For a culture that places so much value in relationships, it was disheartening for Chinese businesses to discover through mainstream media the bombshell dropped by the New Zealand government earlier this year. There was no consultation before the decision was made and they are hanging onto hope that the Government will reconsider their position and work with the stakeholders to come to an agreement for the trade going forward.
“It’s a big loss to the agricultural sectors of both countries,” says Dr Changliang Yan from the China Animal Husbandry Group (CAHG).
“The livestock exporting trade is more than business, Chinese buyers like to go to New Zealand to see where the livestock come from and learn about the culture and farming.
“They like to learn from New Zealand on how to run dairy businesses, it’s a prime leadership opportunity for New Zealand to support Chinese farmers.”
But without the trade, the buyers will have less opportunities to come to New Zealand and there will be less communication between the livestock industries of the two countries.
Between January and September, China imported over 90,000 head of cattle from NZ, which makes up 33% of their cattle imports. Without the trade with NZ China will have 33% less choice in which cattle they purchase.
“Selling livestock, particularly cattle, to China helps New Zealand speed up progress in genetic gain, which is a good thing in the long run,” he says.
They like the genetics and production ability of NZ livestock and the proximity to China. There is also a longstanding relationship between the countries and Chinese businesses appreciate the tax benefits because there are no tariffs due to the free trade agreement.
With one less avenue to import livestock, there will be heavy impacts on the trade for China, including the price and quantity of stock and produce available because supplies will be tighter.
CAHG general manager for livestock and genetics Fenglong Zhao would like to see more government officials visit China to see the investments they have made to improve animal welfare.
“The reality is a lot has changed and we have improved significantly; there has been a lot of investment in animal welfare in China,” Zhao says.
“And from our side, we have confidence in the exporters we use to source the livestock we import and they alleviate any concerns we have about the voyage, but we do acknowledge the weather can be challenging.”
Zhao and Yan would like to see communication between the Governments from both countries around the subject before the ban becomes permanent, they hope the trade will be given a chance.
CAHG was the earliest company to import cattle into China, they have been importing since 1981 and are disappointed to lose the connection with NZ.
“There is a huge demand for dairy in China, and we have well-equipped facilities,” Zhao says.
“Nowhere else in the world has imposed a ban like this, it raises many concerns for businesses like ours.”
Another business with interests in NZ livestock is Beijing Sinofarm Import & Export Co Ltd. Their general manager for breeding livestock importation Haiying Kang is disappointed by the announcement of the ban.
“China has put a lot of effort into improving facilities and supporting animal welfare,” Kang says.
“From the quarantine facilities with quality feed, good shed design and sufficient training for staff, to the management on farms, where the cows are kept comfortable and live in a good environment.”
She describes their housing as a feedlot environment, with cattle living indoors in scientifically designed sheds with temperature control. They all have a bed and there is plenty of space to move around.
“We spend lots of money on our sheds, they are state of the art facilities,” she says.
Kang believes there are plenty of options to mitigate concerns around animal welfare on both sides of the ocean and she encourages choosing who manages the export process wisely.
“We deal with Austrex and they are very professional and manage the entire process well,” she says.
And if further requirements are developed to support the trade and provide transparency and assurance she believes it should continue.
“I’d like to hope our governments can keep communication open and come to an agreement that protects the animals and the trade into the future,” she says.
