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

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news