Kate Acland: U.S. removes 15% tariff on NZ beef exports

Earlier this year, the United States imposed a 15% tariff on a range of New Zealand exports, most notably beef. 

It was a huge blow, as beef is a major export for New Zealand - especially to the States. The tariffs have cost the country over $300 million since they were introduced in April. 

This weekend, President Donald Trump signed an executive order removing that extra 15% on beef, coffee, and tropical fruits, among others. The move brings us back down to a tariff of less than 1%.

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Episode Transcript

Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talk
said be so.

Speaker 2 (00:10):
Earlier this year, the United States imposed well, tariff's all
over the place, but in particular, fifteen percent tariff on
a range of New Zealand exports, most notably beef. It
was a huge blow, as beef is obviously a major
export form New Zealand, especially to the States, and the
tariffs have cost US over three hundred million since they

(00:30):
were introduced in April. But this weekend President Donald Trump
signed an executive order removing that extra fifteen percent on beef, coffee,
and tropical fruits, among others. Tropical fruits. It's a curious one,
isn't it. The move brings us back down to a
tariff of less than one percent, which is where we
were before this all began, and beef of beef and lamb.
New Zealand Chair Kate Ackland is with me now, Kate,

(00:53):
good afternoon.

Speaker 3 (00:55):
Good afternoon, nice to be here. Yeah.

Speaker 2 (00:57):
Were you expecting this?

Speaker 3 (00:59):
No, look, we weren't expecting this. What we have seen
with this current American administration is that things can change overnight,
and you know, sometimes it's for the worst, but in
this instance, you know, this was really good news.

Speaker 2 (01:11):
Actually, now that you've just said that, are we fairly
confident there is no chance that will see a reversal
of this position.

Speaker 3 (01:21):
Look, we're still working through the final details. At this point.
It does appear that all of those additional tariffs that
were imposed back in April and then increased again in
August I have been removed, which puts US back to
I think about one point three percent in quota tariff.
But look, as I said, you know, anything could happen.

(01:42):
You know, they say a week's a long time in politics,
and I think that's particularly true at the minute.

Speaker 2 (01:47):
Is this a result of hard work on our part
or is it just the Americans love their beef and
they need it.

Speaker 3 (01:54):
Look, I think it's a combination of issues. We've seen
record low herd numbers in the US and actually across
the world, so there is a global shortage of red
meat protein of living is hitting Americans just like it's
hitting people in the rest of the world. And you know,
Americans do love their beef. You know, we have a
really strong relationship with the American ranchers and their sort

(02:16):
of counterpart organizations because the simple fact is they need
our beef. Our beef is a really important ingredient in
their handburgers because we provide that really lean grass fed
trim that is combined with their fatty or American cuts,
and you know, that's what makes an American handburger. So
you know they do need us, and I think you
know their producers recognize that. So you know, it's great

(02:38):
that this move has been.

Speaker 2 (02:39):
Made on that theme. Then with the shortage, are we
where are we at with where we want to go
with our production of beef ramping it up?

Speaker 1 (02:48):
What?

Speaker 3 (02:49):
Well, interestingly, we always had some pretty significant declines in
sheep numbers, but we've actually seen a bit of an
increase in beef and you know that's probably largely around
market conditions, but there's also just some sort of land
use change factors coming into so no New Zealand beef
production is actually on the increase.

Speaker 2 (03:10):
So put it in perspective for us, how does what's
the benefit of having those tariffs lifted and how much
have they cost the beef industry.

Speaker 3 (03:18):
So we were looking about three hundred million dollars over
a year for those tariffs, so it is really significant
and that was off a base of virtually nothing. Now
Obviously some of that cost was being absorbed by the
American consumer, but some of it was also falling on
our processes as well, so you know, it's good news
for farmers and processes. The other interesting thing is, you know,

(03:39):
back in August and we all started on ten percent,
but back in August, New Zealand was increased to a
fifteen percent tariff. But countries like Australia and Argentina, who
are also selling a lot of beef into the US market,
they stayed on ten. So the fact that we were
different to some of our competitors meant that actually more
of that more of that tariff cost was having to

(04:01):
be absorbed by New Zealand.

Speaker 2 (04:03):
Okay, so of course you are a chair of beef
and lamb. Are we expecting any further tariff removers? Are
they like our lamb by any chants?

Speaker 3 (04:13):
Look, we're not expecting it on the land at this point.
But look, the US is a really important market for
both beef and lamb. It's a really high value market
for land, and you know, maybe the I think the
market dynamics and the land is slightly different because it's
more of a high value restaurant type offering.

Speaker 2 (04:33):
What how will this affect the demand now for is
it going to make a change to demand, I guess,
And actually, how does it affect things here? If there's
it's cheaper for Americans to.

Speaker 3 (04:46):
Buy our beef, well it's it's going to be interesting
to see how this plays out because obviously there's countries
like Brazil that had been facing in sort of a
sixty percent additional tariff that have also had their tariffs removed.
You know, you and I both know you go to
the supermarket and beef is incredibly expensive, and that's not
just New Zealand thaying that is all over the world

(05:08):
that there is this incredible pressure on beef as a
protein shortage. So you no, I don't think we'll see
it impact the New Zealand market, you know, the domestic
market too much. But we do know that there's been
a significant decline in the amount of product that we've
sent to the US since those tariffs came on. So
it will be really interesting to see if more product

(05:28):
actually starts to flow back into the US from some
of those other markets like Asia and the UK where
you know where we're diverted product too.

Speaker 2 (05:37):
Does it affect product the price of beef in New
Zealand or these goings on.

Speaker 3 (05:43):
Look New Zealand, we paid essentially global prices, so you
know at the moment red meat protein particularly is high prices,
doesn't matter where you are in the world, and you
know have to acknowledge that's a real challenge for consumers.

Speaker 2 (06:00):
Just this is slightly slightly tangential. But of course the
COP thirty things been going on. Do you keep an
eye on with regard to questions around the environment and
COP thirty and what's coming out of that because everyone
loves to have a crack at farmers while we love
eating the beef and drinking the milk of course, but
anything that's come out of COP thirty that causes concern
for you on behalf of all your farmers.

Speaker 3 (06:22):
Look, we're absolutely keeping an eye on what's happening over there. Interestingly,
we BEE from Land together with the British Farmers Union
have put together a joint position statement around taking a
split gas approach to how we talk about emission, so
treating me saying differently to long live gases and just

(06:45):
recognizing the importance of food production. Now we've got thirty
organizations from across fourteen different countries have signed up to
that position statement. So I think it was quite a
global movement happenings off the back of this cop that
looking at some of the targets that they're setting to
actually start treating emissions from fruit production differently, because anything

(07:07):
that puts a cost or reduces food production is going
to increase the price of food?

Speaker 2 (07:13):
Is that also? Is that also the policy is catching
up with the science because I know for a long
time farmers were frustrated that the science was telling us
that methane was a different in terms of its impact
on the environment, which is much less, and yet the
policy makers didn't seem to what to acknowledge that. Is
there something on that there's a bit of catch up
going on.

Speaker 3 (07:34):
Look, it's a work in progress. I think we're starting
to see recognition that methane is different and short of
gases are different. But obviously it takes a while for
policy and politics in this catch up.

Speaker 2 (07:47):
You think when you get eighty thousand people together at
a climate conference, you know they might be able to
make able to make some progress on that.

Speaker 3 (07:55):
Well, we'll see what comes out of it.

Speaker 2 (07:56):
Are you out in a paddock right now? Did I
hear some little animal sound there in the background.

Speaker 3 (08:01):
Ah, the little animal songs were little children politics for that?

Speaker 2 (08:06):
Actually, you know what I was actually about to ask.
I thought it was better to ask it that way
around because I thought, are those your children? And if
you said no, no, there's a little cattle or something,
I would have felt just as silly. But that's a
lose lose for me.

Speaker 3 (08:18):
Well, they are like wild animals.

Speaker 2 (08:21):
Yes, and they do create a bit of meat thing
from time to time of course as well. Hey, just
one last question, and this is a slightly trivia one
for Christmas? Where do I get the export quality beef
in New Zealand? Because I'm not sure if I've asked
you this before, but I met someone who was quite
highly placed in the beef industry and I was chatting about,
you know, some of the good cuts of steak and
he said, oh, there's no chance you'll get near of

(08:42):
that in New Zealand. All the good stuff goes overseas.
What's your response to that?

Speaker 3 (08:50):
It has been hard through winter to gets some of
their export grade steak in New Zealand. You know, obviously
the top butchers will carry it. Yeah. I don't know
about you, but I'm certainly going to be having land
this Christmas, and I'm hoping what head been Las Christmas
will happen again where we saw a lot of those
supermarkets running legs of land that is very good discounter

(09:12):
prices as an incentive to get people in the shop.
So I'm a big leg of land persons for Christmas,
did I?

Speaker 2 (09:18):
Yeah, butterfly on the barbecue.

Speaker 3 (09:20):
Here we go. Yeah.

Speaker 2 (09:22):
Sorry once again for the mistake about the noises in
the background, Kate, but I do appreciate your time this afternoon.

Speaker 3 (09:28):
Okay, very good, All the best.

Speaker 1 (09:31):
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