New Zealand has successfully finalised a new trade agreement with the UAE, a development expected to significantly enhance halal meat exports and increase the red meat industry. Celebrated as New Zealand’s fastest-ever trade deal, this agreement will eliminate tariffs on frozen beef and sheepmeat immediately upon its commencement.
Chilled products, such as processed meat products, chilled offal, specialty cuts, and chilled lamb, were already exempt from tariffs under previous arrangements. It’s a win-win for Kiwi farmers, meat producers, and various organisations within the export and trading industry.
This agreement builds upon the existing trade relationships between New Zealand and the UAE. Over the years, both countries have engaged in constructive discussions aimed at strengthening trade cooperation, highlighting their ongoing commitment to mutual economic growth.
The UAE stands as New Zealand’s 21st largest trading partner, with red meat exports valued at $47 million for 2023 and 2024. This deal is poised to expand New Zealand’s presence in the Middle East, where demand for halal-certified products is substantial.
Consumers in the UAE are increasingly seeking high-quality, sustainably sourced food, reflecting broader global trends, according to the Dubai Chamber of Commerce around 90 per cent of the UAE’s residents adhering to Islamic dietary laws, there is a strong demand for halal food, including halal meat, reinforcing the UAE’s commitment to providing halal options in the market.
Mutton is the most popular type of red meat in the UAE, with lamb being a preferred choice for many consumers. The mutton market is anticipated to grow at a compound annual growth rate (CAGR) of 3.19% from 2023 to 2029, reflecting a strong preference for these meats within the population.
Although beef ranks as the second most consumed red meat in the UAE, the overall red meat market is expected to expand significantly, with projections indicating it could reach around $860 million by 2029. Popular Arabic dishes that utilise red meat include Al Machboos, Tharid, Harees, and Thereed, among others.
The removal of tariffs on frozen meat products enhances New Zealand’s price competitiveness, making exports more appealing. It also opens access to a growing market, enabling exporters to meet the rising demand for halal-certified goods in the UAE. The agreement strengthens trade relations, paving the way for future partnerships and collaborations.
Kiwi business leaders can also anticipate increased export opportunities, not just in meat but in dairy, New Zealand wines, and specialty foods. Finally, it highlights a commitment to sustainable practices, aligning New Zealand’s reputation for environmentally friendly farming with the UAE’s priorities for food security and sustainability.
Nathan Guy, Chairman of New Zealand’s Meat Industry Association, expressed optimism about the new agreement: “The UAE’s appetite for high-quality meat presents a wonderful opportunity for us to grow our exports and enhance our reputation in this key market.” Similarly, Kate Acland, Chair of Beef + Lamb New Zealand, noted, “This deal is vital for our farmers, especially during these financially challenging times, as it opens new avenues for growth.”
The trade agreement is projected to have a significant impact on the New Zealand economy. Organisations such as New Zealand Ministry for Primary Industries or the NZ Meat Industry Association estimate that the removal of tariffs could lead to an increase in halal meat export revenues by up to 15% in the coming years, contributing meaningfully to the agricultural sector. While halal-certified meat already making up 37% of New Zealand’s total red meat exports valued at approximately $3 billion annually the potential for growth in this market is encouraging.
New Zealand’s halal meat exports do face competition from several countries that have established strong positions in the UAE market. For instance, Australia and Brazil are already prominent suppliers of halal meat, owing to their long-standing trade relationships and competitive pricing. However, New Zealand sets itself apart through its commitment to sustainable farming practices and high-quality products. Kiwi farmers are well-regarded for their environmentally friendly, pasture-raised meat, which aligns perfectly with the increasing consumer demand for ethically sourced food.
New Zealand’s meat industry is noted for its sustainable practices, including pasture-based farming and high animal welfare standards. Research conducted by AgResearch shows that New Zealand’s sheep and beef farmers rank among the world’s most efficient, demonstrating a strong commitment to sustainable practices that promote environmental stewardship.
The perfect timing of the new trade amplifies the New Zealand government aspires to position its agricultural sector as “the world’s most sustainable provider” of high-value food products. It has set targets to reduce emissions in the sector by 10% by 2030 while simultaneously increasing exports.
These practices resonate with the UAE’s focus on food security and environmental sustainability. The New Zealand Ministry for Primary Industries reports that over 90% of the country’s farms are certified as environmentally sustainable, which can be a valuable selling point in the UAE market.
While this trade agreement presents numerous opportunities, it is wise to acknowledge potential risks. Geopolitical tensions in the Middle East region could impact trade stability. On top of that, fluctuations in market demand and logistical challenges, such as transportation costs and supply chain disruptions, may pose hurdles for exporters.
However, Kiwi business leaders can successfully overcome these new trade challenges by conducting thorough market research, building strong relationships with UAE-based organisations or exporters, focusing on quality control, and ensuring products are top-notch.
It’s not the first time that Aotearoa and the UAE have successfully partnered to improve trading between their two countries; they have collaborated over dairy, business and investment opportunities, horticulture, and tourism. This recent trade agreement will undoubtedly assist both countries, especially Kiwi business leaders looking for expansion and growth.
The recent free trade agreement (FTA) between New Zealand and the UAE presents a tremendous opportunity for Kiwi business leaders in sectors like retail, hospitality, food and beverage, farming, and exports. By removing tariffs on key products, this agreement boosts price competitiveness and opens access to a rapidly expanding market for high-quality halal-certified goods. It strengthens trade relations and highlights New Zealand’s dedication to sustainability, aligning with global consumer preferences.
While there are risks, the advantages of this agreement far outweigh them. It enables businesses to broaden their reach in the UAE, and with strategic planning focused on quality and sustainability, Kiwi business leaders can excel in a competitive landscape. This is a prime moment for New Zealand enterprises to significantly enhance their presence in the UAE and across other Middle Eastern countries that are eager for halal-certified products.
