industry profiles
New Zealand has traditionally been very dependent upon primary production and this trend does not look ready to abate in the near future. Although these profiles focus on the primary production sector, we note there are other emerging industries that Maori can diversify into.
This database is frequently expanded and updated . Contact us if you have specific information you would like to see included.
| AGRICULTURE | ORGANIC FARMING |
| MEAT | SEAFOOD |
| DAIRY | AQUACULTURE |
| WOOL | TOURISM |
| FORESTRY | INFORMATION TECHNOLOGY |
| HORTICULTURE – KIWIFRUIT / VITICULTURE / HEMP |
CREATIVE INDUSTRIES |
| EDUCATION & CONSULTANCY |
AGRICULTURE
Agriculture is New Zealand's largest industry. Agriculture is made up of meat products, dairy products, wool, and other pastoral based products, excluding horticulture. It is also New Zealand’s largest export earner. For the year ended December 2005, New Zealand exported agricultural goods (including processed products) which contributed to 56 % of our export earnings.
It is estimated that agriculture, including processing and manufacture, contributes a total of 16.6% to GDP. Agriculture exports totalled $ $15.8 billion for the year ended March 2005, dairy products being the main contributor. Agriculture also makes up 66% of the Maori economic asset base.
Source: Ministry of Agriculture and Forestry
See also FoMA Member AgriBiz Initiatives
Farming Support and Resources www.agmardt.org.nz
MEAT
Meat industry products account for about 17 percent of New Zealand merchandise exports. Our main meat exports are lamb, mutton and beef. About 91 percent of lamb, 79 percent of mutton and 83 percent of beef produced in New Zealand in 1998–99 was exported overseas. The domestic market absorbs over 99 percent of pigmeat and poultry produced in New Zealand. New Zealand is a major exporter of sheepmeat, accounting for about 53 percent of the world export trade; however it accounts for only 10 percent of all world beef exports.
New Zealand's major meat markets are the United Kingdom, Germany, France, Saudi Arabia and the United States for lamb; the United Kingdom, Germany, South Korea and France for mutton; and the United States, Canada, Japan, South Korea and Taiwan for beef. The top three of the 51 venison export markets for the year to 30 June 1999 were Germany, the United States and Belgium. Most of the venison produced in New Zealand is exported.
Source: Fonterra Co-operatives Group
DAIRY
The New Zealand dairy industry is well established and is one of the world’s top five dairy exporters. Only 5% of New Zealand’s dairy products are used in local consumption. The dairy companies produce nearly all of the dairy products.
Fonterra Co-operative Group covers 95% of the New Zealand dairy industry and ensures all produce meets export standards. Fonterra also markets those products overseas through its distribution networks. The New Zealand dairy industry's major markets vary for different products.
Britain and the EU are New Zealand's most valuable market for butter. The primary markets for casein and cheese are the United States, Japan, and the EU. New Zealand is the world's largest exporter of casein and caseinate products. New Zealand's most important milk powder markets are in Central and South America and South-East Asia.
Source: Fonterra and Statistics New Zealand
See also FoMA Member Dairy Initiatives
WOOL
New Zealand is the world's second largest wool producer. It produces all main wool types - fine, mid-micron and crossbred. New Zealand is the largest producer of crossbred (strong) wool contributing 33 percent of the world total. This type of wool is used mainly in interior textiles such as carpets, upholstery, furnishings, bedding and rugs. It is also used for hand knitting yarn, knitwear and in blankets.
Mid-micron and fine wools are used for hosiery, suitings and fashion apparel. Typical New Zealand wools are strong, white and uniform, with low levels of black fibres, seeds, soil and other contaminants. Australia is the world’s largest producer of fine wool, used in apparel and the largest producer of wool overall.
Source: New Zealand Wool Group
See also FoMA Member Dairy Initiatives
FORESTRY
Proportionately, New Zealand has one of the largest areas of protected natural forest in the world – nearly 6 million hectares. It is also home to the world’s biggest and most intensively managed tree plantations – now covering 1.8 million hectares. This is something of a paradox but it nevertheless enables New Zealand to truthfully claim that almost all of its industrial wood needs are met from sustainably managed forests.
The New Zealand forest industry supplies 1.1% of world and 8.8% of Asia Pacific’s forest product trade. All from just 0.05% world’s forest resource. The biggest export market is Australia (29%), followed by Japan (22%) and Korea (12%). The highest earning export commodity is lumber. The forestry sector contribution to GDP is 4.0%. Forestry makes up 12% of all New Zealand’s export earnings.
The forest industry contributes significantly to Maori employment and economic advancement. Large areas of planted production forest are on Maori land; 10% of the Maori economic asset base is in the forestry sector. The net stocked area of forests on Maori-owned land in 2000 was 238 000 hectares, around 14 percent of the total area of New Zealand's planted forests. Most of the forests are owned and managed by forestry companies or the Crown, through long-term (up to 99 years) forestry leases. Maori own and manage around one percent (20 000 hectares) of planted forests.
Source: New Zealand Forestry
See also FoMA Member Forestry Initiatives
HORTICULTURE
Horticulture includes vegetables, fruit and nuts and preparation thereof. Although pastoral farming is the major land use in New Zealand, in recent years there have been significant increases in the horticulture industry. Kiwifruit and apples represented 30% and 17% respectively, of our horticultural exports, followed by fresh vegetables (13%) and wine (10%). Horticulture exports have currently grown from $200 million to almost $2.0 billion in 20 years. In 2001, horticulture represented 6.1% of all New Zealand's produce exports.
Source: Statistics New Zealand
KIWIFRUIT
New Zealand was the first to market kiwifruit with kiwifruit having its origins in china. Kiwifruit is marketed worldwide under the brand name Zespri™. The main markets are Europe and Japan. There are two varieties of kiwifruit that are produced in New Zealand, the Hayward (green) and the Hort 16A (gold) variety. Kiwifruit grow best in deep, free-draining volcanic or alluvial soils rated as first class. The Hort 16A (gold) variety is patented and requires a licence to grow the fruit. The kiwifruit season is between April and November. It takes approximately 4 years for a kiwifruit vine to start bearing worthwhile crops and between 5-9 years for it to fully bear fruit.
Source: Zespri Kiwifruit
See also FoMA Member Kiwifruit Initiatives
VITICULTURE
The New Zealand wine industry has significantly grown in the last decade but is small by world standards (0.2%). New Zealand exporters cannot compete on volume so must compete on value and quality. In 2001 there were 382 wineries in New Zealand an increase of 24 on the previous year. Exports account for over 34% of total New Zealand wine sales. The UK is New Zealand’s major wine market. Sauvignon Blanc is the flagship wine for New Zealand overseas. However Pinot Noir is growing strongly with experts predicting huge potential for growth on the international market.
Tohu Wines is the first indigenous Wine Company to export high quality wine from New Zealand. Hau Ariki Marae in Martinborough was one of the pioneers in the marketing of Maori wine. Arahura vineyard in South Auckland is another small Maori wine enterprise. Another significant event in terms of the Maori wine sector was the joint venture between Ngai Tahu Holdings Corporation and Giesen Holdings in which Ngai Tahu bought vineyards in the Marlborough region and leased them back to Giesen Wine Estate.
Source: New Zealand Trade Development Board
See also FoMA Member Viticulture Initiatives
ORGANIC FARMING
Organic farming is when the farmer works in harmony with nature, providing produce of a high nutritional quality with zero or minimal use of harmful chemicals. Organic farming is based on creating a sustainable farming operation which reduces or eliminates the need for use of agriculture chemicals. Exports from organic produce in New Zealand exceed $60 million, and are expected to reach $500 million by 2006. The domestic market is approximately $40 million.
Although there is no legal protection for the use of the word ‘organic’ in New Zealand, there are standards that require the farmer/growers to go through a certification process in order to carry a trademark and therefore be certified as organically grown. Bio-Gro, Demeter, and AgriQuality are three certifying organisations that have been accepted internationally. Te Waka Kai Ora is a recent Maori initiative that is focused on Maori organic producers. They are working towards establishing a National Maori Organics Organisation.
Source: BIO-GRO New Zealand
HEMP
Hemp is an annual herbaceous plant of the species Cannabis sativa. It is a high yield commercial fibre crop which flourishes in areas with temperate climates, such as Canada. The areas showing the most interest regarding Industrial Hemp in New Zealand are Southland, Motueka / Tasman, Canterbury, Northland and Hawkes Bay.
Hemp grows successfully at a density of at least 150 plants per square meter. Hemp grows to maturity in 100 days, is ideal in rotation and conditions the soil for future crops with its long root system. Due to this quality, hemp requires less pesticides, fungicides and herbicides.
Hemp can provide 3 times the current rate of return of other traditional land uses with a forecast gross margin of between $1000 and $10,000 per hectare ($ 400 to $4000 per acre) as Australia and Canada are currently proving. Hemp can be used for cordage, textiles, paper, fibreboard, biomass fuel (clean power source), biodegradable plastics (from hemp hurd), human consumption (hemp seed oil) and as a high quality industrial oil (hemp seed oil). A licence is required to cultivate a trial plot of industrial hemp (visit the website for more details).
Source: New Zealand Hemp Industry Association Inc.
SEAFOOD
New Zealand directly controls the world’s 4th largest coastal fishing zone. Seafood is New Zealand’s fourth biggest exported product sector (after dairy, meat and timber), earning $1.4 billion and supporting more than 26,000 full-time-equivalent jobs around the country. This Exclusive Economic Zone (EEZ) produces about 1% of the world's catch. New Zealand is currently the world’s leader in fisheries management and supports an industry based on sustainable harvest and environmental principles.
Maori are significant participants in the New Zealand seafood sector due to their ownership of quota and shareholdings in major seafood companies such as Sealords and Moana Pacific. Te Ohu Kaimoana was established under the Treaty of Waitangi Settlement Act to develop a method for allocating fisheries assets to Iwi, according to Act and the Deed of Settlement. Until an allocation scheme is in place, the Commission is responsible for organising annual lease rounds to make quota available to Iwi through a leasing process. In these, it leases quota to Iwi organisations at a discounted rate (below market prices) in order to encourage more Maori involvement in the industry.
Source: SeaFic – New Zealand Industry Council
See also FoMA Member Seafood Initiatives
AQUACULTURE
Aquaculture is the process of farming seafood, using either man made reefs (in the case of shellfish), or sea cages (in the case of fish). The high quality of our coastal water, its temperature and the abundance of plankton create ideal conditions for aquaculture. The major activities focus primarily on farming greenshell™ mussels and king salmon. There is a smaller level of activity in farming pacific oysters and some small scale paua (abalone) farming. Aquaculture is one of the fastest growing areas of the New Zealand seafood industry, making up around 20% of the total fisheries value. It is predicted that in the next 20 years, up to 50% of seafood production worldwide will be in aquaculture.
Aquaculture is an area that offers a lot of opportunities for Maori in growing, processing, marketing and exporting. This involvement has expanded from individuals, hapu and Iwi across all areas. Te Ohu Kaimoana’s share in Sealord has given Maori a major stake in mussel production, oyster, scallop and paua processing. Other Maori interests are currently active in the growing and processing of two major export industries, green shell mussels and pacific oysters. This participation encompasses private and collective Iwi interests.
Source: SeaFic – New Zealand Seafood Industry Council & New Zealand Trade Development Board
See also FoMA Member Seafood Intiatives
TOURISM
Tourism is one of New Zealand's largest export industries, with international visitor expenditure in 2000 of $4.8 billion. Domestic tourism generated $6.4 billion in the same year. Tourism plays a key role in the growth of our economy through employment, foreign exchange earnings, investment and regional development. Tourism directly and indirectly contributes almost 10% of New Zealand's GDP. It is a demand-driven, service-oriented industry experiencing rapid growth and innovation.
There are many Maori tourism businesses, most of these businesses are 100% owned by Maori and any non-Maori investment in Maori businesses is usually passive. Marae based cultural tourism ventures are also increasing. Some of the major tourism investments by Maori interests announced in recent years are:
- a $6 million investment by the Tainui Board as one of three partners in a riverside international hotel in Hamilton;
- a $10 million expansion at the Maori Arts and Crafts Centre in Rotorua;
- and a $10 million tourist park, including a railway on Mount Tarawera, being promoted by Ruawahia 2B Trust.
Nevertheless, Maori participation is concentrated predominantly as end-suppliers. Thus Maori can afford to examine ways to shorten the food chain and deal more directly with their tourist clientele.
Source: Statistics from Ministry of Tourism
emerging industries
INFORMATION TECHNOLOGY
Information technology is one of New Zealand’s fastest growing export industries.
Several Maori entrepreneurs have established successful businesses such as IT developers and exporters (DVI, Compudigm).
Source: The Telecommunications Users Association of New Zealand
CREATIVE INDUSTRIES
New Zealand is probably best known internationally for superb scenery, outdoor pursuits and natural produce but the achievements of its artists are equally noteworthy.
In recent decades, New Zealand society and culture has been rapidly transformed. Inevitably, the arts have been deeply affected by these changes.
Today, Maori artists are exploring new ideas and adding new forms to Maori art. Traditional artforms are still being created and preserved but contemporary artists are developing innovative new techniques within the styles handed down through the generations. This can be seen in the revival of ta moko, the emergence of a new generation in visual arts, and a contemporary super 12 kapahaka competition complementing the long standing bi-annual traditional national kapahaka competition.
Maori music has also taken on new flavours with hip-hop proving to be successful style for the use of our Maori rhythms and language. We are increasingly making our mark on the World Music scene, which includes all music regardless of style not sung in the English language.
Maori are also featuring more prominently in Media and Production services, Fashion /Apparel and Design.
http://www.creativenz.govt.nz/main.html
EDUCATION & CONSULTANCY
The global education market is estimated to comprise between 1.2-2.4 million students spending some US$17 billion annually. New Zealand currently have a 0.5-1% share that equates to $200 million forex earnings in fees, $500 million to the overall economy, and growth potential of$1 billion by 2003.
There is a great deal of scope for Maori to capitalise on this growth, through developing a strong Maori identity and a culture of excellence within the education sector, producing unique high quality, high value products that meet the needs of the global education consumer.
There are also a large number of businesses in the Maori Consultancy sector offering business expertise, indigenous cross cultural understanding, models for health & education, also public policy expertise.
Across all the creative industries there is much scope to develop a Maori brand strategy that encompasses and expands on such initiatives as Toi Iho – Maori-made mark. This will have flow on effects across the board for Maori and other New Zealand enterprise.
OTHER RESOURCES
http://www.maf.govt.nz/statistics/
http://nztrades.com/agrirural/
http://www.tradeforum.org (Making the Best of Craft Trade Fairs)
Publications
Te Puni Kokiri (2000) Maori in the New Zealand Economy
