Traders see rich future in China

China is increasingly viewed as the "most profitable" market by New Zealand exporters even though sales to the Asian giant have been flat.

The latest six-monthly DHL export barometer survey of just over 300 firms said China had moved from seventh to third-most-profitable destination for New Zealand goods and services, pushing the Pacific and Britain down to fourth and fifth place.

Twenty-three per cent of respondents ranked China most profitable, behind Australia (40 per cent) and North America (32 per cent).

Export New Zealand chief executive Bob Walters suspected that the results partly reflected increased China sales activity by the agricultural technology sector.

"There's quite a number of groups, consortiums and so on working up in that area, spinning off from our really good agricultural technology."

Such sales could normally command "quite a premium".

However, Derek Fairweather - of the agricultural technology-focused Waikato Innovation Park - said that while there was significant sector optimism about China, he believed only one unnamed company was making it big with agri-tech exports there.

The survey report said 43 per cent of China exporters polled were from the services sector and 23 per cent were agriculture, food and beverage exporters.

DHL Express NZ general manager Derek Anderson said that despite a higher profitability ranking, New Zealand's exports to China had remainedsteady.

Of the companies exporting to China and viewing it as the most profitable market, 67 per cent had been exporting there for 10 years or more. He said the survey showed it took time to develop a successful China presence.

New Zealand Trade and Enterprise chief executive Tim Gibson said the results suggested exporters were beginning to see "real benefits" from China. It was vital to build relationships and not expect an immediate return.

While Australia remained top of the "most profitable" ranking, exporters seeing Australia in that light dropped 8 percentage points to 40 per cent.

Export changes

* China now ranks as third "most profitable" export destination.

* But exports to the People's Republic are reportedly static.

* Australia and North America retain highest "most profitable" rankings.