PGI Status seen as vital going forward

SIAL Paris is the second largest food fair in the world (Anuga in Germany is the largest) and it is seen as a key arena for showcasing the British offering.  Held on October 16-20, it also provided one of the best opportunities to date to gauge post -referendum reaction in Europe and further afield 

Quality Meat Scotland, the levy raising promotion body, was in Paris not only to nurture its export markets but also to safeguard the Protected Geographical Indicator (PGI) status of the cherished brands Scotch Beef PGI and Scotch Lamb PGI. 

PGIs guarantee quality assurance, provenance and welfare and are seen as key to underpinning the brands. 

QMS chairman Jim McLaren maintains there is no reason to believe the PGI status of Scotch Beef and Scotch Lamb would be changed post-Brexit. 

“There are numerous examples of non-EU member countries with products which benefit from Protected Geographical Indication (PGI) status - from Colombian coffee to Indian tea.

“We see no reason why Scotch Beef PGI and Scotch Lamb PGI, which were among the first meats in Europe to be awarded PGI status, should not continue to benefit from PGI status as long as the necessary production criteria are in place. 

“The crucial point revolves around protection of these PGI's within the UK in preparation for Brexit and we have received assurances from Westminster to that effect." 

Welsh red meat promotion body Hybu Cig Cymru (HCC) is giving equal priority to retaining PGI status.

Welsh Lamb and Welsh Beef were granted Protected Geographical Indication (PGI) status by the European Commission in 2003 and 2002 respectively. 

A spokesperson said: “HCC considers the status of PGI to be of enormous economic importance to the Welsh red meat industry. It is widely recognised across the EU and further afield and has been instrumental in granting access to new export markets 

“The process for ensuring that Welsh Lamb and Welsh Beef retain the PGI status is currently unclear, however, the European Commission’s PGI scheme is open to non-EU products.” 

New legislation which would ensure the continued recognition of Protected Food Names is sought  and HCC and the Welsh red meat industry intend to pursue the matter further with the PFN Association, the Welsh and the UK Government.

Market sentiment at SIAL – Brexit  “casting an unwelcome shadow” says Scots meat leader.

Jim McLaren, chairman of Quality Meat Scotland  said that there was no doubt trading conditions in overseas markets have become increasingly tough, despite some currency movements in the UK’s favour. 

“France remains our biggest market for lamb but consumption in France has been under pressure for some time now and over the past six months exports to France have been down year-on-year. 

“This cooling of demand is having an effect, not only on UK exports to France but also on exports to France from New Zealand and Ireland which have eased back,” he added. 

UK exports to Germany, and some other northern European countries, have shown some strengthening over the past six months, but the volumes involved are not significant, compared with the decreased demand from France. 

Looking at the impact of Brexit on overseas trade, Mr McLaren described it as having a push-pull effect on the market. 

“On the one hand, the weakness of Sterling is creating opportunities for us at home and abroad. 

“In terms of lamb exports this currency situation is making the UK extremely competitive on the European market. However being price-competitive does not alone guarantee a market if demand is weak,” Mr McLaren observed. 

“In the beef sector, the current exchange rate is making beef imports to the UK less attractive and as a result of increased home demand we are seeing ‘back-filling’ meaning there is less product available for export,” he said. 

However, overall, he said, the Brexit impact – and particularly concerns about long-term currency volatility - is currently casting a very unwelcome shadow of uncertainty over international trade. 

Short-term benefit for Welsh lamb and beef

In the short term, the weak pound has made exporting Welsh Lamb and Welsh Beef very appealing to importers in overseas markets according to meat promotion body HCC.  “However, the uncertainty of what the future holds is a cause for concern for red meat processors in Wales and for their customers on the continent who are keen to maintain a consistent supply of Welsh Lamb and Welsh Beef in their markets,” said an HCC spokesperson.  

Cheese can be like Brexit – hard or soft!  

AHDB Dairy was at SIAL for the first time as part of its new trade development programme. This coincided with Lucy Randolph being appointed to a new post of Senior Dairy Export Manager. 

Jean-Pierre Garnier, AHDB Head of Livestock Export Trade Development, said: “SIAL is the biggest, single dairy show in the world and we have a lot of competition so we need to simply market our product as best we can and make sure we progress exports in volume and value. We need to make sure people taste and know about the huge amount of cheeses we produce in the UK. We have a great range of cheeses and other dairy products, such as speciality butter.” 

Peter Kendall, AHDB chair, said: “Our being at SIAL is about making connections and opening up new opportunities, so farmers in the UK can benefit from demand for great British produce. As we enter this era of uncertainty, having those exports markets and having those good relationships is really important.” 

COMMENT

Fortunately for British farmers, exporters have confidence in their offering. It is not misplaced either – many of the food and drink products have recognisable brands backed by Protected Geographical Indicators. These are absolute and closely audited in terms of provenance, quality assurance and importantly animal welfare.

There may be some short-term confidence in the export markets thanks to a weaker sterling but that is not enough to dispel longer-term worries. 

Assurances that PGI status can be retained for UK products would be helpful. It should be a priority for negotiators once Article 50 is triggered. 

The UK has 38 PGI products in its export hamper. Each one is a brand and as any marketer knows good brands are almost beyond value.

There are also 25 more locally specific UK products certified as PDO (Protected Designation of Origin) . These include Lakeland Herdwick PDO, Isle of Man Manx Loughtan PDO and Shetland Lamb PDO. More usually seen on bottles of French wine these are also cherished brand markings.