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China a tough challenge for New Zealand fruit exporters.
New Zealand
Wednesday 20 June 2007
New Zealand fruit and vegetable exporters face stiff challenges selling their products into China, according to a major Chinese logistics company.
Since 2002, the amount of New Zealand fruit entering the country had dropped due to the high Kiwi dollar which was slashing importers profit margins.
New Zealand produce - mainly apples and cherries - which even before the Kiwi's rise was selling at a premium price, was being squeezed by cheaper Chilean and locally grown produce.
If the NZ dollar dropped around 20% it would help, but the currency was not the only challenge New Zealand produce exporters were facing. Because of its relatively high price, New Zealand fruit was a niche top-end product, but there was currently a lack of outlets for premium produce.
The high price of New Zealand fruit on world markets also meant it was not reliably available in China, making it hard to establish a strong brand presence.
At the moment Jintao was selling about 5-10 containers of NZ produce a day, mostly from the Growers' Choice and Hinton groups. That was a tiny proportion of the market.
Since 2002, the amount of New Zealand fruit entering the country had dropped due to the high Kiwi dollar which was slashing importers profit margins.
New Zealand produce - mainly apples and cherries - which even before the Kiwi's rise was selling at a premium price, was being squeezed by cheaper Chilean and locally grown produce.
If the NZ dollar dropped around 20% it would help, but the currency was not the only challenge New Zealand produce exporters were facing. Because of its relatively high price, New Zealand fruit was a niche top-end product, but there was currently a lack of outlets for premium produce.
The high price of New Zealand fruit on world markets also meant it was not reliably available in China, making it hard to establish a strong brand presence.
At the moment Jintao was selling about 5-10 containers of NZ produce a day, mostly from the Growers' Choice and Hinton groups. That was a tiny proportion of the market.
