6 FEED & ADDITIVE MAGAZINE May 2025 Since the EU exit on 31 January 2020, the UK animal feed industry is managing the implications of departure from the trade bloc including, those for trade, regulation, and the ambition of the UK Government to improve food security. TRADE The UK industry sources 16mt of raw materials annually, with 54% from home-grown origins and the remainder globally. This exposes the industry to geopolitical shocks such as Covid, the war in Ukraine, Suez supply challenges, and now a looming global trade war. It would be fair to conclude that the UK animal feed industry has yet to see benefits from the EU exit. However, independent of the EU, the UK may navigate a competitive advantage, with US tariff proposals and EU countermeasures being a prime example. The initial US tariff proposal for EU goods was 20%, whilst only 10% for UK goods. In response, the EU proposed countermeasures of 25% on various US food and feed goods. The UK has not imposed any tariffs to date, but the Government is consulting on the issue. The UK imports various feed materials and additives from the US, either directly or via the EU. These include maize, soya beans and meal, beet pulp, beet molasses, distiller’s dried grains with solubles (DDGs), corn gluten, a range of feed additives, and amino acids. Another example of an independent UK trade policy that benefits the feed industry is the decision not to place any anti-dumping measures on Chinese lysine imports. The EU provisional measures were set out in Implementing Regulation (EU) 2025/74 on 13 January 2025 and, if imposed, will have considerable economic implications for the EU industry. However, Northern Ireland feed businesses importing Chinese lysine will be subject to EU measures, though these may be reversed under the Windsor Framework. The Agricultural Industries Confederation (AIC), representing the interests of the UK feed industry, is engaged in discussions with the UK Government on tariffs and will be seeking a positive outcome for Members. While trade policies are crucial, another significant area of focus for the UK feed industry is the regulatory landscape, particularly the opportunity to negotiate a UK/EU Sanitary and Phytosanitary (SPS) Veterinary Agreement. UK/EU SPS VETERINARY AGREEMENT AIC has engaged in separate discussions with the Department for Environment, Food and Rural Affairs (Defra) over the Government’s ambition to negotiate an EU-SPS veterinary agreement. The Government has now begun the work of negotiating such an agreement with the EU, a policy shift that could benefit the entire agri-food supply chain in the UK. Since the Government took office, AIC has been working closely with ministers and civil servants as they engage in these negotiations to help foster a beneficial outcome for Members, to remove unnecessary barriers to trade between the UK and EU. Amongst such challenges, one cannot overlook the complexities that have arisen from trade between Great Britain and Northern Ireland in SPS matters. On 19 May, a high-level EU-UK summit will take place in London, and this will form part of the discussions. CAN THE UK FEED INDUSTRY PLAY A BREXIT TRUMP CARD? James McCulloch Head of Feed Sector Agricultural Industries Confederation (AIC) LEAD ARTICLE
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