increase font size
Agriculture Minister Damien O'Connor.
The Government has announced that it intends to review the dairy quota allocation system.
Agriculture Minister Damien O’Connor says the review would maximise export returns for the country’s dairy industry.
The announcement comes almost two months after New Zealand signed a free trade agreement (FTA) with the European Union and close to a year after the free trade agreement with the United Kingdom was signed.
“The new dairy quotas, which will become available under the recent FTAs, means it’s timely and prudent to take a fresh look at how we allocate dairy export quota,” O’Connor says.
He says he wants to ensure the system works well for everyone, that the value of the quota is maximised, and that opportunities are not missed.
“New Zealand’s trade agreements with the United Kingdom and European Union present new opportunities for New Zealand exporters.”
O’Connor says he knows the dairy industry is seeking to take up the benefits available to them under the new trade agreements with the United Kingdom and European Union.
Access into a number of dairy export markets is controlled through tariff quotas, which provide access into a market for set volumes at a lower or zero tariff.
Dairy export quota allocations are set each year by the Ministry for Primary Industries, and allocated to eligible processors proportional to the milk they collect from farmers. To be eligible processors must collect at least 0.1% of New Zealand’s total milk solids.
New Zealand and the United Kingdom are currently completing processes for the UK-NZ FTA to be ratified. The dairy quotas available under the UK-NZ FTA will initially be allocated under the current quota allocation mechanism outlined in the Dairy Industry Restructuring Act (DIRA) 2001.
It’s expected that New Zealand and the European Union could sign the NZ-EU FTA in 2023, with entry into force possible as early as 2024.
The Government expects to consult on the review of the dairy export quota allocation system in late 2022, with any prospective legislative change being initiated following consultation. The review will cover all dairy export quotas that are allocated by New Zealand under the DIRA, not only the new quotas under the UK-NZ and NZ-EU FTAs.
“The dairy sector continues to be a mainstay for New Zealand with dairy export revenue reaching a record $22.1 billion in the year to June 2022.
“The recent FTAs are going to provide new opportunities for our exporters to grow export revenue even more, boosting New Zealand’s economic security as we recovery from COVID-19,” O’Connor says.
Did you know that nearly 90% of total New Zealand wine sales occur offshore? That simple number means our wine businesses are the most export oriented of all the global wine industries. It also makes our sector especially sensitive to any changes in the trade rules that govern the access of our wines into international markets.
Federated Farmers have reiterated their support for the coalition Government to abolish the present ban on the live export of animals.
Meat Industry Association chief executive Sirma Karapeeva says the outlook for beef in the US is expected to hold up for several years as that country continues to liquidate its herd due to drought.
As the coalition Government mulls new regulations to reinstate the export of live animals, debate is heating up between supporters and opponents.
The European Union Ambassador says the new free trade agreement (FTA) between the bloc and New Zealand will bring significant benefits to both parties.
New Zealand’s dairy sector cannot expect India to be a market for all its dairy products.
Meat processor ANZCO Foods’ net profit has plunged on the back of lower market returns which squeezed margins and impacted business performance.
OPINION: Most people will be aware of the Government's plans to boost coal, oil and gas production to meet energy requirements.
AgriZeroNZ has entered a new partnership with Britain's national innovation agency, Innovate UK.
Twenty rural community hubs across New Zealand will receive $5,000 to upgrade their facilities having been selected as the winners of Rabobank's Community Hub Competition.
As the dairy industry prepares to celebrate its top achievers at an awards night this Saturday, attendees are being warned to be aware of protests planned outside the venue – Baypark Arena, Mount Mauganaui.
OPINION: Farmers won't get any credit for this from the daily media, so Milking It is giving the bouquets where…
OPINION: The Advertising Standards Authority’s 2024 report revealed that not only is social media rotting our brains, it is also…
