Guy is just back from Thailand where he and the Prime Minister and representatives of 23 businesses, mainly food and beverage, went looking to expand exports.
Guy launched a big promotion of New Zealand products in a large supermarket in Bangkok. He was amazed by the freshness and quality of the products, showing New Zealand exporters are adding a lot of value.
“The feedback from our ambassador in Bangkok is that the promotion has been hugely successful. The reaction from consumers is they want to consume more New Zealand products because they understand our food safety systems are world leading and [the products high] quality and fresh.”
But there are problems in developing the Thai market: a 19% duty on our products, though this is dropping 3% each year and will cease by 2020; and a cap on the volume of products, especially beef, of which we sell about 800 tonnes annually to Thailand. Once the cap is reached a 50% tariff applies.
“The beef and dairy industry people on the trip told us we are hitting the cap in the first couple of months [each year],” Guy says. “The consumers want more of our dairy and meat products so we’ve asked their prime minister if there is any way to adjust the caps, and they are seriously considering our request. This is great because it is hard as an exporter to get any continuity of product if we are only in the market for a few months.”
At least 24 million tourists visit Thailand presenting opportunities for New Zealand to sell products to the hotel and restaurant trade to feed visitors, Guy says. Thailand has 67 million people, 60% under 35 years, highly educated and growing wealthier.
