Significant growth in New Zealand's red meat sector

The recent agreement in principle (AIP) signed between New Zealand and the United Kingdom offers improved access to the UK market for high quality New Zealand beef and greater confidence in the EXPORT of sheep MEAT.

New Zealand is poised to confidently re-enter the UK meat market with the many benefits offered by the recently signed Agreement in Principle (AIP) between the parties. The Meat Industry Association (MIA) and Beef + Lamb New Zealand (B + LNZ) joint statement says that New Zealand farmers, processors, exporters and the economy will benefit from increased export earnings following a Free Trade Agreement (FTA) trade deal .

Key features of the AIP include improved access to high quality New Zealand beef and greater confidence in mutton exports. The New Zealand red meat sector has not had quota-free access to the UK market since the UK joined the European Union in 1973.

While there are still some issues that need to be addressed, Sam McIvor, chief executive of B+LNZ, says the AIP is an important step towards a free trade agreement between the two countries and relies on strong trade ties between the United Kingdom. and New Zealand.

“This allows British consumers to have access to the best seasonal produce all year round, especially during busy periods such as Easter and Christmas, which are the UK's off-season meat production times.”

Sirma Karapeyeva, chief executive of MIA, says the free trade agreement will enable New Zealand companies to sell a wider range of high-quality products to the UK market, especially beef.

“After the UK left the EU, New Zealand's 1,300 tonnes of beef quota was split between the UK and the EU, leaving New Zealand with only 454 tonnes of beef entering the UK. Outside this quota, New Zealand's beef exports were subject to tariffs of up to 70 percent, meaning there was little to no out-of-quota trade. Improved access will allow companies to deepen and expand relationships and, most importantly, compete on an equal footing with our international competitors. Although the red meat sector is frustrated by the length of the transition period and the quality of access is often determined by the details of trade agreements, we recognize that these have been difficult negotiations and we want to acknowledge the hard work of the negotiators and the minister.

Once signed and ratified, the deal will result in New Zealand beef and mutton exports initially entering the United Kingdom under a tariff quota (TRQ) regime. New Zealand will be allowed to gradually increase its export tonnage over a 10-year transition period, while the quota will eventually be eliminated entirely.