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AHDB: UK-US trade deal could be good news for British beef sector
AHDB: UK-US trade deal could be good news for British beef sector

Agriland

time19-05-2025

  • Business
  • Agriland

AHDB: UK-US trade deal could be good news for British beef sector

New trade agreements agreed between the UK and the US could see increased quantities of British beef heading across the Atlantic. Agricultural and Horticultural Development Board (AHDB) analysts have identified the key opportunities and threats associated with the new UK-US Comprehensive Prosperity Deal. According to the AHDB, on the upside, the UK will be able to export up to 13,000t of beef to the US, tariff-free, following changes to an existing tariff rate quota (TRQ). The US has a TRQ for beef imports, within which there are country-specific quotas for Australia, New Zealand, Argentina, and Uruguay. British beef The UK, along with Brazil, has access to the US TRQ under the 'Other Countries' allocation, which is 65,005t. In practical terms, however, it has been challenging for the UK to make use of this TRQ for British beef for as Brazil often uses the entire allocation. In 2024, Brazil had made use of the 'Other Countries' allocation by March 28 (it opened on January 1, 2024). This year, the 'Other Countries' allocation was spent in just 17 days after opening at the start of the calendar year, the AHDB said. The proximity of Brazil to the US has also put the UK at a disadvantage in this respect, according to the board. UK beef exporters would be wary of risking sending shipments of beef across the Atlantic only to find upon arrival that the quota allocation has been used up and they would face full tariff rates for British beef to cross the US border. The new UK-US trade deal removes this risk, as the UK would have its own TRQ allocation. But this will not all be one-way traffic. Currently, the US has a 1,000t quota for exporting beef to the UK, which is subject to a 20% tariff. Under the prosperity deal, the 20% tariff will be removed and the US will have a preferential beef TRQ of 13,000t. However, US beef imports will have to meet UK food standards, so the Westminster government's red line on this aspect remains intact. While the quantity of beef imports from the US matches that of beef exports from the UK, there are concerns over the value of imported US beef. Imports of high value, premium cuts – such as strip loins – could potentially have a considerable impact on the UK domestic market. The British Meat Processors Association (BMPA) estimates that the UK produces around 3,900t of strip loins which is just under a third of the beef TRQ for the US. Northern Ireland is the best-placed region in the UK to avail of new British beef export opportunities to the US. This is due to Northern Ireland's focus on grass-based beef production systems, which differentiate from US systems. Adding to this is the fact that the deal comes as cattle prices have already reached record highs.

Scotch whisky sector welcomes ‘transformational' UK-India trade deal
Scotch whisky sector welcomes ‘transformational' UK-India trade deal

Agriland

time13-05-2025

  • Business
  • Agriland

Scotch whisky sector welcomes ‘transformational' UK-India trade deal

The Scotch Whisky Association has welcomed what it regards as the 'transformational' trade deal confirmed between the UK and India. Mark Kent, chief executive of the association said that the free trade agreement is a once-in-a-generation deal and a landmark moment for Scotch whisky's access to the world's largest whisky market. Kent said: 'The reduction of the current 150% tariff on Scotch whisky will be transformational for the industry. 'The deal has the potential to increase Scotch whisky exports to India by £1bn over the next five years and create 1,200 jobs across the UK.' Meanwhile, the Agricultural and Horticultural Development Board (AHDB) is pointing out that, for some time, the narrative around UK malting barley demand has been somewhat lacklustre. The trend of fewer younger people drinking has capped growth in usage by the brewing, malting, and distilling (BMD) sector. Demand for barley Human and industrial (H&I) usage (mainly made up of BMD demand) of barley in 2024/25 is expected to fall for the second consecutive year, according to the most recent UK cereal supply and demand estimates. At 1.782Mt, barley H&I usage this season is 7% down year-on-year and 4% on the previous five-year average. AHDB analysts also point out that while it is likely that US President Donald Trump's tariffs may impact UK whisky trade, the new deal with India has the potential to outweigh any possible drop in demand from the US. The UK-India trade deal also has the potential to bolster UK malting demand at a time when trends are pointing to a reduced domestic demand. Figures produced by AHDB indicate a total UK barley availability figure of 8.484Mt in 2024/25. This is up 50Kt year-on-year. The estimate of full season barley imports remains at 175Kt, down 26Kt year-on-year but well above the five-year average. From July 2024 to January 2025, the UK imported 124Kt of barley, with the pace expected to slow throughout the remainder of the season. H&I barley usage is estimated at 1.782 Mt, down 56Kt from January's estimate and 128kt lower on the year. The decline year-on year and from January is driven by sluggish BMD demand, which can be partly attributed to the increase in the cost of living. At 4.374Mt, usage of barley in animal feed is relatively unchanged from the previous estimate, but 189Kt higher than in 2023/24. Due to its relative availability and competitive price to wheat this season, barley is featuring in compound feed rations at a higher rate in 2024/25. However, the increase is largely due to a rise in fed-on-farm usage, again, due to its price relative to wheat and pressure on malting barley premiums.

AHDB publishes latest crop development report
AHDB publishes latest crop development report

Agriland

time07-05-2025

  • Business
  • Agriland

AHDB publishes latest crop development report

The Agricultural and Horticultural Development Board (AHDB) has just published its latest crop development report for the UK and it makes pretty good reading for growers. This has been one of the best recent years for spring planting; drilling of spring wheat, barley, and oats was completed during March and April. However, challenges have been noted with spring oilseed rape drilling, and areas not yet planted are likely to be switched to other crops. Crop development report Overall, disease pressure for all crops remains low. However, the dry conditions are beginning to affect crop development. Some spring barley and spring oat crops also needed to be re-drilled in some areas. Meanwhile, winter oilseed rape has been replaced with spring linseed in some areas of severe pigeon damage. From March to early April, conditions were dry, with UK average rainfall below the long-term average. Eastern England had just 6mm of rain in March, making it extremely dry. April rain By mid-April, rainfall returned, although there were substantial regional differences with the south-west experiencing higher levels, while the west midlands saw comparatively little. Prior to the mid-April rainfall, crop growth had stalled. However, since the rainfall, crops that received rain have begun to develop, and some winter barley is now well ahead of its usual growth stage. In the west midlands, following 10-20mm of rainfall, nitrogen is now being taken up and crops are showing signs of recovery. In the far north of north-east England, conditions remain very dry with no recent rainfall and crops are showing signs of stress. Meanwhile, in the east midlands, barley has been irrigated where water resources are available. Parts of Scotland also received less than 10mm in April. It is also worth noting that the withdrawal of the Sustainable Farming Incentive (SFI) in England to new applicants has led to an increase in the retention of very poor crops, according to the AHDB. These crops would otherwise have been taken off production and the land entered into the scheme. In contrast, tillage farmers across the island of Ireland have enjoyed a favourable spring so far, with approximately 60mm of rainfall recorded during the second fortnight of April. Disease levels within Irish crops remain low. However, the growing threat of yellow rust in many parts of the island is giving considerable cause for concern, as is the first confirmation of glyphosate resistance within an Italian ryegrass population.

Forage maize – yields of 50t/ha achievable
Forage maize – yields of 50t/ha achievable

Agriland

time29-04-2025

  • General
  • Agriland

Forage maize – yields of 50t/ha achievable

According to the Potash Development Association (PDA) forage maize crops can deliver yields of up to 50t/ha on a fresh weight basis within four months. But making this happens requires that crops get off to the best possible start. Phosphorus (P) is required particularly by the growing tips of the plant, hence its importance for root growth. Any shortage, especially in the very early stages, reduces root growth and nutrient uptake and this can adversely affect the growth of the crop for the rest of the season. Typical phosphate removal is 1.4 kg P 2 O 5 /t fresh crop, that is 55 kg/ha P 2 O 5 for an average 40 t/ha forage crop. Potash Potassium (K) has several diverse roles in plants. It plays an important role in regulating the water content of the plant and with an adequate supply of K, plants can survive drought stress more easily. This key nutrient also plays a major role in maintaining the turgor (i.e. rigidity) of plant tissue. Leaves need to be turgid to remain fully extended to maximise the surface exposed to sunlight that provides the energy to convert carbon dioxide (CO2) in the atmosphere to sugars in the leaves. Plants well supplied with K also seem to be less susceptible to fungal and pest attacks. Potassium is the nutrient required in the greatest amount by maize. An average 40 t/ha crop takes up around 360kg/ha potassium oxide (K 2 O) by early August. The demand for potash is particularly large in the period of rapid growth and the crop needs to take up about 8kg/ha potassium oxide per day. The soil must be able to supply both the total demand of 360kg/ha and the daily requirement of 8kg/ha without any hindrance. This requires an adequate level of readily plant available soil potassium. Maize grown for grain will have a much lower offtake than silage, due to the timing of the removal, and the amount of material that is removed from the field. The offtakes for grain maize will be similar to those for cereal grain removals found in the Agricultural and Horticultural Development Board (AHDB) Nutrient Management Guide. Magnesium for maize Magnesium (Mg) is an essential element in chlorophyll and hence for photosynthesis. Crop removal is 40kg/ha MgO. The total requirement (to be supplied from manure and fertiliser) should be related to Mg level in the soil and additional Mg is only justified at soil Index 0 when 50-100kg MgO/ha should be applied every 3-4 years. If both potash and magnesium soil levels are below the optimum, then apply the larger amount (100kg MgO/ha). Sulphur Sulphur (S) is a constituent of protein together with nitrogen and the supplies of these nutrients in plants are highly inter-related. Studies have shown that one nutrient will accumulate in plants when the other is deficient, and when this deficiency is corrected the accumulated nutrient is then used in protein synthesis. Therefore, a shortage in the availability of sulphur will reduce the efficiency of nitrogen use. Sulphur deficiencies are possible in areas where the soil sulphur level is below optimum. Sulphur is applied in animal manures. However, much of this is unavailable.

Global grain markets remain under pressure
Global grain markets remain under pressure

Agriland

time28-04-2025

  • Business
  • Agriland

Global grain markets remain under pressure

The Agricultural and Horticultural Development Board (AHDB) is reporting that global grain markets remained under pressure over recent days. Both May-25 Chicago wheat and Paris milling wheat futures were down 3.6% and 0.8% respectively for the seven-day period ending Thursday, April 24. In addition, movement in global markets has contributed to a fall in UK grain prices, with May-25 feed wheat futures down 5.7% over the same period. Earlier this week, the European Commission released its April 2025 crop monitoring report. This has estimated yields of total wheat, total barley, rye, triticale, and rape and turnip rape, all increasing or remained unchanged from last month's estimates. Grain markets According to AHDB analysts, the report has added some bearish sentiment to European grain prices. However, with the drier conditions as of late and delays to spring planting in some areas, the European Commission has subsequently revised down its EU wheat production forecast for harvest 2025 to 126.3Mt, compared to 126.5Mt a month ago. But, in tandem with this, the commission also increased its stocks outlook, with more supplies expected to be left over from this season that initially had been anticipated. Meanwhile, the FranceAgriMer agency has released its latest crop condition scores, rating 74% of the country's crop in good or excellent condition by April 21. This is down from 75% a week earlier on the back of dry conditions, but still well above a score of 63% at the same point last year. Maize plantings are also progressing ahead of the usual rate, now estimated to be 50% complete, compared to 39% a week earlier, and a five-year average of 42%. However, it is being reported that Ukrainian farmers had planted just 2.0Mha of grain by 24 April, back 17% from the same point last year. The reason for this is reportedly snow across most regions of the country, and unusually cold weather at the beginning of April delaying progress. In addition, currency fluctuations over the last few weeks have continued to impact on the relationship between UK, European and US markets. Since the start of the month, the euro has strengthened by 2% and 5% against the British pound sterling and US dollar respectively, leading to greater pressure on Paris futures. However, the past week has seen some stabilisation, with the euro weakening over the last couple of days. But all of this could change again during the period ahead.

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