Expert insight piece - extract Key considerations
for the future of farming after Brexit
Food and catering-related procurement experts allmanhall apply their thorough under- standing of supply chain management, commodity market movement and food inflation, to list factors to consider when analysing Brexit’s impact on UK farming.
Contact
hello@allmanhall.co.uk for full article.
“Those farmers who will thrive in the coming years will do so by focussing on quality and demonstrating value in their products, and by adopting practices that enhance the natural environment and not degrade it.” - Joe Evans, farmer and Non-Exec Director at allmanhall
Change is coming — key considerations highlighted by allmanhall
Here are some key points to consider from a farming and agri-food perspective; - The overarching trading terms with the
EU will have a major impact on the future of the agri-food sector. A ‘hard’ Brexit would mean that the UK would trade on World Trade Organisation’s terms, where tariffs on food are traditionally high. A ‘soft’ Brexit could lessen short-term impacts if a comprehensive free trade agreement is reached and/or if the UK stays in the single market. - The EU will go through its own peri- od of change in 2020 when its new budget comes into effect – this could bring about its own transformations to the CAP and EU regu- lation. Subsidy protection until 2022 will give
UK farmers some shelter during the period of change that Brexit brings. These payments ending could be an opportunity to deliver a step-change improvement to our agricultural industry. - The UK is currently the beneficiary of EU trade agreements with over 60 countries, in- cluding Chile, Morocco, Israel and Mexico, all of which are prime fresh produce exporters to the UK. A priority must be to secure these terms upon departure from the EU. - Currently, there is a consumption imbal- ance. The drive to greater self-sufficiency is impacted by consumer demand. Taking lamb as an example, despite the UK being 93% self-sufficient, vast quantities of lamb are still imported and exported, owing to consumers preference for leg of lamb. - Furthermore, with 95% of lamb exports landing in the EU. Brexit will force a seismic shift to take place, where the UK has to com- pete with other non-EU exporters. - Regulation is both a barrier and enabler to trade. Regulatory compliance could allow access to an EU market of 500 million peo-
ple. However, some aspects of regulation are deemed overly complex and bureaucratic. - Access to labour is critical for the agri-food industry. Seasonal migrant labour is current- ly vital to the farming sector and 30% of food manufacturing labour force is from the EU. Labour challenges could force a much needed improvement to productivity and investment or lead to significantly reduced yields.
“Urgent clarity is now required as to the na- ture of the UK’s future trading relationship with the EU. Market alignment or regulatory divergence, labour market access, tariffs, sub- sidies post 2024 and securing continued access to the EU’s existing Free Trade Agreements all impact the shape of future supply chains, the evolution of the UK Agri-food sector, and ul- timately the cost of food”. - Mike Meek, Pro- curement Director at allmanhall
Food manufacturing will likely be the most impacted area in agri-food and will be a key focus in allmanhall’s next blog, available late March at
www.almanhall.co.uk/blog
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