Mr. Joe Burke:

With regard to New Zealand's exports to Europe, there had already been in place a fairly comprehensive and significant deal, even prior to the additional volume and tariff arrangement. Thankfully, New Zealand has not really targeted the European market over the past few years. Its quota for 2022 was only 56% utilised. There is additional capacity should it choose to utilise it, and we have to be mindful of that.

In reality, however, New Zealand used only 56% of the previous quota in 2022. It is one to keep an eye on. The volumes into Europe grew slightly, particularly in the latter half of 2022. That was based mainly on difficulties in other markets, including China and the US. We have been a little more hopeful in recent months that those markets are recovering post the Covid pandemic. We see a slight recovery in prices in the southern hemisphere as well, although, as we heard earlier, those countries' prices are still significantly below ours. They have come up by a couple of percent a month over recent months, but yes, it is certainly one to keep an eye on. The market will remain competitive in the near future anyway.