A damning new report has laid bare the severe impact of the British food trade deal struck after Brexit, revealing that UK farmers are being hit hard by plummeting exports and soaring costs.
Exports Crash by 20%
The report, published by the University of Sussex's UK Trade Policy Observatory, found that British food exports to the European Union have fallen by 20% since the Trade and Cooperation Agreement (TCA) came into effect in January 2021. This decline is equivalent to a loss of £2.3 billion in annual sales.
Professor L. Alan Winters, a co-author of the report, said: "The TCA has been a disaster for British agriculture. Our farmers are facing a perfect storm of reduced market access, increased red tape, and rising costs."
Costs Rise by 15%
The study also found that the cost of exporting food to the EU has increased by 15% due to new customs checks, health certifications, and other non-tariff barriers. These additional costs are hitting small and medium-sized farms particularly hard, with many reporting that they are struggling to stay afloat.
Impact on Specific Sectors
The report highlighted the devastating impact on specific sectors. The UK's sheep meat exports have fallen by 30%, while dairy exports have dropped by 25%. The horticulture sector has also been badly affected, with exports of apples and pears down by 40%.
"The government promised that Brexit would allow us to strike new trade deals and boost exports, but the reality is very different," said Minette Batters, President of the National Farmers' Union. "We are seeing our markets shrink and our costs rise. The government must take urgent action to support our farmers."
Government Response
A government spokesperson said: "We are committed to supporting our farmers and have put in place a range of measures to help them adapt to our new trading relationship with the EU. We are also working hard to open up new markets for British food exports around the world."
However, critics argue that the government's response has been inadequate. The report recommends that the government negotiate a veterinary agreement with the EU to reduce barriers to trade, provide financial support to farmers affected by the new trade barriers, and invest in new export markets.
Long-Term Consequences
The report warns that without urgent action, the long-term consequences for British agriculture could be severe. "The loss of export markets and the increase in costs could lead to a significant contraction of the UK farming sector," said Professor Winters. "This would not only affect farmers but also have wider implications for the UK economy and food security."
