| Sheep
NSA highlights threat potential Australian trade
deal would pose to UK sheep sector
The National Sheep Association (NSA) is encouraged to see activity already taking place to negotiate trade agreements
for when the UK leaves the European Union – but is seriously alarmed that Australia, a global sheep meat exporter, is
proposing a free trade deal.
ustralia currently has a quota to
export just under 20,000 tonnes
of sheep meat to the EU, which
it fulfils every year. With an
annual production of more than
700,000 tonnes, the country is
very keen to open up more trade opportunities
and is seizing on Brexit as an opportunity to
renegotiate its EU quota. They also have their
eye on a separate UK deal, seeing this country
as a prime destination for its lamb and mutton
products.
Phil Stocker, NSA Chief Executive, says:
“NSA understands Australia has been pushing
to increase its EU quota for many years now, so
there is no doubt it would send larger amounts
of sheep meat to Europe and the UK given the
opportunity. The UK sheep sector is already
suffering unacceptably high levels of imports of
New Zealand lamb, much of which is sourced
by retailers at times of the year when UK
product is in plentiful supply. We would be keen
to see an outcome of Brexit being tighter
controls on New Zealand lamb being allowed
into this country, and we certainly need to avoid
making the situation worse by allowing
Australian product to head our way too.”
Recent figures from Meat and Livestock
Australia show the country produced 516,366
tonnes of lamb and 196,040 tonnes of mutton
in 2015/16, exporting 56% of total lamb
production (worth $1.78 billion) and 91% of
mutton production ($700 million). The main
destinations were the Middle East, USA and
China.
Mr Stocker continues: “The UK is currently
an importer and exporter of lamb, which helps
balance supply and demand through the year
and exploits ideal sheep producing conditions
in the UK. However, NSA believes more should
be done to grow the UK domestic market and
increase self-sufficiency in lamb production and
A
24 | Farming Monthly | October 2016
consumption – especially as we do not know
what access we will have to EU mar kets in the
future. We currently export around 36% of UK
lamb, with France and the rest of the EU taking
the majority of this. A priority for our sector is
negotiating a trade deal with the EU post-Brexit.
“A free trade deal with Australia or New
Zealand may be beneficial for some UK
industries but could have a catastrophic effect
on UK sheep farmers and we cannot sit back
and be sacrificed for the benefit of others.
Given the fundamental role our sheep sector
has in maintaining the rural environment,
landscape and community in the UK, we
cannot afford to be overlooked in crucial trade
negotiations. We encourage the UK
Government to work hard on these deals, but
not to rush into agreements without
considering the wider consequences.”
NSA works to build trade relations ahead of
inevitable renegotiations
The National Sheep Association (NSA) is
taking an active role in furthering existing trade
relationships outside the European Union, as
plans continue for the UK to leave the common
market.
Supporting the AHDB Export team, NSA
played a major role at a reception in Berne on
Tuesday (13th September) for companies and
organisations involved in buying and supplying
lamb. Phil Stocker, NSA Chief Executive, spoke
at the event hosted by David Moran, the British
Ambassador to Switzerland and Lithuania. Mr
Stocker presented an overview of UK sheep
farming with a focus on its many sustainability
credentials.
Despite not being part of the EU, Switzerland
enjoys a trade relationship with member states
by way of bilateral agreements. The UK has not
needed to hold a Swiss export certificate for red
meat under its EU membership, although this
will clearly change post-Brexit.
Mr Stocker says: “Switzerland is one of the
most developed countries in the world, ranked
first in terms of nominal wealth per adult. This
affluence means product quality is key and
consumers have a good grasp on social and
environmental issues. Switzerland is a net
importer of lamb and its values and interests
align well with the UK’s high welfare standards
and sustainable approach to sheep farming.
“The trip recently provided an excellent
opportunity to engage with Swiss buyers and
suppliers of lamb in the presence of the British
Ambassador and representatives of the British
Department of International Trade. The guests
accounted for the vast majority of the Swiss
lamb trade and it was a unique opportunity to
talk about the many benefits of UK sheep
farming and how it is closely linked to
landscape, environment, wildlife and rural
communities.
“This type of work, ahead of major trade
renegotiations as a result of Brexit, is essential
and demonstrates the importance of activity by
our Government departments and levy bodies. I
am delighted NSA can support this work, which
in turn creates business opportunities for UK
processors and sheep farmers. Actions to
safeguard and further develop existing markets,
while encouraging new opportunities for
additional outlets, is more important now than
ever as we begin to consider our opportunities
as a sector outside the EU.”
Peter Hardwick, AHDB Head of Exports,
adds: “Exports, both inside the EU and across
the wider world, are vital to the stability and
viability of the sheep industry in this country,
with more than a third of production being
exported. The whole industry will work
alongside Government to safeguard our current
trade flows as well as exploiting further
opportunities for growth.”
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