No Deal: Agriculture Tariffs

Liz Saville Roberts Excerpts

Tuesday 16th July 2019 Westminster Hall

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Will my hon. Friend take this opportunity to invite Ministers not just to the Royal Welsh show next week but to Balla Mart, which will be held on 31 October, when perhaps 800,000 small-body lambs will come to market at a time of considerable pressure on prices?

[Jonathan Edwards]

I welcome my right hon. Friend’s intervention, because it takes me to my next point. If we are locked out of European markets, there is no way in which domestic consumption could pick up the slack. Additionally, the final quarter of the year sees the sale of light lambs from Wales, which are traditionally destined for export. There is no way in which they could be redirected into domestic consumption. Economists previously assumed that the loss of the EU market would depress UK farm-gate prices by 30%.

[Jonathan Edwards]

I am grateful for that valid intervention. Those are the remedial measures that the British Government should be looking at urgently to protect our domestic farm producers. We are all aware of the imbalance there has been in the supply chain over many years, with, as he said, producers under the barrel of the supermarkets. The situation may well be exacerbated by what comes in the following months.

To return to my point, economists believe that farm-gate prices will fall by 30%. With an additional 800,000 lambs on the domestic market at the end of October, farm-gate prices will come under additional pressure. I therefore call on the British Government to commit, on top of the measure mentioned by the hon. Member for Westmorland and Lonsdale (Tim Farron), to additional funds for Wales to be able to implement contingency plans should the worst happen and we find there is unsellable surplus on the domestic market. There would be a disproportionate impact on Welsh agriculture.

In other sectors, the British Government have elected partially or completely to dismantle tariff walls on most products. Tariff rates of 45% for beef, 0% for eggs and 22% for poultry meat will apply for imports into the UK from the EU and the rest of the world, while our exports of those products to the EU will face tariffs of 84%, 19%, and 48% respectively. In the dairy sector, only certain products—such as cheddar with a 7% tariff and butter with a 15% tariff—will be afforded some degree of protection, with the EU applying tariffs of 57% and 48% respectively on those products.

[Liz Saville Roberts]

I am grateful to my hon. Friend for his time. Does he agree with Dairy UK’s analysis that the toxic combination of WTO tariffs on exports aggravated by zero tariffs on imports will cause a massive shock to raw milk prices? That will affect big dairy sector employers such as farmer-owned South Caernarfon Creameries.