Brexit in the dairy sector mainly affects Ireland - BackStop or not? Britain's self-sufficiency in the dairy sector has increased steadily in recent years. However, there are differences between the individual dairy products. GB's dairy industry is particularly closely interlinked between the Republic of Ireland and Northern Ireland . Dairy farms have grazing land on both sides of the border. 92% of the United Kingdom's milk / quark exports come from Northern Ireland, which is shipped across the border to Irish dairies. In return, processed dairy products come back again. A hard Brexit with high duties would bring a significant hindrance and increase in the price of goods traffic. Therefore, a so-called back stop is provided, which would put the two countries under the conditions of free trade in the EU Customs Union. This would largely maintain the current trading conditions. The sovereignty of GB, however, would be limited.This is a major reason for the Brexit. 94% of the imports come from EU countries. After Ireland, France supplies 18% and 16% respectively of milk and cheese to the United Kingdom. Germany contributes 16% and 14% to milk and cheese. Denmark only achieves 7% and 10%, respectively. Cheese specialties are imported from Italy . More than a third of imports are accounted for by cheese , approx. a quarter on buttermilk and yoghurt . GB's exports to the EU are relatively low, with the exception of deliveries to the Republic of Ireland. In the case of hard Brexit, export prices could rise by 40 to 80% depending on market conditions and product , as shown in the tariff table below.General export duties in the case of milk products
code | product | wage rates | Effective duty (in% of export price 2015 ) | Effect. Customs (% v. Exp.Prize 2017 ) |
04012099 | Milk and cream , not concentrated or sweetened: Fat content 3-6%, in immediate packing of> 2 liters | 21.8 € / 100 kg | 74% | 63% |
0406021 | Cheddar - (not grated or for processing ) | 167.1 € / 100 kg | 42% | 40% |
04012091 | Milk and cream not concentrated or sweetened: Fat content 3-6%, in immediate packings of <= 2 liters | 22,7 € / 100 kg | 39% | 42% |
04021019 | Milk and cream , not concentrated or sweetened in solid forms, unsweetened fat content <= 1.5%, immediate packings> 2.5kg | 118,8 € / 100 kg | 63% | 79% |
04051019 | Natural butter , fat content <= 85%, in packings> 1kg | 189,6 € / 100 kg | 63% | 41% |