Yesterday's (19 May) announcement between the UK and EU has re-set the trade relationship, addressing the impact of non-tariff barriers by including a Sanitary and Phytosanitary (SPS) agreement.

The EU remains the UK's most important market for agri-food exports. Based on the 2022-2024 average, the following proportions of UK red meat (fresh, frozen and offal) and dairy exports were sent to the EU:

·       Beef – 79%

·       Pork – 37%

·       Sheep meat – 94%

·       Cheese – 78%

AHDB analysis on Prospects for UK agrifood exports has also highlighted that the EU remains as one of the best prospects for UK exports due to existing supply chains, markets and relationships. While the EU market is a mature market, there are opportunities for UK exports of premium red meat as well as halal products.

Previous AHDB analysis has shown that non-tariff measures (NTMs) added 5-8% to costs for exporting livestock products and 2-5% to costs for exporting plant-based products to the EU.

Sarah Baker, Agriculture and Horticulture Development Board (AHDB) Head of Economics, said: "Since leaving the EU, added trade friction has disproportionately impacted SME export businesses most notably with the amount of red tape creating challenges around groupage. Export Health Certificate (EHC) cost has also added an extra financial burden across the industry.

"With recent headlines highlighting trade arrangements with the US, it remains important not to overlook the EU market. The EU market is and will remain our key trading partner due to our proximity to market and established supply chains. Any agreement that lowers trade friction, smoothing trade between the UK and the EU would be good news for UK agricultural exporters."

Ouafa Doxon, AHDB Head of Market Access, reiterated the importance of the EU as one of the UK's largest and most valuable trading partners, adding that the trade summit presented a vital opportunity to advance discussions on improving market access and addressing trade barriers that have emerged since Brexit.

"New regulatory requirements, including veterinary checks, EHCs and administrative red tape have significantly increased costs and complexity for UK meat exporters, disrupting supply chains, reducing competitiveness and constraining growth," she said.

"Ahead of the summit, I visited Calais Port to observe veterinary controls firsthand and engage with French veterinary officials. These discussions reinforced the importance of cooperation in addressing market access challenges and improving the flow of goods. 

"Constructive dialogue at this summit could help streamline processes and explore solutions such as an SPS agreement, while respecting the UK's regulatory autonomy. Such progress would be instrumental in facilitating smoother trade flows and ensuring long-term stability for the UK meat industry.

"Strengthening market access will benefit UK meat exporters, support food supply chain resilience, and reinforce the UK's position as a key trading partner with the EU.

"We will continue to monitor the details as they emerge."

Further details about export opportunities for British red meat and dairy can be found in the AHDB analysis Prospects for UK agri-food exports.