In our July 2019 Newsflash we alerted our stakeholders of potentially significant disruption to EU market access for processed animal protein (PAP) and tallow in a No Deal scenario.
Since then we have been in frequent dialogue with DEFRA and other Gov UK representatives to understand the scale and potential wider impact of these issues and to investigate potential contingencies to mitigate the impact on renderers and the meat supply chain.
Last month we held a well-attended workshop with our meat industry stakeholders to explain the intricacies of the 3rd country export health certificate rules for these products, potential contingencies and estimated worst-case impacts on our EU exports.
An economic impact assessment of restricted EU markets for rendered products is being undertaken and we have shared the FABRA UK statistics with DEFRA and AHDB for independent scrutiny. AHDB are working with DEFRA to look at the wider impacts on the meat industry.
In the last week we have met with George Eustice MP, Minister of State at the Department for Environment, Food and Rural Affairs (Defra). Mr Eustice understands the importance of our industry to the meat supply chain and biosecurity and Gov UK has included our industry’s issues in their high priority issues list to address under No Deal.
We continue to look at the practical contingencies to prevent and minimise disruption to our operations and hope to be able to remain operational and maintain our service levels to the meat industry. However, lower rendered products revenue is still a concern and any deficit would need to be balanced somehow.
Depending on the Brexit outcome, this could mean changes to the collection and pricing strategies for animal by product raw material. The need for and severity of any price changes is dependent on the rendered product markets which are very fluid and on the potential level of support Gov UK is able to provide to the meat industry.
While these uncertain market conditions prevail FABRA UK may issue further bulletins and updates. Please also check our website (www.fabrauk.co.uk) for further updates.
If you would like to know more about this news or FABRA UK, please contact Nikki Robertson Tel: +44(0)7584 022909