India not ready to accept all NZ dairy products
New Zealand’s dairy sector cannot expect India to be a market for all its dairy products.
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.
For the first time, all the big names in agricultural drone technology are being brought together under one marquee at the National Fieldays.
Fonterra has announced an improved third quarter performance – with a profit after tax of $1.15 billion, up $119 million on the same period last year.
The Fieldays Innovation Awards competition has attracted a diverse and impressive array of innovations from across the primary industries, highlighting the growing importance of technology shaping the future of farming.
Coming to the fore following the carnage of Cyclone Gabrielle, Starlink became well known for providing internet access even in NZ's most inaccessible places.
From this winter farmers will have a greater choice of feed types and blend options than ever before, thanks to Farmlands' purchase of animal nutrition company SealesWinslow.
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.
OPINION: Imagine if the Hound had called the Minister of Finance the 'c-word' and accused her of "girl math".
OPINION: It's good news that Finance Minister Nicola Willis has slashed $1.1 billion from new spending, citing "a seismic global…