Editorial: The Price of Progress
OPINION: Alistair Carmichael raises some interesting questions about striking a balance between profitability in farming and preserving the character of rural communities.
The earlier than anticipated start of December 1 to the deal is good news for exporters, says New Zealand Horticulture Export Authority chief executive Simon Hegarty.
Officials worked to secure this deal and benefits will be realised in 2013/2014 export season.
Taiwan is the NZ horticulture sector's 6th largest export market in value terms with exports in 2013 amounting to $112 million.
However, these exports attracted about $20million in tariffs at an average 18.5% of the value. The 20% tariff on kiwifruit alone amounted to a cost of $16m or an average $6000/grower, while the cost to the 406 apple growers was $2.8m or an average of $6930 per grower.
Specific examples of benefits include:
• apples drop from 20% tariff to zero tariff on 1 Dec 2013,
• cherries drop from 7.5% tariff to zero on 1 Dec 2013,
• kiwifruit phased down from 20% to zero over 3 years (by 1 Dec 2016),
• onions and buttercup squash will be phased down from 25% to zero over 8 years (by 1 Dec 2021).
Summerfruit NZ's chief executive, Marie Dawkins, says Taiwan is our most important market for cherries with nearly 600,000kgs exported there for the 2012-13 season, or about 41% of all cherry exports.
The timing of the announcement was slightly unexpected as earlier indications suggested the agreement would come into effect some time in 2014.
The first boxes of cherries under the new tariff free agreement are likely to be exported within days of the deal coming into effect. Dawkins says the cherry season is a relatively short one and growers were well placed to make the most of any opportunities the reduced Taiwanese tariff might provide.
For more information go to website www.hea.co.nz
