Food and beverage sector under microscope

New Zealand's food and beverage sector is being asked to consider the best way forward to ensure and boost its sustainable growth.

Sector participants are being invited to provide feedback on a discussion paper, prepared by the Food and Beverage Taskforce, which explores what needs to be done and by whom to take New Zealand's multi-billion dollar food and beverage sector to the next level of growth.

Taskforce co-chair and Griffin's Foods managing director, Tony Nowell says that the sector needs to acknowledge that the world is changing.

"There are new food trends, increasing consumer demands on quality and safety, growing competition from emerging suppliers and increasing pressures from powerful buyer chains. These trends create opportunities for New Zealand companies, but also pose threats.

"The taskforce believes that business as usual is a high-risk position, and not one that will result in the sector realising its full potential."

Food and beverage exports have doubled in the past 10 years and today are worth about $15 billion annually, just over half of New Zealand's total merchandise exports.

Mr Nowell says the future of New Zealand's economy is inseparably bound with the future of its food and beverage industries.

"It is the linchpin of New Zealand's prosperity. It is at the centre of production, employment and export earnings and is a driving force in New Zealand's international reputation for innovation and quality.

"We cannot lift and sustain our overall economic performance without a leading contribution from a strong and growing food and beverage sector. At the same time, if this sector is in trouble the economy is in trouble. Major regions depend on the sector for jobs and income."

Mr Nowell says the sector has performed well over the last decade, partly as a result of good circumstances, and partly through research and development, clever marketing and effective management.

"We can't rest on our laurels, however. There are signs of a levelling off of food exports over the last two years, due in part to the high dollar and some parts of the sector being under stress."

The Food and Beverage Taskforce is a group of 20 leaders from the country's food and beverage industries and senior government representatives, appointed last December by the Government.

The taskforce is seeking feedback on its discussion paper from private sector food and beverages businesses, government agencies, research institutions, training providers and unions.

It will report to Government at the end of June 2006 and Mr Nowell says this is a chance for everyone involved in the sector to have their say on what shape its future should take.