FG BUY&SELL        FARMERS WEATHER       ARABLE FARMING        DAIRY FARMER      FARMERS GUARDIAN        AGRIMONEY        OUR EVENTS        MEMBERSHIP BENEFITS        BLOGS        MORE FROM US

You are viewing 1 of your 2 free articles

You’ll need to join us by becoming a member to gain more access.
Already a Member?

Login Join us now

‘Hard Brexit’ could knock 17.5% off lamb prices

News

Farmgate prices could be hit if the UK fails to gain access to the single market

Twitter Facebook
Share This

‘Hard Brexit’ could knock 17.5% off lamb prices #sheep365

A ‘hard Brexit’ from the EU could reduce farmgate lamb prices by about 17.5 per cent, according to farm business consultants Andersons.

 

Speaking at a Brexit seminar, Michael Haverty, senior agricultural economist, said: "Where the UK produces a surplus of a commodity then the farmgate price is likely to fall if we do not have access to the single market."

 

"If we retain single market access, there will probably be little effect at all," he said.

 

Hardest hit

 

Currently the UK exports about 40 per cent of its lamb into the EU, which could mean the sector would be one of the hardest hit if European trade is affected by an exit.

 

He presented different options for the future of UK trade and farming, including a soft approach with single market access and a ‘hard brexit’ where the UK had to trade with the EU imposed tariffs on British goods.

 

There could also be issues with trade agreements potentially allowing imported products, such as Australian lamb and Latin American beef, access to the UK market.

 

But he also highlighted potential benefits for the sector.

 

"Lower prices could mean an opportunity to replace New Zealand lamb on the UK market.

 

"If prices were reduced, it would make lamb more appealing to consumers," he said.

 

"And more sheep farmers may also leave the industry, which would reduce supply and support the price."

 

Despite this, he estimated the farmgate price would have to fall by about 17.5 per cent to continue to sell lamb to France at the same price with tariffs.

 

Deal

 

Mr Haverty did predict a ’deal would be done’ between the EU and the UK but it would be a bespoke deal as using the same model as countries such as Norway or Switzerland would not fit the UK.

 

However, he warned there could be a transition period where the UK had similar access to Turkey, before the deal was fully agreed.

 

"But I would say it is more likely than not we would get good access to the single market."

 

Twitter Facebook
Rating (0 vote/s)
Post a Comment
To see comments and join in the conversation please log in.

More News

3,000gn hat trick for Dungannon Aberdeen-Angus

ABERDEEN-Angus bulls were in short supply at the native breeds sale held at Dungannon.

'These extreme views aren’t shared' - public rejects anti-farming vegan campaigns

Over half of the public were less likely to become vegan as a result of recent advertising in the national press.

Farmers unlikely to receive thousands owed after abattoir collapse

A Pembrokeshire farm was owed £107,445 following Emcol 2008’s collapse

Arla announces milk price drop - but maintains UK price

The Arla Foods amba price will drop but the UK price will be ’balanced’ by expected future benefits from currency.

Farmers hit by Labour Party plans for Land Value Tax

Farming groups have been spooked by revelations the Labour Party is considering plans to introduce a Land Value Tax which would hit farmers.
FG Insight and FGInsight.com are trademarks of Briefing Media Ltd.
Farmers Guardian and FarmersGuardian.com are trademarks of Farmers Guardian Ltd, a subsidiary of Briefing Media Ltd.
All material published on FGInsight.com and FarmersGuardian.com is copyrighted © 2016 by Briefing Media Limited. All rights reserved.
RSS news feeds