New Zealand Exporters Redirect Focus Away from Slowing China Market
New Zealand exporters are redirecting products meant for China to other markets due to cooling demand from their largest trading partner. According to Karen Silk, assistant governor at the Reserve Bank of New Zealand, exporters are actively seeking new markets beyond China.
The country's largest trading partner has seen its economic growth slow to multi-year lows in the second quarter, affected by weak domestic demand and a prolonged real estate slump.
New Zealand supplies over half of China's dairy imports, thanks to a bilateral trade agreement that granted duty-free access for all New Zealand dairy products in 2024. However, Silk notes that elevated commodity prices have given New Zealand's pasture-based farmers a relative cost advantage even as China-bound volumes soften.