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UK cos offsetting losses in event of no-deal exit from Europe at Gulfood
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Wednesday, 20 February, 2019, 16 : 00 PM [IST]
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Dubai
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Several British food and beverage producers from multiple sectors are leveraging Gulfood 2019, currently underway at Dubai World Trade Centre (DWTC), to offset potential business losses in the event of a no-deal exit from Europe. Meanwhile, the governments of the United Kingdom and several European Union (EU) member nations are attempting to navigate the complex impasse over Brexit.
With over 79 British companies at the event, which concludes on February 21, the industry-wide British collective comprises the top-end of large-scale meat and dairy producers, right down to a plant-based meat alternative start-up.
The collective’s universal objective is to explore new deals in the Middle-East, Africa and Asia to counter, at least partially, any potential revenue falls should a no-deal Brexit trigger tariff hikes on their exports to mainland Europe.
If the UK exits the EU with a no-deal Brexit on March 29, it will automatically fall back on World Trade Organisation (WTO) rules. Consequently, British food producers that continue exporting their products to EU member countries after Brexit will face tariff hikes.
According to recent reports and Gulfood exhibitors, British meat and dairy exporters eyeing continued exports to Europe face potential tariff increases northwards of 35 per cent.
Amid uncertainty surrounding the specifics of tariff hikes for commodity and specialty food products, Gulfood provides reasons for optimism. The world’s largest annual food and beverage trade showis expected to attract over 98,000 industry professionals for its 24th outing – and the multi-region business potential is massive.
“We are throwing the net out as widely as possible,” said Henry Openshaw, export director, Grandma Singletons – a fifth-generation, family-run cheesemaker based in the north-west of England.
“If we lose our European business overnight, we will need to find a lot of new customers very quickly, and that’s where Gulfood comes in,” he added.
“As a small, family-run business, we cannot be flying all around the world because it is simply not economical. Gulfood is a great show for attracting a wide spectrum of people and we have had really positive conversations with buyers from Ukraine, Pakistan and across the Middle-East,” Openshaw said
As the UK’s exit from the EU draws nearer, Openshaw revealed Grandma Singletons was one of hundreds of British companies exploring options beyond the European bloc at Gulfood.
“It is impossible to give an intelligent view on post-Brexit, because no one knows what is coming down the road. It is still unclear what impact we are looking at, because no one has written down any regulations yet, and without visibility on tariffs, it is impossible to understand the sales implications,” he added.
With Britain long-established as the world’s third largest producer and exporter of sheep meat, Phil Hadley, international market development director, Agriculture and Horticulture Development Board (AHDB), a levy organisation funded by farmers, growers and other entities across the supply chain, is optimistic Gulfood can ease the strain of Brexit.
“There is a huge opportunity in the regional market, and Gulfood is the platform to embrace that opportunity,” he added, as the AHDB rallies around 12 British meat producers at Gulfood.
“Gulfood is even more pertinent for us this year, because Britain is a volume exporter of sheep meat, and most of that volume has historically gone to the European marketplace,” Hadley said.
“We have been more focussed on growing our business in key international markets, but it has additional relevance this year because of potential trading difficulties with Europe post-Brexit. We will target markets that are looking for specific products and will pay a premium price for them,” he added.
With of the permutations of a no-deal Brexit casting a cloud of uncertainty over the British food industry, Jonathan Eckley, head, Asia-Pacific export, AHDB, agreed that Gulfood – and the stable access it provides to emerging markets - now carried increased global significance for British food producers.
“Gulfood is an even more important show now, because it goes beyond the Middle-East and is a global event. That is why we have to tap into it. Some of my exporters come to the show because the logistical connections in Dubai mean we can see people from South America, China, Africa, Hong Kong, etc. Everyone is here,” he added.
Everyone also includes a British-born opponent to the traditional meat industry - The Meatless Farm Company, a plant-based meat alternatives company, which has signed a listing agreement with the UAE-based supermarket chain, Spinney’s.
“No one knows what is going to happen on tariffs, everyone is hoping a Brexit agreement will be struck,” said Robert Woodall, chief executive officer, Meatless Farm Co.
“The uncertainty doesn’t help, but Gulfood is an opportunity to offset that, do business outside of the EU and grow our business in a very important region. We are using Gulfood to tap into the Middle-East and Asia-Pacific,” he added.
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