No-deal losses ‘catastrophic’

Margins on beef and sheep farms could fall from a profit of £93 to a loss of £45 per hectare in the event of a no-deal Brexit, a new report published yesterday has revealed.

And the study conducted by farm consultants Andersons stated that, even if a deal is struck, it could take a decade to develop the technology required to see totally frictionless trade with the EU27.

Commissioned by the UK’S three meat levy bodies – including Quality Meat Scotland – the report which concluded that the value of domestically produced meat is expected to fall by 4 per cent for beef and 31 per cent for sheepmeat, gives a detailed account of the likely effects of different Brexit scenarios on UK sheep and cattle farmers.

Looking at the impact of tariff and non-tariff measures (NTMS) in both deal and no-deal scenarios on beef and sheepmeat trade, the report also produced a number of recommendations, including a call for the UK and EU to reach a robust mutual recognition agreement to reduce the need for official controls and minimise trade friction.

A fast-track or lightertouch system to help businesses overcome some customs measures is also called for as are the implementation of electronic certification procedures, better communication between regulatory authorities and training to better understand regulatory procedures, as well as making developing overseas markets a priority.

Director of economic services with QMS, Stuart Ashworth, said the report highlighted the threats of tariff barriers.