NZ on to a winner in efficient food and beverage production

By LIAM DANN

A study has found that food and beverage processing is now New Zealand's largest and most competitive manufacturing sector.

The research, commissioned by the Government agency New Zealand Trade and Enterprise, showed the value of processed food and beverage exports has doubled since 1990 to $14.2 billion in 2002.

The sector now represents half the total value of the country's merchandise exports.

New Zealand accounts for 2.4 per cent of the world trade in processed foods. It is the seventh-largest exporter of such foods.

France and the US are the leading exporters, accounting for about 10 per cent of world trade each. Australia is sixth, with 3.3 per cent.

New Zealand Trade and Enterprise's director for food and beverage, Peter Bull, said that although the sector was making a huge contribution to the economy, it could do more and was crucial to lifting New Zealand's rate of economic growth.

More research into development of innovative products was essential.

The survey, carried out by Nimmo Bell and Infometrics, notes that private-sector spending on research and development is still relatively low compared with that of other developed countries.

The report's authors also identified a need for more rivalry and competition in the domestic market to stimulate innovation.

When adjusted for purchasing power parity, New Zealand's labour productivity compared favourably with that of Australia, Britain and the Netherlands but lagged behind America's.