The UK-NZ Free Trade Agreement presents a great opportunity for Fonterra

The recently established UK-NZ Free Trade Agreement has sparked significant enthusiasm in both countries and is being viewed as an exceptional opportunity for New Zealand dairy farmers, according to Mark Casey, Trade Strategy Manager for Fonterra’s Europe, Middle East, and Africa regions. 

As per Casey's statement during an interview with The Country Sport Breakfast's Brian Kelly, the agreement will gradually eliminate all UK tariffs on New Zealand dairy products over the next five years. 

This development allows the New Zealand dairy industry to forge closer ties with the UK and explore fresh avenues for growth across various dairy products, including grass-fed butter and cheese. 

Casey also highlighted the excitement among UK consumers, emphasizing their significant demand for dairy products and their affinity for the "Kiwi brand" with its nostalgic appeal and perceived quality. 

The market's interest in sustainability and animal welfare further adds to the potential for Fonterra's grass-fed farming practices to thrive in this space. Fonterra wasted no time in leveraging the trade deal, with products already en route to the UK. Casey acknowledged the challenges of entering a new market but expressed confidence in building relationships and winning over UK consumers with Fonterra's unique offerings. 

While the transport distance between New Zealand and the UK poses some obstacles, Fonterra aims to educate customers about the minimal carbon footprint of their operations and emphasize the environmental benefits achieved behind the farm gate. Despite expected competition, Fonterra sees the UK market as an excellent opportunity to showcase their exceptional products and make a mark in the dairy industry.