The rural lobby organisation has urged diplomats and export companies to be «quick off the block and first in line» to push New Zealand’s agenda.
While Britain leaving the European Union would create a considerable degree of political and financial uncertainty, new opportunities needed to be considered and it could be a great chance to work with lamb producers in the United Kingdom to get better outcomes for both countries, president Dr William Rolleston said.
The key thing for farmers was assessing how the change would affect trade to Britain as well as Europe and what that meant for free trade negotiations.
New Zealand primary exports to Britain were at 3% and 11% to Europe. When Britain entered the EU 43 years ago, it was the recipient of 40% of exports. Prior to that, in the 1950s, more than 80% of New Zealand exports went to Britain.
Beef + Lamb New Zealand and the Meat Industry Association of New Zealand were both concerned about the future of sheep and beef exports to the UK and the EU.
Sheep and beef trade to both the UK and EU were inextricably linked through quota access and both were likely to be affected, Beef + Lamb NZ chief executive Sam McIvor said.
The EU was New Zealand’s most valuable market for red meat and associated co-products, accounting for more than $NZ2billion in trade last year.
New Zealand’s sheepmeat quota to the EU of about 228,000 tonnes represented more than half of our sheepmeat exports. The UK took half of that.
As the UK negotiated its exit from the EU over the next couple of years, it would likely be negotiating how much of those quotas would be transferred solely to them and on what terms, MIA chief executive Tim Ritchie said.
It would be Beef + Lamb NZ and MIA’s «top priority» to work with the New Zealand Government to ensure New Zealand’s access to the EU and UK was protected during this transition.
Under WTO rules, New Zealand expected its overall levels of sheep and beef access to both the EU and UK would remain the same, Mr McIvor said.
What was unclear was the impact on the market dynamics in each of the UK and remaining EU market envelopes, he said.
Addressing Federated Farmers meat and fibre group yesterday, chairman Rick Powdrell said now was not the time to «sit back and watch what develops».
It was important to remember the UK marketing strategy would «more than likely be turned upside down».
«For us in this room our lamb markets to the UK face the biggest risk. We have a product that presently is not rewarding farmers for their effort. Preservation is the minimal acceptable outcome,» he said.
Speaking to Federated Farmers dairy industry group, dairy chairman Andrew Hoggard said dairy exports now to the UK were «pretty minimal».
«Whilst we have quota, the tariff rates do make it uncompetitive against cheaper imports from Ireland and the Netherlands.
«If we are able to quickly organise trading terms with the UK that are at the same level as the EU, then we certainly have good opportunity. Under WTO rules, existing agreed access can’t be downgraded.
«However, on the downside, we have now just lost an ally around the EU table in negotiating a free trade deal with the EU. With all the global uncertainty, this may have a negative impact on global demand,» he said.
The economic fallout was interesting because it showed the impact caused by trade barriers. Mr Hoggard hoped that it would result in more focus on the World Trade Organisation which could only be good for New Zealand, he said.
Source: OtagoDailyTimes
http://www.odt.co.nz/news/business/388355/time-push-nzs-cause-farm-lobby