Green light for bovine blood products into China video

Warwick Smith/Stuff

Minister for Primary Industries Nathan Guy at Proliant in Feilding announces a new government backed international initiative for blood product exports.

New Zealand bovine blood products will enter the Chinese market and bring more than $50 million to the economy.

Sixteen manufacturing plants have been given the green light by primary industries Minister Nathan Guy to export products such as cattle protein and serum to China.

The move has been approved by the General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China, Guy announced on Thursday.  

From left, Proliant production manager Luke Bibby, Minister for Primary Industries Nathan Guy and Proliant general ...
WARWICK SMITH/FAIRFAX NZ

From left, Proliant production manager Luke Bibby, Minister for Primary Industries Nathan Guy and Proliant general mananger Paul Lewis.

While visiting Proliant's cattle blood manufacturing plant in Feilding, near Palmerston North, Guy said he expected the products to be of "significant demand" in China.

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The serum and protein products are used for manufacturing vaccines, diagnostic kits, laboratory media, and a range of specialised products for use in both humans and animals.

Before 2015, New Zealand exported some bovine blood products to China, however, with formal access now negotiated, it gave the industry more certainty, he said. 

Although China's one child policy had started to phase out, Guy said many families still had several pets, which drove the demand for vaccines.

China's pet ownership rates were typically higher as people in the country bought animals during the strict period of the one child policy enforcement.

The deal provides market access for both finished and semi-finished products, meaning exporters can attract a price-premium for higher-value products.

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"We believe it's somewhere in the vicinity of $50 to $100 million per year.

"We have an enviable disease status compared with many countries, which means our bovine blood products are widely sought after by a range of markets across the globe.

"This new access is a real bonus for the wider meat industry, the regions and our wider economy."

He predicted the cash injection to the beef industry would consolidate payouts to farmers. 

The news comes at a good time for cattle farmers, who are already experiencing the highest schedule in 10 years. Steer and heifer prices have increased from just over $3 a kilogram in 2006 to about $5 this year.  

Proliant general manager Paul Lewis said the bovine protein and serum that would be exported to China made up about 60 per cent of their business.

 - Stuff

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