Tuesday, 24 November 2015 14:05

Branding crucial in China

Written by  Pam Tipa
Keith Woodford, agri-food systems. Keith Woodford, agri-food systems.

Several years ago New Zealand had a 20% market share of infant formula in China and now that has dropped to under 10%, says Keith Woodford, agri-food systems, Lincoln University.

Just about every value-add product is currently losing market share in China.

If we don't collaborate for online marketing under a New Zealand Inc brand then we will remain in the commodity business, Woodford told a recent China Business Summit in Auckland.

"I am a proponent of online marketing of our food. We have one big company in NZ and we have lots of smaller companies," he said.

"Nearly all our smaller companies if they try to go it alone in China will fail. If they try to go the supermarket way they will get lost in that jungle. But if they try to go the online way by themselves they will get lost in that jungle too."

He cited over a million products on one popular site.

"There is only one way for NZ to capture value-add with its agri food in China and that is to capture an integrated NZ Inc approach," he said.

"Just talking clean and green isn't going to get you far but at least if we work together in an integrated NZ framework we have a chance to be on the same standing, the same level, as the big international companies we are trying to compete with.

"The priorities are food quality, food safety and, even more, food products.

"I have a vision for a NZ portal: it would have all NZ products there; any Chinese consumer would go onto that site and know they were all NZ guaranteed products with appropriate authentication.

"Their purchases would go into the online cart and within 24 hours would be delivered to their house."

Woodford said all the bits of the system are already there. But the overall integration will cost money to set up. One company he has spoken to was spending a billion dollars on its digital and IT system.

"We don't need to spend that much, but this is the billion dollar opportunity for NZ," Woodford said. "It is actually the multi-billion dollar opportunity and it is multi-billion for each and every year. The demographic we are interested in is essentially the same demographic that travels to NZ."

He said there would soon be 100 million Chinese in the high income bracket. To capture the value add with our agri food we must all work together.

"I would like to see this as a government-private partnership. I first did some work on this four and a half years ago for New Zealand Trade and Enterprise but it got lost somewhere in the bureaucracy because of changes," he said.

"I then thought maybe it can be led by private enterprise but most of the private firms have enough issues of their own rather than trying to pull the whole thing together.

"So I am back trying to talk to some senior Government ministers about whether they can help with the initial facilitation of this." It would be hard, but the opportunities are huge.

More like this

Strong wool eyes China

China looks set to play a key role in helping the New Zealand wool sector shift away from trading as a commodity supplier.

$10,500 for future ag leaders

The future of New Zealand’s agricultural sector grew a little brighter, with the South Island Agricultural Field Days (SIAFD) now accepting applications for its scholarships through Lincoln University, offering $10,500 to up to six exceptional students who are poised to become the next leaders in the primary industries.

NZ wine grapples with oversupply despite export gains

The large 2025 harvest will exacerbate the wine industry's "lingering" supply from recent vintages, New Zealand Winegrowers Chief Executive Philip Gregan told attendees at Grape Days events around the country in June.

Featured

'One more push' to eliminate FE

Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.

Winston Peters questions Fonterra divestment plan

Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.

National

Machinery & Products

New McHale terra drive axle option

Well-known for its Fusion baler wrapper combination, Irish manufacturer McHale has launched an interesting option at the recent Irish Ploughing…

Amazone unveils flagship spreader

With the price of fertiliser still significantly higher than 2024, there is an increased onus on ensuring its spread accurately at…

» Latest Print Issues Online

Milking It

Tough times

OPINION: Dairy industry players are also falling by the wayside as the economic downturn bites around the country.

MSA triumph

OPINION: Methane Science Accord, a farmer-led organisation advocating for zero tax on ruminant methane, will be quietly celebrating its first…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter