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New Zealand Market Wins Over U. S. Exporters
By Maxine Yule
Though an ocean away, New
Zealand–with its similar culture and familiar business
environment–offers big pluses for U.S. agricultural
exporters checking out new markets.
Long-standing tariff advantages granted to British Commonwealth countries, including Australia and Canada, are decreasing steadily, so U.S. exporters should examine opportunities to grab market share in New Zealand’s billion-dollar import market for agricultural imports.
Already, U.S. agricultural products make up a tenth of New Zealand's agricultural imports. They reached $131 million in fiscal 1998, second only to those from Australia,
Economy Stable A Plus
Following 2.9-percent increases in 1997 and 1998, New Zealand's economy is expected to slow in 1999 to a 1.9-percent growth rate.
In general, the economy is in good shape, with consumers benefitting from an annual per capita income of $13,370. Inflation has been kept at 1 percent by the Reserve Bank's monetary policy. Recent overall interest rates have been between 7.5 and 8 percent.
Trade Barriers Minimal
While New Zealand's membership in the
World Trade Organization (WTO) has provided for reduced tariffs
with all its trading partners, New Zealand has made a big leap
towards eliminating all tariffs in advance of its Asia-Pacific
Economic Cooperation (APEC) commitment of 2010. Tariffs for many
items are falling in steady annual increments.
Australia, New Zealand’s biggest trading partner, no longer enjoys significant tariff advantages over U.S. exporters.
New Zealand has strict phytosanitary regulations, especially for nonprocessed food items. Nonetheless, access for many items has increased. Before beginning in-country market research, exporters should check with USDA's Animal and Plant Health Inspection Service (APHIS) to ensure that their products meet the required standard. APHIS must certify many agricultural exports destined for New Zealand.
If a U.S. product already has import health standards in place, New Zealand importers often can advise exporters on the domestic food standards that need to be met. Many are posted to the New Zealand Ministry of Agriculture's homepage: http://www.maf.govt.nz
Additional information on import health standards is available from APHIS:
USDA/APHIS
National Center for Import and Export
4700 River Road
Riverdale, MD 20737
Tel.: (301) 734-7830
Fax: (301) 734-8226
Homepage: http://www.aphis.usda.gov
What Sells in New Zealand?
U.S. products enjoy a quality reputation along with their novelty status, though competition is tough.
U.S. consumer-oriented products are top sellers in New Zealand. At $52 million, they account for two-thirds of U.S. agricultural exports to New Zealand. Biggest growth items are snack foods, fresh fruit, processed fruit and vegetables and pet food.
Fresh U.S. produce is an especially welcome addition to New Zealand retail shelves during winter in the Southern Hemisphere. New or broadened standards for asparagus, strawberries, citrus, table grapes, mangoes, peaches, plums and nectarines have allowed U.S. exports of these items to expand rapidly.
As in other countries, lifestyle changes are driving a trend toward convenience foods and carry-out meals. At the same time, consumers are increasingly more health conscious, preferring fresh and natural foods.
Supermarkets are just now moving towards freshly prepared meals. Packaged salads and prepared vegetables are also popular.
In the quest for convenience, consumers are opting for more frozen foods, with ethnic foods being the most popular. Sales of $10.5 million last year were up 10 percent from the year before.
Facts for U.S. Exporters
Three companies--Progressive Enterprises, Ltd., Dairy Farm International Group and Foodstuffs New Zealand, Ltd.-- dominate the $3.6-billion-a-year retail grocery business, with many of their supermarkets trending toward direct importation.
Many distributors who have specialized product lines also carry complementary imported lines. The U.S. Office of Agricultural Affairs in Wellington can advise exporters on how to obtain up-to-date food import regulations.
Label Requirements Similar to U.S.
Labeling laws are administered by the Australia-New Zealand Food Authority, with products cleared by Auckland Healthcare, a central clearinghouse jointly used by Australia and New Zealand. While nutritional information is not required, most manufacturers do include nutritional information on labels. Expiry or packing dates are required only on bakery products.
Packaged food products must be labeled with:
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The author is an agricultural assistant with the Office of
Agricultural Affairs in Wellington, New Zealand. Tel.: (644)
4722-068; Fax: (644) 4730-772.
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