New Zealand policy contributing to herd decline

Herd expected to decline from 9.56 to 9.41 million in 2025

New Zealand changed government following the general election on October 14, 2023.The new three- party coalition government entered office on November 27, 2023. Since the new government’s formation, they have focused on repealing policies implemented by the previous government and in their words “remove the red tape impacting farmers’, according to a recent US Department of Agriculture (USDA) Global Agricultural Information Network (GAIN) report. 

On April 1st, 2024, the government released an updated 100-day plan focused on some policy changes effecting agriculture in the long-term. 

These policies relate to the following:

Agriculture emissions pricing

The plan to implement a price on farmers for agricultural emissions, primarily methane, by 2025 was ended, with the disbandment of the industry and government partnership – “He Waka Eke Noa”. Going forward, there will be a focus on establishing a Pastoral Sector Group with representatives from the agricultural sector to find other ways to reduce biogenic methane. Currently, an independent review of the methane science and targets for consistency is being reviewed, with no additional warming from agricultural methane emissions. In addition, the government announced that it would finalize the policy to keep agriculture out of the governments Emissions Trading Scheme (ETS).

National Policy Statement for Freshwater Management 2020 (NPSFM)

The government has committed to reviewing and replacing the NPSFM. This is expected to be completed in late 2025 to early 2026. The government intends to improve Freshwater Farm Plans (FWFP), as well as remove the low-slope map in the Stock Exclusion Regulations. This means that beef cattle and deer that are not “intensively grazed” will no longer be required to be excluded from waterways under the national regulations. The winter grazing rules will be repealed in time for winter 2025. Industry feedback is that they anticipate the intent is to fold these into FWFPs.

Reverse the ban on live export

The government has expressed its focus on reversing the ban on live cattle exports by vessel. However, this was not included in the most recent 100-day plan.