Red meat sector disappointed by US tariffs
New Zealand's red meat sector says it is disappointed by the United States' decision to impose tariffs on New Zealand exports.
Meat Industry Association chief executive Sirma Karapeeva says the outlook for beef in the US is expected to hold up for several years as that country continues to liquidate its herd due to drought.
She says beef exports out of the US are higher than they have been in the past.
"Likewise for lamb, with work that has been done to develop that market starting to pay off as a number of consumers there are looking for grass-fed NZ lamb, which is really good news for us because they are also one of the higher paying markets for that product," she says.
The signing of the UK/NZ FTA has opened the door for NZ with the removal of tariffs and what appears to be a slight improvement in the UK economy. Karapeeva says the UK also appears to have problems with farmers there unable to meet consumer demand for lamb, paving the way for NZ to backfill some of that shortfall outside the traditional times of Christmas and Easter.
However, a cloud hangs over what may or may not happen in the EU. This, Karapeeva says is because of proposed regulations around restrictions being placed on agricultural products that have been produced on land that has been deforested.
"The objective is really solid. No one wants to see global deforestation continued and we all agree that some protection needs to be put around land so that it is not deforested for production of agricultural ponds.
"That's not the issue. The issue is the way current rules seem to be drafted," she says.
Karapeeva says, depending on what rules come into force and when, it may be difficult to prove whether land had or had not been deforested. With that comes the complex and costly issue of traceability. She says the confusion and conflicting messages is very frustrating for NZ companies to plan how they will deal with supplying their products to the EU.
A global trade war beckons, which is bad news for a small open economy like New Zealand, warns Mark Smith ASB senior economist.
Carterton's Awakare Farm has long stood as a place where family, tradition and innovation intersect.
Fonterra says the US continues to be an important market for New Zealand dairy and the co-op.
Trade and Agriculture Minister Todd McClay says New Zealand's trade interests are best served in a world where trade flows freely.
New Zealand's red meat sector says it is disappointed by the United States' decision to impose tariffs on New Zealand exports.
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