A sweet chart (or a worrying one depending on your strategy) from Stats NZ showing US ascendance as a major trading partner. Now NZ's 2nd biggest, edging out Australia. This chart is for beef but illustrates the one-market dependency that many NZ exporters face.
The volume of New Zealand's beef exports to China is declining, with an even steeper drop in prices. According to the Meat Industry Association, beef exports to China have seen volume down 27% to 16,081 tonnes and value down 44% to $88 million.
China's food self-sufficiency ratio decreased from 93.6% to 65.8% between 2000 and 2020, benefiting New Zealand significantly. However, this situation is expected to shift due to economic and political factors. Xi Jinping's goal is to ensure food security, improve agricultural standards, and boost rural progress. As China's economic expansion stabilizes, exporters from New Zealand, who heavily depend on this market, may face reduced volumes and profit margins.
One could argue that now is the opportune moment for food and beverage exporters from New Zealand to enhance the value of their products and create strong brand identities that resonate with Chinese consumers.
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