Exporter case studies
Exporters can sometimes experience hurdles in getting goods and services into international markets. We’ve helped companies and industries to work through issues to become successful and grow their business.
Learn how others have worked through issues to become successful and grow their business.
New Zealand poultry producer, Tegel Foods, is focused on growing international sales particularly of its higher value processed products such as free range crumbed tenders, and crunchy burgers. However, like other exporters, Tegel has faced barriers to trade with other countries.
Up until 2016 Australian regulations allowed only cooked chicken into the country. This limited New Zealand’s trade opportunity to less than 10% of the Australian market. The Ministry for Primary Industries worked with the New Zealand poultry industry to satisfy Australian authorities that our rigorous biosecurity controls fully met Australian standards. The subsequent removal of this barrier is expected to significantly boost exports of New Zealand chicken to Australia, which in 2016 generated over NZ$70 million.
Separate to this, in early 2017 Tegel was preparing a trial shipment for a customer in the Philippines when the company learnt that the Philippines Government had introduced a temporary ban on poultry imports. The ban followed isolated outbreaks of avian flu in Europe and North Asia but exempted product from US, Canada and Australia. Tegel contacted the New Zealand Government for assistance.
The New Zealand Embassy in Manila had already contacted the Philippines authorities and been given an assurance that product from New Zealand would also be exempt. The quick actions of the New Zealand and Philippines Governments meant that the Tegel shipment was not delayed.
Throughout 2016, the New Zealand Government worked with domestic winemakers to protect their eligibility for an Australian wine tax rebate – saving New Zealand wine producers tens of millions of dollars each year.
Australia drinks more than 80m bottles of New Zealand wine each year, making it our third largest wine export market. Wine faces a 29 per cent sales tax but Australian producers were entitled to have that rebated, up to A$500,000 each.
Thanks to the Closer Economic Relations (Free Trade) Agreement with Australia, we successfully argued in 2005 that our wine producers should be eligible for the Australian wine tax rebate and treated on the same basis as Australian wine producers.
More than 200 New Zealand wine companies have been claiming this rebate of up to A$500,000 each, equating to about A$25 million each year, since 2005.
New Zealand’s entitlement to the ‘Wine Equalisation Tax rebate scheme,’ helps to ensure that our Syrah’s can compete on a level playing field with Australia’s Shiraz’s.
In 2016 the Australian Government announced it was reviewing the entire scheme. New Zealand wine producers, particularly smaller winegrowers, were concerned that access to the WET might be removed for our wine producers and potentially cost the industry millions.
The Ministry of Foreign Affairs and Trade worked closely with the New Zealand wine industry to put forward the arguments that any proposal to exclude New Zealand suppliers would be unfair and we worked to ensure that the new eligibility criteria did not act as a barrier to New Zealand producers.
The Australian Government agreed with our arguments and will soon pass legislation that continues to maintain New Zealand’s access to the Wine Equalisation Tax rebate scheme.
In October 2016 the government of Saudi Arabia implemented a new law which increased fees for a single entry visas tenfold, from NZ$74 to NZ$743. This imposed a considerable cost on New Zealand companies doing business with Saudi Arabia.
The New Zealand Embassy in Riyadh made representations to the Saudi government based on the fact that New Zealand offers visa free entry to Saudi businesspeople and visitors while the new fees could negatively affect the developing commercial relationship with New Zealand.
The Saudi Ministry of Foreign Affairs considered a written submission from New Zealand and directed that New Zealand be exempted from the new visa fees. As of March 2017, the fees have reverted to around NZ$96. The move has been well received by New Zealand businesses and the New Zealand-Middle East Business Council.
The New Zealand Qualifications Authority worked with the Malaysian Qualifications Agency to get New Zealand qualifications recognised for employment purposes in the Malaysian public service. Bachelor’s Degrees were successfully recognised in August 2012, followed by Master’s and Doctoral Degrees in November 2015.
This supports the ability of New Zealand tertiary education providers to attract Malaysian students by reducing the barriers to employment for students returning to Malaysia after graduating.
This will also make NZ eligible for Scholarships from the Malaysian Public Service that it had been previously excluded from.