New Zealand maize grain production - where is the future?
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Authors
Date
2012
Type
Monograph
Abstract
The Maize grain industry in New Zealand has remained relatively static over the last 5 years in both the
human and animal food sectors.
The domestic market in New Zealand presents limited opportunities to expand in both the food and animal
sectors. In addition, New Zealand’s internal market which is 80% driven by demand from compound feed
manufacturers is driven solely by the cost of the products. Subsequently most of the feed manufacturers
look to displace maize grain as a key ingredient in their blends when they can source a cheaper alternative
grain or by-products such as Palm Kernel to substitute the volume of maize grain.
In order for the maize grain industry to thrive over the next 10 or more years New Zealand must drive
demand for New Zealand made products and look at how and where those products can be positioned into
the New Zealand animal feed industry and wider into the market external to New Zealand.
New Zealand competitive edge is its clean, green image and in particular its stance on non-GMO
stance. However this edge does not mean that exporting to most countries is viable. Some countries are
non-discernible about GMO and quality including Japan and China who purchase maize grain predominantly
on price.
There is an opportunity however to investigate Korea as a potential market. Koreans value the New
Zealand’s clean, green and healthy image and therefore also select GMO free grain in the food
production. Koreans also have a perception that New Zealander’s values are strongly aligned with the
values of their culture.
New Zealand needs to position itself as a supplier of GMO-free high end premium maize grain into this
market by establishing a sub-brand through a holding Company. This will ensure that quality standards are
met by growers adhering to strict specifications and that the New Zealand brand is safe guarded.
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