Over £500m of British beef exports ‘under threat’ ahead of EU deforestation law

More than £500m of British beef exports to the EU could be under threat due to government “inaction” ahead of the bloc’s crackdown on deforestation-linked goods, according to industry.

The impending EU Deforestation Regulation (EUDR), which will require businesses trading commodities such as beef, soy, coffee and cocoa with the bloc to provide substantial evidence their products did not come from illegally deforested land, is rolling out at the end of December.

But, according to the British Meat Processors Association (BMPA), the UK government has failed to help industry prepare for the strict new export requirements.

Ministers have yet to nominate a competent authority to enforce and ensure full compliance with the new regulation, the BMPA argued, as several other countries including big meat exporter Argentina have done.

“This can’t simply be a commercial, industry-level system”, the trade body said. “It has to have the backing and weight of a government behind it and currently they are the missing link in this chain.

“Without government involvement it won’t be acceptable to the EU and the UK would have to cease exporting beef overnight.”

Britain exported £578m worth of beef last year, as per Food & Drink Federation data. The vast majority of beef commodity exports (£520m) went to the EU in 2023, according to the AHDB.

While UK meat production may not raise the concerns the new European bill aims to address – namely, the illegal clearing of land for cattle raising – producers and traders will still have to produce extensive paperwork to be able to export to EU member states.

The sector is concerned that failure to comply with the bloc’s new regulations could threaten lucrative beef exports to the EU and create an open goal for competitor countries like New Zealand, Argentina and the US to step in and fill the demand gaps.

Questions still remain around which laws will apply to Northern Ireland, which since Brexit has effectively remained in the EU single market, largely abiding by its food safety and biosecurity rules in order to prevent a land border with its southern neighbour, the Republic of Ireland.

Any exceptions to that post-Brexit deal with the EU need to be agreed under the new Windsor Framework, which replaced the previous Northern Ireland Protocol.

And with the UK’s own anti-deforestation rules coming into place soon, as part of an amendment to the Environment Act, it is unclear which requirements will apply in NI.

With a looming EUDR deadline of 1 January 2025, senior meat sector figures have accused the government of “washing their hands of responsibility, suggesting instead that it’s up to the industry to deal with it”.

The BMPA argues that, were beef exports to the EU to slump, this would “immediately crash the price of UK livestock, putting many farmers out of business and causing long-term damage to Britain’s food security”.

This would in turn cause British meat prices in supermarkets to rise, it said.

Read more: The deforestation regulation clock is ticking for food and drink

BMPA’s CEO Nick Allen said: “We’ve seen presentations from competitor countries like Argentina who have created impressive, government-backed systems to comply with the new EU deforestation regulation.

“They’re now poised to step in from day one to supply fully compliant beef into the EU and will be more than willing to take Britain’s slice of the market.

“As a government keen on fostering growth, Labour must take this seriously.”

The government said it would communicate the relevant arrangements on the application of the EUDR in NI at the earliest possible opportunity.

Defra has also maintained that the UK does not need to name a competent authority to regulate compliance as that is a requirement for EU member states only.

But experts argue that the UK falls under that banner too because of Northern Ireland’s unique status in the EU’s single market.

”Neither Defra nor the Department for Business & Trade seem keen to pick up the baton,” said AHDB’s head of economics Sarah Baker.

“There is a concern that without clarity and guidance on the EUDR requirements, UK beef producers may find themselves unable to export cattle products to the EU,” she agreed, adding that the levels of awareness and preparedness amongst industry were low.

Read more: A fifth of UK businesses still not ready for EU’s strict anti-deforestation laws

Both AHDB and BMPA have written to food and farming minister Daniel Zeichner, urging Defra to lay out a framework based on existing UK traceability systems that helps producers navigate the upcoming compliance requirements.

They also asked British authorities to liaise with their EU counterparts to clarify the new regulations and communicate that to the industry.

Cattle is only one of the few affected commodities, in addition to soy, palm oil, cocoa, coffee, timber and rubber.

This will also mean that, for instance, UK-manufactured products containing soy that are headed to the EU need to be fully complaint by end of year.

Questions still remain around what exactly will be needed from farmers, producers and traders, with the EU Commission yet to unveil key details.

This has led to several agriculture ministers and trade associations across the bloc to ask for the end of year deadline to be postponed, allowing global supply chains time to prepare.

BMPA’s Allen added: “These new requirements are now part of EU law – whether or not they choose to delay the 1 January deadline, we will have to comply and we will need government to play its part.”