From milk and meat to a world-famous fruit named after us – we not only punch above our weight – we set
the standard for other countries to meet.
I’m privileged to be New Zealand’s Agriculture and Trade Minister and my job is made easier overseas because of the obvious passion and commitment of the men and women of the primary sector.
The food and fibre sector continues to be the backbone of New Zealand’s economy, driving job creation, supporting rural communities, and generating substantial export revenue. The global market recognises the high quality of our food and fibre products, and the Government is committed to ensuring these sustainably-produced goods are available to the world’s consumers.
We have set the aspirational target of doubling the value of New Zealand’s exports in 10 years.
To achieve this, we must promote growth through innovation and new technology, bring down barriers to lower costs and deliver high-quality trade deals.
The agribusiness sector is responsible for more than 80% of New Zealand’s goods exports, and is built on science-based measures, intensive research, and world-leading practices. We must continue to evolve to meet changing consumer needs, especially in major Asian markets with booming middle classes, and traditional markets where there is an increasing demand for traceable products that promote health and wellbeing.
The rise in consumer preference for high-quality and sustainably-produced goods is an opportunity for Kiwi producers to achieve further premiums and maintain a competitive edge globally, all while meeting climate and environmental obligations.
The international landscape is changing rapidly, with growing interest in quality and environmental assurances from customers and regulators. This has led to new non-tariff barriers (NTBs) that pose challenges for exporters.
The quality of New Zealand’s agricultural systems is a significant advantage and selling point, but we must address the risk of unnecessary compliance costs and talk of our environment and climate achievements while continuing to meet obligations.
The Government is focused on a solutions-based approach through research and technology to give Kiwi exports a competitive advantage in key markets. We’re working alongside similarly impacted partners in the World Trade Organisation (WTO) and other forums such as Apec (Asia-Pacific Economic Cooperation) to test new economic rules and norms that reduce NTBs, bring down costs and facilitate trade.
Modern trade agreements play a crucial role in this strategy. The New Zealand European agreement, which entered into force many months early – from May this year, and our agreement with Britain, operational for a year now, are prime examples of how trade can grow our economy, create higher paying jobs and support sustainable development.
Since the British agreement came into force, New Zealand exports have grown by a significant 19% in the past year. This includes an additional $30.9 million of dairy and $3.7m of honey products under the new reduced tariffs.
Perhaps most importantly, as we look to the future, these agreements also level the playing field for innovative New Zealand businesses in areas such as agritech, with the value of Kiwi services exports to Britain rebounding from $942m in 2022 to $1.43 billion in 2023.
We are progressing towards free trade agreements (FTAs) with the United Arab Emirates, and Gulf Cooperation Council, both of which are critical markets for New Zealand’s primary sector. We are rebuilding the relationship with India as a priority and already logs are able to be exported to that market again, reducing a trade barrier that was hurting Kiwi wood exporters.
Additionally, the recently concluded Agreement on Climate Change, Trade and Sustainability (ACCTS) with Costa Rica, Iceland, and Switzerland exemplifies how trade agreements can deliver commercial and environmental benefits, unlocking additional access for New Zealand’s sustainable wood and wool exports.
In June, we signed three Indo-Pacific Economic Framework (IPEF) agreements, which will boost trade and investment, and grow our digital and green economies with key partners. These agreements represent 40% of global GDP and 50% of New Zealand’s exports, creating a secure and transparent economic environment in the Indo-Pacific region and facilitating co-operation to achieve international climate goals.
Globally, we remain focused on stronger rules to limit the distorting effects of agricultural subsidies that hurt Kiwi exporters’ bottom lines. Despite setbacks at the recent WTO Ministerial trade negotiation, we are committed to driving reform, recognising that total global spending on agricultural subsidies is rapidly approaching US$1 trillion ($1.7tn), with the majority being environmentally harmful.
Climate challenge
The Government remains committed to meeting international climate obligations without shutting down Kiwi farms.
It doesn’t make sense to send jobs and production overseas, while less carbon-efficient countries produce the food the world needs.
That is why we are focused on finding practical tools and technology for our farmers to reduce their emissions in a way that won’t impact production or exports.
Last month we introduced legislation amending the Climate Change Response Act 2002 to keep agriculture out of the Emissions Trading Scheme. We also commenced an independent review of the methane science and targets for consistency with no additional warming from agriculture emissions so farmers will know exactly what is expected to help New Zealand meet its obligations.
This review will see an independent panel report back to the Government by the end of the year, providing evidence-based advice on what our biogenic methane target should be to ensure no additional warming and to give producers certainty.
To support these efforts, we are strengthening research and development of new tools and technologies to help farmers sustainably lower on-farm emissions. More than $400m is being invested over the next four years to accelerate this progress, including through the Centre for Climate Action on Agricultural Emissions and the AgriZeroNZ public-private joint venture.
We must reduce farm emissions, but we can do so without harming the economy. We should be world leading in innovative solutions not shutting down farms.
Doubling exports by value over the next 10 years will lead to higher wages and a better standard of living for all Kiwis.
New Zealand’s primary sector stands ready, as it always does, to do its part to deliver for every New Zealander.
