EU deal a boost for NZ beef

New Zealand's European Union beef quota has been more than quadrupled to 1300 tonnes a year.

Beef producers suffered when the EU was enlarged from 15 to 25 countries in May last year without a corresponding quota increase to account for previous trade with the new members.

Agriculture Minister Jim Sutton said the increased quota compensated New Zealand in particular for valuable markets lost in Malta and Cyprus.

About 1000 tonnes of top-grade beef, worth up to $15 million a year, was traditionally sold to Cyprus and Malta before they joined the EU.

The increase for beef complements gains negotiated last month for New Zealand exports of sheepmeat (another 1154 tonnes) and butter (another 735 tonnes).

Sutton said the deal completed New Zealand's trade compensation negotiations resulting from the EU expansion.

Meat and Wool New Zealand chairman Jeff Grant said: "The increased access appropriately recognises New Zealand's historic beef trade with the new EU members and ensures that New Zealand exporters are not in a less favourable position than they were prior to the EU's enlargement."

Meat and Wool said it expected the higher sheepmeat and beef quota to be implemented by January 1.

Imports above quota levels are subjected to higher tariff rates.