Farming & Food

Brexit: Meat sector suffering 40% hike in costs

Oireachtas committee told of difficulties caused by Brexit and Covid-19

Meat processors and exporters facing cost increases of up to 40 per cent, an Oireachtas committee has been told.

Thu Feb 11 2021 - 10:30

The loss of frictionless trade due to Brexit is leaving meat processors and exporters facing cost increases of up to 40 per cent, an Oireachtas committee has been told.

The increased costs are due to new customs and sanitary/phytosanitary processes, delays and disruption in logistics and direct transportation fees, according to Meat Industry Ireland.

In a submission to the Oireachtas Joint Committee on Agriculture and the Marine, the Ibec-affiliated organisation said that while the increase in direct sailings to continental Europe was providing exporters with an alternative to the UK landbridge, it costs between €500 and €800 extra per truck to transport goods this way. In addition, exporters are facing difficulties filling trucks for return journeys.

The industry body also expressed concern about other Brexit measures due to come into force later in the year, which it said would cause further trade disruptions and extra costs.

READ MORE

"Just because tariff- and quota-free trade has continued doesn't mean the changes imposed by Brexit aren't wide-ranging and costly. And we have serious concerns about the potential for disruption when new export certification arrangements come into effect in the UK from April 1st," said director Cormac Healy.

‘Double whammy’

“We are dealing with the double whammy of Covid-19 and Brexit and both are relevant to the current market dynamics. Covid-19 lockdown restrictions across Ireland, the UK and Europe are leading to a major drop in demand throughout food service channels, and Brexit contingency stockpiles put in place ahead of the Brexit deadline are now being released and reducing demand.”

The meat sector generates more than €4 billion in revenues, according to industry estimates. It employs more than 16,000 people.

LATEST STORIES