The immediate aftermath of the EU referendum has brought with it a fall in the value of sterling against both the US dollar and the euro, which is generally good news for prices received by NI farmers.

The first sector to react has been lamb, with southern Irish buyers more active in the marts towards the end of last week, prompting factories to respond with quotes of 400p/kg by Monday morning, up 30p/kg to 35p/kg on last week.

In other livestock sectors, the benefits of a weaker sterling will take longer to work through. The beef industry is mostly reliant on the British supermarket trade, so not as exposed to currency movements, but a weaker sterling makes imports into the UK less attractive.

In the dairy sector where commodities in the world market are traded in US dollars, sterling at a 30-year low against the dollar will have a positive effect, although it will take time to filter through into the prices paid by British customers for product. The downside for farmers is that a weak sterling could lead to an increase in the cost of inputs.

The big unknown is where currency exchange rates go to next. Some predict that sterling could weaken further as the reality of Brexit becomes clearer. Others think that it could settle around current rates of around £1 = €0.82 and £1 = US$1.35.

Meanwhile, in NI, various local politicians have sought to provide reassurance to the agri-food industry in the wake of the Brexit vote. Minister for Agriculture Michelle McIlveen met various industry representatives earlier this week. She recognised that the vote will cause change for farmers, but emphasised that for now it is “very much business as usual”. In the short term and until a final exit deal is negotiated, the UK remains a member of the EU with trade arrangements and subsidy payments still in place.

The minister also confirmed that DAERA, along with other Stormont departments, is to establish a team of senior officials to consider potential implications of Brexit on legislation and regulations and identify future challenges and opportunities. These teams will be expected to liaise with London, Dublin and EU counterparts. The message from both Minister McIlveen and her party leader and First Minister Arlene Foster is that they want to get the best deal possible for NI, recognising our unique circumstances with a land border with another EU member state.

“I want to see an arrangement where our local companies have a free-trade agreement that allows them to continue to access markets in Europe that they are currently supplying,” said Minister McIlveen.

The Brexit issue is due to be discussed at the north-south ministerial council meeting next Monday.

Cool heads

Meanwhile, Ulster Unionist MEP Jim Nicholson, who campaigned for a Remain vote, has said that despite heading into a period of immense uncertainty it is time for “cool-heads”.

Full coverage: Brexit