China No Longer Just A Commodity Story - Luxon
China remains New Zealand’s biggest market, taking $23 billion of our exports, but it’s no longer a commodity story, says Prime Minister Christopher Luxon.
Now is an important time to cement infant formula brands in China, says Pier Smulders, Alibaba’s business development director for New Zealand.
“There is a bit of a mini baby boom going on with the increasing relaxation of the one child policy,” he told the Infant Nutrition Council conference in Auckland.
“This is an important time to establish brand relationships and consumer relationships.”
Alibaba is the biggest e-commerce company in China and the largest retail platform in the world.
Huge numbers of customers are being reached through cross-border e-commerce (such as Alibaba) and the numbers will keep growing, Smulders says. Mother and Baby is one of the largest categories and that’s where infant formula products sit. Fortified milk powders fall into the closely related category of food.
Alibaba is strong in the categories that Chinese consumers want to buy through cross-border e-commerce.
There is a sophisticated border clearance payment and logistics system that is all integrated.
It is called ‘trade single window’, and products are moved from a bonded warehouse where they are picked and packed and cleared to enter China as a personal parcel delivered to an individual consumer.
Infant formula falls into a more sensitive category and is regulated more stringently than other categories.
Smulders says until cross-border e-commerce was formalised it was a very difficult situation for the Chinese Government to handle. Everything was coming in through the post, grey channels and personal carry. As Chinese consumers were demanding more imported foreign products, there was an unstoppable flow coming in and no regulation, no tax and no control.
“China has undergone a supply chain revolution if you look at cross-border e-commerce,” he says. “It has gone from personal carrier or postal to a sophisticated system now through cross-border e-commerce which goes through a bonded warehouse channel.”
Daigou and postal channels still exist. But with the bonded warehouse channel, traceability, quality control and the logistic and supply chains are much improved.
New Zealand dairy farmers are set to be the first in the world to receive access to a new digital physical milk pricing tool that enables them to fix the price for their physical milk.
State farmer Pāmu is opening its farm gates this summer in an effort to give the rural sector the opportunity to see how large-scale, multi-system farming is delivering productivity and profitability across New Zealand.
A five-year study has found that the cost of reducing emissions without technology may be significant and unsustainable for Northland dairy farmers.
DairyNZ says Waikato farmers need certainty on Plan Change 1, but they say that certainty must be matched with practical, workable rules and a clear transition that doesn't get ahead of the new resource management system currently under review.
While the Government has moved quickly to make commercial hauliers' lot easier during the current fuel crisis, they appear to be stuck in the creep box when it comes to the agricultural industry.
Waikato farmers have been told that the Government’s new planning system legislation and the region’s Plan Change 1 (PC1) “won’t mesh together very well”.
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