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Dairy Quota Management System
The New Zealand Government has reviewed the future allocations of rights to regulated dairy export markets that were established under the Dairy Industry Restructuring Act 2001. The initial exclusive allocations of rights to New Zealand Dairy Board (a wholly-owned subsidiary of Fonterra) will expire progressively between June 2007 and December 2010.
Government has proposed a policy framework to reallocate these rights as the initial allocations expire. NZFSA will manage the certification and enforcement requirements of the proposed quota system, which is expected to roll out at the end of 2007.
The links on this page will keep you updated on our progress with the proposed system.
• Questions and answers about exporting to dairy quota markets
• Questions and answers about dairy export rights, allocation of export licences and transfers (this link takes you to the MAF website)
MAF email alert 14 August 2008
Invitation to submit applications for the 2009 allocation of export licences to designated dairy export markets
In this allocation round licences will be allocated for the following:
• Butter to the European Union (37,346,500 kilograms)
• Cheddar to the European Union (3,500,000 kilograms)
• Cheese for processing to the European Union (2,000,000 kilograms)
• Milk Powder to the Dominican Republic (4,800,000 kilograms)
• Low fat Cheese to the United States of America (1,000,000 kilograms)
• Cheddar cheese to the United States of America (5,403,532 kilograms)
If you want to participate in this allocation round for export licences you need to submit your application to the Ministry of Agriculture and Forestry (MAF) at the addresses detailed below by 5.00pm on Friday 29 August 2008. Applications received after this deadline will not be considered for inclusion in the allocation round for 2009 licences.
Under the export licence allocation system, entities that collect at least 0.1% of national milksolids collected from farmers are eligible for a pro rata share of the quota export licences being re-allocated in any year.
Applicants who are allocated licences for cheese quota for the United States of America are required to advise MAF at the address detailed below of the full details of importer they will use for the importation of the product into the United States. This is so that the United States authorities can be advised accordingly and issue import licences for the appropriate amount to that importer for the 2009 quota year. These licences are known as designated importer licences. These details are required to be submitted to MAF by 5.00pm on Wednesday 1 October 2008.
In the event of any transfers of licences for these cheese quotas, the transferee will be required to use the importer designated by the original successful New Zealand applicant for quota. This is because the United States import licences issued to designated importers are not transferable.
Successful applicants for US cheese quota export licences should note that provision exists in US law for the ‘multi-lateralisation’ or ‘globalisation’ of US import licences for New Zealand quota cheese. This means that in the event a US import licence is globalised, US import licence holders would then be able to source the product to make use of their import licence from any country of origin rather than solely from New Zealand. No request for globalisation will be approved by the US authorities without the written concurrence of the New Zealand government.
Applicants should take note that in respect of the USA Cheese quotas 2,796,468 kilograms of quota for Cheddar cheese will unregulated (by New Zealand law) as from 1 January 2009 and available to any New Zealand exporter. For this quantity of New Zealand quota, the US authorities will be issuing either historical import licences or non-historical import licences (as opposed to designated importer licences). In order to export Cheddar cheese within the New Zealand quota, but outside the regulated quantity covered by designated importer US import licences, New Zealand exporters will need to contract with US holders of historical or non-historical US import licences.
For export licence applications and for notification of designated importers for United States cheese quota:
Email: Dairyquota@maf.govt.nz
Post: Hamish Forsyth, Dairy Quota Allocation and Transfers, MAF Policy, PO Box 2526, Wellington
Discussion document for certification system
• Consultation on proposals for a Dairy Quota Regulated Control Scheme – 31 August 2007
Press releases and articles about the dairy quota management system
• Dairy export markets open up – Food Connect Spring 2007
• Dairy export markets open up – Food Focus August 2007
• Dairy export quota opened up – Food Connect Autumn 2008
NZFSA Exporter Updates (monthly email newsletter to exporters)
• NZFSA policy discussion paper no. 08/07 on Proposed Dairy Quota Regulated Control Scheme – July/August 2007
• Regulations under way for dairy export quota; NZFSA workshop on quota requirements – November 2007
• New system for managing dairy export quota – March 2008
MAF consultation on managing the dairy quota
• About the review and the Amendment Bill, and making an application (includes Qs&As on licence allocation)
• Consultation on draft Transfer of Export Licences Regulations – submissions closed 22 October 2007
MAF email alert 13 December 2007 – final deadline for allocating export licences to designated dairy export markets
Parliament has now passed amendments to the Dairy Industry Restructuring Act 2001, providing for a new allocation system for export licences to certain designated dairy quota markets. Under this system, entities that collect at least 0.1% of national milksolids collected from farmers are eligible for a pro rata share of the quota export licences being re-allocated in any year.
If you want to participate in the first allocation round for export licences your application needs to reach MAF no later than 5.00pm on Tuesday 18 December 2007. Applications received after this deadline will not be considered for inclusion in the allocation round for 2008 licences. MAF initially called for applications in November 2007.
For more information on the new system, and how to make an application, go to:
http://www.maf.govt.nz/mafnet/publications/regulated-dairy-quota-market/index.htm
MAF email alert 27 November 2007 – Invitation to submit applications for export licences to designated dairy export markets
If you want to participate in the first allocation round for export licences you need to submit your application to MAF as soon as possible. It would greatly assist the allocation process if you could submit your application by Monday 3 December 2007.
Dairy certification and specifications
• Animal Products (Export Approvals – Dairy Quota) Notice 2008 [PDF to download]
• Registers & Lists – Dairy Products
• D203.1 Dairy IMA Certification and D204.1 Quota Compliance Programmes [these are in PDF to download]
• Dairy Specifications/Notices has links to D203 and D204
• Quota Management System – Export Approval and Certification, Specification Reference Data
This page was updated 18 August 2008
New Zealand Food Safety Authority
68-86 Jervois Quay
PO Box 2835
Wellington
NEW ZEALAND
Phone: +64 4 894 2500
Fax: +64 4 894 2501
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