Pig Sector: BMPA Pork Supply Chain Report

British Meat Processors Association
British Meat Processors Association

Meat export orders cancelled due to Brexit

Despite Brexit being 31 days away, the axe has already fallen for some British meat exporters. Companies are reporting that overseas customers are now cancelling orders and buying their product from other countries due to the lack of clarity around Brexit.

This is set to cause major disruptions to the supply chain and have severe financial consequences for British meat companies who may struggle to win back lost business.

Nick Allen Chief Executive of the British Meat Processors Association said: ” Last week we were inundated with inquiries from members wanting information on what exactly is going to happen.

“Despite numerous crisis meetings with Government officials, we are still no closer to getting definitive guidance on tariffs, certification and health marks that our members desperately need. Unfortunately, the disruption has already started and damage is already being done.

“The lack of clarity around Brexit is now causing orders to be cancelled and effectively closing-off once lucrative export markets to British firms.”

The problem is threefold and affects the whole food supply chain.

Delays in announcing what tariff rates will apply in the event of a no-deal Brexit mean that shipments to overseas markets that set off tariff-free will arrive at their destination after 29 March and be subject to an, as yet, undetermined tariff. Those overseas customers have no way of knowing how much extra they will be required to pay.

The insurers that cover these consignments and facilitate the movement of goods between countries are refusing to indemnify against losses related to a no-deal Brexit.

There is also confusion about which health mark should be used. The health mark is the stamp that indicates which plant meat has been processed at and is a key factor in insuring traceability and provenance. So far, no decision has been made by Government over what this mark should be. Also, no formal acceptance of our change of status as we cease to be an EU member state has been received from our major export markets. This means that there is a real danger that any product that gets shipped bearing the wrong mark will be turned away at its destination.

During March meat processors will be faced with the conundrum that they will be buying animals to process without any understanding of what the market may look like post 29th March. And, it won’t be a simple matter of selling more product into the UK market because most of the £1 billion worth of meat exported is made up of cuts that are popular overseas but not here in Britain.

The red flag has been raised and we are calling on Government to support the British meat industry with clear information and guidance and to step up efforts to agree trading terms with our most valuable overseas trading partners.

About BMPA

The British Meat Processors Association (BMPA) is the leading trade association for the meat and meat products industry in the UK.

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The government has listened to meat industry warnings and pushed this plan back 12 months — more reality in face of post-#brexit regulatory enforcement capacity constraints.

https://britishmeatindustry.org/updates/defra-agree-to-move-new-rule-deadline-by-one-year/ https://twitter.com/pmdfoster/status/1587000818875744264

Huge relief that Defra has agreed to postpone new export rules by one year.
But there's still work to be done, and BMPA is looking forward to working with them to help devise a new system that's going to be needed to implement the new rules successfully.
👉https://bit.ly/3tFPt1j

This leaked letter from George Eustice comes as no surprise. But what else are we currently capitulating on?

Our warnings about the Oz trade deal went unheeded
👉https://bit.ly/3Uzfawc

Other countries have sector experts inside the tent during negotiations.....The UK doesn't.