NZ can’t replace Australia as RP source of dairy products

Visiting New Zealand Trade and Agriculture Minister Jim Sutton said yesterday that the Philippines cannot rely on New Zealand as an alternative supplier of dairy products in case of a full blown dairy dispute with Australia.

Sutton said Australia and New Zealand have integrated their marketing and distribution of dairy products under a joint venture.

While New Zealand would be interested to increase its export of dairy products, Sutton said his country, like Australia, is also experiencing a cut in dairy production.

The Philippines is looking for alternative sources of dairy products, following Australia’s continued refusal to allow more fruit imports from the Philippines.

Australia has been resorting to stringent phytosanitary standards to bloc the entry of Philippine pineapples and bananas to its market.

The Philippines has even threatened to withdraw from the Australian-led Cairns Group following Australia’s move against Philippine fruit exports.

Sutton, however, said the Philippines should continue to work with other developing and agriculture-based countries under the Cairns and World Trade Organization to fight countries which still refuse to open up their markets to agricultural products.

Sutton also proposed a possible joint venture between New Zealand and the Philippines to market and distribute their tropical and temperate fruits together, rather than separately, to successfully penetrate foreign markets.