Kiwifruit Exporters Working Together

Media Release - 30 October 2009

Following the signing of the Free Trade Agreement between New Zealand and Malaysia, ZESPRI is attributing much of the New Zealand Kiwifruit industry’s success in Malaysia to collaborative marketing programmes between New Zealand exporters.

Under the Kiwifruit Export Regulations 1999, any person or company can undertake collaborative marketing with ZESPRI, if approved to do so by industry regulator Kiwifruit New Zealand.

ZESPRI Director of Corporate and Grower Services, Carol Ward, said that collaborative marketing programmes helped develop Malaysia as a market 10 years ago and today almost half of New Zealand Kiwifruit sales into Malaysia were through collaborative marketing programmes.

“Forty-six percent of the industry’s total Malaysian sales of 822,000 trays are sold through collaborative marketing programmes,” said Ms Ward. “In addition, 30 percent of Indonesian sales, and 100 percent of sales into the Philippines are through collaborative marketing programmes.”

“For the Malaysia market, there are three exporters of New Zealand Kiwifruit – ZESPRI, Te Awanui HukaPak and Fruitlynx Marketing Limited. They work in collaboration on budgets, forecasting, performance reporting, logistics and customer relations.”

Tracey Burns, Export Manager, from fresh produce company Fruitlynx Marketing Limited, part of Freshmax NZ, said: “We work alongside ZESPRI and HukaPak, who are all focused on boosting kiwifruit sales in that part of the world and cooperating for the good of New Zealand Kiwifruit growers.

“Our Malaysian distributor was importing quite a lot of Chilean kiwifruit as part of their substantial fruit import business, but a few years ago we identified an opportunity to boost the category with a premium kiwifruit offering, supported by high quality advertising and promotion of ZESPRI-branded kiwifruit. As a result of gaining retailer support, our volumes have increased significantly – with our GREEN sales growing by 44 percent this past year.”

With the FTA signed, ZESPRI is planning to add to its team of local distributors and marketing agencies by appointing a fulltime local ZESPRI Marketing Manager to step up its programme to educate Malaysians about the nutritional goodness of ZESPRI® Kiwifruit.

Sir Brian Elwood, Chairman of Kiwifruit New Zealand (KNZ), the regulating body responsible for administering the Kiwifruit Export Regulations 1999 and approving collaborative marketing programmes, said in a recent letter to growers that: “KNZ must be satisfied that growers will be ‘better off’ as a result of a collaborative marketing arrangement which it approves.”

“There are currently 12 exporters of New Zealand-grown kiwifruit to countries other than Australia (about 20 if Australia is included). Historically, about 80 percent of all collaborative marketing applications are approved by Kiwifruit New Zealand as meeting the regulatory requirements."

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