British agriculture and livestock production have suffered a major setback over the past year, largely due to Britain’s exit from the European Union. The British government acknowledges that exports of food and agricultural products to the EU have fallen sharply.
The introduction of new customs regulations and certification requirements in particular are said to be responsible for this downward trend. Previously, farmers and food producers could send their goods to the European mainland with virtually no friction, but since Brexit, transport and marketing have become much more complex and expensive.
The British grocery trade magazine says agrifood exports have fallen by almost £3bn a year since Brexit. Meat and dairy products are particularly hard hit as they are subject to stricter checks at the border, leading to longer waiting times, higher transport costs and potential loss of quality.
British farmers say they are struggling to retain their markets, while new buyers outside Europe are not always profitable due to longer distances and lower margins. Small and medium-sized businesses often lack the resources to deal with additional paperwork and logistical hurdles. Before Brexit, these businesses could afford to export without much hassle; now they risk products arriving late or at too high a cost to the customer.
According to the economic campaign group Best for Britain there is a growing awareness that closer relations with the European Union are necessary to limit further damage. The organisation emphasises that it is not only the agricultural sector that is suffering, but also other sectors and even consumers within the United Kingdom.
In an attempt to turn the tide, the newly-formed Labour government has entered into negotiations with the European Commission to see if a supplementary or new trade agreement could facilitate current exports. While neither party appears to be seeking renewed EU membership, an agreement with clear arrangements on customs procedures, quality standards and product registrations could provide relief for exporting British farms.
However, it is unclear how quickly results can be expected, as London and Brussels each defend their own political and economic interests. For many British farmers and livestock farmers, much depends on the outcome of these talks. The alarming drop in export figures not only has financial consequences, but also erodes confidence in the future of the sector.
Without a new trade deal that cuts red tape and delays, Britain’s competitiveness could be further eroded. The domestic market will also be hit as farmers have to raise prices to cover the extra costs.