February 21, 2007

Egypt cuts tariff on New Zealand dairy products

The Egyptian government has announced lowering tariffs for dairy imports from New Zealand, providing stiffer competition for Europe's dairy firms in the key Middle East region.

Fonterra, which dominates the New Zealand dairy scene, unsurprisingly welcomed Egypt's decision. New Zealand dairy products will now enter the country at a tariff of between 0 and 2 percent.

Fonterra managing director of global trade, John Shaskey, said the Egyptian market was worth US$140 million for New Zealand dairy farmers. These tariff reductions would help Fonterra maintain its competitive position in the Egyptian market, he asserted.

The move has intensified competition for European dairy firms like Arla Foods in the strongly emerging Middle East region.

The tariff cuts would also mean good news for New Zealand's dairy sector amid predictions of a tough year ahead on the global market.