It is a pleasure to serve under your chairmanship, Ms Ghani. I congratulate the hon. Member for North Devon (Selaine Saxby) on securing today’s debate. As the Member for Angus, one of Scotland’s most productive areas, it is a pleasure to sum up for the SNP and to add the Scottish dimension to issues raised by Members from around these islands. In Great British Beef Week, let us all collectively acknowledge that there is no finer beef than Aberdeen Angus. I look forward to the Minister confirming that in her summing up.
I am fully signed up to supporting and promoting British produce, but I will not be dissuaded from highlighting the current challenges that our producers
face. The challenges in the meat and dairy sector have their roots in last spring, when we should have seen the emergence of new demand. Instead, we saw the eruption of a global pandemic, which decimated the hospitality and food service sector overnight.
Efforts were made to ensure that domestic demand, which rose sharply, would take up surplus commercial supply but, in reality, commercial food packaging and products made it incompatible with retail distribution processes and consumer tastes. Where we saw a glut of T-bone and fillet steaks, consumers were at the same time rushing out to buy mince. It was not just carcass balance issues that affected our producers. It was cheese, milk and yogurt, in large commercial containers with limited outlet into retail.
It was against that crisis that many of us called for an extension to the transition period last year, also recognising that the transition period was really no such thing. The UK Government advertised to businesses to get ready for exiting the single market and customs union, but were pretty sketchy on exactly how they could get ready to do that. Without a meaningful transition period, a soft start, room for manoeuvre or margin for error, UK meat and dairy exporters were thrown off a bureaucratic and procedural cliff on 1 January.
The dairy industry was especially hard hit, with exports to the EU down 96%, with beef, lamb, mutton and chicken exports collectively losing £50 million in EU sales. Many hon. Members have talked about the opportunities to export to wider markets. That is great, but it should not come at the cost to existing markets. The Food and Drink Federation report has shown that Scottish exports have been hit hardest, down 16%, with Wales 3.9% and Northern Ireland 7%. The British Meat Processors Association Brexit-impact report insists that blaming that on teething problems is no longer credible, if it ever was.
Collateral damage threatens our producers and their suppliers. I recently met with the Agricultural Industries Confederation to discuss the challenges in the agri-supply sector. Exiting the EU was top of their list. New tariffs for importing molasses for livestock feed, caused by an error in the UK global tariff, mean that there is now a higher tariff here than in the EU, which is expected to add £1 million to £1.2 million in extra costs to UK producers, all undermining our competitiveness. DEFRA is aware of this but, to date, there is no resolution. Nor is there a DEFRA resolution to issues affecting processed animal protein and the export health certificates that are now required to export those products from GB to Northern Ireland. Perhaps the Minister might want to discuss that in her summing up. Staying with Northern Ireland, as the president of the Ulster Farmers Union, Victor Chestnutt, pointed out to the Environment, Food and Rural Affairs Committee last week, Stirling bull sales in Scotland are vital for pedigree breeding and exchanging genetics. In 2019, 120 bulls from 37 Northern Ireland exhibitors showed at Stirling; by 2021 just four bulls were exhibited at Stirling from three Northern Ireland exhibitors. That is because when Northern Ireland farmers take a bull to GB and it does not sell, they need to pay for six months of residency before they can take it back to Northern Ireland. That madness is a disaster for sales and for breeding, and it is also a problem for Carlisle sales.
I want to touch on a comment from James Withers, of Scotland Food and Drink, who said
“It’s become clear that the EU third country import system was never designed for a country on its doorstep, integrated into its supply chains, sending large volumes of highly perishable product and smaller, consolidated volumes. In the end, the industry and consumer here want to maintain standards so let’s agree to align with our EU partners. Otherwise, the rug will be pulled from a significant chunk of the £1.2 billion of annual Scottish food exports for little, if any, benefit.”
The UK Government have in its power to support our meat and dairy sector through the Brexit carnage. I fully commend the innovation and energy with which our meat and dairy producers feed our communities and contribute to our economy, but let us not uphold any notion that everything is going invariably well. It is not. Those producers and the wider supply chains rely on EU exports, but exporting meat and dairy to the EU and Northern Ireland is harder now than ever. Let us all at least acknowledge that.
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