Food and beverage sector driving growth

New Zealand’s food and beverage industry is well positioned for substantial growth, with exports on track to double in value in the next 15 years to US$40 billion, according to reports released today.

Economic Development Minister Steven Joyce today released the 2014 edition of the Investors’ Guide to the New Zealand Food and Beverage Industry. The Investors Guide showcases the key factors driving New Zealand’s food exporting success: high-quality ingredients, disease-free status, comprehensive network of free trade agreements, world-leading business environment, and strong food science capability.

“The Investors Guide shows significant investment and acquisition activity which indicates a dynamic and growing industry, and we are seeing the results in export performance,” Mr Joyce says.

“Major capital investments have been made in the food and beverage industry in the last several years totalling NZ$2 billion, with an additional NZ$1.5 billion of assets changing hands.

“New Zealand’s food and beverage exports have grown at 11 per cent per annum for a decade and are now worth US$20 billion. Our export performance is improving relative to other temperate food exporting countries.

“Doubling exports in real terms in 15 years is a tall order, but all the research backed by the steady flow of business investment and growing demand for New Zealand products suggests it is achievable.”

The Food and Beverage Overview Report - also released today - complements the Investors Guide with profiles of the top 50 food and beverage companies operating in New Zealand. Collectively these generate revenues of $42 billion.

“It is encouraging to see the top 50 includes a number of fast-growing companies that export a diverse range of products, from nutritional products to baked goods and prepared meals,” Mr Joyce says.

The Food and Beverage Reports are the latest to be produced in the ongoing Food and Beverage Information Project. By highlighting opportunities in the industry, the project contributes to the Government’s Business Growth Agenda priorities of growing competitive businesses to create jobs and increase exports.

The reports are available from http://www.med.govt.nz/sectors-industries/food-beverage/information-project/

ENDS

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