Changing global trade ties
OPINION: I recently returned from a market visit overseas, including the United Kingdom and Europe. These are critical, historically important and increasingly high value markets for our red meat exports.
NZ onion growers are getting an extra $3 million this season for exports to the European Union, thanks to the early ratification of a free trade agreement (FTA).
An earlier entry into force will also see tariff savings of $43 million for NZ kiwifruit exporters, on top of the $3 million for onion exporters this season.
The European Union FTA Legislation Amendment Bill received Royal Assent two weeks ago, completing the process for New Zealand’s ratification of the deal with the largest trading bloc in the world.
Trade and Agriculture Minister Todd McClay says all parties involved in the committee process agreed to complete the legislative process by the end of March.
“This will mean the agreement can enter into force on the first day of the second month, 1 May, instead of July or August, which would have excluded much of this year’s kiwifruit and onion exports.”
Onions NZ chief executive James Kuperus says it is great news for New Zealand onion growers, coming in time for the last half of the export season.
“The EU is New Zealand’s largest export onion market. We estimate that about 35,000 tonnes would be exported to the EU, tariff free, post 1 May. This volume would be worth an extra $3m or so, thanks to the early removal of the 9.6% tariff,” Kuperus says.
He points out that New Zealand onion growers are having a better season this year.
“Quality is exceptionally good. This season’s onions will keep well and maintain their great taste.”
Most of the 2024 crop has now been harvested and stored with exceptional quality. Favourable weather conditions throughout the growth and harvesting stages have instilled confidence among growers regarding the quality, quantity, and storage capabilities of this year’s crop, notes Kuperus.
Export operations have already commenced, with shipments bound for European and North Asian markets, and plans in place for exports to Indonesia soon.
Kuperus says the resilience displayed by New Zealand’s farmers reflects their determination to overcome challenges.
However, costs are continuing to increase – especially around labour.
Kuperus says there are obviously sea freight issues, thanks to conflicts around the globe.
“The industry is working around these challenges but now it has had access to Indonesia re-confirmed, growers are focused on finishing the season on a high.”
Kuperus says the industry thanks government ministers and officials for their tireless efforts, with the EU and in Indonesia, in particular.
“It’s great to have the government’s help to open doors, deal with issues and pursue negotiations, most of which take years to conclude.”
Australian dairy farmers supplying Fonterra are getting an opening weighted average milk price of A$8.60/kgMS for the new season or around NZ$9.26/kgMS - NZ74c less than New Zealand suppliers, based on the current exchange rate.
Taranaki veterinarian Dr Rob Mills is the new president of New Zealand Veterinary Association (NZVA).
Input costs can make or break a season for farmers and electricity is one of the largest expenses.
Zespri says global sales for the 2024-25 season topped $5 billion on the back of strong demand and market returns.
Massey University is returning to the Fieldays with a future-focused, solution-driven theme, showcasing research that delivers practical advancements in agricultural efficiency, sustainability and longevity.
Newly appointed National Fieldays chief executive Richard Lindroos says his team is ready, excited and looking forward to delivering the four-day event next month.
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