The British lamb industry could be destroyed by a post-Brexit free trade deal with New Zealand, Welsh rural affairs secretary Lesley Griffiths has said.
Ms Griffiths told Assembly Members that a huge influx of imported lamb 'would absolutely destroy' the industry.
"I do not want to say 'I told you so' but that was one of the issues we tried to get out there ahead of the referendum," she said.
Phil Stocker, National Sheep Association Chief Executive, said a trade agreement would send a larger amount of sheep meat to UK retailers when the market is 'already suffering.'
"NSA understands Australia has been pushing to increase its EU quota for many years now, so there is no doubt it would send larger amounts of sheep meat to Europe and the UK given the opportunity," Mr Stocker said.
"The UK sheep sector is already suffering unacceptably high levels of imports of New Zealand lamb, much of which is sourced by retailers at times of the year when UK product is in plentiful supply."
'Tighter controls'
The Welsh assembly committee was told up to 40% of Welsh lamb exports currently go to the EU and, if the UK was unable to strike a trade deal with the EU after Brexit, they would face a 12% tariff under World Trade Organisation rules.
The NSA said the UK needed to be keen to see an outcome to Brexit whereby tighter controls on New Zealand lamb were put in place.
They said a situation allowing new Australian products to be imported into UK retailers would make matters worse.
"Recent figures from Meat and Livestock Australia show the country produced 516,366 tonnes of lamb and 196,040 tonnes of mutton in 2015/16, exporting 56% of total lamb production (worth $1.78 billion) and 91% of mutton production ($700 million). The main destinations were the Middle East, USA and China.
"The UK is currently an importer and exporter of lamb, which helps balance supply and demand through the year and exploits ideal sheep producing conditions in the UK.
"We currently export around 36% of UK lamb, with France and the rest of the EU taking the majority of this. A priority for our sector is negotiating a trade deal with the EU post-Brexit.
"A free trade deal with Australia or New Zealand may be beneficial for some UK industries but could have a catastrophic effect on UK sheep farmers and we cannot sit back and be sacrificed for the benefit of others."
'Inextricably linked'
Asked if the UK government would seek to take control of some of those matters, Ms Griffiths replied: "I do think they recognise that we are all equal.
"We have made it very clear there can be no imposition, there has to be collaboration.
"I mentioned about them thinking that maybe they have this magic set of powers because they have been the member state, but we have made it very clear that is not the case.
"It is not part of the devolution settlement and we are all equal around the table."
Sam McIvor, CEO of Beef + Lamb New Zealand said: "Our sheep and beef trade to both the UK and EU are inextricably linked through quota access and both are likely to be affected."
New Zealand's sheepmeat quota to the EU of around 228,000 tonnes represents over half of New Zealand's sheepmeat exports.
The UK currently takes half of that.
"As the UK negotiates its exit from the EU over the next couple of years it will likely be negotiating how much of these quotas will be transferred solely to them and on what terms," said Tim Ritchie, CEO of the Meat Industry Association of New Zealand.
