Home' Northern Outlook : December 8th 2012 Contents 8 December, 2012
CENTRAL SOUTH ISLAND FARMER
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THE KNOCKOUT DRENCH
Tariffs squeeze Kiwi growers
TARIFFS COSTLY: A study says tariffs
cost individual New Zealand growers
$44,000 a year.
Other countries tariffs on New
Zealand s fruit and vegetables cost
each of our 5400 growers $44,000
a year, according to a recent
That was an increase of $10,000
on 2010, the horticulture indus-
try s latest Trade Barriers Report
The study says horticultural
exporters paid an estimated $241
million in tariffs, an increase of
2.5 per cent on the 2010 figure of
At the same time, export earn-
ings increased by 6 per cent.
The Horticulture Export Auth-
ority and Horticulture New Zea-
land commission the biannual
report, with funding support from
the Foreign Affairs and Trade
About 60 per cent of New Zea-
land s fruit and vegetables are
exported, making just over $2.2
We are now reaping the benefit
of great opportunities for trading
in Asian countries, but there is a
downside with that, because their
tariffs can be considerably
higher, HortNZ chief executive
Peter Silcock said.
That s why we need to continue
our efforts on developing and sign-
ing free-trade agreements.
The study noted an unchanging
trend for other countries to exploit
the use of non-tariff trade bar-
riers, known as SPS -- sanitary
and phytosanitary barriers -- but
did not include their effect.
Horticulture Export Authority
chief executive Simon Hegarty
said these costs were greater than
the cost of tariffs.
They included compliance with
standards, fumigation require-
ments, additional product testing,
plus labelling and packaging
Difficult international trading
conditions meant some countries
resorted to these barriers.
Reality tells us sound science
does not always prevail where
SPS barriers are concerned.
Examples of high tariffs:
Buttercup squash: 48 growers
paid an average of $121,000 each
in tariffs -- up to 27 per cent in
Korea -- a total cost of $4.3m.
Kiwifruit: 2662 growers paid an
average of $38,800 each.
The highest tariff is 45 per cent,
in Korea, which adds up to $35m.
Onions: 105 growers paid an
average of $40,400 each in tariffs,
on exports mostly to the European
Union. Korea s tariff is 50 per
A new innovation programme that will look at how
more value can be generated from beef carcasses
has been approved for Government funding.
Ministry for Primary Industries director-
general Wayne McNee announced approved co-
funding from the Primary Growth Partnership
(PGP) for the new Foodplus programme.
The PGP Fund is committing $43.5 million over
seven years for the programme, which is worth
$87m in total and is being run by ANZCO Foods.
Foodplus will identify opportunities to create
new products, with a particular focus on parts of
the beef carcass that currently generate less
ANZCO has identified three markets for
innovative new products: Food, ingredients and
Adding further value to the carcass is essential
for the future success of the meat industry, Mr
ANZCO s vision for Foodplus is relevant and
bold, and now backed by a significant investment.
Rennie Davidson, chief executive of ANZCO s
food and solutions division, said ANZCO welcomed
the opportunity to partner with the Crown on the
It is a large-scale project that wouldn t be
achievable without collaboration. We re excited
about the potential that this will bring to the
Call goes out for
top dairy woman
Women working in the dairy industry are being
urged to get their nominations in for the 2013
Dairy Woman of the Year award, which closes on
Sponsored by Fonterra, the prestigious award
includes the chance to attend the year-long
Women in Leadership course run by Global
Women, worth $25,000.
Dairy Women s Network chief executive Sarah
Speight said the Dairy Woman of the Year award
celebrates and advances women who are making a
real difference in the dairy industry, in their
dairying businesses and in their communities.
So many dairying women are the pillars of
their communities. They are extraordinarily
passionate farmers, pushing not only their own
boundaries but those of the industry, continuously
looking for ways we can all benefit. We want to
hear about these women.
We are asking their colleagues, friends,
husbands or business partners to nominate them
for this important award.
The Dairy Woman of the Year will be announced
at a gala dinner at the Dairy Women s Network
annual conference on March 20 in Nelson. Infor-
mation and nomination forms can be downloaded
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