Tentatively optimistic, advocates for the red meat sector are celebrating the United States government lifting its tariffs on New Zealand beef.
The US government announced earlier this month it would be lifting its imported goods tax on a range of agricultural exports from New Zealand — including beef.
In response, Beef and Lamb New Zealand chair Kate Acland said based on the industry body’s initial analysis, the removal of tariffs was positive for the red meat sector.
While seeking clarification on the details of the decision, she said the US had lifted the additional 15% tariff on New Zealand beef that was imposed on August 1.
"This means that our beef will go back to facing a tariff of less than 1%, ... and will restore a level playing field with our key competitors" she said.
This sentiment was echoed by Meat Industry Association chairman Nathan Guy, who said the US was New Zealand’s largest beef market.
He said the lowering of tariffs was a boost for red meat exporters and reduced the uncertainty of the last few months, since they were imposed.
Despite "strong demand" and "firm prices", volumes of New Zealand’s beef and lamb to the US had decreased compared to last year, since the 15% tariff was announced.
He said since April, New Zealand beef imports into the US have incurred tariff costs of over $300 million.
This has had an effect on the US economy, and its food inflation, so alleviating pressure on the stateside consumers was a "sensible move".
This was a time of leverage for the New Zealand red meat sector, he said.
"With US production at 70-year lows and consumption at record levels, the US needs our high-quality red meat."
Mr Acland agreed that Aotearoa was a vital trading partner for the US.
"New Zealand ... [is] an important source of lean beef that is mixed with US domestic grain-fed beef to produce burger patties," she said.
Across the pond is also becoming an important market for sheepmeat in "high value, premium cuts".
"We hope the US will also consider taking a similar approach to New Zealand lamb, which still continues to face an additional 15% tariff and has been experiencing similarly high prices." — Allied Media
