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Boris Johnson’s authorities is negotiating new free commerce agreements (FTA) at tempo with main agri-producing nations, so there has by no means been a extra vital time for our farmers to develop their companies additional via exporting.
This important message to trade was delivered by NFU president Minette Batters when she addressed farmers, trade stakeholders and politicians on the latest launch of the union’s newest export technique in London.
The UK agri-food sector contributes about £20bn in foods and drinks exports every year, however solely round 20% of firms promote their items abroad, based on the UK authorities, which says it’s making in depth efforts to extend this quantity.
See additionally: Authorities should match-fund AHDB money to develop exports – NFU
Mrs Batters stated there have been “monumental alternatives” for meals and farming companies to extend exports, however agriculture was “very completely different to different sectors”.
“I symbolize 47,000 meals and farming companies and I reckon in all probability lower than 500 are exporting themselves,” she stated.
Partnership between governments, farmers, the AHDB and others can be important to attain the NFU’s imaginative and prescient, outlined of their Export Technique April 2022 (PDF), to develop agri-food exports by 30% to greater than £30bn by 2030, the NFU chief pressured.
Mrs Batters stated the UK authorities should observe the instance of different massive agri-food exporting nations, corresponding to Australia and New Zealand, and match-fund the annual £6.6m of AHDB’s levy used to market agri-food exports.
“Ideally, what you need to do is market the hell out of it at house and promote it as far and broad as you probably can,” she stated.
AHDB recommendation
Phil Hadley, the AHDB’s director of worldwide market improvement, was current on the NFU’s export technique launch.
Talking later to Farmers Weekly, he supplied his recommendation to farmers trying to export their items.
He stated: “First, you must perceive your product and worth, and determine its distinctive promoting factors.
“You might want to be taught in regards to the market you’re concentrating on. The place does your product slot in? How does it compete?
“It’s best to contemplate the best alternatives within the market. You could be concentrating on the foodservice sector, retailers, or one other market.
“You must also perceive who your rivals are and take into consideration the dangers whenever you enter the market.”
Dr Hadley famous the UK’s robust fame for meals security and excessive environmental and animal welfare requirements.
Farmers can use this to their benefit, he stated, by concentrating on markets within the US and in Asia the place meals security “is a really robust driver for meals purchases”.
“For instance, within the US you would possibly main on manufacturing requirements and excessive welfare as their customers recognise that meat manufacturing is a little more intensive than in different elements of the world,” he added.
“You would possibly get a bit extra traction for those who’re promoting a excessive welfare product that’s produced with out development promotants and even no antibiotics.”
Livestock farmers might additionally add worth by promoting elements of the carcass that don’t have a powerful market at house, corresponding to offal and fifth quarter cuts of meat, to the Far East.
Dr Hadley stated Brexit had added administrative burdens and made it harder for farmers to export their merchandise to continental Europe.
Meat and dairy merchandise have been topic to stringent checks, elevated paperwork, increased buying and selling prices and transportation delays.
“It’s simpler to unfold the price of veterinary well being certification over a truckload of lamb than a field of cheese,” he famous.
5 steps to export success submit Covid and Brexit
- Assess your corporation Is that this the best time for your corporation to export?
- Do your analysis Acquire an understanding of potential worldwide clients and their clients.
- Increase your profile Construct an internet presence and create alternatives to embrace change.
- Examine your preparations Be certain your corporation understands the practicalities of exporting, particularly submit Brexit.
- Develop your exports Take into consideration methods for rising your exports to embrace change.
Supply: AHDB/Division for Worldwide Commerce/Meals and Drink Federation
‘Exports recovering’
The Meals and Drink Federation’s (FDF’s) UK Meals and Drink Exports report, printed earlier this month, reveals that final yr exports have been recovering from the challenges of the pandemic, and producers are profiting from new international buying and selling relationships.
In 2021, Scotland accounted for the lion’s share of UK foods and drinks exports (nearly 30%) value £5.7bn, up 14.6% since 2020.
In England, the North East noticed the most important enhance, reaching £280m (up 20.4% on 2020), whereas the Midlands grew by £810m, a 12.6% rise on 2019 figures.
Wales was the one house nation to exceed pre-Covid export ranges – pushed by robust exports of cereals – value £558m to the economic system and up 13% on 2019 ranges.
The share of exports to non-EU markets was growing, the FDF stated, however the UK authorities might do extra to enhance the implementation of the UK-EU commerce settlement to assist firms recuperate exports within the EU, in addition to develop market share in different international markets. Russia’s invasion of Ukraine was not factored into the report.
Provisional UK authorities export figures present that the whole recorded worth of Meals, Feed and Drink (FFD) exports in January 2022 was £1.5bn, up 54% on January 2021.
Recorded FFD exports to the EU have been double (+101%) these in January 2021. Exports to non-EU nations have been 21% increased than January 2021.
Authorities initiatives
The UK authorities says it’s supporting farmers in a lot of methods to allow them to export their merchandise.
The Nice Meals and Drink marketing campaign, based mostly at Defra, is supporting British foods and drinks exports via advertising and promotional exercise focused to customers and commerce audiences in 4 key markets: China, Japan, UAE and the US.
The marketing campaign promotes the trade’s breadth, high quality and innovation, and champions its “distinctive culinary provide to assist shift perceptions and assist exports”.
Earlier than Easter, the federal government launched adverts for eight agri-food attachés and counsellors.
The community needs to be in place later this yr, topic to safety clearance and relocation situations, and will probably be based mostly in India, Thailand, Vietnam, Kenya (with a pan-African remit), the US, Canada, Brazil, and Mexico.
The federal government has additionally introduced an agri-food attaché for Japan into the community, becoming a member of the 2 present roles in China and the Gulf.
The Division for Worldwide Commerce (DIT) and Defra are working with devolved administrations to develop a brand new meals and drinks exports council.
It would strengthen the partnership between authorities and trade, bringing collectively agri-food specialists to share information, good apply, market intelligence and the capability to boost the UK’s international fame for high quality and requirements.
Creating export alternatives supplied by new FTAs will probably be a key goal.
Defra farm minister Victoria Prentis stated: “Our world-class farmers and agri-food companies are the muse stone for rising our foods and drinks exports.
“We wish individuals at house and overseas to be lining as much as purchase British, and we’re working in partnership – authorities, farmers and trade – to safe higher worldwide commerce alternatives.
“We’re already reworking our affords to companies, increasing our agriculture, foods and drinks attaché community, and establishing a brand new UK-wide export council.”
The place farmers can get recommendation and assist to spice up exports
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The Division for Worldwide Commerce’s Export Help Service (tel: 0300 303 8955) can present assist and solutions to sensible questions, corresponding to exporting to new markets, required paperwork in addition to export guidelines for particular nations
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Defra’s Nice web site gives priceless data on learn how to get began on exports
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The AHDB’s web site gives detailed data, knowledge and recommendation on learn how to get into exports
Case research: Quicke’s Cheese, Devon
Fourteenth era cheesemaker Mary Quicke has been exporting cheese produced at Dwelling Farm, close to Exeter, for the reason that Nineteen Eighties – primarily to the US and Australia.
Mrs Quicke is managing director of Quicke’s Cheese, a household farming and cheesemaking firm with 700 cross-bred cows, in a pasture-based grazing system producing milk primarily for conventional farmhouse cheddar and clothbound cheddar cheese.
Export specialists
The farm produces about 200t of cheese a yr. Earlier than Brexit and Covid, about 40% was offered to export, however that determine has fallen to simply below 25%. Now all of the cheese exports are offered through specialist exporting firms due to added issues of paperwork and tariffs.
Mrs Quicke stated supplying cheese to retailers within the UK meals market might see your product simply displaced if a competitor pitches at a lower cost.
However promoting a few of your product overseas affords farmers an escape route from the “brutal zero-sum acquire” of a number of retail.
“I believe British farmers could also be underestimating the ability of taking product off the market and promoting it elsewhere,” she added.
Worth construction
Mrs Quicke tends to promote her cheese to the exporters for the same worth construction as is offered right here.
“On common, we’re getting round £10/kg for our cheese, or £1/litre for the milk equal,” she stated.
“We’re getting extra for our cheese, however there’s extra price concerned in making, storing and packing all of it,” she stated.
“Like all people, the worth of energy and labour has gone up, so the additional worth doesn’t come free.”
Requested about her recommendation for farmers thinking about beginning exports, she stated: “First, you must get a reputation on this nation. You might want to resolve provide points and have packaging that works.
“You could have a product that individuals need to purchase, work out who it’s that may need to purchase it and determine the abroad markets.
“Then, it’s fascinated about the route, the way you’re going to distribute your product and guarantee you’re paid.”
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