Proposed 'no deal' Brexit tariffs for cheddar imports could cause price volatility and a loss of productivity for the UK dairy industry, it has been warned.
Tariffs were announced in March for butter and a selection of cheeses including processed cheese, cheddar and blue-veined cheeses.
The butter tariffs are €605/tonne for butters and €738/tonne for butteroil; for butter this is about one third of the current Most-Favoured Nations (MFN) tariff.
For the cheeses with tariffs, the rates range between €180-290/tonne, and are generally 13% of the current MFN tariff.
There are also tariffs that currently exist on dairy products such as milk, cream, powders and yogurts, that will be dropped to zero.
The government has been urged to work with the UK dairy sector and rethink its proposed tariffs on cheese.
Speaking at the Dairy UK Annual Dinner on Thursday (20 June), Vice-Chair Ash Amirahmadi said tariffs chosen for cheddar were 'inadequate'.
He outlined impact assessments on the effect of WTO tariff rates on the sector, which demonstrated a potential massive shock to raw milk prices.
Mr Amirahmadi said: “One thing we can all agree on is that trade policy is key to the success of the sector going forward.
“We stand ready to work with our colleagues in government to ensure the voice of both dairy and agriculture is reflected in trade and tariff discussions.”