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Trade opportunities top agenda during NFU delegation’s US visit

01 October 2024

NFU representatives standing on on a balcony in the US

from left: Abi Reader (NFU Cymru Deputy President), Nick von Westenholz (NFU Director of Strategy), David Barton (NFU Livestock Board chair), Tom Bradshaw (NFU President), Will Surman (UK agri-food attache), Gareth Baynham Hughes (Defra Director Animal and Plant Health), Gail Soutar (NFU chief international trade adviser), Jennifer Groover (Head of Agriculture, British Embassy, Washington) and Stephen Shields (NFU Horticulture Board vice chair) during the trip to the US.

NFU President Tom Bradshaw recently led a delegation of staff, members and senior government officials to the United States. Chief international trade adviser Gail Soutar explains what was seen and discussed during the trip.

The trip, largely organised and hosted by the New York Farm Bureau and the team at the British Embassy in Washington DC, including our agri-food attaché Will Surman and Head of Agriculture Jennifer Groover, proved to be a great success.

Talking trade

Tom was joined by Livestock Board chair David Barton, NFU Cymru Deputy President Abi Reader and Horticulture Board vice chair Stephen Shields and they were able to make the case for greater sales of the UK’s high quality agri-food products in the US.

The US is the UK’s largest export market for agri-food products outside Europe and in recent years we have seen significant growth in sales of UK dairy, red meat and bakery products. Despite this, some UK products continue to face barriers and challenges to access the US market.

This included beetroot, but days after delegation returned the US announced that UK beet growers will be able to access the US market for the first time, following many years of NFU campaigning.

Boosting UK beef opportunities

UK beef sales have also increased in recent years to sit at almost £2 million for the first six months of this year. 

But further growth in sales is limited as the US runs a strict first come first served, 65,000t quota for imports of beef from countries around the world.

South American exporters have a stronghold on this quota with more than 90% of the quota filled by Brazilian beef. UK beef does, however, have a great reputation and complements the US product to produce a leaner product mix than the domestically supplied beef.

We were able to make the case to the US trade representative for ways to enhance UK beef presence on the US market.

Looking at British lamb

Sales of British lamb restarted, after a ban of more than 20 years, in 2023 and already this year we have seen a doubling of sales compared to the previous year. But competition is fierce with Australia and New Zealand accounting for more than 99.5% of lamb imports to the US.

The group spoke with companies who are interested in sourcing more UK lamb and was told that it ticks the right boxes when it comes to provenance, traceability and sustainability. An opportunity we know AHDB will keep pushing on behalf of UK farmers.

Shared challenges and opportunities

It was clear from the farms and businesses we visited that the farmers of New York State and the UK have many shared challenges and opportunities.

They are responding to the ever-increasing demands placed on them through environmental and social regulation and seeking ways to maximise opportunities for business growth and agri-diversification presented by a rising local population. They are also doing their best to ensure that the risk and rewards are shared fairly across the supply chain.

Enabling and supportive legislation

We were especially struck by the positive and supportive relationships between the New York State farmers and their State Commissioner for Agriculture Richard Ball, a farmer himself.

At every stop, NY farmers spoke highly of the efforts made by the Commissioner’s Office to ensure that they are able to operate in a supportive and economically enabling regulatory environment.

Land Grant universities

Another clear element of pride for New York farmers is the work of Cornell University, an Ivy League and US Land Grant University supporting the future of US farmers.

The US Government commits more than $1 billion to agricultural science and research (about 30% of the total public/private research expenditure on agriculture) and a further $550 million for extension services. The extension service associated with Cornell ensures that research is driven by farmers and that results are translated quickly to their benefit.

Resilience and fairness

The US Farm Bill aims to keep food prices fair for farmers and consumers, ensure an adequate food supply, and protect and sustain the country’s vital natural resources.

It provides consumers and farmers with programs and funding sources across multiple “titles.” The largest of which is supplementary nutrition assistance programmes “food stamps.”

Farmers in the US can benefit from government subsidised crop insurance. In August, apple growers within New York experienced challenging hailstorms, creating significant fruit damage and losses weeks ahead of harvest.

For many there is insurance against such events, but the process of assessing damage and calculating compensation is proving difficult and may not adequately compensate growers for their loss.

Labour availability

Farmers across New York are increasingly finding it difficult to source the labour they need. The H-2A program allows employers who meet specific regulatory requirements to bring foreign nationals to the US to fill temporary agricultural jobs.

To qualify for H-2A workers, employers must provide housing as well as transportation, both to and from a worker's home country, and to and from the work site. The minimum wage for H-2A workers in New York is $17.80/hr (£13.30), but after costs the farmers we met said it works out more like $23/hr, much higher than the $15/hr minimum wage set for workers across New York State.

Environmental and sustainability drivers

Farmers in the US are faced with inspection and enforcement requirements, but there was a sense among the businesses we visited that the burden is much more proportionate in the US, with much less on farm audits that we see in the UK.

Nevertheless, consumer-led sustainability drivers are emerging. We visited a dairy processor who is making a $150 million investment in increasing dairy processing for its 30 farmer members, milking 50,000 cattle.

Sustainability was at the heart of its operations. The company claimed to have the lowest carbon footprint of any dairy operation in the Northern Hemisphere and is engaged at the global level on carbon accounting methodologies, something the NFU is keen to follow up and work with them on.

Collaboration key to future success

The visit to New York and Washington DC allowed us to see and hear how farmers are facing and rising to the same challenges and opportunities British farmers are.

During the week we visited 13 farms, three processors, a supermarket and took part in a series of high-level meetings with senior New York and Federal Government representatives. We met also with National Association State Departments of Agriculture and the American Farm Bureau in Washington DC.

The decision, after many years of effort, to resolve the beetroot ban is exactly the type of win we’re able to achieve with the UK’s expanded network of agriculture attachés following years of campaigning by the NFU for the creation of these positions.

Long may the collaboration continue, so British farmers and growers can expand into further markets and increase sales of great British food overseas.


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