This is a best prospect industry sector for this country, which includes a market overview and trade data. All the material for this chapter was sourced from the Foreign Agriculture Service (FAS) online Global Agricultural Information Network (GAIN) service and the USDA’s Global Trade Atlas Account.

Overview
U.S. food exports to New Zealand for human consumption comprise of foods for sale to consumers through grocery retailers and ingredients for local manufacturers.  In 2018, U.S. consumer orientated food exports totaled US$342 million, overall agricultural exports hit an all-time high of half a billion dollars in 2018.  The lead U.S. food category in 2018 was edible food preparations (ingredients) (up 7.1% on 2017) followed by pet food (up 3.6% on 2017).
New Zealand’s economy is significantly dependent on agricultural and horticultural products exports.  An estimated 85-90% of New Zealand’s dairy, meat, fruit and vegetable production is exported.  

New Zealand’s food and beverage sector achieves annual growth through valued-added products. Food and beverage processing are the largest component of New Zealand’s manufacturing sector.  Imported food ingredients are regularly used in the manufacture of value-added products, such as lactose (the United States is a large exporter of lactose to New Zealand where it is used in the milk power production process), grains, nuts and vegetables. 
New Zealand food processors hold long-standing relationships with U.S. ingredient suppliers. In 2018, New Zealand imported approximately US$71 million worth of food ingredient products.

New Zealand’s demand for imports of U.S. consumer-oriented foods is increasing annually. Similar to other countries, New Zealand consumers demand to eat pure foods and are discerning about the nutritional value of foods. 

New Zealand is the 13th largest market for U.S. fresh stone fruits (peaches, plums and nectarines) and the 15th largest market for fresh oranges.  In 2017 commercial imports of turkey meat began.  Due to phytosanitary regulations, no other U.S. poultry meat (except for canned) can be imported into New Zealand.  Consumer-oriented foods are distributed through mainly New Zealand’s two supermarket chains:  Foodstuffs New Zealand which has an estimated 45% market share and Progressive Enterprises, a subsidiary of Woolworth Australia, which has a 43% share.

New Zealand food importers are price sensitive and affected by currency volatility. 

 

2015

2016

2017

2018

Total Local Production

3.06

2.73

2.89

3.30

Total Exports

2.55

2.27

2.41

2.60

Total Imports

2.91

2.94

3.24

3.40

Imports from the US

0.32

0.28

0.29

0.50

Total Market Size

3.42

3.39

3.72

3.90

Exchange Rates

1.43

1.44

1.40

1.51

Unit: USD Billions
Source:  Global Trade Atlas, Common Data Platform

Leading Sub-Sectors
U.S. food ingredient exports (i.e., dairy, meat, fruit and vegetables, etc.) are forecast to continue to increase. U.S. food ingredient products are viewed favorably in New Zealand, but receive strong competition from Australia, Asia and the EU.

Snacks, including dried fruits, nuts and health bars, cater to local consumer demand for good quality, healthy food options. Chips and confectionery items are equally as popular. Local consumers view U.S. snacks as high-quality.  In recent months, New Zealand has experienced growth in U.S. craft beer as the local market flavors and products become saturated.

Opportunities
The Foreign Agriculture Service in Wellington identifies the following categories:

Hops: hops for brewing craft beer are in high demand as New Zealand does not have sufficient domestic supplies.

Cereals: New Zealand has limited capacity to meet food processing industry demands. 

Turkey meat:  U.S. turkey meat recently gained market access to New Zealand market, thus, increasing awareness of the product would be beneficial. 

Craft beer:  The New Zealand market is looking towards the United States to provide new flavors and varieties as the local market reaches saturation.

Chocolate Crumb:  chocolate crumb is a popular raw ingredient that shows good potential.

Vegetables: counter-seasonal produce provides supplies to meet domestic demand.

Web Resources
Food and Beverage, Ministry of Business, Innovation and Employment: 
Foodworks Directory: 
Ministry of Primary Industries: 
New Zealand Food Technology: 

Prepared by the International Trade Administration. With its network of more than 100 offices across the United States and in more than 75 markets, the International Trade Administration of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.