The re-opening of lamb exports to the United States could mean a £20 million boost for Welsh farmers, the red meat sector has said.
Hybu Cig Cymru – Meat Promotion Wales (HCC) has welcomed the prospect of the ban on lamb exports from the UK to the US being lifted soon, as announced earlier this week by Boris Johnson.
The potential market for PGI Welsh Lamb in the US has been estimated to be worth as much as £20m a year within five years of the export restrictions being removed.
A ban on both British lamb and beef imports to the US has been in place since 1989 due to concerns around BSE, commonly known as 'mad cow disease'.
The sector initially led moves to lift the ban back in 2008. HCC, alongside Welsh government ministers, subsequently raised the issue several times with US officials.
More recently, the cross-industry UK Export Certification Partnership has been engaged in technical work to help ensure that the industry was ready to resume exports if the ban should be lifted.
Red meat production is vitally important to the Welsh economy, worth an estimated £652m in 2019, representing 41% of the total value of Welsh agricultural output.
According to industry statistics, Wales produced 62,000 tonnes of lamb in 2020, with just 5% of the lamb produced consumed in Wales, 60% consumed in the rest of the UK and 35% in export markets.
HCC chief executive Gwyn Howells said achieving market access for lamb to the US had been a long road: "It looks as if we’re nearly at the end of the journey," he added.
“The ban has not been necessary or justifiable for many years. But it’s taken a long effort and much technical work to overcome the various administrative hurdles."
He explained there was a promising market for high-quality Welsh lamb in the United States, particularly in the hotel and restaurant trade on the east coast.
Research by the body has shown that the trade could be worth £20m a year for the sector if it is able to achieve access and work on developing the market.
“Lifting this ban would be good news for Welsh sheep farmers and processors," Mr Howells added.
"We look forward to hearing the details behind the announcement and are ready to grasp the opportunity should it arise.”
A Welsh government spokesperson said Wales "produces the best lamb in the world" and farmers had "worked tirelessly over the past few years to get this ban lifted".
"News of potential progress is very welcome and we look forward to receiving further details."
The US's ban on British beef was lifted in September last year in a deal thought to be worth £66 million over the next five years.