Sugar hit
OPINION: Winston Peters has described the decision to sell its brand to Lactalis and disperse the profit to its farmer shareholders as a 'short sighted sugar hit'.
"Russia has formally notified New Zealand of a temporary restriction of dairy imports from 61 of the 83 dairy plants approved for export to Russia," says Groser.
"Overnight, New Zealand officials in Moscow have confirmed that the restriction is now also being applied by Kazakhstan and Belarus. As the three countries are in a Customs Union, this is not unexpected."
"MPI and MFAT, along with the New Zealand Embassy in Moscow, are working to reopen the market, including by meeting with key food safety and health officials in Moscow," says Guy.
"New Zealand was aware last week that Russia had concerns about the Clostridium botulinum incident. On 7 August MPI suspended Fonterra dairy exports to Russia so that we could work through their concerns.
"No potentially contaminated product has been exported to Russia, Kazakhstan or Belarus from New Zealand. However Russia has taken a precautionary approach, and we are now working to reassure the appropriate agencies of all the steps being taken by MPI and MFAT on this matter."
Total dairy trade to Russia for 2012 was around $106 million, and $310,608 for Kazakhstan. There are virtually no New Zealand dairy products exported to Belarus.
But Labour's Trade spokesperson Clayton Cosgrove says the Russian trade ban on Fonterra products is set to last until next year and may have been avoided if Moscow Embassy officials had been able to provide safety assurances to Russia.
"It is 10 days since Russia imposed a ban on Fonterra products yet Tim Groser has changed his position twice - first denying reports was a ban, before finally confirming it yesterday.
"The trade ban has been widely reported in Russia by state-owned media as being in effect since August 4. Yet Mr Groser denied there was a ban on August 6. He has now confirmed there is one. Where did the confusion come from and why was it not sorted out?
"According to the Russian Federal Service for Consumer Rights Protection, New Zealand Embassy staff in Moscow did not address the watchdog's concerns in a meeting on August 7; four days after the story broke.
"No exhaustive answers were provided to questions posed by the agency. Given that there was no risk from Fonterra products in Russia it beggars belief that New Zealand officials could not provide safety assurances.
"Officials were too slow to reassure the Russians that there were no issues with Fonterra products. Russia now requires a new inspection of almost all New Zealand dairy products. This will not happen until next year at the earliest."
