As New Zealand marks the one-year anniversary of its Free Trade Agreement (FTA) with South Korea, Fonterra Co-operative Group is gearing up to take advantage of huge potential for its dairy products there, particularly cheese.
Since the FTA was signed in December 2015, New Zealand has experienced 16 per cent growth in exports of food and beverage products to Korea.
The country is New Zealand’s fifth largest cheese market, worth US$50 million (NZ$70m) a year – comparable to New Zealand’s cheese trade to the United States.
New Zealand’s new annual duty free quota of 7000 metric tonnes (MT) of cheese to Korea will increase by three per cent a year.
Tariffs on cheddar and block mozzarella will be removed after seven and 12 years respectively, with all cheese tariffs eliminated and quotas removed after 15 years.