New NZIBF director outlines exporters’ response to tariffs

New NZIBF director outlines exporters’ response to tariffs

The New Zealand International Business Forum (NZIBF) has entered a new chapter of leadership, with Felicity Roxburgh stepping in as executive director at a time of heightened geopolitical uncertainty.

Roxburgh brings almost 20 years’ experience in trade and foreign policy. She has served in senior roles at the Ministry of Foreign Affairs and Trade, with postings in Hong Kong, New York and in the Pacific. Most recently, she was New Zealand’s Consul-General in New Caledonia, and before that led the business programme at the Asia New Zealand Foundation. She succeeds Stephen Jacobi who helped establish NZIBF in 2007.
Roxburgh had little time to ease into the role. Just weeks after joining the Forum she was fronting 15 media interviews on the United States’ sudden 15% tariff on New Zealand goods.

“There is a large appetite to understand what is happening in clear, simple terms and the impact on our exporters,” she says. “People knew the tariffs were going to impact us, but they didn’t know how or why.”

One of her top priorities is ensuring the fast-moving responses of business are better understood.

“Companies are responding to tariffs, supply chain disruption and investment uncertainty in real time”. Whether through scenario planning, diversifying into new markets or passing on costs to importers and consumers, she says these real-time adjustments are often invisible in high-level policy discussions, yet they are vital for resilience and competitiveness.

She is also focused on the future of New Zealand’s free trade agenda. Roxburgh points out that while New Zealand benefits from a dense “elaborate spaghetti network of free trade agreements”, gaps remain. “India and the US are the big missing pieces,” she says, noting that the government is putting huge investment into growing the India relationship and negotiating an FTA.

“At the same time, behind-the-border barriers — non-tariff costs — hit our exporters up to $10 billion a year. It’s a huge challenge.”

She also sees real opportunity in major trade blocs deepening collaboration. “If the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union were to do something together — and with us being a member of the CPTPP — it would be around 30% of the global trade. That’s one to watch.”

For Roxburgh, NZIBF’s role in the current climate is clear: to amplify exporters’ experience and work with the Government to push forward on market access.

“What does a business response look like to geopolitical uncertainty? Scenario planning, diversification, pricing changes, working with partners. These are practical steps companies are taking, and that’s the story we need to tell.”

Mood of the Boardroom: Leaders back model of partnership (NZ Herald)

A strong majority of business leaders back the idea of reviving a formal partnership between government, business, unions and sector leaders to tackle New Zealand’s most pressing challenges.

In the Mood of the Boardroom survey, 68% say they would support the model, while 14% oppose it and 18% are unsure.

Many CEOs see clear merit in bringing diverse voices together. “Anything that tries to unify stakeholder groups has to be beneficial,” says Deloitte chairman Thomas Pippos. The CEO of a large law firm calls it “an excellent idea, a credible forum to genuinely listen and focus on solutions for a few key priorities.”

Supporters point to overseas examples, with Sanford managing director David Mair, noting a model “à la Ireland, but must include education”. Others say a refreshed, time-bound forum could help with skills, technology adoption and productivity. As Institute of Directors chief executive KirstenPatterson puts it: “New Zealand’s challenges are too complex for the Government to solve on its own. We need a genuine partnership.”

But not everyone is convinced. The New Zealand Initiative chairman Roger Partridge warns against privileging a few organised voices over others and the risk of “lowest-common-denominator compromises, more bureaucracy and less accountability”. He says “government should consult widely, but policy must be driven by the public interest, not insider deals with a handful of stakeholders”.

Others doubted unions’ willingness or ability to contribute constructively, a top recruiter saying: “I don’t believe unions have an intention to address challenges. The teachers’ union, for example, has created an industry of underperformance.”

For some, it came down to execution. “If they can get things done and not slow things down, it could work,” says an energy chairperson. A banking boss is more sceptical: “It sounds like such a good idea, but I’d be dubious it would get off the ground and deliver tangible action.” Tim McCready

Mood of the Boardroom: Domestic anxieties weigh heavy (NZ Herald)

Executives were asked to assess their level of concern on a range of domestic issues. The highest-scoring pressures were little changed from last year, with boardroom anxieties once again concentrated on energy, infrastructure, and the cost of living.

Energy security (7.26/10) and energy price increases (7.41/10) were rated among most pressing domestic concerns, along with inflation/cost of living pressures (7.27/10), infrastructure and roading constraints (7.33/10), and government policy uncertainty (7.15/10).

“Energy affordability over the last five years has undermined our international competitiveness and reduced shareholder investment sentiment,” one CEO observes.

Another was more blunt: “Lack of electricity is one of the biggest handbrakes to the economy.”

Political stability is also weighing on sentiment. “The biggest concern is political uncertainty over a re-election of Labour or a strongly left-leaning Labour-led coalition,” says an agribusiness leader.

Others pointed to coalition politics itself as corrosive. “Particularly the attempts to score points by undermining large businesses in New Zealand,” from an energy boss.

The tone of the national debate also drew criticism. A healthcare sector leader argues: “New Zealand is in desperate need of a narrative change to support success. The focus on negative stories within the press is creating self-harm toward our future.”

Housing, too, emerged as a central influence on confidence. As one CEO noted: “Flat house prices are impacting business confidence. Our mental model of wealth and confidence is driven inordinately by house prices. Domestic mortgages are used to finance many SMEs, but also personal confidence. Whilst these wallow it is hard to see consumer and business confidence move significantly.”

And while capital remains available, executives say deploying it remains fraught.

“Availability of capital is not a concern, but being able to get capital actually invested in assets in New Zealand is of concern,” says an energy firm CEO. “Regulators fundamentally fail to understand New Zealand is in a competition for capital and we make it very hard to genuinely compete. Few investors look to New Zealand as a growth play, they invest as a yield play.”

A healthcare boss sums up the overall sentiment: “These ratings do not necessarily reflect my personal views, rather what I have heard in general boardroom discussions. The prevailing mood is still cautious, fragile, and waiting for clearer signals from political leadership.”

Or, as a recruitment executive puts it more simply: “Hoping we have bottomed out – and the only way is up.”

Stark sector differences in optimism
Optimism among New Zealand’s leading industries is deeply uneven, with agribusiness and real estate lifting confidence while energy, government and education remain stuck in the doldrums.

On a scale, where 1= ‘much less optimistic’ than a year ago and 5= ‘much more optimistic’, agriculture/agribusiness and real estate topped the rankings, each scoring 3.80/5.

Last year, the real estate industry also topped the table with an average score of 4.33/5, while agriculture/agribusiness scored 3.86/5.
A dairy industry leader said “demand for dairy remains solid. Tariffs have had little real impact to date. We remain deliberately well diversified and just have to navigate the rest”.

A horticulture executive adds that “geopolitical uncertainty has increased” – a common comment across export-facing industries.
Harcourts New Zealand managing director Bryan Thomson describes the property market as having been “a very challenging environment,” but said he was “optimistic improvement is underway.”

Construction (3.67/5), technology (3.63/5), professional services (3.47/5), finance (3.47/5) and airlines (3.33/5) also scored relatively strongly compared to a year ago.

Deloitte New Zealand chair Thomas Pippos pointed to the cyclical nature of markets: “While timing of rebounds will always be difficult to predict, it’s reasonably likely we will see a rebound in the next 12 months – in part also as it will be an election year and there will be some government stimulus.”
At the other end of the spectrum, government and education sectors both languished at 2.0/5, joined by entertainment and leisure (2.2/5) and utilities/energy (2.4/5).

An education leader summed it up bluntly: “Less optimistic. The market’s tougher, costs are higher, demand is weaker, and nothing about the outlook gives confidence that things will improve anytime soon.”

University of Auckland vice chancellor Dawn Freshwater says global headwinds are adding to the pressure: “Global trends in higher education indicate a wave of additional threats that the education sector has to face into.

“Public interest and government oversight of research will increase the importance of brand ambassadors and continuing to negotiate the social contract with society as a whole around universities.”

Energy executives struck a similar note of caution. “While demand in our sector is strong, translating that into broader economic growth is still a long game,” says one leader. “It requires bipartisan support. We cannot tax our way out of the current state.”

Mood of the Boardroom: CEOs urge more Reserve Bank OCR cuts (NZ Herald)

Mood of the Boardroom: CEOs urge more Reserve Bank OCR cuts (NZ Herald)

A strong majority of business leaders back the Reserve Bank cutting interest rates further to support the economy. In the Herald’s Mood of the Boardroom survey, 78% say the official cash rate (OCR) should continue to fall, while just 11% oppose further cuts and 11% are unsure.

The OCR was most recently cut by 25 basis points to 3.00% in August 2025 – its lowest level since 2022, reflecting ongoing efforts by the Reserve Bank to support a sluggish economy.

The OCR has been on a steady downward trajectory since August last year, with multiple cuts already enacted and further reductions likely before the end of the year.

Many CEOs see lower rates as essential to kick-start growth. “It is critical if NZ is going to get moving again that interest rates come down, and much faster than the current plan,” said one respondent. Another added, “2.50% to get the economy firing again.” Several argued that cuts would only be effective if paired with more supportive bank lending and other government policies to ease cost pressures.

Others urged caution. “Rate cuts alone don’t seem to be shifting the dial,” said one executive, who stressed that long-term stability matters as much as short-term relief. Another noted, “The OCR is neutral at present. Weak growth says cut more, but there seems to be an undercurrent of pricing pressures too.”

Inflation concerns were a recurring theme. “The Reserve Bank should only reduce the OCR if it believes that is compatible with its objective of keeping inflation at between 1–3%,” said one business leader. Another warned, “We certainly would not want to go back to the inflation experience of the post-Covid time.”

Some respondents expressed frustration with the central bank’s culture and communication. “They have been too slow to cut rates and should move more swiftly,” said an SME boss, while another criticised the bank for being “very inaccessible and detached from the business community.”

A few executives stressed that monetary policy cannot carry the load alone.

“Yes, but not in isolation — pair rate cuts with sensible lending settings so banks can responsibly back first-home and other buyers,” suggested one. Another added: “The OCR is not the only solution.”

Mood of the Boardroom: Boardrooms split on staff as AI reshapes workforce (NZ Herald)

Mood of the Boardroom: Boardrooms split on staff as AI reshapes workforce (NZ Herald)

New Zealand’s boardrooms are split on the outlook for projected staff numbers, with the Mood of the Boardroom survey revealing a near three-way divide over whether headcount will increase, remain steady or decrease in the year ahead.

Asked if they expect to make changes to staff numbers over the next 12 months, 30% of respondents say they anticipate increasing staff numbers, while 33% expect to cut back. A further 35% forecast no change, with the remaining 2% unsure.

The mixed sentiment underscores a business environment where leaders are juggling cost pressures, technological disruption, and the demands of growth.

One executive in the tourism industry was blunt: “We have and continue to reduce staff numbers as we take costs out.”

A logistics boss notes, “We are rolling off a period of intense capital project delivery.”

Technology is a recurring theme in workforce projection. Several CEOs pointed to automation and AI reshaping the size and shape of their workforce.

“Technology advancements could well result in fewer jobs in some areas (corporate), whereas as assets and the balance sheet grows, and there is more development and construction going on, the workforce is likely to increase,” says one experienced chairperson.

Others spoke of balancing efficiency with future capability.

“We’ll continue to adjust resources to match demand and ensure the business stays efficient — focusing on keeping essential roles while scaling back where necessary,” says Anne Gaze, of Campus Link Foundation.

Some businesses remain in contraction mode. The CEO of an engineering firm says: “Due to the industry slowdown, our business has had to make difficult decisions around staff right-sizing … Looking forward, it is more about focusing on what skills and capabilities are required in the future.”

There are also generational concerns.

“We have dropped significantly in the last two years but hope to be able to start recruiting graduates again, subject to projects progressing in the economy,” one executive in the construction sector says, warning younger staff have been “hit the hardest” as clients resist paying for inexperienced talent.

For others, their infrastructure pipeline is expected to drive demand: “The significant infrastructure development programme underway will continue to gain momentum in the year ahead and associated staffing growth will reflect that,” says Auckland Airport chief executive Carrie Hurihanganui.

Mixed opinion on access to skilled talent
Business leaders are mixed on whether attracting and retaining skilled talent has become easier or harder in the last year, but the overall sentiment leans toward it being a moderately challenging issue.

On a scale of 1 to 5, where 1 equals very difficult and 5 equals very easy, the average score was 2.95/5.

For some, access to skilled labour has eased in the past year, with a softer economy and higher unemployment increasing the pool of available candidates.

Several note they are receiving record numbers of applications, describing the current climate as an “employer’s market”.

Executive director of the Retirement Villages Association, Michelle Palmer, says: “We’ve seen a huge number of applications for roles in the past six months — unprecedented numbers — a sign of the times in the current unemployment environment.”

An education provider observes that “redundancies have released a lot of competent people into the market”, but says retaining top performers remains difficult.

Yet many stress that the challenge is far from solved, particularly in specialised fields.

Advanced technology, R&D, digital, AI, engineering, and data analytics are all cited as areas where skills are scarce.

The lure of higher wages in Australia and beyond features prominently, with multiple executives highlighting a “flight to Australia” across professions including law, health, and infrastructure.

One leader describes it as “alarming”, while another says young lawyers are now departing earlier in their careers than ever before.

Cordis managing director Craig Bonnor adds that “talent retention of Kiwis in the early to mid-career phase is the most challenging”.

At the same time, pressure is coming from within New Zealand. Downer NZ chief executive Murray Robertson warns that “the entry of international firms into the New Zealand market for major projects is placing additional pressure on local businesses to retain key talent.”
Pipeline certainty in infrastructure also looms large. An engineering leader cautions that “without certainty in the pipeline, we won’t attract the skilled workforce required”.

Regional differences are also apparent. Institute of Directors CEO Kirsten (KP) Patterson says Wellington is increasingly at risk of losing its brightest talent, “as they are losing confidence that they can successfully raise careers and families in a vibrant capital city”.

Immigration settings drew mixed views. Some report improvements under the current government, making it easier to recruit nurses and caregivers, while others say changes had done little to ease shortages in critical, high-demand sectors.

As one technology leader puts it: “For AI skills, things are very, very difficult. But for other roles, it is typically not a concern.”

While New Zealand’s lifestyle and reputation for innovation continue to draw talent, executives stress that retention depends on competitive pay, career development, and building purpose-driven organisations.

As Harcourts managing director Bryan Thomson sums up: “The business world relies on talent acquisition and retention.

“Now as always, this is the number one challenge for every leader.”

Mood of the Boardroom: The KiwiSaver conundrum (NZ Herald)

Mood of the Boardroom: The KiwiSaver conundrum (NZ Herald)

A narrow majority of business leaders believe New Zealand’s large capital pools should play a greater role in funding critical infrastructure.

Just over half (54%) of respondents to the Mood of the Boardroom survey say infrastructure development should rely more on investment from the NZ Super Fund and KiwiSaver funds. A further 28% are unsure, while only 18% oppose the idea.

Supporters see an opportunity to keep capital working at home and create long-term benefits.

“KiwiSaver funds will have $295 billion to invest in New Zealand if the opportunities are there,” says Simplicity founder and chief executive Sam Stubbs.

“It will create many high-paying jobs. But if sent overseas, it will create exactly zero jobs at home. Go figure.”

Some point to international precedents where retirement savings have been successfully channelled into infrastructure, with one calling it a “proven model globally.”

Others urge caution, noting that fiduciary duties require investment decisions to prioritise returns. “It depends on returns. The primary focus is to ensure we have sufficient to meet retirement commitments,” says a banking CEO. An experienced chairperson warns against “poor quality, poor return projects promoted by politicians” that risk good money chasing bad.

A similar point was raised by Milford Asset Management CEO Blair Turnbull: “We strongly support sustained investment in New Zealand’s infrastructure, underpinned by long-term bipartisan planning and a robust governance framework that leverages both public and private capital. In the context of KiwiSaver, we welcome the expansion of listed infrastructure opportunities, provided we remain anchored to the scheme’s core purpose: safeguarding long-term retirement savings.”

Executives stress the need for strong governance, commercial mechanisms such as tolling, and bipartisan planning. Some also argue for policy reform, including compulsory KiwiSaver and an Australian-style superannuation model to build a larger domestic capital base.

Mood of the Boardroom: Peters rises as Seymour and the Greens slip with CEOs (NZ Herald)

Mood of the Boardroom: Peters rises as Seymour and the Greens slip with CEOs (NZ Herald)

Chief executives are moderately positive about the novel shared Deputy Prime Ministership arrangement, born from coalition negotiations between Prime Minister Christopher Luxon, Winston Peters, and David Seymour.

Peters served as deputy for 18 months before handing the title to Seymour on May 31 this year.

The arrangement scored 3.07/5 by respondents to the Mood of the Boardroom, on a scale where 1 means “not impressive” and 5 equals “very impressive”, with many surprised at how smoothly it has functioned, given the potential for friction between three leaders with different political styles and priorities.

“Didn’t predict that!” says one. Another remarks: “For the most part, behaving like responsible adults … it has worked so far.”

Several note the coalition’s cohesion: “They have done very well bringing three diverse leaders together,” while another observes: “Surprisingly cohesive… so far.”

However, not all share this positive view. The head of a prominent law firm labels both deputy leaders as “terrible and destructive for New Zealand”, calling for a rethink of the MMP voting system itself.

An engineering CEO was also critical, saying the arrangement “doesn’t work – too much competing with own agendas and too many egos. Minor parties have too much to say on policy setting in New Zealand.”

Several respondents feel the arrangement has weakened the Prime Minister’s position.

“Playing politics and creating a weird dynamic. This has not strengthened the PM’s position and, in fact, at times undermines him,” notes an infrastructure boss. A logistics CEO says: “The Government did not need the change mid-term. An unnecessary distraction.”

Minor party leaders
New Zealand First leader Winston Peters once again emerges as the most impressive minor party leader, receiving a score of 3.70/5 from business leaders, up from 3.40/5 last year. He is the only minor party leader to increase his score year-on-year.

A CEO in the logistics industry remarks: “Peters is very effective in foreign policy, but I am aware of the MMP politics around rail, which is not impressive.”

NZ First has pushed a broad agenda — from controversial proposals like the since-withdrawn Fair Access to Bathrooms Bill and legislation to define “woman” and “man” in biological terms, to measures targeting banks’ use of ESG criteria. It has also championed judicial reform, limits on the Waitangi Tribunal, and advanced the $1.2b Regional Infrastructure Fund to boost provincial economies.

At its annual conference this year, Peters unveiled further ambitions: compulsory KiwiSaver contributions rising to 10% and offset with tax cuts, a migrant “values statement”, and legislation to make English an official language.

The event also featured former Labour minister Stuart Nash, fuelling speculation about a role with the party. Days later, Nash resigned from Robert Walters and the Taxpayers’ Union after crude comments about women on online radio station The Platform, which Peters labelled “not acceptable” but noted Nash had apologised.

Business leaders remain relatively lukewarm on the performance of the other minor party leaders, with ratings largely slipping from last year.

An independent director notes that minor parties are “generally distracting and negative and do not have the nation’s long-term interests in mind”, while an energy CEO says they “disproportionately impact core policy frameworks for a prosperous and fair society”.

An industry body executive notes that since the 2023 election, too many of the smaller party leaders have done more to divide us than unite us. “In 2025, New Zealand needs leaders who can rise above partisan point-scoring and build the kind of consensus that strengthens, rather than fractures, our society.”

Act leader David Seymour is rated 3.13/5, down from 3.40/5 last year.

His promotion to Deputy Prime Minister is a visible marker of Act’s leverage in the coalition.

The party advanced a strong free-market agenda, establishing a Ministry of Regulation to cut back excessive legislation, driving tougher policies on youth offending and gangs, and advocating for longer parliamentary terms to deliver more stable governance.

Beyond Parliament, Act is extending its reach into local government through Act Local, a slate of candidates campaigning on lower rates, core services and a back-to-basics approach in the upcoming local elections.

Business leaders acknowledge Seymour’s work ethic, with one recruiter noting: “Like him or not, he is the hardest worker in Parliament,” says a recruiter.

Others are more critical: “Seymour shouldn’t have weaponised Māori for politics. “It has hurt Act, making it seem extreme, and damaged Seymour’s reputation,” says an independent director.

The Greens’ co-leaders have suffered sharp drops in their ratings. Chlöe Swarbrick has fallen to 1.72/5 from 2.48/5 in 2024, while Marama Davidson is rated just 1.45/5, down from 1.82/5.

The party has endured a bruising run of scandals and turmoil since the election: Golriz Ghahraman’s resignation over shoplifting allegations, the sudden death of new MP Efeso Collins, Darleen Tana’s expulsion after allegations of migrant exploitation, Davidson stepping back for a period after a breast cancer diagnosis, and Julie Anne Genter being censured after an angry outburst in Parliament.

Swarbrick has sought to reset the agenda with the Greens’ alternative Budget, proposing ambitious spending funded by new taxes and debt. But critics say gaps in the detail risk undermining credibility and alienating potential partners.

Most recently, Benjamin Doyle, who replaced Tana, announced their resignation after months of online harassment.

A real estate CEO laments: “Sadly Swarbrick has gone backwards, and the Greens aren’t the party they used to be.”

Te Pāti Māori’s co-leaders have lost further ground with business, rating just 1.36/5 for Debbie Ngarewa-Packer and 1.39/5 for Rawiri Waititi, down from 1.69/5 last year.

The party celebrated a major win with Oriini Kaipara’s decisive Tāmaki Makaurau by-election victory over Labour’s Peeni Henare earlier this month.

But that momentum has been overshadowed by controversy.

Waititi, Ngarewa-Packer and Hana-Rawhiti Maipi-Clarke received record parliamentary suspensions for refusing to apologise after performing a haka during the Treaty Principles Bill debate — a move deemed “intimidating” by the Privileges Committee.

Internal strains have also emerged. Mariameno Kapa-Kingi was abruptly removed as party whip, while Tākuta Ferris drew cross-party condemnation for comments about non-Māori campaigning for the Labour Party in the by-election.

While the co-leaders are standing their ground, CEOs remain sceptical.

“Debbie and Rawiri — divisive and disrespectful,” says an engineering boss.

New Zealand ASEAN Forum (ASEAN New Zealand Business Council)

New Zealand ASEAN Forum (ASEAN New Zealand Business Council)

What took New Zealand and ASEAN a year in 1975 now happens in just three days: $220m in two-way trade. This week’s ASEAN Forum celebrated 50 years of ASEAN–New Zealand relations, with a bold new goal to double trade to $50 billion.

Minister for Trade and Investment Todd McClay highlighted why this relationship matters, pointing to the complementary strengths of ASEAN and New Zealand across food, manufacturing, education, and tech. Chair of the ASEAN Business Advisory Council for Malaysia, Tan Sri Nazir Razak, framed it in global terms – a “time of monsters” as the old order shifts, where ASEAN must integrate, diversify, and push ahead on digital and trade agreements.
The business panels brought the lessons to life.

Gavin M. Faull (Swiss-Belhotel International) reflected on his five decades of work in the region, saying trust is the most critical currency, alongside cultural understanding and win-win partnerships. Michelle Noordermeer (CarbonClick) echoed this, stressing the importance of being present in-market to build credibility and navigate hierarchies.

Singaporean entrepreneur Jerel Kwek founded Addiction Pet Foods, a New Zealand manufacturer of pet food that exports to the world. He urged Kiwi firms to treat ASEAN not just as a market but as a partner, to move up the value chain, embrace innovation and use technology like AI to overcome complexity and drive growth.

It was great to MC such a fantastic event. Congratulations to the ASEAN New Zealand Business Council for making it happen.

ICBC NZ CEO Bin Liu sees exciting opportunities to finance New Zealand’s infrastructure transformation, writes Tim McCready

ICBC NZ CEO Bin Liu sees exciting opportunities to finance New Zealand’s infrastructure transformation, writes Tim McCready

New Zealand is entering a critical new phase of infrastructure development. Decades of underinvestment, rapid urban growth, and the increasing impacts of climate change have converged to create both a challenge and an opportunity.

ICBC New Zealand, a subsidiary of the world’s largest bank by total assets and capital, sees compelling potential for Chinese capital to support this transformation. With more than 11 years of local operations, the bank draws on global experience and deep funding capability to deliver tailored, ESG-aligned financing solutions for New Zealand.

Speaking at the recent China Business Summit in Auckland, Bin Liu, CEO of ICBC New Zealand reflected on the state of the market.

“I have three key takeaways from the past year,” he said. “First, we are finally seeing more infrastructure projects moving — and at a bigger scale than before.

Agribusiness and Trade: New Zealand launches grass-fed standard

Agribusiness and Trade: New Zealand launches grass-fed standard

  • Official standard will increase demand for our products and enhance the credibility of our quality products.
  • Producers who meet the standard can be assessed and choose to display a licensed FernMark Grass-Fed logo.
  • The standard will be reviewed after one year, and then at least every three years.

New Zealand red meat and dairy producers can now be certified as producing grass-fed meat and dairy under a new standard introduced by the Ministry for Primary Industries (MPI) and launched at Fieldays.

The New Zealand Grass-Fed Administrative Standard provides a formal, Government-recognised definition of what constitutes grass-fed production. Producers who meet the standard can be assessed and choose to display a licensed FernMark Grass-Fed logo, issued by the government agency New Zealand Story.

“Industry has informed the Government that there are customer requests for Government backing of this important attribute in key markets,” says Jenny Cameron, Chief Transformation Officer at the Ministry for Primary Industries.

“By facilitating and coordinating a standard across the pastoral sector, we are able to demonstrate and prove our grass-fed credentials, which will help to maintain or increase demand for our products and enhance the credibility of our quality products.”

Cameron notes that there is significant and growing demand from consumers around the world to know how their food is produced, and to have traceability in the supply chain for products they buy.

“New Zealand can provide that,” she says. “We are proud of the way we farm in New Zealand with high biosecurity, sanitary, animal welfare and sustainable practices. We want to ensure these attributes are recognised and understood by the world.”

New Zealand’s temperate climate, with plentiful rainfall and sunshine, means our dairy and red meat sectors are largely pasture-based.

“This is a key point of difference for New Zealand’s dairy and red meat production, as animals on most other countries’ red meat and dairy farms spend much of the year indoors or eating grain-based diets,” says Cameron. The standard applies separately to red meat and dairy, and is designed to strengthen international market access and validate New Zealand’s long-standing pasture-based farming systems.

For dairy, the standard requires that animals spend at least 340 days per year, for at least eight hours per day, on pasture or forage crops, and have a diet comprised of at least 90% qualifying grass-fed feed.

For red meat, animals must be predominantly fed grass-fed feed types and be permitted to graze outdoors on pasture or forage crops year-round. Feedlots are not allowed, and animals must be removed from pasture or forage crops only for animal management purposes or to safeguard them or the environment from adverse events.

The new standard is voluntary, and there is no requirement for red meat or dairy producers to use it, but MPI says it expects it to become a valuable tool for differentiation.

“We anticipate that China is a market this will be particularly relevant for, but we also know other markets have customers and consumers that make choices based on grass-fed or grain-fed for their own or family consumption, as well as for pets,” says Cameron.

“Only about 10% of the world’s dairy is grazed on pasture, and New Zealand has the greatest time outdoors of any country.”

An independent review commissioned by MPI compared the New Zealand standard to similar international frameworks in Ireland, the United Kingdom, Canada and the United States. It found New Zealand’s requirement for 340 grazing days for dairy is higher than that of other standards.

The development of the standard has involved wide industry consultation. Cameron says dairy and red meat companies have been a part of the development of the voluntary standard, and have been strong proponents for it.

“Since the launch at Fieldays, we have received positive feedback from farmers and industry as a whole,” she says. “As of 27 June, we have had three grass-fed schemes listed as meeting the standard: Fonterra, Spring Sheep, and Westland Milk Products.”

The standard will be reviewed after one year, and then at least every three years, to ensure it remains fit for purpose as environmental and market conditions evolve.