Maureen Pugh, MP West Coast - Tasman
Over the past two years, New Zealand’s National-led Government, under Prime Minister Christopher Luxon and Agriculture and Trade Minister the Hon Todd McClay, has pursued a group of policies aimed at strengthening the economic position of farmers and growers, focusing on regulatory reform, export diversification, innovation investment, and international market access.
These efforts have had both direct and indirect impacts on the primary sector, helping to sustain profitability and open new export opportunities in a challenging global trade environment.
One of the Government’s clearest priorities has been reducing regulatory burdens that farmers and growers say have hindered productivity and investment. National campaigned on and has begun rolling out changes to farm regulations intended to streamline planning and consenting processes, restore local decision-making, and improve workforce access for rural businesses.
While implementation is ongoing, stakeholders in dairy and other sectors have noted that easing onerous requirements around environmental management and resource consents can help reduce operational costs and encourage investment.
The Government has also targeted innovation and productivity growth through funding initiatives. For example, the Primary Sector Growth Fund, co-ordinated by Minister McClay, has supported projects like specialised feed development for New Zealand’s King salmon industry, a sector with high growth potential.
Perhaps the most significant development for the agricultural and horticultural sectors has been the negotiation and conclusion of a Free Trade Agreement (FTA) with India, which was announced in December after intensive negotiations launched in March 2025 and led by Hon Todd McClay. This agreement represents one of New Zealand’s most ambitious trade deals in decades and has massive potential for farmers, growers, and exporters everywhere.
Under the New Zealand–India FTA, tariffs on roughly 95 % of New Zealand exports to India will be eliminated or significantly reduced, with about 57 % becoming duty free from day one and up to 82 % duty free when fully implemented. Crucially for the primary sector this includes tariff elimination on products such as sheep meat, wool, forestry products, and many horticultural goods, with phased tariff reductions for apples, kiwifruit, cherries, avocados, blueberries, persimmons, and honey.
These changes open up one of the world’s fastest-growing markets and are expected to diversify export destinations beyond traditional markets.
For growers, the horticulture sector has specifically welcomed the deal. Horticulture New Zealand and industry bodies have pointed to access for apples and expanded kiwifruit as a tangible opportunity to scale up exports and drive long-term growth in revenue.
The phased tariff reductions on other fruit categories also provides a path for market expansion in India’s expanding middle class, which is forecast to drive increased demand for premium food products.
While the FTA includes provisions for duty-free access for certain bulk dairy ingredients and food ingredients for re-export, specific protections for the sensitive Indian agricultural sectors mean that fully opening India’s dairy market remains limited in the initial agreement.
Looking ahead, the deal with India strengthens New Zealand’s export diversification and resilience by offering alternative markets outside China and Australia, which have historically dominated New Zealand’s primary exports.
Collectively, regulatory reform, strategic trade outcomes, and targeted support for innovation reflect the Government’s approach to bolstering the economic environment for farmers and growers—helping them navigate global competition, reduce costs, and capture new market opportunities.
