1 00:00:00,040 --> 00:00:02,160 Speaker 1: A deal got done in record time, latest free trade 2 00:00:02,200 --> 00:00:05,280 Speaker 1: deal this is sort of with the UA signed off yesterday. 3 00:00:05,280 --> 00:00:08,840 Speaker 1: For the red meat industry, it's our twenty first largest market, 4 00:00:08,880 --> 00:00:10,600 Speaker 1: forty seven million dollars worth of meat, so it's not 5 00:00:10,640 --> 00:00:12,719 Speaker 1: really big. So what about the potential? The Meat Industry 6 00:00:12,720 --> 00:00:16,080 Speaker 1: Association Independent Chair Nathan Guy with us Nathan morning to you, 7 00:00:16,880 --> 00:00:19,599 Speaker 1: yea morning mate, This looks like a good quality deal. 8 00:00:19,600 --> 00:00:21,720 Speaker 1: I mean everyone wants to do business. Can we do 9 00:00:21,800 --> 00:00:24,040 Speaker 1: more business? And how much more with them? 10 00:00:24,480 --> 00:00:27,280 Speaker 2: Oh? For sure? The significant upside. First of all, I 11 00:00:27,320 --> 00:00:30,840 Speaker 2: just want to congratulate the Minister of Trade Bott McClay 12 00:00:30,920 --> 00:00:32,960 Speaker 2: for great work he's done in record time and of 13 00:00:33,000 --> 00:00:35,400 Speaker 2: course as official so he's opened the door, he's built 14 00:00:35,440 --> 00:00:38,760 Speaker 2: the connections, he already had them as a former trade minister. 15 00:00:38,880 --> 00:00:42,360 Speaker 2: This is a real pay of celebration for our red 16 00:00:42,360 --> 00:00:45,839 Speaker 2: meat sector up against a lot of headwinds and it's 17 00:00:45,880 --> 00:00:48,400 Speaker 2: a real spring on the step for our meat companies 18 00:00:48,600 --> 00:00:51,760 Speaker 2: and also for our farmers. So the upside is significant. 19 00:00:51,960 --> 00:00:54,040 Speaker 1: So it's a twofold thing. One can we sell more 20 00:00:54,040 --> 00:00:57,480 Speaker 1: to the UAE and does the trade deal itself expand 21 00:00:57,520 --> 00:00:59,480 Speaker 1: out to the other emirates in the region. Generally in 22 00:00:59,520 --> 00:01:00,360 Speaker 1: their form all for. 23 00:01:00,360 --> 00:01:03,800 Speaker 2: Us, Yes, it will, and I know that the Minister 24 00:01:03,880 --> 00:01:06,560 Speaker 2: is working hard in the Golf States with those countries 25 00:01:06,600 --> 00:01:08,560 Speaker 2: as well. And of course when I was back in 26 00:01:08,600 --> 00:01:11,479 Speaker 2: the hot seat and Wellington, we were working hard there 27 00:01:11,520 --> 00:01:14,360 Speaker 2: and it's been stalled, but he certainly warmed that relationship 28 00:01:14,440 --> 00:01:17,800 Speaker 2: up again, which is fantastic. We know that UAE is 29 00:01:17,840 --> 00:01:21,880 Speaker 2: a very oil rich economy. Mic it's a massive financial center. 30 00:01:22,520 --> 00:01:25,680 Speaker 2: It's also a hub for global air and sea logistics, 31 00:01:25,800 --> 00:01:28,880 Speaker 2: so the connections to other countries is huge. This is 32 00:01:28,920 --> 00:01:31,280 Speaker 2: a fantastic agreement. We're very proud. 33 00:01:31,520 --> 00:01:34,039 Speaker 1: How much growth do you see in red meat or 34 00:01:34,080 --> 00:01:36,400 Speaker 1: we just don't know at this point because forty seven 35 00:01:36,440 --> 00:01:39,760 Speaker 1: million dollars isn't a lot, No, it isn't. 36 00:01:39,959 --> 00:01:42,560 Speaker 2: And if we just step back a bit and look 37 00:01:42,560 --> 00:01:45,160 Speaker 2: at what the savings are just on that with a 38 00:01:45,240 --> 00:01:49,240 Speaker 2: five percent removal on tariff for frozen beef and sheep meat, 39 00:01:49,400 --> 00:01:52,080 Speaker 2: that's about seven hundred and fifty thousand just at the 40 00:01:52,120 --> 00:01:55,240 Speaker 2: moment from a standing start. So what this will mean 41 00:01:55,360 --> 00:01:57,960 Speaker 2: is significant upside. I can't give you a number because 42 00:01:58,000 --> 00:02:04,240 Speaker 2: I'm not the meat company chief executive, but it is significant. 43 00:02:04,840 --> 00:02:08,280 Speaker 2: The feedback that I've had from the companies yesterday and overnight. 44 00:02:08,280 --> 00:02:10,560 Speaker 2: They're very excited by the agreement. 45 00:02:10,880 --> 00:02:13,280 Speaker 1: Fantastic and it's good to see generally in a world 46 00:02:13,320 --> 00:02:17,520 Speaker 1: that you would argue increasingly sadly is not particularly free trade, 47 00:02:17,840 --> 00:02:20,200 Speaker 1: there's still some business to be done by like minded 48 00:02:20,280 --> 00:02:21,440 Speaker 1: nations who are free trade. 49 00:02:22,639 --> 00:02:25,480 Speaker 2: Yes, that's right. And the other significant thing about this agreement, 50 00:02:25,560 --> 00:02:28,720 Speaker 2: Mike is at seventy five percent of the local population 51 00:02:28,760 --> 00:02:31,640 Speaker 2: out there Muslim, and we do really well with our 52 00:02:31,800 --> 00:02:35,920 Speaker 2: all our requirements and certification, so we see this as 53 00:02:36,160 --> 00:02:42,360 Speaker 2: also a significant move. We know that allow markets return 54 00:02:42,440 --> 00:02:46,440 Speaker 2: to US about three billion dollars currently in a twelve 55 00:02:46,440 --> 00:02:49,440 Speaker 2: month period, so that's also a big moving part of 56 00:02:49,480 --> 00:02:50,960 Speaker 2: this agreement as well. 57 00:02:51,160 --> 00:02:53,320 Speaker 1: The Smithfield thing today and tim Row, I don't know 58 00:02:53,320 --> 00:02:56,519 Speaker 1: how much you know about it, but it's somewhat ironic, 59 00:02:56,600 --> 00:02:58,959 Speaker 1: isn't it. As we look to grow red meat, there's 60 00:02:59,000 --> 00:03:01,920 Speaker 1: a facility there that clearly in some trouble. What's the 61 00:03:01,960 --> 00:03:04,960 Speaker 1: state of red meat in this country right here right now? 62 00:03:06,120 --> 00:03:10,040 Speaker 2: Well, companies have been through a lot of change and 63 00:03:10,160 --> 00:03:16,359 Speaker 2: will continue to go through change. Mic Whatever Alliance decide 64 00:03:16,400 --> 00:03:21,639 Speaker 2: to announce today is really their commercial decision and if 65 00:03:21,639 --> 00:03:27,639 Speaker 2: there are job losses, that's most unfortunate. But meat companies diversify, 66 00:03:27,880 --> 00:03:32,000 Speaker 2: they change, they review stop numbers, they look at their plants, 67 00:03:32,320 --> 00:03:37,840 Speaker 2: age and stage, how efficient they are, consent issues, you know, 68 00:03:38,000 --> 00:03:42,520 Speaker 2: the local supply. So all of these things impact. And 69 00:03:43,240 --> 00:03:45,560 Speaker 2: what I would like to tell you and listeners is 70 00:03:45,600 --> 00:03:49,520 Speaker 2: that meat companies are extremely agile and they make changes 71 00:03:49,560 --> 00:03:52,880 Speaker 2: as they see fit. And this really is just an 72 00:03:52,920 --> 00:03:55,960 Speaker 2: a billet or just a decision of getting on and 73 00:03:56,000 --> 00:03:59,520 Speaker 2: making I guess the right decision for this company in 74 00:03:59,560 --> 00:04:02,680 Speaker 2: the future. And we'll wait and see what happens today. 75 00:04:02,880 --> 00:04:05,120 Speaker 1: We wish them well for the day, obviously, Nathan appreciate it. 76 00:04:05,200 --> 00:04:08,680 Speaker 1: Nathan Guy, Meat Industry Association, Independent Years. For more from 77 00:04:08,680 --> 00:04:11,800 Speaker 1: the Mic Asking Breakfast, listen live to news talks. 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