NZ-Iran deal good news for exports

By PHILIPPA STEVENSON agricultural editor

Agriculture officials have signed a breakthrough agreement with Iran which is likely to boost New Zealand exports.

MAF executive Tony Zohrab said tension between Western and Islamic countries following terrorism in the US and America's retaliation did not appear to have affected the trade relationship between New Zealand and Islamic Iran.

"We were there last week and they were absolutely friendly, and they want to send people over here to be trained and learn about our systems," he said.

Dr Zohrab, director of MAF's animal products group director, said the Iranians also saw the signing of the memorandum of understanding as a significant breakthrough.

The document will mean simpler and more secure access to Iran for New Zealand animal products including meat, dairy products, fish, wool, skins and hides.

"Very few people are visiting that part of the world right now. The Iranians were extremely appreciative of our determination to press on with this work in the face of what's been happening in the region.

"It's been a very good development for our exporters, because it means their access to Iranian markets is now much more secure."

Iran is among many countries examining import control regimes following a spate of food scares including outbreaks of BSE and foot and mouth disease, and food contamination by E-coli bacteria.

Dr Zohrab said importing countries from the US to Iran wanted to understand better the regulatory and food production systems employed by exporting nations such as NZ.

Officials of the Iran Veterinary Organisation contacted MAF in January and officials visited Iran in February, May and, finally, last week.

During discussions, MAF moved to extend the potential scope of trade with Iran which is worth around $112 million a year to New Zealand, mostly in butter, wool and fish. Import standards for beef, venison and a number of other animal products were being considered.

"The main thing is that [the memorandum of understanding] has held the line. It has reconfirmed that trade can continue under our existing food safety regime; they have accepted our BSE [free] status, which is significant, and now we've got a platform to leap off and extend that into other areas," Dr Zohrab said.

Meat Industry Association executive director Brian Lynch said the export meat sector regarded the development as very positive.

"While Iran has not featured in our Middle East trade in the last three to four years, it was a prominent destination in most years before that," he said.

New Zealand exported more than 20,000 tonnes of lamb and mutton to Iran in 1996 but in the 1980s, when stock numbers here were much higher, shipments were as high as 63,000 tonnes.

"Iran has never been off the screen for our meat companies [but], of course, price factors are always important in any particular trading year, as is the relative appeal of alternative markets.

"Unquestionably, the memorandum that MAF have concluded is a welcome move that will underpin the future prospects for New Zealand meat products in that large market," Mr Lynch said.

Dr Zohrab said Iranian authorities were also interested in New Zealand's E-Cert electronic certification system.

The electronic system is a New Zealand Government guarantee that exports meet the health and food safety conditions of importing countries. It is replacing a cumbersome paper-based system.

Canada is the first country to hook up to E-Cert, and Dr Zohrab said Iran would be the second.

The system meant that in the event of a problem, such as a food recall, it was possible to trace the product to its origins in minutes, he said.

The Iran Veterinary Organisation people were especially impressed with the way E-Cert helped to combat fraudulent use of export certificates.