Bank of China (NZ) to hold Agribusiness Conference

Bank of China (NZ) to hold Agribusiness Investment and Trade Conference

Auckland, 18 April 2016 – Bank of China (NZ) Limited is holding an inaugural China-New Zealand Agribusiness Investment and Trade Conference on 25 May in Auckland to introduce New Zealand agricultural technology, products and services to a visiting Chinese agribusiness delegation interested in investing in New Zealand.

New Zealand primary industry and agricultural companies will have a unique opportunity to better understand access to China’s burgeoning 1.3 billion middle-income consumer market, including potential to establish trading partnerships with 70 visiting Chinese agribusiness representatives.

The New Zealand Government has set the ambitious goal to increase exports from 30% of GDP to 40% of GDP by 2025 – creating new jobs and businesses in the process. Agribusinesses will be a critical component in reaching its target. Prime Minister John Key is currently visiting China to discuss upgrading the existing free trade agreement between the two countries, which will further boost two-way trade.

Bank of China (NZ) Chief Executive Officer David Lei Wang says New Zealand’s economy is based predominantly on primary produce, and it enjoys a competitive international reputation for expertise and innovation in the agricultural sector. The visiting Chinese delegates are especially interested in NZ’s world-leading agricultural technology.

The growth potential for New Zealand agricultural industry is immense, says Wang, while innovators operating in the supply chain and logistics sectors are also substantial.

Wang acknowledges that trading with China, with its different social and business culture and legal system presents Kiwi companies with significant challenges but these can be surmounted by forming relationships with key Chinese conduits.

“We see part of Bank of China (NZ)’s role is to act as a bridge and connect local companies to the right kind of Chinese business partners, whether from a distribution, strategic investment, production or marketing perspective.”

“China presents great opportunities for New Zealand agribusiness to produce and export more, but companies here need the right partner to support them in making that first step. By hosting 70 Chinese agricultural companies here, we aim to introduce local agribusinesses to people who can potentially help them access the Chinese market and grow their business,” Wang says.

Bank of China will arrange match-making meetings for New Zealand companies with their Chinese counterparts who have matching business needs. All face-to-face break-out meetings will be assisted by on-site translators.

Despite China’s agricultural output being the largest in the world, it is set to become the largest importer of farm products – due to its arable land constraints, and housing over 20% of the world’s population.

China is forecast to import US$150 billion of chicken, pork and beef by 2020, while water constraints are predicted to significantly impact horticultural production. About 40% of the global corn trade is imported by China, which is expected to become the world’s leading corn importer by 2023. China’s Ministry of Agriculture is talking up the need for more imported lamb in the next five years in anticipation of domestic demand growth.

“Food safety and health benefits, including growing demand for organic and gourmet produce, are increasingly important factors among China’s middle class; New Zealand’s reputation for clean, innovative and efficient production provides it a powerful competitive edge in a highly competitive international market,” Wang says.

Supported by New Zealand Trade and Enterprise (NZTE) and Chinese Chamber of Commerce in New Zealand (CCCNZ), the one-day conference will open with a keynote speech from Bank of China’s deputy chief executive, followed by face-to-face break-out match meetings for New Zealand companies wanting to establish contacts, find distribution partners and/or discuss market entry requirements in China.

ENDS

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