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FT-feb2017 digi-1 15 COMING Up TRUMPS How will the Trump administration affect Kiwi food manufacturers? Professors Steve Flint and Richard Archer from the School of Food and Nutrition at Massey University tackle that question. We are about to enter a new era with a new US president taking control of the world’s most politically and economically influential country. There has been much debate about the influence of the Trump administration on the world. Sitting here in Singapore for a month or so, we are hearing the influence President Donald J Trump may have over the Asian economy. Asia recognises it has been a major beneficiary of globalisation over the past couple of decades and fears a return to protectionism.As New Zealand also relies so much on international trade, in particular for our food industry, we too need to be prepared for a changing environment. We have always had challenges competing in foreign markets, and these markets are so vital to the success of our industry and the New Zealand economy as a whole. The best historical example was the trade of New Zealand dairy products with the UK once Britain became a member of the EEC. We managed our way successfully through this transition from the UK being a major customer for New Zealand dairy products by successfully seeking new markets, in particular in Asia. China now represents our main international customer for dairy products and perhaps we have, once again, become overly dependent on a single market wont to make changes at the stroke of a Government pen. New Zealand has significant direct trade with the US and several of our industries (such as wine and honey) see the US as scope for future development. Will that be affected by a Trump Presidency? Trade with the US has always been difficult for New Zealand with limits and trade barriers, in particular on commodity products entering the US. Sheep meats and dairy have both struggled but wine and honey have prospered recently. The US is still a significant trading partner for New Zealand, representing $10 billion worth of goods and services trade in 2012. US goods imported from New Zealand totalled $3.5 billion in 2013, up 1.4% ($47 million) from 2012, and up 45% from 2003. The five largest import categories in 2013 were meat (frozen beef - $984 million), albumins, modified starch and glue (mostly caseins - $323 million), beverages (wine - $296 million) and eggs, honey and dairy (especially milk protein concentrate - $282 million). US exports of agricultural products to New Zealand totalled $395 million in 2013. Leading categories included dairy products ($119 million),

FT-feb2017 digi-1
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