Australia reaches trade deal with UAE to boost agriculture exports

Australia has announced a significant trade deal with the United Arab Emirates (UAE) that will remove tariffs for about 99% of Australian products, resulting in savings of A$135 million ($91 million) in the first year.

The UAE is Australia’s largest trade and investment partner in the Middle East, with bilateral trade worth A$9.9 billion last year and two-way investment totalling A$20.6 billion.

Trade Minister Don Farrell highlighted that under this agreement, Australian exports are expected to increase by A$678 million per year. However, he emphasised that the deal means more for Australia than just numbers. The agreement includes a framework to boost investment by Abu Dhabi in critical minerals, and the mining industry will benefit from tariff cuts on alumina exports.

Australia’s top exports to the UAE include meat, dairy, oil seeds, seafood, steel, canola seeds, nuts, honey, coal, chickpeas, and lentils[1]. The deal is expected to become effective later this year.

References

Quality Meat Scotland launches marketing campaign

Quality Meat Scotland (QMS) has proudly launched its new marketing campaign, ‘When You Know, You Know’ developed with Edinburgh-based creative agency, Multiply.

It highlights to consumers that there is simply no match for the livestock born and reared in Scotland under the QMS whole of life, whole of supply chain quality assurance schemes.

Scotch Beef, Scotch Lamb, and Specially Selected Pork will take centre stage on television supported by outdoor, press, social media advertising and PR with messaging that is designed to educate consumers on the unique benefits of choosing quality assured red meat, taking them on a field to fork journey to fully understand the Scotch Difference.

Emma Heath, Director of Marketing at QMS, said: “The theme for the new campaign is to look behind the label and everything that Scotch stands for as this is ultimately at the heart of what we do and gives us a strong foundation to build on creatively over the coming years.

Our new campaign highlights that choosing Scotch Beef, Scotch Lamb, and Specially Selected Pork means opting for unmatched quality that comes from our world-class standards that were introduced around 30 years ago making them one of the first in the industry. We want to shine a spotlight on the tireless passion and expertise across the whole of the Scottish red meat supply chain.

“People want to feel confident in what they’re buying, and our campaign provides that peace of mind. Scotch Beef, Scotch Lamb, and Specially Selected Pork are more than labels— they represent trust, pride of provenance and perfection in taste. This campaign reinforces why there’s simply no substitute and where people have a choice, they understand the benefits of choosing Scotch.”

Graeme Clark, Creative Director at Multiply said: “It’s rare to get the chance to tell such an incredible and authentic story from start to finish. The experience of working on this campaign for Scotch Beef, Scotch Lamb and Specially Selected Pork has been nothing short of spectacular – the animals, people and environments we captured are stunning and so uniquely Scottish. The team at Multiply are immensely proud to have worked on this, and it stands out as a career highlight for me personally.”

QMS

QMS ‘Meat the Market’ Workshops for Farmers

Brazil asks EU to hold off on implementing deforestation law

BRASILIA, Sept 11 (Reuters) – Brazil on Wednesday asked the European Union not to implement regulations in its deforestation law at the end of the year as scheduled and asked for it to be revised to avoid hurting Brazilian exports.
In a letter to the European Commission seen by Reuters, the Brazilian government said the law banning the import of products linked to the destruction of the world’s forests could affect almost one third of Brazil’s exports to the EU.
The law passed in 2022 by the European Parliament was adopted in June last year, allowing 18 months for companies to adapt.
The law applies to soy, beef, palm oil, coffee, cocoa, rubber, wood and derivatives, including leather and furniture.
“Brazil is one of the main suppliers to the EU of most of the products covered by the legislation, which correspond to more than 30% of our exports to the community bloc,” the letter signed by the ministers of agriculture and foreign Affairs said.

Tönnies to buy Vion’s German Beef Operations

Vion Food Group has successfully brokered a commercial agreement with Tönnies Group for the acquisition of the majority of Vion’s German beef operations.

This proposed transaction is a direct outcome of the German portfolio review initiated in January 2024 and signifies a strategic pivot towards focusing on the Benelux region. Subject to approval by the relevant competition authorities, alongside customary endorsements and closing conditions, the deal is anticipated to be finalised in 2025.

In the wake of a thorough review of its German portfolio, and following the divestments of the Landshut and Vilshofen facilities, Vion has further advanced its restructuring initiatives concerning its German assets, which encompass slaughtering, deboning, and by-products beef activities in southern Germany.

Under the terms of the proposed transaction, Tönnies Group is set to acquire Vion’s beef operations in Buchloe, Crailsheim (inclusive of pork activities), and Waldkraiburg. The acquisition also extends to the Hilden deboning facility, the hide processing plants of BestHides located in Memmingen and Eching-Weixerau, as well as the majority of Vion’s central support operations in Germany.

These South German beef operations are celebrated for their high-quality output and robust demand both domestically and on the international stage. The acquisition by Tönnies Group aims to ensure the continued prosperity and expansion of these vital activities, while preserving established supply chains and customer relationships.

Vion Food Group will maintain its stake in the Furth im Wald beef facility in South Germany. The remaining German entities under Vion’s umbrella will continue to receive full support, with all commercial relationships proceeding uninterrupted.

“This anticipated transaction marks a pivotal moment in Vion’s strategic realignment. We pledged to secure the most capable partners to guarantee a thriving future for the divested businesses, and simultaneously, we committed to increasing investments in our retained operations. Today, we take another step towards fulfilling these commitments. We are confident that Tönnies Group will deliver the necessary support and focus for sustained growth and success,” asserts Ronald Lotgerink, CEO of Vion.

Vion

Irish Pig Trade & Prices w/e August 24th 2024

 Prices

Deadweight pig prices in Ireland are holding relatively stable after increasing strongly from a low of 190c/kg in mid-February until early August. The average price paid for grade E pig prices in Ireland for the w/e 24 August 2024 was 231c/kg excluding Vat. The current Irish price is 6c/kg higher than the corresponding week last year

Throughput

While throughput has improved in the last quarter demand continues to run ahead of supplies. Total throughput YTD is 2,102,474 which is marginally behind the corresponding period in 2023. Throughput for week ending 24 August 2024, was 65,787 a marginal increase from the previous week

The latest available data from the CSO shows that Irish exports of primary pigmeat products were valued at €243 million, 2% higher than the corresponding period in 2023. A recovery in pig supplies for processing and a slight improvement in carcase weights have contributed to a similar 2% increase in export volumes during H1.

Within the H1 exports, there were notable increases in the value of trade to the UK (+16% to €71 million), and EU markets (+25% to €59 million). Meanwhile, there were declines in the value of Irish pigmeat exports to Asian markets (-15% to €77 million) and Oceania (-37% to €16 million).

Bord Bia

 

Australian Cattle and Sheep Market Report w/e 30th August 2024

Cattle

The cattle market, although generally mixed, was still supported by a strong foundation this week. Yardings eased by 5,897 to 48,642 head, with year-to-date yardings 7% above current levels.

The Heavy Steer Indicator eased by 2¢ to 345¢/kg liveweight (lwt), and prices eased in NSW and Queensland while all other states experienced lifts. Yardings saw a lift of 133 head over the past week.

The Restocker Yearling Heifer Indicator lifted by 4¢ to 368¢/kg lwt. The highest prices were seen at Tamworth, Carcoar and Wagga which contributed to 13% of the indicator. At Wagga and Tamworth, increased interest for heifers is outpacing demand for steers in some cases. This increased demand for heifers for restocking or feedlots has pushed prices upwards.

Sheep

The sheep market has been generally positive except for the Mutton Indicator, which eased by 8¢. Both sheep and lamb yardings eased this week, totalling 13,237 head reduction in yardings.

The Trade Lamb Indicator lifted by 28¢ to 836¢/kg carcase weight (cwt), and prices lifted across most states except for WA. Yarding eased by 2,831 to 35,582 head. Forbes saw the highest trade lamb price at 873¢/kg cwt. However, most lambs at Forbes fell into the trade lamb categories with fewer heavy trade and heavy lambs available at market.

A lift of 45¢ was seen for the Restocker Lamb Indicator, totalling 632¢/kg cwt. Prices lifted in all states except NSW which eased by 19¢. Throughput in Wagga surged by 24,408 head, leading to 2.8 times more restocker lambs being sold. Despite this increase in supply, prices at Wagga lifted by 9¢. However, as the season progresses, lambs are trending lighter from both early weaning and the effects of a drier season.

Slaughter

Week ending 30 August

Cattle slaughter eased by 120 to 140,990 head. There were mixed results across the states, however small lifts were recorded in NSW, Queensland and WA. For the second week in a row Queensland achieved the largest weekly slaughter in four years at 75,201 head. Year-to-date, slaughter has lifted by 11% compared to 2023, indicating processing capacity strength.

Combined lamb and sheep slaughter lifted by 54,756 to 588,826 head. Sheep slaughter lifted by 38,094 to 180,753 head, with NSW seeing lifts of 25% and Victorian slaughter lifting by 26%. Lamb slaughter lifted by 16,662 to total 408,073 head. Lamb slaughter eased by 11,063 to 210,257 head in Victoria while SA experienced lifts in lamb slaughter by 24,434 head. Overall lamb slaughter has eased over August due to multiple processor shutdowns and fewer lambs available to market.

MLA

Australian farmers increasingly concerned about government policy

Australian Red Meat Exports Boom in UK since Free Trade Agreement

Isle of Man bans some EU imports to prevent ‘goat plague’

The Isle of Man has implemented a ban on importing certain sheep and goat products from the European Union to prevent the spread of the highly contagious infection known as “goat plague” or peste des petits ruminants (PPR).

The strict controls, which include postal imports of meat, cheese, and milk, aim to protect Manx animals from the virus that has killed hundreds of sheep and goats in mainland Europe in recent months. The virus does not affect humans.

The government’s chief veterinary officer, Amy Beckett, stated that an outbreak on the island could be “damaging” for the farming sector. Restrictions are already in place to prevent the importation of live sheep and goats from affected areas. Dr Beckett emphasized that the ban means people should not bring back sheep or goat products to the island from the affected EU countries, currently Romania and Greece. Residents visiting EU countries not affected by PPR must also not carry sheep or goat products back to the Isle of Man “unless commercially produced and packaged to EU standards.”

The measures are designed to prevent an outbreak on the island, which could lead to animal suffering and harm the farming industry. Environment, Food and Agriculture Minister Clare Barber added, “The strict measures have been introduced to help limit the spread of the disease and will remain in place until PPR no longer presents a risk to Manx sheep and goat populations.”

Smaller Abattoir Fund Grant Scheme: Deadline Approaching

Smaller Abattoir Fund Grant Scheme

Closes Monday 30th September

The Scheme

The SAF grant scheme closes soon and we understand that many eligible abattoirs have yet to make an application. The scheme represents an excellent opportunity and can fund many types of capital investment at a 50% rate of grant and a maximum grant of £75,000. It is non-competitive and all eligible applications will be approved and funded.

Eligibility

The scheme is only open to applicants in England who are currently operational and have been invited to apply by the RPA. Eligibility is based on annual throughput of less than 10,000 livestock units (red meat) or 500,000 poultry birds in the reference year of 2022.

The abattoir must not carry out or intend to carry out non-stun slaughter (for a five year period post the grant agreement).

Application Process

The application requires business details, project details, quotes and, where applicable, evidence of planning consent of the businesses match funding.

Assistance

Westley have assisted a number of members with their applications so far and are available to help any others that require support. This can be in three ways:

  1. Advising on the application requirements, drafting the application forms, collating the accompanying documents (to be provided by the business) and preparing the application so the applicant simply has to just review and forward an email to submit the application. We are offering this for a fixed fee of £350.
  2.  Obtaining quotes for items of equipment or, perhaps, obtaining second and third quotes where you only have one. This would be chargeable at an hourly rate.
  3. We can also provide a full project management service for any construction projects (e.g. new chillers, extensions etc.). This starts with the project concept and moves through feasibility, design, tendering, contracting, construction and handover. We would quote for this on a project specific basis.

Please contact us if you need assistance:

Westley Consulting 01630 672400 or [email protected]

Alastair Beacon on 07968 585101 or [email protected]

Rick Patterson on 07852 777668 or [email protected]

Australian Cattle and Sheep Market Report w/e 23rd August 2024

Cattle market

The cattle market was mixed this week, with increases in the Heavy Steer and Processor Cow indicators. Yardings eased for most indicators except for the Feeder Steer and Restocker Yearling Steer, which lifted by 3,046 to 53,855 head.

The Feeder Steer Indicator eased by 9¢ to 681¢/kg liveweight (lwt), with yardings lifting by 37%. At Gunnedah, heavy feeder steers experienced a firm market, but due to quality-related changes, prices were mixed. At Wagga, heavy feeder steers were scarce, causing fewer buyers to bid strongly.

The Restocker Yearling Steer Indicator eased by 10¢ to 365¢/kg lwt. Positive pricing in NSW was supported by wet weather. At Tamworth, prices lifted by 32¢, motivated by strong restocker demand as we head into spring. In Queensland, due to mixed quality and conditions, prices eased by 14¢.

Sheep market

The sheep market has been generally positive this week for all indicators. The ease in yardings was largely driven by a reduction in lamb yardings by 9,145 head.

The Light Lamb Indicator lifted by 19¢ to 662¢/kg carcase weight (cwt), with yardings remaining relatively stable. Prices in most states eased, however NSW prices lifted by 33¢. Supply is tight in key saleyards as some lambs struggled to meet a fat score 2, making them cheaper compared to heavier weights.

The Restocker Lamb Indicator eased by 5¢ to 585¢/kg cwt, with mixed prices across states. A lift of 40¢ to 753¢/kg cwt occurred in NSW, while Victoria eased 54¢ to 444¢/kg cwt. In Victoria, the quality of supply has declined, with more secondary plainer lambs entering the market, resulting in throughput halving.

Slaughter

Week ending 23 August

Cattle slaughter lifted by 7,087 to 141,110 head. Throughout most states except Queensland, there was an ease in slaughter. Queensland slaughter lifted by 14% to 74,974 head, marking the largest weekly Queensland slaughter in the last four years. Weekly slaughter in 2024 continues to track 16% above 2023 slaughter indicating strong processing capacity.

Sheep and lamb slaughter eased by 33,771 to 534,070 head, notably from reductions in lamb slaughter from 21,741 to 391,411 head. This ease in lamb slaughter has been due to multiple processor shutdowns in SA. NSW lamb slaughter eased by 3,308 head a 16% decline compared to a year ago, while sheep slaughter eased by 12,030 to 142,659 head. Victorian slaughter eased by 16,305 head, a 31% drop from last week. There were moderate lifts in slaughter seen in NSW, Tasmania and WA.

MLA

 

UK to join CPTPP by 15 December

The UK has secured the sixth and final ratification required to trigger our accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) before the end of this year.

CPTPP is a free trade area spanning five continents and almost 600 million people once the UK joins. Following Peru’s ratification of our deal to join the bloc, the agreement will now officially enter into force by 15 December 2024.

More than 99% of current UK goods exports to CPTPP members will be tariff-free once the deal enters into effect, helping businesses export more to CPTPP markets and contributing to the government’s priority of driving economic growth. By 2040, the agreement could boost the UK economy by around £2 billion annually.

Before Peru, five other CPTPP members ratified the terms of the UK’s accession: Japan, Singapore, Chile, New Zealand and Vietnam. This means the agreement will come into force with those members by 15 December, and subsequently with other members as they ratify. We continue to work closely with the remaining member countries who are in the process of ratifying the deal.

As the first country to accede to this agreement the UK will be well positioned to shape its future development, from influencing the development of the CPTPP rulebook to championing the group’s expansion to new economies.

Gov.uk

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