Irish beef producers fear effect of no-deal Brexit

Concerns over Irish border controls are proving to be one of the main stumbling blocks to the UK leaving the EU with politicians at complete opposite ends of the spectrum in providing a solution.

The border impasse has still to be resolved but already there have been major impacts on the Irish livestock trade as the livestock industry positions itself for life post Brexit.

Earlier this week, Irish Farmers Association (IFA) president Joe Healy called on Irish agriculture minister Michael Creed to introduce an aid package for beef farmers to compensate for Brexit losses that have already been incurred.

“While all the talk on Brexit is around what may happen and contingency planning, incomes for beef farmers have already taken a major financial hit and they need an aid package,” he said.

The downward trend in cattle prices started last autumn and farmers have, according to the IFA, already taken a financial battering, mainly because of Brexit.

Healy said that it was time for the government to take action to support these farmers who had outstanding bills with merchants and other service providers.

“They need help and they need it now,” he said.

The IFA also hit out at their meat processing factories, with Healy claiming there appeared to be a concerted effort by the processors to drive down the price of cattle.

“This is naked opportunism by the factories on the back of beef farmers”. He claimed the fall in value compared with last year was up to €100 (£86) per head and double that on younger animals, adding that producers only broke even on last year’s values.

On proposed tariffs on the Ireland-northern Ireland border in the event of a no deal Brexit, Healy was scathing claiming it could be a disastrous scenario for Irish farmers.

“Our most exposed sectors, particularly beef, simply will not survive the kind of tariffs being talked about. This would have a devastating effect in the rural economy,” he said.

Ireland currently exports more than 50 per cent of the beef it produces to the UK. “If this is subject to tariffs, it will be a ‘direct hit’ of almost €800 million on the sector,” he claimed.

He also pointed out if the UK decided to have zero tariffs on food imports this would also be hugely problematic as, under World Trade Organisation rules, zero tariffs would be applied to all countries.

“This could expose Irish food to competition from low cost, low standard imports from non-eu countries.”

“Overall any ‘no deal’ UK regime will be very damaging for Irish farmers.”