NZ exports to EU surge by $3b under free trade deal, says Government
New Zealand exports to the European Union have surged by $3 billion in two years under the New Zealand-European Union Free Trade Agreement.
Aided by strong harvest volumes, mānuka honey exporters have recorded a surge in European demand as the removal of tariffs aligns with a sliding NZ dollar, reducing the cost of Kiwi imports by around 8% against the Euro compared to the same time last year.
Driven by growing interest from German consumers for Kiwi mānuka honey, sales to the EU have risen dramatically in recent years reaching $60 million last year, or 12% of the $500m export market.
Industry experts say the 2023 season is expected to be strong, with high moisture levels at the base of the mānuka trees and La Nina weather patterns set to contribute to elevated nectar flows over the coming months.
Additionally, a 40% drop in hive numbers around the country is providing more choice of placement locations for Kiwi apiarists and a higher quality export product.
“Too many beehives placed in these areas targeting mānuka overstocked the area because there’s only so much nectar, [with] yields per hive decreasing by a considerable amount,” says Naki Honey executive Brett Mascull.
“Because of the lesser amount of beehives, you can expect really strong yields per beehive for mānuka honey.”
Naki Honey global market manager Derek Burchell-Burger says the response from the EU importers following the removal of import tariffs was immediate, contributing to an annual sales growth of over 15%.
“Despite consumer confidence being impacted by the war in Ukraine the pandemic has helped boost consumer interest in the wellness features of the product, with premium mānuka honey retailing for up to $800 per kg in Europe and landing in Europe for 27% less cost than a year ago.”
He says there is growing international recognition of the benefits of mānuka honey and harvest volumes are up substantially.
This has allowed us to increase our inventory to over 300 tonnes.”
Burchell-Burger adds that the falling dollar is helping to secure new wholesale accounts throughout the EU, offsetting the impact of war and inflation on spending in that market and resulting in exports growing.
Naki Honey’s distribution model in European markets operates differently to those in Asia where they tend to use established distribution partners with local networks.
In EU countries like Germany and Sweden the product is more likely to be sold through pharmacies, supermarkets and naturopathic practitioners necessitating the development of relationships at retail level.
“Even prior to the pandemic, European consumers had a high awareness of the medicinal aspects of mānuka honey,” says Burchell- Burger.
While Germany is the largest EU importer of honey from non-EU countries and second largest honey importer worldwide, France is second in the EU (fifth worldwide) with almost $1bn of the product consumed annually.
Naki Honey is currently looking to France as the next untapped market for mānuka honey. Sales to other European countries including Germany, The Czech Republic, and The Netherlands have also expanded recently.
