There are 60 containers of Ornua’s dairy produce going to the UK each week at the moment, Ornua secretary Anne Randles said at the Navigating Global Trade conference on Friday.
In any scenario with the UK leaving the EU, even if still in a customs union or free trade area, the issue is “we have to get the product into that area and it will require a significant amount of extra paperwork,” she said.
Important market
The UK accounts for 42% of Irish dairy trade and it is only 60% self-sufficient in cheese. The UK imports 500,000t of cheese annually; 80% of which comes from Ireland and 70% from Ornua.
“No other market can fully replace the UK in volume or value terms,” Randles said.
“There is huge demand in the UK for cheddar. Many consumers there regard Irish cheddar as local. We need to leverage the advantages we have in the UK market.”
It will be subject to border inspection posts and veterinary controls
She said that at the present moment in time there is no difference whether a container of cheese travels to Cork, Belfast or Holyhead.
However, post-Brexit, more time will be required to export that container full of cheese to the UK.
A 24-hour notice of an export declaration is needed, which becomes an import declaration on the UK side.
Then it will be subject to border inspection posts and veterinary controls.
“What we are really talking about is the imposition of a lot more administration.
"The other issue there is Ornua’s businesses in the UK have been acquired to enhance Irish access to UK market.
"They could, from our operating perspective, be located in Cork, but they will now be cut off from our supply chains and logistics plans.
Land bridge
"Ornua also uses UK land bridge for short-life products. Every additional day means we can’t make the expectations for the commercialisation of that product.”
Randles added that tariffs could make Irish dairy uncompetitive in the UK market.
“That tariff will have to be recouped from the market,” she said.
“The UK is a deficit market. If they want to continue consuming the volume of cheese that they do, they have to import it.
"The consumer relationship piece is very important. We have to keep them close to us to ensure they choose our product, but there is an additional cost to that with the additional tariff.”
The Navigating Global Trade Conference is brought to you by the Irish Farmers Journal and Grant Thornton and is supported by the European Commission. This is a citizen’s dialogue event.
Read more
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There are 60 containers of Ornua’s dairy produce going to the UK each week at the moment, Ornua secretary Anne Randles said at the Navigating Global Trade conference on Friday.
In any scenario with the UK leaving the EU, even if still in a customs union or free trade area, the issue is “we have to get the product into that area and it will require a significant amount of extra paperwork,” she said.
Important market
The UK accounts for 42% of Irish dairy trade and it is only 60% self-sufficient in cheese. The UK imports 500,000t of cheese annually; 80% of which comes from Ireland and 70% from Ornua.
“No other market can fully replace the UK in volume or value terms,” Randles said.
“There is huge demand in the UK for cheddar. Many consumers there regard Irish cheddar as local. We need to leverage the advantages we have in the UK market.”
It will be subject to border inspection posts and veterinary controls
She said that at the present moment in time there is no difference whether a container of cheese travels to Cork, Belfast or Holyhead.
However, post-Brexit, more time will be required to export that container full of cheese to the UK.
A 24-hour notice of an export declaration is needed, which becomes an import declaration on the UK side.
Then it will be subject to border inspection posts and veterinary controls.
“What we are really talking about is the imposition of a lot more administration.
"The other issue there is Ornua’s businesses in the UK have been acquired to enhance Irish access to UK market.
"They could, from our operating perspective, be located in Cork, but they will now be cut off from our supply chains and logistics plans.
Land bridge
"Ornua also uses UK land bridge for short-life products. Every additional day means we can’t make the expectations for the commercialisation of that product.”
Randles added that tariffs could make Irish dairy uncompetitive in the UK market.
“That tariff will have to be recouped from the market,” she said.
“The UK is a deficit market. If they want to continue consuming the volume of cheese that they do, they have to import it.
"The consumer relationship piece is very important. We have to keep them close to us to ensure they choose our product, but there is an additional cost to that with the additional tariff.”
The Navigating Global Trade Conference is brought to you by the Irish Farmers Journal and Grant Thornton and is supported by the European Commission. This is a citizen’s dialogue event.
Read more
Listen: what no-deal Brexit tariffs will do to each sector
‘Beggars belief’ - Hogan slams tariffs in no-deal Brexit
Department and EU in negotiation over no-deal interventions
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