SECURING the future of vital exports such as seed potatoes and malting barley to third countries post-Brexit is complex and presents "real challenges" according to an AHDB expert.

 

Peter Hardwick, AHDB Head of Exports, said the market access piece was "crucial" for the UK and explained: "Taking the seed potato sector as an example, the industry sees some real challenges. We need to be realistic - 75 per cent of our seed potato exports now go out of the EU and we need to ensure there's continuity in those markets.

 

"When you look at existing EU trade agreements in detail, the UK is listed separately, so it may be relatively straightforward to disentangle ourselves and enter into a bilateral agreement with the third country. But unfortunately when you dig into the detail you'll see that the underlying commitment is that the negotiating party is signed up to the European Treaties, which we are leaving.

 

"For example, within the agreement with Egypt, there's a specific commitment that the EU supplies seed potatoes tariff and quota free, but there's a reciprocal agreement that we take 250,000 tariff-free tonnes of ware potatoes from Egypt. It's quite clear the UK will not want to take that full quota, so we will have to enter into some form of negotiation."

 

According to Mr Hardwick, even the UK's bilateral agreements, for example exporting malting barley to China, will be affected by Brexit. The agreements are underpinned by the European regulatory framework, something the UK will have to replicate to assure buyers their suppliers will maintain current standards.

 

Also this week, AHDB Beef & Lamb has revealed that exports of beef and veal from the UK declined by 21 per cent on the year in April. With volumes totalling 7,200 tonnes exports continue to fall behind those in 2016, a trend which has been apparent since the beginning of the year. With the production of beef and veal in the UK still falling behind 2016, there are limited supplies available for export.

 

The reduction in exports were driven by falling shipments destined for other countries within the EU, back by 27 per cent compared to 2016. Volumes going to Ireland and the Netherlands were back in April, by 30 per cent and 43 per cent respectively, whereas Hong Kong was one of the few markets to increase their imports of UK beef and veal, with their market share increasing to 9 per cent.

 

* Meanwhile, payments worth £4.6 million are being made to 1,050 Scottish sheep producers by tomorrow, 30 June.

 

The 2016 payment rate is €77.08 (£65.69) per ewe hogg. Under the 2015 scheme the payment rate was €78.12 (£57.13). This year's increase in the Sterling payment is due to the exchange rate applied.