The food and beverage sector is the lynchpin of New Zealand’s prosperity. It is the country’s largest manufacturing sector by total output – through its contribution to a positive trade balance and the value of its exports, which have doubled since 1990 to $15 billion per annum. The sector contributes around 10% GDP and half of all New Zealand’s merchandise exports by value. It therefore has a crucial effect on the nation’s economy.
Food and beverage is also a flagship industry internationally, advancing New Zealand’s reputation for innovation and quality. However, it is also vulnerable owing to its reliance on exports, particularly price-sensitive commodity exports and a challenging and increasingly sophisticated consumer environment. In addition, there are recognised world-wide industry trends that food and beverage producers must respond to in order to remain profitable in a global trading environment.
NZTE has formulated a strategy which calls for a focusing of resources between industry, government, science and education to target these trends, and to ensure future sustained growth for the food and beverage industry.
page top
NZTE has proposed four key strategies to encourage product innovation and to forge alliances:
NZTE has selected the following strategic projects for support:
NZTE opened the first ever ‘New Zealand Focus’ centre in Hong Kong in mid-September 2005 to facilitate trade opportunities in Hong Kong, China and the wider North Asia region for New Zealand exporters. The long-term objective is to improve the profile and to increase sales of New Zealand products in Hong Kong and North Asia.
For more information see www.newzealandfocus.com.
NZTE launched a ‘shop within a shop’ in two retail stores in Shanghai in May 2006 as part of a project which aims to create long-term business opportunities for Kiwi food and beverage exporters in China. NZTE is working in collaboration with a Chinese logistics service provider and distributor (Heng Tai Group) and a retail chain (Parkson) to provide a low cost format, which allows companies to keep control of costs, volumes, prices and distribution choices until they are ready to make a greater, long-term commitment to the market.
For more information see www.marketnewzealand.com/chinaretail.
NZTE has developed a strategic relationship with the Shangri-La Hotel chain in the region and is working to establish a reliable supply chain to create access to the regional five-star hotel market for New Zealand food and beverage suppliers. The project model is currently being tested in Malaysia and the aim is to roll out the supply chain model to other hotels and other Asian markets.
NZTE is looking at developing opportunities for New Zealand companies to leverage strong consumer demand in this area. The project focuses on market entry and partnership opportunities for clusters of companies dealing with functional foods, nutraceuticals and cosmetic ingredients. It involves the development and test of market entry strategies for North America and Europe and a scoping study in Japan.
Relationships have been developed with selected retail chains in the US, Canada and Mexico and NZTE is introducing New Zealand food and beverage companies into these chains by assisting in the reduction of market entry barriers, including assistance with achieving economies of scale and reducing marketing costs. The project also includes NZTE’s Wine Brand Manager programme, which involves an in-market brand champion for participating New Zealand wineries.
NZTE has project management responsibility for the joint Government-industry Food and Beverage Taskforce, announced in December 2004 by the Ministers for Economic Development and Agriculture. The joint Government-industry Food and Beverage Taskforce has identified new opportunities for growth for the food and beverage sector. Working groups have been considering key issues such as skill and labour shortages, R&D spending, market access and free trade agreements and will be making their recommendations to Government in late August 2006.
For more information see www.nzte.govt.nz/f&btaskforce.
This includes the retail and foodservice sectors.
>>Download the sector strategy (PDF, 81KB)
>>Download the China and Hong Kong Food Programmes Brochure (PDF, 166KB)
To read more about the sector including backgrounders, case studies and key organisations, visit MarketNewZealand.com.
NZTE has project management for the joint Government-industry Food and Beverage Taskforce.
The long-term objective of the taskforce is to see the resources of the industry, government, science and education, focused in partnership to secure and enhance New Zealand’s role in the international food industry.
>>Read more about the taskforce.
Market Analysis - Food miles and sustainability trends in the UK (December 2007)
Traceability: A platform for product knowledge and value (June 2006)
The Level of Added-Value in New Zealand's Food and Beverage Exports (Massey University, October 2005)
Economic Evaluation of the Food Sector (Nimmo Bell and Infometrics, February 2004)
For other food and beverage publications see the Publications section.
newzealand.govt.nz - connecting you to New Zealand central & local government services
© 2003-2008 New Zealand Trade and Enterprise
