September 27, 2005

EU deal boosts NZ beef exports

New Zealand's European beef quota has been more than quadrupled from 300 to 1,300 tonnes a year.

Beef markets suffered when the European Union (EU) enlarged from 15 to 25 countries in May last year without a corresponding quota increase to account for previous trade with the new members.

The increased quota has compensated New Zealand in particular for valuable markets lost in Malta and Cyprus.

About 1,000 tonnes of top-grade beef, worth up to NZ$15 million a year, was traditionally sold to Cyprus and Malta before they joined the EU.

The increase for beef complemented gains negotiated last month for New Zealand exports of mutton or sheepmeat (1,154 tonnes) and butter (735 tonnes).

The increased quotas mark an end to New Zealand's trade compensation negotiations resulting from the EU expansion, which are expected to be implemented by Jan 1.

Imports above quota levels are subjected to higher tariff rates.