In the wake of the preliminary talks for a Free Trade Agreement with Russia, M&WNZ and MIA are upbeat about the development.

According to the Meat & Wool New Zealand (M&WNZ) and the Meat Industry Association (MIA), the improved access to the Russian markets would provide a good platform for New Zealand sheep and beef farmers and industry.

Commenting on the development, MIA Chairman, Bill Falconer said that though Russia was currently a smaller market for the red meat industry of New Zealand; however, the country had a huge potential as the significant population of Russia were consumers of red meat who had growing incomes.

This would provide a good platform for the significant market growth for the New Zealand players.

Figures reveal that over the last five years, New Zealand has exported red meat to Russia that has an estimated value of $30 million annually. The exports mainly consisted of sheep meat and beef offal.

Reports suggest that in 2008 the exports peaked at $56 million; however, due to the impact of the global financial crisis, the demand for meat softened from Russian.

M&WNZ Chairman, Mike Petersen said that, "this development is important because it's not just about eliminating tariffs, but also addressing non-tariff barriers that restrict trade".