Report shows the way for Kiwi food exports

A report released today suggests New Zealand could double the value of its food exports, and offers insights into how this could be done, Minister for Economic development Gerry Brownlee says.

Moving to the centre: the future of the New Zealand food industry was commissioned from Coriolis Research by the Ministry of Economic Development and focuses on food exports to Australia.

It shows that New Zealand's exports of high-value processed food products to Australia are not just large at $877 million in 2009 (excluding wine), they are also growing rapidly.

"New Zealand is achieving success in Australia across a wide range of non-traditional foods and beverages; these are our growth stars and the foundation of future export growth to the world," Mr Brownlee said.

"The report is valuable for New Zealand food manufacturers looking to increase their export earnings.

"We know that New Zealand needs to sell more added-value food products, and these exports to Australia show it can be done.

"The government has already invested heavily in a food innovation network to help companies develop innovative, higher-value products."

The report identifies that there are major opportunities for New Zealand processed food exporters in Australia. 

"It is our closest market, culturally similar but with 22.5 million people, and of course low barriers through the CER agreement. 

"Processed foods companies can grow their sales in Australia and use it as a stepping stone to other markets."

Mr Brownlee said the report's high-level analysis would help individual firms decide where to focus their in-depth research efforts.

The report identifies a number of reasons why New Zealand can and should build its focus on processed foods, including growing global demand and New Zealand's strong history of food exports.

It focuses on four specific product areas: chocolate and confectionary, baked goods, frozen French fries, and infant formula.

"The maths is pretty simple - a kilo of infant formula is worth ten times the value of a kilo of milk powder - so we know which one New Zealand should be selling," Mr Brownlee said.

The report's title, "moving to the centre," is a reference to the central aisles of supermarkets where processed foods are stocked, rather than the walls where meat, milk, and fruit and vegetables are found.

The Coriolis report can be found at:

http://www.med.govt.nz/templates/MultipageDocumentTOC____45461.aspx