Saturday, 16 November 2024 12:43

Red meat sector's 'wait and see' approach in the US

Written by  Sudesh Kissun
Beef + Lamb NZ chair Kate Acland. Beef + Lamb NZ chair Kate Acland.

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.”

More like this

Changing global trade ties

OPINION: I recently returned from a market visit overseas, including the United Kingdom and Europe. These are critical, historically important and increasingly high value markets for our red meat exports.

EU regulations unfairly threaten $200m exports

A European Union regulation ensuring that the products its citizens consume do not contribute to deforestation or forest degradation worldwide threatens $200m of New Zealand beef and leather exports.

Featured

Big return on a small investment

Managing director of Woolover Ltd, David Brown, has put a lot of effort into verifying what seems intuitive, that keeping newborn stock's core temperature stable pays dividends by helping them realise their full genetic potential.

Editorial: Sensible move

OPINION: The Government's decision to rule out changes to Fringe Benefit Tax (FBT) that would cost every farmer thousands of dollars annually, is sensible.

National

Machinery & Products

» Latest Print Issues Online

The Hound

Overbearing?

OPINION: Dust ups between rural media and PR types aren't unheard of but also aren't common, given part of the…

Foot-in-mouth

OPINION: The Hound hears from his canine pals in Southland that an individual's derogatory remarks on social media have left…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter