AIC at 20: Maintaining animal feed supply during the Ukraine war by lifting maize tariffs

AIC at 20: Maintaining animal feed supply during the Ukraine war by lifting maize tariffs

As AIC marks 20 years as the UK agri-supply industry's leading trade association, we're looking back at some of its greatest achievements since it was founded in 2003.

Each week throughout 2023, we'll explore a major achievement where AIC represented its Member businesses, promoted the benefits of modern commercial agriculture in the UK, and supported collaboration throughout the food chain.

This week we look at how AIC successfully lobbied the Government to review and lift a 25% import tariff on US maize following the outbreak of war in Ukraine.

This helped to mitigate the limited maize exports coming from Ukraine and Russia as a consequence of the war and meant the agri-supply chain could maintain a supply of animal feed to UK farmers. Crucially, it brought the UK into line with EU's approach to US maize, helping provide consistency to the supply chain and importers.

Mitigating limited maize imports

The Russian invasion of Ukraine in February 2022 sparked major disruption to global markets for grain and oilseeds, including maize.

Maize is a key ingredient in many animal feed products, espeically cattle, because it is high in energy and starch.

Typically, 27% of the UK's maize imports come from Ukraine and, following the start of the war, an alternative source needed to be found quickly if British livestock production was to avoid being negatively impacted.

AIC had already been pressing the Government to review a significant import tariff on US maize since 2021, something that the European Union had committed to lifting from the begining of 2022.

The 25% import tariff on US maize was part of a group of import measures applied to US goods in retaliation for "Section 232" tariffs imposed by the USA on UK exports of steel and aluminium under then President Donald Trump.

Since the tariff was applied, no US maize had been imported to the UK.

Making the case

AIC successfully made the case to the UK Government that lifting the tarriff on US maize would help to mitigate the limited maize exports coming from Ukraine and Russia, and would improve the agri-supply chain's ability to maintain a supply of animal feed to UK farmers.

The Govenment announced it was lifting the tariffs on US maize in March 2022, a move that was welcomed by AIC Members and UK livestock farmers.

Find out more about the Grain and Oilseeds sector by watching the video below.

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