A key part of the solution, for Auckland and New Zealand, lies in adding value to our exports and lifting our focus on premium products.
There is a massive opportunity for our region if we can deliver into the soaring demand for these products from wealthy consumers in the growing cities of our export markets.
As Asian markets expand and modernise, vast numbers of people are migrating to cities. The population in urban areas in China alone has soared to 700 million, outnumbering rural dwellers for the first time. Another 200 million will join them in the next 20 years.
City life means greater spending power, which many direct towards more upmarket and sophisticated products.
When it comes to dining, they want food and drinks that are safe, high-quality and convenient. Many are turning to a diet richer in protein and vitamins, including seafood, meat and dairy, along with fresh fruit and vegetables.
It's not hard to see the close match with the food and beverages New Zealand produces. Global demand for these is soaring, but we are not the only country to see the opportunity. We'll only stay ahead if we're smart and quick on our feet.
To make the most of our potential we must focus closely on the consumer. People at every stage of the value chain, including producers, processors and marketers, need to understand the preferences of our new customers and where and how they get their food.
Our exporters stand to gain most if they target the wealthiest 10-20 per cent of urban households -- where people not only consume more of New Zealand's major exports, but will pay a premium for the privilege.
For example, we know the wealthiest Chinese households spend five times more on dairy and seafood, and twice as much on meat, than those on the lowest incomes. And they will pay more per unit for quality, such as better cuts of meat, more premium varieties of seafood, branded, packaged or processed food, or upmarket beverages.
The people and businesses of Auckland will be centre stage in delivering on this opportunity.
And the city stands to gain a great deal from the benefits.
Auckland's opportunity to drive this export-led growth stems from its strengths, not only as New Zealand's largest city and business centre, but its gateway to the world.
Our infrastructure and role as a transport and logistics hub give the city a unique status as a crossroads between New Zealand's primary producers and sources of ingredients and the dining rooms, restaurants and supermarkets of the world.
Auckland's sea and land ports handle nearly two-thirds of New Zealand's imports, by value, and a third of all exports. Its airport handles three-quarters of international arrivals and 85 per cent of airfreight.
Auckland is in a prime position to draw on world-class food and beverage ingredients from across New Zealand, including dairy, meat, grains, seafood, fruit and vegetables -- along with their associated reputation for world-class quality, safety and clean green production.
All of this means Auckland is the logical place to add value to our exports before they leave our shores. The region's growing food and beverage sector can then add value -- processing, packaging, marketing and exporting products to consumers around the world.
If New Zealand is Asia's farm, Auckland is its pantry.
The region's food and beverage sector has critical mass, with a 40,000-strong workforce offering a wide pool of skills, experience and expertise. Two-thirds of New Zealand's top 50 food and beverage companies have their head office in Auckland, including household brands such as Fonterra, Sanford, Sealord, Tasti Foods and Hubbards, and the industry contributes around $3 billion a year to the local economy.
The opportunity for the region's businesses is embodied by rising stars like 8 Wired Brewing, a craft brewer turning top quality New Zealand hops into award-winning beers which are now enjoyed by consumers across five continents.
The Freshmax Group has built up one of the largest fresh produce marketing and distribution operations in the Pan Pacific region -- partnering with growers and exporting to all corners of the world.
As the largest bank in New Zealand, and the one with the largest presence across Asia, ANZ can draw on its experience and networks to help connect local businesses to opportunities in Asian markets.
We regularly take companies to Asia to identify business leads and potential partners and network with other firms. Success stories include Marisco Vineyards, which signed a distribution deal with Dynasty Wine Company in China after taking part in an ANZ-led tour in 2010, and The Wine Portfolio Ltd, which built valuable new connections via the ANZ network on a food and beverage sector trip to Hong Kong last year.
Another field with great potential is nutraceuticals, where Auckland-based Vitaco Health, one of Australasia's largest manufacturers in its field, is producing world-class health food, supplements and sports nutrition which can be found in supermarkets, pharmacies and health food stores in over 30 countries.
As with other industries, capital is a vital ingredient in fully unlocking the sector's potential. In this field too, Auckland is well served, with major investors such as NZX-listed Veritas Investments supporting the growth of key food, beverage and hospitality businesses. ANZ is pleased to be working with Veritas as part of its growth strategy for the sector.
Companies like these across the food and beverage sector are leading the way and showing what is possible if we harness Auckland's domestic and global connections to add value and drive growth.
The challenge for our city is to follow their lead and renew our focus on producing premium exports to target high-end consumers in growing markets. Only then can we secure Auckland's place as New Zealand's productivity engine, building long-term prosperity for our city, our businesses and our people.
Mark Hiddleston is ANZ's General Manager, Commercial and Agri, for Auckland and Northland.
