Page 1

issue 19 july quaRteR 2011

issue 19 july quaRteR 2011

export opportunities on every page

tackling the

New India •• NZ•Dollar:•Managing•a•volatile•currency • • Trade•credit•insurers•back•in•the•game • • Christchurch•‘s•lessons•for•business•insurance • • Shipping•from•New•Zealand


and when it does you want QBE on your side Imagine: A jolly roger flies above a scruffy boat, approaching a container ship carrying your cargo to overseas ports. What follows may change lives…and fortunes… for a long time to come. Product that didn’t make it to market will need to be replaced. And everyone will be looking for someone to blame. Someone to pay compensation. The results may lead to your own career taking a nose dive off the nearest short plank. QBE has more than 200 different business policies working to help protect New Zealand businesses on land and at sea. Talk to your broker today about how to make sure QBE is on your side when it happens. www.qbe.co.nz

QBE-019 Rapport


issue 19 JULY qUarter 2011

COveR sTORY BEyONd RamayaNa aNd mahaBhaRaTa: UNlOCkINg INdIa

04

How to succeed in India

FEaTURES

REgUlaRS

eXPORT eDuCATiON The zen of export education Many ways of educating exporters

PuBlisHeR’s vieW / sAY iT like iT is Mike Taillie Free hearing test for the government

eXPORTeR PROfile from small to global: invivo Wines’ export strategy Selling wine Invivo’s way

leTTeR TO THe eDiTOR Julian Bevis Lines must play the hand they’re dealt

08 12

iNsuRANCe Trade credit insurance’s revival Trade insurers taking bigger bites

22

02 03

vieWPOiNTs Catherine Beard Latest survey reveals good reason for exporters’ optimism

18

CuRReNCY Buying time with hegdes Managing a strong NZ dollar

20

lOGisTiCs shipping from the edge of the world Shipping tips

PRODuCTs Global stage Innovative NZ products seeking a worldwide audience

26 30

iNsuRANCe The true cost of reconstructing your business Lessons from Christchurch

34

COsT MANAGeMeNT Managing outsourcing Lowering business cost

36

TeCHNOlOGY Office without wires Should you go wireless?

40

eXPORT MANAGeMeNT Passage to shanghai Changes at New Zealand Trade Centre

44

Gilbert Peterson In the beginning were trade missions

48 50

export Opportunities New contacts from the New Zealand Trade Centre

DiReCTORY useful Websites Information for travellers and exporters

54

Cover photography: istockphoto

editor: Yoke Har Lee, (E) yokeharlee@exportermagazine.co.nz Copy editor: Anthony Doesburg Advertising: Travis Field (M) 021.474.447

(E) travis@peoplemediagroup.co.nz P.O. Box 7070, Wellesley Street, Auckland, New Zealand (T) 09.366.6879 (F) 09.366.6838 www.exportermagazine.co.nz Design: Tabea Wiese / CCL Communications Group, (T) +64.9.631.1400 Publisher: PEOPLE MEDIA GROUP, www.peoplemediagroup.co.nz Ground Floor, 26 Albert Street, Auckland, New Zealand. P.O.Box 7070, Wellesley Street, Auckland, New Zealand. (T) +64.9.366.6879 (F) +64.9.366.6838 Copyright©exporter

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ISSUE 30

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EXPORTER 1


> PUBLISHER’S VIEW

Say it like it is Mike Taillie EXPORTER MAGAZINE / publisher@exportermagazine.co.nz

Free hearing test for the government!

I

think the time is ripe for the government to take up one of the offers I see around town all the time for “free hearing tests”. Most messages to the government just fall on deaf ears. You may have read the Herald articles about the mass resignation of the NZ Trade and Enterprise’s China beachhead advisory board. I have read some of the feedback and all the reasons from NZTE on why it’s sort of okay. Things are NOT OKAY. This is another message that the government should take on board — we don’t need a bunch of government employees attempting to be business people. The two are two very different beasts and it appears that everyone is too scared to say it. Put simply, being paid to spend someone else’s money is very different from

2 EXPORTER

spending your own money. In a recent report entitled “Formal Review of New Zealand Trade and Enterprise (NZTE)” (Google this to get the full report) the government has again been given a message that this entity needs to be dismantled as soon as possible. As I have written before, let’s release back into the community these fine citizens. If exporting is what they are good at, then there will be a pool of exporters ready to fight for them. Here is what scares me: • NZTE has a budget of $194 million — that’s right, $194,000,000. • It employs 600 staff — you have to be kidding me. • 40% of its staff are located offshore — that’s 240 overseas. • NZTE describes itself as having “enthusiasm for change to drive efficacy and impact”. Holy smoke!

Surely we want more than enthusiasm — what about results? • “We are united in our goal to build capability, connections and market share…” Sounds like a statement from a start-up company rather than a well established, massively funded pubic service entity. • “Greater clarity around purpose and role”. I would have thought the mandate is simple: “sell more stuff overseas”. I could go on forever about the report’s content. I like to put it simply — NZTE’s time has come. Release the team, release the $194 million and give the tax back to those that are actually making money rather than those with “enthusiasm” and a “goal” to make money. [ENd]


> LETTERS

Letter to the editor Julian Bevis MANAGING dIREcTOR, MAERsk LINE NEw ZEALANd

issue 18 APRIL quARteR 2011

issue 18 APRIL quARteR 2011

export opportunities on every page

Step on it:

Growing SMEs This issue ComplimenTs of www.newzealandTradeCenTre.Com om

• • • •

The new international currency Pumping up your cashflow iPhone vs Android Social media 101

SOCIAL

MEDIA

lines must play the hand they’re dealt

T

he article Shipping lines hold all the cards (Exporter, March Quarter, 2011) correctly identifies a need for open communications

in fuel costs, is not set by lottery, or

When cargo is delayed, we work

by assessing how much we think the

closely with our customers to devise

market will stand. The formula, which

the best possible solution. Maersk’s

is available on our website, is based on

priority product upgrade service

data provided by independent parties,

provides shippers with urgent cargo

and a strong relationship between

and provides our customers with a fair

the option of paying a priority fee

exporters and shipping lines. The

and transparent pricing system.

to ensure they have first call on

headline, however, is somewhat

With respect to sharing our profits,

unallocated space in any given vessel.

unfortunate — as are comments like

I do not remember a similar call for

This gives our customers choice,

the lines “call the shots” and can add

exporters and freight forwarders

and it ensures we give priority to

“pretty much anything they like” to

to share our losses in 2009, when

the most valuable cargo. We simply

the bill.

Maersk’s container operations posted

cannot afford to provide unused

a loss of more than $2 billion. While

(hence unpaid) capacity, and the

Maersk does business, nor indeed

the company was back in the black

volatility of supply and demand for

how any rational organisation would

last year, this was largely due to our

commodity products makes it hard to

behave in a highly competitive and

success in cutting costs. Rates on

achieve a perfect match.

economically efficient market.

many trades remain unsustainably low,

These comments do not reflect how

Consider the article’s five “key takeaways”: bunker fuel surcharge is increasing; lines need to start sharing

The final key takeaway is that

and future volumes continue to be

shippers should book space as

difficult to predict.

soon as they know they are going

As a result, vessel space is

to need it. I agree wholeheartedly.

their profits with exporters and freight

somewhat tight. Lines have taken a

Shippers and carriers alike need to

forwarders; capacity is short; low-value

financial battering over the past couple

be prepared to sacrifice the potential

cargo is getting “bumped”; and

of years, and are understandably risk-

short-term gains associated with the

shippers should book space as soon as

averse when it comes to committing

old style of brinkmanship in favour

they know they are going to need it.

capacity. However, Maersk last month

of greater certainty on both sides of

announced schedule changes that will

the deal. Ultimately, this will help to

come as a shock to any motorist.

increase the total capacity available for

create a more secure supply chain,

Maersk’s bunker adjustment factor,

New Zealand shippers, and strengthen

and a stronger, more sustainable

the mechanism by which Maersk

New Zealand’s links with the region’s

business model.

adjusts charges to reflect changes

major hub ports.

That fuel prices are rising will not

[ENd]

EXPORTER 3


> MARKETS

Beyond Ramayana and Mahabharata:

Unlocking India It can be a costly and time-consuming market to tackle but for patient and persistent exporters, India is a land of many rewards. [By Virginia McMillan]

A

couple of weeks getting in front of potential clients in India is enjoyable but exhausting work, says architect Ashley Allen, a veteran of more than 30 business trips to the subcontinent. And once you get on top of the backlog at home, you may well be asked back to India to advance a deal.

4 EXPORTER

kEy TakEaWayS T > Friendship and trust go a long way to cementing business relationships. > Err on the side of politeness and respect for seniority. > Partnerships with kiwi businesses already active in India are a good option. > Indian nationals, in India and New Zealand, have valuable skills, knowledge and contacts. > Expect progress to be slow and bureaucracy difficult.


It will be the last thing you feel like doing, but you have to go, says Allen — it’s essential for the relationship. Many who know India well agree with Allen when he says businesspeople there want to know the “real person” and appreciate warmth, friendliness and trust, as well as a good product or service. BRiDGiNG THe CulTuRAl DiviDe Allen has also learned the power of

cricket to break the ice and bridge the cultural gap. Auckland-headquartered Patton Group is gradually infusing some New Zealandness into its Indian subsidiary, formed in 2007, and already grown to 18 staff and $3 million turnover. CEO Sameer Handa says regular visits reinforce expectations of doing business in a straightforward, transparent and fair way, with good governance. Barriers of seniority can begin to

break down by asking staff to use first names instead of the usual “Mr”, says Handa. Auckland-based marketing consultant Wenceslaus Anthony advises exporters new to India to identify the decision-maker in Indian firms they are targeting. Ensure the New Zealand representative is senior, well-presented and not too ready to call a spade a spade, because politeness is valued, says Anthony, who emigrated from

EXPORTER 5


India 12 years ago and now chairs the India New Zealand Business Council. Allen suggests a would-be exporter take a holiday as a first step in India to get to know the culture.

“India is keen to have New

Zealand companies work in mining, IT, energy, food production, logistics, education, wood, poultry and cement.

Auckland-based marketing consultant Wenceslaus Anthony

products and to make contacts. Recruiting top salespeople then

Patton Group CeO Sameer Handa, an Indian-qualified engineer, says it took more than 18 months of regular visits researching the market to find a trustworthy consultant with the right experience. A small importer of the types of refrigeration products Patton wanted to sell in India, the consultant held office in industry organisations and was well regarded and connected. He eventually sold his firm to Patton, became its first employee in India and now sits on the board. Finding the right local person is critical and “can make or break you” in India, says Handa. Before making the appointment he had travelled the length and breadth of India, often accompanied by Patton’s chairman, meeting dozens of key people in a bid to quantify the potential demand for the company’s

6 EXPORTER

headquartered marine research

proved a challenge as many were

consultancy, Mead often travelled to

more attracted by European or US

India in the early days but now several

multinationals. This means putting

of the 30 staffers develop and oversee

effort into branding, through

projects there.

trade shows and advertising, for example, says Handa. As well as continuing to visit

COsTlY iN TiMe India has been a costly investment in

India three times a year, he takes

terms of time but now produces about

part in trade missions and other

20% of turnover.

high-level business gatherings.

The bureaucrats have “hundreds of steps for everything”, says Mead.

fiRsT PORT Of CAll New Zealanders can get access to

Once committed to the country, partnering with a New Zealand player that already has an Indian presence is a good idea, he says. As well as providing introductions, this helps share the travel demands around more people. Walker Group recently formed an Indian company with Kiwi engineering practice Stephenson & Turner. This gives Walker’s architects access to airport work and Stephenson’s engineers entry into India for the first time. Recently Walker Group found a freelance marketer able to link the firm with a wide range of contacts. Handa, an Indian-qualified engineer, says it took more than 18 months of regular visits researching the market to find a trustworthy consultant with the right experience.

As a founder of the Raglan-

successful Indian businesspeople by joining Trade & Enterprise’s India Beachheads programme, Walker Group’s Allen points out. He has found their quality, free advice helped to accelerate business activity.

Marine research consultancy ASr’s Shaw Mead says India has been a costly investment in terms of time but now produces about 20% of turnover. The bureaucrats have “hundreds of steps for everything”.

NZTE is a first port of call for country and market data and advice; the Asia New Zealand Foundation and Victoria University, too, have many resources on Kiwi exporters’ experiences in India (see “war stories”). Themes include: • opportunity • high regard for New Zealanders • risk and corruption • multiple bureaucracies, regulation and delay • price competition • the value of identifying an Indian state as a first centre of activity • accessing the skills of Indian nationals living in their own country or in New Zealand • highly skilled and technologically savvy workers with a lot of choice of employer and not necessarily a lot of loyalty • the importance early on of having people on the ground — employees, joint-venture partners or trusted agents or distributors • networking here and in India with like-minded Kiwi businesspeople. ASR’s Shaw Mead mentions some of the above issues when discussing his company’s experience in India since the late

“There is a lot of ‘baksheesh’ going on, but we have taken a position we are not going to go down that road and therefore it takes a lot longer. “The big companies do the same thing and that is what they find — it can add another couple of years.” India is keen to have New Zealand companies work in mining, IT, energy, food production, logistics, education, wood, poultry and cement, for example, says Wenceslaus Anthony. It is a nation hungry for education and technology, he says. Green technology innovator EnergyMad might have had an India success story but the recession, and a fall in the carbon price that took the incentive out of development work, ensured otherwise. The company, known for its low-energy lightbulbs, was an India Beachheads programme participant for a short time. Founder Tom Mackenzie says regulation proved difficult. Other traps in India, according to Victoria University research, include the “not uncommon” failure of distributor arrangements. Patton’s success after initially timeconsuming on-the-ground enquiries says much about the value of due diligence. [ENd]

1990s. A highly qualified Indian-born director who lived in New Zealand and worked in the company, then returned to India to represent it there full-time, has been a crucial builder of the company’s success.

VIRGINIA McMILLAN / wrITer Virginia is a freelance journalist specialising in business and health stories. She has worked as a reporter, sub-editor and editor and as assistant editor at The Independent.


Figuring out India

Trade talks

• NZ exports to India in the year to October 2010: $902.3 million • Main products: coal, wood, dairy, machinery, fabrics, skins, iron and steel, aluminium, wood pulp, fruit and nuts • India’s imports — $430 billion; GdP growth — 8.8%; population — 1.2 billion • Hindi, the national language, is spoken by 30%, but English is the language of business • Indian community in NZ: 100,000 people Source: MFAT, Statistics NZ

India welcomes investment in agri-processing, food processing, and post-harvest cold storage and logistics, says India’s Minister of commerce and Industry, Anand sharma.

location, location, location

The NZTE website features India news, “doing Business in India”, market intelligence, case studies and a country brief. NZTE has offices in New delhi and Mumbai, and a consul General & Trade commissioner in New delhi.

State-wise industry opportunities: The many states and cities is bewildering to the newcomer. states’ suitability for various industries is described on the Indian government website at: india.gov.in/outerwin.php?id=http://business.gov.in/ starting_business/index.php (short link: bit.ly/jdy6UX)

Main cities: • Mumbai • delhi (capital, New delhi – within delhi metropolis) • Bangalore • kolkata • chennai • Hyderabad • Ahmedabad • Pune • Gandhinagar

maerskline.com

New Zealand and Indian ministers have agreed to aim for a bilateral free trade agreement by March 2012. High tariffs may be charged but have been reducing in recent years, says MFAT.

War stories, contacts, facts New Zealand Trade & Enterprise

Asia New Zealand Foundation comprehensive web page of articles and resources with a focus on business in India: www.asianz.org.nz/our-work/action-asia-business/ action-asia-insights/india (short link: bit.ly/ljdkNq) key websites for business people interested in India collated on this page: www.asianz.org.nz/our-work/action-asia-business/doingbusiness-asia/india (short link: bit.ly/jctnTg)

Victoria University research download report ‘Building a sustainable competitive advantage for New Zealand service firms in Asia: spotlight on china and India’, here: www.international-services-research.vuw.ac.nz/reports. html (short link: bit.ly/jQdRVs)

Creating opportunities in Global commerce Wherever you can find an opportunity , chances are that Maersk Line can take you there. With 500 ships, 46,000 ports of call, and 35,000 dedicated people in more than 125 countries, we provide you with a second-to-none global service network; just so you can take the best of New Zealand to the world.

Maersk New Zealand Limited · The CPO Level 3, 12 Queen Street · Auckland · New Zealand T 0800 MAERSK (623775) · F +64 9359 3488 · E nezsalins@maersk.com

MAE_Line_180x120_NZ.indd 1

22-06-2010 12:13:05

EXPORTER 7


> E X P O R T E D U C AT I O N

zen The

of export education

Footslog and network long and hard, or fine-tune your export knowledge with concentrated study? There are many routes to becoming an expert exporter. [By Virginia McMillan]

P

ancake manufacturer Van Dyck Foods may be celebrating its early successes as an exporter, but it’s also worrying about “going in blind” to new territories very different from home. The New Plymouth family business is trebling plant capacity and shipping regularly to Singapore and Australia, says director Inge Vercammen. She has followed all the advice normally given to would-be exporters:

8 EXPORTER

kEy TakEaWayS T > Opportunities to network and upskill can be found via many regional and main centre business and export organisations. > Tertiary qualifications in export have been slow to take off in New Zealand. > “Give it a go” kiwis sometimes well behind their global competitors in their knowledge of export disciplines. > companies can apply for subsidies toward the cost of a programme to develop capability.


EXPORTER 9


do your homework, network with experienced fellow businesspeople, commission expert market research on countries of choice, attend export seminars. Trade shows are also on the agenda. But Vercammen feels she has a lot to learn. And she doesn’t want to waste more time fruitlessly searching the internet for offshore information & contacts. Brett Gardner, who already has a successful importing/reselling business in Marton, similarly is keen to bypass years of trial and error with study and mentoring via the New Zealand School of Export. Now launching the Revilution range of squash rackets and having them manufactured in China, he plans to study exporting in a flexible, focused way, parttime in his own time, and end up with a diploma in international trade. Yet relatively few Kiwis in export businesses are committing themselves to a fully fledged export qualification. lACk Of skilleD PeOPle Export New Zealand executive director Catherine Beard says exporters gripe that they can’t get enough highly skilled people who are prepared to travel. There will be sufficient new recruits only if exporting gets on businesses’ radar as a career — and at the moment, it’s not, Beard says. Mike Hutcheson, a director of importexport company Scarborough Fare and exporter Lonely Cow Wines, says an export qualification would be useful in a new recruit, but not the be-all and end-all.

Mike Hutcheson, a director of import-export company Scarborough Fare and exporter Lonely Cow wines, says an export qualification would be useful in a new recruit, but not the be-all and end-all. Doing the hard work of plane-hopping to check out markets in person, listening to “war stories” of fellow Kiwi exporters and attending practical workshops on other nations’ business systems are also valid ways to seek opportunities, says Hutcheson. This can take years to bear fruit, he adds. The CEO of Auckland-based furniture designer/supplier UFL, Ray Reesby, says the company takes part in courses offered through New Zealand Trade & Enterprise, among others. “So we are ‘export training minded’

10 EXPORTER

but haven’t aimed at formal qualification, nor [do we] intend to at this stage,” he says. Beard reckons most small to mediumsized businesses largely get their needs met by the short courses and workshops provided by the likes of the Business New Zealand “family”. (Export New Zealand is a member.) Available in the main towns and cities, such courses range from one-day introductory seminars, to meal-time gatherings with experienced guest speakers, to intensive workshops on country specifics or detailed export know-how.

“This was a great endorsement of the programme’s accuracy and had a logical connection to my work and employer.” The New Zealand School of Export is one of two providers of diploma-level qualifications. While not part of the student-loan system, the providers are registered to accept New Zealand Trade & Enterprise capability-development vouchers. School of Export director Romuald Rudzki says the school has struggled as a result of the recession. But he says since opening day in 2007, hundreds of people have taken short courses at the school, New Zealand’s only

The New Zealand founder of international knowledge management firm Sysdoc, Katherine Corich, would like to see our universities team with some of the great global institutions to create a programme offering networking & alumni possibilities offshore. New Zealand institutions need to emphasise that language skills are key to success in foreign trade, she says. GlOBAl liNks, lANGuAGe skills The New Zealand founder of international knowledge management firm Sysdoc, Katherine Corich, would like to see our universities team with some of the great global institutions to create a programme offering networking and alumni possibilities offshore. They also need to emphasise that language skills are key to success in foreign trade, she says. Many young Europeans in business speak several languages. “It is a key to true globalisation.” Networking and postgraduate-focussed study can be useful, but what counts, says Corich, is deep understanding of the cultural norms, language, trading models and likes/dislikes of the nations you do business with. “Fonterra is a great example of how this can be done but, sadly, not enough of our enterprises fully understand the importance of culture, localisation and language.” Greg Canty is a Fonterra employee who has studied international trade. Canty says he found the Palmerston North-based New Zealand School of Export’s diploma of international trade “great value for money and very relevant”. It means companies don’t have to provide all the training, while for employees there is the reward of an internationally recognised qualification covering a wide range of disciplines, he says. “My final assessment mirrored a real-life market entry undertaken by Fonterra into China,” says Canty.

accredited International Association of Trade Training Organisations (IATTO) provider. Fifteen have graduated with a diploma of international trade and 26 are studying toward the diploma. The GST-inclusive cost per module is $1334. New Zealand export companies need to be on an equal footing with their global competitors, says Rudzki. In most cases, these will be people with qualifications in exporting and many will have been through IATTO courses, he says. Meanwhile, the Export Academy of New Zealand took on its first students last year after a two-year wait for bureaucratic sign-off. It has a bachelor’s degree in export enterprise in its sights. The academy, headquartered in Havelock North, offers a New Zealand Qualifications Authority-accredited certificate and diploma in export enterprise. CEO Murray Painter says the recession has made employers reluctant to support workers on a full-time programme so none has yet completed a full qualification. Students hold down export jobs and choose three-month modules to take extramurally ($1250 per module), with some on-campus components. He is expecting about a dozen enrolments in the next intake. [ENd] VIRGINIA McMILLAN / wrITer Virginia is a freelance journalist specialising in business and health stories. She has worked as a reporter, sub-editor and editor and as assistant editor at The Independent.


Export as a course of study

do it yourself

Export Academy of New Zealand

New Zealand School of Export

Export New Zealand

www.export.ac.nz

For an exporter education event near you: www.exportnz.org.nz/trainingand-events

www.exportacademy.ac.nz/ distance learning with some study on campus at Havelock North, full- or part-time, NZQA-registered certificate of Export Enterprise modules: • Export Accounting • Banking & Trade Finance • Export Law – An Introduction • History of New Zealand Exports • New Zealand Trade Policy • Introduction to supply chain & Logistics • International Business communication & Technology • Introduction to sales & Marketing

distance learning, exams timed to suit, growth programme (no exams), IATTO-accredited certificate of International Trade modules: • Global Business Environment • International Trade Research • International Marketing • International Trade Logistics diploma of International Trade Modules: • International Trade Finance • International Market Entry • Legal Aspects of International Trade • International Trade Management

diploma of Export Enterprise – certificate modules with further options: • Trade Finance & Banking • supply chain & Logistics • Trade statistics • Export sales Management • International Law • Export Procurement Management • weightless Exports

As the brand communication agency behind the design of Exporter Magazine, we’re proud to support exportable Kiwi brands. If you require help with your brand communications, you don’t have to go far.

New Zealand Trade & Enterprise www.nzte.govt.nz For a comprehensive range of support material: Export guide and questionnaire; resources and services; regional development organisations; market intelligence capability development voucher system: www.nzte.govt.nz/developknowledge-expertise/businesstraining-services/pages/ business-training-services. aspx#Capability-DevelopmentVouchers (short link: bit.ly/jEuddp)

A university degree Auckland and waikato Universities are among those offering part-time MBAs and other programmes, including short courses, for working managers.

aDvertising & ProMotional collateral. Direct Marketing. Pub lications. Packaging . Web.

Please contact Mike on 09 631 1421 or email mikec@cclgroup.co.nz

cclgroup.co.nz

EXPORTER 11


> EXPORTER PROFILE

From small to global:

Invivo Wines’ export strategy Invivo wines sailed into a perfect storm in its first year of business. Three years on, its wines have reached 10 export markets, and counting. [By Mary MacKinven]

w

hen a business has no advertising funds to establish new markets, smart marketing is

the only answer. Invivo Wines New Zealand has shown that being small and bold can be an advantage, getting its products into 10 overseas markets even in the thick of the global financial crisis. The secret: strategic partnerships that led to wine reviews and global attention.

12 EXPORTER

kEy TakEaWayS T > clever marketing and strategic partnerships have made up for lack of cash. > when you can’t compete on price you need a unique position in the market. > savings and an angel investor were essential before banks would take an interest. > Mentors and a range of banking facilities help with contracts and terms of trade. > Family, friends, mentors and regular exercise help maintain sanity. > Having distinctive roles keeps the partners’ relationship stable.


“One of the toughest things in

exporting is producing a certain volume, and this year we are doubling in size. You can get an account that might take a full year’s volume in two months.

Tim Lightbourne, co-founder Invivo Wines

Its marketing success has been recognised with the AMCOR Innovation in New Zealand Wine Marketing trophy at the 2009 Hospitality New Zealand

Show, a year after the company started. One of Invivo’s recent partnerships is an exclusive on- and off-trade distribution agreement for the UK and Ireland with Spanish firm Grupo Codorníu. Grupo Codorníu is one of the world’s largest producers of sparkling wine with wineries in Spain and Argentina. Invivo co-founders Tim Lightbourne and Rob Cameron, both aged 35, were schoolmates. While both working in London, they became frustrated with life as employees.

So in 2006 they hatched a business plan based on Cameron’s expertise as a winemaker and Lightbourne’s marketing nous. But the 2008 timing of the launch of Invivo Wines wasn’t great. Says Lightbourne: “We had a strategy to sell into premium categories, so it was tough, with everyone saving their pennies. It was a lot of hard work travelling in New Zealand and overseas, standing in stores sampling our wines — which we still do.” They have one other person on staff, a commission-based representative for the North Island.

Invivo Wines NZ founders Tim Lightbourne (marketer) and Rob Cameron (winemaker) sampling inside the famous Harvey Nichols international luxury lifestyle store, “renowned for the breadth and depth of its exclusive fashion merchandise” in Knightsbridge, London in May.

14 EXPORTER


anything. anywhere. anytime.

No package is too small. No shipment too big. Time sensitive? No problem. From medical samples to New Zealand’s finest wines, we have the solution! With an unrivalled network that reaches 99.9% of the global economy, we are the experts in time and day definite door-to-door delivery of parcels, documents and freight. TNT congratulates Invivo Wines, winner of the TNT Express ‘Emerging Exporter of the Year’ award at the 2011 Air New Zealand Cargo Auckland Export Awards.

Please call 0800 275 868 or visit www.tnt.co.nz EXPORTER 15


self-fuNDeD Start-up funding was drawn from the partners’ savings, and the investment of an acquaintance, who is still a small shareholder. “With the financial crisis and a surplus 2008 vintage, we hit a kind of ‘perfect storm’. Finding banking support initially was quite challenging, to say the least.” Invivo struggled with no overdraft facility and no capacity for forward currency buying. It lost thousands on deals through unfavourable exchange rates against the US dollar, the pound, euro and aussie, making it difficult for the company to give good terms to customers. “Our mentor from Business Mentors [of New Zealand] had banking expertise and taught us how to work with banks and foreign exchange issues so we were ready to approach a new bank.” Invivo now has forward-buying currency support for up to 12 months, which has helped it gain trade credit insurance in seven countries. It has opened bank accounts in key markets to hold earnings until the exchange rate makes a transfer viable. “We report to [the bank] at quarterly meetings, which gives us structure.” From its first year of business in 2009, Invivo also had a Market Development Grant from New Zealand

Invivo wines has forwardbuying currency support for up to 12 months, which has helped it gain trade credit insurance in seven countries. It has bank accounts in key markets to hold earnings until the exchange rate makes a transfer viable.

Trade & Enterprise (NZTE) for travel to markets, for a brand ambassador and to finance a media campaign in the UK. Early on Invivo approached PricewaterhouseCoopers: “It gave advice and support and we still work with it for strategic advice,” Lightbourne says. iNTO THe fuTuRe By 2011, accolades have mounted up and growth has been more than 300% a year. Not that it’s been easy. In fact, Lightbourne says, he continues to earn less than he did 15 years ago. “It’s a longer-term thing; we want to build up a global company with our own ideas. “One of the toughest things in exporting is producing a certain volume, and this year we are doubling in size. You can get an account that might take a full year’s volume in two months,” Lightbourne says.

Winning awards in international business competitions helps with awareness and credibility, and running competitions aimed at consumers helps create interest. In May, Lightbourne and Cameron were in the UK schmoozing with television host Graham Norton, whom they contacted from New Zealand on hearing he liked sauvignon blanc. Only Invivo wines will be drunk during the next series of The Graham Norton Show (screening here on TV3). Lightbourne and Cameron also exhibited at the London International Wine Fair in May, then headed to the Venice Biennale 2011 54th International Art Exhibition, where they served Invivo at a bar for the VIP opening event in support of New Zealand artist Michael Parekowhai, at their expense. Creative industries are a focus of the company. “We can’t compete with old classics like French chateau and we can’t compete on price, so we have to have a different position in the market. For us, it’s arts, music and fashion, because that’s what we like.” sTAYiNG sANe Lightbourne and Cameron’s relationship works without effort, helped by their having distinct roles. That also sees Lightbourne in Auckland while Cameron is often in Marlborough and Central Otago, tending Invivo’s plots in five vineyards, or overseeing barrelling. Lightbourne says: “Rob and his wife had their first child a year ago, so spending time with his family keeps him happy. And getting out duck shooting… the first break for him for a while — so I guess that could be another way he is relieving stress.” Lightbourne credits a daily hour-long exercise regime with generating many of his business ideas. “It’s a good way to relieve stress. “And friends are always good to keep you grounded and talking about something different from wine.” [ENd] Invivo Wines was awarded the TNT Express Emerging Exporter of the Year trophy at the Air New Zealand Cargo Export Awards held at a gala event at Auckland’s Langham Hotel in June. MARY MacKINVEN / wrITer

From left: Invivo Wines NZ founders Tim Lightbourne (marketer) and Rob Cameron (winemaker) met UK television host Graham Norton of The Graham Norton Show screened in New Zealand on TV3 and for which Invivo is supplying wines.

16 EXPORTER

Mary has reported news for 20 years including as sole writer and editor of Business to Business monthly newspaper in Auckland, NZ, for six years. Now she combines freelance journalism with part-time writing at a business association in Auckland.


n o i s r e V l a t i g Di ! w o N e l b a l i a Av s k c a b t a h t k The boo . . . e v i r d t r o p ou r ex

In difficult trading times it is more important than ever to avoid making expensive mistakes. The NZ Export & Trade Handbook continues to provide exporters with a wealth of up-todate information that is invaluable in making the right decisions to achieve success in overseas markets. Rom Rudzki, Founder New Zealand School of Export.

Newly updated for 2011, the New Zealand Export and Trade Handbook continues to be a vital reference guide for Kiwi exporters and importers. Purchase on-line at www.exportandtrade.co.nz/zinio

www.exportandtrade.co.nz For advertising enquires contact Leanne Moss: email leanne@adrenalin.co.nz or phone (09) 477 0368


> GUTSY PEOPLE

Viewpoint Catherine Beard EXEcUTIVE dIREcTOR OF EXPORTNZ / cbeard@exportnz.org.nz

latest survey reveals good reason for exporters’ optimism

e

xportNZ’s National Exporter Outlook Survey (June 2011) has revealed that despite challenges out of their control – such as exchange rate volatility – Kiwi exporters still have good reason to see a bright future. According the survey, about half of our exporters are expecting profits will improve in the year ahead, with another 36% thinking they will stay at the same level.

18 EXPORTER

New Zealand still has a huge amount of growth potential, with distinct and unique advantages when compared to other countries. We need to focus on having a distinct point of difference and using our smaller sized companies to our advantage by being nimble and responsive to our customers. We can even overcome the tyranny of distance with smart use of technology and by focusing on high value goods where the profit margin makes cost to market

a footnote in the accounts. Not least of these advantages is our position in relation to the world’s fastest growing economies. The survey also revealed that for survey respondents, South East Asia, including China, has overtaken the US and UK/Europe as the second biggest export destination for Kiwi goods after Australia. This has occurred since the last National Exporter Outlook survey in November 2010.


It’s encouraging to see speed of

there for the taking for this Kiwi firm.

movement here, as the window

With significant orders to Indonesia

of opportunity New Zealand has

and Korea already in the bag, it now

with these fast-growing developing

has the largest agent in Europe and

nations will not be open forever.

America wanting to sell its paint.

Other countries are moving in due

This is just one great success story

to the size and fast growth of these

about one market niche. There are a

markets.

million niche areas ripe for exploiting

We do have first mover advantage

and becoming a global success story.

with China — now our second

Like Fine Art Supplies, it’s a matter of

largest trading partner — as the

finding that point of difference that

first developed country to sign

sets you apart from all others in the

a free trade agreement with this

world market.

highly significant nation. And there

We do need the world as our

still remain huge potential rewards

market. Our sights need to be firmly

to be reaped. The survey showed

focused offshore due to our small

that China, including Hong Kong,

domestic market. The average

is expected to offer the biggest

amount earned from exports by

potential for export growth (one firm

companies participating in the survey

anticipates 2000% growth!).

was $18.48 million, which would have

Now our sights are set on achieving

been significantly less had they had

an FTA with India. The value of our

a small domestic market of 4 million

Prime Minister’s recent trip to India

to sell to. The average export income

cannot be underestimated. By all

earned by surveyed companies was

accounts, the visit was a real success,

60 percent of production – which

cementing important relationships

leaves plenty of room for greater

and giving some real momentum

export earnings.

to the trade negotiations. Hon John

As an advocate for Kiwi exporters,

Key and his Indian counterpart have

it’s my job to try and make sure the

agreed on a target for achieving an

path to export success is as smooth

outcome by March 2012. This will

as possible. Highlighting bumps in the

hopefully encourage more progress

road is another good reason why we

from officials.

run this survey. It feeds into our lobby

Of course it’s not just about ‘where’ we can trade, but ‘what’. The ‘what’ brings me to another

work and our election manifesto — which I will soon be making public. The survey revealed some obstacles

one of our unique advantages — our

to export growth that need attention.

Kiwi innovation. Innovation is what’s

While some are outside our control,

carving out domination in some

there are some regulatory barriers

global market niches for many Kiwi

within New Zealand that are reported

companies. The obvious success

to be hindering exporters. Issues

stories of NZ firms dominating a

include discouraging compliance

global niche are companies like

requirements and slow movement by

Hamilton Jet and Gallaghers Electric

some government organizations —

Fence business, but there are also

such as NZ Food Safety Authority, NZ

interesting companies making great

Immigration, and NZQA, plus border

strides that are not yet well known.

controls between New Zealand and

Take Auckland’s Fine Art Supplies Ltd for example. This little-known firm has invented a world-first — the

Australia — including phyto-sanitary requirements. There is a role for the New Zealand

only educational kids’ paint that

Government to play in creating and

completely washes out of clothing. By

maintaining an export-oriented

focusing on a niche and developing a

economy.

point of difference, the world is now

importance of government assistance similar to last November. Most urgent is assistance for developing export markets, with 61 percent rating this highly, and 85 percent overall rating it high or of medium importance. Help with R&D rates second highest priority, with 25 percent rating it top in importance. There is of course still plenty that Kiwi exporting firms can, and are doing for themselves despite the less helpful issues like exchange rates and compliance costs. You only have to look at the success stories demonstrating this fact. As I see it, we have the smart thinking and innovation, and the rest of the world has the money to buy it from us. We may be a small country but it doesn’t matter. It’s the quality of our innovation, and the goods and services that we develop from our innovation, that’s key to dominating niches, exploiting FTAs and enjoying greater growth, success and standard of living. The year ahead looks bright, with 66 percent of exporters expecting an increase in export orders. By focusing on our strong points, commercialising our cleverness and maintaining the position of being world leaders in specific niches, we can continue to grow the pie and unlock a much wealthier future for New Zealand. [ENd]

Catherine Beard is Executive Director of ExportNZ www.exportnz.org.nz Survey background: 236 respondents in all participated in Export NZ’s June 2011 National Exporter Outlook Survey. Respondents operated throughout the country. 61% were manufacturers. 56% employed fewer than 50 staff, 32% had fewer than 20 staff, with 15% employing over 150 staff. For further information on the survey, please email cbeard@exportnz.org.nz

Survey respondents rated the

EXPORTER 19


> GUTSY PEOPLE

Viewpoint Gilbert Peterson EXPORT NEw ZEALANd ANd EMA

20 EXPORTER


In the beginning were trade missions

H

eading overseas on a holiday to explore parts hitherto unknown is nothing like going offshore on a search

trade mission to Vietnam earlier this year: “If you came here on your own, you would not get this.” Sir Ken was referring to the broad range of briefings, pre-arranged

for new markets for your products or

visits and meetings with eminent

services.

business people enjoyed by the

Forging a trading relationship

mission’s delegates, in the company

with a stranger can be daunting

of people whose business interests

enough. Add to that the pressure of

directly matched theirs.

going offshore for the first time with specific trade outcomes in mind. You want to make a great return

Among them were New Zealand Trade & Enterprise (NZTE) Beachheads Advisory Board

on your travel and time investment

members for Southeast Asia, all of

and deliver a lasting increase in

whom were well-connected senior

business. And, after a gruelling yet

directors; local bank economists and

fascinating expedition, it’s natural

lawyers; industry sector specialists;

to want the return home to be all

and government officials, who can

smiles and a feeling of “mission

be critical contacts in centralised

accomplished”.

command economies.

Maximising the chances of

NACLO business development

meeting these objectives calls for

manager Mike Petersen said: “We’ve

careful preparation.

come from zero to a level of activity

In my experience of managing modest-scale trade missions to Dubai, Guangzhou and Vietnam, delegates report over and over again the huge value of being part of such a group. Trade mission delegates have common goals and sinvaluable advice, contacts and other information to share. One delegate to Dubai reported: “The most valuable thing to me was networking within the [mission] team.”

in the fastest possible time, and to do this we would have spent far more as an individual company than we’ve spent on this trip,” said A trade show is a very helpful focal point for a trade mission. In Guangzhou two years earlier, activities similar to those organised in Vietnam were timed to coincide with the Canton Import Export Fair. When not operating their exhibit, business matching, or at briefings or on-site visits, the show is of intense

POWeR Of MANY

interest in its own right, where like-

As a group they can go to places

minded people from a hundred and

they would not be able to access

one countries meet.

as individuals, and they get to meet

So it proved in Guangzhou.

business people who would never

Delegates partook of cocktails

normally be available to them.

— and networking — hosted

A trade mission’s value for the

by NZTE; briefings; business

exporting newcomer and old-hand

matching meetings; site visits

alike is way ahead of anything a lone

to manufacturing plants (auto

trader can hope for.

electronics, for example), a

Long-time solo Vietnam trader

healthcare facility catering to

Ron Hendl said: “I like the concept of

medical tourism, a university and

group travel and on this trip I made

a property development; and

a lot of contacts I wouldn’t have

an official banquet hosted by

otherwise.”

Guangzhou city.

Sir Ken Stevens, founder and CEO

The exhibitors at the fair did good

of Glidepath Group and chairman

business, taking advantage of keen

of Export New Zealand, said after a

Chinese interest as well as the huge

numbers of global traders attending. The Canton fair is, indeed, a vast meeting place. OPPORTuNiTies On two missions to Dubai, in 2007 and 2008, delegates promoted their products at the BIG 5 Construction Expo at a shared EMA stand at an extremely affordable rate. One struck an order for US$290,000 and another had a $200,000 machine order. Delegates went on construction site tours to DubaiLand and Meylan, attended a networking function, took part in vitally important business matching and attended a briefing hosted by the Dubai Chamber of Commerce and Industry. Highlights included a visit to the Emirates Palace Hotel in Abu Dhabi, and a briefing by Atkins, the UK architect and engineering firm responsible for many of Dubai’s ambitious buildings and metro rail system. In the words of one of the delegates to Dubai: “Industryspecific business-to-business matching/introductions are always the most valuable opportunity, using the ‘pulling power’ of dignitaries or politicians.” The success rate of missions offshore is greatly enhanced when led by a cabinet minister, a mayor or senior Kiwi business leader. EMA and Export New Zealand have been strong promoters of the view that when government ministers head overseas, they should always take along a group of business people. Too often, however, the gatekeepers of these visits are government agencies that populate them with businesses solely from their own closely guarded lists. [ENd] Gilbert Peterson is communications manager at the Employers and Manufacturers Association including its Export New Zealand division

EXPORTER 21


> INSURANCE

Trade credit insurance’s

revival

The private trade credit insurance market has regained momentum as underwriters’ appetite for risk returns. Meanwhile exporters face growing pressures to protect their ledgers from bad debts. [By Yoke Har Lee]

T

rade credit insurers are experiencing a revival in business on the back of growing awareness among New Zealand exporters

to seek cover for the possibility of overseas buyers defaulting or going bust. There is also growing pressure on exporters to secure export credit protection as banks sharpen their focus

22 EXPORTER

kEy TakEaWayS T > Premiums for trade credit insurance have started to ease. > Getting trade credit insurance can help leverage cashflow. > NZ Export credit Office (NZEcO) is more tuned-in to deals shunned by private insurers. > NZEcO has been given the mandate to operate its scheme till June 2014. > NZEcO still has capacity to fund smaller exporters looking for cover.


“I had an enquiry from

someone who has been trading for years. He never used to make trade credit insurance enquiry. This could possibly be due to the need to gain access to financing.

Tony Redwood, Founder, Redwood Trade Credit Insurance

on assessing credit risks as well as improving the quality of their balance sheets. Trade credit insurance underwriters have also found new appetite for risks since the global financial crisis swept the globe in 2007 forcing many underwriters to shrink their risk portfolios. Tony Redwood, founder of Redwood Credit Insurance Ltd, notes that premiums for trade credit insurance are currently more realistic. “Underwriters are certainly more responsive to deals put before them.” Some underwriters who were completely off providing cover for business deals in Fiji are slowly starting to look at deals being presented, Redwood says. He cautions that underwriters are still imposing tough conditions before taking on business in the Pacific and would only consider deals where the buyer has a reasonable trading history or is a blue chip company.

“Cover is available on

a case-by-case basis. It depends on which country or countries you are dealing with, what are the risks, who your buyers are. we need to understand what is being sold, the payment terms and the quality of your buyers.

Michael Kayes, Trade Credit Manager at QBE

24 EXPORTER

GROWTH During the peak of the global financial crisis, trade credit insurance premiums skyrocketed by as much as 60% as trade credit insurance companies aggressively trimmed their business portfolios. Some completely withdrew from providing cover for selected sectors such as wool and construction while others avoided taking on business with companies they have no history with. QBE’s New Zealand manager for Trade Credit, Michael Kayes says: “The market is certainly showing signs of renewed interest in trade credit insurance, driven mainly by the banks.” He has been seeing a definite growth in business enquiries from new clients who have never had trade credit insurance before. They come from a good cross section of industries.

During the peak of the global financial crisis, trade credit insurance premiums skyrocketed by between 20 and 60% as trade credit insurance companies aggressively trimmed their business portfolios. Redwood is also seeing a similar trend. “I had an enquiry from someone who has been trading for years. He never used to make trade credit insurance enquiry. This could possibly be due to the need to gain access to financing.” Barry Squires, head of international business at Westpac says banks provide trade finance based on the merit of each deal. “Occassionally we will make it a requirement – mostly when they are dealing with risky parts of the world.” He adds that banks encourage their customers to understand their risk and would, where warranted, ask them to look towards additional risk protection through trade credit insurance. “Our exporters are dealing with an extended supply chain exposure – not only their customers but their customers’ customers. Their markets are faced with way more difficult conditions than ours,” Squires says. While risk appetite has returned, insurers are still hawkish. “Cover is

Barry Squires, Head of International Business, Westpac

available on a case-by-case basis. It depends on which country or countries you are dealing with, what are the risks, who your buyers are. We need to understand what is being sold, the payment terms and the quality of your buyers,” Kaye says. NZeCO Increasingly, the New Zealand Export Credit Office (NZECO), trade credit insurance companies and banks are conducting joint marketing to raise awareness on the availability of government support for export credit facilities. The NZECO’s manager Carmen Moana says her office has been getting more referrals from banks, some from the New Zealand Trade and Enterprise and also from the Ministry of Foreign Affairs and Trade. The NZECO early this year received a renewed commitment from the government to extend its current operation until June 2014. This will enable the NZECO to offer a range of export credit cover to meet areas where private sector trade credit insurers are not able undertake the business. Moana says her office has been working closely with other private sector suppliers to be more pro-active in marketing the NZECO’s facilities. The NZECO has been doing a lot more road shows to promote its services. Since February 2009, the NZECO has issued 85 policies for deals under the $200,000 region. This makes up 47% of all policies issued and is primarily for short-term trade credit guarantee. “But we have also issued four policies covering payment terms longer than one year, and seven bond guarantees with exposures of less than $200,000,” Moana says. In one case example, the NZECO helped a pet food company K9 Natural


Food, who could not gain typical access to trade credit financing. Since the NZECO’s intervention, the company has been able to grow a lot quicker,” Moana says. K9’chief executive Calvin Smith says he is a great fan of NZECO. K9 was unable to get private sector trade credit insurance despite his customer in the US being a NASDAQ –listed company with good credit rating. The customer had asked for tougher credit terms which would have stretched the company’s cashflow. “The client is huge relative to what we are dealing with. We’re pretty small. Since we have done this trade last year, our sales have grown 300%. I highly recommend the NZECO to any exporter.” The NZECO still has capacity to help fund more export deals with the government’s extension of the $740-million facility for the export credit insurance funding, Moana says. While the market has renewed its buzz, trade credit insurance is still an expensive tool to protect an exporter’s ledger. Most trade credit insurers will not be inclined to look at deals under $1 million, one-off deals or those selling to a single client.

Carmen Moana, NZECO Manager

Redwood says the government’s intervention, through the NZECO, is timely but somewhat misses the real needy segment. He feels the government should really focus on SMEs with export turnover of less than $200,000. “Underwriters are looking at the

Smaller companies operating in the $300,000 to $500,000 region often find it tough to deal based on Letters of Credit from their buyers He says New Zealand companies have yet to fully factor in the cost of premiums attached to trade credit insurance. “Trade credit insurance has been around since the 1960s but trade credit insurance doesn’t seem to be something that’s factored into the cost of doing business in New Zealand. In Europe, trade credit insurance is seen as a necessary business cost,” Redwood says. Kayes from QBE says there is certainly more awareness in the marketplace among exporting companies about the need to protect their ledgers. Premiums have softened slightly although they are not back at pre-global financial crisis levels, he says. [ENd]

minimum trade of around $1 million. If you are an SME, you have got to fit into that parameter or the exercise can be very expensive. The government’s intervention, I think, needs to be extended to the smaller turnover companies,” Redwood says.

YOKE HAR LEE / wrITer Yoke Har was formerly a senior Reuters correspondent, a Business Herald writer, and personal finance editor for a regional media company. Most recently she managed internet and intranet content for a global US consultancy.

INCREASE YOUR EXPORT SALES AND

MINIMISE YOUR RISKS

The Export Credit Office works closely with exporters and financiers to assist them to manage risk and capitalise on trade opportunities. Its guarantee products are:

N EW Z EALAND E XPORT C REDIT O FFICE

„

Export credit guarantee (for nance terms beyond 1 year)

„

Short term trade credit guarantee

„

US surety bond guarantee

„

General contract bond guarantee

„

Short-term working capital guarantee

For more information or application forms visit: www.nzeco.govt.nz | 04-917-6060

The New Zealand Export Credit Office (NZECO) provides financial guarantee products for New Zealand exporters. Our products help these exporters manage risk and capitalise on trade opportunities around the globe. As well as working directly with exporters, we work closely with commercial financiers in New Zealand and offshore to support and improve the competitiveness of exporters. NZECO is currently located in the Treasury and obligations to third parties are guaranteed by the New Zealand Government.

EXPORTER 25


> CURRENCY

Buying

time with hedges

Does New Zealand need a shift in monetary policy? The strong kiwi has eroded gains from record terms of trade with Australia and China, providing little steam for an economy still coming out of recession. [By Bob Edlin]

A

s the exchange rate continued to strengthen against most major currencies in mid-June, the New Zealand Manufacturers and Exporters Association pressed for the Reserve Bank Act’s objectives to be changed to include the tradable sector growth. Its chief executive, John Walley, points to the weak growth in the economy coming out of a recession despite record terms of trade and strength in two of our major trading partners, Australia

26 EXPORTER

kEy TakEaWayS T > BNZ forecasts further strengthening of the New Zealand dollar. > Exporters’ big lesson is that you can never be sure about the exchange rate. > without forward cover, you are gambling. > Hedging is not a moneymaking tool.

and China. The high dollar had been made worse by interest rate differentials between New Zealand and Europe and the United States. Other countries have taken action to lower their exchange rates, whether through quantitative easing in the US and UK, capital controls in Canada and Brazil, direct currency management in China and Singapore, or regulatory prudential mechanisms in Turkey and elsewhere. “We must also act to protect our tradable sector,” Walley says. Talking the kiwi down didn’t work.


Forex traders ignored Reserve Bank governor Alan Bollard’s advice that that they had over-reacted to his June decision to keep the official cash rate at an all-time low 2.5%. The New Zealand dollar’s strength has been driven by strong international prices for our commodity exports. The other driver is the weakening of the US dollar. The greenback is at a 40-year low against its major partners. The New Zealand government’s borrowing programme also does not help. The effect is the kiwi’s three-year high against the Trade Weighted Index. The BNZ was among analysts forecasting more strengthening of the New Zealand dollar against major trading currencies. At that time it forecast a gradual appreciation against the Australian dollar as movements in relative growth and interest rate differentials moved in favour of the kiwi. The relatively positive domestic growth outlook was expected to support the kiwi/ greenback over the coming 18 months: ebbs and flows were likely but its New Zealand dollar/US dollar forecasts did not contain a sustained dip below US0.7700 over the period. MORe uPsiDe “We see upside movement generally for our currency over the remainder of the year,” said BNZ chief economist Tony Alexander. He expects high volatility at times, because of influences like fluctuating risk-tolerance surrounding European debt in particular. “But also one should keep an eye out for bouts of concern about the sustainability of high commodity prices.”

“We take forward cover from time

a different exchange rate”, Carden

to time and to varying degrees,”

says. “We forward-purchase cash, or hedge and do those sorts of things that most exporters do to try to get the numbers a bit more predictable and remove some risk from the business.” When the exchange rate was especially strong about four years ago Sonar6 invested overseas in brand advertising and building its sales force. “If you are going to start creating losses in your business as you invest, then that’s a good time

he says. “You really are trying to protect yourself against something you can’t live with. “That’s what most people do — it’s silly to be gambling.” CRYsTAl-BAll GAZiNG But exchange rate management involved crystal ball gazing much of the time about where the exchange rate is headed, he acknowledges. “You get it right sometimes, and you don’t other times.” The one exchange rate lesson he has learned is that nobody can be sure of anything. “You ask your exchange rate advisers what it’s going to do and it does the opposite.”

we forward-purchase cash, or hedge and do those sorts of things that most exporters do to try to get the numbers a bit more predictable and remove some risk from the business.

Michael Carden, Chief Executive, Sonar6

Even so, his company gets daily information from its forex advisers about what the exchange rate is doing and what is projected to happen. Sonar6, in Auckland, makes the world’s only graphics-based performance review and succession planning software. Most of its business is in the US. The company’s chief executive, Michael Carden, says Sonar6 is in a fortunate position being a software

“You really are trying to

protect yourself against something you can’t live with. That’s what most people do – it’s silly to be gambling.

Graeme Manly, General Manager of Southland-based Southwood Export

business. “We create software and then we deliver it via the internet. Our only costs largely are fixed R&D costs. If it costs us, say, $5 million to write a piece of software, then we just need to get $5 million back from selling it to break even, and every subsequent sale effectively is profit.”

Any exporter who didn’t have

If selling greenlip mussels, for

forward exchange cover would be

example, a company might reach a

suffering in that climate, according

point where costs exceed the price at

to Graeme Manly, general manager

which you can sell, whereas Sonar6

of Southland-based Southwood

simply has to sell more.

Export. His company exports

The company tries to get its

forestry products to Japan but deals

exchange rate cover predictable, “so

in US dollars.

you are not being hit every month by

28 EXPORTER

“You must recognise that

hedging only buys you time until you can make suitable long-term business planning decisions.

Peter Cavanaugh, Senior Client Adviser at Bancorp Treasury Services

to do it, but we’re not necessarily doing that this time around…” Peter Cavanaugh, senior client adviser at Bancorp Treasury Services, says exporters selling to Australia would be doing well, but those exporting to anywhere else “will be struggling against a strong currency”. The most obvious way to lessen the effects is to have a regime in place for hedging against adverse currency fluctuations. “But you must recognise that the hedging only buys you time until you can make suitable long-term business planning decisions,” Cavanaugh says. “For example, you might look at changing your price, or changing your source of materials, or changing your supplier, or changing your point of manufacturer. Hedging isn’t the be all and end all. It’s a means to an end.” Cavanugh emphasises that hedging is a risk management tool, not a money-making tool, and it is not the panacea for the forex risk that is a major consideration for all of New Zealand’s exporters. [ENd]

BOB EDLIN / wrITer Bob, a journalist for more than 40 years, writes about trade, agri-business and the economy. He has been editor of NZ Truth, and managing editor of the National Business Review.


Mass, velocity and energy equals Hamburg Süd. Success in shipping is all about attitude. That’s the energy part – the sheer enthusiasm which inspires the way we go about things. But we have the critical mass too – the modern tonnage, high-tech technology, trade lane coverage and service network needed for rapid delivery. Wherever you are, we’re good to go. For hands on help call our local experts: Outbound: 0503 222 444 Inbound: 0508 333 666

No matter what. www.hamburgsud-line.com


> LO G I ST I C S


Shipping from the

edge of the

world As the government attempts to discover whether international freight costs are competitive, shipping lines say prices are determined by international and domestic market forces. [By Mary MacKinven]

kEy TakEaWayS T > Find the terms of reference of the Productivity commission’s International Freight Transport services Inquiry at www.productivity.govt.nz > The inquiry will consider whether the shipping Act is best for regulating anti-competitive behaviour. > Varied charges and services show there is lots of competition and no collusion in the New Zealand sea freight market. > In any market smaller businesses have less buying power than big companies. small companies should procure smartly and use a boutique freight forwarder.

EXPORTER 31


N

ew Zealand’s packaging and airline industries have been in court this year charged with price-fixing. Airlines have been fined as a result. The European Commission is investigating the operations of several container shipping lines for evidence of irregular pricing, with exporters keenly awaiting the outcome. In New Zealand, meanwhile, industry players are adamant there is no anti-competitive behaviour. Yet smaller shippers have had to put up with non-availability of space during periods of container supply shortage, and tough pricing regimes by carriers. So just how effective is competition in the New Zealand freight shipping market? We can expect to have better idea at the conclusion of an inquiry by the Productivity Commission, which has been asked by the government to look into the effectiveness of the country’s infrastructure and regulatory regimes in promoting accessibility and efficiency in international freight

“we are dealing with

large overseas companies that might not have New Zealand’s best interests at heart and we need a fair playing field.

Greg Steed, New Zealand Shippers Council Chairman

inquiry’s catalyst, says chairman Greg Steed. “The inquiry needs to go deep into New Zealand’s heartland, looking at warehousing, transport modes and the whole [supply] chain’s efficiency, because maybe an inland infrastructure is preventing the most productive outcomes.” MATTeR Of PRuDeNCe A look at pricing and competition issues in shipping is prudent, Steed says. “We are dealing with large overseas companies that might not have New Zealand’s best interests at heart and we need a fair playing field.” The Shipping Act regulates the local shipping industry. The Ministry

some backstops to get the best advantages that other jurisdictions get,” Steed says. The general manager of McKay Shipping, agent for Pacific International Lines (PIL), Captain Arun Joshi, says there is no price collusion among lines in New Zealand. “Each line has its own cost structures and trade requirements, which drive the pricing behaviour. “Cost structures depend on type and size of ships, fuel consumption, equipment inventory, individual trade strengths/weaknesses and ports of call. There are a lot of variable costs associated with pricing.” Hamburg Sud has a compliance officer to ensure local obligations are met. According to chief executive Simon Edwards, shipping between New Zealand and Europe is very competitive. “We have to work hard to keep up cargo levels both refrigerated and dry. Conferences were banned years ago; we’re not allowed to talk to each other.” Cosco New Zealand general manager Mark Scott also refutes any suggestion of price-fixing. “Exporters can see that there is clear competition within lines involved in New Zealand trades, both in service options and rates.” Julian Bevis, head of Maersk New Zealand and chair of the International Container Lines Committee (ICLC) of Shipping New Zealand, representing 50 lines and agencies, says pricing should be determined by the market

of Transport has the power to investigate and fine offenders up to $50,000 for errant behaviour. Since 2008 the Minister of Murray Sherwin Commission Chair

transport services. “We are required to look at international comparisons with regulatory regimes; how the Shipping Act takes a different approach to competition than acts such as the Commerce Act,” says commission chair Murray Sherwin. An issues document was intended to be available in June to kick off the formal submission and consultation process. The New Zealand Shippers Council of large export organisations is happy to take the credit for being the

32 EXPORTER

Transport has received two complaints under the act, both of a general nature and not specific to a particular shipping line. Our trading partners have a variety of regulatory regimes. The US has the Federal Maritime Commission, in Europe oversight is provided by the European Commission and, across the ditch, the Australian Peak Shippers Association ensures cargo shipping services are reliable, of adequate frequency and competitively priced. NOTHiNG TO fiX? “There’s nothing broken but we need

Simon Edwards Chief Executive Hamburg Sud


as a whole, not the lines alone. He is adamant the market works effectively. Large lines do talk — but to discuss space and tonnage to facilitate vessel sharing agreements (VSAs), which are not commercial agreements but operational ones. Bevis says exporters and importers can feel well protected by the Shipping Act and market forces. “If we were colluding, would we have lost the amount we did in 2009 (and 2010), though it’s true we have come back [into profit] — in the first quarter of 2011 at least, but not the second.” Nonetheless, he thinks it is constructive to have an inquiry. “It’s a collective issue for many stakeholders: the Ministry of Agriculture and Forestry, Customs, ports, the lines, road, rail and local regulations all contribute to these issues.” Three lines announced in as many days in May new ports of call and increased container capacity, available from June (MSC), July (PIL) and August (Maersk). The companies say the timing was based on normal commercial practices: an upturn in demand, and the arrival of the off-peak season in

Smaller exporters who feel neglected should tell unco-operative lines where to go, because there is plenty of choice. While exporters of Fonterra’s scale might more easily call the shots, New Zealand is a nation of small exporters and a line would be silly to ignore them. Bevis says even small traders can play the lines off against each other. “Small exporters using sensible and intelligent procurement practices can influence the way the market behaves — it depends how much effort you put in. Don Braid, Mainfreight logistics and transport Group Managing Director

which to ease the services in. Chris Innes, of New Zealand Shipping Services, which provides ship provedoring services and freight forwarding, says he has not seen any evidence of price fixing. “We get quotations for all airlines and there’s always variations – the same for ships. There’s plenty of price variety because of differing styles of service and timeframes. Market forces determine prices.” Mainfreight logistics and transport group managing director Don Braid says the inquiry is tinkering around the edges, looking to fix something that

“Traders can use their

influence to secure rates and play the lines off against each other. Small exporters using sensible and intelligent procurement practices can influence the way the market behaves – it depends how much effort you put in.

Shipping lines have long had the finger pointed at them for price-fixing and collusion, but these days it’s a true commercial environment, says Chartered Institute of Logistics and Transport executive director Brian Stocking.

ain’t broke. He says collusion doesn’t exist to his knowledge. “It’s a very competitive sector.” Shipping lines have long had the finger pointed at them for price-fixing and collusion, but these days it’s a true commercial environment, says Chartered Institute of Logistics and Transport executive director Brian Stocking. He says tariffs are competitive and, in fact, New Zealand is over-serviced, with lines having to constantly change ship size, ports of call and take every short-cut they can to keep prices down. They also rely on the value of

“But they can only push the price down so far. And small exporters who are successful become big exporters, who of course have more influence.” Cosco’s Scott recommends smaller exporters negotiate a fair and mutually beneficial arrangement, and make sure the use all allocated space to ensure minimal waste of carriers’ resources. “Develop a flexible relationship with carriers to ensure when things don’t go to plan there are options.” Small companies should consider a boutique freight forwarder that takes time to see what they need and tailors a service, says Innes. “Our specialty is to take a group of small companies, say 10, and put them together effectively as a large company, using joint buying power to get better rates on all styles of freight.” [ENd]

the round trip, not just exporters, to make a trade worthwhile. “But any respectable line would keep its nose clean.” sMAll eXPORTeRs’ POWeR Complaints are common during the peak January to June meat, dairy and wool exporting season that there isn’t enough Julian Bevis, Maersk New Zealand Managing Director

cargo capacity, and that big exporters

MARY MacKINVEN / wrITer Mary has reported news for 20 years including as sole writer and editor of Business to Business monthly newspaper in Auckland, NZ, for six years. Now she combines freelance journalism with part-time writing at a business association in Auckland.

get all the attention, Stocking says

EXPORTER 33


> INSURANCE

The true

cost of reconstructing your business The Canterbury quakes have given business owners a rude wake-up call about the need for insurance cover that will not only get them back up on their feet but have them running again at full pace. [By Val Leveson]

B

usinesses everywhere have been jolted by the Canterbury earthquakes, with some owners realising the inadequacy of their insurance cover. The message from insurance advisers is that it’s crucial to know your policies’ fine print and be confident you have enough cover to ride out any period of disruption. Kevin Allen, who heads business dvelopment and sales at Rothbury Insurance Brokers in Auckland, says: “Who would have thought that the severe tremor on September 4 last year, followed by two significant quakes — more particularly the February 22 event — had catapulted New Zealand into the top 10 insured losses in the history of man.

34 EXPORTER

kEy TakEaWayS T > New Zealand is now on the global reinsurance radar and insurance costs will go up. > The destruction in christchurch has brought home to many the need to be more vigilant about managing risk. > The most common failing in insurance portfolios is a lack of understanding of business interruption cover. > Underinsurance of assets is common. > The cost of preparing a business for the worst is daunting, but the cost of not doing so is something no business can afford.

“Many natural disasters occur around the world, but not in areas of a high concentration of insurance coverage like New Zealand.” Allen says the global insurance premium pool is around $4270 billion, of which New Zealand contributes $3.5 billion (less than a 10th of a per cent of the total). About 15% of premiums collected in New Zealand are used to buy catastrophe reinsurance protection. Allen says the Earthquake Commission some years ago stopped providing protection for commercial property as the risk profile was too great not only for the commission’s insurers but for the government’s balance sheet. He says businesses are now left to arrange their own asset and loss of


“New Zealand is now very

much on the global reinsurance radar. It’s going to cost more to buy the levels of protection that insurance companies need and that will be passed on to policyholders.

Kevin Allen, head of business development and sales, Rothbury Insurance Brokers

revenue cover against natural disaster. Following the Canterbury and Japan quakes and Queensland floods, insurance premiums are set to rise. “New Zealand is now very much on the global reinsurance radar. It’s going to cost more to buy the levels of protection that insurance companies need, and that will be passed on to policy-holders.”

you because your competitors can supply alternatives? Are your sums insured relevant not just now but in three, six or 12 months’ time when a loss occurs?” Robb says in Christchurch payments are now coming through, but most go back to claims made after the the initial quake last September. Loss adjustors are in short supply, as are engineers. “There is still a cordon in the central city. Repairs and rebuilds are going to take a very long time, not just due to delays in having claims assessed, but also because of the time it takes to issue building permits and then to find builders to do the work. “Buildings are not going to be rebuilt in 12 months, being the most common indemnity period. What happens after that? Some insurers are handing out emergency payments, but for how long will they do this?”

Business interruption policies relate to physical loss or damage to the insured’s own property and the premises they occupy. Armstrong says such policies can include a variety of cover extensions and variations. Calculations of financial loss take into account trends before and after a claim. Because of the complexity, insurance brokers are best placed to help interpret what a policy covers and to explain how claim payments have been calculated, Armstrong says.

You may be able to get productive again in a month or two and set up from temporary premises, but how long will it take to get business turnover back to 100%? Does your product need to get back on to a supermarket shelf that is closing to you because your competitors can supply alternatives? Are your sums insured relevant not just now but in three, six or 12 months’ time when a loss occurs?

Mark Robb, Apex Insurance

THe ReAl Risks The Christchurch destruction has brought home to many the need to be more vigilant about managing risk. “The earthquake in Christchurch has shown the perils and endangerment to business that occurs by not having the right insurance cover, or underinsuring, with the sole purpose of premium saving,” says Apex Insurance’s Mark Robb. He says where many insurance portfolios fall short is in a lack of business interruption cover. “This lack leads to sums insured that are irrelevant, not taking into account the trends of the business and the real costs following a claim, or [they have] indemnity periods that don’t reflect the time it takes to recover from the major loss of not just an earthquake but fire as well. “You may be able to get productive again in a month or two and set up from temporary premises, but how long will it take to get business turnover back to 100%? Does your product need to get back on to a supermarket shelf that is closing to

He says the next most common

Karl Armstrong NZI Executive General Manager

failing is underinsurance of assets. “If your business suffers a loss you naturally want to get back up and running as soon as possible. If you don’t have enough money to do so because you have insured for book value, then you need to raise finance, pay extra interest and financing costs and your investment value has been strongly diminished.” RePlACeMeNT vAlue Robb says it’s best to always insure for replacement value. “It is not worth saving a few premium dollars to end up with your investment, your legacy, being eroded.” NZI executive general manager Karl Armstrong says commercial property under-insurance continues to be a

Business owners should also be looking at the resilience of their computer systems. Businesses in Christchurch that had off-site backups were much more nimble in responding to the crisis than those that did not. The same risk assessment should be applied to supply contracts and banking arrangements, says Armstrong. He says the cost of preparing a business for the worst is daunting, but the cost of not doing so is something no business can afford. The losses businesses suffer come back in the end to how they assess their risks and the insurance cover they have. [ENd]

problem. It was a feature of the December 2007 earthquake in Gisborne, and is rearing its head again in Canterbury. “Property valuations should be regularly reviewed to reflect building costs and businesses should ensure they have appropriate business interruption cover,” he says.

VAL LEVESON / wrITer Val is an Auckland-land based sub-editor and freelance writer who covers career issues, technology and business trends. She has worked at the Northern Advocate in Whangarei, the Manawatu Evening Standard in Palmerston North and The New Zealand Herald in Auckland.

EXPORTER 35


> CO ST M A N AG E M E N T

Managing

outsourcing

Outsourcing can help lift competitive advantage. The key to making it work is having well defined expectations and a set of proper performance measures. [By Sangeeta Anand]

A

lthough the economic climate continues to be difficult for exporters, it is a spur to reviewing costs. Outsourcing is

one way savings might be made. For many New Zealand exporters, outsourcing is a strategic choice driven by the core value chain, not merely economic and operational objectives. That is so for Fonterra. A review of recruitment at the country’s biggest exporter found that, as a global

36 EXPORTER

kEy TakEaWayS T > Efficiency gains are making domestic outsourcing increasingly popular. > Both project and operational work are outsourcing candidates. > Tips for good outsourcing include providing detailed and accurate specifications of needs; defining expectations well; running a test (where possible) before outsourcing; and setting up a review and evaluation process at every stage of the project. > develop a strong working relationship with the outsourcing company. > don’t assume anything — check every detail.


A review of Fonterra recruitment found that, as a global operator, it could make big quality and consistency gains by centralising the function. The $16 billion dairy exporter chose FutureStep, a Los Angeles-based company, for its recruitment process outsourcing (rPO). operator, it could make big quality and consistency gains by centralising the function. The $16 billion dairy exporter chose FutureStep, a Los Angeles-based company, for its recruitment process outsourcing (RPO). The decision to centralise came first, then the decision to outsource, says Katrina Ritchie, group manager project and planning for the dairy company, which accounts for a quarter of New Zealand’s total export earnings. “We chose to centralise recruitment for cost-efficiency reasons as well as to improve our risk management, by ensuring our recruiting processes are delivered to consistent standards.”

while working with an outsourcing partner, especially in another country, it is important to develop rapport.

Gail McJorrow, Creator of Wondercap

GlOBAl iNfRAsTRuCTuRe, lOCAl feel Fonterra has 15,600 employees and its success depends largely on the quality of its people. To build a strong team, Fonterra relies on skilled recruiters. It made sense to outsource recruitment to a company with global infrastructure and the expertise to compete successfully for talent. “Our service provider has attracted quality recruiters into its business, with the result that we have improved processes and innovation around building candidate pools, and have been able to devote more resources to forward planning,” says Ritchie. The fact that FutureStep has a local office helps. “This is a domestic, rather than international, outsourcing arrangement, with the New Zealand arm of FutureStep providing the services from an Auckland base adjacent to Fonterra’s head office.” OffsHORe Not all outsourcing is domestic, with many exporters looking offshore for service providers. When Gail McJorrow, creator of Wondercap, evaluated options to manufacture her innovative product, China was an obvious choice.

38 EXPORTER

The main benefit of producing in China is the cost effectiveness, says McJorrow who invented the cap as an inexpensive home hair-care treatment. Producing in China offered scalability. “This is very important when you have a product you are pitching globally,” says McJorrow. She also found her Chinese partners reliable. “They are true to their word; if they say the product will be ready in 55 days, it will be.” However, exporters should do their homework, visiting service providers’ facilities. “I was advised to go there, but family commitments wouldn’t allow it,” says McJorrow, who hired Silk Road International (SRI) to be her eyes and ears in China. SRI, a US-owned procurement agency based in China, helps companies find suitable manufacturing facilities and co-ordinate production. SRI visited the factory three times throughout production. “It is especially important it visit at the start so any problems can be sorted. A final report together with photos was emailed to me with [details about] the number of rejects, and the shipment was approved for me to make payment,” says McJorrow.

Luxurious Pampering, Wondercap

While working with an outsourcing partner, especially in another country, it is important to develop rapport. “I gained trust in the company. It is very important to develop a good working relationship with the person in charge of your account. “But be aware that the person you are dealing with one year will probably not be there the next, as they move around in

shipment it looked the same to me. But when it was stitched to the caps we found it didn’t have as much stretch. “I assumed the company would have used the same elastic as the first batch but the machinist had used one with different tension. It highlights the importance of receiving samples before

David Hancock, IT solutions and Product Group Manager, Origin

production and not assuming anything.” Apart from manufacturing and HR, the other two commonly outsourced functions are finance and IT. Even large companies with sizable operations, like Origin Energy, can find themselves with an IT skills gap. “We are small in terms of IT, though we are still a large company,” says David Hancock, IT solutions and products group manager at Origin, which employs 4400 staff in New Zealand, Australia and the Pacific. “We look to partners like Oracle, with the scale and expertise to help us connect the entire picture together,” Hancock says in an interview on the Oracle website. “We can go to pretty much any business unit in Origin and find an Oracle solution that can meet that need.” When Origin wanted to put in place a CRM, it approached Oracle. The company had a specific and immediate business need, but Origin could not have provided the solution within the four to six weeks available. “(We) went to Oracle and CRM On Demand was chosen to allow us to set up our employees as customers, and have our people and culture department answer phone calls to deal with queries from employees.” By outsourcing its immediate need, Origin was able to buy time for strategic thinking. “It’s really a good example of being able to provide a solution quickly, (and) meet a need, while we were thinking about the longer-term picture with respect to our people and culture systems.” [ENd]

the organisation or, as many are women, they leave to have a family.” It’s also important to allow for contingencies. “I have an elastic band around the Wondercap and when I ordered the elastic for the second

SANGEETA ANAND / wrITer Sangeeta Anand, is an international writer specialising in business, supply-chain and technology. She has written for several publications in New Zealand and overseas.


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> T E C H N O LO GY

Office without wires wires or no wires? Companies looking for the best way to connect staff to their computer network and the internet need to weigh up cost, speed and security before deciding whether to go wireless, wired, or both. [By Anthony Doesburg]

B

usinesses everywhere have been jolted by the Canterbury earthquakes, with some owners realising the inadequacy of their insurance cover. The message from insurance advisers is that it’s crucial to know your policies’ fine print and be confident you have enough cover to ride out any period of disruption. Whoever first uttered the words

40 EXPORTER

kEy TakEaWayS T > wi-Fi networks are convenient and cheap. > They are a natural adjunct to wired networks. > wi-Fi projectors and printers are handy wireless computing companions. > wi-Fi networks are inherently less secure and slower than wired networks. > Basic security steps can overcome wi-Fi’s vulnerability.


“Look Ma, no wires” has radio pioneer Guglielmo Marconi to thank. The same radio waves the Italian wireless telegraph inventor exploited a century ago make possible today’s Wi-Fi networks, which have found their way into most offices and many homes. In the decade since Wi-Fi began being used for data networking, it has developed into a useful add-on for wired networks in big organisations,

and a cheap and easy networking answer for small outfits. Tony Krzyzewski, head of Auckland networking and security company Kaon Technologies, says wired and wireless networks are complementary. “Both have their place inside a business and each has a different function. The key benefit of wired networks is speed and the downside is the need for, and cost, of cabling.

“The advantage of Wi-Fi is that it is easily connected to, it supports lots of newer-type devices — it’s a mobileenabler — but it does have quite severe security implications if you don’t install it correctly.” seveRAl CONsiDeRATiONs Security is just one of the issues to weigh up when installing a data network. If your organisation occupies

EXPORTER 41


“Both [wired and wi-Fi] have

their place inside a business and each has a different function. The key benefit of wired networks is speed and the downside is the need for, and cost, of cabling.

Tony Krzyzewski, Head of Auckland networking and security company Kaon Technologies

a heritage building, for instance, you’ll face challenges installing both wired and Wi-Fi networks. Solid walls are hard for cable installers to penetrate, but also do a good job of blocking Wi-Fi’s radio signals. In such a setting, the two networking types together can get around the installation difficulties. “The newer Wi-Fi standard [IEEE 802.11n] does mean signals do traverse walls better, but quite a few people find they have issues within older buildings,” Krzyzewski says. And where wireless reception is weak, network speed is slow. The answer, says Nathan Hall, network engineer at Hamilton-based B2B Solutions Group, is to draw up a coverage map, using a wireless device to measure signal strength in different parts of the building. “If you map it properly you can position your wireless access points to give you full coverage of the building, and that way you do get good speeds.” Cost is another consideration in choosing network type. A 24-port wired network switch costs about $600, but the cabling to connect the two-dozen computers and other devices it can handle will cost about 10 times that amount, Krzyzewski says. In contrast, two wireless access points, sufficient for about the same

number of devices, will set you back less than $400. sPeeD kills On the basis of cost, the temptation might be to go totally wireless. But that misses out on wired networks’ inherent benefits, one of which is speed. The 802.11n standard of today’s Wi-Fi networks is capable of transmitting data at hundreds of megabits a second (Mbit/s). On paper, that doesn’t appear significantly slower than the thousand megabits — or 1 gigabit — a second of a standard wired network. But the difference is each computer in a wired network gets the benefit of that 1Gbit/s speed, whereas 10 Wi-Fi devices connecting to a 480Mbit/s wireless access point are sharing the available bandwidth, so might have as little as 48Mbit/s to themselves. That is still a respectable speed, remembering that a typical residential internet connection is less than 10Mbit/s. But it could become a bottleneck during busy times, such as when organisations process their monthly accounts, Hall says.

On the basis of cost, the temptation might be to go totally wireless. But that misses out on wired networks’ inherent benefits, one of which is speed. He emphasises the need to have enough access points to ensure bandwidth isn’t divided among so many users that performance is slow. “Generally it’s databases that cause problems because when people are accessing them there is a lot of data travelling too and fro — from the server to the client and back again repeatedly.” feeliNG iNseCuRe Speed is one advantage of wired networks and security is another. As Marconi was the first to demonstrate, radio waves travel as far as a transmitter will send them, so don’t stop at the walls of your office. “You have to be a bit careful with wireless because you’re broadcasting

numerous Wi-Fi networks spilling into the open, a startling number of which identify their owner’s name, and are free for anyone to access. “It still surprises me how many people put in a wireless access point and just leave it open,” Hall says, inviting severe consequences. “I was reading recently about someone in Australia who woke to the equivalent of the CIA busting down his door and taking all his equipment. It turned out his neighbour had been downloading questionable material over his connection. “If you have a gun, you buy a gun cabinet and lock it away safely. So why wouldn’t you turn on the security on a wireless access point?” There’s no excuse from a complexity point of view, Krzyzewski says. The starting point is turning on Wi-Fi’s built-in WPA2 encryption, which requires users to enter the network name and a shared password to establish a connection. WPA2 scrambles all traffic between devices and the wireless access point. “The next step we recommend is change the SSID, the network’s unique identifier, from the standard name that comes with the access point.” But don’t follow the example of many people and give the network a name that anyone who stumbles across can identify with you or your business. To make the network doubly secure, Krzyzewski says, use MAC address lock-out, which means only devices whose unique MAC address have been programmed into the access point are able to connect. “The secret is not doing a bit of the security, but doing it all. If you do all of the steps, then you’re going to make it very difficult to break into.” Then, Krzyzewski says, a Wi-Fi network is “a very good adjunct” to a wired network, especially for users of portable devices “Bringing the likes of an iPad or Android tablet into an organisation, and having that instantly connecting to the organisation’s network when you walk into the building, is a very useful function.” [ENd]

yourself out into the public arena,” Hall says. Just how public is easy to see if you take a wireless-capable laptop for a drive through a suburban street or commercial district. So-called

ANTHONY DOESBURG / wrITer Anthony Doesburg is an Auckland-based freelance journalist who specialises in technology.

“wardriving” will reveal signals from

42 EXPORTER

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> E X P O RT M A N AG E M E N T

Passage to

Shanghai Tapping into the Chinese market presents challenges to the small exporter. The Shanghai Trade Centre is able to help exporters test the market for their products in a low-cost and low-risk manner. [By Yoke Har Lee]

T

he New Zealand Trade Centre (NZTC) is getting bolder, tougher and more international. Owner Alister Gates and new business

partner Wendy Mo are gearing up to help smaller exporters reach China and the rest of the world. Housed in Auckland’s Albert St, a block from the Queen St heart of the city, the NZTC plans a spruce-up for the Rugby World Cup that will result in more space and greater accessibility for visitors.

44 EXPORTER

kEy TakEaWayS T > NZTc ownership recently changed hands. > NZTc is being repositioned into a business hub for international traders. > NZTc model is looking to go global. > Exporters can use the NZTc’s expertise to reach china in an efficient manner.

The centre for showcasing New Zealand export products will be transformed into a meeting place and venue for doing business. There have been two recent strategic developments at NZTC. Gates, who bought the business from previous owners Mike Taillie and Travis Field, has recruited business partner Wendy Mo. Mo, who exports to China, has been in New Zealand for nearly a decade. She is NZTC’s Asia business director. “We are looking to help smaller New Zealand businesses get to


“we are looking to help

smaller New Zealand businesses get to the international stage – China, in particular, and hopefully the rest of the world.

Wendy Mo, Asia Business Director, New Zealand Trade Centre

the international stage — China, in particular, and hopefully the rest of the world,” Mo says. NZTC is also hoping to help small and medium-sized enterprises (SMEs) that are below the radar of New Zealand Trade & Enterprise. sHANGHAi sHOWROOM NZTC has signed a memorandum of understanding with Emborio Supply Chain Management, a Shanghai-based company, that will pave the way for smaller companies to showcase their products in Shanghai. It will be a cost-efficient and low-risk

place orders directly with Emborio in the local currency. “Emborio will then place a back-toback order with the NZTC member company and manage the entire international supply chain on a doorto-door basis from the New Zealand exporter to Chinese customer. “All local currency net sales proceeds will be collected by Emborio on behalf, changed into New Zealand dollars and remitted to the exporter’s bank account,” Heads says. Emborio can also help NZTC member companies with their China marketing efforts by listing their products on Chinese-language trade websites, he adds. Emborio has an office in Shanghai with 20 employees and has been providing China import and distribution services for almost 10 years. Heads, who does not need a translator to conduct business in China, went to study there, and stayed. NZTC’s Gates says the arrangement will ease the way for smaller exporters wanting a presence in China. “This end-to-end solution makes it very easy to get into the country until such time as the exporter feels more secure and can do it himself.” NZTC is hoping to do the same in Korea, with Gates and Mo having held exploratory talks. Mo is passionate about helping smaller exporters, saying her own experience has uncovered a gap in the market. “We have asked New Zealand Trade & Enterprise for help before, and have been told we are too small.”

“The arrangement allows NZTC member companies to display

their products at emborio’s Shanghai showroom, where potential Chinese customers can come, see the product and even make a cash purchase in their local currency if they so desire.

Colin Heads, Managing Director, Emborio Supply Chain Management

way to explore China, says Colin Heads,

She exports wine on behalf of a

Emborio’s managing director, an

number of wineries, including organic

otherwise challenging undertaking.

vineyard Turanga Creek. She also

“The arrangement allows NZTC

markets three Chinese labels, Golden

member companies to display their

May, Henry Range and Clarence River,

products at Emborio’s Shanghai

produced in New Zealand for the China

showroom, where potential Chinese

and Hong Kong markets.

customers can come, see the product and even make a cash purchase in their

sTRuGGliNG fOR HelP

local currency if they so desire.”

Every second day Gates says a small export start-up will come to him having

TesTiNG CHiNA Heads says larger Chinese customers that might want to buy bigger volumes or be assured of regular supplies can

46 EXPORTER

been turned down for support by NZTE. “These exporters are struggling to get help.” NZTC has novel ways of assisting.

how you can use NZTC for market research in China Basic market research could be conducted in china for members and a short-form report (two pages) produced with recommendations addressing the following questions: • Is there a realistic market for the member’s product in china? • what is the size of the market? • Are there specific standards the product must meet? • Are there import quotas, import licensing requirements or other restrictions to import the product into china? • Is the product price competitive after calculating packaging, shipping, marketing, sales commissions, taxes and tariffs and other associated costs?

how you can display your products in the Shanghai Trade Centre • One standard display at the shanghai Trade centre • Translation of brochures into chinese • Link with local chinese language trade portals to test demand • Mechanism for referring all trade leads generated by the NZ shanghai Trade centre and chinese language trade portals back to the member It has teamed up with Indy Car racer Scott Dixon’s father Ron, who approached NZTC about using the Indy Car series as a venue for trade shows. According to Gates, over a million fans attend the 12-race series, which Brazilian Trade and Promotion Agency Apex-Brazil has been successfully taking advantage of by promoting products from that country. NZTC used its database to market the concept to exporters. “Of the three or four New Zealand companies that went on the road show at an Indy Car race, all gained leads or orders,” Gates says. [ENd] YOKE HAR LEE / wrITer Yoke Har was formerly a senior Reuters correspondent, a Business Herald writer, and personal finance editor for a regional media company. Most recently she managed internet and intranet content for a global US consultancy.


glOBal STagE ExPORTER LOOKS AT INNOVATIVE NZ PRODUCTS SEEKING A WORLDWIDE AUDIENCE

IF YOU HAVE AN INNOVATIVE PRODUCT YOU WANT TO TAKE TO THE WORLD, EMAIL EDITOR@ExPORTERMAGAZINE.CO.NZ

Avocado Oil Grove The Guinness Book of World Records lists avocados as the most nutritionally complete fruit in the world — which means that cold pressed extra virgin avocado oil could be one of nature’s most nutritionally complete oils. New Zealand avocados contain the highest levels of beta-sitosterol (the plant sterol which has been proven to lower cholesterol absorption) of any avocados grown internationally. Grove Avocado Oil has an 80% share of the avocado oil market in grocery in New Zealand and 100% in grocery in Australia. Managing Director Brian Richardson says the company only uses New Zealand grown avocados for production. “Our avocado oil is 100% natural, extra virgin, and cold pressed. Along with high beta-sitosterol levels, it also contains a higher percentage (72%) of healthier mono-unsaturated fats than olive, rice bran and canola oils.”

Avocado oil has a unique and complex blend of lipids, phytochemicals, vitamins (A, C, B-6, E, D) omegas, and antioxidants. And the good fats in avocados have been found to increase vital nutrient absorption. Grove’s cold pressed avocado oil is also a source of Lutein, a compound which has been shown to reduce the risk of prostate cancer and age-related macular degeneration — a leading cause of blindness in the elderly. It’s also been endorsed by the Heart Foundation in New Zealand and Australia for its high ratio of monounsaturated fatty acids and polyunsaturated fatty acids. All Grove avocado oils wear the heart foundation tick and contribute to heart health. While this ‘super food’ contains a long list of nutrients vital to our health and wellbeing, it’s also an extremely versatile oil to cook with. The unique composition of avocado oil makes it suitable for high temperature cooking.

With the highest smoke point (255C) of canola, olive and rice bran oils, Grove avocado oil takes longer to breakdown, making it a healthier oil for pan-frying, stir-frying and barbequing. Avocado oil is also a healthier alternative to regular salad dressings, as the good fats in the oil help the body to absorb beneficial carotenoids found in fruit and vegetables. The rich, smooth, sumptuous green nectar is light in consistency with a mild nutty taste that enhances the natural flavour of foods, rather than overpowering them.

the salts in them cause the plants to suck up water. Agrissentials NZ Ltd is New Zealand’s foremost manufacturer of BioGro-certified natural fertilisers and soil fertility-enhancing products and programmes, for sustainable and optimum production and profit. Agrissentials has developed fertilisers that are increasing the mineral content, biological life and depth of the topsoil, ensuring both production and sustainability. Other chemical-based fertilisers force feed the plant unnaturally and destroy and contaminate the soil, offering shortterm growth and long-term damage. Agrissentials Company are pioneers of sustainable chemical-free agriculture, and have built a substantial business by selling high-value pulverised basalt

fertilising agent that builds up topsoil. After over 17 years, the company has a staff of 20, ten depots across the country and is looking to expand in the South Island, Australia, Singapore and further afield.

Agrissentials More farmers report that the move away from chemicals towards sustainable farming has improved their lifestyle, production figures and profit returns. Agrissentials NZ Ltd has developed special blends of fertilisers into programmes specifically formulated to suit your property’s soil type and your individual production requirements. Salt-based chemical fertilisers are junk food for grass! Have you ever noticed how many advertisements in the farming media promote either chemical fertiliser or agri-chemical remedies? The fact is that the composition of one creates a market for the other! Just as eating salted chips or peanuts makes you thirsty, so it is with salt-based fertilisers! Spread Super or DAP or Urea and

48 EXPORTER


Wood Mallets excellence as it does in the company’s product quality and craftsmanship. The company was the overall winner of the

George Wood started making mallets in 1982 from the family homestead just outside Otane.

Hawkes Bay Business of the year awards in 2001 and winners of the Exporter of the Year award in 2010.

His brand has been exported to over 50 countries and is revered for its craftsmanship, quality and innovation. Wood Mallets’ croquet mallets are the UK and US Croquet Associations’ biggest selling mallets. The small but passionate team of craftsmen specialise in manufacturing polo mallets and croquet equipment. They’re world leaders in the development of both polo and croquet mallets and an ongoing research and development programme is a major factor in their success. Raw materials and components are sourced from around the globe. A large proportion of orders are taken from their website woodmallets.com and worldwide deliveries are made by FedEx within a few days. About 85% of the company’s sales are exported. Wood Mallets take as much pride in its customer service and business

Visitor to trade centre – Leads NZ malt for Vietnam

Fish products for Japan

Visitor looking New Zealand malt producer to supply beer factory in Vietnam. Currently trading in chemicals, raw material, tools and equipment mainly to supply brewery industry.

Japanese visitor looking for NZ manufacturer in fish meal and fish oil products. Distributor in fish and cattle feeding industry.

Skin care for australia

NZ timber for India

Australian visitor looking for beauty and skin care products to market to distributors and end users. Has marketing company in Australia.

India visitor looking for high grade sawn timber and timber products to export to India. Is particularly interested in sourcing NZ Pine wood.

NZ wine for India Swedish visitor looking for New Zealand wine to import for high class society in India. Currently imports leather products to Nordic countries from India. His clients are retailers.

NZ health products for macau Hong Kong visitor who is currently a distributor of Health supplements from Australia and New Zealand is looking for more NZ Health products to supply Macau.

NZ dairy food & beverage for Indonesia Visitor comes from Indonesia and is looking for dairy food and drink, hard wheat and fructose corn sugar to export to Indonesia. His clients are food and drink manufacturers of cookies, wafer biscuits, instant noodle and syrup.

NZ products for Japan Indonesia visitor looking for frozen seafood, animal feed, and fertilizer. Clients are manufacturers, wholesalers, and retailers. Already imports from Australia, Indonesia, Singapore, Malaysia, Thailand, Vietnam, Myanmer, China (Mainland, Taiwan & Hongkong), United States, Brazil, Mexico, Iceland, France, Italia, and Great Britain.

EXPORTER 49


EXpORT OppORTUNITIES Below are some of the opportunities from recent visitors to the New Zealand Trade Centre. All these opportunities are available at no charge to New Zealand Trade Centre Export Success and Export Lead Members. Export Lead Membership is just $239.40 p.a. Join as a member at http://newzealandtradecentre.com/join-now/

www.nzexporter.co.nz

MIDDLE EAST

High quality New Zealand food products for the Middle East

All $200+GsT each or free to Trade Centre exhibitors

CHINA New Zealand baby products and formula for China

This visitor is currently importing food products into Bahrain from Australia, South Africa and America to supply supermarket chains and restaurants. They are now seeking New Zealand suppliers who have high quality products including meat, seafood and diary products and are keen to develop the Middle East market.

This visitor is currently involved in the supermarket trade and is looking to start up a new business in China dealing with baby products and baby formula. He is searching for brands that are not currently in the Chinese market.

MALAYSIA

SAUDI ARABIA

This visitor is involved in the restaurant industry in Kuala Lumpur, Malaysia. He is looking for New Zealand wine, fruit juices, avocado oil and berries.

This visitor is an established, well regarded business looking to import New Zealand milk powder and dairy products such as cream cheese to Saudi Arabia, where they currently operate 101 stores ranging from supermarkets to wholesale outlets.

New Zealand wine, juices, avocado oil & berries for Malaysia

RUSSIA & KAZAKHSTAN

New Zealand meat & meat products for Russia & Kazakhstan

New Zealand milk powder & dairy products for Saudi Arabia

MALAYSIA Honey for Malaysia

This visitor would like to try to import New Zealand meat and meat products to Russia, Belarus and Kazakhstan.

Malaysian importer and exporter of health, electronics, and other consumer goods wants to export NZ Honey.

MALAYSIA

MALAYSIA

Deer & Sheep Placenta health products for Malaysia

Honey, Wine, Placenta & CoQ10 products for Malaysia

Visitor came in today looking for Sheep & Deer placenta products to export to Malaysia. Their clients are retailers. Currently importing products from other countries.

A Malaysia visitor came into our centre requesting Active Manuka Honey(UMF), Wine, Placenta and CoQ10 products to export to Malaysia and other countries.

CHINA

New Zealand wood required for China pulp & paper business This visitor is currently importing products for the Chinese pulp and paper industry and is now looking for some NZ pine wood chips to supply a paper mill in China.

He currently exports Honey to Malaysia and deals with distributors.

INDIA New Zealand Wine, Beer & Wood for India This visitor as been in the importing/exporting business for the past 20 years and is now looking to import NZ wine, beer and log wood into India.

For more information or a personal introduction, please email, alister@newzealandtradecentre.co.nz or call (09) 281 4030

50 EXPORTER


SRI LANKA

INDIA

New Zealand Products for Sri Lanka

New Zealand Wine for India

Sri Lankan visitor looking to start an import/export business exporting NZ wine, health products, diary products and timber to Sri Lanka.

Swedish visitor looking for New Zealand Wine to import for high class society in India. Currently imports leather products to Nordic countries from India. His clients are retailers.

ALGERIA

INDONESIA

Bovine casing for Algeria

New Zealand dairy food & beverage for Indonesia

Algerian visitor looking for Beef casing for Sausage manufacturer in Algeria. Must be “Halal certified�. Is resident of NZ and looking on behalf of contact over in Algeria.

Enquiry through our website. Visitor comes from Indonesia and is looking for dairy food and drink. As well as hard wheat, and fructose corn sugar to export to Indonesia. His clients are food and drink manufacturers such as cookies, wafer biscuits, instant noodle, syrup etc.

JAPAN

INDIA

Fish products for Japan

New Zealand products for India

Japanese visitor looking for NZ manufacturer in Fish meal, and fish oil products. Distributor in fish and cattle feeding industry.

Visitor looking to promote NZ beer, Wine, foods, and pure Ghee. First time importing NZ products and has knowledge of India as well as contact with Importers, distributors, and retailers. Own a Film and Television production company.

MEXICO New Zealand products for Mexico Mexican businessman looking to start importing New Zealand products ranging from health supplements, sporting equipment and building products.

INDONESIA New Zealand oats and canned foods for Indonesia This visitor is currently a distributor of canned food products, sauces, snacks and instant noodles in Indonesia. Their clients are retailers, hotels and restaurants.

INDONESIA

New Zealand Dairy Products for Indonesian food & drink manufactuer This visitor is currently involved in an International Freight Forwarding company in Jakarta. They have food & drink manufacturer clients they wish to support by importing New Zealand Dairy Products, Hard Wheat and Corn Syrup.

SOUTH AFRICA

New Zealand Halal Beef & Lamb and Frozen Vegetables to South Africa Based in South Africa this visitor is currently in the meat product manufacturing/distribution business and interested in importing NZ Halal beef & lamb. There is also the opportunity for frozen vegetables.

For more information or a personal introduction, please email, alister@newzealandtradecentre.co.nz or call (09) 281 4030

EXPORTER 51


EXpORT OppORTUNITIES Below are some of the opportunities from recent visitors to the New Zealand Trade Centre. All these opportunities are available at no charge to New Zealand Trade Centre Export Success and Export Lead Members. Export Lead Membership is just $239.40 p.a. Join as a member at http://newzealandtradecentre.com/join-now/

www.nzexporter.co.nz

All $200+GsT each or free to Trade Centre exhibitors

CHINA

KOREA & CHINA

New Zealand infant formula for China

Beef & Dairy for Korea & China

This NZ based visitor is currently importing infant formula into China. They are looking for a New Zealand based infant formula manufacturer to work with. Their current clients are retailers, wholesalers and end consumers.

Visitor wants to get in contact with mainly New Zealand companies who have Beef and Cheese products.

VIETNAM

AUSTRALIA

New Zealand Malt for Vietnam

Skin care for Australia

Visitor looking New Zealand malt producer to supply beer factory in Vietnam. Currently trading in chemicals, raw material, tools and equipment mainly to supply brewery industry.

Australian visitor looking for beauty and skin care products to market to distributors and end users. Has marketing company in Australia.

INDIA

INDIA

New Zealand Wine & Beer for India

New Zealand timber for India

Visitor very serious about exporting NZ Wine and Beer to India. Is new to exporting and importing. Has a focus on starting up the business for marketing Wine and Beer in India for a mid to high market.

India visitor looking for high grade sawn timber and timber products to export to India. Is particularly interested in sourcing NZ Pine wood.

MACAU

AUSTRALIA

New Zealand health products for Macau

Food Products for Australia

Hong Kong visitor who is currently a distributor of Health supplements from Australia and New Zealand is looking for more NZ Health products to supply Macau.

Australian visitor wanting food products to import to Australia to supply restaurants and hospitality chains.

CHINA

ASIA, USA & EUROPE

New Zealand products for China

Frozen food for export

Skin, baby, food, medicine, and chemical products for China.

Japanese visitor looking to import frozen food to Asia, USA, and Europe.

For more information or a personal introduction, please email, alister@newzealandtradecentre.co.nz or call (09) 281 4030

52 EXPORTER


JAPAN

USA

New Zealand products for Japan

New Zealand grown hops wanted

Indonesia visitor looking for frozen seafood, animal feed, and fertilizer. Clients are manufacturers, wholesalers, and retailers. Already imports from Australia, Indonesia, Singapore, Malaysia, Thailand, Vietnam, Myanmer, China (Mainland, Taiwan & Hongkong), United States, Brazil, Mexico, Iceland, France, Italia, and Great Britain.

American visitor looking for New Zealand grown hops to sell to Manufacturers, wholesalers and retail outlets.

BRAZIL

SOUTH EAST EUROPE

Lamb & Cattle AI for Brazil

Looking for New Zealand Exports for South Eastern Europe

Qualified attorney at law, living in New Zealand and Looking for artificial insemination business/exportation for Brazil.

Qualif Are you interested in breaking into the South Eastern Europe market? Slovenian buyer looking to set up a business to distribute, resell, and form partnership with New Zealand Export company. ied attorney at law, living in NZ and Looking for artificial insemination business/exportation for Brazil.

ITALY

CHINA

Manuka honey for Italy

New Zealand Mutton for China

Italian visitor looking for Manuka honey, health and medical products. Has contacts for retail, manufacturers, and end users.

New Zealand Mutton chops for export to China. Chinese exporter and trader whose clients are manufacturers and wholesalers. Already imports products into Thailand and China.

CHINA

USA

Baby milk formula for China

Sheep skin for USA

New Australian visitor looking for baby milk formula to supply Chinese retailers.

American visitor looking for Sheep skin bedding for both infants and adults. Clients are consumers, hospitals, and nursing homes.

USA

OMAN

New Zealand Probiotics for USA

Milk powder & Honey request

Request for New Zealand probiotics products for import to USA. Starting up a company once a connection is established.

Request for Milk & Honey from Oman. Food manufacturing and packing company based in Salalah.

For more information or a personal introduction, please email, alister@newzealandtradecentre.co.nz or call (09) 281 4030

EXPORTER 53


Useful Websites for Exporters GOVERNMENT-RELATEd sITEs www.mfat.govt.nz Ministry of Foreign Affairs and Trade website. Trade and economic relations information. www.nzte.govt.nz New Zealand Trade and Enterprise (NZTE) is the Government’s national economic development agency. Our job is to lift New Zealand’s economic performance by helping businesses to grown and compete internationally. www.maf.govt.nz Ministry of Agriculture and Forestry. www.customs.govt.nz/exporters Useful information and advice for exporters. www.nzeco.govt.nz /info@nzeco.govt.nz The New Zealand Export Credit Office (NZECO) provides financial guarantee products for New Zealand exporters and banks. Our products help exporters manage risk and capitalise on trade opportunities around the globe.

NEw ZEALANd / INTERNATIONAL AssOcIATIONs www.aucklandchamber.co.nz The Auckland Chamber of Commerce encourages and supports sustainable, profitable business growth. The Chamber does this by positively influencing the environment in which businesses operate and through training, advisory services and international trade support. www.uktradeinvest.gov.uk UKTI is able to help companies interested in setting up in the UK by introducing them to agencies and support programmes designed to assist them. www.germantrade.co.nz/services/index.asp NZGBA: German Chamber representative office provides support services to NZ exporters for participation at German trade fairs and/or providing important contacts when setting up business in Germany. www.cilt.co.nz THE CHARTERED INSTITUTE OF LOGISTICS AND TRANSPORT IN NEW ZEALAND INCORPORATED In the 50 years since CILT NZ was formed, which now has an active membership of over 1,000 focusing on improving the quality of Transport & Logistics (Supply Chain). Members obtain industry knowledge though courses, conferences & meetings to benefit and advance our membership and Industry. www.cbaff.org.nz The Customs Brokers and Freight Forwarders Federation of NZ Inc is a national organisation which promotes the interests of all members; assists member companies and individuals working professionally and participating in customs broking and freight forwarding, and is affiliated with the wider transport industry. CBAFF is organised independently of Government by a management executive and initiates discussions with relevant bodies, seeking to develop an environment favourable to our members.

REcRUITMENT www.logisticsrecruit.co.nz Logistics Recruitment are the specialist recruiter for the Import / Export / Freight sector in New Zealand. We have an extensive database of high calibre candidates that will add value to your company. Our rates are competitive and all placements are guaranteed for 90 days. www.teamrecruitment.co.nz Team Recruitment specialise in the logistics & supply chain areas, supplying top quality people from the operational level through to project & senior management for importers, exporters, shipping, international & domestic freight forwarders. “Quality candidates quickly” – this is our purpose & our goal is to deliver this to you wrapped up in outstanding service. Having specialised in this market for 15 years, we have considerable knowledge of the people in these industries, and can add valuable people to your team as your needs arise.

54 EXPORTER

EdUcATION ANd TRAINING www.export.ac.nz New Zealand School of Export is the only provider in New Zealand to offer the internationally accredited Diploma of International Trade. Highly practical and delivered entirely by distance learning with one-on-one personal tutoring – we work with you and your business to raise your game. Course participants have access to our unique online Export Library & Information Service (ELIS) and we offer a range of scholarships – check us out: www.export.ac.nz scm.massey.ac.nz We provide programmes for postgraduate levels and graduate levels. In addition we can provide consultancy and in-house programmes in Logistics and SCM. www.getexporting.co.nz WHK provides expert and practical advice to new and existing exporters and importers. Their specialised export team add insights and value in areas ranging from market entry strategy and planning to budgeting and tax structure. www.ema.co.nz / www.exportnz.org.nz New Zealand’s premier exporting partnership brings you a series of targeted, contemporary, and practical export and international business courses. EMA Learning and Export New Zealand offer workshops in areas such as trade documentation, trade shows, foreign markets and international marketing, plus the Diploma of International Trade (in conjunction with the New Zealand School of Export). www.shortcourses.ac.nz The University of Auckland Business School offers over 200 2-day practical business and management Short Courses each year to provide business and professional people from all walks of life opportunities to up-skill and re-skill. Short Courses also deliver an ever-growing number of in-house courses which are delivered specifically for an organisation, when they want and where they want, with the option to have the courses tailored specifically for that organisation. 0800 800 875. www.LTG.co.nz LTG provides applied, distance qualifications. Prior learning/experience are recognised. LTG specialise in bridging qualifications including the CILT(UK) Certificate and Professional Diploma in Logistics & Transport. www.theicehouse.co.nz/ownermanaged The ICEHOUSE Business Growth Centre, Auckland Join business owners and entrepreneurs becoming globally capable with ICEHOUSE knowledge, tools and contacts. www.nzlogistics.co.nz Manukau Institute of Technology’s New Zealand Maritime School is the premier provider of logistics, shipping and freight training in New Zealand. www.learningpost.ac.nz Learning Post – Study at Your Own Pace at Your own Home. Fit education around your work and family commitments Contact us today for more information 0800895895.

cUsTOMs TARIFF ANd FREIGHT cONsULTANTs www.aironaut.co.nz Aironaut Customs is a highly motivated, privately owned, independant customs broker.

wEBsITE dEsIGN Zeald.com Zeald.com is one of the fastest growing website design and e-business consulting companies in New Zealand. Our vision is to help small to medium sized companies generate amazing results online using a website and other methods of electronic marketing. Visit www.zeald.com to book your FREE Audit or Consultation www.bka.co.nz When you’re talking to the world, you need a world class website. At bka interactive, that’s what we build. We help our clients connect with the world through their websites. Contact us – www.bka.co.nz


TRAdE sERVIcEs

TRAVEL cONsULTANTs

www.jacanna.co.nz International Logistics Company

www.chinatravel.co.nz Asia’s 1-stop travel shop China wholesaler.

www.tollpriority.co.nz International Express Courier Nationwide Courier Door to Door Airfreight International. Airport to Airport Airfreight International Domestic Air cargo via Pacific Blue.

www.apx.co.nz Atlantic Pacific American Express (APX) offer a comprehensive corporate travel management service to large corporates and SME’s. APX are an American Express Business Travel Partner, offering innovative business travel solutions to increase savings and control over your travel program, including reporting, online booking tools and access to AMEX global corporate hotel rates.

www.jonesfee.com Pauline Barratt of Jones Fee solicitors, specialises in maritime, admiralty and marine insurance law including: • The international carriage and sales of goods • The law relating to freight forwarders.

www.chinatravel.co.nz The China travel specialists since 1928 China’s 1-stop travel shop with hundreds of offices to provide local support and service on a 24/7 basis .Phone: 0800 CTS 888

www.tmnz.co.nz Tax Management NZ is NZ’s original tax payment intermediary dealing with most of the top 200 companies, all of the largest trading banks, and the top four chartered accountancy firms. We can help you too.

MATERIALs HANdLING www.secureaload.co.nz Cargo care products to protect your exports and now the BIG Red Flexitank for bulk liquid.

www.tabak.co.nz Selling businesses is all Tabak does, which allows it to be fully committed to their clients throughout the sales process – from bringing buyers and sellers together and to achieving to a satisfactory.

www.liftrucks.co.nz Liftrucks NZ Ltd: Forklift sales and rental from 1 tonne to 50 tonnes. Petrol/LPGas, Diesel, Electric. Warehouse equipment to Container handling. Brands: Komatsu, Still, Hoist. Tel 0800 62606

INsURANcE

FREIGHT FORwARdERs

www.chartisinsurance.co.nz As a world leader in insurance, Chartis has been helping New Zealand exporters navigate the ever-changing landscape of risk and confidently pursue their goals since 1970. Our unrivalled global network, across 160 countries and jurisdictions, means we can respond whenever, and wherever you need us.

www.tnlintl.co.nz TNL International provides seamless, door to door services to meet our customers’ individual requirements. We specialise in offering importers and exporters tailored solutions and not a one size fits all approach, often taken by our competitors

www.qbe.co.nz QBE Insurance has been in New Zealand for over 120 years and is a leading business insurer offering a comprehensive range of quality products to cover businesses of all sizes. Products include liability, property, marine, trade credit, contract works, motor, travel and accident & health. Talk to your insurance broker about QBE. The experts in business insurance.

www.atradius.co.nz Company description: Atradius provides trade credit insurance and collections services worldwide with a presence in 42 countries. Its products help protect companies from payment risks associated with selling products and services on credit.

TRAdE cREdIT

www.redwoodcredit.co.nz Specialist trade credit insurance (cover against the failure of a buyer to pay) Broker and consultant.

INTELLEcTUAL PROPERTy www.baldwins.com Turn ideas into profit through sound IP management. Whether you’re looking to commercialise, develop, protect or enforce your IP rights call 0800 Baldwins. Mention ‘Exporter’ when you call to receive a free consultation with our experts.

www.qbe.co.nz Our Trade Credit products help protect businesses from commercial bad debts that arise when selling your goods and services on credit terms to other businesses within New Zealand and/or overseas. Talk to your insurance broker about QBE or call QBE Trade Credit on 09 308 8578. The experts in business insurance.

www.ajpark.com A J Park are the clear leaders in IP. They provide a full range of IP services, including trade mark, patent, and design protection, copyright advice, commercialisation and litigation.

sHIPPING cOMPANIEs www.swireshipping.co.nz/web/index.jsp Swire Shipping is New Zealand’s leading multi-purpose liner service connecting New Zealand with Australia, Papua New Guinea, East and South East Asia, North Asia, Noumea and West Coast USA. Services provide extensive port coverage catering for breakbulk, containerised and project cargos

www.everedgip.com EverEdge IP provides a comprehensive range of intellectual property related services to corporations, research institutions, individuals and investors with the objective of assisting organisations and individuals to generate and maximise the value of their intellectual property.

INdUsTRy TRAINING ORGANIsATIONs (ITOs)

www.piperpat.com If you need to protect your brand or create a brand, or if you need to know whether you can export your products freely without infringing other protected products or brands, PIPERS might well be your first stop and not your last hope.

www.tranzqual.org.nz Tranzqual is the Industry Training Organisation (ITO) responsible for setting world-class training standards for the commercial road transport and logistics industry sectors.

www.jaws.co.nz James & Wells Intellectual Property is New Zealand’s most dynamic firm of patent attorneys, trade mark specialists and intellectual property lawyers. Our clever thinking sets us apart in assisting clients to develop and grow their businesses.

www.lpc.co.nz LPC is the trade gateway to the South Island and a world-class supplier of port services. LPC offers a full array of shipping services to exporters and importers, 24 hours a day, 365 days a year.

PORTs

exporter is not responsible for the contents or reliability of the websites listed above and does not necessarily endorse the views expressed within them. For more information regarding these listings please contact the listings directly.

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EXPORTER 55


International Buyers looking for New Zealand products

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Next Training Weekend: 29 to 31 Oct 2010, Auckland

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56 EXPORTER

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Independant reviews of freight, banking insurance, IT, travel & more Comment & interact with buyers, other exporters & suppliers


A year’s worth of inspiration at your fingertips. The ANZ Privately-Owned Business Barometer.

The ANZ Privately-Owned Business Barometer 2011 provides

is packed full of valuable insights. To find out how other

you with inspiration based on the experiences of others. Now in

business owners are thinking ahead, download a copy from

its fifth year, this is the most in-depth survey into the attitudes

anzbarometer.co.nz. To find out how we can help your

and behaviours of New Zealand’s private business owners and

privately-owned business, call Ross Verry on 09 252 3041.

TM© Rugby World Cup Limited 2008 - 2011. All rights reserved. ANZ National Bank Limited.

ANZ2236EX


ONCE IN A LIFETIME

OPPORTUNITY EXCLUSIVE HOSPITALITY

@ THE NUMBER ONE ADDRESS IN THE COUNTRY

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LOCATED IN THE HEART OF THE RUGBY CELEBRATIONS

OPPOSITE PARTY CENTRAL Imagine your clients and staff will access their own exclusive private lounge while experiencing the excitement and buzz of the tournament. Located in QEII Square, No.1 Queen Street is right in the heart of The Rugby action. Thousands of fans walking past every day. They will see your brand and you entertaining your guests in the exclusive sanctuary at No. 1 Queen Street.

No. 1 Queen Street will operate as an exclusive private lounge every night of the tournament. As hirer of the venue you will have: Exclusive use for up to 90 guests • Glass structure and corporate marquee including carpet, furnishings etc • Multiple screens for game viewing • Catering and beverage options • Security passes • Security • Signage opportunities

For further information contact People Media Group today P: 09-3666-879 | peoplemediagroup.co.nz | E: mike@peoplemediagroup.co.nz

Exporter Issue 19  

Exporter Magazine Issue 19 July 2011

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