MEPs feeling sheepish with production

The European parliament has thrown its weight behind calls for increased aid for sheep production.

By a big majority, it backed a 2016 report on the sector, which warned of the financial and market problems farmers face.

The MEPs want a bigger budget for the sector and to see the funds used for enhanced direct payments and research into how to make the industry more profitable.

However, their key demands relate to the market.

They want to see additional funding for promotion, and they would also like to have special protection in trade negotiations.

New Zealand has already hinted that enhanced access to the UK for lamb, beyond the EU ceiling, will be part of its post-Brexit trade discussions.

The parliament also wants a market observatory, similar to other sectors, for monitoring and reporting global and European lamb prices.

Reaching some form of trade deal with the EU-27 after Brexit is proving a major challenge for both Brussels and London but Iceland has proved how easy this can be.

It has agreed a deal with the EU that will give it access for some of the specialist products it exports, including a yoghurt-type drink.

In return, it will provide tariff-free access to Iceland for 95% of EU food products.

Quotas, which will increase annually, apply to trade in both directions.

This is similar to a trade deal recently negotiated by the EU with Mexico.

It confirms that after Brexit the EU-27 will be a major competitor for markets and trade deals.

The European Commission says that every billion euro in food exports supports 2,000 jobs, often in rural areas where employment opportunities are limited.

The European Commission has published its post-2020 budget proposals and the CAP is facing cuts.

It wants an overall cut of 5%, and a 3.9% cut in direct payments.

The budget cut is being driven by Brexit, and the loss of the UK’s e27.7 billion budget payment into the EU.

This would leave the CAP with a budget of around £286 billion for direct payments and £79 billion for rural development.

It is based on member states increasing their contribution to the EU budget to 1.114% of gross national income.

New Zealand has hinted that enhanced access to the UK for lamb will be part of its post-Brexit talks.