NZ Red Meat Sector Watches US Tariff Decision as Sheepmeat Exports Boom
New Zealand red meat exports are booming but a pending decision in the White House, Washington D.C., could dent sheepmeat earnings.
Both the Meat Industry Association (MIA) and Beef + Lamb New Zealand say that export growth and action on non-tariff barriers are critical to the sector's future.
Nathan Guy, independent chair of the MIA, says trade underpins the New Zealand economy and must remain a priority for the next Parliament.
"The red meat sector is New Zealand's second-largest goods exporter and is forecast to generate $14.1 billion (including wool and venison) in export revenue this coming year," Guy says.
He says new trade agreements, alongside practical action to reduce non-tariff barriers, will help the sector grow that value further.
Export Diversification Strengthens Resilience
Guy says Kiwi exporters reach more than 100 markets across the globe, and that diversity helps the sector navigate volatility in global markets.
"Strengthening our trade ties will improve our resilience by giving our exporters further options," he says.
“Non-tariff barriers are still estimated to cost the sector about $1.5 billion each year. Reducing those barriers would deliver benefits from farms and processing plants through to local services and households," he adds.
Red Meat Sector Drives the Economy
Beef + Lamb New Zealand chair Kate Acland says the sector's national impact is significant, with recent research showing it contributes $17.5 billion to New Zealand's gross domestic product (GDP) each year and underpins more than 120,000 jobs.
“Free trade agreements are good for the red meat sector and good for the New Zealand economy," Acland says.
“With more than 90 per cent of the sector’s goods exported, a clear and ambitious trade strategy is critical.
“BERL research shows the sector generates $12.8 billion in export earnings annually, which flows through our economy and has a powerful multiplier effect that sees $133 million a day being spent across New Zealand. “
“That spending supports thousands of businesses and helps underpin the tax revenue and economic stability that benefit the whole country.
“New Zealand has a strong tradition of cross-party support for trade. Maintaining that approach will be vital for the red meat sector and for New Zealand’s future success.”
