New Zealand maize grain production - where is the future?

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.