44666 (2024). Rachel Boyack to the Associate Minister of Agriculture
Written Question
Published date: 08 Aug 2024
44666 (2024). Rachel Boyack to the Associate Minister of Agriculture: What advice, if any, has he received that suggests that exporting live animals to other countries will generate more export revenue than processing those animals in New Zealand, thereby adding value domestically?
Hon Andrew Hoggard: Only export of breeding animals is within scope of the livestock exports review, not for slaughter and processing.
I have been advised that the export value of live cattle per head fluctuates as it is dependent on supply and demand. Animals exported have historically fetched premium prices compared to the domestic market. For example, in 2020 industry indicated that the value of a well-bred dairy crossbred heifer for export was around $1,500, compared with $650 for a heifer that did not meet export specifications. Their estimate of indirect economic benefits (that is, economic benefits beyond what farmers receive) is around $1.5 million per shipment of 3,000 animals.
I have requested officials at the Ministry for Primary Industries to provide a detailed cost benefit analysis on the direct and indirect benefits of exporting livestock by sea to support the Government’s decision-making process.