| 13 |
Identify and communicate market opportunities |
| 13.1 |
NZTE should review and update every two years the market research and supporting data it holds on file on the top ten markets3 for New Zealand food and beverage exports. Any changes should be communicated to all known exporters operating in each market.
Profiles on promising developing markets4 should also be updated regularly, but less frequently.5
This recommendation will also address:
Rec 13.2 - Develop and implement an information-campaign to ensure all potential exporters are aware of the assistance offered by NZTE. |
Status: addressed through current work programmes.
MED's recent evaluation of NZTE's Information Services programmes has identified the need to develop a more strategic approach to the provision of market intelligence.
Work is underway, in combination with the review of NZTE's www.marketnewzealand.com website with an update of information provided for exporters. |
| 13.2 |
Develop and implement an information-campaign to ensure all potential exporters are aware of the assistance offered by NZTE. |
Status: addressed through current work programmes.
NZTE is currently undertaking two streams of promotional activity. The BIZ campaign promotes generic business assistance and an advert in this campaign has been developed which focuses on exporting. BIZ staff will refer appropriate export related enquiries to NZTE and the biz.org.nz website also includes details of NZTE services and links through to NZTE websites. A separate promotional campaign is underway for Export Year 07, which includes print, radio and on-line advertising. This campaign drives traffic to the Export Year website, which includes links to information on the relevant NZTE services.
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| 14 |
Expand in-market assistance |
| 14.1 |
Expand in-market support through to the supermarket shelf. This could include establishing in-market distribution and merchandising entities to service SMEs and emerging exporters. These entities would be charged with facilitating entry for selected products into selected global supermarkets and food service channels in the top ten markets for food and beverage. |
Status: addressed in current programmes.
NZTE currently carries out similar, channel-development, work in several markets. As an example NZTE launched a "shop within a shop" in two retail stores in Shanghai in May 2006 as part of a project which aims to create long-term business opportunities for New Zealand food and beverage exporters in China. NZTE is working in collaboration with a Chinese logistics service provider and distributor (Heng Tai Group) and a retail chain (Parkson) to provide a low cost format, which allows companies to keep control of costs, volumes, prices and distribution choices until they are ready to make a greater, long-term commitment to the market.
NZTE also carries out work to help companies become more export-ready. This work, although indirectly, also helps companies to perform better in export markets. |
| 14.2 |
Government should work with industry to establish food and beverage showcases in target markets particularly China, Japan, USA, UK, Korea, Germany, Taiwan and Canada. Government support would include the provision of funding and physical resources estimated at $3 million over three years. It is expected the private sector will contribute 15 per cent of the total cost of participating in each event. |
Key Initiative 3: Increasing the profile of New Zealand food and beverage firms internationally through expanded in-market assistance. |
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Status: subject to budget decisions
NZTE are seeking $3 million in 2007/2008, rising to $6 million in 2008/2009 and 2009/2010 and then reducing to $4 million in 2010/2011 to establish in-market initiatives in the high-growth markets of Asia and North America (particularly China, Japan and the United States) and to increase the proportion of Sector Projects funding dedicated to the food and beverage sector.
NZTE will develop and implement the in-market initiatives in consultation with the private sector, MED and agencies with offshore posts in the relevant markets, including the Ministry of Foreign Affairs and Trade, the Ministry of Education, and the Ministry of Research, Science and Technology.
This initiative also addresses recommendations: 14.3 & 17.2
Lead agency: NZTE
Consultation: Private sector, MED and agencies with offshore posts in relevant markets, including MFAT, MoE and MoRST |
| 14.3 |
Provide additional funding to support renewed and focussed participation by industry in a number of key European and Asian trade exhibitions on a consistent basis.
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Status: addressed by Key Initiative 3. |
| 15 |
Increase supports for exporters |
| 15.1 |
To build the capability of SMEs, NZTE to develop an audit and mentoring programme similar to the Better By Design programme. This would include qualifying SMEs undergoing a diagnostic review by a group of experienced business professionals with the objective of identifying strengths and weaknesses, strategic direction and advice on upgrading core competencies, with a view to facilitating improved export performance.
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Key Initiative 2: Increasing the business capability of exporters |
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NZTE will undertake a full evaluation of existing audit and mentoring programmes (benchmarked internationally) to identify synergies, strengths and gaps, with particular respect to the needs of the New Zealand food and beverage sector. The take-up rate of current programmes by food and beverage firms will also be addressed.
This analysis will inform decisions on whether the needs of food and beverage firms can be met by expanding or altering an existing programme or whether there is a case to develop a new one.
The taskforce recommendation refers specifically to export performance. However, NZTE's audit and mentoring programme would focus on improving the food and beverage sector's international connections in general. The level of exports, although key, is only one measure of a country's international connections.
The programme would seek to help companies to understand the benefits that stem from participating in international markets and to develop the expertise to capture these benefits.
A report outlining the outcome of the review and the proposed plan of action will be provided to the Minister for Industry and Regional Development by 30 July 2007.
Lead Agency: NZTE
Consultation: MED, DoL and TEC |
| 15.2 |
Government and industry to work together to encourage the formation of specialist exporters that provide consolidated services on behalf of SME's, such as consolidation of small consignments for export and negotiated freight rates.
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Status: This is a task for industry to initiate.
NZTE will assist with consolidated services as appropriate where there is industry demand.
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| 15.3 |
To reduce the cost structure for exporters, government to be encouraged to review export requirements to identify the benefit to the economy of not seeking full cost recovery, but instead apply an equitable sharing of cost between private and public sectors. |
Status: addressed through current work-programmes.
NZFSA has an ongoing programme of review of export requirements including:
- responding to overseas trends for clarity of function in risk assessment and risk management;
- providing a sharper focus around market access liberalisation and management of bilateral trading strategies; and
- creating a common approach to market access official assurances across all activities.
NZFSA is also undertaking a comprehensive review of cost recovery, including a review of who pays for particular functions and services the NZFSA provides. The results of the review will provide the basis for the NZFSA to report to government on the benefits or otherwise of not seeking full cost recovery from industry.
The government has recently commenced a review of the fisheries cost recovery framework (to be led by the Ministry of Fisheries). The first stage of the review will be for a government-industry joint working group to develop options for a new cost recovery framework. Ministers may then approve consultation on the recommended changes, to enable new regulations to be in place from 2008.
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| 15.4 |
Investigate whether there is evidence of a gap in the market in terms of equity investment and financing support for early stage business development in the food and beverage sector. If so develop policies to address it, including evaluating the applicability of a 21st century version of the Development Finance Corporation. |
Status: Monitoring.
The functioning of capital markets is the subject of on-going work programmes and advice.
A preliminary investigation identifies that there is no gap in terms of equity investment and finance support. However, this subject will continue to be examined.
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| 15.5 |
The taskforce supports the government's continued efforts to negotiate bilateral free-trade agreements and to progress trade liberalisation through the WTO Doha round.
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Status: This is a statement. No response required. |
| 15.6 |
NZFSA to be requested to increase the number of qualified NZFSA personnel in key export markets. |
Status: further work required. Subject to budget process.
NZFSA recognises that to enhance its market access capability it needs to increase its staff resources. Currently most market access initiatives (except some input into multilateral standards setting) are funded by industry. NZFSA recognises that some market access requirements fall within the public-good umbrella of Free Trade Agreements (FTAs) and closer economic partnerships. NZFSA expertise in this area resides with market access personnel who are expert in sanitary issues and in policy, in terms of an overarching contribution and coordination.
There is a case for such functions to be funded by the Crown. If Crown funds were to be applied to those functions existing industry funding could be reprioritised to provide additional FTE equivalent resources for new market access initiatives. Approval to reprioritise Crown funding is subject to government budget initiatives. |
| 15.7 |
That government commit to providing a more business friendly face to relevant NZ Government Regulatory Agencies via improved business liaison. |
Status: Monitoring
MAF, Biosecurity New Zealand (BNZ) and NZFSA are committed to building and maintaining effective relationships with the business community.
They have extensive business-liaison mechanisms and are currently engaged in a number of initiatives to improve the mechanisms.
For example, NZFSA recently started to publish regulatory impact and business cost compliance statements as part of its consultation process. The statements help NZFSA to better evaluate the impact of regulation on business.
In addition, MAF, BNZ and NZFSA are considering various regulatory-quality issues as part of their work on the Ministerial Review of Regulatory Frameworks.
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| 15.8 |
Provide accelerated income tax deductions on specified expenditure incurred to support export market development.
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Status: Addressed through the Market Development Export Scheme.
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| 16 |
Catalyse Collaboration |
| 16.1 |
The government, in consultation with industry, to evaluate the potential of a range of collaborative entities, including Joint Action Groups, industry owned development organisations similar to the Australian National Food Strategy Ltd and regional collaborative initiatives such as Food Hawkes Bay. |
Status: policy under development
[withheld under section 9(2)f(iv) of the Official Information Act].
Also addressed in part by Key Initiative 1.
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| 16.2 |
The government to provide security of funding over a five year period for at least five and up to seven significant food and beverage clusters (action alliances). Funding of up to $2 million a year is envisaged but the actual amount should be calibrated to what is required to deliver a step-change in cluster member capability and performance. |
[withheld under section 9(2)f(iv) of the Official Information Act] |
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[withheld under section 9(2)f(iv) of the Official Information Act].
[withheld under section 9(2)f(iv) of the Official Information Act].
[withheld under section 9(2)f(iv) of the Official Information Act].
Lead Agency: MED
Consultation: MoRST, NZTE, Treasury, TEC, DoL and MAF. |
| 16.3 |
That government continue to fund the development of sector specific strategies, similar to those developed by the aquaculture and pipfruit sectors, to assist in identifying the value proposition for the sector and enhancing sector co-operation and strategic planning; and
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Status: addressed by existing programmes.
Government particularly through NZTE continues to have the capacity to fund sector specific strategies similar to those developed by the aquaculture and pipfruit industries. Consideration of whether to do so will be on a case by case basis and would normally be determined using the criteria in the Sector Engagement Framework agreed in May 2004 as
Lead agency: MED
Other Agencies: MAF, NZTE, and DoL |
| 17 |
Develop the iconic "New Zealand" brand |
| 17.1 |
Establish a common branding theme with which New Zealand food and beverage producers can associate their products. In addition NZTE and Tourism New Zealand to work together to develop complementary publicity material where appropriate. |
Status: Addressed in part by current programmes.
The two major branding themes under which New Zealand is currently being promoted are "100% Pure New Zealand" for tourism and "New Zealand New Thinking" for trade and investment. As a small nation, New Zealand needs to ensure that it does not develop a complex array of sub-brands, which will dilute its international impact and a new tagline for Food and Beverage is not therefore recommended. NZTE's promotional material for the food and beverage sector draws heavily on photography of New Zealand's natural environment, which is in line with Tourism New Zealand's promotions and conveys clean, fresh taste sensations. The tagline being used alongside this imagery is ‘New Zealand New Thinking', reflecting the sector's focus on innovative value added foods as the future direction for the industry. NZTE and Tourism NZ work together through the New Zealand Way Limited to ensure that they develop complementary campaigns where possible, albeit that they are targeting very different markets.
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| 17.2 |
- Use international trade fairs and the showcase concept to promote New Zealand products overseas. |
Status: Addressed by key Initiative 3 (see recommendation 14.2)
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| 18 |
Develop New Zealand food culture |
| 18.1 |
Government to provide adequate funding over three years to:
- establish an annual New Zealand Food Week showcasing the New Zealand offering at home and overseas;
- work with regional stakeholders to improve and better co-ordinate regional food and beverage celebrations;
- build the image of the food and beverage sector;
- establish sales and distribution systems to enable regional products to be supplied to local and national retail outlets.
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Status: will not be implemented at this time. NZTE has determined that this falls outside of its core business.
In addition, there is concern that this event may crowd out current private sector investment, it has limited wider financial benefits for the economy, and the actual timing of such an event is extremely restricted due to a proliferation of similar types of events.
Currently there are food weeks held in Auckland, Wellington and Christchurch. As well as activities such as the Waikato Innovation Park, the NZ International Wine Show and numerous regional events, such as Harvest Hawkes Bay, the Wine Marlborough Festival, the Devonport Wine and Food Festival, and the Toast Martinborough Wine, Food and Music Festival.
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