Waikato Business News March/April 2017

WAIKATO BUSINESS NEWS March/April 2017 15
Chinese threat looms
in kiwifruit sector
If its apple industry is any indicator, the
Chinese kiwifruit sector is poised to ramp
up production to an unprecedented level
making it a major player as a global player
competing against Zespri.
By RICHARD RENNIE
Zespri’s global marketing
and management
team provided growers
and industry at its Momentum
conference with a frank
insight on the challenges
China’s burgeoning kiwifruit
industry presented in coming
years.
Zespri views China as a
major disruptor in the global
kiwifruit market as that country’s
production sets itself up
to almost triple in the next 20
years.
Sheila McCann-Morrison,
Zespri’s global supply chain
manager used China’s apple
industry as a template for how
things may play out in its kiwifruit
sector.
As the largest apple grower
in the world, China has almost
tripled its 1995 production of
1.5 million tonnes in 20 years.
Meantime United States exports
there have declined 26
percent, and New Zealand’s
by 12 percent.
So for Zespri, for
the non-NZ growing
season, growing
locally in China will
be very important. For
Zespri to maintain its
position we will have
to be a leader in the
local growing world.
“Only four percent of China’s
apples are exported, but
that still makes it a major exporter
today, and we expect to
see the quality improve with
time also.”
Today China grows 1.3
million tonnes of kiwifruit
compared with New Zealand’s
488,000 tonnes, close to Italy’s
532,000t.
McCann-Morrison said
Zespri believed China was on
the verge of disrupting the kiwifruit
industry in a way it did
with its huge surge in apple
production.
“New Zealand has doubled
its volumes in 20 years, but
China has grown its kiwifruit
volumes by eight times in 20
years.”
Zespri’s own estimates
have Chinese kiwifruit production
growing to 3.0m
tonne by 2027, while NZ’s is
estimated to be about 1.1m
tonnes.
“But kiwifruit still remain
a small proportion of total
fruit sold globally, accounting
for 2kg for every 1000kg of
fruit grown.”
“If kiwifruit go the same
way, we may not see such
a decline, given it’s not a 12
month market. However there
are also other companies looking
to emulate Zespri in China.
This is also backed by China
having the people, the land
Zespri global supply chain manager Sheila McCann-Morrison.
the plant breeding ability and
a central government desire to
improve the income of the rural
peasant population.”
She said other than Psa, the
industry had enjoyed a period
of relative calm over the past
20 years, making it ripe for
disruption.
“So for Zespri, for the non-
NZ growing season, growing
locally in China will be
very important. For Zespri to
maintain its position we will
have to be a leader in the local
growing world.”
Zespri already has several
initiatives underway to expand
its grower presence in
China. Last year it signed a
collaborative research agreement
with the Shaanxi provincial
government on knowledge
exchange.
It also invested $40 million
into developing the Chinese
market in 2016, and this included
establishing personnel
presence in two cities far west
of the eastern seaboard, in
Xi’an and Chongqing.
The cities have a combined
population of 14 million and
will take staff numbers on the
ground in China to more than
50.
Meantime other countries
were ramping up production
in coming years that were not
traditionally regarded as kiwifruit
growing nations.
Greece is expected to double
production to 350,000t,
and Iran to increase 2.5 times
to 200,000t.
Tourism contributes to booming regional economy
With New Zealand’s
tourism industry experiencing
exponential
growth with international
visitor arrivals and expenditure
at its highest level ever, the
Hamilton and Waikato region
has reaped the benefits of this
significant growth.
Recent data released by
the Ministry for Business,
Innovation and Employment
(MBIE) show the region’s visitor
expenditure has climbed
to $1.397 billion for the 12
months ended December 2016,
an eight percent increase on
the previous year.
Hamilton and Waikato is
the fifth largest region by expenditure,
behind Auckland,
Christchurch, Queenstown and
Wellington.
Currently international visitors
contribute an estimated
$337 million to the region,
while domestic spend delivered
$1.06 billion. Commercial
guest nights are also growing
with an estimated 6.89 million
guest nights in the region, an
increase of 6.3 percent on the
previous year.
And it’s not just tourists
that are contributing to these
stellar figures.
Hamilton and Waikato is
now the third largest region behind
Auckland and Wellington
for conventions, meetings and
business events for the year
ending December 2016. Our
region has now secured an 11
percent market share of total
events of this lucrative market.
Every conference we can
secure for Hamilton and
Waikato is significant for the
region, regardless of the sector
or size. Conference delegates
are also influenced to return
for a future holiday based on
their positive Waikato experiences.
A delegate attending a business
event was worth twice
as much of a leisure traveller
to the region, with an average
delegate per night value of
$350 per night for international
delegates and $509 per night
for domestic delegates.
With the record growth of
the visitor sector, there also
comes new opportunities and
challenges.
During this current summer
season, our commercial
accommodation across the region
is operating at high occupancy
levels.
Anecdotally we are seeing
an uplift in international visitors
spending the first and last
night of their holiday in our
region.
This is due to visitors and
travel sellers recognising our
region is an easily accessible
alternative to other destinations
such as Auckland who
are currently experiencing capacity
constraints and expensive
accommodation rates.
As a region, we are continuing
to capitalise this trend
to provide an affordable and
Future of Commodore
makes debut in Europe
The next-generation Opel
Insignia Grand Sport and
Grand Tourer made their
public debut this month at the
2017 Geneva Motor Show, giving
global media a first look at
the future of the Holden Commodore
and a taste of the new
GM global product in the pipeline.
Destined to go on sale in
New Zealand in 2018, the
next-generation vehicle is giant
step change for GM globally and
the medium/large car segment as
a whole, promising sleek, premium
design, state-of-the-art technology
features and exhilarating
performance.
Inspired by the 2013 Opel
Monza concept, the next-generation
Insignia utilizes a clean
sheet design created at Opel’s
Russelsheim headquarters under
the guidance of renowned Opel/
Vauxhall vice president - design,
Mark Adams.
GM Australia design director,
Richard Ferlazzo, said the
European team worked closely
with the GM Australia team to
give the vehicle the flowing,
sleek profile and athletic stance
expected of a Commodore,
while the sculpted headlight design
and prominent grille clearly
speak to the ‘sculptural artistry
meets German precision’ Opel
design philosophy.
“We’re excited to finally
be able to show what is a truly
global vehicle to media and customers
over the course of the
Geneva motor show and we’re
more than confident everybody
will love it,” said Mr Ferlazzo.
“We’ve been in discussions
with Mark’s Opel team for a
long time and have made sure
the Commodore DNA is strong
in the car with an athletic stance,
unique visitor proposition for
domestic, international and
business visitors.
Increased numbers during
our seasonal peak periods also
places pressure on infrastructure
such as roading, parking,
water and sewerage or recreational
amenities.
We have been grateful with
the Government’s investment
into the Waikato Expressway
but there needs to be more
sustainable funding options to
assist our local government
partners cope with infrastructure
pressure at some of our
muscular flowing lines and a
strong road presence all hinting
at the exceptional drive experience
and high-tech features.
“Commodore influence is
also strong for the interior ensuring
the vehicle boasts luxury
design and materials combined
with impressive occupant space
and luggage capacity, enough
for the whole family space.”
Available in sedan and sportwagon
bodystyles, the next-generation
Commodore also promises
a host of state-of-the-art
technology features including
heads-up display, auto emergency
braking with adaptive cruise
control and a next-generation
LED matrix lighting system
offering double the amount of
light cells as the all-new Astra
hatch.
The design and technology
TELLING WAIKATO’S STORY
> BY JASON DAWSON
Chief Executive,
Hamilton & Waikato Tourism
key conservation and natural
feature sites.
Investment opportunities
have also been identified in our
Tourism Opportunities Plan
from developing more commercial
accommodation across
the region through to premium
product development.
By leveraging our unique
geographic position, iconic attractions
and world-class facilities,
the return on investment
is highly attractive during this
growth cycle.
You can find out more at
www.hamiltonwaikato.com/
The next generation Wagon F3Q.
TOP
Hamilton & Waikato Tourism
is the regional tourism
organisation charged with increasing
international and domestic
visitor numbers, expenditure
and stay.
The organisation is funded
through a public/private partnership
and covers the heartland
Waikato areas of Hamilton
City, Matamata-Piako,
Otorohanga, South Waikato,
Waipa, South Waikato and
Waitomo Districts. Find out
more: www.hamiltonwaikato.
com
Advertorial
offering is taken to another level
with driver comfort features
including massage seats, heated
front and rear seats, sportwagon
power lift-gate and sportwagon’s
rear one-touch folding seats.
The next-generation Commodore
is Holden’s latest announcement
in its new product
offensive and with unrivalled
design, drivability and technology,
will be a worthy flagship vehicle
to the transforming Holden
brand.