Red meat exports slump, thanks to China
Weaker pricing and demand from China continue to impact New Zealand red meat export earnings.
The red meat sector welcomes the announcement today that all steps are now completed to enable the Korea-New Zealand Free Trade Agreement to enter into force before the year end.
The Free Trade Agreement (FTA) with Korea is a significant step towards reducing the overall amount of tariffs paid on New Zealand red meat exports.
Tariffs of almost $323 million were paid on New Zealand red meat exports in 2014. A significant proportion of those tariffs were paid in Korea ($64 million) – where applied tariffs are 40% on beef.
The Korea FTA is critical for New Zealand sheep and beef farmers and meat exporters, ensuring New Zealand remains competitive in this key market.
Korea is New Zealand's fourth-largest beef market by volume, taking nearly $123 million of beef exports last year.
However, trade volumes have dropped in recent years, partly due to competitors such as the United States, and more recently Australia and Canada, having a tariff advantage through their FTAs with Korea.
New Zealand red meat exports will benefit from two rounds of tariff cuts in quick succession – the first on entry-into-force of the agreement on 20 December, and a second round of cuts on 1 January 2016.
Beef + Lamb New Zealand (B+LNZ) and the Meat Industry Association (MIA) work together to improve access for sheep and beef products to overseas markets, including by providing in-depth analysis in support of the Government's FTA negotiation efforts.
Farmer-led charity, Meat the Need is calling for donations to enable it to supply more meals to families in need.
Weaker pricing and demand from China continue to impact New Zealand red meat export earnings.
Fonterra has cemented its position as the country’s number one cheesemaker by picking up nine NZ Champion of Cheese trophies this year.
New Zealand dairy processors are welcoming the Government’s commitment to continuing to push for Canada to honour its trade commitments.
An educational programme, set up by Beef + Land New Zealand, to connect farmers virtually with primary and intermediate school students has reported the successful completion of its second year.
Horticulture NZ chief executive Nadine Tunley will step down in August.