Federated Farmers welcomes potential FTA

Federated Farmers welcomes potential FTA

Federated Farmers is welcoming a potential Free Trade Agreement (FTA) with Russia and the opportunities it can created for New Zealand’s farmers.

“Russia is the fifth largest food importer in the world and one of the world’s largest dairy and meat importers, so free access to the Russian market would create great trade prospects,” says Don Nicolson, Federated Farmers President.

“Last year, New Zealand supplied 50 percent of the butter imported into Russia, a free trade agreement would create a potential to expand this even further.

“The plan also aims to include Russia’s Custom Union partners, Kazakhstan and Belarus so in total that’s over 167 million mouths that need feeding.

“According to the CIA Factbook, the Russian economy had averaged seven percent growth since the 1998 Russian financial crisis, resulting in a doubling of real disposable incomes and the emergence of a middle class. That’s a big opportunity for New Zealand exporters.

“In 2008 Russia imported around US$30 billion worth of food, meaning that if this agreement goes ahead it would create a really good opportunity for New Zealand food producers who want to get a foot into the wider European markets,” Mr Nicolson concluded.

ENDS

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