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International Resources: Global Market Profile: New Zealand

New Zealand

As part of its commitment to providing its members with market analysis and insight, PMA has compiled the following information about New Zealand from the New Zealand Ministry of Agriculture and Forestry and Attaché Reports submitted by the U.S. Department of Agriculture’s Foreign Agricultural Service, as well as the CIA World Factbook, embassy sites, and business etiquette reference guides.

Fresh Fruit, Vegetable, and Flower Market
Consumer Trends
Entering the New Zealand Market
Trade Agreements
Food Standards and Regulations
Business Protocol
Export Business Reminders
Government Resources and related links

Fresh Fruit, Vegetable, and Flower Market

Fruit and Vegetable Market

In 2006, New Zealand exported fruits, vegetables, and flowers to 114 countries around the world. Its position in the southern hemisphere enables New Zealand to supply northern hemisphere countries with fresh produce during counter seasons. The main markets for New Zealand fruit and vegetables are the European Union, Japan, the United States, and Australia. Kiwifruit accounts for 30% of horticultural exports, and apples represent 14%. The European Union and Japan are the two dominant markets for New Zealand kiwifruit, but exports to East Asian markets (particularly to South Korea) are growing. Other fruit commodities for export include citrus fruits, grapes, avocados and pears (?).

Popular vegetable exports are onions and squash, which account for 38% and 27% of fresh vegetable exports. Capsicum exports have recently increased. Japan is the main market for fresh vegetables. Other markets are the European Union, Australia, and the United States.

Australia is the largest supplier of agricultural products to New Zealand and in 2006 had a 47% market share; the United States and Malaysia are the second and third biggest suppliers to New Zealand, respectively.

Fresh Flower Market

New Zealand has a clean, ideal environment for growing flowers. The domestic market for cut flowers is estimated at US$60 million. The number one crop exported is the cymbidium orchid. Other major exports include calla lilies, sandersonia, hydrangeas, proteaceae, and neriones. Japan is the main market for New Zealand flowers, particularly calla lilies.

All fresh cut flowers and foliage entering New Zealand must meet the phytosanitary requirements addressed in the Import Health Standard for fresh cut flowers and foliage (73 Kb).

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Consumer Trends

New Zealand has a population of about 4.2 million people. The ethnic makeup of the country continues to change. Almost 68% of the population is of European descent. The Maori group, or native New Zealanders, account for just under 15% of the population. The New Zealand retail market is well developed.

There is a trend toward convenience foods, but consumers are also increasingly more health conscious and prefer natural and fresh foods. There is an increasing demand for organic products. There is a rising consumption of vegetables and fresh fruit while the consumption of red meat and dairy products is declining; there is a trend towards eating more meatless meals. Consumers also look for value-for-money in a product, and over 20% of New Zealanders are “bargain hunters” who seek bargains and will shop at the stores with the lowest prices. The country is a progressively more multicultural society, with ethnic foods such as Asian, Mexican, Turkish, and Indian increasing in popularity. Private label products are still increasing in the supermarket industry.

Consumers are generally cautious when buying Genetically Modified foods and have been reticent to purchase those foods when the GM debate was visible in recent years. While few New Zealanders check the ingredients list of products for the present of GMOs, any GM food that receives negative press is likely to suffer in sales.

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Entering the New Zealand Market

It is helpful for exporters to work with agents, distributors, or import brokers who can aim for food category/merchandise managers at supermarket chains and major wholesalers. About 90% of all imported food products to New Zealand are purchased and distributed by importers, agents, or distributors. Food trade shows are a popular promotional venue. In-store promotions for products are also helpful for exporters. Television is a good channel for advertising; more than 95% of the population in New Zealand has a television set, and almost 60% of households carry multiple sets. Magazine publications and the internet are also good advertising channels.

Because the average consumer in New Zealand is price conscious, marketing and promotion strategies such as price reductions are great methods of attracting buyers. A survey by AC Nielsen concluded that price reductions resulted in 90% of consumers buying a product; extra quantities for the same price influenced 58% of consumers to buy.

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Trade Agreements

New Zealand has trade agreements with the following countries and organizations:

China (New Zealand-China Free Trade Agreement)
Trans-Pacific Strategic Economic Partnership (Trans-Pacific SEP)
Thailand (New Zealand and Thailand Closer Economic Partnership)
Singapore (New Zealand and Singapore Closer Economic Partnership)
Australia (Australia and New Zealand Closer Economic Relations)

Agreements under negotiation include:

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Food Standards and Regulations

The Food Standards Code (note: link to http://www.foodstandards.govt.nz/thecode/foodstandardscode.cfm) applies to New Zealand and Australia and was implemented in 2002. The code details food standards, import regulations, and labeling requirements.

For a list of regulations and news regarding imported fresh fruit and vegetable commodities, read here:

In 2001 labeling requirements of Genetically Modified Foods was implemented.

Food sold in New Zealand must be labeled appropriately in agreement with the Food Standards Code. The following information is required of labels:

The name of the food
Lot identification
Name and address
Mandatory warning statements, advisory statements, declarations for certain substances
Mandatory declaration of certain ingredients/substances
Ingredient list
Food additives
Date marking (the majority of packaged foods with a shelf life under two years require one of the following date markts:

“Use By” dates, relating to food safety
“Best Before” dates, relating to quality

Directions for use, storage
Nutrition Information Panel

Food Standards Australia New Zealand (FSANZ)

108 The Terrace

Wellington 6036

New Zealand

Tel: 64-4-978-5631

Fax: 64-4-473-9855

http://www.foodstandards.govt.nz

New Zealand Food Safety Authority (NZFSA)

68-86 Jervois Quay

PO Box 2835

Wellington

NEW ZEALAND

Phone: +64 4 463 2500

Fax: +64 4 463 2501

http://www.nzfsa.govt.nz

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Business Protocol

The typical greeting of New Zealanders is a handshake and a smile. Maoris, however, have distinct protocol for greeting and saying goodbye to visitors. If the business dealings are with a tribal group, the welcome is practiced through a process called “Powhiri”.
A Powhiri can last between 30 minutes to 2-3 hours. During this time, the visitors are expected to have at least one speaker reply to the Maori speeches that are made. The visiting speaker should prepare an opening speech in the Maori language. It is imperative that he or she uses correct pronunciation and does not self-promote or speak about the purpose of the business visit; instead the speech should show respect to the place of the greeting and to the people.
Although New Zealanders move to using first names quickly, it is better to address New Zealanders by their honorific titles and surnames until they move to a more familiar level.
New Zealanders may be rather reserved, especially with strangers. Once they develop a personal relationship, however, they are friendly and social. Do not appear too forward or overly friendly at first.
Appointments are necessary, for the most part. They should be made at least two weeks in advance, by telephone, fax, or email. It is fairly easy to schedule an appointment with senior level managers if the meeting is planned far in advance.
Businesses are usually open Monday through Friday between 8.30am-5.00pm. Some businesses may be open on Saturday until mid-afternoon.
Avoid scheduling meetings in December and January, which are the main months for summer vacation.
Arrive on time or even a few minutes early to a meeting. If you do not arrive promptly, you may be seen as unreliable or even disrespectful.
There is a brief amount of small talk before business is discussed.
When giving a presentation, do not make exaggerated claims or use hyperbole. Avoid unrealistic proposals and high-pressure sales tactics. Present with facts and figures; feelings and emotions are not important in the business atmosphere.
Give a few feet of personal space and maintain good eye contact.
Begin negotiations with a realistic figure. This is not a bargaining culture, and New Zealanders do not expect to argue over a price.
Kiwis want value for their money.
Be direct. New Zealanders like brevity and are not impressed by unnecessary details.
If invited to a Kiwi’s home, bring a small gift such as flowers, chocolates, or a book about your home country. Gifts are opened when received.
Table manners are generally casual, but more formal occasions require stricter protocol.
You should wait to be told where to sit.
Table manners are Continental—the fork is held in the left hand and the knife in the right. American-style manners (where the fork is in the right hand and the knife is in the left) will not be frowned upon, however.
When you are finished eating, place your knife and fork parallel on your plate, with the handles facing to the right.
When dining in a Maori home, do not eat until the food has been blessed or an acknowledgement is said by an elder of the home.
Try to sit where the people from the home can sit among you and get to know you during the meal.
Generally, the younger people of a home will serve and the older people will work in the kitchen. It is appropriate to publicly and formally thank them near the end of the meal before leaving the dining room. Following this, the visitors may be asked to sing; singing a song from your home country will demonstrate respect and thanks.

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Export Business Reminders

Use metric terms.
Ensure that all sales documentation is correct.
Be patient regarding requests for documentation, ingredients lists, production process, and quality assurance and respond to such requests with diligence and in a timely fashion.
Use letters of credit to reduce risk.
Hedge export values with your bank if you are concerned about exchange rate risk.
Set up wire transfers for payments.

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International Resources: Global Market Profile: New Zealand

Table of Contents

Fresh Fruit, Vegetable, and Flower Market

Consumer Trends

Entering the New Zealand Market

Trade Agreements

Food Standards and Regulations

Business Protocol

Export Business Reminders

Related Links and Government Resources