More investment and more innovative processed foods are going to be needed to double New Zealand food exports by 2025 according to a new report released earlier this week 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,” says Joyce.
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.”
Petfoods’ potential is also pointed to in the report.
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.
Designed to prompt discussion, 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.