milk price a month in advance. By this stage of October, Glanbia Cheese producers in Britain would normally know the price to be paid in November. “The suspension will continue until we have confirmation of what the future Brexit trading relationship looks like,” states the letter.
Read more
Lobbying intensifies on no-deal tariffs
No-deal Brexit ‘worst possible outcome’ for NI dairying
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