Export market development
Overseas markets are New Zealand's best bet for the future of our industry, so our export market development work is crucial to achieving growth. However, winning access for our potatoes can take years, particularly for fresh potatoes, as can building up markets we currently have access to. Such work has paid off in the past; for example, in 2005 export earnings of fresh New Zealand potatoes to the Philippines were around $100,000 but by 2009 this had grown close to $1 million.
Access specific export information including compliance and regulations.
Each year Potatoes New Zealand's Export Market Development Group approves a programme of work to investigate and assist in the development of new markets and to open up access to new markets for fresh New Zealand table, processing and seed potatoes. The Group’s priorities this year include:
Market Development
Following the completion of a major multi-country evaluation in 2009, the Export Market Development Group identified Malaysia, Singapore, the United Arab Emirates and Saudi Arabia as the most promising markets for fresh table potato exports. Carried out by Shaun Slattery, our Export Market Development Coordinator, the project ranked each country by about a dozen demand and supply criteria to determine how good a market they might be for our potatoes. The project also looked at regulatory barriers, food safety requirements and accessibility such as shipping time and frequency of service.
In 2010 more detailed in-market research has been commissioned for these markets which will help identify any specific opportunities and enable market growth strategies to be developed. The group is also investigating the feasibility of attending trade shows to help raise the international profile of the New Zealand potato industry.
High Value Seed Export
We are currently working on identifying the viability of exporting our high-value seed potatoes to countries that have their own table potato growing industry, but cannot produce their own seed potatoes - particularly Asian countries, such as Indonesia, Vietnam and Thailand. At the moment, much of the seed potato they import comes from the Netherlands and the United Kingdom. We are carrying out research to determine what demand there might be for us to provide an alternative supply of fresh seed potatoes to these countries. We will also be assessing what the regulatory barriers, costs and viability might be of moving into these markets.
Market Access
Many countries have barriers which prevent the importation of fresh potatoes because of pest and disease concerns, or make entry particularly expensive and difficult to comply with. The Export Market Development Group is working to ensuring access compliance costs are kept to a minimum and also negotiates new access arrangements. The main access priorities for 2010 are:
Australia – Currently prohibits all fresh potato imports. The New Zealand industry has been seeking access for fresh potatoes for processing into crisps and fries since 2004. Australia began work on this request in 2010. The industry is confident that access negotiations will be concluded by the end of 2010.
Japan – New Zealand has requested access for potatoes for processing in secure facilities (e.g. French fries or potato crisps factories). Japan is still working through this request.
Korea – This access request has been ongoing for the past 16 years. Good progress was made on this request in 2010 but access still has not been obtained. Measures to manage the risk of potato cyst nematode have been the main point of contention in negotiations.
