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The value of New Zealand primary sector exports to the United Kingdom grew 25% in the second year of the free trade agreement between the two nations.
Total primary exports to the UK in the year to June 30 2025 were $1.33 billion, up from less than $1bn in 2022, following the lifting of tariffs and quotas in May 2023 as part of the free trade agreement.
A market intelligence report by NZ Foreign Affairs and Trade noted primary exports grew to $1.06bn in the year to June 20 2024, the first year of the FTA.
The value of those exports increased a further 25% in the second year of the agreement, with dairy exports a major beneficiary, growing from $2 million in 2022 to $157m in the year ended June 30 2025.
The UK is one of the world’s largest importers of dairy products, with NZ sales primarily of cheese and butter with a small amount of milk powder.
“New Zealand exporters are actively working to build long-term partnerships with importers, which is expected to stabilise trade flows over time,” the report says.
Despite this, just 22% of NZ’s export quota for cheese and 49% of butter have so far been used.
The value of beef exports also increased sharply, from $15m to $120m over that same period.
The lifting of quotas and high out-of-quota tariffs for beef has enabled a significant boost in beef exports, growing 152% between 2024 and 2025.
Currently food service channels such as restaurants and catering are driving demand for New Zealand beef.
“However, retail sales are gaining momentum, with growth evident across major UK supermarkets, including Sainsbury’s which holds the second-largest grocery market share.”
Lamb is outside the FTA, but the value of sales still increased, from $360m to $492m due almost entirely to higher global prices rather than increased volumes.
The FTA has also boosted sales from smaller sectors, with honey increasing from $38m to $57m and apples from $32m to $54m.
However, higher excise tax, changing consumer preferences and stockpiles the developed during covid have worked against FTA tariff benefits for wine.
The report notes that exporters are opting to ship bulk wine for bottling in the UK, which could be contributing to lower returns.
”New Zealand wine continues to hold a premium position on shelves, ranking second only to France in price point.
“The country also retains a strong presence in the sauvignon blanc category, commanding 51% of the market share.”
Dining and Cooking