Cabinet decisions on regulated dairy export markets
[NB: The following is a summary of decisions. The proposed Amendment Bill will outline the detail.]
On expiry of current allocations, remove export restrictions for:
- butter to Canada (both in and out of quota)
- the part of the market for cheddar cheese to the US where New Zealand cannot designate the importer(s)
- the part of the market for NSPF cheese to the US where New Zealand cannot designate the importer(s)
- the part of the market for American-type cheese to the US where New Zealand cannot designate the importer(s)
- all out-of-quota trade to the US cheese markets
- cheese to Japan.
On expiry of current allocations, allocate licences to multiple exporters for:
- milk powder to the Dominican Republic
- butter to the EU
- cheddar cheese and cheese for processing to the EU
- low fat cheese to the US
- the part of the market for cheddar cheese to the US where New Zealand can designate the importer(s)
- the part of the market for NSPF cheese to the US where New Zealand can designate the importer(s)
- the part of the market for American-type cheese to the US where New Zealand can designate the importer(s)
- prepared edible fat (PEF) to Japan.
Until the quota is filled in each quota year, restrict out-of-quota trade for:
- milk powder to the Dominican Republic
- prepared edible fat (PEF) to Japan.
Allocation mechanism
- export licences allocated on the basis of percentage of milk solids collected directly from dairy farmers in New Zealand in one season or the average of two seasons
- minimum threshold for receiving a share of export licences: 0.1% of milk solids collected
- minimum volumes allocated: 20 tonnes or more of product, (with any relinquished volumes being reallocated pro rata to remaining eligible participants)
- term of allocation: for allocations made during a transition period of 2007 to 2009 inclusive (applying to quota years beginning in 2008 to 2010 inclusive), allocating export licences for terms of one quota year at a time
- following the transition period, allocating export licences for terms of 3 quota years at a time.
Other:
- Trading licences: export licences will be tradable between registered dairy exporters.
- Interim measures for Canada and Dominican Republic: The Government will, by order in Council;
- reallocate export rights for milk powder to the Dominican Republic, to Fonterra till 31 December 2007; and
- reallocate the export rights to the regulated market for butter to Canada, to Fonterra till 31 December 2007.
Contact for enquiries:
Rachel Nicholas
MAF Policy
PO Box 2526
Wellington
