An ongoing report shows New Zealand’s horticultural export industry has seen no respite from huge tariffs in major Asian markets.
According to the report New Zealand fruit and vegetable exporters will pay in excess of NZ$240m (US$198m) in tariffs this year. This figure is up slightly on two years ago when tariffs cost the industry NZ$235m.
Stephen Odgen, of Market Access Solutionz, which prepared the report for the Horticulture Export Authority and Horticulture New Zealand, told Radio New Zealand the company had taken a conservative approach in estimating costs, which represent a significant loss to growers.
'And it's not shared evenly, there are big differences between, for example, the NZ$5,000 - $6000 per capsicum or summer fruit grower and NZ$120,000 if you're a squash grower,' he said.
Of all Asian markets, India imposed the highest average tariff at over 45 per cent, while South Korea and Taiwan followed closely.
New Zealand trade minister Tim Groser told Radio New Zealand alleviating horticultural tariffs remained a major challenge for the country despite the opinions of some economists who question their significance.
'We face massive tariff barriers actually, New Zealand is probably more effected than any country in the world by tariff peaks, which are concentrated in agriculture, the solution to which can only come through successful trade negotiations.'
The report showed New Zealand growers suffer an average yearly income loss of NZ$44,000.
Despite tariffs and other trade barriers, the value of the country’s fruit and vegetable exports has risen this year to NZ$2.3bn.
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