Euro crash ‘would put precious red meat exports in jeopardy’

Hard-won export markets for red meat could be damaged by currency fluctuations caused by the financial turmoil across Europe, according to Alan Craig, the president of the Scottish Association of Meat Wholesalers.

In the wake of dire warnings from the Governor of the Bank of Enlgand on the effects of the eurozone strife, Mr Craig said: “Any change of currency in countries where we’re exporting meat at present would inevitably reduce our export competitiveness as they would effectively be devaluing their currency.

“This could only have a damaging impact on trade despite the fact that many Scottish companies have worked extremely hard in the last few years to rebuild export business throughout Europe.”

Another to express concern yesterday over the monetary battles being waged in Europe was Richard King of farm consultancy Andersons, who said that if the euro weakened then not only would exports lose value but there would be downward pressure on the home market.

“Remember, the United Kingdom exports one-third of all its lamb and if the export trade fell away then it will pull the farm price down,” King said. Similar but slightly less intense pressure would occur in the beef sector again through loss of export value, he added.

Farmers would also be affected by any fall in the value of the euro next year because of their linkage with the Single Farm Payment. That could be the biggest single issue from a collapse of the euro, he stated.

A silver lining side of a major loss in value of the European currency would be cheaper imports. Chris Evans, of AEA, the umbrella body for agricultural manufacturers and distributors, said it could be good news for the price of farm equipment.

Even UK-based machinery manufacturers might not suffer greatly, he said, they often bought component parts in Europe.

Farmers who might think that imported fertilisers and agrichemicals would also cost less might, however, be disappointed as the prices for those inputs are based more on the sterling-to-dollar ratio, said King.