As no-deal Brexit looms, sheep sector’s fears grow
With no sign of a trade deal with the EU yet on the cards, a contingency plan to compensate sheep farmers whose trade would be devastated by the loss of access to the European market is back on the drawing board.
And farming organisations were this week contacted by Scotland’s rural economy secretary, Fergus Ewing, to pull together a strategy to help ensure the sector’s survival in the face of a no-deal market crash.
“Tariffs of up to 50 per cent could be imposed on exports, which would be devastating for Scotland’s sheep farming sector,” said Ewing, who added that it had been widely accepted that the sheep industry was amongst the most exposed to the fallout of a no-deal Brexit.
He said he had pressed the need for work to commence on the sheep compensation scheme at every meeting with the UK government – and said that Michael Gove, when farming minister, had promised that the UK Ggvernment would pay compensation for sheep farmers, even if there was reluctance on the part of the Treasury.
Ewing said that after pressurising the current UK Secretary of State for the Environment, Food and Rural Affairs, George Eustice, on the previous promises, he had agreed that Defra and the devolved administrations should once more draw up plans for a compensation scheme.
Previously two schemes had been considered – based on breeding ewe numbrs and on slaughter – with the time of year making a difference as to which scheme was most appropriate for the Scottish flock.
Responding to the call, NFU Scotland president Andrew Mccornick said that despite the Brexit transition period ending in just over four months, all sectors of Scottish agriculture remained in the dark about crucial future trading arrangements with the EU:
“There is absolutely no doubt that quota- and tariff-free trade with the rest of Europe remains the best option for Scotland’s iconic food and drink sector. We also need a deal that minimises the checks required on goods going into the EU,” said Mccornick.
“However, if that is not delivered by the UK government, then emergency support for any sector severely affected would be required. We will be proactively feeding in our views on any contingency measures we think may be needed.”
Pointing out that the UK was the largest exporter of sheepmeat in the northern hemisphere, he said the country’s reliance on European markets for sales of lamb meant sheep producers were particularly exposed in the eventuality of a no-deal Brexit.
“Contingency planning for the worst-case Brexit scenario saw our livestock committee spend significant time looking at what emergency support for the Scottish sheep sector might be appropriate in the event of the UK leaving the EU without a deal, to leave Scottish farmers and crofters facing a cliff-edge on sheepmeat exports,” he said.
But while he said the union welcomed confirmation that UK discussions on a sheepmeat compensatory scheme were commencing, Mccornick said that the union still held that contingency planning for a no-deal Brexit should see consideration of emergency measures for any sector of Scottish agriculture affected by what he termed would be “such a poor outcome from negotiations”.