The potential of a UK exit from the European Union could have a very significant impact on the Irish meat processing sector, according to Meat Industry Ireland’s Philip Carroll.
The Chairman of MII (the association representing sheep and beef factories), said a potential Brexit could give rise to high levels of uncertainty over the coming years for Ireland’s €2 billion export meat sector.
“That uncertainty has already led to a substantial weakening of Sterling against the Euro in recent months, bringing additional competitive pressures on Irish meat exports to the UK,” he said.
However, Carroll added that the decision in upcoming referendum is clearly a matter for UK citizens.
“Nonetheless, it is important, as major trading partners and near neighbours, that we highlight concerns in relation to the potential impact of a Brexit on trade flows in both directions,”
He said that the outcome of the vote is of great importance, as the UK accounts for over 50% of Irish beef exports and significant quantities of pork, sheepmeat and poultry.
We remain hopeful that the UK will remain in the EU.
The Head of MII said there are many negative implications of a Brexit, ranging from potential increased cost of doing business and day-to-day Customs and certification implications.
Another concern he highlighted was the UK’s ability to conclude bilateral trade deals with other international countries, which could potentially undermine the competitive position of Irish meat exports and jeopardise future market opportunities in the UK.
“While we believe that the sheer scale and importance of the trade flows in meat, our traditional trading links and the strong business-to-business relationships that exist, will ensure that trade continues,” he said.
However, Carroll also said that one of the more immediate implications is the current level of uncertainty that has caused a weakening of Sterling.
Worryingly, Sterling could weaken even further were the vote to leave carried, adding to the level of uncertainty while the future terms of the UK relationship with the EU is finally agreed.