Onion exports to Indonesia are set to resume without the need for pre-export methyl bromide fumigation, following successful negotiations. Previously, in December 2023, the enforcement of a regulation by Indonesian officials demanding this fumigation had halted exports. This cessation impacted the industry significantly, with exports to Indonesia previously valued at $45 million. The cessation was costing the industry approximately $5 million a week, as stated by Assistant Agriculture Minister Nicola Grigg at the Hort NZ Conference.
Grigg praised the efforts of the Ministry for Primary Industries (MPI) and Ministry for Foreign Affairs and Trade (MFAT) in resolving the issue, allowing for the agreement that will enable onion exports to proceed without the need for fumigation. According to Onions New Zealand, this agreement will result in the export of ten to twelve thousand tonnes of onions to Indonesia in 2024, generating an estimated $5 million.
The focus on dismantling non-tariff barriers with trading partners is part of the government's broader strategy to enhance trade relations, as highlighted by Grigg. She also emphasized the importance of leveraging New Zealand's extensive trade agreements globally, particularly highlighting the potential in South East Asia, where horticultural exports constituted about 10% of the total last year.
Grigg underscored the significance of building strong relationships in export markets and noted the expected growth in horticulture export revenue, which is anticipated to reach a record $7.1 billion by 30 June 2024. She reaffirmed the government's commitment to supporting the sector's success and encouraged the horticulture sector to actively pursue their vision for growth.
Source: Rural News