Farmers in mood to spend as farmgate prices rise
Don't be surprised if there is a bit more spending at the Central Districts Field Days this year.
The Meat Industry Association (MIA) and Beef + Lamb New Zealand (B+LNZ) say they welcome the announcement that the European Union’s Deforestation-free supply chains Regulation (EUDR) will be delayed by 12 months.
The red meat sector has been advocating strongly for a delay and a review for almost two years.
The two industry bodies say the announcement shows that the haste with which the regulation was designed and implemented was going to disrupt global supply chains and threaten $200 million worth of NZ exports.
MIA chair Nathan Guy says while the red meat sector supports the intent to tackle global deforestation, both MIA and B+LNZ believe the EUDR has been poorly designed, poorly drafted, and is not fit for purpose.
“The EUDR would impact approximately $200 million worth of beef and leather exports to the EU," Guy says.
“Instead of incentivising the trade of deforestation-free products, the EUDR sees exports from countries with extremely low instances of deforestation, like New Zealand, treated the same as countries where there is a high-risk of this occurring.
“New Zealand beef exports’ sustainability credentials need to be formally recognised and treated differently to competitors with deforestation issues.”
B+LNZ chair Kate Acland says New Zealand has strong sustainability credentials and is committed to preserving forests.
“Sheep and beef farms contain approximately 25 percent of the total native vegetation (tussock, native bush, and scrubland) in New Zealand, comprising 2.8 million hectares.
“This should be recognised by New Zealand’s trading partners, particularly those we have a Free Trade Agreement with.
“Unlike some of our competitors, New Zealand has a significant trend of afforestation, not deforestation. This regulation was not appropriate for New Zealand’s situation and risks adding additional unnecessary cost into the supply chain.
“Maintaining market access settings for New Zealand’s beef is critical with approximately 60 percent of export revenues flowing through to farmers.”
B+LNZ’s UK-based Regional Manager for the EU and UK, as well as in market activity from NZ-based staff, has been integral to securing the delay, she says.
“New Zealand’s voice was key in helping EU regulators understand that even their most sustainable trading partners would struggle to comply with these regulations.
“This is not the first time the sector has been successful in its advocacy efforts to address non-tariff trade barriers with the EU and follows the successful exclusion of sheep products from the EUDR in 2022," she says.
“The desire to extend EUDR to sheep products still exists in some EU circles and we will continue our advocacy efforts in this space.
“B+LNZ and MIA thank the Minister for Trade and Agriculture, Hon Todd McClay, and New Zealand government officials for their hard work in advocating for this outcome. We look forward to working together to secure a more permanent solution.”
Through its new partnership with New Zealand Landcare Trust, Fonterra has committed to funding ten $25,000 grants for wetland restoration in communities across the country.
The chair of the Dairy Environmental Leaders (DEL) says the country's dairy farmers are at the forefront of environmental management.
On the edge of the hot, dry Takapau plains, Norm and Del Atkins have cultivated a small but exceptional herd of 60 Holstein Friesian cows within their mixed breed herd of 360 dairy cows.
The DairyNZ board and management are currently trying to determine whether, and to what degree, their farmer levy payers will support any increase in their levy contributions.
Milk production is up nationally, despite drought conditions beginning to bite in some districts, according to the latest update from Fonterra.
Dry conditions are widespread but worse in some places, with rain and drought affecting farms just a few kilometres away.
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