New Zealand aims to double agricultural trade with Brazil

Brazil’s diplomatic partner in international agricultural matters, New Zealand, aims to double its agricultural trade with Brazil over the next decade. This goal was outlined by New Zealand’s minister of agriculture and trade, Todd McClay, during his October visit to São Paulo—his first trip to Brazil—where he met with industrial leaders, signed agreements between New Zealand companies and Brazilian clients, and toured a JBS facility.

The primary purpose of Mr. McClay’s trip, however, was to attend ‘pre-G20’ alignment meetings in Brasília, an invitation extended due to New Zealand’s recognized expertise in leading multilateral trade discussions at the WTO and other international bodies.

“We want New Zealand to emerge as a prominent trading partner for Brazil,” Mr. McClay said, acknowledging that this ambition is substantial given New Zealand’s comparatively smaller production scale.

Currently, New Zealand imports about $270 million annually in Brazilian agricultural products and exports around $246 million worth of goods to Brazil. Mr. McClay is optimistic that New Zealand’s agribusiness sector can cater to specific areas of Brazil’s import demands, including kiwi fruit. He anticipates an expansion of New Zealand exports to Brazil by 2025.

In his discussions with Brazilian Vice President Geraldo Alckmin, Mr. McClay highlighted the potential for New Zealand to offer Brazil more than educational tourism, focusing on agricultural technology.

“Brazil presents significant opportunities, particularly in agtech, energy, and security,” he said, emphasizing the suitability of New Zealand’s agriculture technology for Brazil’s agribusiness sector.

Bilateral trade between the two nations reached $520 million last year, reflecting a 36% increase over the past decade.

Approximately 40 New Zealand companies have established operations in Brazil, with the number of export agreements quadrupling since 2019.

Dairy products, New Zealand’s third-largest export to Brazil, generated $16 million in sales in the year ending June 2024, following tourism ($82 million) and pharmaceuticals ($60 million).

Mr. McClay is eager to engage in bilateral talks with Brazil on sustainable development, investment, food security, and reducing non-tariff barriers. These discussions are expected to continue at the G20 meeting in Rio de Janeiro on November 19.

Both nations share a stance on revising the European Union’s anti-deforestation law. Like his Brazilian counterpart Carlos Fávaro, Mr. McClay advocates for postponing the law’s application, criticizing its “inflexible standards” for small producers. He describes the rule as “not only protectionist but also impractical for compliance.”

Another shared priority is reducing agricultural taxes. Earlier this year, Mr. McClay removed a livestock emissions tax set to expire in 2022, arguing that the tax hindered producers’ ability to invest in decarbonization. With this policy shift, Mr. McClay aims to influence the global dialogue on reducing agricultural subsidies and easing financial burdens on industry players.

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