NZ now top exporter of food to China
AUCKLAND: New Zealand has overtaken Australia and the United States as the number one exporter of food to China, a report says.
The report, from the China Chamber of Commerce for Import and Export of Foodstuffs, said New Zealand’s total food exports to China in 2018 were worth US$6.4 billion ($NZ9.65 billion), of which dairy accounted for 62%.
In 2017, food imports from New Zealand ranked third behind the US and Australia.
The latest import results showed that in 2018 China imported food from 185 countries and regions valued at $US73.6 billion, up 19.3% on the previous year.
The report said food imports from Chile grew the fastest, having yearonyear growth of 50.2%.
Fonterra said the data confirmed the imported food industry had gained impetus in China.
‘‘We are certainly seeing the benefits of this with the report showing that New Zealand dairy imports into China in 2018 grew by 15% to $US4 billion,’’ vice president greater china commercial Paul Washer said.
Mr Washer said there was strong inmarket demand from customers who were keen to promote the fact that their product used protein ingredients from the milk of grassfed New Zealand cows.
‘‘Customers believe this is an important point of difference for their consumers and their investors,’’ Mr Washer said in a statement.
Fonterra chairman John Monaghan said in last year’s annual report that the coop would ‘‘champion’’ New Zealandsourced milk.
‘‘By championing it, we believe people will continue to seek out and pay a premium for products backed by our unique provenance story — our coop heritage, grassfed New Zealand milk, backed by ethical and sustainable farming practices,’’ he said.
Mr Monaghan said the coop would prioritise New Zealand milk, complemented by milk components sourced offshore only when required.
As a result, it would start to exit its offshore milk pools.
Fonterra’s lossmaking China Farms division — which it last year wrote down by $203 million — is under review.
The latest data from Stats NZ showed dairy exports surged late last year.
In November, milk powder exports reached $1.1 billion — their highest value for a November month since dairy exports peaked in 2013.
For the year to June 2019, China was New Zealand’s biggest trading partner, taking $18.95 billion worth of goods.
Twoway trade with China came to $32.2 billion in that year.
The second biggest partner was Australia, which took $14.07 billion in exports, and represented $27.09 billion in twoway trade.