1
8 Remembering farming legend James Guild
Dairy upside to China-EU trade tension Nigel Stirling
MARKETS
A
Dairy
N ANTI-dumping probe by the Chinese government could sideline European dairy producers and create new opportunities for New Zealand in the world’s biggest dairy import market. China’s Commerce Ministry last month said it would investigate claims that the dumping of subsidised imports from the European Union on the Chinese domestic market was damaging its dairy industry. The announcement came a day after the EU confirmed it would use tariffs to stem a surge in imports of Chinese-made electrical vehicles. Rabobank dairy analyst Emma Higgins said the products under investigation, which include fresh liquid cream and grated and blue vein cheese, are not a large part of the EU’s dairy exports to China. If China responds against them with tariffs it could create opportunities for Chinese dairy manufacturing companies and others from outside the EU to fill the gap. Higgins said China’s dairy industry is known to want to increase its small cheese manufacturing capacity to boost returns from milk surpluses currently in the market.
“The trade tensions with EU potentially mean trade flows could easily benefit us here in NZ as well as potentially the domestic dairy players in China with offshore assets in this part of the world as they look to maximise any opportunities that present themselves.” While the European products being investigated do not include the milk powders, butter and cheeses that dominated NZ’s trade with China, that could change as tensions rise. Higgins said that China has shown with its now-settled diplomatic and trade dispute with Australia that it is not afraid to ratchet things up. China hit back at calls by thenAustralian prime minister Scott Morrison’s call for an inquiry into the origins of coronavirus with tariffs on Australian barley in May 2020 before quickly moving to blacklist multiple beef plants, and later in the year used tariffs against its wine exports. “Right now the disruption to global dairy markets is likely to be minimal based on the small volume of product and the types of products that are under investigation,” Higgins said. “But these kinds of disputes can last several years and can extend out and either the [basket of] products being investigated expands out or the time period Continued page 4
View online at farmersweekly.co.nz
$4.95 Incl GST
S FOECT CU OR S
Vol 22 No 35 | September 9, 2024
‘Complete surprise’ of big wheat win The first Stephen, Mary, Peter and Glenys (not pictured) Blain heard of their wheatgrowing Arable Award was when they won it – and it was all thanks to an entry by their agent. Photo: Annette Scott
ARABLE 18-21
After Zimbabwe, the oyster’s his world Leaving the snakes and leopards of Zimbabwe for the cows and mushrooms of Southland was the move of a lifetime for Edwin Mabonga.
PEOPLE 16 US shows a keen appetite for dairy protein ahead of processed plant-based products.
NZ seen as an outlier for global shipping as cargo movers grapple with soaring costs.
Alan Emerson takes issue with councils acting on regs that are about to be scrapped.
NEWS 3
NEWS 4
OPINION 14
Rabobank’s Good Deeds Competition is back! Are you involved with a project that’s making a positive impact in your local rural community? Whether your local sports club needs a lick of paint, or your community hall needs a makeover, we’d love to hear from you! Your project could receive $5,000 cash and a day’s labour from the teams at Rabobank and The Country radio show to help bring your community initiative to life. We’re committed to helping rural communities thrive, and your project could be the next to benefit. Entries can be submitted at rabobank.co.nz/good-deeds Entries close 30 June 2024. T&C's apply.