The government’s no-deal Brexit plans to impose import tariffs on cheese will fail to protect British milk producers’ livelihoods, Dairy UK has warned.

If the UK leaves Europe without a deal by 31 October, about 18% of total dairy imports will attract a temporary tariff to try to protect our market. For cheese, the rate would be set at about €214/t (£190/t).

But Dairy UK, representing milk processors, has branded the proposal “inadequate”.

See also: UK’s ‘no-deal’ Brexit tariffs illegal, warns farm commissioner

Speaking at the organisation’s annual dinner, vice-chairman Ash Amirahmadi called on the government to rethink its policy.

Mr Amirahmadi told delegates that Dairy UK had commissioned an independent report on the potential effect of a no-deal Brexit on milk products.

“It showed there would be a massive shock to raw milk prices if the dairy sector faced WTO tariffs going out and zero tariffs coming in,” said Mr Amirahmadi.

He added that the report findings were shared with the government.

“We were pleased the government recognised tariffs were necessary. However, the level chosen for cheddar cheese is not sufficient to avoid volatility and potentially the loss of productive capacity in this sector,” Mr Amirahmadi warned.

“The lack of tariffs on other cheeses and all other dairy products will put our industry at a severe competitive disadvantage, the negative economic impact of which will be felt throughout the supply chain,” he said.

Inbound tariffs

Mr Amirahmadi urged the government to explain how the announced potential inbound tariffs levels were set.

“We stand ready to work with our colleagues in government departments and MPs to ensure the voice of dairy and agriculture features prominently in future trade and tariff discussions,” he said.

Mr Amirahmadi’s speech echoed the sentiments of Dairy UK chief executive Judith Bryans who spoke out shortly after the government revealed the tariff rates in March.

At the time, Dr Bryans said: “The EU is our biggest export market, accounting for over 90% of UK dairy exports by volume.

“Should this trade become subject to high tariffs, we will automatically become uneconomic compared with our EU counterparts.”

And she warned: “The knock-on from this will be a significant displacement of UK dairy products, resulting in a severe price shock due to oversupply.

“The UK dairy industry has the potential to thrive in a post-EU world, but not if we don’t get this right. We can’t escape the laws of supply and demand.

“If MPs want to avoid a severe price shock to the UK dairy industry, which will have a long-term impact on its productive capacity, the answer will only lie in reaching agreement on a relationship with the EU.”