Latest news with #McClay
NZ Herald
7 days ago
- Business
- NZ Herald
EU deforestation rules: NZ beef and wood exporters may face extra costs
The regulation was amended to exclude sheep products in 2022, and its implementation was delayed last year. But the beef, meat and wood processing sectors were preparing for the new requirements. It was announced this week that the Meat Industry Association, Beef + Lamb and an analytics firm were developing aerial and satellite-generated farm maps, as well as compiling the movement of livestock. The New Zealand Deforestation Map initiative was to help the sector prepare the documents and data needed with each shipment of their products to the EU from December 31. The regulation was expected to affect $213 million in beef and leather exports to the EU and $100 million in wood products. Minister 'banging on the table' for exemption Agriculture Minister Todd McClay speaking at the Red Meat Sector Conference in Christchurch on Tuesday. Photo / RNZ, Monique Steele McClay, the Minister for Agriculture, Forestry and Trade and Investment, told the Red Meat Sector Conference in Christchurch on Tuesday that companies should prepare for the incoming rules. 'Well done for preparing,' he said. 'I'm so very sorry this cost has been put upon you, because in my view it is unnecessary. 'Since we came to government, I have consistently said to the European Union we have standards, the equivalent to yours if not higher, so you should not be putting costs upon every single producer in New Zealand, and we have been looking for ways to find exemptions or to changes, or to get the cost down.' McClay wrote to the European Commission last year and said he met one of the commissioners in Brussels last month, who suggested other countries were also trying to gain exemptions, such as France. 'You'd figure when the EU member states don't like something, perhaps there's a change coming,' McClay said. New Zealand already had rules protecting native forests, and penalties for offending. 'They [the EU] have nothing to worry about in New Zealand. 'You're not allowed to deforest native forests in New Zealand. 'Ultimately, I, as the Government, can give an absolute assurance that it doesn't happen because we prosecute, we go and find these things.' He said the new regime was likely to impose 'unreasonable' costs on producers, creating a barrier to trade, despite New Zealand's free-trade agreement with the EU. 'So you need to keep preparing in case they don't get there, but we're gonna keep banging the table.' Mapping farms and tracking livestock Industry analytics firm Prism Earth is a partnership between Silver Fern Farms and Lynker Analytics, launched to meet the increased demand for carbon traceability, its website says. It uses satellite imagery, aerial photography, remote laser sensing and artificial intelligence to map farms and identify grazing areas and forests. It also tracks animals via the National Animal Identification and Tracing (Nait) programme. Managing director Matt Lythe, who also spoke at the red meat industry event, said the challenge was to accurately understand the conversion of land and animal movements. 'Every consignment will need to have a due diligence statement that essentially monitors every Nait tag, every animal and its passage through the New Zealand landscape and the grazing process through all its dimensions, and whether it's past deforested land or not. 'There are some record-keeping requirements that need to be held in place for five years, so it's a reasonably onerous obligation on us all to achieve.' Its modelling showed there were just under 14,000 hectares of beef production farmland to October 2024 from which forests had been removed, and 1600 'affected Nait' farms. 'So headline number, just under 14,000 hectares have had forest removal,' he told the conference. The main types of removal were pine rotation, followed by woodlots, then shelterbelts. The modelling showed 32 hectares of indigenous forest were removed, affecting 24 farms. 'I've highlighted the indigenous loss as really the key critical area that we're focusing on. 'Thirty-two hectares of indigenous forest in New Zealand has been removed that breaches that European rule.' Owners of farms deemed to have been deforested would need to demonstrate to Prism that the removal of trees was not to convert land for agricultural use. Lythe said farmers could mitigate the risk of cattle crossing into deforested land through fencing or other controls, and demonstrate that the removal of trees was due to either animal welfare, erosion control, health and safety or conservation and biodiversity protection. The New Zealand Deforestation Map will be updated before December and updated every year. The Meat Industry Association is then expected to engage with the wider sector. - RNZ
The Star
23-07-2025
- Business
- The Star
A sweet hit in New Zealand
JOHOR BARU: Johor is looking to tap into New Zealand's growing interest in tropical fruits from Malaysia, especially the MD2 pineapple variety, as part of efforts to expand its agricultural exports. State agriculture, agro-based industry and rural development committee chairman Datuk Zahari Sarip said the opportunity arose during a recent working visit to the island nation with Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi. He said he was part of the Malaysian delegation where they met with New Zealand's Agriculture, Forestry, Trade and Investment Minister Todd McClay at the New Zealand Parliament in Wellington. 'McClay expressed strong interest in Malaysia's halal industry and welcomed closer strategic ties not only in halal certification, but also to position Malaysia as a gateway to the Asean market, which has over 600 million people.' He said McClay was receptive about Malaysian agricultural produce, particularly tropical fruits like pineapples, and had opened the door for investment opportunities for Malaysian companies in New Zealand. Zahari said Ahmad Zahid had suggested that Johor take the lead in seizing the opportunity. 'I will hold discussions with entrepreneurs and relevant agencies to explore this potential further,' he said. Zahari said Johor has 10,558ha of pineapple plantations, producing 347,490 metric tonnes annually, with an estimated value of RM920mil. 'Despite this, our production is still unable to meet the increasing demand from Europe, the Middle East and other international markets,' he said. Zahari also said that during the trip there, he met with a Simpang Renggam-born entrepreneur who has been running a business in New Zealand for about 18 years. 'During the meeting, we discussed the potential for snack products from Johor to get into the New Zealand market.' He said a series of follow-up meetings would be held with government agencies under the Johor Agricultural Export Market Strengthening Committee to explore the opportunity in greater detail. Zahari also highlighted Johor's achievements in the agro-based industry (IAT) sector with the state recording 1,604 registered IAT entrepreneurs last year. 'Johor-based IAT entrepreneurs accounted for 27% of the national total under the Agriculture Department. 'That same year, our IAT sector recorded nearly RM348.2mil in sales, which contributed to 29% of Malaysia's total sales,' he said.
Scoop
22-07-2025
- Business
- Scoop
UAE Deal Passes, Unlocking $500 Billion Market
Minister for Trade and Investment Minister of Agriculture The NZ-UAE Comprehensive Economic Partnership Agreement (CEPA) legislation has passed into law today, clearing the way for Kiwi exporters to tap into a $500 billion market that imports 90 per cent of its food, Agriculture, Trade and Investment Minister Todd McClay announced. 'The NZ-UAE CEPA delivers real benefits for New Zealand exporters, lowering costs, increasing access, and securing a stronger presence in the Middle East,' Mr McClay says. This is the highest-quality, and fastest, agreement negotiated by New Zealand that will immediately remove tariffs on 98.5 per cent of New Zealand's exports upon entry to force, rising to 99 per cent in three years. 'This high-quality trade agreement builds on New Zealand's strengths. UAE consumers are actively seeking safe, fresh products from around the world and are willing to pay more for them. This agreement gives New Zealand exporters an opportunity to lead in this competitive market,' Mr McClay says. Two-way trade between New Zealand and the UAE was worth $1.35 billion last year, and the CEPA will accelerate growth by reducing red tape, boosting services trade, and supporting investment links. 'Trade agreements are about opening doors and levelling the playing field for New Zealand exporters,' Mr McClay says. 'The CEPA is another step toward achieving the Government's goal of doubling the value of exports in 10 years. Growing our trade relationships helps boost the economy, lift incomes, and provide the public services Kiwis deserve.' The CEPA will enter into force following ratification procedures by both parties.
Scoop
19-07-2025
- Business
- Scoop
New Zealand Reaches Deal With Canada In Long-Running Dairy Trade Dispute
Canada has agreed to allow access for New Zealand dairy products following a long running trade dispute, Trade Minister Todd McClay says. Dairy exporters had been blocked from the Canadian market, despite the move being in breach of the CPTPP trade agreement. On Friday morning McClay announced an agreement had been reached. He says Canada has committed to making changes to its dairy quotas which will deliver up to $157 million to New Zealand dairy exporters. New Zealand initiated formal dispute settlement proceedings over restricted access to the Canadian market for dairy exports under the CPTPP in 2022. A dispute panel found in New Zealand's favour, however, Canada failed to fully comply with the panel's ruling. New Zealand threatened further action last year including the imposition of retaliatory tariffs against Canadian exporters. "The government is pleased that this dispute has now been settled, and New Zealand exporters are guaranteed better access to the Canadian market," McClay said. Canada said the changes have been negotiated with "close consultation" with its dairy sector and the amendments will result in "minor policy changes". In a statement Canadian Agriculture minister Heath MacDonald said it was a "mutually satisfactory" resolution. Under the agreement, Canada has committed to changing the way it administers its dairy quotas under CPTPP, including faster and more efficient access to quotas for New Zealand exporters, reallocation of underused quotas, and penalties for importers who misuse quotas. "The CPTPP is a world leading agreement that unlocks significant opportunities for all parties, but its obligations must be upheld. Today's agreement reinforces support for the rules-based trading system," McClay said. He added Canada was a long-stranding friend and trading partner of this country and "constructive engagement" had brought about a resolution. Last year ACT Party trade spokesperson Dr Parmjeet Parmar called the dispute a "betrayal of our friendship". She said if Canada could not comply with the CPTPP, it should be "booted out of the deal". Deal welcomed Fonterra is pleased to see the end of a long running trade dispute involving NZ and Canada. Fonterra global external affairs director Simon Tucker told Midday Report Canada has a very protected dairy market and it has taken what he calls "dogged determination" by governments and officials to force Canada to comply with its obligations. He said dairy farmers could sell millions of dollars of products into Canada but it is only a small part of the Fonterra sales which has revenues of more than $20 billion a year. "Canada is one of those high value niches around the world which would be good for Fonterra. "This was the right to do; to use the disputes settlement over this issue. We won, and then governments and officials have worked hard to force Canada into compliance. "This is the right outcome." Tucker said the win opens up opportunities for New Zealand to pursue further moves especially around Canada's protein subsidies which are considered unfair. ExportNZ has also welcomed the deal, saying it will unlock higher export value for Kiwi business. Executive director Josh Tan said the outcome was a win for New Zealand dairy exporters, and a win for the rules-based trading system. "It's essential that our trade agreements function as they were agreed to - particularly in the current global trade context. Likewise, our trade partners should ensure they are playing by the rules." Canada was a valuable trading partner for New Zealand, Tan said. The Dairy Companies Association of New Zealand congratulated the Government for settling the dispute, which was first initiated under the previous Government. Executive director Kimberly Crewther said the outcome proved that dispute mechanisms were still a valid and viable approach to be taken. She said Ministry of Foreign Affairs and Trade estimated $157 million of trade revenue was not able to be used, due to breaches of the CPTPP. "Previously, it was giving the majority of export licences under these quotas to its own processors, many of whom had very little interest in seeing imports occur and they could hold on to those export licences and not use them without any penalty," Crewther said. "The changes introduce penalties... so that's a good improvement and we hope that it will lift the utilisation rates." She said Canadian dairy farmers received subsidies, which brought low prices to global dairy trading among nations without farmer subsidies, like New Zealand. "They're skewing the global dairy trade playing field quite significantly," she said. "Unfortunately, Canada's not a stranger to having these sizeable impacts on trade opportunities for New Zealand exporters. "Canada has a reputation for being amongst the most protectionist of dairy countries in the world, and they do that in a way that makes their market very difficult to access even with these CPTPP quotas, it remains 95 percent closed." Crewther said New Zealand had "virtually no tariff protections" on dairy into the market, and openly imported dairy into the country. "So we operate on an open basis, our farmers are not receiving direct subsidies and we are we're trading fairly in the world." She said its first preference is an on-demand licensing system which ensured those applying for the quotas would utilise them appropriately. "It's really important to hold them to account. This case has shown that dispute settlement can and does work, and it's important that New Zealand continues to move forward and uses these mechanisms where we need to."
NZ Herald
17-07-2025
- Business
- NZ Herald
New Zealand reaches deal with Canada in long-running dairy trade dispute
New Zealand initiated formal dispute settlement proceedings over restricted access to the Canadian market for dairy exports under the CPTPP in 2022. A dispute panel found in New Zealand's favour; however, Canada failed to fully comply with the panel's ruling. New Zealand threatened further action last year, including the imposition of retaliatory tariffs against Canadian exporters. 'The Government is pleased that this dispute has now been settled, and New Zealand exporters are guaranteed better access to the Canadian market,' McClay said. Under the agreement, Canada has committed to changing the way it administers its dairy quotas under CPTPP, including faster and more efficient access to quotas for New Zealand exporters, reallocation of underused quotas, and penalties for importers who misuse quotas. 'The CPTPP is a world-leading agreement that unlocks significant opportunities for all parties, but its obligations must be upheld. Today's agreement reinforces support for the rules-based trading system,' McClay said. He added that Canada was a long-standing friend and trading partner of this country and 'constructive engagement' had brought about a resolution. Last year, Act Party trade spokeswoman Dr Parmjeet Parmar called the dispute a 'betrayal of our friendship'. She said if Canada could not comply with the CPTPP, it should be 'booted out of the deal'. ExportNZ has welcomed the deal, saying it will unlock higher export value for Kiwi business. Executive director Josh Tan said the outcome was a win for New Zealand dairy exporters, and a win for the rules-based trading system. 'It's essential that our trade agreements function as they were agreed to – particularly in the current global trade context. Likewise, our trade partners should ensure they are playing by the rules.' Canada was a valuable trading partner for New Zealand, Tan said. -RNZ
