Senior ministers have met to discuss concerns about how a zero-tariffs free-trade deal with Australia would affect UK farmers.

International Trade Secretary Liz Truss said on Wednesday that negotiators were “in a sprint” to secure an agreement in principle by early June.

But a farming union has warned of “irreversible damage” from a bad deal and the cabinet is reportedly split.

There are fears huge Australian cow and sheep farms could undercut UK rivals.

The UK government is keen to strike trade deals following Brexit and has indicated that the agricultural sector may have to prepare for the lowering of tariffs on imports.

In 2019-20, trade in goods and services between Australia and the UK was valued at £20.1bn, and both sides are hoping to expand this amount considerably.

But the Financial Times has reported that Environment Secretary George Eustice and Cabinet Office minister Michael Gove strongly disagree with Ms Truss and Brexit minister Lord Frost over granting tariff-free access to Australian, and possibly New Zealand, farmers.

The National Farmers’ Union has urged ministers to “make sure concessions to our hugely valuable home market are not given away lightly”, while the Scottish and Welsh governments have also raised concerns.

Scottish Rural Affairs Secretary Mairi Gougeon has written to Ms Truss, arguing that “a trade deal that liberalises tariffs for Australian farmers, to put it bluntly, will put UK farmers out of business”.

She also suggested imposing quotas to control imports of lamb and beef, which must be “duly maintained and not eroded over time”.

‘How can we compete?’

And Welsh First Minister Mark Drakeford told BBC Radio 4’s Today programme he wanted a “level playing field”.

“How can our hill farmers compete with Australian climate?” he asked. “How can our hill farmers compete with the space that is available for the huge farms that they have in Australia?”

Mr Drakeford said UK animal welfare standards were “higher” than those in Australia, making two-way trade more difficult.

ut the prime minister’s official spokesman said the UK was seeking deals “tailored so that they can best meet the needs of the British people”.

“We want to secure an ambitious deal that benefits businesses and consumers across the UK, and of course any agreement will include protection for the agriculture industry,” he added.

And Fiona Simpson, president of Australia’s National Farmers’ Federation, told Today she wanted to “re-establish a very strong trade relationship with the UK, which we had before the UK joined the EU”.

She added that some UK consumers had a desire to “eat some Aussie beef”.

But Australian farmers were “just not able to ship our produce in any sort of a quantity to the UK”, Ms Simpson said, adding: “It’s just way too expensive and way too far.”