Billions lost to trade barriers

Trade barriers are costing the dairy industry billions, according to a new report. File photo.

Trade barriers are costing New Zealand billions of dollars annually, according to a report commissioned by the Dairy Companies Association of New Zealand.

The report highlights the strong economic contribution made by the dairy sector, even though prices remain low and global dairy markets remain in flux.

DCANZ chairman Malcolm Bailey says trade barriers are a significant cost to New Zealand.

'Tariffs alone are suppressing the value of our dairy products by around 1.3 billion dollars annually. On top of this, non-tariff measures add over $3 billion in costs to New Zealand dairy exports in the APEC region alone.”

The report reveals dairy exports generate more than one in every four dollars earnt by New Zealand and the sector provides incomes for 40,000 New Zealanders.

'These are good jobs with the highest average salary levels for a food manufacturing sector, and the second highest for a farming sector.”

Dairy farming and processing contributes more than $430 million to the Bay of Plenty's regional GDP, and more than $2 billion to the Waikato region's GDP.

Primary Industries Minister Nathan Guy says the report is a timely reminder of how important the dairy industry is.

'While the dairy sector has had a tough few seasons, in the year to March 2016 they still earned over $13 billion in exports for New Zealand.

'As a Government we are investing $89 million, matched by the dairy industry, through the Primary Growth Partnership to help create new products, reduce environmental impacts, increase on-farm productivity, and improve agricultural education.”

He says the report also highlights the potential of further trade liberalisation.

'The report's modelling suggests if all global dairy tariffs were eliminated, this would result in a $1 billion boost to GDP. This is why opening up market access and tackling non-tariff barriers as well remains a priority.”

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2 comments

who

Posted on 22-02-2017 17:07 | By Capt_Kaveman

cares milk is a rip off and i dont miss it since i stop buying it


Yup

Posted on 22-02-2017 19:44 | By namxa

Cheese n butter aren't expensive enough yet.


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