China’s new beef tariffs expected to favour New Zealand exporters
Additional tariffs introduced by the Chinese Government last month on beef imports should favour New Zealand farmers and exporters.
Disruption in China caused by the coronavirus is forcing meat processor Silver Fern Farms to reduce production from next week.
Read: Coronavirus forces NZ meat shipments away from China.
In an email to farmer suppliers, SFF chief executive Simon Limmer says mutton production will be impacted.
“Mutton production will be impacted from next week with limited capacity available nationally for processing until there is greater clarity around the situation in China,” Limmer says.
“We are turning down processing volumes in the very short term to reduce the future risk of significant stoppages in our plants.”
Limmer says the coronovirus health emergency combined with the timing of the China New Year holiday has impacted trade: China businesses, ports and government departments are operating at restricted capacity.
“People are under movement restrictions and in many cases cannot get to work, or back home, potentially for at least another week,” he says.
“With congestions at port, movements of product into China are being disrupted with delays becoming a reality We are having to hold product in New Zealand which had already been produced for China.
“This has begun to place significant stress on all cold storage facilities across New Zealand If the situation continues for an extended period of time our cold stores will become full, and that will impact our ability to continue processing in some plants.”
Chinese officials have confirmed over 7,700 cases of the mysterious illness as foreign governments, including New Zealand, are airlifting their citizens out of Wuhan, the outbreak’s epicenter.
Some parts of China including Wuhan have movement restrictions in place. The coronavirus outbreak has been declared a public health emergency by the World Health Organisation.
Additional reductions to costs for forest owners in the Emissions Trading Scheme Registry (ETS) have been announced by the Government.
Animal welfare is of paramount importance to New Zealand's dairy industry, with consumers increasingly interested in how food is produced, not just the quality of the final product.
Agriculture and Forestry Minister Todd McClay is encouraging farmers and growers to stay up to date with weather warnings and seek support should they need it.
The closure of SH2 Waioweka Gorge could result in significant delays and additional costs for freight customers around the Upper North Island, says Transporting New Zealand.
OPINION: The year has started positively for New Zealand dairy farmers and things are likely to get better.
Ministry for Primary Industries (MPI) Director General Ray Smith believes there is potential for an increase in dairy farming in New Zealand.

OPINION: If the hand-wringing, cravat and bow-tie wearing commentariat of a left-leaning persuasion had any influence on global markets, we'd…
OPINION: With Winston Peters playing politics with the PM's Indian FTA, all eyes will be on Labour who have the…