Wednesday, 18 December 2024 10:55

Trade barriers costing hort exporters $135m

Written by  Peter Burke
The Horticulture Export Authority says non-tariff trade measures continue to remain a problem for exporters. The Horticulture Export Authority says non-tariff trade measures continue to remain a problem for exporters.

Non-tariff trade measures (NTM) remain a problem for NZ exporters, according to Horticulture Export Authority (HEA) chief executive Simon Hegarty.

The HEA released its latest report on 'Barriers to NZ's Horticulture trade'. The 235-page report, produced by the HEA every two years, is effectively an encyclopaedia of what has happened and is likely to happen in the sector.

Hegarty says while existing trade barriers cost the sector around $135 million a year, it's the NTMs that are causing NZ real grief on a daily basis.

Hegarty says these include overly complex regulations and the lengthy time taken by some countries to process an application for a new product to enter their market. Other barriers include compliance around phytosanitary requirements, product labelling, pre-shipment inspections and just getting goods cleared through customs, to name a few.

He says there are other headwinds facing the sector 10-15 days longer to get to Europe and that is disrupting the whole global shipping schedules," he says.

Hegarty says NZ is an isolated nation which struggles to attract freight providers because some of the routes to and from Asia to Europe and the USA are more lucrative.

On the other hand, he says NZ is benefiting from the recent NZ/EU FTA which came into force this year; the removal of tariffs resulted in a $27 million dollar benefit. Other FTAs in the Middle East also had a positive impact, he says.

The HEA report shows that horticulture exports for 2024 were worth $4.9 billion - up just 2% on 2022. But the report notes that this growth in dollar terms came at a time when the actual volume of exports declined by 11%.

Hegarty says kiwifruit and apples make up 77% of horticulture's export revenue with onions coming in third place. He says China is the biggest buyer of our products, followed by the EU, Japan and Australia.

Meanwhile, like other sectors, horticulture is also finding it a challenge to secure a trade deal with India.

NZ hort exports to India amount to just over $78 million - mainly apples but also some kiwifruit. The trouble is apple exports attract a 50% tariff and kiwifruit 30% which cuts into profit margins.

In the past week, a delegation of horticulture exporters (no politicians) representing kiwifruit, apples and pears, onions, avocados, the HEA and others have been in India. Their objective is a reconnaissance mission to get a better handle on the opportunities there, the logistics of increasing our market share and getting a first-hand understanding of how India does business.

More like this

Hort exporters eye Indian market

Exporters need to understand that India should not be seen as just one country to export to, rather a country of many unique states and regions.

Helping develop, grow markets

While NZ Avocado is not directly involved in selling fruit, it does have a significant role in supporting exporters to develop and grow markets.

Avocados bounce back!

After two challenging years, the country’s avocado growers are quietly optimistic that a good year is in the making.

Ready for a new challenge

After spending 20 years running her own successful environmental consultancy in Central Otago, Kate Scott is ready for a new challenge.

Featured

Milk company launches new round of grants

The a2 Milk Company (a2MC) is launching a new round of grants to support projects aimed at enhancing dairy farming sustainability via the a2 Farm Sustainability Fund.

National

Machinery & Products

Loosening soil without fuss

Distributed in New Zealand by Carrfields, Grange Farm Machinery is based in the Holderness region of East Yorkshire – an…

JCB unveils new models

The first of the UK’s agricultural trade shows was recently held at the NEC Centre in Birmingham.

» Latest Print Issues Online

The Hound

Times have changed

OPINION: Back in the 1960s and '70s, and even into the '80s, successive National government Agriculture Ministers and Trade Ministers…

Hallelujah moment

OPINION: The new Public Service Commissioner Sir Brian Roche has just had the hallelujah moment of the 21st century in…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter