Wednesday, 09 April 2025 10:55

NZ-India free trade talks facing dairy dilemma

Written by  Peter Burke
Dairy Companies of NZ executive director Kimberly Crewther. Dairy Companies of NZ executive director Kimberly Crewther.

Exports of dairy products will be included in the negotiations New Zealand has with India on a free trade agreement.

However, in the first instance such exports may not feature commodities like whole milk powder, rather more sophisticated dairy products such as ingredients and items for the food service sector.

Following the recent trade mission led by Prime Minister Christopher Luxon, the Government has launched a period of public consultation to get feedback from businesses, NGOs and members of the public on what should be included in the negotiations.

Trade Minister Todd McClay, who's been to India five times since becoming Minister, says with a population of 1.4 billion people, India holds significant potential for NZ and adds it will play a pivotal role in the Government's goal to double NZ's exports by value over the next 10 years.

India is the world's largest milk producer, accounting for 24% of global milk production. It does however import a small amount of dairy products, buying $50m worth of products from NZ, making up 13% of total Indian imports.

The issue of including dairy in an FTA is seen by some commentators as very challenging, but Kimberly Crewther, the executive director of the Dairy Companies Association of NZ (DCANZ) sees opportunities to export some dairy items that would benefit both countries.

She says the fact that negotiations have been launched with the aim of any FTA being 'comprehensive' is a positive sing. Crewther says there are a range of areas in the dairy sector where the two counties could work positively together, some of which are outside trade such as animal health and biosecurity.

"Both of our countries have deep interests in that space, so there is a lot we can do together to advance the work we are doing jointly."

Products On Offer

Kimberly Crewther says NZ produces some 1500 different dairy products and specifications and it's some of these that India may find attractive to import.

"We are talking about dairy ingredients; products that go through to support further food manufacturing or food service applications which can have mutual benefits in terms of economic development," she told Rural News.

"The supply of NZ ingredients can help create new businesses, job creation and economic activities within that market," she says.

For decades, the NZ dairy sector has faced opposition and restrictions when it comes to obtaining FTAs with many countries. The EU, Britain, Ireland, Korea, Japan, Canada, and China - the list is long because these countries have many small dairy farms and dairy farmers with significant political power, which governments can't afford to ignore.

Despite this, Crewhter says NZ has been smart around the negotiating table.

More like this

Editorial: Elusive India FTA

OPINION: Without doubt, a priority of the Government this year will be to gain traction on the elusive free trade deal with India.

Featured

Awards celebrate rural sports talent

At a gala evening held at Palmerston North in March, the sporting and rural communities came together to celebrate the Ford New Zealand Rural Sports Awards.

New CEO for FAR

The Foundation for Arable Research (FAR) has appointed Dr Scott Champion as its new chief executive.

New genetic tool for beef farmers

Beef + Lamb New Zealand (B+LNZ) has launched a powerful new tool to help commercial beef farmers select the best bulls for their farm businesses.

Bremworth CEO departs

Three weeks on from Bremworth’s board overhaul, the carpet maker’s chief executive Greg Smith is stepping down.

National

Machinery & Products

Buhler name to go

Shareholders at a special meeting have approved a proposed deal that will see Buhler Industries, the publicly traded Versatile and…

Grabbing bales made quick and easy

Front end loader and implement specialist Quicke has introduced the new Unigrip L+ and XL+ next-generation bale grabs, designed for…

» Latest Print Issues Online

The Hound

Risky business

OPINION: In the same way that even a stopped clock is right twice a day, economists sometimes get it right.

Should've waited

OPINION: The proposed RMA reforms took a while to drop but were well signaled after the election.

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter