Feb 09, 2018 - Entries are now open to the Air New Zealand Cargo ExportNZ Awards 2018 - Auckland and Waikato. Export business operations based in Northland, Auckland and/or the Waikato regions are eligible to enter.
Dec 13, 2017 - The apple industry is still not sure of the cost of a fungicide contamination which has threatened to destroy 35 hectares of apples in Hawke's Bay and lop several million dollars off the value of the export harvest.
The issue first came to light when Nelson-based Adama New Zealand was alerted by a Hawke's Bay orchardist on October 5 to a potential issue with blemishes discovered on the leaves and young buds of some Royal Gala tree varieties.
The company, part of a world-leading crop protection group, began an investigation which led less than a fortnight later to the pre-emptive recall of cover spray Mancozeb. It was later found a batch imported from India contained fungicide Azoxystrobin — commonly used in the growing industry, but not for apples, and a complete no-no for the signature New Zealand variety of Royal Gala.
The fungicide caused russet on apple skins, knocked apples off trees prematurely and damaged leaves, and it was reported soon afterwards that 185 hectares had been affected, mainly in the Nelson region, where 20 growers were compromised, but also 35ha in Hawke's Bay, where nine growers were affected, understood to be primarily in the Havelock North area.
Adama NZ chief executive David MacGibbon said on November 3 when announcing the permanent recall of Mancozeb from sale, that while the product was not one produced by his company, he was "devastated" by the impact on growers who he said were "like family to us, many of us have known each other for decades".
"Mancozeb has been a widely used product in spring for apple growers since we started selling it 10 years ago," he said. "There have never been any issues before."
"However, we will not be selling it again as we have now lost our faith in its manufacturer. This is the only product they produce for us."
It doesn't affect last season's apples, which had been applied with previous uncontaminated batches of Adama Mancozeb, and the company is continuing to run tests heading towards harvest in the current season on all crops where the product has been used, and will further support growers, Mr MacGibbon said.
Hastings-based industry leader Alan Pollard, CEO of New Zealand Apples and Pears, which until April was known as Pipfruit New Zealand, said yesterday a tracking system managed to establish quickly which growers had received the rogue batch, but while it is now more than two months since the alarms were first sounded it would be still a while before the cost could be established.
Insurance risk assessors have been working with growers and the company, and costs are assessed on the "physical loss" (complete destruction) and "economic loss" which includes diminished value of fruit able to be salvaged but not able to be exported.
With almost 10,000ha of apple orchard nationwide, the area affected represents about 1.85 per cent, which Mr Pollard said may be the equivalent of stock lost most years because of hail damage, and some of the loss is being minimised by thinning.
But based on the value of last year's exports — about $800 million — export market losses in Hawke's Bay could be about $3 million.
The product at the centre of the problem was just one of several of its type and orchardists have had other options.
Dec 12, 2017 - : Steve Trickett has joined AVOCO’s senior management team to expand on market development in Asia and oversee grower communications at home. A familiar face to many avocado growers, Steve has joined the company as Marketing and Communications Manager and is responsible for market planning and performance with focus on new and developing markets where fruit carries the AVANZA brand. He will support the existing sales and marketing team, oversee contestable fund applications and develop AVOCO’s communications and profile among the grower community.
Steve’s 35-year experience in the export sector includes stints at Fruitfed Export, NZ Kiwifruit Marketing Board (now Zespri), Chiquita Brands New Zealand Ltd, ENZA Fresh, Freshmax Ltd and Turners & Growers Exports. Until earlier this year, Steve worked for another Bay of Plenty avocado exporter. He says the move to AVOCO enables him to continue in an industry he’s passionate about.
“I’ve worked with, known and respected the key people in AVOCO for well over 20 years and I’m a strong supporter of the AVANZA model used beyond Australia. So, I am excited by the fact that AVOCO management were keen for me to join them and further bolster what is a formidable marketing team,” says Steve.
“I also welcome the opportunity to be part of a much larger business such as AVOCO that has compelling brand relevance via ‘AVANZA’, the Asian market brand, with recognised market leadership and the best pick of customers across the region.”
Steve is a firm believer that New Zealand’s avocado industry has a bright future. Avocados tick all the right boxes from a consumer perspective and this has fuelled global demand.
“Avocados are nutritious, versatile and tasty. Taste and texture is very important to the Asian consumer especially. They are very aware of the subtleties of every part of the fruit.
“From a commercial perspective, avocados can be shipped by sea from New Zealand to avoid costly air freight. Overall, they’re a fabulous, healthy fruit that has won over consumers worldwide and that demand shows no signs of abating.”
Outside of Australia, Asia is New Zealand’s next biggest market and it’s a region where relationship-building with key customers and distributors is paramount. Steve has worked in the region extensively and says the “New Zealand story” has real currency for export groups like AVOCO.
“In Asia, our fruit is regarded as a great product, it’s come from a great origin and is mostly supplied at a time when competitor supply countries such as Mexico struggle with quality. People also have a favourable perception of our clean, green image.
“Every time you go to a NZ trade office in Tokyo, Seoul or elsewhere in Asia, they say don’t stop promoting the ‘New Zealandness’ of your product. It’s very important and resonates well with consumers.”
With the New Zealand avocado industry inching closer to market access to China, Steve is taking an active role in helping AVOCO lead the way by visiting China to learn more about sales and distribution systems.
A small industry coordinated non-commercial trial shipment to China is scheduled for next month following completion of on-shore audits by the Chinese authorities. Full commercial shipments are unlikely until the new season starts in September 2018.
While there are huge trade opportunities in China, Steve says it’s critical to first understand the market’s supply chain differences, and to then select which sales channels to pursue in the immediate to medium term.
Dec 12, 2017 - A record 4.754 million tonnes of cargo crossed the port’s wharves in the year to 30 September, up from 3.916 million tonnes in 2016. Container volumes grew 12% to a record 288,444 TEU. Log exports also hit a new high, with 1.63 million tonnes exported through Napier – a 35% increase on last year’s record. Napier Port has released its annual results for the 2017 financial year, reporting record cargo volumes and a strong financial result.
“It’s been an historic year for Napier Port,” said Chief Executive Garth Cowie. “We faced a major challenge in the wake of the Kaikoura earthquake, and I’m proud of the way our people stepped up.
Napier Port saw a significant and unexpected spike in cargo following the quake on 14 November 2016, as containers were rerouted to Napier.
“Essentially, we saw six years’ forecast growth in one year. The release of our annual results is a chance to reflect on the magnitude of that feat. Absorbing that level of unexpected growth without compromising safety or service is a big task, but our people took it in their stride. It’s a real testament to the calibre of our people and our culture.”
It’s not the only major feat for the port this year. The Ovation of the Seas’ maiden call on January 5th saw the giant liner break the record for the largest ship ever to berth at Napier Port.
“We’ve had a fantastic cruise season, and the Ovation’s call was undoubtedly the highlight. It really showed what we’re capable of achieving, and it was great to have such strong support from our tourism partners and our local community.”
More than 125,000 passengers and crew visited Napier over the 2016-2017 season, bringing around $20 million into the local economy. Those numbers are set to grow, with around 150,000 passengers and crew expected this season.
The port’s onsite packing facility, Port Pack, also continued its growth trend this year, with 48,310 TEU containers handled over the course of the year.
“Port Pack now accounts for nearly a third of Napier Port’s containerised full export throughput, and has grown into one of the biggest packing facilities in New Zealand.”
Napier Port delivered an exceptional financial result, reporting a record $16.7 million net profit after tax, up 46% on last year, while delivering $10.7 million in dividends to its sole shareholder, the Hawke’s Bay Regional Investment Company. It invested $18.7 million in capital projects and equipment, including land holdings in Pandora and Whakatu and specialist studies to support its application for resource consent to build a new wharf.
The resource consent application for its proposed 6 Berth Development and Dredging Project was submitted to Hawke’s Bay Regional Council yesterday, and is a crucial element in Napier Port’s future strategy.
“Hawke’s Bay’s economy is in growth mode, and we’re forecast to see cargo volumes nearly double over the next decade, while ship size is also forecast to grow. Having a sixth wharf in place will strengthen our connection to global markets and ensure Hawke’s Bay can continue to thrive and maintain its enduring relevance.” View the full report here.
With export demand climbing steadily, Napier Port is currently planning to develop a new wharf to accommodate larger ships and cargo demand. For more information on the proposed development, see http://projects.napierport.co.nz/the-project
Dec 12, 2017 - The growth in New Zealand’s primary industry exports is impressive and provides the sector a strong base to deal with the challenges ahead, says Agriculture Minister Damien O’Connor. The latest Situation and Outlook for Primary Industries report shows the sector’s exports will grow by 8.5 per cent in 2018, to $41.4 billion.
“This would be the largest annual increase since 2014 when dairy prices rose to very high levels,” says Mr O’Connor.
“Growth this year is spread across all sectors and these gains are expected to be built on a more sustainable foundation.”
Mr O’Connor says dairy exports are leading the way, with a forecast increase of 15 per cent to $16.8b in 2018 despite the wet spring affecting production.
“Despite a decline in cow numbers, there has been some better value for exporters. The sector continues to provide a solid base for a better future.
“Meat and wool exports are forecast to grow 4.2 per cent to $8.7b, with lamb prices looking really good and beef, mutton, and venison also doing very well.
“The forestry sector is on pace for a third consecutive year of strong export growth with exceptional demand from China. Forestry exports are forecast to reach nearly $5.7b in 2018.”
Mr O’Connor says New Zealand’s primary industries are evolving.
“Our horticulture sectors are leading the charge in producing high-value products tailored to target markets overseas. This isn’t just true for kiwifruit, wine, and apples - there are also emerging opportunities for cherries, avocados, and berries.
“We are also seeing a huge shift to high-value products in the dairy sector. For example, infant formula exports are forecast to exceed $1b in 2018 for the first time. UHT milk, yoghurt, and other specialty products are also doing very well.
“We are a primary producing nation and it is very encouraging that the prospects for the primary industries look so bright. However, New Zealand and other primary producing nations face the global challenge of sustainability – we need to provide good quality, nutritious food for a rapidly rising global population but we must do this in a way that is sustainable.
“This means placing an even greater focus on high-value production, sustainable resource use, managing the risks posed to our primary sector by harmful pests and diseases, and meeting ever changing consumer demands.”
The news is also good for other sectors:
* Horticulture exports are forecast to grow 5.2 per cent in 2018 with broad-based growth across the sector. Wine, kiwifruit, and pipfruit are all contributing to this growth story, and there is a high level of investment supporting further growth.
* Rising prices for wild capture fisheries products and aquaculture volumes are expected to contribute to a 4.4 per cent increase in seafood exports to $1.8b.
* Honey export volumes are forecast to resume growth after a dip in 2017, while exports of innovative processed foods, including dietary supplements products, are expected to resume their growth.
Dec 11, 2017 - New Zealand exporters need to maintain a dialogue with Government about issues encountered in overseas markets at a time when New Zealand is looking to expand, and possibly reshape, its trade law framework, says Daniel Kalderimis, partner and head of Chapman Tripp’s International Law practice.
"International trade policy is entering choppy waters, and the rise of China, the Trump Administration’s America First philosophy and Brexit will all bear directly on New Zealand in ways that are difficult to predict.
"Although the prognosis looks good post the APEC Summit for the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), there will be continuing uncertainty until the agreement is signed.
"If CPTPP comes into force, export businesses should engage in medium to long-term planning to ensure the smooth operation of global supply chains," Kalderimis said.
So far, we have not seen a retreat from globalisation and liberalised trade that we feared when President Trump was elected, he said.
But there are changes in the wind.
"There is an emerging view that free trade agreements (FTAs) need to address global issues such as climate change and rising inequality and there may be a trend away from investor-state (as opposed to state-state) dispute settlement clauses, which allow corporates to sue governments."
Governments will always do things to support their own constituents, and sometimes that may mean protectionist or complicated rules that increase expense for exporters, said Tracey Epps, trade law consultant at Chapman Tripp and former senior advisor in the Ministry of Foreign Affairs (MFAT) Trade Law Unit.
"But systems are in place that allow the government to address those kinds of actions, as evidenced by New Zealand’s successful claim in the World Trade Organisation (WTO) against Indonesia earlier this year.
"There are benefits to businesses engaging early and well to bring sticking points to the attention of relevant officials."
The WTO system is extremely valuable for New Zealand, and as a small country we rely heavily on a rules-based system, she said.
"A real concern at present is that the WTO’s dispute settlement system is under threat from US actions in blocking the appointment of members to the Appellate Body."
Also valuable is New Zealand’s growing network of FTAs, she said. "New Zealand negotiators will have their work cut out for them in Geneva to ensure continued agricultural market access on favourable terms to the United Kingdom and the EU27 following Brexit."
The lawyers were commenting on the release of Chapman Tripp’s publication, International trade law - trends and insights.
Dec 7, 2017 - A new arrangement signed recently will simplify New Zealand's meat product exports to Egypt, the Ministry for Primary Industries (MPI) said today. Under the new arrangement, Egyptian authorities will no longer have to visit each individual meat premise that wishes to export to Egypt.
The arrangement was signed by MPI Director-General Martyn Dunne and Egyptian Deputy Minister for Agriculture Dr Mona Mehrez in Wellington.
"This the first time Egypt has agreed this type of arrangement with any country, and is a clear demonstration of the strength of New Zealand's meat regulatory programme and our good relationship with Egypt that has developed through years of export, engagement and audit," says Mr Dunne.
"It's pleasing New Zealand's meat regulatory programme meets the expectations of the Egyptian Government. New Zealand has a world class meat regulatory programme, and signing of the arrangement with Egypt further reinforces this"
The signing was part of a visit by Dr Mehrez and a delegation of senior Egyptian veterinarians to learn about New Zealand's meat regulatory programme and explore opportunities for collaboration.
This arrangement will make it easier for New Zealand exporters to access the important Egypt market for New Zealand meat products. In the year to 30 June 2017, we exported about $52 million worth of meat products to Egypt.
"New Zealand is proud of its long history of agricultural exports to Egypt," says Mr Dunne. "We are committed to growing this important trade, a key part of which is through simplifying exporting processes. This arrangement is a great example"
"Both New Zealand and Egypt have committed to working together to identify areas we can cooperate in, particularly in animal health and husbandry," says Mr Dunne.
"We look forward to deepening New Zealand's trading relationship with Egypt even further through sharing our respective knowledge and experience"
Dec 04, 2017 - Eagle-eyed planespotters are noticing increasing visits by cargo planes to Christchurch Airport at the moment. This signals the start of the key export season and highlights the valuable contribution local producers and exporters make to the local economy. Tasman Cargo Airlines National manager Gerry Bray says the company's Boeing 757 Freighter came into Christchurch last Sunday, bringing a variety of goods to the South Island.
He says it left with a range of high value fresh produce bound for Auckland, Sydney and beyond.
"The B757F has a payload capability of 32,000kgs and the aircraft moved nearly 24,000kgs of Sydney-bound general and perishable cargo on the first service" he says.
"The charter flight operated we operated last weekend was the first of many we hope to operate over the coming summer months," he says. "The aircraft will visit Christchurch at least weekly through December.
"It signals the start of the South Island's peak perishables export production season, with air freight in high demand for all primary producers from dairy, to fresh meat, to stone fruit and more," he says.
Christchurch Airport's Chief Aeronautical and Commercial Officer, Justin Watson, says in the year ended June 2017, more than 30,000 tonnes of air freight transited through the airport.
"Indications already suggest a bumper season of South Island exports," he says. "Our international airline partners, including Air New Zealand, Singapore Airlines, Qantas, China Southern Airlines, Emirates and Cathay Pacific, are also taking freight out every day to some of the world's leading hubs, such as Sydney, Hong Kong, Singapore, Dubai and Guangzhou.
"We anticipate a repeat of peak demand for high quality South Island produce for Chinese New Year, with extra flights this year taking cherries, chilled meat and live crayfish, among other things, to dinner tables across Asia."
| A Christchurch Airport release || December 4, 2017 |||
Nov 30, 2017 - Amazon's arrival in Australia brings with it opportunities for New Zealand firms writes Wellington consultant Hamish Conway in his company, Sell Global blog. Amazon is in 11 marketplaces around the world, with 123 fulfilment centres, and buying customers in 189 countries. The States is the biggest, with the UK able to fulfil to the other 26 European countries. They’re in Japan, and China but they’re having a tough time in China. AliBaba and the WeChat Group just dominate the Chinese market, with Amazon only having something like a 5% share of the market and consistently struggling there.
So, that’s all interesting, but obviously they are about to arrive in Australia. I was recently in Australia meeting with Fabio, from Amazon, who’s setting it up and running it, and they’re hiring now, looking towards a late November/December launch. Initially this is going to be a soft launch. They don’t want to over promise and under deliver around Christmas time.
Certainly a Q1 start is when it’s going to be happening. But, they have been building the catalogue over the next few months. They are getting their catalogue full, so when they do launch, this is a great opportunity for New Zealand companies that want to really stamp their mark on the Australian market, using Amazon as a channel.
Getting in early on Amazon, and getting on that page one should be the goal of all product selling companies in NZ. 86% of sales come from being on a page one search. Getting in first, and putting your stake in the ground and going, “right, I’m going to claim the peanut butter category on Amazon,” or whatever that category might be is going to be a huge advantage. Getting there and keeping it is far easier than coming in late and trying to claim that spot.
There are all sorts of categories that’ll just be open for business. According to a recent survey, one third of Australians who shop online, which is millions of people, they have said that they will switch to Amazon. They’ll definitely be looking at Amazon when it arrives. I suspect it would be more than that once it does launch, and they start to prove their worth. Amazon is going to really change the landscape. Not only in Australia, but in New Zealand as well. They look at Australia and New Zealand as one. New Zealanders will be buying from Australia.
Amazon has its own products that they sell, largely the tech products, like Alexa and Kindle. They will also buy products from you, like wholesale. So, if they like the look of your product, they’ll go we’ll buy that. They’ll pay you as little as possible, and take for as long as they can to pay you. But enough people do that because they just think that that’s the right way to go. Actually Amazon doesn’t really look after it that well, but they do it. If you look at some products on Amazon, it’ll say “Ships and sold by Amazon” even though it’s a brand you might be aware of. Or, you can be a third party seller, of which any third party sellers can go and set up their products on Amazon.
The products that are currently in America don’t necessarily end up in Australia, so it’s going to be a whole lot of new products that are Australia and New Zealand centric. People from the States or from Asia will be sending products down to Australia into the Australian warehouses there for purchase. People probably still could shop in America for awhile, but once the inventory and catalogue builds up over time, as more suppliers or third party sellers put product in, that’s when it’s going to become bigger and bigger, and a really great opportunity for New Zealand and Australian businesses.
What is the impact from that? If you are a retailer, a brick and mortar retailer, it’s absolutely a problem. If you are a brand owner it’s good news. Being on Amazon gives you so much free traffic, and free brand awareness. For small companies breaking into Australia, it has previously been quite a tough gig, going through the traditional approach and maybe trying to get into supermarkets or through big pharmacy chains, or whatever it might be with what you’re selling. Being on Amazon, people are searching and if you’re there then they’re seeing your brand.
If you control your brand, and the distribution of it, and you’ve got your own e-Commerce store as well, Amazon is going to be a major support for that. If you’ve got products that you don’t control the distribution of then you’re in trouble. The bottom line is that it’s a huge opportunity for any business, whether they’re small and just getting going, or bigger businesses, who will need to be there, and be protecting their brand on that platform. If you aren’t selling your products on Amazon, other companies, other people, other distributors might start selling it there instead.
Nov 30, 2017 - Zespri Shipping Manager Mike Knowles says Seatrade has decided to exit the Meridian shipping routes to Northern Europe and East Coast North America. CMA CGM has agreed to step in and provide uninterrupted service on these routes for New Zealand exporters. “We’ve partnered with Seatrade for many years and enjoyed excellent and loyal service from the company for which we thank them."
“While it’s sad that they won’t be operating in New Zealand anymore, we’re confident that CMA CGM will run an excellent service for the NZ kiwifruit industry in future. CMA CGM will provide a fixed-day weekly service with a best-in-class 32-day transit to Zeebrugge next season which is based around the purpose-built Seatrade colour class ships and water-cooled containers."
“This service is based on the FDD principle (Fast, Dedicated and Direct) and we’re confident that this service will be successful for both parties."
The announcement has been welcomed not only by the kiwifruit industry, but by many NZ perishable shippers as well who want to get their goods quickly into this key European market.
| A FreshPlaza release by Rachel Lynch || November 30, 2017 |||