New Zealand's dairy leaders have welcomed the conclusion of the Trans Pacific Partnership agreement, but expressed disappointment it did not achieve more for their industry.

'While the dairy outcome is far from perfect, we appreciate the significant effort made by Minister Groser and his negotiators to get some gains in market access for our farmers,” says Fonterra Co-operative Group Limited Chairman John Wilson.

Dairy leaders are disappointed that the TPP didn't achieve more for their industry. Photo: File.

'Dairy has been very hard to resolve and New Zealand has managed to get some progress against the odds. Our team has done well to lift the deal from where it stood at the Ministerial meeting in Maui.

'While I am very disappointed that the deal falls far short of TPP's original ambition to eliminate all tariffs, there will be some useful gains for New Zealand dairy exporters in key TPP markets such as the US, Canada and Japan.

'Greater benefits will be seen in future years as tariffs on some product lines are eliminated.”

John says that the entrenched protectionism demonstrated by the US dairy industry in particular had ensured that the deal failed to reach its potential.

Dairy Companies Association of New Zealand Chairman (DCANZ) Malcolm Bailey says the association is disappointed the agreement has not delivered a more significant opening of TPP dairy markets.

'It was always going to be very hard given the starting point for dairy as one of the most protected sectors globally,” says Malcolm.

'While further market opening is needed to help address price volatility in the global dairy market, the deal does contain some useful improvements.

'We thank Minister Groser and his team for the hard line they took to secure these new export opportunities for New Zealand dairy in the face of immense pressure from entrenched protectionist interests.”

DCANZ will undertake a complete assessment of outcomes as fuller details of the TPP deal for dairy becomes available.

DCANZ understands the deal also includes positive outcomes for other agricultural products, and is pleased that other New Zealand primary sectors will see benefits.

'Removal of distortions from global dairy markets remains a key priority for DCANZ,” says Malcolm.

'We will be looking closely at the trade policy landscape over the coming weeks, and talking to the government, to define a pathway forward.”