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NZTE-supported coalition succeeding in China

Profile

New Zealand King Salmon joins forces with Primary Collaboration New Zealand to undertake supply to China.

Who would have thought five years ago that NZTE would be behind the establishment and now growth of a group of NZ Primary Producers in China? Back in 2012 at the inaugural New Zealand Primary Sector Boot Camp (Te Hono) at Stanford University where industry leaders supported by a government agency came together, many of the companies acknowledged that China was likely to be an important part of their future but admitted significant gaps in their knowledge of the market, the trade, the consumers, and the competition.

As a result several of the CEOs supported by NZTE created, then implemented, a plan to open a shared office in Shanghai which would give these companies a base for their in-market teams;  allow them to gain a better understanding of the complex China market; and, facilitate easier access to China. The founding companies were Sealord, Silver Fern Farms, Synlait Milk, Villa Maria Estate, Kono, and Pacific Pace, which is a collaboration between Hawke’s Bay horticulture businesses Mr Apple, Crasborn Group and J M Bostock Group.

Following the initial support at the Te Hono Boot Camp, then Trade Commissioner Shanghai Mike Arand assisted this group to assess and establish the PCNZ (Primary Collaboration New Zealand) model. NZTE also assisted with International Growth Funding, Beachhead Advisor knowledge, and seconded Jessie Zhao, one of our Shanghai Business Development Managers, for 12 months to establish the WFOE (Wholly Foreign Owned Enterprise) legal entity.

The PCNZ group of companies are also regular users of NZTE services especially drawing on the advice, knowledge, and expertise of our China-based Beachhead Advisors and PCNZ companies have just completed their second Accelerate China In-market Immersion programme.

These six companies came together and opened the office in April 2015 with four people, including a General Manager and supporting staff for PCNZ. Today PCNZ has a total of 12 staff employed and represents wild caught seafood, free range beef, lamb and venison, infant formula and dairy based nutritional ingredients, sustainable wine production and marketing, farmed mussels and oysters, fruit leathers and apples.  With the addition of New Zealand King Salmon, sustainable aquaculture farmed King Salmon has been added to the portfolio.

PCNZ offers an option for New Zealand companies planning to establish a presence in China and NZTE will continue to support PCNZ as it continues to evolve and grow in one of the most promising yet most challenging markets for our primary products.

For more information on PCNZ please click here to go to the PCNZ Website and for information on the addition of NZ King Salmon to the PCNZ group click here.

Pictured: Mike Arand

This article was first published in the Exporter