The meat industry in Denmark is preparing for a no-deal Brexit
Denmark must look for new trade alliances as the departure of Great Britain from the block is likely to reach the point of no-deal between London and Brussels. These are some of the wishes of the large Danish food companies, according to a new report from the Danish Ministry of the Environment and Food.
In case of no-deal Brexit, pork exports to British market can bear a 25% duty, according to the report. In the worst case scenario, the Danish food industry and the related industries can expect a decline in exports of goods of about DKK 17 billion (€ 2.2 billion).
A survey was prepared by Copenhagen Economics and ten of the largest Danish food companies, which account for 80 per cent of Denmark's total food exports to the UK, are asked to point to alternative markets and wishes to the authorities.
"Companies want new trade agreements and promotion in attractive markets, and I understand that well. I will continue the efforts the government has made to open new markets and open the eyes of the outside world to the good Danish food. We have done this, among other things, through a large number of export promotions, and I will continue to do so. We will use the report to plan how we will prioritize our efforts in the future.
Regardless of the outcome of Brexit, the export of food to the UK will require changed work procedures for companies. Therefore, the Danish Veterinary and Food Administration is also hiring more people to issue export certificates, so that bacon, butter and other products still find their way across the North Sea", said Minister Jakob Ellemann-Jensen in a press release.
UK imports 24% of the food consumed in the Kingdom and the EU covers 71% of that volume.
Danish export of food to the UK, 2017 consists of:
• Dairy products - DKK 3.7 billion (€495.7 million)
• Pigmeat - DKK 3.4 billion (€455.5 million)
• Seafood - DKK 1.5 billion (€200 million)
• Enzymes - DKK 212 million (€28.4 million)
• Poultry meat - DKK 129 million (€17.2 million)
• Beef - DKK 106 million (€14.2 million)
• Other (biscuits, bread, drinks, cereals, vegetables, eggs, sugar etc.) - DKK 2.3 billion (€308 million).
Countries such as China, Hong Kong and Japan for dairy products and South Korea and Australia for pork can replace the volumes sent to the UK but there are limitations due to transport time for fresh goods, added Minister Ellemann-Jensen.
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