August 3, 2025 • 8 mins
Beef + Lamb New Zealand Chair Kate Acland joins Tim Beveridge to discuss the impacts of the newly announced 15% tariff on exports to the United States.
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Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talks.
Speaker 2 (00:09):
I'd be it's confirmed. New Zealand's going to be slapped
with a fifteen percent tariff on all goods exported to
the United States Australia. We'll have to pay ten percent tariff,
the original number that we were given. And exporters are concerned.
They're growing concerned as the fees are pushing the limit
of what can actually be absorbed. And Kate Ackland is
the chair of NZ Beef and Lamb and she's with
(00:30):
me now, Kate, good afternoon. I'm sorry, Kate got the
wrong phone line. Stand by, that's I'll just click on
the right button. Sorry, there we go, Kate, good afternoon.
Speaker 3 (00:39):
Good afternoon.
Speaker 2 (00:40):
So we knew tariffs were coming just before we deal
in the impact. Tell us about the work that has
gone at your end over the last few months with
relationships and because you must be pretty gutted about this.
Speaker 3 (00:52):
We're hugely gutted about this, to be honest. I mean,
we have a lot of work and we've got staff
based over in the US, and you know it's not
just be some land that's put work. And I know
that exporters and government officials are work gone on and
I think we have got really good, strong and well
established relationships. So we were hugely disappointed because it puts
us at a clear competitive disadvantage and what is one
(01:14):
of our most valuable markets.
Speaker 2 (01:16):
Does it feel something to be the potential to be
wrung out of those contacts and relationships.
Speaker 3 (01:22):
Look, to be honest, we were quite surprised. You know,
there was no indication that we would be treated any
differently than countries like Australia. But look only at the
moment only Brazil and nico Agua are facing higher additional
tariff levels on beef than New Zealanders, so there will
be more questions asked it and more work to be done, absolutely,
but yeah, it was really disappointing.
Speaker 2 (01:43):
What is the impact and tell us about how big
a deal this is for our economy and also specifically
in New Zealand beef and lamb.
Speaker 3 (01:51):
Well, prior to the tariffs going on in April, New
Zealand beef faced two point four of a percent tariff
within quota and lamb nothing. So since the ten percent
tariff's gone on, that's been a cost of two hundred
and twelve million over a twelve month period is what
it will cost. This will of course, you know, going
up to fifteen. Now we'll put the tariff cost at
(02:13):
over three hundred million, so it's really substantial.
Speaker 2 (02:17):
What's the total of value of their exports to the
States then it could probably calculate that myself on their head,
but we're talking to a three billion or is whereabouts.
Speaker 3 (02:27):
You're really clearly on the stop. Yeah, it is. It's
our largest It is our largest market by value and volume.
Although interestingly, since the tariff came on in April, we've
seen a fourteen percent drop year on yeah, since last year,
so you know, the tariffs start having an impact.
Speaker 2 (02:43):
Ossie beef only ten percent, isn't it? Does? I mean,
is that a major problem for us, the fact that
Australian beef has got a cheaper price? Or are we
better than them? Anyway?
Speaker 3 (02:54):
Look, it is a problem because you know, it puts
US at a disadvantage compared to you know, our counterparts,
So Australia, Argentina, Uruguay, they are all facing lower tariffs
than us. So we'll have impact and you know demand
is there, It's just going to be you know, essentially
it'll be our farmers that will pay.
Speaker 2 (03:14):
I want to ask a dumb question, but it almost
feels like New Zealand. You know, we're not a very
big player, and it's almost like they've just gone off
fifteen percent of and everyone except for these people. And
if somebody actually could actually point out to the decision
maker e. Trump, oh by the way, New Zealand's our
friend as well, he might go, oh, okay, make it
ten percent. I know that sounds dumb, but I is
(03:34):
there something in that?
Speaker 1 (03:36):
Oh?
Speaker 3 (03:36):
Well, look, I think that sleeaks to the frustration is that,
you know, we are one of the good guys. We
play by the roles. We're very free and open trade.
We don't put tariffs on on virtually anything coming into
this country. So you know, we feel like we're one
of the good guys and so to be treated differently
to places like Australia is quite frustrating.
Speaker 2 (03:53):
What's the reaction from our farmers?
Speaker 3 (03:56):
Ah, To be honest, times are quite good on the farm.
Farmers have just got their head down. It's a busy,
busy season, so my farmers are just focused on actually
producing really good, high quality nutritious products. I think a
bit of sort of cynicism and disappointment. But yeah, at
the moment, farmers generally have just got their head down.
Speaker 2 (04:15):
What about the ability to absorb or to pivot to
other markets, because I've seen some discussion that exporters said
that lower KK, if it was ten percent, we could
probably find a way of absorbing that. What are the
discussions around how you cope?
Speaker 3 (04:29):
Look, anecdotally, I'm hearing the same that ten percent the
market could absorb. Once it gets above that, it starts
to become a problem. But we are very lucky in
this country that I think that seventy six percent of
our trade is covered under free trade agreements. We're sending
red meat to over one hundred different markets, and there
is a global protein shortage at the moment. So look,
(04:51):
I think we'll see more of that diversification into other
markets and those volumes continue to drop into the US.
Speaker 2 (04:58):
I mean long term, how do I don't want to
be too sort of polyannerish, but as long term they
might have done us a favor in some respects that
if we can pivot, then we don't rely on them
so much. Then does that build in some sort of
you know, it's a bit of a challenge, But is
there some sort of long term benefit from what we
might have to do now.
Speaker 3 (05:19):
Well, I'm not sure if this call is necessarily led
to that, but we do have a really good diversified
exports strategy and obviously you can't pivot immediately, but we
did see a lot of product pivot to the States
when we had the China market wasn't going so well.
So again we will see products pivot into other markets,
(05:39):
like the UK has become a really important market for
US again, which is great. It's a high value market.
EU got great lamb access, not so good on the beef,
but you know those are markets we've been selling a
lot more sheep meat and beef into in the last
year or so. So look, we are lucky in this
country that we do have a lot of options.
Speaker 2 (06:00):
What's the next step for the minister then, or what
can you do as well? Is there will there be
further engagement obviously, but is there something that you're hoping
the Minister can pull off in the next week.
Speaker 3 (06:10):
Two, three, four, Well, absolutely so, we're urging the government
to engage with the US administration and try and resolve
or restore some fair access for our red meat exports.
We will continue as a country, but also as an
organization to advocate for rules based trade. Essentially, this is
what it comes down to. New Zealand really prides itself
on playing by the rules and they.
Speaker 2 (06:31):
Do flip around a bit the tariff. So do we
feel that this is this is our lot now or
do we think there is hope for changing something?
Speaker 3 (06:39):
Honestly, it's who could? Who could know? It's sort of
day day by day at the moment, but you know
we do have you know, at industry level, we have
really strong relationships with the other farmer organizations over there.
Our exporters have really good relationships into market and essentially
New Zealand's beef particularly adds value to the U S product,
(07:02):
So they need to import len trim to mix list there.
You know, they're satty or off cuts to go up
to hands. So you know, we do actually add significant
value to US manufacturing and US beef products. And I
think that's the message we need to keep reinforcing. Is
it actually our product, it helps America? How do we
get it?
Speaker 2 (07:22):
Just as an aside, it's more of a trivial question,
but most of the really good stuff goes overseas. Do
we ever get the chance in New Zealand to buy
your export quality stuff or is that out of our reach?
Speaker 1 (07:33):
Well?
Speaker 3 (07:33):
I would suggest that most of what we buy in
New Zealand is the export quality. But I do know
at the moment there is a bit of a shortage
and so we are seeing some imported products on shelves.
But generally, I would say we're very lucky in New
Zealand that virtually everything we eat is export quality.
Speaker 2 (07:50):
Yeah, what's your favorite cut to throw on the barbecue?
If you've got only one choice?
Speaker 3 (07:55):
Well, I'm a big Ribby State fan, but yesterday I
had a brisket with twenty two hours brisket and I'm
still still full this morning from it.
Speaker 2 (08:05):
Blimey, that does sound good. Well, hey, look good luck, Kate.
We know things can change with this administration, so I
guess that's what we're keeping our fingers crossed for. And
Tom McClay does a great job, doesn't he as our
trade minister?
Speaker 3 (08:15):
Yeah? Look he does. He has such a work ethic.
That man seems to be all over the world constantly,
So fingers crossed. But who will know what will be happening? Yeah?
Speaker 2 (08:26):
Good stuff? Hey, I appreciate your time this afternoon and
best wishers. That's Kate Ackland. She is a Beef and
Lamb New Zealand chair.
Speaker 1 (08:32):
For more from the Weekend collective, listen live to News
Talk ZEDB weekends from three pm or follow the podcast
on iHeartRadio
You're listening to the Weekend Collective podcast from News Talks.
Speaker 2 (00:09):
I'd be it's confirmed. New Zealand's going to be slapped
with a fifteen percent tariff on all goods exported to
the United States Australia. We'll have to pay ten percent tariff,
the original number that we were given. And exporters are concerned.
They're growing concerned as the fees are pushing the limit
of what can actually be absorbed. And Kate Ackland is
the chair of NZ Beef and Lamb and she's with
(00:30):
me now, Kate, good afternoon. I'm sorry, Kate got the
wrong phone line. Stand by, that's I'll just click on
the right button. Sorry, there we go, Kate, good afternoon.
Speaker 3 (00:39):
Good afternoon.
Speaker 2 (00:40):
So we knew tariffs were coming just before we deal
in the impact. Tell us about the work that has
gone at your end over the last few months with
relationships and because you must be pretty gutted about this.
Speaker 3 (00:52):
We're hugely gutted about this, to be honest. I mean,
we have a lot of work and we've got staff
based over in the US, and you know it's not
just be some land that's put work. And I know
that exporters and government officials are work gone on and
I think we have got really good, strong and well
established relationships. So we were hugely disappointed because it puts
us at a clear competitive disadvantage and what is one
(01:14):
of our most valuable markets.
Speaker 2 (01:16):
Does it feel something to be the potential to be
wrung out of those contacts and relationships.
Speaker 3 (01:22):
Look, to be honest, we were quite surprised. You know,
there was no indication that we would be treated any
differently than countries like Australia. But look only at the
moment only Brazil and nico Agua are facing higher additional
tariff levels on beef than New Zealanders, so there will
be more questions asked it and more work to be done, absolutely,
but yeah, it was really disappointing.
Speaker 2 (01:43):
What is the impact and tell us about how big
a deal this is for our economy and also specifically
in New Zealand beef and lamb.
Speaker 3 (01:51):
Well, prior to the tariffs going on in April, New
Zealand beef faced two point four of a percent tariff
within quota and lamb nothing. So since the ten percent
tariff's gone on, that's been a cost of two hundred
and twelve million over a twelve month period is what
it will cost. This will of course, you know, going
up to fifteen. Now we'll put the tariff cost at
(02:13):
over three hundred million, so it's really substantial.
Speaker 2 (02:17):
What's the total of value of their exports to the
States then it could probably calculate that myself on their head,
but we're talking to a three billion or is whereabouts.
Speaker 3 (02:27):
You're really clearly on the stop. Yeah, it is. It's
our largest It is our largest market by value and volume.
Although interestingly, since the tariff came on in April, we've
seen a fourteen percent drop year on yeah, since last year,
so you know, the tariffs start having an impact.
Speaker 2 (02:43):
Ossie beef only ten percent, isn't it? Does? I mean,
is that a major problem for us, the fact that
Australian beef has got a cheaper price? Or are we
better than them? Anyway?
Speaker 3 (02:54):
Look, it is a problem because you know, it puts
US at a disadvantage compared to you know, our counterparts,
So Australia, Argentina, Uruguay, they are all facing lower tariffs
than us. So we'll have impact and you know demand
is there, It's just going to be you know, essentially
it'll be our farmers that will pay.
Speaker 2 (03:14):
I want to ask a dumb question, but it almost
feels like New Zealand. You know, we're not a very
big player, and it's almost like they've just gone off
fifteen percent of and everyone except for these people. And
if somebody actually could actually point out to the decision
maker e. Trump, oh by the way, New Zealand's our
friend as well, he might go, oh, okay, make it
ten percent. I know that sounds dumb, but I is
(03:34):
there something in that?
Speaker 1 (03:36):
Oh?
Speaker 3 (03:36):
Well, look, I think that sleeaks to the frustration is that,
you know, we are one of the good guys. We
play by the roles. We're very free and open trade.
We don't put tariffs on on virtually anything coming into
this country. So you know, we feel like we're one
of the good guys and so to be treated differently
to places like Australia is quite frustrating.
Speaker 2 (03:53):
What's the reaction from our farmers?
Speaker 3 (03:56):
Ah, To be honest, times are quite good on the farm.
Farmers have just got their head down. It's a busy,
busy season, so my farmers are just focused on actually
producing really good, high quality nutritious products. I think a
bit of sort of cynicism and disappointment. But yeah, at
the moment, farmers generally have just got their head down.
Speaker 2 (04:15):
What about the ability to absorb or to pivot to
other markets, because I've seen some discussion that exporters said
that lower KK, if it was ten percent, we could
probably find a way of absorbing that. What are the
discussions around how you cope?
Speaker 3 (04:29):
Look, anecdotally, I'm hearing the same that ten percent the
market could absorb. Once it gets above that, it starts
to become a problem. But we are very lucky in
this country that I think that seventy six percent of
our trade is covered under free trade agreements. We're sending
red meat to over one hundred different markets, and there
is a global protein shortage at the moment. So look,
(04:51):
I think we'll see more of that diversification into other
markets and those volumes continue to drop into the US.
Speaker 2 (04:58):
I mean long term, how do I don't want to
be too sort of polyannerish, but as long term they
might have done us a favor in some respects that
if we can pivot, then we don't rely on them
so much. Then does that build in some sort of
you know, it's a bit of a challenge, But is
there some sort of long term benefit from what we
might have to do now.
Speaker 3 (05:19):
Well, I'm not sure if this call is necessarily led
to that, but we do have a really good diversified
exports strategy and obviously you can't pivot immediately, but we
did see a lot of product pivot to the States
when we had the China market wasn't going so well.
So again we will see products pivot into other markets,
(05:39):
like the UK has become a really important market for
US again, which is great. It's a high value market.
EU got great lamb access, not so good on the beef,
but you know those are markets we've been selling a
lot more sheep meat and beef into in the last
year or so. So look, we are lucky in this
country that we do have a lot of options.
Speaker 2 (06:00):
What's the next step for the minister then, or what
can you do as well? Is there will there be
further engagement obviously, but is there something that you're hoping
the Minister can pull off in the next week.
Speaker 3 (06:10):
Two, three, four, Well, absolutely so, we're urging the government
to engage with the US administration and try and resolve
or restore some fair access for our red meat exports.
We will continue as a country, but also as an
organization to advocate for rules based trade. Essentially, this is
what it comes down to. New Zealand really prides itself
on playing by the rules and they.
Speaker 2 (06:31):
Do flip around a bit the tariff. So do we
feel that this is this is our lot now or
do we think there is hope for changing something?
Speaker 3 (06:39):
Honestly, it's who could? Who could know? It's sort of
day day by day at the moment, but you know
we do have you know, at industry level, we have
really strong relationships with the other farmer organizations over there.
Our exporters have really good relationships into market and essentially
New Zealand's beef particularly adds value to the U S product,
(07:02):
So they need to import len trim to mix list there.
You know, they're satty or off cuts to go up
to hands. So you know, we do actually add significant
value to US manufacturing and US beef products. And I
think that's the message we need to keep reinforcing. Is
it actually our product, it helps America? How do we
get it?
Speaker 2 (07:22):
Just as an aside, it's more of a trivial question,
but most of the really good stuff goes overseas. Do
we ever get the chance in New Zealand to buy
your export quality stuff or is that out of our reach?
Speaker 1 (07:33):
Well?
Speaker 3 (07:33):
I would suggest that most of what we buy in
New Zealand is the export quality. But I do know
at the moment there is a bit of a shortage
and so we are seeing some imported products on shelves.
But generally, I would say we're very lucky in New
Zealand that virtually everything we eat is export quality.
Speaker 2 (07:50):
Yeah, what's your favorite cut to throw on the barbecue?
If you've got only one choice?
Speaker 3 (07:55):
Well, I'm a big Ribby State fan, but yesterday I
had a brisket with twenty two hours brisket and I'm
still still full this morning from it.
Speaker 2 (08:05):
Blimey, that does sound good. Well, hey, look good luck, Kate.
We know things can change with this administration, so I
guess that's what we're keeping our fingers crossed for. And
Tom McClay does a great job, doesn't he as our
trade minister?
Speaker 3 (08:15):
Yeah? Look he does. He has such a work ethic.
That man seems to be all over the world constantly,
So fingers crossed. But who will know what will be happening? Yeah?
Speaker 2 (08:26):
Good stuff? Hey, I appreciate your time this afternoon and
best wishers. That's Kate Ackland. She is a Beef and
Lamb New Zealand chair.
Speaker 1 (08:32):
For more from the Weekend collective, listen live to News
Talk ZEDB weekends from three pm or follow the podcast
on iHeartRadio
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