Brexit is probably the biggest political and economic event of recent times facing Ireland’s economy and, also, its forestry sector. Source: Agriland
Given the Irish agricultural sector’s dependence on the UK market, particularly for beef exports, farmers may need to look at alternative methods of protecting their income as Brexit looms on the horizon.
In April 2019, the UK is set to depart the European Union; but it doesn’t change the fact that it will remain as our nearest trading partner to the east.
The hard-Brexit scenario that currently appears inevitable will raise barriers around the UK.
The British population will be the biggest losers in this, as trade-tariffs raise the price of the contents of their shopping baskets.
Nonetheless, they will still need their basic raw materials. Timber is one such raw material for which the UK is significantly dependent on imports.
The UK is Ireland’s largest export market for sawn timber products.
Equally, Britain is hugely important for Irish wood panel producers; so Ireland’s timber sector must pay attention to the challenges of Brexit.
However, in 2015 the UK imported a total 6.3 million m3 of sawn softwood while Ireland’s total exports of sawn softwood (UK and others) were 701,000m3 – the UK’s reliance on imported timber is clear.
The Irish Forestry and Forest Producers Association (IFFPA) reports that Ireland was the second largest exporter of oriented strand board (OSB) and particleboard to the UK.
Ireland was also the largest exporter of medium density fibreboard (MDF) to the UK in 2015. Importantly, major competitors in these product categories are other EU nations.
