Early Bird I Wednesday April 23rd 2025

Upgraded trade deal opens doors for Kiwi exporters, drought relief payments roll out to struggling farmers, and strong finish predicted for dairy season despite seasonal dry-off.

Welcome to Proud Country's Early Bird - The top things you need to know that impact rural New Zealand delivered to you by 5am, because who doesn’t need better chat beyond the weather!

 

Upgraded trade deal opens doors for Kiwi exporters

An upgraded free trade agreement between New Zealand, Australia and ten Southeast Asian nations has come into force, delivering new opportunities for Kiwi exporters in key Asian markets.

The enhanced ASEAN-Australia-New Zealand Free Trade Agreement strengthens trade ties with a region that collectively forms New Zealand's fourth-largest trading partner. The upgraded agreement focuses on streamlining customs processes, improving the flow of essential goods during crises, and reducing non-tariff barriers that have historically hindered access to these markets.

Rural exporters stand to benefit significantly from the improvements as the deal sharpens rules for services, e-commerce and supply chains. While most New Zealand goods already enter ASEAN markets tariff-free, the upgrades give producers additional tools to navigate regional trade more efficiently. Trade Minister Todd McClay says this provides much-needed certainty for Kiwi businesses looking to expand their operations across Southeast Asia.

The timing of the upgrade coincides with ASEAN's 50-year dialogue partnership with New Zealand and represents a combined two-way trading relationship worth more than $59 billion annually. The ten ASEAN nations include major agricultural importers Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam, along with Brunei, Cambodia, Laos and Myanmar.

 

Drought relief payments roll out to struggling farmers

Drought-stricken farmers across large parts of the country will receive financial assistance starting next Monday, with Rural Assistance Payments being rolled out to help meet essential living costs during the ongoing dry conditions.

The support package targets 27 districts throughout the North Island and upper South Island where farm incomes have been severely impacted by prolonged low rainfall. Payments will be available for six months until October 28, when seasonal farm incomes are expected to improve. Rural Communities Minister Mark Patterson acknowledges farmers still face challenging times ahead, particularly with winter approaching after the drought conditions.

Eligible regions include Northland, Waikato, Taranaki, Manawatū-Whanganui including Tararua, as well as Marlborough, Tasman and Nelson in the South Island. Social Development Minister Louise Upston says the government wants to ensure timely support reaches those whose livelihoods have been significantly impacted by the dry conditions.

Farmers experiencing financial hardship are being encouraged to contact their local Rural Support Trust to learn about available assistance options and how to apply for the payments. The Rural Support Trust network provides a crucial link between struggling farmers and government support services during adverse events like drought.

 

Strong finish predicted for dairy season despite seasonal dry-off

Dairy farmers are heading toward a strong finish for the 2024/25 season with March milk production surprising analysts by posting a 0.8 percent increase in milksolids compared to the same month last year.

The positive production figures, combined with two consecutive price increases at Global Dairy Trade auctions, suggest dairy farmers will end the current season on solid footing while establishing a strong foundation for next season. According to NZX data, New Zealand produced nearly 174 million kilograms of mil