Constructive meetings in China and New Zealand are making good progress towards new regulation for NZ frozen velvet access into China.
A flurry of constructive and positive meetings in NZ and China on the frozen velvet issue have revealed “healthy relationships at all levels”, as negotiating teams aim for a timely resolution, Deer Industry NZ (DINZ) executive chair Mandy Bell said.
Bell and DINZ markets manager Rhys Griffiths visited China last month to meet with NZ and Chinese officials as part of negotiations towards new access regulations ahead of the 2024-2025 velvet season.
DINZ is collaborating with both the NZ and the Chinese governments to determine new market access regulations coming into force.
From May 1 2024 only dried velvet will be able to be imported as a Traditional Chinese Medicine (TCM) into China, and NZ authorities are seeking agreement with their Chinese counterparts on the appropriate classification for frozen velvet imports.
The changes apply to velvet imported by China from all countries, not just NZ.
DINZ believes these changes are being introduced to better align the import regime for TCMs in China, which are overseen by several Chinese authorities.
On her return to NZ, Bell updated the industry on the meetings via a town hall video conference, which attracted 50 velvetters, processors and other deer industry stakeholders.
Looking to turn over every stone during the visit, Bell was encouraged to find “very healthy relationships at all levels”, she said.
A meeting was held at the NZ Embassy in Beijing, which included the NZ ambassador and trade commissioner, the Ministry for Primary Industries’ two in-market counsellors and representatives from the Ministry for Foreign Affairs and Trade.
Bell said the meeting confirmed that deer velvet is their current “No 1 priority”.
Travelling with the China Deer Velvet Coalition’s Felix Shen, Bell and Griffiths also met with other contacts in a comprehensive programme which began at the start of the velvet value chain in northern China and led to Beijing.
Shen will be in weekly contact with the MPI team in Beijing to be on hand for any developments.
Strong support is also coming from business contacts who are lobbying provincial governments seeking a “favourable and timely resolution” to the issue.
The MPI’s negotiators are dealing with multiple Chinese agencies on the highly complex issue, with DINZ continuing to support them with advocacy and technical assistance, Bell said.
Communications have continued since the delegation’s return from China with DINZ meeting with MPI and MFAT personnel in Wellington.
DINZ has already given technical input for the initial negotiation phase, “remembering that the goal is to regulate health and safety and avoid any unjustified barriers to trade”, Griffiths said.
He said understanding deer farmers will need market certainty on what is happening, the MPI negotiators are aiming for conclusion by the middle of this year.
The MPI’s Wellington-based negotiating team is planning to go to China in the coming weeks to continue negotiations.
Last week, Damon Paling, the trade adviser contracted by DINZ on behalf of the deer industry to co-ordinate activity, briefed NZ Trade and Enterprise’s incoming trade commissioner for Shanghai, Steve Jones, who will be heading out to the market in June on deer industry business, in particular the velvet access issue.
Velvetters attending the deer industry conference in Napier next month will hear a further update, followed by another town hall conference call later in May.
Meantime, DINZ will continue to work closely with MPI, MFAT and the relevant players along the whole value chain with any urgent matters communicated directly with velvetters as needed.
