AHDB, the English levy-funded beef and lamb board, held a one-day meat exports conference to update its stakeholders on progress being made in developing new export markets and updating on promotional activity in existing markets.

Unsurprisingly, the Brexit vote hung over proceedings, though the immediate impact of sterling weakening gives a boost to UK meat exporters into either euro or dollar currency markets. Like just about everywhere else in the UK at present, there is great concern about what direction the industry will take in the years ahead.

There were constant reminders of the EU link with references to what will happen PGIs on West Country Beef and Lamb plus what about joint collaborative lamb promotion campaigns with the French and the Irish.

The event concentrated on updating on the big ticket issues like opening of new markets plus lengthy sessions explaining the activities currently undertaken to promote British Beef and lamb in export markets (though “British” is no longer referred to as national references aren’t permitted by the EU). The focus is, like in Ireland, on quality schemes and systems.

Many of the difficulties experienced by Irish exporters are also applicable to the British trade. In fact, the prolonged strength of sterling plus the fact that UK beef prices have been the highest in Europe for several years, has meant developing export markets on the continent has been difficult.

Outside Europe, the focus has been on opening export markets and, unsurprisingly, they have been tracking the same targets as Ireland. They are still working on Japan and the Philippines with a visit from the latter due later this year. Ireland already has approval here as well as partial approval in the US. The UK has taken a different approach with the US in seeking full approval for beef, including manufacturing and lamb, in their application, unlike Ireland.

Again inspection visits are expected soon and it was announced today that a laboratory has been approved to undertake E-coli testing. With China, progress is ongoing in what was described as a golden age of Chinese-British relations. A further inspection to secure a lifting of the BSE ban is expected this autumn. In the Hong Kong market, where Ireland is also approved, there has been a relaxation on the 30-month age requirement plus acceptance of manufacturing beef.

We don’t think of the UK as a major meat exporter, but 18% of its beef production is exported to other EU countries. A large part of this is trade into factories in Ireland, often for further processing.

On sheepmeat, 36% of UK production is exported primarily to France, where the UK is the biggest supplier and is also the largest exporter of sheepmeat in Europe. Pigmeat exports to other EU countries represent 32% of total production, which is significant, though China is expected to become an important destination in future years.

Trade arrangement

JP Garnier, head of exports with AHDB, said the expected value of British meat and dairy exports would be £3.6bn (€4.4bn) in 2016. In the short term, this will be boosted by the weakness of sterling against the dollar and euro but the long-term issue is what time or trade arrangement is devised with current EU export markets.

He highlighted the tariff barriers for entering Norway at present as an example of what can happen outside a single market arrangement. For a UK exporter to Norway, the rate on lamb is a massive 429% and £6.36/kg (€7.71/kg) on boneless lamb. On beef fillet, it is 344% of market value. All of these tariffs effectively close the market to imports. AHDB is anxious that agricultural trade exports aren’t overlooked in exit negotiations.

China

Like Ireland, Britain has its eye on China as a key market to open for beef exports. Karen Morgan, agriculture councillor, British Embassy, Beijing, updated the conference on activities undertaken over the past year and the road ahead in opening this market.

With several ministerial visits to China in the past year, she described this as a golden age for UK-China relations but cautioned that this didn’t necessarily mean a fast-track approval process for beef exports. With the market growing at an extremely fast rate (imports in 2015 were 473,000t, 50% higher than the previous year), China is currently targeted by 120 countries worldwide to become a supplier. It was, she explained, a country that operated at the pace it decided and wouldn’t be pushed into action before it was ready. This we know well in Ireland.

As for a UK timetable for approval, she suggested that they would have two BSE inspection visits this year and protocol negotiations over 2017 and 2018, securing approval hopefully later that year with trade commencing either in late 2018 or early 2019 assuming all the inspections and protocols go according to plan.

Ireland is currently in the protocol negotiation phase with the Chinese authorities and the report from their inspection visit to Ireland last January is expected soon. Assuming the report is OK, the next stage will be factory approval visits. Minister Creed is leading a trade delegation to China in early September and Irish farmers will be hoping that he succeeds in pushing the approval process towards conclusion if not completely over the line.

France

Rémi Fourrier, head of AHDB France, spoke on the appropriate title of French challenges, which is particularly accurate not just because of the Brexit vote but because of farm protests which began this time last year. As a result of these and exceptionally weak French farm prices, supermarkets virtually ceased offering imported products which hit Irish experts every bit as much as UK exports.

The French market is particularly important for the British sheepmeat industry as they are the largest exporter in Europe, with France their top destination and France’s top supplier of imported lamb as well.

He explained AHDB activities in promoting beef and lamb outside the supermarket sectors, particularly the catering sector and independent butchers in the centre of Paris.