Britain’s besieged sheep farmers are begging New Zealand trade negotiators to be “realistic” about future export deal.
The National Sheep Association (NSA) said domestic lamb producers will struggle to cope if the Kiwis increase sheepmeat exports to the UK.
It was responding to a New Zealand Government consultation on building a free trade deal with the UK after Brexit.
NSA chief executive Phil Stocker said the sheep sectors in both countries were equivalent in scale – yet trade was an “entirely one-way process”.
He wants New Zealand take account of the interests of UK sheep farmers as they grapple with the complexities of Brexit.
Mr Stocker said: “Trade negotiations will be taking place at a time when our sheep industry is likely to be going through significant change.
“It will be both vulnerable and opposed to any further trade pressure.
“For sheep farming there is much to be gained by New Zealand in striking a free trade deal with the UK post-Brexit, and much to be lost by UK sheep farmers.”
The NSA said there was significant mutual respect between the UK and New Zealand sheep sectors and this should play a part in the negotiations.
But Mr Stocker warned there was a danger of Britain’s sheepmeat industry being off-shored in the quest for price efficiencies.
“I would be highly uncomfortable with the UK having higher environmental and welfare standards and building niche markets elsewhere in the world, and in the meantime feeding our own people on lower standard and cheaper products from overseas,” he said.
“That is not the way to engage our own citizens with sustainable food production and land management.”
New Zealand eyes up beef exports
In reality New Zealand is unlikely to increase sheepmeat shipments to the UK – its current EU quota is already under-utilised.
However imports from New Zealand helps to balance supply and demand in the UK, as domestic demand peaks during periods when supply is at its lowest.
Instead it is the beef sector which may see more competition from New Zealand, one of the world’s largest exporters.
Around 90% of the country’s beef is sent overseas, and in the year to October, production rose 6%, putting pressure on prices during a period of falling demand.
Currently just 2% of total New Zealand’s beef exports arrives in the EU and the country has long harboured ambitions to increase this percentage.
- In 2017 the trade of goods between the UK and New Zealand was worth £2.72bn, with British exports increasing by 10% on 2016.
