EU rivals 'focusing on non-tariff trade barriers'

Mr Anderton warned farmers would face increasing attention. Picture / Amos Chapple.

Farmers can expect to face new competitive pressures as trade rivals in the northern hemisphere are forced to reduce subsidies and tariffs, Agriculture Minister Jim Anderton has said.

"We know Europe's history of protectionism," he told meat and wool farmers in Wellington today.

"As the pressure grows on them to get rid of direct subsidies, creative new replacements are being found."

One focus in Europe was on the "food miles" involved in shipping produce to consumers, and Mr Anderton said talk about the carbon emissions from shipping produce around the world was directly targeting the shipments from New Zealand.

"We have to respond to these changing market conditions," he said. "If we don't act, overseas markets are increasingly likely to penalise New Zealand producers."

Mr Anderton warned the annual meeting of Federated Farmers' meat and wool section that farmers should expect increasing attention to the way they operated, particularly from the affluent markets of Europe.

"Consumers are more environmentally aware and want to be reassured their food is produced in a way that respects our natural environment and leaves something for the future."

New Zealand had would be able to reassure health conscious consumers, that it had the best tracking and tracing systems in the world, he said.

"We can distinguish our products from producers who compete by exploiting labour and the environment," he said.

"We are, therefore, better placed than just about any nation on earth to give overseas consumers assurances that they are purchasing socially and environmentally responsible goods.

"Our future success will depend - in part - on our success at differentiating our products around these valuable advantages."

Mr Anderton gave the example of the Rissington Breedline company and meat processor Affco.

They have started a trial business with UK retail giant Marks and Spencer to have lambs produced with Rissington sires partly processed by Affco, then shipped to the UK.

On arrival they would be further processed into individual cuts and portions, labelled with the Marks and Spencer brand and the name of the New Zealand farmer who provided the original carcass.

The project rewarded four-years of intense progeny testing by Rissington to produce consistent carcass weights, meat yield and quality products specifically tailored to the buyer's needs, he said.

It also showed how breeders, producers and processors could establish new supply chains into premium markets, and that traceable carcases gave consumers assurances that products were safe and sustainable farm management techniques.

Mr Anderton said Rissington was now working with UK farmers.

- NZPA