Kiwi exporters are working hard to add value to their products, minister says.
Agriculture Minister Todd McClay who also has Trade portfolio has welcomed news of a possible trade deal.
US President Donald Trump says a deal with China is “done” after two days of high-level talks in London.
The overnight announcement comes as the government welcomes the state of the country’s agriculture sector.
The Ministry of Primary Industries’ Situation and Outlook report is projecting a double digit increase in New Zealand export revenues this year – though it warns about global uncertainty.
It estimates New Zealand’s agricultural export revenue could reach just under $60 billion by the end of June, up from a dip in 2023-4.
Agriculture and Trade Minister Todd McClay told Morning Report if a US-China deal has been done it would be “good news”.
At an OECD trade ministers meeting in Paris last week he had met with the trade ministers of both China and the US.
Both had then gone off for joint talks so some momentum had been building to try and find a solution to their tariffs impasse.
If things calmed down for international trade it would bring “welcome relief” for exporters and result in some “sensible decision-making”.
Exporters ‘go for value’
McClay said the remarkable growth in primary exports was very positive.
Dairy had enjoyed a solid season with a good supply of grass which had increased milk production.
The meat sector was performing well and for the first time $5 billion worth of kiwifruit had been exported.
Even the US market faced with tariff uncertainty was providing some opportunities for Kiwi exporters, citing the example of NZ King Salmon which has talked of increased sales at a higher price.
Kiwi exporters were working hard to add value to their products, McClay said. One example was selling ready to eat burger patties to China which resulted in greater returns for farmers.
“So we’re seeing Kiwi exporters go for value, not competing on price anywhere as much as they used to.”
On building in sustainability
A government-backed grass certification standard for dairy and meat exports had been launched at Mystery Creek Fieldays yesterday, McClay said.
This would be highly desirable for markets in China, other parts of Asia and the Middle East, McClay said.
“Grass fed now is increasingly wanted by consumers and they’re willing to pay more.”
On sustainable products, Groundswell has been calling for New Zealand to exit the Paris Agreement on Climate Change.
McClay said that was not going to happen mainly because it would make exports to many markets untenable.
He believed Groundswell and others were worried about higher costs and lower production if they adopted sustainable measures.
“We’ve been really clear – we think through technology and other things we can meet these obligations without putting farmers out of business.”
Alternatives to farmers going into the Emissions Trading Scheme were being worked on and would be announced soon.
McClay said the requirement of reducing methane by 10 percent by 2030 was on track to be met.
“So it shows farmers are willing to do it but we have to lean heavily into technology rather than just planting trees.”
A number of products, known as methane inhibitors, have been developed already although they might have to overcome consumer resistance.
McClay said anything developed would have to go through rigorous scientific testing.
There would be a range of solutions developed and farmers would decide which ones they wanted to pick up.
“The overseas customers through the dairy company should be paying for this, not the New Zealand farmer.”
You can now read the most important #news on #eDairyNews #Whatsapp channels!!!
🇺🇸 eDairy News INGLÊS: https://whatsapp.com/channel/0029VaKsjzGDTkJyIN6hcP1K
