Sheep Farming: No-deal EU Exit

Debate between Baroness Chapman of Darlington and Ruth Jones

Tuesday 3rd September 2019 Commons Chamber

[Jenny Chapman]

That is the first time I have heard that point made in the House; it is one that my hon. Friend and I discussed earlier today. She is absolutely right: farmers need to hear from the Minister what he intends to do about their payments, and we need to ensure that he has the power to make those payments. The principal problem for the sheep sector is that, according to the report the hon. Member for Edinburgh North and Leith (Deidre Brock) mentioned, under no deal the export of sheepmeat to the EU27 would be almost entirely wiped out, with the only exports being those via a tariff rate quota of less than 400 tonnes. Of course non-EU exports could increase over time, although the possible rise of around 5% would not be anywhere near enough to offset the loss of EU trade. Reduced trade with the EU would leave around one third of UK meat without a market.

[Ruth Jones (Newport West) (Lab)]

I congratulate my hon. Friend. She is absolutely correct to raise concerns about the impact of a no-deal Brexit on the sheep industry in Britain, and nowhere will that impact be felt more than in Wales. In acknowledging the work that the NFU Cymru and the Farmers Union of Wales do on behalf of Welsh farmers, may I point out that 96% of all the Welsh lamb sent out of the UK goes to the 27 other nations in the EU? If we do not get this right, sheep farmers in Wales will be pushed to breaking point, and we cannot allow that.

[Jenny Chapman]

This affects every region of the country, from the Lakeland fells, to Exmoor, to Teesdale, where I live. People are saying, “Why does this matter? Surely this just means that there will be more lamb for the UK market, the price will be cut, and we can all enjoy more lamb this Christmas,” but the problem is that we just do not have the facilities to safely slaughter, store and freeze that volume of lamb in the UK. If the Minister plans to introduce such facilities, he needs to say so tonight, because knowing that this year’s yield of around 15 million lambs can be safely stored and enjoyed by consumers, and therefore paid for, would be of huge benefit to the 34,000 people currently employed in the industry. If that meat cannot be stored and sold—even at a knock-down price—the sector will be decimated.

The Government have said that they are aware of the special circumstances that would lead to a substantial negative effect on the income of UK sheep farmers and that they would compensate farmers. To their credit, the Government have pledged to continue to commit the same cash total in funds for farm support until the end of this Parliament—although obviously that might be coming sooner than was anticipated. Financial support is already included in farmers’ business plans, but it does not compensate farmers for a sudden loss of market or for feed costs for animals that they cannot now slaughter. It does not ensure that sufficient feed is available to keep lambs bred for slaughter alive. It does not create abattoir or cold-storage capacity. It certainly does not create new export markets or offset tariffs, because that would be against WTO rules.

In answer to one of my written parliamentary questions on 18 July, the then Minister, the right hon. Member for Scarborough and Whitby (Mr Goodwill), said:

“We are doing all we can to mitigate the challenges our farmers will face and we have contingency plans in place to minimise disruption.”

But Ministers have not explained, and continue to refuse to explain, what those contingency plans are. The Minister’s predecessor offered from the Dispatch Box to meet me, but the current Minister then declined that invitation and has refused to discuss the issue. If a wasteful cull of millions of lambs and breeding ewes is to be avoided, measures need to be put in place now. If the slaughter and storage facilities are not in place and no deal happens, farmers will have little option but to cull their flocks. The meat will not be eaten, and the waste will be shameful.

The lack of new trading arrangements and an implementation period would mean that farmers will set about drastically reducing the size of their flocks. Chillingly, the AHDB says:

“Culling rates would record significant uplift driving the increase in adult sheep slaughterings. Quarter one of year two”—

of a no-deal Brexit—

“records a year-on-year uplift in slaughterings as the remainder of the year-one lamb crop are slaughtered.”

The estimate of 3 million lambs is at the lower end of the estimates.