New Zealand and China signed a free trade agreement in 2008. When this agreement was signed, both nations hoped it would bring increased trade. We have surpassed the expectations of even the most positive analysts. Not only have we increased two way trade, China is now New Zealand’s largest trading partner, even surpassing Australia. And the relationship between the two countries has grown stronger.
The Prime Minister’s trade delegation in April showed that at the highest level New Zealand is committed to furthering our relationship.
China has shown itself to be a land of opportunity in terms of agricultural production. The statistics are amazing, and almost speak for themselves. With one fifth of the world’s population, China has become a dairy consuming country.
Ten years ago the Chinese population consumed an average 8kg of dairy product per person per year. Today the figure is closer to 30kg.
I understand that by 2020, 60 billion litres of milk will be needed to meet local demand. The market potential is astonishing, and New Zealand wants to be involved. It is in both of our interests if we work together to help China meet this goal. There is no way New Zealand can supply 60 billion litres alone.
For context, Fonterra, New Zealand’s largest dairy company, aims to increase production on its farms in China to 1 billion litres by 2020 – only 2% of what is required to feed the Chinese domestic population.
New Zealand (4.5 million pop.) feeds 40 million and exports to 200 countries. For 100 years we have made our way in the world by selling what the rest of the world wants and needs – high quality primary produce. Our reputation is as a trusted trading partner with integrity. We are proud of our reputation, and committed to upholding it. This is why we have developed world leading food safety, biosecurity, and animal welfare systems.
We are always working to improve the productivity of our pastoral land, but we acknowledge we do not have an endless supply of land to continue growing our food production base.
So we are looking to international partners to work with, and have a genuine interest in working with China to develop your agricultural industry, and the systems such as food safety that support these industries. Working together we can have a win-win situation, good for New Zealand and good for China.
In April this year Minister Han and I signed the ‘Strategic Plan on Promoting Agricultural Cooperation’ that underpins our working relationship; that’s why I am here now with this delegation. We want to build on this solid foundation of cooperation between our two countries.
I have brought with me to China a high quality delegation representing agricultural businesses and research institutes. The expertise and experience of the people with me today is amazing. I encourage you all to engage as much as possible here today. People-to-people relationships are at the heart of any partnership, and something New Zealand and China need to continually work at.
Again I acknowledge the importance to New Zealand of the relationship with China. While this relationship has grown strongly especially during the last few years, it is important to note that China has a strong place in New Zealand’s history. From mining for gold nearly 150 years ago to working in market gardens in my home town today, China has always had a strong place and a strong reputation in New Zealand’s primary industries.
This is acknowledged in my hometown of Levin, where in the main street there is a bronze statue of a market gardener holding a hoe. China is firmly a part of my local community and New Zealand as a whole. Let’s get down to business.
