More investment and more innovative processed foods will be needed to
double New Zealand food exports by 2025 according to a new report
released today by Economic Development Minister Steven Joyce.
The report, Driving Growth in the Processed Foods Sector, says
that doubling export sales in the food sector by 2025 will require an
export growth of 7.7 per cent to 9.3 per cent per annum for 15 years,
leading to approximately $30 billion in new exports.
“The report
says that doubling our foods exports by 2025 is achievable. New
Zealand’s food industry has seen significant growth over the last 16
years – outperforming a wide range of our competitors – but there are
still challenges to overcome if we are to reach our goal,” Mr Joyce
says.
The report suggests that with investment, the processed
foods industry can build on New Zealand’s existing competitive advantage
in food and agriculture, and growth can continue to be driven through
developing premium, innovative and niche products that are well-branded.
“New
Zealand has good food and beverage exports per capita but we need to
move beyond our traditional mix of meat and dairy. Processed value-added
foods, like infant formula, nutraceuticals and baked goods, have the
best potential for achieving the growth we need.”
The project is
part of the Government’s Business Growth Agenda, to build a more
productive and competitive economy. The Agenda sets an ambitious goal to
increase the ratio of exports to GDP from the current 30 per cent to 40
per cent of GDP by 2025.
The Driving Growth in the Processed Foods Sector report, by Coriolis Research, is
part of a suite of reports released under the Food & Beverage
Information Project – the most comprehensive analysis of New Zealand’s
food industry ever undertaken.
The full report is available at www.foodandbeverage.govt.nz.