New Zealand is a small country and businesses tend to be small if they focus on domestic market. To grow, small businesses in New Zealand have to enter export markets. And this beautiful country has much that is exportworthy.
New Zealand consists mainly of two narrow islands- South and North Islands – surrounded by ocean. It has a long coastline and an extensive fishing zone. This has created a growing seafood industry, which is poised to bring in foreign exchange worth $2 billion by 2010.
The seafood industry observes sustainable management practices for fish stocks. The industry is financially strong, efficient and self-funding. New Zealand sea food products have gained a reputation for high quality and reliable food safety.
Boat building, ship building/refit/repair, dockage and berthage, diving, engines, recreational refit/repair, yacht broking, boat shows, marinas and other marine industries support the exploitation of the long coastline.
Farming and Agriculture
New Zealand is fertile and green. Farming and horticulture account for a high proportion of the country’s export earnings. The focus was traditionally on sheep and cattle, providing meat, wool and dairy products. And meat industry products were New Zealand’s largest export earners.
The crossbred wool of New Zealand is used in interior textiles such as carpets, upholstery, bedding, blankets and rugs. It is also used for yarn and knitwear.
A new industry came into being when the deer population proliferated to become pests and began to harm the environment. Deers were killed and the meat was exported. Soon, deer farming was started on a wide scale to produce venison and velvet for expanding export markets.
Other exported farm products include Kiwi and other kinds of fruits, cutflowers and vegetables. Cereals are used for domestic consumption.
One industry that has grown fast is the poultry industry. Poultry meat is consumed internally and is becoming the major component of meat consumed. The large poultry processors engage contract growers to rear the chickens. There is much scope for such contract growers who provide land, labour and buildings and are provided training and money.
The large farming community needs supplies like herbicides, calf feed, fungicides, electric fencing, insecticides and other general supplies and rural retailers do good business supplying these requirements.
New Zealand has found a balance between forest conservation and timber production and there is a formal New Zealand Forest Accord. R&D has enabled the country to produce pine that begins to yield timber in 25 years. New Zealand pine is a softwood ideal for the construction industry. It is being touted as the wood for the 21st century and exported to Australia and increasingly to Asia.
New Zealand Sauvignon Blanc has become an internationally acclaimed benchmark style of wine. Wine exports have been growing every year and exceed 300 million dollars.
The clean and green environment of the country, the vast range of climates and soil types where grapes are grown and clear sunlight and cool sea breezes in the predominantly coastal vineyards have made New Zealand wine distinctive.
The Mineral Industry
New Zealand has substantial reserves of ironsands used for steelmaking, gold and silver, coal, aggregates for buildings and roads and industrial minerals. Exploitation of these have been hindered owing to environmental concerns.
Groundwater is another major resource that meets 40 percent of the country’s water consumption. There is a potential for export of bottled and mineral waters.
With its long coastline, stunningly beautiful landscape and several interesting natural phenomena, New Zealand attracted over two million tourists who brought in over 6 billion dollars in foreign exchange. The tourists need transport, accommodation, food and financial services. They also buy from local retailers.
The tourist industries generate business for construction, printing&publishing, manufacturing and insurance industries.
The government is trying to encourage development of Information & Communication Technology, Biotechnology and Creative industries like Screen production. Researched Medicines industry is also important in the country.
The taskforces appointed to recommend steps to promote these industries have identified likely manpower shortage in Information & Communication Technology and Biotechnology as major constraints for growth.