NI dodges further divergence with new EU law - but other organic producers say they're at a competitive disadvantage

The issue, which was discussed at today’s Windsor Framework scrutiny committee at Stormont, highlighted the confusion and bureaucracy involved in the UK being split into two regulatory zones.

For example, Stormont’s agriculture department (DAERA) has an input into setting the UK standard for organic products – despite the UK standards not applying in Northern Ireland.

Local industry now relies on London choosing not to diverge standards in order to protect the Northern Ireland market.

Officials are keen to avoid divergence within the UK, and this particular law does not create it. However, a committee in the House of Lords recently a threat to the organic egg industry from divergence between new EU laws in Northern Ireland and rules in Great Britain. The European Union has applied stricter standards to organic egg production – which puts Northern Irish producers at a competitive disadvantage in the market in the rest of the UK – according to the Ulster Farmers Union.

The DUP’s deal with the government guarantees access for NI products into the Great Britain market. However, it does not address competitive disadvantage if NI businesses have to operate to stricter standards. The Ulster Farmers Union say GB producers can produce much more cheaply – at around five pence less per egg.

Brian Ervine from DAERA told the Windsor Framework committee on Thursday that EU standards apply to organic standards in egg, poultry and beef production here – and said NI farmers are a significant producer of organic eggs supplying GB supermarkets.

He said that because a new EU organic standard will apply here, while the old EU law applies in the rest of the UK – so there “there is a potential for divergence”.

However, the EU law discussed on Thursday focuses specifically on organic pet food – bringing it in to line with the requirements for organic human food and introducing some flexibility. The 95% ‘minimum organic ingredient’ standard already exists in GB – this new EU law would create alignment between the two regulatory zones within the UK.

The DAERA official told MLAs: "There don’t appear to be any downsides to this at all. In fact it would make sure that if there were producers of organic pet food in NI the impact of this act would align it with GB but would also align it with the rest of the EU”.

He said there are no organic pet food suppliers in Northern Ireland – but one company is actively looking at it, and the act would mean they could continue to sell to GB while operating to the same standards – and mean no competitive disadvantage.

There will also be different labelling in GB and NI – something highlighted by the DUP MLA Jonathan Buckley. The Upper Bann MLA asked if there would be market restrictions for GB labelled goods entering NI. Officials said that the two standards are currently equivalent, so there won’t be an issue – and the goods could potentially benefit from the Windsor Framework regulations.

However, as reported by the News Letter in March, Northern Ireland producers won’t always be that lucky. New EU standards on organic egg production puts Northern Irish producers at a competitive disadvantage in the market in the rest of the UK – according to the Ulster Farmers Union.

In evidence submitted to the Foreign Secretary Lord Cameron by the Lords Sub-Committee on The Windsor Framework – the UFU says costs “cannot be absorbed by the NI industry”.

GB organic legislation is currently under review, with no publication likely until the end of 2025. Until then, GB farmers will continue to produce organic egg according to retained legislation.

The UFU say the current divergence allows organic egg farmers in Great Britain to produce eggs more cheaply than their Northern Irish counterparts – at around 5 pence less per egg. They say a derogation, which was in place until the end of February, should be extended until after the publication of GB’s revised organic legislation.

One of the impacts in divergence in product standards is the cost to business. A Northern Ireland egg producer would still be able to sell their product into Great Britain, but the divergence in standards means it would be less financially viable to do so.

The UFU gave evidence to the Westminster committee that they had become “aware of a disparity relating to organic egg feed regulations in EU vs UK for diets fed to ‘young birds’”.

They said “The differential was a requirement that feed rations produced should contain 100% organic ingredients as per EU regulations, rather than UK regulations which were formulated to 95% organic ingredient inclusion. Concerns were raised at that stage around nutritional stability of the diets, detrimental effect on egg yolk colour, as well as a cost disparity with GB producers”.

The UFU says 14% of the organic eggs sold in GB are sourced in NI. 250,000 eggs are produced from 35 farms in NI on a daily basis.