UK agri-food tariffs would represent up to a €400m threat Irish dairy exports, according to Dairy Industry Ireland (DII).
A spokesperson for DII said that the UK government needs to appreciate the severe economic, social and environmental damage on the island of Ireland from the possible application of agri-food tariffs.
On Tuesday, at the UK National Farmers' Union annual conference the UK environment secretary Michael Gove said that the UK will apply tariffs to food imports to protect British farmers in a no-deal scenario.
In response to his comments, Conor Mulvihill, director of Dairy Industry Ireland, said: “Milk exports south of the border are of vital importance to the economic viability of the dairy industry in Northern Ireland and there simply is not the processing capacity in Northern Ireland or in fact the rest of the UK to handle this milk.
“With less than 900 hours remaining to the proposed Brexit day, it is vital a resolution is reached and a strong backstop protecting dairy trade and regulations on the island of Ireland is maintained,” he said.
Recent Central Statistics Office (CSO) figures put milk intake from Northern Ireland to the south for manufacture at over 804m litres for 2018.
Tariff threat
DII studies have shown that for the single product of cheddar alone, the tariff threat is about €155m, with a threat of about €400m on overall dairy exports to the UK.
“We are engaging closely with our colleagues in Food Drink Ireland, to push for a tariff stabilisation fund and state aid flexibilities to help agri-food exporters and farmers offset the impact of UK tariffs in the event of a no-deal Brexit,” Mulvihill said.
“We are also working across government to positively look for solutions that will deliver for Irish dairy in both a no-deal and a deal scenario. The stakes are very high with our economic modelling showing both prices rises and severe trade losses in crash-out scenarios.
“Even if the UK uses a tariff rate quota (TRQ) system on products such as dairy to mitigate disruption, this will put the Irish dairy industry competing toe-to-toe with larger rival such as New Zealand and the US for dairy market share in the UK market.”
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UK agri-food tariffs would represent up to a €400m threat Irish dairy exports, according to Dairy Industry Ireland (DII).
A spokesperson for DII said that the UK government needs to appreciate the severe economic, social and environmental damage on the island of Ireland from the possible application of agri-food tariffs.
On Tuesday, at the UK National Farmers' Union annual conference the UK environment secretary Michael Gove said that the UK will apply tariffs to food imports to protect British farmers in a no-deal scenario.
In response to his comments, Conor Mulvihill, director of Dairy Industry Ireland, said: “Milk exports south of the border are of vital importance to the economic viability of the dairy industry in Northern Ireland and there simply is not the processing capacity in Northern Ireland or in fact the rest of the UK to handle this milk.
“With less than 900 hours remaining to the proposed Brexit day, it is vital a resolution is reached and a strong backstop protecting dairy trade and regulations on the island of Ireland is maintained,” he said.
Recent Central Statistics Office (CSO) figures put milk intake from Northern Ireland to the south for manufacture at over 804m litres for 2018.
Tariff threat
DII studies have shown that for the single product of cheddar alone, the tariff threat is about €155m, with a threat of about €400m on overall dairy exports to the UK.
“We are engaging closely with our colleagues in Food Drink Ireland, to push for a tariff stabilisation fund and state aid flexibilities to help agri-food exporters and farmers offset the impact of UK tariffs in the event of a no-deal Brexit,” Mulvihill said.
“We are also working across government to positively look for solutions that will deliver for Irish dairy in both a no-deal and a deal scenario. The stakes are very high with our economic modelling showing both prices rises and severe trade losses in crash-out scenarios.
“Even if the UK uses a tariff rate quota (TRQ) system on products such as dairy to mitigate disruption, this will put the Irish dairy industry competing toe-to-toe with larger rival such as New Zealand and the US for dairy market share in the UK market.”
Read more
UK plans to open doors to Brazilian beef
Editorial: UK threat to wipe out Irish beef in no-deal Brexit
No-deal Brexit tariffs could increase food prices by 45%, retailers warn
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