Red meat exports slump, thanks to China
Weaker pricing and demand from China continue to impact New Zealand red meat export earnings.
With a no-deal Brexit looming, NZ meat exporters face the prospect of paying tariffs twice on product going from the UK to the EU.
After March 29 the UK moves to WTO rules and countries with trading blocs set a schedule of tariffs with the WTO. The UK has said it has a draft schedule almost identical to that of the EU.
The EU tariffs are fairly low except for agricultural products which get very high for lamb or beef – in the 49-50% range, says Nick Swallow, NZ trade commissioner to London.
“Even though they have the same schedule it still means you have to pay a tariff if goods move between Europe and the UK,” he told a NZTE seminar on Brexit in Auckland last week.
“That means there is no change [to your tariffs into the UK] if you are a NZ company sending goods into the EU. But if you are sending goods to the UK and then sending them off to Europe you will [pay] a tariff going into the UK and then across into the EU. So you get doubly charged in that sense.”
A no-deal situation will come into force if the EU and UK can’t agree on Brexit arrangements before the March 29 exit date.
Outlining other considerations for NZ businesses exporting into the UK and EU if a no-deal occurs, Swallow warned of UK customs officials having a tide of new customs declarations to process and tariffs to collect.
Freighting delays with Britain are expected and some large companies are block-booking freight forwarding and trucks after March 29.
Delays at the border will be a threat and hard to quantify. Some NZ companies are increasing their UK stock capacity to allow for border delays ranging from six weeks to 18 weeks.
Swallow says businesses should check issues on contracts, data and the status of EU workers in the UK. He also urges them to verify packaging and labelling, shipping – especially in March and April – and terms of trade, and talk to their customers and partners in the UK or EU about how a no-deal Brexit may impact them.
The 2023-24 season has been a roller coaster ride for Waikato dairy farmers, according to Federated Farmers dairy section chair, Mathew Zonderop.
Ministry for Primary Industries (MPI) director general Ray Smith says job cuts announced this morning will not impact the way the Ministry is organised or merge business units.
Scales Corporation is acquiring a number of orchard assets from Bostock Group.
Family and solidarity shone through at the 75 years of Ferdon sale in Otorohanga last month.
The Ministry for Primary Industries (MPI) has informed staff it will cut 391 jobs following a consultation period.
New Zealand farmers are committed to making their businesses more resilient to climate change and are embracing innovation to help them do so.
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