New Certification Fuels Export Push as Kiwi Dairy & Meat Target Value-Add.
New Zealand’s government-backed grass-fed certification scheme is poised to unlock a significant opportunity for the nation’s largest exporters to deepen their penetration into China’s lucrative premium market. Officially launched at Fieldays, this voluntary scheme establishes a clear definition for grass-fed meat and dairy products, specifically designed to compete at the high end of international markets. Producers meeting this new standard can display the certification, enabling worldwide marketing and a distinct competitive edge.
The “grass-fed” story is central to New Zealand’s marketing strategy, aiming to differentiate its products from those of nations with predominantly grain-fed or barn-raised dairy cows and beef cattle. While this unique selling proposition offers a strong brand identity, it faces stiff competition from other prominent pastoral farming nations, including Ireland, parts of Europe, and Australia. This underscores the need for robust, government-backed standards to solidify New Zealand’s claims in the global dairy market.
The recent China Business Summit in Auckland, following Prime Minister Christopher Luxon’s official visit to China, highlighted the strategic importance of this relationship. China remains New Zealand’s largest trading partner, with substantial goods and services exchanged. Despite a slight slowdown in China’s growth rates, its GDP still expanded over 5% in the second quarter, affirming its continued economic power. Luxon emphasized New Zealand’s commitment to deepening its relationship with China while simultaneously diversifying its global trade and investment base.
Trade Minister Todd McClay revealed that the grass-fed scheme originated from discussions at last year’s China International Import Expo, where New Zealand companies realized the need to formally substantiate their grass-fed claims amidst a crowded market. Fonterra’s Global Ingredients President, Richard Allen, expressed bullishness on the Chinese foodservice sector, noting that China’s “Healthy China 2030” plan recommends a significant increase in daily dairy intake, potentially boosting Chinese dairy consumption by 700,000 tonnes by 2030—a massive opportunity for New Zealand dairy exports.
For key players like Fonterra and Silver Fern Farms, this grass-fed certification is seen as essential for differentiation and adding value in a competitive market where South American exports, for instance, dwarf New Zealand’s volume into China. The focus for New Zealand dairy is on sophistication in market presence, leveraging its natural nutrition story, and deepening consumer connection. Despite global trade tensions like the US-China trade war affecting some sectors, the strong demand for protein suggests a resilient market for high-quality dairy products underpinned by verifiable production attributes.
Source: BusinessDesk: The grass-fed boost to NZ’s China brand a ‘significant opportunity’
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