Tuesday, 13 November 2018 11:55

Processors glum on China FTA review

Written by 
DCANZ chairman Malcolm Bailey. DCANZ chairman Malcolm Bailey.

Dairy companies are disappointed at news that the review of the China-New Zealand FTA is unlikely to result in improvement for dairy access.

The Dairy Companies Association of NZ (DCANZ) says this increases the importance of high quality and timely access improvements for dairy from the other trade negotiations currently underway.  

“Despite the close relationship NZ and China enjoy, NZ dairy exports to China continue to incur over a $100 million in tariffs each year, with the safeguards regularly triggered in early January,” says DCANZ chairman Malcolm Bailey. 

“Additionally NZ exporters of milk powder, cheese, and butter will be at a growing tariff disadvantage relative to Australian competitors until these safeguards end in three-five years”.    

DCANZ agrees with the assessment that NZ will have the best dairy access into China of any country when dairy safeguards end in 2024.  

However, five years will be a long time for NZ dairy exporters to be at a tariff-rate-driven commercial disadvantage.  So it is important for NZ to advance high quality and timely access improvements for other markets.

Beyond China, dairy exports remain highly constrained in their access to many markets.  DCANZ estimates that only 12% of global dairy consumption occurs in markets it would classify as open to trade.

 

More like this

No consensus as politicians mull Brexit

New Zealand exporters are holding their breath as UK politicians struggle to reach any sort of consensus on how or when Britain will leave the European Union.

The sad demise of Westland Milk

Selling Westland Milk Products to the Chinese dairy giant Yili may be the right thing but will be the sad end of the cooperative, says Barrytown farmer Richard Reynolds.

 
 

» Latest Print Issues Online

Milking It

Find me on Tudder

A Tinder-inspired app called Tudder is helping farmers to match their cattle with suitable mates — by swiping right on…

Cow toilet

A farm equipment manufacturer is developing a toilet for cattle and has revealed that cows can be trained to use…

 
 

» Connect with Dairy News