New Zealand, apple producers trust the production of a premium product to try consumers with the increase of money spent in Vietnam.
Photo: SUSAN MURRAY/RNZ
New Zealand Apple exporters are trying to capitalize the increasingly richer Vietnamese consumer while elbowing global competition.
As the New Zealand Apple harvest this season is sent to their international markets, exporters are striving to benefit from their relationship with the Vietnam Socialist Republic, such as “Friends” and business partners.
Vietnam is now the fastest growing economy in Southeast Asia, and the two -way trade with New Zealand is valued at $ 2.68 billion after growing 40 % in the last five years.
Horticulate imports and exports between the two countries were widely complementary due to weather conditions.
Last year, New Zealand’s fruit companies generated $ 172 million in Vietnam exports to apples, then kiwifruit and cherry, according to data from the Ministry of Primary Industries.
Hawke’s Hawke Apple, owned by Scales Corporation, exported about a quarter of the country’s $ 932 million apple export trade each year each year.
Sales and marketing head, Ben McLeod said Vietnam’s economic growth was phenomenal.
“Many people say that Vietnam is like the new porcelain just 10 years ago,” said McLeod.
“He saw rapid growth in the last 10 to 15 years. I came from what was a country of poor income for low to a lower and medium -sized country.
“And so we saw a real increase in the demand for goods in New Zealand because they can afford it now.”
McLeod said that several free trade agreements between New Zealand and Vietnam put the country in a good position with other rival fruit markets, namely the United States.
“Free trade agreements are important to try to help us get some leverage where we can, because we still need to compete. We have to compete with people like Chile and South Africa, particularly in the southern hemisphere window.
“And then a little overlapping of the northern hemisphere when there is a little fruit from the United States still floating.
“So we have to compete on the international scenario. And market access is everything to us, right?”
Nelson Apple Heartland Fruit exporter sent his first fruit container to Vietnam in 2012 under his Luv’ya brand.
Since then, their apple exports to Vietnam have risen to more than 100 containers in 2024, to $ 4.5 million.
Heartland Fruit’s sales and marketing manager, Brendon Osborn, said the Vietnam population was becoming increasingly rich, marked by the rise of large locally targeted ownership of medium and high-income buyers.
“It became very competitive and I think it’s because there is only a huge influx of apples in this market,” said Osborn.
“I think we are trying to differentiate ourselves from the rest, providing the varieties of commercial brands, seeking the premium import segment, so that the quality has to be worthy. And if something have become more demanding in the last two years of quality.”
Osborn said that fruit production in other southern hemisphere markets is generally cheaper than in New Zealand.
The company owned by the sector prevar, in Hawke’s Bay, was created to develop and market apple and pear varieties for licensed producers.
Prevary’s chief executive, Tony Martin – former Commerce of Commerce of New Zealand and Enterprise Commerce Commissioner and Consul General for Vietnam – said there was still room for apple exports to grow even more in the market of 100 million people.
But he said companies would need to double investments in marketing, fruit quality and maintain contacts in the market.
“It’s very, very competitive,” said Martin.
“New Zealand is not a scale producer. We are successful in quality and premium products, so we cannot compete in volume, but we can compete with quality.
“Therefore, New Zealand needs to remain focused on the prize and must remain focused on innovation and do things that separate us from other competing countries.”
Mr. Apple’s Ben McLeod echoed Martin and said the companies had to continue telling the unique story of New Zealand.
“We have to continue piloting the high flag and we need to remain optimistic and positive,” he said.
“We have the best harvest we have seen since 2018 and we need to continue promoting and selling the dream to our customers on the coast that we are here in the long run.”
Another competitor, the Global T&G fresh product giant, benefited from a trade agreement to expand the distribution of its apples to Vietnam during the diplomatic visit led by the first -minister Christopher Luxon in late February.
Also signed, it was a comprehensive strategic partnership with the Republic, making New Zealand one of 10 countries to maintain high level partnership with Vietnam.
Having just returned to Aotearoa from the visit to Vietnam, led by Prime Minister Christopher Luxon, in late February, New Zealand’s new Minister of State for Trade and Investment, Nicola Grigg told Parliament New Zealand that he was well positioned to capitalize on the growing demand of high-value food and drinks.
“As Vietnam gets richer, Vietnamites want to buy high quality products from around the world and, of course, we have some of the best food and beverage producers and innovative companies,” said Grigg.
“The more we negotiate with the world, the more we increase our economy, which translates into the more jobs, the higher income and the more money in the back of the New Zealand daily life.”
Vietnam’s economy has grown about five percent each year for over two decades.
Agriculture was important to Vietnam, representing about 12 % of its GDP and employing about 27 % of the workforce – but also for New Zealand.
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