Britain and the European Union have sorted out their divorce deal, but New Zealand beef and lamb exporters are unhappy.
Restrictions on where the country’s prized cuts can be sent, and how much of them, has the industry concerned some exports will essentially have no value.
Around 80 to 90 per cent of the beef and lamb George Ritchie produces on his Wairarapa farm is sent overseas, but the regulations around where it ends up and its worth will be less clear come January 1.
"Most of our lamb or our prime beef would head towards Europe and the UK," he said.
New Zealand has a set quota of 1300 tonnes of beef and 228,000 tonnes of lamb exports to the EU and UK, with consumer demand and best economic return determining where the meat is sent.
Under the new Brexit rules, the quota will be split between the two parties. Lamb exports will be divided evenly, while 60 per cent of the beef will be sent to the EU, and the remaining 40 per cent sent to the UK.
“It removes the flexibility that our exporters have to respond to market dynamics and market demands,” the Meat Industry Association's Sirma Karapeeva said.
The biggest concern is New Zealand’s already small beef quota being divvied up further.
"It's really hard for companies to commit a long-term programme for such a small volume. There's a stat that says EU customers used to be able to eat a New Zealand steak once every 10 years. If we split that number between the UK and the EU, well, what is it? They'll get to eat a New Zealand steak once every 20 years,” Beef and Lamb New Zealand's Sam McIvor said.
Last year, the market was worth $1.5 billion. A proposal for more flexibility has been rejected.
“They’ve put themselves as global leaders in trade and bastions of free trade but splitting our quota absolutely flies in the face of all of those commitments,” McIvor said.
The Government has long said it’s committed to ensuring Kiwis aren’t left worse off as a result of Brexit. The Government today said that it will prioritise stability for traders after a deal was reached.
Beef and Lamb New Zealand said the deal is lose-lose for Kiwi exporters, and for British and EU consumers who may now find it harder to buy New Zealand meat.
“We need certainty, we want things to stay the same,” Ritchie said.
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