In New Zealand, producer marketing boards and private companies promote exports. Funding for agricultural export promotion through the producer marketing boards was estimated at $347 million in 1998, an increase of $217.6 million from the previous year. The New Zealand government also funds promotion through Trade New Zealand (Trade NZ), the Trade Development Board. Funding for Trade NZ promotional activities was about $8 million in 1998. Total funding for New Zealand agricultural products is estimated at $355 million for 1998, compared to $222.8 million for the previous year.

Agricultural subsidies, foreign exchange controls, and import licensing were abolished over the last 10 years. Processing and marketing of agricultural production is still highly regulated, however. New Zealand’s market promotion organizations are the New Zealand Dairy Board, Trade NZ, the Game Industry Board, the Wine Institute of New Zealand, the Kiwifruit Marketing Board, the Wool Board, the Apple and Pear Marketing Board, the Meat Producers Board, and Wood New Zealand.

The New Zealand Dairy Board, a national statutory producer board, has the sole authority to export and market all dairy products from New Zealand. It sells directly through a world-wide marketing network of subsidiary and associate companies. The board’s regulatory environment is bounded by the Dairy Board Act of 1961. Most promotional activities of the NZDB are to support branded dairy products, targeted to consumers. Advertising is a major promotion cost.

In 1998, the Dairy Board began a restructuring from which New Zealand Milk and New Zealand Milk Products (NZMP) developed. New Zealand Milk focuses on international brand promotion, with well- known brands such as Anlene, Anchor and Mainland. NZMP seeks to build global businesses in specialty ingredients.

NZMP has subsidiaries in Australia, Latin America, Europe, the Middle East, North America, South East Asia, North Asia, and the CIS. The subsidiary companies spent $260 million, and marketing and distribution costs of New Zealand dairy products rose 30 percent on the previous season. Advertising and new product launches were the principal increases.

The New Zealand Trade Development Board (through Trade NZ) encourages more companies to export, helps them select and enter export markets, enhances their competitive, and facilitates investment. Trade NZ provides trade leads, market research, visits to trade fairs, appointments with key buyers, screening of potential distributors, and help with joint investment. Trade NZ also provides consulting work on market evaluations on a fee schedule. Trade NZ requires users to fund at least 50 percent of all projects. A comprehensive outreach program was undertaken in 1998/99 to alert the export community to opportunities.

The New Zealand Government allocates funds each year to the Board. In 1998 this amounted to approximately $30 million, of which $4.2 million was spent on marketing and promotion activities. The majority of the promotional expenditure is used for developing the higher value markets in Asia, especially given this area’s perceived opportunities and proximity. An estimated 7 percent of export promotion expenditure is destined for the United States.

One of Trade NZ’s brands is The New Zealand Way, a joint venture between Trade New Zealand and the New Zealand Tourism Board. The brand was taken internationally in 1997 and now accounts for 25 percent of New Zealand’s total foreign earnings. During 1998/99, Trade New Zealand continued to build the brand through dedicated marketing and public relations campaigns with Brand Partners, particularly in the United States, the United Kingdom and Australia. The brand was also integrated into all offshore promotional work. A food show booth, for example, must carry the New Zealand Way logo.

There is no New Zealand organization that promotes only fishery product exports, but Trade NZ does provide some funding to this sector. Trade NZ continued to work with specialized groups committed to developing and implementing market development strategies.

Trade NZ is also involved in the growing organic industry, as New Zealand has begun to position itself to take advantage of this sector’s growth. A group established by the Trade Board, Organic Products Exporters Group (OPEG), promotes New Zealand products and encourages local companies to invest in expanding capability to meet market demands. New Zealand currently exports many organic products such as vegetables, eggs, baby food and wine. OPEG’s key target markets are Japan, the United States and Europe. The long-term strategy is to explore opportunities in Malaysia, Singapore, Taiwan, and Korea.

The Game Industry Board (GIB) represents farmers, processors, and exporters, all of whom are represented on the board of directors. The Cervena Company, a wholly owned subsidiary of the GIB, is develops and implements one industry marketing strategy. The Cervena branding strategy focuses on promoting New Zealand venison in the United States. The GIB is funded by a levy on deer slaughtered and velvet sold. From this levy, the GIB provides Cervena Company with a minimum of 60 percent of the venison levy.

The GIB is currently developing a generic promotion program for Europe. During 1998, many promotional activities were funded and organized jointly between the board and individual exporters through the joint merchandising program. Total venison marketing expenditure increased 51 percent, including advertising and public relations, developing promotional materials and trade show participation.

The Wine Institute of New Zealand is a private organization representing the industry in a coordinated approach. It places great emphasis on export quality standards. The Institute coordinates generic export activities with New Zealand Wine Exporters. This organization has an expanding program to develop and diversify export markets. In the 1998/99 season, the generic promotion program was expanded to include over 36 promotions in nine markets: the United Kingdom, Australia, the United States, Japan, Netherlands, Canada, Germany, Sweden, and Ireland. The most important markets are the United Kingdom, Australia, and the United States.

Kiwifruit New Zealand, the operating name of the New Zealand Kiwifruit Marketing Board, provides industry governance. ZESPRI International Limited, a subsidiary of Kiwifruit New Zealand, is a grower-owned company focused on international marketing. It is the biggest marketer of kiwifruit in the world. ZESPRI International has a strategic network of offshore marketing offices. Europe is the major contributor in terms of increased revenue in these markets. North America increased its contribution to export earnings and has been identified as an opportunity for future market development.

The Wool Board was restructured In 1998, which resulted in the establishment of new subsidiary companies, each with a specific focus. The restructuring was designed to bring a more commercial approach to the Wool Board’s activities. The new structure is known as the New Zealand Wool Group. It collects levies from wool growers and provides funds to its members and four subsidiary companies.

It assists growers to improve production efficiency and product quality, and undertakes marketing and customer support activities for branded products. It also earns commercial revenue in overseas markets, which supplements farmers’ levies and ensures effective promotion of New Zealand wool. It creates opportunities for New Zealand Merino wool in international markets, through brand promotions. In 1998, generic advertising in all markets was phased out. After four years of promotion, the Wools of New Zealand brand had developed sufficient strength for brand partners to be willing to invest in joint promotions. Market export promotion expenditures in 1998 are estimated at $36 million.

The New Zealand Apple and Pear Marketing Board has the responsibility to purchase and export apples and pears, in accordance with the Apple and Pear Market Export Regulation of 1999. ENZA Ltd is authorized by the board to market apples and pears overseas. ENZA Ltd now takes possession of the fruit at shipment. The board’s marketing strategy over the years has tried to promote the ENZA brand and to remove price as the key factor in customers’ purchase decisions. One campaign used the Board’s association with Looney Tunes cartoons, to generate apple sales. The board’s expenditures on advertising and promotion for 1998 was $8 million, up from $5.3 million in 1997. The increased expenditure responded to increased world supplies, southern hemisphere competitors, South Africa’s deregulation, and the Asian economic crisis. ENZA also needed to restore its reputation for quality fruit after a disappointing 1997 season.

Meat New Zealand, or the New Zealand Meat Board, is a non-trading producer board. The Meat Board can levy per-head fees on farmers’ sheep, cattle and goat slaughter stock. It also receives financing from the return on investments in the meat industry and from other investment portfolios. The board’s main functions are marketing and promotion, research and development, trade advocacy, and access and quota administration. It is a statutory producer board under the Meat Board Act of 1997. The government’s main role is to set and monitor the regulatory environment in which the board operates.

All market development efforts are designed to increase demand for New Zealand beef and lamb. Promotional efforts are aimed at enhancing image, differentiating New Zealand from other suppliers, and building downstream market channel segments. Meat New Zealand works closely with industry representatives to establish markets and strategies. The key markets for mutton and lamb are the United Kingdom, France, Germany, Benelux, the United States, and the Middle East. Key markets for beef include the United States, Japan, Hong Kong, Singapore, Malaysia, Korea, Philippines and Taiwan. Meat New Zealand promotions include television advertising campaigns and sales material for butchers, retailers and wholesalers. The board also provides education resource kits on New Zealand and the meat industry, recipe cards and posters, media visits, and seminars. The New Zealand Meat Board has offices in Belgium, the United Kingdom, the United States, Korea, and Japan. The New Zealand Meat Board spent $10 million on promotion and marketing activities during the 1998 season.

Wood New Zealand is the newly established export marketing organization for the forestry sector. It has an estimated annual budget of $1.5 million. Wood New Zealand opened its first office in China in September 1999. The industry is marketing local pine as a substitute for China’s domestic woods. It also plans to open offices in the United States and Japan. The offices in target countries will provide market research, market intelligence, generic promotion, advertising, and media promotion.

Last modified: Monday, August 29, 2005