Green Kiwis tap Thai market

Green Kiwis tap Thai market

from grass to glass: Cows graze at Fonterra, New Zealand's dominant milk processor and the world's largest dairy exporter. PHOTOS: Pathomkanok Padkuntod
from grass to glass: Cows graze at Fonterra, New Zealand's dominant milk processor and the world's largest dairy exporter. PHOTOS: Pathomkanok Padkuntod

How can a nation of only 4.5 million provide so much sustenance for so many people around the world? The colour green is the answer. New Zealand's national image of being a "green and clean" country is a major factor driving its massive export growth in countries including the Thai market. Thai demand for New Zealand's commodities has grown significantly over the past 10 years.

upbeat: Former trade commissioner Karen Campbell is optimistic about exports to Thailand.

These changes have been overseen by Karen Campbell, former trade commissioner for Thailand, Laos, Cambodia and Myanmar. In fact, Thailand moved from New Zealand's 10th largest export market in 2013 to the 7th in 2018 according to Ms Campbell, whose tenure lasted from in 2011 to March 2018.

Ms Campbell specifically credited the Closer Economic Partnership (CEP) with Thailand. Total trade between the two countries has jumped almost 150% since the CEP began in 2005.

New Zealand's most successful export sectors are milk and dairy products, representing 42% of total exports to Thailand, followed by fruit and nuts at 9%. Thai demand for New Zealand's dairy and dairy products has grown so significantly that in July 2017 Trade Minister Todd McClay, from the previous National Party government, visited Thailand to sign an agreement to increase the amount of New Zealand dairy products in the Thai market.

Fonterra, New Zealand's dominant milk processor and the world's largest dairy exporter, is upbeat about the prospects of double-digit growth in the well-established Thai dairy milk market, currently valued at more than 92 billion baht. However, the annual consumption of dairy is still relatively low at around 26 litres per capita compared to developed markets like New Zealand at 270 litres per capita, according to Euromonitor 2017.

As well as its key brands such as Anlene, Anchor and Anmum Materna, the company supplies butter, cheese and creams to more than 2,000 food and beverage establishments across Thailand.

Thai consumers are increasingly conscious about what goes in their mouths, and Fonterra Thailand boss Paul Richards believes that this gives his company an advantage.

"Increasingly consumers want to understand where their food comes from and our New Zealand provenance is our competitive advantage. New Zealand's temperate climate allows our cows to produce some of the best quality milk in the world. This natural grass-fed advantage, combined with our best practices across every step of our supply chain -- which we have full control of from grass to glass -- means consumers can be assured of the highest quality dairy products," Mr Richards said.

In line with its safety commitment, the company launched the first batch of Fonterra's Anmum paediatric range with electronic traceability this year in New Zealand. Mr Richards explained that by scanning the QR codes on each product pack, consumers can track and trace ingredients and products electronically throughout the supply and production chain, from the raw milk source on the farm right through to retailers who sell the product to consumers. Fonterra Thailand is planning to launch electronic traceability in Thailand in the coming year and across all its products by 2020. Thais will soon be able to judge for themselves how "clean and green" Fonterra products are.

The company recently introduced its latest Anmum formulation which is claimed to support the digestive system for expecting mothers and consistently launches new flavours for Anlene, such as UHT English Malt and Spring White Tea to capture Thai consumers' changing taste preferences.

Meanwhile, the value of New Zealand's fruit exports surged from NZ$1-2 million in 2007 to $60-65 million in 2017 as Thai retailers have grown more and more confident in New Zealand fruit commodities.

Surprisingly, Thai importers have shown strong interest in New Zealand avocados, according to Ms Campbell. Avocado exports have joined New Zealand's other fresh fruit exports such as apples, kiwi fruit and persimmons. Thailand is now the second largest destination for New Zealand persimmons.

"Thai retailers' increasingly high level of awareness of our clean and green image is a major reason for the growing demand for New Zealand fruits," Ms Campbell said.

Thailand is Yummy Fruit's biggest market in Asia.

five a day: Thailand is Yummy Fruit's biggest market in Asia.

Simon Renall of Yummy Fruit Co said the Thai market is very important for the New Zealand industry and Yummy Fruit Co in particular because Thailand is Yummy Fruit's biggest market in Asia. Over the past four years, Yummy Fruit has made a strong commitment to spend time in Thailand to observe its fruit at retail.

"We have been able to supply great new varieties to Thai people who seem eager and willing to try new things. With a growing upper and middle class, the future looks promising," Mr Renall said, adding that Yummy Fruit's great relationship at the wholesale level also plays a part.

The company sends at least eight varieties of apples to Thailand every year. The latest varieties are Early Queen, New Zealand Beauty, Genesi, SweeTango, Lemonade, Royal Gala, Granny Smith, New Zealand Queen, New Zealand Rose, Fuji, Ambrosia and Red Delicious.

Unlike its main business in New Zealand, which is to supply supermarket chains in the country all year round, Yummy Fruit is trying to develop itself as a niche player in the international market by looking for small, high-end chains where its brand and mix of intellectual property-controlled varieties can give its customers a point of difference.

This is also the case for Thailand where Yummy supplies its unique apples to premium stores such as Central Food Hall and Tops Supermarkets.

Sustainable green practices are very important to Yummy Fruit. The company, in fact, has positioned itself as a leader in this field. It claims to be one of the first to assist in the development and use of the Integrated Fruit Production which has led to significant reductions in the use of agrichemicals in orchards by monitoring pest and disease levels.

Annually, Yummy Fruit undergoes various Food Safety & Good Agricultural Practices programme Audits such as Global GAP and British Retail Consortium which hold its industry under high scrutiny, saying that running a businesses in a sustainable fashion is becoming more and more relevant to the consumer.

Mr Renall went on to praise all trade deals between the two countries which allow New Zealand's fruit exporters to gain access to markets amid challenges such as political tensions, rising costs and eroding opportunities elsewhere. Yummy Fruit, which is also New Zealand's largest grower of summer fruit, is hoping to introduce exciting summer fruits, especially peaches, nectarines and plums, to the Thai market. Continued trade negotiations between the two countries should help this.

New Zealand's fishing industry is another outstanding example of an industry with clean, green sustainable practices.

According to Ms Campbell, Thai retailers understand that New Zealand law requires catch permits for all of its fish stock to ensure their long-term sustainability while New Zealand marine farmers practice environmental sustainability to meet the growing demand for their country's seafood products.

A New Zealand success story is its green shell mussel industry.

New Zealand green shell mussel exports to Thailand have grown from 432 tonnes in 2010 to 2,600 metric tonnes for the 12 months to February 2018. Thailand is now the third largest market for New Zealand's green shell mussels in terms of volume and fifth biggest in terms of value for the industry, according to Adam Hicks, communications manager at Aquaculture New Zealand, the national industry representative body.

The strong growth of New Zealand mussels was fuelled by the fact that Thai people are natural mussel eaters, as New Zealand Kono seafood sales manager Roy Dawson has experienced on his trips to Bangkok. Mr Dawson was amazed by the fact that Thailand is the only place he has been to in the world that offers New Zealand mussel dishes as a mainstream offering.

In terms of sustainability, green shell mussels -- which are New Zealand's most iconic seafood -- are one of the most sustainable seafood products in the world, as rated by the Monterey Bay Seafood Watch Programme. Mr Hicks explained that green shell mussels -- which are a species unique to New Zealand -- have an extremely light impact on the environment.

"New Zealand green shell mussels are among the most sustainable seafood products in the world because they are filter feeders and they take all nutrients from the sea. All we add is water," Mr Hicks said, adding that domestic mussel farmers operate in accordance with world-best environmental management standards set by the A+ New Zealand sustainable aquaculture programme.

Sanford, New Zealand's largest producer of green shell mussels in New Zealand, has a 30% of the market share for frozen half shell mussels in Thailand. New Zealand mussel producers gained access to the Thai market for the first time in 2008.

Considering other key kiwi exports, Ms Campbell went on to praise the Thailand 4.0 policy, which opens the door for New Zealand's trade in services. New Zealand companies such as MetraWeather and T &G Global Company, the exporter of Jazz and Envy apples, are already enjoying the 4.0 policy, which aims to create an economy based on creativity, innovation and high-level services.

For example, New Zealand's MetraWeather has expanded in Thailand along with other Asean nations such as the Philippines and Vietnam to produce weather and environmental information on phenomena like earthquakes, volcanic activity, tsunamis and air quality.

In Thailand, MetraWeather teamed up with Bangkok-based company Raydant International to offer Channel 3, Thailand's leading free-to-air broadcaster, reliable and up-to-date weather and environmental data for Thailand.

Future opportunities for New Zealand exports to Thailand and the world will rest on the fact that New Zealand continues to create high value products which keep reminding consumers of the colour green.

flexing their mussels: Above, mussels are grown attached to ropes in clean open water with a good tidal flow. Left, a hauling rig lift laden with heavy mussel ropes in Pelorus Sound, home to many of Marlborough's mussel farms.

Do you like the content of this article?
COMMENT