UK free-trade agreement negotiations could yield better deal for Australian beef producers

Australian beef producers without European Union-accreditation could be granted access to the UK market if last-minute negotiations over the free-trade agreement between the two nations prove successful. Though widely hailed as a boon for Australian livestock producers, the FTA in its current form — set to take effect on June 1 — will only benefit EU-accredited beef producers. But Australian officials are in talks with their UK counterparts to waiver this requirement and allow Australian beef producers to instead use the nation’s stringent traceability system as a quality guarantee. Fewer than 4000 beef producers nationwide are currently EU-accredited according to figures from the Federal Department of Agriculture. Cattle Australia chief executive Luke Bowen told media last week Australian beef producers had historically been discouraged from gaining accreditation because of the lack of a premium for EU beef. “There are negotiations going on at the moment to look at other traceability systems which could satisfy the requirements of the UK market,” Mr Bowen said. “We hope this can happen.” Cattle Australia chair David Foote said the organisation, with help from Meat and Livestock Australia, was working through the UK Red Meat Industry Access Taskforce to ensure the deal “delivers further opportunities for Australian beef producers”. “Australia remains a world leader in producing high-quality, healthy, and sustainable beef, underpinned by our world-leading traceability systems to achieve our customers’ expectations,” Mr Foote said. “Cattle Australia is urging the UK government to recognise Australia’s highly developed industry systems in managing and tracking HGP (hormonal growth promotants) treatments in cattle. “This agreement will see much more Australian beef on the menu in the UK.” Australian beef entering the high value UK market has been subject to full tariffs and charges since the UK left the EU. In the first year, the FTA will allow Australian producers to export up to 35,000 tariff-free tonnes of beef into the UK — a huge increase on the less than 4000 tonne quota currently in place. The tariff-free quota will rise in equal annual instalments until it reaches 110,000 tonnes in year 10, followed by the lifting of tariffs altogether when the trade is fully liberalised in 2038. A volume safeguard provision will apply until the end of year 15, after which no safeguards will apply. Mr Foote said the FTA offered access to the UK market that Australian agricultural producers had not seen in generations. For Australian sheep producers, it will grant access to a tariff-free quota of 25,000 tonnes of sheepmeat in the first year. That figure will rise to 75,000 tonnes in 2028, with tariffs eliminated after ten years. Sheep Producers Australia chief executive Bonnie Skinner said the FTA would see Australia “well-placed” to provide counter-seasonal supply to the northern hemisphere. “Substantial transition quotas will allow improved access for Australian producers to provide high-quality Australian lamb to meet British customer demand,” she said. “The security and expansion of current markets is important for Australian sheep producers and creates ongoing certainty for the industry. “The agreement provides a fantastic opportunity for Australian producers (and) is of mutual benefit to both parties.”