Andrew Burtt says the free trade agreement gives New Zealand advantages in China.
Beef+Lamb statistics show exports to China have grown rapidly from less than 1 per cent to 10 per cent. Why are sheep, lamb and beef volumes to China up so much?
Strong demand and prices and our free trade agreement, which provides us with some advantages, plus there is growth in demand for protein.
Is China going to be the next big marketplace?
It could be a big market, however
there are some risks. Traditional markets remain New Zealand's largest markets. New Zealanders are naive if they think others haven't noticed the changes ... South America, Australia, the US and Canada are key suppliers.
What cuts are they taking?
Generally they are taking "lower value" cuts compared with developed countries - cuts like lamb flaps and forequarters, but there are signs of increases in high-value products, such as lamb racks.
Are they paying the same as traditional markets?
Yes, they are competitive for similar products. This is an important point. Different markets demand different products. Except in small volumes so far, China does not compete directly for the same products exported to developed/traditional markets. If they were not competitive, New Zealand exporters wouldn't be exporting to them.
