UK meat and by-products may face rejection

UK meat and byproducts could face rejection beyond the EU following the foot and mouth outbreak, according to Aon.

The broker is advising exporters to reconfirm worldwide orders before shipping their cargo to prevent unexpected costs, such as redirecting and relabelling, if their meat is rejected.

Since the EU banned UK meat exports over the foot and mouth outbreak, Aon has been working with exporters whose products have been rejected from as far as China and the US.

Gill Bewes, UK broking manager for Aon's marine team, said: "Back in February, we saw a similar reaction to the UK poultry farmers when countries such as Russia, Japan and South Korea rejected cargo due to the strain of avian flu discovered in the UK.

"Now before you export, it's essential to do your homework with your suppliers and their governments to ensure your meat or byproducts will be accepted. Otherwise, exporters could face additional costs for re-directing or returning cargo, subject to embargo, as well as condemnation by government agencies.

"Companies should seek advice on broadening their policy with immediate effect or at next renewal, to provide additional cover for the risk of rejection or the additional costs involved in rerouting cargo."

In the event of rejection, meat exporters can claim from their rejection risks cover. This is an extension of a standard cargo policy which covers the meat for loss, damage or deterioration. The rejection risks extension covers the costs of:

· Rejection of exported meat by government agencies and subsequent costs of returning or re-shipping to an alternative destination

· Condemnation /destruction of meat by order of a government agency

· Returning or reshipping to an alternative destination when embargo applied at destination after shipment

· Costs of relabelling when changes made at destination after shipment

· Loss of export subsidy.