New Zealand’s horticultural products do have a presence in China, such as kiwifruit and apples, but there are more opportunities for New Zealand within China’s horticulture sector. However this will not be in the commodity sector where the local cost of production is much lower than in New Zealand. The Chinese horticulture advantage comes from relatively low labour costs combined with modern technologies. This creates a different situation from dairy and meat where New Zealand’s competitive advantage does extend into commodity products and markets.
In contrast, a competitive advantage for New Zealand’s horticultural products in China requires a branding focus aimed at top-end markets, with an associated clean green story which translates as meaning safe food. Phytosanitary challenges for some crops still need to be sorted out at a government level. As well as fresh produce, the opportunities can include fruit juices and dried fruit. There may also be opportunities, under strict licensing and quality control, of patented and trade-marked New Zealand-bred varieties.[Show full abstract]
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