Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Aussie parochialism knobbles kiwi suppliers, Coles says

Aussie parochialism knobbles kiwi suppliers, Coles says

By Paul McBeth

Nov. 19 (BusinessDesk) - New Zealand food exporters will struggle to crack one of Australia's biggest supermarket chains unless they do something different as parochial Australian consumers demand locally-made items lining their grocery aisles.

Supermarket chain Coles, one of the major two players across the Tasman, won't stock kiwi products if they're indistinguishable from Australian-sourced suppliers, the retailer’s general manager of meat, dairy and deli, Allister Watson, told New Zealand manufacturers and suppliers last week.

"The opportunity for New Zealand companies is to come to Australia and talk to Coles about what do they do differently," Watson said. If New Zealand firms come with undifferentiated products, "you may as well stay at home."

Watson, an ex-pat New Zealander, was speaking at the Food and Grocery Council annual conference in Melbourne on Friday, in a presentation titled 'Growing your business with Coles'. The FGC represents the interests of New Zealand grocery retailers, suppliers and firms linked with the supply chain.

Australian consumers want to back locally-made products, which feeds into their buying decisions and sets a higher threshold for New Zealand products, Watson said.

Where New Zealand suppliers can compete with their Australian rivals is in taking better and more inventive products across the Ditch, he said.

"There's a lack of innovation in a lot of categories in Australia - there's much more innovation in New Zealand which I believe could come over," Watson said. "If you have something new and unique, something compelling, then certainly, we're all ears."

That means New Zealand companies will have to latch on to their competitive advantages, which include being able to manufacture products 25 percent cheaper than in Australia due to the exchange rate and cheaper labour costs, he said.

The FGC used the annual meeting to announce a new programme to help its members tap international export markets.

Board member Andrew Smith will head up a new council initiative looking at ways the lobby group can leverage its membership to make it easier for them to reach international markets.

"In the short-term, we'll look at reducing barriers to entry for FGC companies to get into export markets," Smith said.

Michelle Templar, New Zealand Trade & Enterprise regional director Australia Pacific, told the conference exporters couldn't just simply turn up across the Tasman and expect sales growth.

"The challenge is not about whether your product's unique, it's who will buy it and how to get to that person consistently," Templar said.

The FGC's increasing focus on ramping up export numbers for its membership comes as the government looks to triple food and beverage exports to some $65 billion by 2025.

The aspiration seeks to reach that target by not only increasing the volume of products made, but also by adding to the value of the goods produced.

Disclaimer: Paul McBeth travelled to Melbourne courtesy of the FGC, which covered his airfares and accommodation.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news