May 20, 2013

 

New Zealand meat remains stuck at China port

 

 

Supermarkets in China are facing shortages of beef and lamb stocks from New Zealand as meat imports are unable to leave Chinese ports.

 

Officials say they are working "around the clock" to resolve the issue but the Government is giving no timetable for when the stalled shipments will be cleared.

 

It emerged on Friday (May 17) that all meat exports to China have been blocked from entering the country, possibly since the end of April. The Government was told of the problem on Tuesday (May 14), but made no public statement until Saturday (May 17). On Friday, the Meat Industry Association insists that there was no food safety issue. New Zealand's Food Safety Minister, Nikki Kaye, said that the issue was being taken seriously.

 

"The Ministry of Primary Industries (MPI) and the Ministry of Foreign Affairs and Trade (MFAT) are working around the clock to provide technical information, documentation and assurance from New Zealand, so Chinese officials can proceed with clearance."

 

The issue was apparently caused by a change of name on export certification, caused by the Ministry of Agriculture and Forestry being combined into MPI, which also has responsibility for fisheries and food safety.

 

According to reports, supermarkets were beginning to run out of New Zealand product. In a multi-storey Carrefour supermarket in Shanghai's Changning district, an area popular with the city's foreign residents, Kiwi lamb was not in stock.

 

According to a shop assistant working in the meat section, New Zealand lamb was usually available and popular. Meanwhile, Australian and Argentinean beef are available, as are Mongolian and Chinese sheep meat.

 

China was the largest buyer of New Zealand's sheep meat by both volume and value in the first quarter of the year. The current situation could mean that New Zealand sheep meat will either be stuck at port or prevented from entering Chinese harbours. Several of New Zealand's meat companies are believed to be affected.

 

A top meat-industry source said certification was being used by Chinese authorities as an excuse to protect local pork and poultry industries, noting that China had continued to allow imports of both dairy products and beef hides.

 

Meat Industry Association's chief executive, Tim Ritchie, said the issue could cause long-term damage to the industry.

 

New Zealand is poised to sign its first free-trade agreement in more than three years, with an announcement of a deal with Taiwan expected in the coming months. Sources say negotiations have been progressing smoothly, and the most complicated issues, including Taiwan's complicated relationship with mainland China, has largely been resolved.

 

Assuming it is completed, it would be the first deal concluded since a closer economic partnership was announced with Hong Kong in March 2010. While New Zealand does not officially recognise Taiwan as a country, it is the country's 12th-largest trading partner.

 

Despite lengthy trade relations, exporters to Taiwan often face tariffs of around 20%. Factors, said to have complicat the passing of the deal, include New Zealand's relations with China, where trade has soared since a free-trade agreement was reached, and Taiwan's own trade negotiations with mainland China.