Editorial | IDM A catalogue of serious consequences 9 2016 | international-dairy.com · 3 The Brexit raises more and more questions Roland Sossna Editor IDM International Dairy Magazine sossna@blmedien.de international-dairy.com There are a number of serious consequences that Great Britain’s exit from the European Union might cause. Now that we’ve had a few weeks to think it all over, it seems that it will be British dairy farmers who will be the biggest sufferers from the so-called Brexit. The EU will, of course, lose the third biggest milk producer country. But Brussels may also cease to send direct payments according to the Common Agricultural Policy to the British islands. Brussels, in addition, will not have to take care of British SMP and butter when the status of the markets might require an opening of the intervention system during the next downturn of the milk market cycle. On the other hand, if the UK wants to be able to supply dairy products and cheese to the Continent, it will have to fulfill all the endless lists of requirements the EU poses on such imports. And one more, where does the UK intend to source cheese, butter and other products it needs to satisfy domestic demand other than from the EU? These are only some of the consequences on greater scale. But there is more to the Brexit. What will happen to international companies that have interests, say investments, in the UK? Arla Foods for instance manufactures all butter and spreads it is selling in the UK from its Continental plants in Denmark, Sweden and Germany. Will Arla all of a sudden lose that market two years from now? And what about the Northern Ireland dairy businesses that have begun to establish direct ties with their southern colleagues in the Republic of Ireland? As it seems, the new border after the Brexit might become a tight one, cutting right through the Emerald Isle. IDM is sure that there are a zillion other issues raised by the Brexit for the food and dairy sectors. Politicians and offcials in the UK and the EU should review this catalogue of problems and questions thoroughly to minimise the damage, especially for the UK and Northern Irish dairy industries, Roland Sossna likes to recommend.
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