Kimberly Crewther, CEO for Dairy Companies Association of NZ (DCANZ), said it was good to see the commitment from both sides to a comprehensive agreement, the first bilateral negotiations since 2016.

Those negotiations foundered on agreement over NZ dairy’s access to the world’s largest dairy production market, which has been a sticking point since.

Crewther acknowledged dairy’s significance to both countries.

“But it is good to see that the negotiating table is the place to discuss this.”
In the absence of a free trade agreement with India, Fonterra has adopted a softly-softly approach to the market. India is expected to face a domestic production shortfall in seven to 10 years.

“And at that point we would like to be at the front of the queue,” said Crewther.

She pointed to continuing economic growth, an emerging middle class and shifts in diets as people consume a broader range of dairy-based products.

Estimates are the middle class of 350 million will double by 2030.

“That emerging middle class are looking at healthier living, being more active and focused on wellbeing and medical nutrition.

“We have a broad range of ingredients that we can supply including specialised protein ingredients, across a broad range of products,” said Crewther.

Those products include whey powder concentrates. These are not produced in India because they are a by-product of hard cheese production, which is not common there.

The product has application as an ingredient to replace eggs, and fits well with a high level of vegetarianism in India.

At present tariffs of 30-60% remain in place for most dairy products. Fonterra exited its local joint venture Dreamery product range in early 2022, with no plans  for similar projects in the immediate future.

Crewther said flexibility in any agreement was possible and “very much for the negotiating table” where they may get down to specific products.

“It is not often you have an agreement that is a blanket one for everything.”

Crewther also acknowledged the value in sharing IP between the two countries’ dairy sectors, and how NZ played a big role in helping early Indian dairy co-operatives become established.

Dr Veghese Kurien, founder of India’s first dairy co-operative, Amul, undertook his dairy industry training on a senior fellowship to New Zealand. He had the vision of one day exporting Indian dairy products to NZ, something that became a reality in 2009.

“There is also an opportunity there for greater exchange between the countries’ industry in a range of areas including the agritech sector,” said Crewther.

Meanwhile, the red meat sector has also welcomed the formal launch of FTA negotiations with India.

Nathan Guy, the independent chair of the Meat Industry Association (MIA), is part of Luxon’s business delegation, alongside representatives from three red meat companies.

“Like many developing countries around the world, India has experienced significant economic growth over recent decades and has a growing middle class with a focus on health and wellness, who are seeking high quality and nutritious animal protein options.”

Guy said India offers real opportunities for NZ, which has a reputation as a trusted, reliable and responsible trading partner

“As well as sheepmeat products, the wide range of by-products known as the fifth quarter provide significant opportunities for NZ, with offal exports boosted through the rise of the petfood industry and the strengthening demand for serum exports.

“India plays a key role in the pharmaceutical industry, manufacturing and exporting products such as vaccines to other countries.

“NZ’s fifth-quarter products are sought after because of our disease-free status,” he said.

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