The effect on the British economy as a whole could be devastating, but the grain sector is largely weathering the Brexit storm, adapting well to the new circumstances and increased bureaucratic requirements for trade that were introduced two years ago. If successfully put in place, a new EU-UK deal on trade deals for Northern Ireland could help solve some of the challenges facing the sector.

Alex Waugh, director general of the industrial organisation UK Flour Millers, which covers the sector in the UK and Ireland, stressed to World Grain that "as far as the wheat buyer is concerned, there is no problem. It's okay. It doesn't really make much difference."

However, there were problems with moving products to both parts of Ireland, forcing many companies to maintain larger inventories. The EU side was being "more meticulous with the paperwork," he said. There was "no doubt" that the UK food industry had lost trade to the EU. This affected the grinding "a little, but maybe more our customers." "Trade from Northern Ireland to South has remained stable," he noted.

With trade from Britain to Northern Ireland, there were questions about the rules of origin. He pointed out that what Irish bakers are looking for is strong flour, which usually includes Canadian wheat. Britain "is probably still the cheapest source of non-Irish flour," he added, also noting a level of "cultural understanding."  "The types of baked goods produced in Ireland are much more familiar to UK millers," he explained.

Source: Agrolink