An orderly UK withdrawal from the EU would include a transition period until the end of 2020, which would limit Brexit's impact on markets in the short-term, the latest outlook from the European Commission has found.

“While the EU is working hard to reach an orderly withdrawal, the UK's exit will undoubtedly cause disruption.

“The EU agricultural sector is an example of an integrated single market where raw agricultural and processed products are widely exchanged between member states.

“The UK is no exception, and it imports a substantial amount of agricultural goods from the other EU member states,” the outlook said.

Ireland

Ireland features heavily in the outlook on Brexit, with the Commission highlighting that the EU-27 is a net importer of raw milk from the UK – with Ireland taking the vast majority of this.

EU figures show that in 2017, net-imports from the UK accounted for 9% of Irish production, which is a substantial share of Irish processing capacity.

While Ireland is most exposed to Brexit, with 50% of beef and pigmeat exports alone going to the UK, a number of other member states will be affected.

The report highlights that there are concerns in the Danish and German cheese and meat sectors when it comes to Brexit, along with risks to exports of French, Belgian and Italian cheese, Dutch and Polish meat, Spanish and Dutch fruit and vegetables.

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Orderly Brexit would limit short-term impact on markets – Commission

The European Commission’s latest short-term outlook report examines the risk of Brexit to each sector and to a number of member states.