Report highlights need for Welsh farmers to prepare for Brexit
A new analysis of Brexit’s potential impact emphasises the need for agricultural businesses to prepare for the future to ensure the long-term prosperity of the £1.6 billion Welsh farming sector.
The Horizon document, ‘Exploring the implications of Brexit for agriculture and horticulture in Wales’, has been produced by Hybu Cig Cymru – Meat Promotion Wales (HCC) and the Agriculture and Horticulture Development Board (AHDB) and analyses a range of scenarios surrounding trading access, agricultural support payments, and movement of labour.
The report echoes other independent analyses which conclude that the sheep sector is most exposed to a ‘hard’ Brexit scenario. Over a third of PGI Welsh Lamb is exported abroad – over 90% of it to the EU – therefore the prospect of Tariffs or other barriers to trade is among the greatest risks.
Various other sectors could be affected in different ways in terms of trade and rural payments, and the report notes the potential vulnerability of the abattoir and processing sector to restrictions on migrant labour.
However, the report concludes that the most efficient enterprises are best-placed to thrive in a changed environment, and lists a range of resources, provided by AHDB, HCC and Welsh Government’s Farming Connect programme, which can help farmers to prepare.
HCC’s Industry Development and Relations Manager John Richards said; “The scenarios presented in the report represent the extremes of what we might expect from Brexit – anything from a free trade deal with Europe which allows us to trade exactly as we do now, to full tariffs on all agricultural imports and exports.”
“However, it’s very important that agri-food businesses take steps to assess the possible impact on their sector and begin to plan accordingly through benchmarking and other tools,” he added. “HCC is ready to work with Welsh Government, Farming Connect and the whole sector on a range of initiatives to help make the transition.”
“We had a number of interesting discussions with farmers and industry representatives at the Brexit roadshow events we held – again jointly with AHDB – earlier this year,” said John. “It’s not easy to plan when we don’t know the final outcome but knowing their costs and maximising efficiency is something farmers can do straight away which is certain to help.”
AHDB Head of Strategic Insight David Swales said: “For some sectors, Brexit presents a number of opportunities, while other parts of the industry face some potential challenges when we leave the EU.
“While we do not know all the details, we would rather farmers and growers start to prepare now based on the information we have at present. We will be updating our report as more information becomes available, but this latest Horizon document allows the industry to avoid the wait-and-see approach, which we believe is high risk.”