Exporters eye S. American opportunities

New Zealand exporters say there are growing opportunities for business in Southeast Asia and South America.

Statistics New Zealand figures show that for the year ended June 2016, New Zealand exported $538 million worth of goods to South America and $4.9 billion worth to Southeast Asia.

That is small-scale compared to $15.6b in exports going to Northeast Asia, but trade with Asean member states is increasing. The volume of exports from New Zealand increased from $5.2b in 2012 to $6.1b in 2016.

Associate professor Manuka Henare, of the University of Auckland business school, who has travelled to Peru a number of times over the past three years, said many businesses did not consider the opportunities there.

But recently added flights direct from New Zealand had made the South American market easily accessible.

‘‘The quality of the tourist operations up there is such that New Zealand food and other products could fit the market very well.’’

He said the Trans-pacific Partnership Agreement (TPPA) would create more trade opportunities as tariffs were renegotiated.

The Government has formally ratified the TPPA and Prime Minister Bill English is set for trade and business talks with Japan’s Prime Minister, Shinzo Abe.

Japan is seen as key to a pared-down TPPA being agreed, now that the US has pulled out.

Anthony Self, chief financial officer at fruit-sorting technology firm Compac, agreed the South American market was often underestimated.

‘‘Things go a bit slower in terms of payment cycles so you have to be reasonably well funded but there are lots of opportunities.’’

A growing population would lead to the consumption of more fruit, and the need for more sorting technology, he said.

New Zealand Pump Company managing director Claire Jenkinson-johns said the Americas and Asia were growth markets for her firm, particularly as businesses developed their factories and put a growing emphasis on safety.

She said South American countries had a tendency to buy from the US and were influenced by Spain. But New Zealand companies had a good reputation internationally.

Language, culture and logistics could be a challenge in both markets but a trade mission this year to Southeast Asia would be a learning opportunity.

Exportnz is running two trade missions later this year. The first is to Thailand and Vietnam from August 5, and the second to Argentina and Chile from September 27.

‘‘The outstanding positive feedback we receive from participants is the true testament to the value they receive from these week-intensives,’’ said Catherine Lye of Exportnz.

"Things go a bit slower in terms of payment cycles so you have to be reasonably well funded but there are lots of opportunities." Anthony Self of Compac

Fairfax Media is the media partner of the Air New Zealand Cargo Exportnz Awards 2017