NEW Zealand and Australia’s Prime Ministers have discussed both countries’ response to the United Kingdom's decision to leave the European Union, and NZ's John Key has since downplayed the prospect of collaborating with Australia on new joint agreements with the UK.

Mr Key explained: "We (himself and Australia's PM, Malcolm Turnbull) are quite similar in our approaches. Where it makes sense, we will co-operate,” but he doubted that New Zealand and Australia will pursue a joint free trade agreement as they “focus on different things”.

New Zealand has already begun talks on a free trade arrangement with the EU, which Key said was "technically further ahead" than any possible agreements with the UK.

Asked whether Brexit might create opportunities for New Zealand exports, Mr Key was doubtful, saying he believed the UK and EU would be negotiating for access to one another’s markets, and groups, such as Irish farmers, would remain focused on preserving their own market access.

“I don't think there will be a reduction in export opportunities, but I’m not optimistic it will dramatically improve opportunities in the UK,” he said.

For the multiple changes, a ministry of foreign affairs and trade has been tasked with creating a strategy in order to deal with the changes to existing agreements with the UK, which were granted automatically due to its EU membership.

However, Mr Key has reiterated assurances from both UK and EU officials, in the short term at least, that New Zealand's trade access and rights regarding the movement of people would not be affected while Britain remained an EU country.

The process of negotiating the UK’s departure from the EU is scheduled to take two years from the date London triggers Article 50 of the Lisbon Treaty.

Economically, the New Zealand dollar has hit a three-year high against the British pound, amid continued uncertainty about the outlook for the United Kingdom after Brexit.

The New Zealand dollar went to £0.5367 overnight, its highest since May 2013, and was trading at £0.5302 at 8am in Wellington on Monday, from £0.5272 at 5pm, on Sunday. The local currency dropped to USD0.7008 from USD0.7065, on Monday.

Managing director of BK Asset Management, New York, Boris Schlossberg, explained: “The markets remain a cauldron of volatility as lack of clarity on the resolution of Brexit continues to weigh heavy on financial assets."

On the ongoing export of New Zealand sheep meat, the EU is the biggest market for this, bringing in $1.4 billion last year, with half of the 228,000 tonnes of quota being taken by the UK.

In terms of red meat, total exports to the EU amounted to $2 billion, making it the single most valuable market.

However, the biggest impact for New Zealand would be the UK's loss of zero-tariff access for sheep meat into Europe, where the country sends 90% of its production, leaving more in its domestic market. There was some optimism, however, about the market for this year.

Beef and Lamb New Zealand's chief economist Andrew Butt explained: "The key thing, particularly for this season, is that the vast majority of lamb has already been exported to the EU. Already two thirds of that lamb, for the season ending September 30, has been exported."