The Grocer – 20 July 2019

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Get the full story at thegrocer.co.uk 20 July 2019 | The Grocer | 51

Six of one and half a dozen

of the other. That’s the

impact Brexit will have on

the egg industry, if its major

players are to be believed.

While some fear a

no-deal Brexit could

result in a rise in imports

of powdered egg and egg

products from battery hens,

others see Brexit as a key

opportunity to push the

credentials of British eggs.

“Brexit offers retailers

a fantastic opportunity

to reinforce their

commitment to British food

products, show support

for domestic farming and

give consumers what they

want,” says British Egg

Industry Council chairman

Andrew Joret.

According to the council’s

figures, retail sales of shell

eggs continue to rise. They

were up around 2% in the

first quarter of 2019, on the

back of 13 consecutive years

of growth. The British Egg

Industry Council stresses

that growth is particularly

apparent among British

eggs, which rose 5% on

the previous year, while

imports of shell eggs and

egg products fell.

“The UK industry

is growing more self-

sufficient, with the

flock having increased

significantly in recent years

to meet rising demand for

British and growing egg

consumption,” Joret says.

But there are undeniable

threats. While the

government has stipulated

that imported meat will

be subject to some tariffs

in the event of a no-deal

Brexit, it hasn’t done the

same for eggs and egg

products. That means far

cheaper imported eggs

could start arriving into the

UK market.

Farm animal welfare

organisation Compassion

in World Farming fears this

may lead to powdered eggs

and egg products being

imported from countries

that have lower welfare

standards.

“We urge the government

in the event of a no-deal

Brexit to place tariffs on

imported eggs, otherwise

egg products from battery

hens could flood into the

UK, undermining British

farmers,” says chief policy

advisor Peter Stevenson.

Yet that doesn’t mean

shoppers will necessarily

buy into these products.

Research by British Lion

earlier this year revealed

more than half of UK

shoppers want to know

from where the eggs in

their food products are

sourced. It also found 83%

of consumers strongly

associate the Lion mark

with British sourcing and a

guarantee of quality.

So in this case, British

eggs may still manage to

land sunny side up.

Will Brexit

aid or hinder

the UK egg

industry?

• predominantly Brazil and Thailand. That
  could change under a no-deal Brexit.
  The government has stipulated the UK
  would still impose tariffs on chicken imports,
  but at a lower rate than is currently charged
  under the EU’s WTO agenda. And a cer-
  tain volume of imported chicken would be
  allowed through tariff-free.
  That could pave the way for countries like
  Brazil and Thailand, which have relatively
  low production costs, to increase their share of
  UK imports. And as British chicken becomes
  pricier, they could even start encroaching on
  domestic sales. “My concern with a no-deal is
  that these countries start putting in products
  that we just can’t compete with on price,” says
  BPC CEO Richard Griffiths.

Setting the standards

Currently, any countries exporting to the UK

must meet EU equivalency on food safety and

hygiene standards. But the latest exposé con-

cerning Brazilian chicken exports infected

with salmonella reaching UK shores suggests

those standards aren’t always upheld. And

a no-deal Brexit would leave the UK free to

relax standards in the pursuit of trade agree-

ments with countries like the US – meaning

chlorinated chicken could end up on shelves.

Which is a source of concern for animal

welfare organisation Compassion in World

Farming. “If the 25% rise in price is realised,

such a big increase in costs could lead to an

increase of imports from countries with lower

animal welfare and food safety standards,”

says senior policy manager James West. “This

could result in poorer consumers having to

‘make do’ with low quality imports.”

So far, the government has insisted it won’t

relax UK food standards after Brexit. But with

Trump warning agriculture would have to

be up for grabs as part of any trade deal with

the US, there is no telling what will happen.

Of course, even if lower-quality imports

do make their way into the country, that

doesn’t mean they will sell. Research by

Harris Interactive for The Grocer in 2017 sug-

gested over 60% of Brits were worried about

chlorinated chicken, and only 15% would be

convinced to buy it because it was cheaper.

Given those attitudes, supermarkets might

also be reluctant to allow chlorinated chicken

on to their shelves. “A lot of the retailers have

an all-British policy anyway and I don’t see

why they would want food hygiene standards

going backwards,” says Cranswick’s Brisby.

If Brits aren’t prepared to lower their stand-

ards, it may simply be a case of cutting back.

Moy Park’s Winstanley believes chicken’s

“near-universal appeal” means it is unlikely

consumers will cut it out altogether. Still, you

only need to look at the performance of turkey

and duck (see left) to see the impact of price

on volumes. So the era of 26 whole chickens

per household might just be over.