Brexit: What would be the consequences for agriculture?
Source: David - stock.adobe.com
Brexit: What would be the consequences for agriculture?
Brexit and German Agriculture. The Federal Information Centre Agriculture (BZL) discussed the issue with Dr Florian Freund of the Thünen Institute of Market Analysis in Braunschweig. In collaboration with Dr Martin Banse he has been researching possible Brexit scenarios and their effect on German agriculture for some years.
At the end of March the United Kingdom wants to leave the European Union (EU). It still remains unclear whether the British will go along with the Agreement negotiated with the EU, the so-called soft Brexit, or whether there will be a disorderly withdrawal from the EU – the hard Brexit.
The trade surplus in agricultural products will decrease significantly
″Our calculations show that in both cases Germany’s agricultural trade surplus with the United Kingdom would decrease significantly. In case of a soft Brexit the agricultural trade surplus would be reduced by about one fifth. A hard Brexit would even result in its halving″, says Freund.
The focus is on the pigmeat and poultrymeat sectors
According to the researchers the pigmeat and poultrymeat sectors will be particularly affected. The British currently source the bulk of their meat from Denmark and Germany. Demand might be reduced as imports go up in price due to Brexit. ″Some sectors have been seeking to obtain new customers for some time already and endeavour to intensify trade with existing partners in order to compensate possible loss in the business with the United Kingdom″, explains Freund.
For further repercussions that might ensue from Brexit for German and British agriculture, please see the interview at praxis-agrar.de: https://www.praxis-agrar.de/betrieb/recht/folgen-eines-brexits-fuer-die-landwirtschaft/
