US tariffs create uncertainty for meat and dairy exporters, rain warnings issued across drought-hit regions, and second shear wool hold firm in declining North Island market.

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US tariffs create uncertainty for meat and dairy exporters

Primary sector exporters are carefully evaluating the impact of newly announced 10% US tariffs set to take effect from Saturday. The tariffs will affect a significant trade relationship, with NZ exporting $9 billion worth of goods to the US last year, up 9% on the previous year.

The United States has become New Zealand's largest market for red meat exports following China's recent weakness, with exports worth $2.7 billion in 2024. Beef accounted for $1.8 billion of that figure with 183,000 tonnes shipped, while sheepmeat exports to the US were valued at $625 million, making it our second-largest market by value.

Meat Industry Association chief executive Sirma Karapeeva acknowledges that while tariffs distort trade and reduce market efficiency, New Zealand exporters remain highly responsive to global market dynamics. With US beef herds at historically low levels and record domestic consumption, strong demand is still expected despite the new tariffs. Karapeeva notes that the measures may cause other exporting countries to redirect products to markets where New Zealand operates.

Fonterra is also working to understand the implications for its dairy exports, which are primarily value-added protein ingredients including caseins and whey protein concentrates. Simon Tucker, Fonterra's group director of global external affairs, emphasizes that the co-op has extensive experience navigating difficult trade environments and will continue to adapt.

 

Government working with exporters to navigate new US tariff reality

Meanwhile Trade Minister Todd McClay acknowledges the upcoming 10% US tariff is significant but emphasizes our exporters remain competitive against international rivals in American markets. The tariffs, taking effect this weekend, come as part of a broader US move that has hit many other countries with much higher rates.

McClay highlights that free-flowing trade best serves New Zealand's interests. He warns that tariffs ultimately impact the global economy through increased inflation, reduced demand, currency instability, and slower economic growth.

The Minister maintains that New Zealand's bilateral relationship with the US remains strong despite the tariff announcement. His office is actively seeking more information from the US Administration while consulting with exporters to better understand the specific impacts across different sectors.

McClay reaffirms New Zealand's commitment to advocating for a rules-based trading system as exporters prepare for the tariff implementation this weekend and adjust their strategies accordingly in what remains a crucial market for our primary sector.

Rain warnings issued across drought-hit regions

A massive atmospheric river weather system is bringing much-needed relief to drought-stricken areas with up to 400mm of rain expected to fall over the next day and a half. MetService has upgraded numerous weather watches to orange heavy rain warnings as the largest weather system of the year moves across the country.

The heaviest falls will hit northern regions first, with Northland currently under a warning that began at 10am yesterday and continues until 1pm today. 

Bay of Plenty and Gisborne should prepare for heavy downpours from 6am this morning with up to 160mm expected inland and about the ranges. The Coromandel Peninsula has been under warning since 1am this morning, while farmers in the Tararua Range face 18 hours of heavy rain starting from 11am yesterday.

Civil Defence warns that while the rainfall brings welcome relief for drought-affected farms, rivers will rise rapidly with potential for slips and surface flooding. 

Additional warnings and watches cover Waikato, Waitomo, Taumarunui, Tongariro National Park, North Taranaki, and parts of the South Island including Marlborough, Grey District, and Canterbury lake headwaters.

 

Research shows GM crops can co-exist with conventional farming

Co-existence between genetically modified crops and conventional farming systems is achievable in New Zealand despite challenges, according to new research by leading researcher and Chief Technical Officer for AgResearch subsidiary Grasslanz Technology, John Caradus. The findings come as Parliament considers the Gene Technology Bill which would expand GM and gene editing use in the primary sector.

Caradus examined global experiences in his recently published study in the New Zealand Journal of Agricultural Research, noting that several countries successfully manage both GM and non-GM production, including organic farming. Even nations with extensive organic agriculture also maintain significant GM crop production, proving these systems can operate alongside each other.

For organic farmers particularly concerned about zero-tolerance GM regulations, Dr Caradus highlights that effective co-existence depends on proper planning and communication within farming communities. While contamination incidents were common in the first decade of commercial GM crop use globally, such occurrences have decreased in recent years.

The research identifies key strategies for successful co-existence including on-farm management to prevent pollen dispersal and seed movement, alongside downstream segregation during processing. Biological containment methods through genetic manipulation can also disrupt pollination and fertilisation processes to prevent cross-contamination.

 

Second shear wool hold firm in declining North Island market

The North Island wool market has recorded a significant correction with only 75 percent of the offering sold at yesterday's sale in Napier. The wool auction saw buyers firmly resist poorer quality wools with lamb's wool and oddments taking the biggest hits in a generally flat sales environment.

Second shear wools provided the only bright spot in the market, with very good quality types maintaining similar price levels to the previous Napier sale. Good style second shears in the 50-75mm length range achieved $3.81 per kilogram clean, up 5 percent on the previous auction.

Average style crossbred fleece in the 30-31.5 micron range fell 4 percent to $3.79 per kilogram clean, while poor style wools in the same micron range dropped 6 percent to $3.44. Crossbred oddments suffered a 6 percent decline, selling at $2.92 per kilogram.

The North Island Strong Wool Indicator fell 20 cents from the March 20 sale two weeks ago, with the market sentiment described as noticeably subdued by PGG Wrightson North Island Procurement and Sales Manager Steve Fussell. The next North Island wool sale is scheduled for April 16.

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