With increasing numbers of food businesses now growing, manufacturing, and then exporting their finished products, emerging technologies like blockchain can enable much smaller agri-producers to leverage digital trade platforms to get their goods into markets more efficiently, with less documentation and faster payment.
At ASB, we have always been proud of our innovation and being one step ahead, and in 2018, we launched New Zealand's first bank blockchain single trade window after a successful pilot on the TradeWindow digital trade platform.
With Callaghan Innovation funding and a strategic investment from ASB in 2019, TradeWindow has been able to fast-track the development of its visionary blockchain, or Distributed Ledger Technology (DLT). What began as a collaboration through ASB's innovation programme to solve a customer problem is now a fully-fledged business.
The primary benefit of the single trading window is the immediate cost savings and efficiencies generated by having instantaneous sharing of documentation that is currently couriered at significant cost between various parties including exporters, importers, banks, certifiers and insurance companies.
Technology that was once inaccessible for smaller producers, because it was either too complicated or too expensive, is now within their reach.
What's more, blockchain reduces the risk of cyber security threats and fraud by increasing the transparency and integrity of the supply chain.
It also provides greater traceability from pasture to plate.
Once considered the holy grail of major exporters like Fonterra, critical measures like temperature and humidity can be monitored in real time from source to destination with the data stored on a tamper-proof distributed ledger for all to see.
With 12,000 registered exporters in New Zealand, TradeWindow represents a major market opportunity and the bank is committed to the use of new technology which streamlines trading between Kiwi exporters and the rest of the world.
Because digital trading pulls in so many different parties, including Governments on either side of border controls, TradeWindow has also enabled ASB to become part of a collaboration mechanism that ties in closely with various free trade agreements to make the export process a lot more seamless.
As staunch supporters of free trade, we support initiatives being taken by the Government to improve access for New Zealand products and it is therefore critical that we are across new trade developments to help guide our customers through the ever-changing regulatory landscape.
To that end, the bank is working closely with various agencies on new agreements.
We've been taking a keen interest in the developing of Digital Economy Partnership Agreement (DEPA) between New Zealand, Chile and Singapore — that will help New Zealand exporters and SMEs take advantage of opportunities from digital trade.
We're also following closely the development of the Digital Council for Aotearoa New Zealand, to ensure we bring customers inside that conversation; because the end goal is the same — to digitise trade, speed up the export process and make it more efficient.
Trade finance is also another key element of being a serious business bank and it's something that we have really doubled down on. In addition to offering a competitive range of products and services, with the recent addition of former New Zealand Trade and Enterprise international director Paul Gestro, we have an experienced team dedicated to providing the guidance and tools to help clients avoid the fishhooks and pitfalls of exporting.
Our exporter client base covers a broad spectrum of primary producers, from dairy and meat to horticulture and seafood, and ranges from billion-dollar enterprises to two-man bands with revenues of less than one million.
They're supported by an in-house documentation team who became essential workers during the lockdown, receiving and processing documentation on a daily basis from grateful clients anxious to keep trade flowing.
That expertise extends to identifying and navigating the roadblocks that often arise with non-tariff trade barriers and related documentation.
Every country has its own rules and food imports and products can easily get turned away at the border because of even minor changes to testing specifications.
It can get very expensive if you don't get it right, which is why we work closely with the Ministry of Primary Industries (MPI) and other agencies to smooth the way.
Thanks to existing relationships with logistics partners, and the broader connections through our parent company CBA and partner banks, we are also able to help companies reassess their supply chains, develop new logistics strategies and help them establish banking and finance connectivity in foreign markets.
ASB's stewardship doesn't end there. In a post-Covid world, where protectionism is expected to rear its ugly head, ASB is quietly working behind the scenes with the relevant authorities to reduce trade barriers and open up trade for Kiwi companies.
In addition to raising awareness about potential issues, we actively encourage customers to report issues before they turn into something bigger than they should.
This is especially important for smaller food exporters who can take comfort from having the resources of a much bigger bank advocating on their behalf.
While the outlook for the global economy and for exporters remains uncertain, the quality of our rural book is strong and ASB is more than happy to support prudent and innovative exporters.
That innovation is plain to see as farmers embrace sophisticated technologies in herd management, animal welfare, nutrient balancing and environmental planning that will make them more efficient and productive than ever.
And let's face it, resilience is built into the DNA of most farmers so the banking industry must be equally resilient in its efforts to ensure the future success of our export sector.
●Tim Deane is ASB Executive General Manager, Business Banking and has previously held senior managerial roles at Goodman Fielder and Fonterra
