UK ‘does not share Europe’s confidence in the future’

BREXIT: Uncertainty casting a long shadow over the industry in Britain

The EU farm lobby organisation, COPA, says confidence is growing among farmers in almost all EU member states.

This contrasts to last year, when confidence was low because of a sustained period of poor returns for key commodities.

The survey is carried out twice a year in 10 countries. All, apart from the UK, reported an increase in confidence about the future, as the industry moves away from low prices. It says uncertainty surrounding Brexit, support arrangements and the market are undermining confidence in the UK.

A report from the UK food industry has underlined its vulnerability to losing EU nationals from its workforce, because of Brexit uncertainty.

The Food and Drink Federation report says 47% of businesses are concerned their foreign nationals are considering leaving.

Over a third of companies said they would not be able to remain viable if they lost access to the EU as a source of employees. A number of business said they would consider relocating to access overseas staff.

Staff are leaving not only because of the uncertainty around Brexit.

With the pound plunging in value the return for working in the UK is now significantly less attractive.

The EU trade commissioner, Cecilia Malmström, has said she expects a trade deal with the Mercosur countries of South America to be concluded by the end of this year. This is an ambitious target, given the negotiations have dragged on for many years. But with a series of trade deals concluded, including with Japan, the Commission has a new enthusiasm to make progress.

Beef is one of the sensitive products in the negotiations, because of the potential impact of reducing tariffs.

Ethanol is also in this group, and the EU is expected to table its offer on these sensitive products next month.

The Mercosur deal is controversial because of its potential impact on beef prices in Europe and because it glosses over the quality problems of the Brazilian beef industry.

Members of the European Parliament’s agriculture committee have said the investigation of the recent egg scandal, and the use of an illegal insecticide, needs to look at how the Rapid Alert system to warn of food scares is performing.

While this has delivered the necessary information, MEPs on the committee say a major issue is whether member states are withholding information to avoid the embarrassment of admitting they have a problem. They say that when this happens it limits the effectiveness of the Rapid system and creates risks for all member states.

They say the success or otherwise of the alert system depends on rules being fully met.

Picture: Kris Miller. Many UK businesses are concerned about future access to migrant labour.