Export News

Record export highs picked for primary sector

Sustained high growth in primary industry exports looks set to continue over the next two years with strong prices predicted for farmers, fishers, growers and rural communities. Minister of Agriculture and Minister of State for Trade and Export Growth Damien O’Connor today released the latest Situation and Outlook report for the Primary Industries. “This latest report shows record results, with revenue up 3.3 per cent on the previous year, forecast to reach a record $47. 9 billion for the year to June 2020. “Our horticulture sector is set to become the third largest primary sector industry by value, overtaking forestry. Kiwifruit exports alone are expected to rise by 8.6 per cent to $2.5 billon,’’ he said. The news is good for other sectors: Meat and wool exports are forecast to reach $10.4b for the year ending June 2020 – 2.5 per cent higher than the previous year. Dairy export revenue forecast to rise 8.4 per cent to $19.6b. A faster recovery in log export prices than expected last quarter has resulted in the forestry forecast being revised upwards of $190m. Fisheries Minister Stuart Nash says a significant milestone has been reached for the seafood sector. “It’s a fantastic vote of confidence to see that annual seafood export earnings are expected to pass $2 billion for the first time. The growth in this industry is underpinned by an increase in export prices and rising aquaculture production. “It’s really encouraging to see sustained growth within the seafood sector, with squid and salmon helping lead the way.” During a time of change in the primary sectors, Mr O’Connor said the positive outlook was a testament to each and every person working in the sector. “Our nation’s farmers and growers produce some of the highest quality food and fibre in the world – and […]

DairyNZ and Beef + Lamb New Zealand welcome sector-wide vision

DairyNZ and Beef + Lamb New Zealand welcomes the launch of a shared sector-wide vision to be world leaders in the sustainable production of high-quality food and fibre. “We are supportive of the Primary Sector Council’s broad vision of having a coordinated approach across sectors and Government that will help us develop our international brand and deliver more value for farmers,” Beef + Lamb New Zealand’s Chair Andrew Morrison said. “New Zealand farmers are constantly having to adapt to shifting consumer demands in order to compete internationally and achieve a premium in the global marketplace. Increasingly consumers are asking for assurances that the product is both sustainably and ethically produced. “We believe that our farmers are already world leaders when it comes to the production of high-quality, pasture-based products with a low environmental impact – but that doesn’t mean we can get complacent. We are always striving to improve” DairyNZ chair Jim van der Poel added. “Sustainable farming has a critical role to play in New Zealand’s future prosperity and wellbeing. If we all work together to embrace change, adapt and thrive, Kiwi farmers have a bright future ahead. The Primary Sector Council’s vision – Fit for a Better World – aligns with work that is already underway from both DairyNZ and Beef + Lamb New Zealand in the form of both Dairy Tomorrow and Taste Pure Nature. Dairy Tomorrow is our dairy sector strategy to ensure dairy farming is sustainable and profitable into the future. It includes six key commitments: • We will protect and nurture the environment for future generations; • We will build the world’s most competitive and resilient dairy farming businesses; • We will produce the highest quality and most valued dairy nutrition; • We will be world leading in on-farm animal care; • We will […]

Food and beverage exporters urge WTO to fix Appellate Body

Major New Zealand food and beverage exporters are urging World Trade Organisation Members to accelerate efforts to ‘fix’ its trade disputes mechanism which is currently suspended. Organisations representing New Zealand meat, dairy, horticulture, wine, and seafood exporters are deeply concerned that attempts to reach a consensus on the Appellate Body WTO have failed. This important body which adjudicates on contested rulings over disputes between member countries is now unable to function, leaving a key gap in the enforceability mechanism of the rules-based trading system. It is critical that WTO Members continue to support, but also to reform and improve, the multilateral, rules-based trade system to reflect the current and future needs of trade. A stable enforceability mechanism for the rules-based trading system provides certainty and confidence for our exporters when pursuing opportunities in global markets. New Zealand food and beverage exporters urge all WTO Members to redouble their efforts and to engage constructively in the process led by Ambassador David Walker of New Zealand to agree a pathway forward that avoids the continued suspension of the appeal process of the dispute settlement mechanism. Engaging in international trade underpins the prosperity of New Zealand food and beverage supply chains and our rural communities that produce food for the world. It has allowed our farmers access to best-practice and technology that has in turn improved the efficiency, sustainability and quality of food production. It has contributed to levelling the playing field and a more predictable trading environment. It is important to acknowledge the role this has played more broadly in promoting global food and beverage security and production. New Zealand food and beverage exporters recognise that WTO and some of its functions are not without flaws and need reform. However, WTO must also be given credit for helping to drive the prosperity […]

Sirma-1-croppedJapan-number-one-market-NZ-Food-website

Japan number one market for New Zealand chilled beef

Japan is now New Zealand’s number one market for chilled beef driven by tariff cuts under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). However the gains may be eroded following a US-Japan agreement, according to the Meat Industry Association. In the eight months up until the end of August 2019, NZ beef exports to Japan have increased 22% and 15% by value. In August alone, New Zealand dispatched 679 tonnes of chilled beef to Japan, 26% of the total and a 19% increase compared to August 2018. Sirma Karapeeva, Trade and Economic Manager at the Meat Industry Association, says since the CPTPP came in effect in December last year, overall beef exports to Japan have increased 22% by volume and 15% by value. “So far, we have seen two rounds of tariff cuts on beef into Japan. Pre-CPTPP, our beef exports faced a 38.5% tariff that has now been reduced to 26.6% and will continue to decrease to 9% over the next 15 years. “Effectively, the CPTPP has already saved around $14 million in tariff costs on New Zealand beef exports into Japan.” Prior to CPTPP, New Zealand’s beef market share had been dropping. Across the Tasman, Australia’s 2015 trade agreement with Japan saw its beef exports to Japan soar by $NZ1 billion, while New Zealand’s fell by $NZ25 million. “Under the CPTPP we have now achieved parity with Australia in the market and we are already seeing a rebalance of market share as New Zealand beef has become more competitive.” However, the announcement of a US/Japan trade deal is a cause for concern, says Ms Karapeeva. “Despite the US not being part of the CPTPP and their beef exports to Japan attracting a 38.5% tariff, US exports remain strong. “We are keeping a close eye on the […]

Organic Food Industry Undergoing Consolidation

The global organic food industry is undergoing consolidation. In the last week, three major deals have involved established organic food companies in Europe and North America. Ecovia Intelligence (formerly known as Organic Monitor) expects more such deals as rationalisation continues. Royal Wessanen, one of the largest and oldest organic food enterprises in Europe, has just been acquired by an investment consortium. With headquarters in Amsterdam, the company owns a portfolio of European organic and free-from food brands, including Bjorg, Kallo, Allos, Whole Earth, Clipper, Alter Eco, Tartex and Isola Bio. The investors have paid EUR 885 million (USD 1 billion) for the company with the aim of strengthening its position in the sustainable & organic food market. Earthbound Farm, the leading organic salads company in North America, has been purchased by Taylor Farms for USD 400 million. Established in 1984, the Californian company has grown into an international supplier of organic fruits, vegetables and salads. Bought by Whitewave Foods in 2013, it came under the ownership of Danone USA in 2016. The French multinational has divested the company as it plans to focus on plant-based dairy alternatives. Another sale involves Bolthouse Farm, a leading supplier of organic and natural beverages, in North America. Campbell Soup purchased the company in 2012, and has now sold it to the private equity firm Butterfly for USD 510 million. Bolthouse Farm organic carrots, juices, smoothies and dressings are a feature in natural food shops across the US. Ecovia Intelligence (www.ecoviaint.com) sees more such ‘sell-offs’ on the horizon as the organic food industry undergoes consolidation. The industry has traditionally been fragmented with many operators involved in production and distribution. Rationalisation is occurring with large companies looking to take significant positions. Apart from large food companies and retailers, recent years has seen the entry of unconventional […]

Synlait embarks on business transformation for growth and diversification

Synlait has chosen Infor CloudSuite Food & Beverage to support its supply chain and manufacturing operations and growth as part of a five-year business transformation plan. The goal is to modernise and streamline operations for the integrated dairy business, one with over 150,000 metric tonnes of annual sales volumes across domestic and international markets including Asia, Africa, Middle East, and Australasia. An existing Infor customer, Synlait is looking to improve employee engagement and increase operational efficacy and efficiency by aligning to best dairy industry practices. This will be facilitated and enabled by Infor’s food and beverage dairy industry specialised CloudSuite software-as-a-service (SaaS) enterprise solution. “The foundation of our business is all about partnering with other businesses and people who share our passion and commitment to excellence, integrity, and quality,” said Chris France, director of strategy and business transformation, Synlait. “Infor is a strategic partner for our business transformation plan with its ability to help us leverage dairy industry expertise, data insights and real-world knowledge via its innovative Infor CloudSuite F&B solution.” “Infor understands the unique challenges of the food and beverage industry in the Australia and New Zealand markets, and is committed to continue delivering finely-tuned industry-specific solutions in the cloud to help our customers maximise efficiencies and accelerate growth,” said Helen Masters, Senior Vice President and General Manager, Infor Asia Pacific and Japan.

Dairy plays a key role in latest economic success

The dairy sector is thrilled to see that its significant contribution to the New Zealand economy is affirmed in the latest Situation and Outlook for Primary Industries 2019 report. “It is great to see this acknowledgement of the huge part that the dairy sector plays in the economy,” DairyNZ chief executive Dr Tim Mackle says. The Ministry for Primary Industries March 2019 report says dairy export revenue is forecast to rise 5.5 percent to $17.6 billion for the year ending June 2019, up from 13.3 billion in 2016, 14.6 billion in 2017 and 16.7 billion in 2018. Increased milksolids production translated into higher export volumes; and a reversal of declines in key dairy commodity prices at the end of 2018 continued into 2019. Total dairy exports for the six months ended December 2018 grew 3.8 percent to $8.7 billion compared to the previous year. There continues to be strong international demand for dairy, including from China. Dairy exports to China, as our largest trading partner, are up 16.6 percent to $3.2 billion for the six months ended December 2018 compared to the previous year. “For New Zealand’s dairy farmers, the strong production, a recovery of export commodity prices, and a weaker NZD should help ease downward pressure on farm level profitability for the current season. We have accordingly adjusted our all company average farm gate milksolids payout forecast for the 2018/19 season upwards to $6.41 (including dividend),” the MPI report says. Dr Mackle says the dairy sector contributes to national and regional economic development, supports New Zealanders’ wellbeing and employs more than 46,000 workers nationwide. The latest dairy achievements align with the dairy sector’s strategy, Dairy Tomorrow, which has an aspiration to improve the lives of New Zealanders with every drop of milk, Dr Mackle says. “The continuing success of […]

Fonterra has new Bangladesh partnership

Fonterra is breaking new ground in South Asia’s rapidly growing dairy market, with the signing of a new distribution agreement that will make Anchor available to millions more consumers in Bangladesh. The deal is part of the Co-operative’s ongoing efforts to win in key overseas markets, by spreading the goodness of dairy nutrition. The population of Bangladesh has grown by more than 10 per cent in the last 10 years reaching over 160 million people and it now makes up over two per cent of the world’s total population. Matched by strong economic growth, consumers in Bangladesh are looking for affordable healthy nutrition options, such as high-quality dairy. Fonterra’s Managing Director of Sri Lanka and Indian Subcontinent, Sunil Sethi said Anchor is well placed to drive growth, while improving the wellbeing of Bangladeshis. “The Bangladesh market creates an exciting growth opportunity. Partnerships like the one we’re announcing today will enable us to bring dairy nutrition to even more consumers across the country, so we can do well, by doing good. “Our Anchor Full Cream Milk Powder, for example, comes with more than 23 vital nutrients including protein, calcium, vitamins and minerals. Anchor is specially formulated with ‘NutriShakti™, a nutri-bundle that supports growth, energy and immunity.” Managing Director, ACI Agrolink Limited, Dr. F H Ansarey said, “Anchor is a renowned global dairy nutrition brand and we have a shared vision alongside Fonterra to enrich people’s lives by supplying safe, high-quality dairy nutrition to the people of Bangladesh.”

Environment and agriculture can both benefit from trade agreement

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTTP) trade agreement has the potential to transform the agricultural sector and at the same time benefit the environment, agribusiness expert Dr Nic Lees of Lincoln University says. However, he added, the public needed to be convinced of that. The CPTTP is the re-negotiated Trans Pacific Partnership after the USA withdrew, and is a free trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Negotiations have concluded between the countries but it is yet to be ratified by New Zealand. The TTP had met some public and political opposition. The CPTTP could change the sector from relying on low cost commodities to a focus on high value exports intimately connected to a pristine environment, Dr Lees said. “Where New Zealand producers are exporting high value branded products we see an associated increase in concern for the environment. These producers know that they need to meet consumers demand for products to be produced ethically and sustainably.” He said tariffs on New Zealand beef exports to Japan will drop from 38.5% to 9%, saving the industry $25 million. “This reduction in tariffs will give New Zealand and Australia a competitive advantage over the USA beef in the high value Japanese market. “It will encourage New Zealand beef farmers to target high value beef cuts in the Japanese market rather than export commodity hamburger beef to the USA,” Dr Lees added. Tariffs on kiwifruit exports to Japan, the largest importer of New Zealand kiwifruit, will be eliminated. Tariffs on wine exports to New Zealand’s fourth largest market Canada will also be removed. Overall the CPTPP could provide approximately $222m of tariff savings each year. However, he said, the public need to be convinced of these benefits. “There is […]

US market offers huge potential for New Zealand wines

New Zealand wine exports to the United States are growing faster than to our traditional international markets of Australia and the UK, and that pace is being matched by increasing recognition at the top competitions. In the five years from 2010-2015, exports of Kiwi wines increased three times faster than the UK and Australia. For the 12 months ended April 2015, New Zealand exported 5.88 million cases of wine to the US – up three million since 2010. During that period, exports to Australia increased to 6.4 million (4.8 million five years ago), and in the UK to 6.3 million (4.7 million). Giesen Wines began exporting to the US in 1997 and these exports now make up 10% of total sales. Alex Giesen said the US market is changing dramatically from a New Zealand perspective. “This is the fastest growing mature market and is increasing at a faster rate than Australia and the UK. We think it will become New Zealand’s biggest market by value and volume in the next 12-24 months. At the moment, it’s second by value and third by volume. “With the growth the US has experienced in sales of New Zealand Sauvignon Blanc over the past 10 years, we’re quickly gaining the reputation as a serious winemaking country.” Giesen’s wines are winning impressive plaudits from international judges at US competitions. At the LA International Wine Competition Giesen won two Best of Class medals, five golds, three silvers and three bronze. And at the most recent New York International Wine Competition, it was named Marlborough Winery of the Year. “The US has a real thirst for our wines, and particularly Marlborough Sauvignon Blanc. It’s a very easy drinking, fruit forward varietal that’s always popular. Marlborough Sauvignon Blanc is really driving this category in the US now and […]

1 2 3 4

News Ticker

Export News