Trade likely to be affected
While no immediate disruption to trade is expected because of Brexit, Northland farmers are looking to their respective industry organisations to press New Zealand’s trade opportunities as soon as possible. Northland sheep and beef farmer and chairman of Beef and Lamb New Zealand (B +LNZ) James Parsons says while the global uncertainty was not of immediate concern, sheep and beef trade to both the UK and EU were inextricably linked through quota access and both were likely to be affected in the future.
Parsons farms 350 head of cattle and 1100 breeding ewes on his 415ha property in the Tangowahine Valley.
He says the EU was New Zealand’s most valuable market for red meat and associated coproducts, accounting for more than $NZ2billion in trade last year.
‘‘The sheep meat quota in particular is of concern – the EU is our biggest market,’’ he says.
New Zealand sheep meat quota of 228,000 tonnes amounts to $1.4b of the red meat market with half of this going to the UK.
The biggest impact to New Zealand could come from the British domestic market being flooded by its own sheep meat should the UK lose its zero-tariff access into Europe.
Under World Trade Organisation rules, existing agreed access can’t be downgraded.
‘‘It is hard to know what will happen. Logically it should be apportioned based on the levels of the last four to five years but there is whole lot of issues to be worked through by the UK and EU.’’
Parsons was expecting at least a two year transition period with a final Brexit even further out.
He says B+LNZ already had staff living and working in Europe who had established relationships within the industry.
‘‘I will be heading off to Europe in October to discuss the situation with our counterparts. Having these existing relationships will make it easier than going in cold.’’
New Zealand exports 90 per cent of it sheep meat and 80 per cent of its beef. 1300 tonne go to the EU per annum. New Zealand’s largest beef market is with the United States.