NZ goods rot on docks in Fiji coup

By LIBBY MIDDLEBROOK

Container-loads of fresh New Zealand produce are rotting on Fiji docks and other valuable export orders are on hold in the commercial disruption caused by the coup.

Supermarkets and importers in Fiji have delayed orders for vegetables and fruit, with one New Zealand exporter unable to distribute $25,000 worth of produce from a Fiji port due to lack of labour.

Several accommodation developments, which would have included millions of dollars worth of New Zealand construction materials, have also been delayed until the political situation calms.

"The great disappointment is that this will undoubtedly affect foreign investment in the short term," said Trade New Zealand commissioner Jo McEvoy from Fiji.

"There are quite a few developments which were supposed to be signed off this week and we were quite confident that we would get a good slice of the action, so we're quite upset about what's happened."

During the 1987 coup, New Zealand trade to Fiji dropped severely from $125 million in 1996 to $89 million the following year. Exports to Fiji, which were mostly made up of food and building products, totalled $200 million last year.

This week, exporters such as Produce Agencies have run into problems, with the Pukekohe company unable to dispense five container-loads of carrots, potatoes and onions worth $25,000 from a port in Fiji.

Apple exporter Enza has lost a $50,000 order in the interim because of distribution concerns while Auckland fresh produce trader So Fresh has been forced to divert shipments away from Suva to other Fiji ports. A container-load of the company's vegetables was also dumped at sea earlier this week.

"It's certainly going to have a big impact on our trade to Fiji. I can see us being very careful about what we do there over the next few weeks," said Maurice Wymer, general manager of Produce Agencies.

Mr Wymer was just one of many local exporters who anticipated food shortages in Fiji.

Suva fresh produce importer Uno, which delayed the Enza order, was also expecting basic food supplies to run short in the next few days unless the crisis was resolved. Uno general manager Arthur Mar said he was forced to cancel the Enza order because of transport and labour issues at the docks.

However, Ullrich Aluminium managing director Gilbert Ullrich said the Fiji situation had presented good opportunities for New Zealand construction and building material companies.

While several small orders for their products had been delayed, Mr Ullrich intended sending someone to Fiji to generate sales as soon as the crisis calmed down. "There will be a lot of construction opportunities up there for us I would imagine," Mr Ullrich added.

Ms McEvoy said Trade New Zealand was advising exporters to be cautious about new orders from Fiji in the short term.

"I think it would be naive to suggest that it's going to be business as usual."

"Payment's going to be an issue for exporters to watch out for," she said.

"In times of financial difficulty, getting payment does become harder."

The New Zealand Dairy Board said exports to Fiji had not been affected.

Meanwhile, an operation of food company Goodman Fielder has run into trouble in Suva, with its chicken factory damaged by fire.

While Goodman said the incident was not related to the civil unrest, there had been reports that the fire was started by terrorist groups.

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