Korea FTA `falls short', deer sector say

Deer and cherry farmers have had different reactions to a free trade agreement with South Korea signed last month.

While cherry growers in Central Otago celebrated the agreement, their deer-farming neighbours are not happy frozen deer velvet has been excluded.

Deer Industry New Zealand (Dinz) chairman Andy Macfarlane said Dinz and New Zealand exporters had worked tirelessly in Korea to build markets for deer velvet antler and foster good relationships with the Korean deer industry.

''We are simply at a loss as to why frozen velvet has been excluded.''

''Although this free trade agreement was imperative for some industries, it clearly falls short of the comprehensive trade agreements that New Zealand has negotiated previously.''

Mr Macfarlane said he acknowledged the overall benefits of the free trade agreement but said it was much less than the deer industry thought was possible.

Sheep, beef and dairy farmers are expected to gain some benefit in the long run from the agreement.

Korea is New Zealand's fourth-largest beef export market by volume, taking nearly $110 million worth of beef exports last year. However trade volume had dropped in recent years.

Beef and Lamb New Zealand chairman James Parsons said Beef and Lamb's negotiations with Korea had been ongoing since 2009 but for beef exporters it was a lifeline in a market they were at risk of losing.

''This deal is great news for sheep and beef farmers and meat exporters.''

Summerfruit growers would benefit in the long term but it would be cherry exporters that would see the biggest impact. Summerfruit New Zealand chairman Gary Bennetts, of Roxburgh, said the free trade agreement with Korea would benefit Central Otago as the region was the country's largest exporter of cherry crops. At present, cherries are the only summerfruit registered to enter Korea.

''My expectation is that volumes exported will rise significantly, bringing about an economic return to growers.''

Cherry tariffs will be reduced to zero as soon as the agreement comes into force.

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