Todd McClay: Trade Minister on export momentum, new trade deals

The Trade Minister says New Zealand's hustling on the world stage, looking for every opportunity.  

KPMG's latest Agribusiness Agenda suggests New Zealand can't rely on our usual global customers and needs to look for new markets.  

Trade and Agriculture Minister Todd McClay says this is a priority, with free trade negotiations in full force with India  

He told Mike Hosking we also have to keep growing the value of our exports, something our primary sector's already seeing success with.  

McClay says there's growth across the board because our farmers produce the highest quality and safest food. 

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Episode Transcript

Speaker 1 (00:00):
If there has been a bright spot in our economy,
it's come from the land. Of course, dairy is booming
the seasons wrapping up literally as we speak, with record prices.
April stats out this morning show we've got an additional
one point one billion in red meat exports. The big
question is is there more where that came from? Todd
mclair is of course the Minister of Agriculture and Trade
and as well as very good morning to.

Speaker 2 (00:19):
You, Good morning mate.

Speaker 1 (00:20):
There's a report out this morning KPMG there Agribusiness Agenda.
It says this we can no longer rely on the
usual international customers. We need to look for new markets.

Speaker 2 (00:31):
Are we well, we are looking at They're right, although
I think we can rely upon those markets. But we're
going to keep looking for more and keep growing the
value of what we're exporting. The reason you've seen us
do those two d trade deals in the Middle Ease
last year and launched with India. So we're going to
keep looking for that. But that growth in the primary
sector four and a half billion more and dairy one

(00:53):
point two billion more in red meat. We're seen ZESPRI
hit five billion dollars exports for the food time ever
this year, Look, there's growth across the board. That's because
the New Zealand farmers produced the highest quality, safest food
of the world and consumers are after that. And so
we're out in the world stage hustling and looking for
every opportunity.

Speaker 1 (01:13):
You mentioned India, Where are we at that? What has
actually happened?

Speaker 2 (01:17):
So a lot of exchanges of texts. The first full
round of negotiations took place in India a couple of
weeks ago. Heavy going, but there was progress made. I'm
on a plane over the weekend and we'll be meeting
with my counterpart from India in Paris at the OECD,
just to make sure we're moving in the right direction
and for both sides to give a signal to our

(01:38):
negotiators go faster. So we're making progress, but going to
be hard work.

Speaker 1 (01:42):
How much government is in this sort of conversation, as
much as you'd like to participate. So when you're selling
the bolt dairy products, whether you're selling the zespri, when
you're selling the wine, how much of that overall success
and equation is what the government did or does do well.

Speaker 2 (01:58):
I think in as far as if you think about
the European Union, of the UK. We've seen significant growth
in that market, so billion dollars extra exports to the
EU over the last year since the FDA came into place.
So governments play the role. And as far as we
negotiate deals with our negotiators which gives QE explorers a
level playing for at field or an advantage, we think

(02:19):
that to make sure the regulations in New Zealand not
just piling costs. And think about farmers, right, there were
twenty one extra rules and regulations put on farmers over
the six years of labor which just piled cost on
them and made them less competitive. We've been taking those away,
fixing them, you know, making sure they work and just
don't add cost to the farm gate so that the
farmers can be going better and faster, producing more than

(02:40):
the world wants. So we're going to remain competitive both
in New Zealand but open up those doors overseas.

Speaker 1 (02:45):
A couple of other things out of as KPMG report,
biosecurity the top of the must do list. Are we
on top of biosecurity or not?

Speaker 2 (02:52):
Yes, but always more to do. Andrew Hargad and I
focus on this all the time. Probably if there's one
thing that keeps me awake at night, it is something
getting over the border. And so I'm just going to
make sure we have the very best people with the
resources they need. Although we've been having to, you know,
look at waste for spending, we're actually pulling a bit
more into biosecurity and no cuts at all to the

(03:12):
front line and frontline services. But that's the number one
thing we need to focus on. The reason for that
is it's our reputation. You know, if we get pest
disease and here, then that reputation for high quality, safe
food starts to be hit around the world.

Speaker 1 (03:25):
The other thing they say, maintain migration settings. We need
to grow a skilled labor force locally rather than relying
on migrant labor fare.

Speaker 2 (03:32):
And if so, well, I think it's both of those things,
isn't it. We need New Zealanders to be doing the
jobs and be trained into those areas. But because we
know there's a great, big backlog in that, and you know,
think about a truck driver taking something to report great
big truck it takes years and years to get that experience.
So in the meantime, we do need labor from around

(03:52):
the world to make sure that our businesses can function.
So I think it's both those things.

Speaker 1 (03:56):
Okay, another reporter red yesterday came from Lincoln University shit
a couple of really interesting things. We could earn another
ten billion over five to seven years through better land use,
integrating horticulture into traditional pastoral systems, developing on farm processing
to capture more value locally, mari agri business, high value
niche products, manuka honey, native biotentacles, etc. Are we on

(04:17):
top of that?

Speaker 2 (04:18):
So I agree completely with that. We have had rules
of place in New Zealand for such a long time
that says you can't do things with your own land,
even if there's a better or improved environmental or climate
change outcome or footprint. I'm having a really good look
at that and won't announce me now, but give me
another month or so we'll be talking about a lot.
What we should be doing is saying to farmers we

(04:39):
back here, we trust you. If you can show in
the same or improved environmental footprint on your land, go
for it. Get the greater value out of that land,
including where you want to do more processing right there?

Speaker 1 (04:50):
What about the budget and the depreciation? Is that boom times,
are people actually going to pull the trigger or we
still don't know.

Speaker 2 (04:57):
I am hearing from or on New Zealand. But more
than that from processes from the you know, the wood
processing industry that as a result of this additional depreciation
on day one, that they are going to pull the
trigger and start spending money, many of them wanting to
do things in holding back. But think of it this way.
A farmer goes out and buys a tractor worth one
hundred thousand dollars. There's nine thousand dollars in tax saving

(05:21):
just from that purchase from Nicole Wilson's new policy. Guess
what he's going to do. He's not going to save
and he's going to recycle that and spend that nine
that nine thousand dollars somewhere else in the economy that
supports jobs and grows other businesses. So I think the
Field Days will be unbelievably good this year.

Speaker 1 (05:37):
Good stuff always good to talk Minister of Agriculture and
try Todd McLeod's good portfolio to head at the moment,
isn't it?

Speaker 2 (05:43):
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