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19 Thumbs up for Fonterra Vol 20 No 38, October 3, 2022
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Park butter to better woo India Nigel Stirling
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AJOR dairy commodities like butter and skim milk powder need to be parked for now if New Zealand wants to avoid being relegated to the back of the queue for a trade deal with India. That’s the view of former Fonterra director and Indian dairy farm investor Earl Rattray, who led a delegation of most of NZ’s major primary exporters to India earlier this month. India this year signed a free trade agreement with Australia – and other countries, including those of the European Union, are scrambling to gain a similar foothold in the market of more than a billion consumers. “It is now the fifth biggest economy in the world, it is going to have the world’s largest
We have to secure our place in the queue and not go in there with unrealistic expectations ... India needs to see we are value-adders rather than competitors. Earl Rattray Dairy investor
population, and it is one of the world’s fastest-growing economies,” Rattray said. “Given the Australia FTA and possibly more other potential suppliers to the Indian market who may achieve a competitive advantage because of the lack of tariffs, that is not going to be a good place for NZ exporters to be in the future.” Talks for a free trade agreement began in 2011 but stalled six years ago. Despite starting its talks a year later Australia clinched a deal with India in April. Some exporters have questioned Trade Minister Damien O’Connor’s ruling out NZ following Australia and parking demands for access for dairy products. The meat industry worries NZ’s dairy demands are holding up the talks and blocking potential gains for other exporters. Rattray agrees NZ’s default position of demanding tariff elimination on all of its major export commodities as a starting point is not suitable for the current negotiation with India. But he said that does not mean dairy should be excluded altogether in the current talks. “There are elements of our export product mix that are extremely sensitive for India but there are significant and Continued page 5
Farmers and politicos scrum down Tim Mackle, Mark Mitchell, Richard Luxton, Greg O’Connor and Quinn Morgan ready to take to the field at the John Luxton Memorial rugby match in Morrinsville last week. Visit farmersweekly.co.nz for the full story.
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NEWS 11
MARKETS 16
Meet the people behind the farm gate On Farm Story is a celebration of farmers and farming - told in under five minutes.
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