Consulate Report - New Zealand
Consulate Report - New Zealand Kia Ora CANZBA Members,
Eighteen months on from the first impacts of the COVID-19 pandemic, it finally feels like there might be light at the end of the tunnel. With case numbers down across Canada and increasing vaccination rates, we may just get a summer more like what we are used to.
On the economic front, there is still a lot of work to do to get our Canadian, Australian and New Zealand businesses back up a running. Sectors like tourism and international education are still a long way off from recovery as they depend on boarders opening.
Depending on what sector businesses have been targeting, challenges have looked vastly different. For example, New Zealand manufacturing companies that sell B2B have relied on the traditional sales model of face-to-face selling. Those companies have had to figure out how to continue to sell and keep revenues up without traveling abroad.
It has also been a challenge getting goods to market due to uneven cargo movement and congestion at ports. This has led to both costs and shipping times increasing. Thankfully, Air Canada’s weekly service between Australia, New Zealand, Vancouver and Toronto, which has been operating the entire time during the pandemic, has helped many Canadian, New Zealand and Australian businesses get their goods to where they need to be.
Overall New Zealand exports to Canada have fallen, from $1.2 billion (to year end 2019) to $1.09 billion (to year end 2020). As expected, tourism and transportation services have contributed most to this fall. However, many New Zealand to Canada exporters have found success despite the global disruption.
On the consumer food and beverage side of things, health and wellness has done well, especially products that strengthen the immune system. Consumption of New Zealand wine has gone up even though cellars and restaurants have been closed.
There is a significant opportunity to shift towards more digital commerce and more effective use of technology for business functions such as marketing, sales channels, and events. There has also been a trend to diversify channels to market via digital platforms. Some companies previously selling through distributors have expanded to include direct to consumer in their sales mix.
No doubt there will be more trends and developments that immerge before the pandemic ends. Through CANZBA’s network and events we hope to keep you informed with relevant and interesting topics and speakers. On behalf New Zealand Trade and Enterprise and the New Zealand High Commission, thank you for all your support and have a safe and enjoyable summer.
Matt Ritchie
New Zealand Trade Commissioner to Canada
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