Duty-free dairy exports

The turn of the year brought a welcome change for New Zealand dairy farmers: all New Zealand dairy products can now enter China duty-free. Duties on milk powder no longer apply following China’s decision to remove the safeguard duties on milk powder, the last remaining dairy tariffs, under the New Zealand-China Free Trade Agreement (FTA).

The new arrangement, effective from 1 January 2024, will save the local dairy industry millions of dollars. According to government estimates, removing tariffs will save Kiwi exporters roughly $350 million annually.

Dairy exports to China have averaged 1.4 million tonnes, or $8 billion, over the past three years, around half of which was milk powder. If your farming business exports dairy to China, learn more about the China Free Trade Agreement at https://www.mfat.govt.nz/en/trade/free-trade-agreements/free-trade-agreements-in-force/nz-china-free-trade-agreement  For more generalised export information visit  https://www.mpi.govt.nz/export/food/dairy/

Freshwater Farm Plan review

If you have struggled with the Freshwater Farm Plan system, changes are underway to make the regulation more cost-effective and practical.

What do we know so far? Ministers want to simplify the current model, saying it’s ‘too costly and complex, and too broadly applied’. The coalition is considering whether existing requirements to complete Freshwater Farm Plans should be paused during its review.

Ministers will also consider how existing environmental programmes and industry assurance programmes could be recognised within Freshwater Farm Plans.

Several regions have started implementing Freshwater Farm Plans, including Waikato, Southland, the West Coast, Otago, and Manawatū-Whanganui. Please contact your local council to find out how you might be affected by the government’s plans.