Chinese ban hits NZ meat exports

By FRAN O'SULLIVAN, assistant editor

New Zealand's $130 million meat trade with China is in jeopardy after Beijing's abrupt refusal to issue any new import permits.

The move follows publicity in China over a Chinese importing operation that relabelled inferior meat with false places of origin.

A senior New Zealand official said: "They have stopped issuing permits and when they resume they will issue only to [New Zealand] plants that have been individually certified in the past."

The Chinese move was kept quiet so as not to spoil last week's high-profile signing ceremony of a trade and economic framework between New Zealand and China - the first step towards a free-trade deal.

New Zealand officials are working with industry representatives to try to find a solution to the problem before the new meat export season begins in November or December.

New Zealand was granted an exemption from individual plant certifications while China reorganised its import approvals procedure.

But Chinese inspectors who recently came to New Zealand to examine its methods failed nearly half the plants they sampled - including companies which were not exporters to China.

"They said your system's no bloody good because five out of nine don't measure up," said the official.

When the exemption expired a week ago, Beijing decided it would not rely on the New Zealand Food and Safety Authority's word. Instead, it insisted on individually inspecting any plant exporting meat to China.

"The problem is to get them to accept a systems-based approach or get them back down here and ticking off plants as fast as we can - or both," said the official.

Trade Negotiations Minister Jim Sutton raised the matter directly in a private meeting with visiting Chinese Commerce Minister Bo Xilai.

"I asked for his good offices in helping our people and his people to try to work through it and get it sorted," Mr Sutton said.

Mr Sutton said the authority had been trying to get China to recognise New Zealand's quality assurance system "so it will accept our judgment that meat put on a boat is fit for their consumption.

"I'm aware they want to inspect every plant and all they have done so far is inspect a sample - some of which were chosen by them that we felt were inappropriate choices in that they were not looking to export to China and then did not pass their inspection."

Mr Sutton said officials in China had previously given approvals for meat at the port of entry but that was no longer acceptable to Beijing.

"I'm not saying our industry has cut corners but we've been dealing with importers and some of them have had perhaps not the best of standing at times."

The move has rocked the meat industry, which has urged the Government to make China a "priority A country" in its free-trade negotiations.

Meat Industry Association chief executive Caryll Shailer said it was understood that no new permits were being issued to any countries exporting to China.

Meat New Zealand chairman Jeff Grant believes the industry will get through the impasse, "but it is very frustrating".

"They came and visited a while ago, had a discussion on the process and dilly-dallied. Now they seem to have pulled the pin on the lot."

Mr Grant said that although the new export season would not start until November or December, the China decision "would have an effect currently".

New Zealand's meat exports to China were worth about $130 million last year and are predicted to be significantly lifted by a free-trade deal.

Mr Bo told the Herald that China would have to assess the total amount of meat New Zealand could export under a free-trade deal.