Meat & Livestock News

Prospects for New Zealand’s Live Export Trade

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Anticipated Reopening of Live Animal Export

New Zealand’s live export industry is looking forward to resuming operations, potentially by August next year. The industry, which was halted in April this year by the previous Labour Government, is now seeing a possible reversal of the ban under the new coalition government.

This change could significantly impact rural communities, which previously estimated a loss of $450 million annually due to the ban.

Legislative Changes and Industry Standards

Reinstating live animal exports will necessitate legislative action. Mark Willis, chair of Live Export New Zealand (LENZ), notes that while the coalition government has expressed intentions to overturn the ban, specific animal welfare standards are yet to be defined.

However, he emphasises that New Zealand’s live exports have historically adhered to high animal welfare standards.

Industry and Government Collaboration

LENZ has been actively involved with the Ministry for Primary Industries (MPI) during the two-year transition leading up to the ban’s enforcement on April 30, 2023.

Willis expresses readiness to resume discussions with MPI to establish a new regulatory system that aligns with industry standards, aiming for an August restart. This timeline is considered realistic for both the industry and regulatory bodies, allowing for the preparation of 2023-born livestock and the implementation of new regulations.

Economic Impact and Market Prospects

The live export ban has had a substantial economic impact on farmers, with losses ranging from $49,000 to $116,000 per year for each of the up to 2900 farms involved in the trade. The majority of New Zealand’s live export trade, about 70%, consisted of dairy cattle shipped by sea to China.

Willis remains optimistic about the market’s future, despite a current softening in demand. He anticipates a more positive outlook for 2024, maintaining that the fundamentals for live animal exports remain strong. New Zealand has a history of exporting to various global markets, a trend that could continue.

Regulatory Regime and Public Support

The reversal of the ban is contingent on public support in New Zealand and the establishment of a new regulatory regime that ensures high standards of animal welfare. LENZ supports these measures and encourages farmers to actively participate in shaping a sustainable and responsible industry.

Willis stresses the importance of countering misconceptions with factual information to gain public and political support.

The potential revival of New Zealand’s live export trade in August next year marks a significant development for the agricultural sector.

With legislative changes and collaborative efforts between the industry and government, there is cautious optimism for the future of this trade, balancing economic interests with stringent animal welfare standards.