New Zealand's onion growers have leveraged the Free Trade Agreement (FTA) with the European Union, effective from May 1, to enhance their market position. The FTA eliminates a 9.6% tariff on New Zealand's onion exports to the EU, potentially saving growers approximately $3 million annually.
New Zealand, where about 85% of its onion production is exported, primarily to Europe and Southeast Asia, strategically delayed exports to the EU to align with the tariff removal. Onions NZ chief executive James Kuperus highlighted the release of onions from customs on May 1, allowing duty-free entry into the EU. While the exact volume of onions stored was not specified, Kuperus estimated up to 35,000 tonnes could enter the EU duty-free in the current year.
The early approval of the FTA by the NZ Parliament facilitated this strategic move. The FTA arrives as the industry recovers from setbacks, including significant crop loss in Hawke's Bay due to Cyclone Gabrielle. The current season has seen improved growth conditions, extending the export season and enhancing product quality. With a strong market demand, New Zealand's reputation for high-quality onions positions it well for exports to Europe, Southeast Asia, and China.
Source: ruralnewsgroup.co.nz