British beef boost: US$290m deal with China follows the lifting of a 20-year ban
Forging new trade deals, such as this, are vital as Brexit looms and a no-deal scenario remains on the table
19 Jun 2019 --- A two-decade ban which prevented British beef exports to China has finally come to an end – and it could spell good fortune for UK meat suppliers looking for new trade deals as Brexit approaches. The move could be worth an estimated £230 million (US$290m) for British producers in the first five years alone and comes more than 20 years after the Chinese government imposed a ban on UK imports of beef in 1996, at a time when the BSE – or “mad cow” – crisis was devastating the UK beef industry.
The deal is hailed as a “milestone” moment for British producers and secures Chinese market access for UK beef exporters by the end of this year. It could help to unlock UK agriculture’s full potential. It is seen as a major step in forging new international trading relationships which are much needed as the countdown to Brexit continues and a no-deal scenario remains on the table.
Gaining market access in China is the result of “painstaking and collaborative work” by industry and the UK government’s Department for Environment, Food and Rural Affairs (DEFRA) which has spanned many years.
The timing is extremely significant as the UK heads towards October 31, the current Brexit deadline.
The beef deal is hailed as a “milestone” moment for British producers.
As the UK food industry has been reiterating for many months, a no-deal Brexit would have huge implications for businesses, supply, availability, logistics, price and much more as the sector is enormously susceptible to the trading challenges that this would present.
“As we leave the EU, we will continue to break down market access barriers to make it easier for UK businesses to trade across the world,” says International Trade Secretary Dr. Liam Fox.
“This is welcome progress for our world-leading British beef producers, who will soon be able to export their products to one of the world’s largest economies, supporting local jobs and bringing millions of pounds to the UK economy each year. This also marks the next step in realizing our global trading ambitions with British food,” he adds.
The announcement comes after China recently approved five British pork plants to export products to China, which will build on a market which is already worth £70 million (US$88m) per year.
China is currently the UK’s eighth largest export market for food and drink, with more than £610 million (US$765m) worth of products bought by Chinese consumers last year.
The UK-China Beef Protocol is the culmination of several years of site inspections and engagement between UK and Chinese government officials.
What caused the beef ban?
China’s ban was triggered by the BSE outbreak of the 1990s.
Bovine spongiform encephalopathy (BSE), commonly known as mad cow disease, is a neurodegenerative disease of cattle and led to significant losses in the UK beef industry at the time. From 1986 to 2015, more than 184,000 cattle were diagnosed, with the peak of new cases occurring in 1993. A few thousand additional cases have been reported in other regions of the world and it is believed that a few million cattle with the condition likely entered the food supply during the outbreak.
Other countries were also affected by the BSE outbreak and had their beef exports banned by China. France, Hungary, Denmark, Italy, Ireland, the US and Canada have all had their bans lifted, but bans remain in place in trading with Poland, Germany, Sweden, Portugal and Spain.
The UK’s food exports continue to increase, with food and drink exports worth more than £22 billion (US$27.6m) last year with products currently sold in 217 markets.
The UK Government also continues to encourage and support businesses, through its “Food is Great” campaign, as they consider launching into overseas markets or expanding their current global customer base.
Last week, FoodIngredientsFirst reported on how product substitution and repositioning, such as the use of a “Brand Britain” marketing approach will be key platforms for UK companies to survive and thrive in a post-Brexit environment.
By Gaynor Selby
