B+LNZ calls for government action as sheep and beef farm sales to forestry climb
Red meat farmers are urging the Government to act on the growing number of whole sheep and beef farm sales for conversion to forestry, particularly carbon farming.
The red meat sector is adopting the New Zealand Government’s ‘wait and see’ approach as it braces for the second Donald Trump presidency in the US.
With trade tariffs likely to be high on the incoming administration’s agenda, Beef + Lamb New Zealand says its closely monitoring developments in one of its most valuable markets.
It notes that Trump made campaign comments about increasing trade tariffs, but it's unclear how these will translate into policy when he takes office on January 20.
“For now, B+LNZ supports the New Zealand Government’s ‘wait and see’ approach,” it says.
B+LNZ says that thanks to its trade and relationship manager Jason Frost, based in the US, its well-positioned to stay informed of any developments.
“Frost’s strong industry connections ensure we receive timely insights,” B+LNZ says.
Additionally, B+LNZ chair Kate Acland will be heading to the US early next year to strengthen partnerships and ensure the New Zealand red meat industry’s interests remain front and centre.
“The US is an incredibly important market for us – it’s our largest beef market, second-largest lamb market, and currently our largest red meat market overall,” says Acland.
“Over 85% of our beef exports to the US are lean cuts that blend with fattier American beef to create the ground beef essential to the iconic American burger. This blend supports both countries by meeting consumer demand while keeping costs steady for US consumers and farmers.”
Currently, New Zealand beef exports benefit from a WTO-specific tariff rate quota, allowing 213,402 tonnes of beef and veal to enter the US each year at a lower tariff rate (primarily US 4.4c/kg). Exports above this quota face a much higher tariff of 26.4%, which applies to competitors without similar preferential access under a WTO quota or Free Trade Agreement.
Other New Zealand red meat products face Most Favoured Nation (MFN) tariff rates, which vary by product. For instance, wool can face up to a 25% tariff, while pet food has no tariff.
“We work closely with the New Zealand Government and officials on these issues,” says Acland.
“While our focus is on building and strengthening key relationships in the US, we also know that New Zealand exports to over 100 markets and that gives us options; exporters are good at adapting to meet demand.”
B+LNZ says it will keep farmers updated as more information becomes available.
“We understand the US market's importance to farmers and are committed to maintaining our strong position to meet American demand.”
Newly elected Federated Farmers meat and wool group chair Richard Dawkins says he will continue the great work done his predecessor Toby Williams.
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Six industry organisations, including DairyNZ and the Dairy Companies Association (DCANZ) have signed an agreement with the Ministry for Primary Industries (MPI) to prepare the country for a potential foot and mouth outbreak.
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