SCL
08/08/2014 08:36
GENERAL
REL: 0836 HRS Scales Corporation Limited
GENERAL: SCL: China market, new collaboration for NZ primary industries
Media release
8 August 2014
China market, new collaboration for New Zealand primary industries
Quicker and easier entry to the complex mainland China market will be
assisted by a new collaboration of New Zealand primary industry businesses.
Newly formed Primary Collaboration New Zealand Limited has established a
China services company (ServeCo) as a wholly foreign owned enterprise (WFOE)
in Shanghai to provide 'in-market' services in the People's Republic of
China.
The collaboration stems from the inaugural New Zealand Primary Sector
Bootcamp movement held by industry CEOs and government agency leaders at
Stanford University in 2012.
Member companies will initially include Sealord, Silver Fern Farms, Synlait
Milk, Villa Maria Estate, Kono and Pacific Pace. Pacific Pace is itself a
collaboration between Hawke's Bay horticulture businesses Mr Apple,
CrasbornGroup and J M Bostock Group.
ServeCo will provide services such as central Shanghai office facilities,
administration and support staff and food preparation for members' in-market
representatives.
The concept will enable members to provide a higher level of contact and
locally- based liaison with their respective importers, wholesalers and
customers. Further, ServeCo will grow relationships with Chinese authorities
and New Zealand government agencies in China.
Primary Collaboration NZ Chairman Andy Borland is Managing Director of
Christchurch-based Scales Corporation which owns Mr Apple. He says ServeCo
provides tangible benefits for members.
"China is probably New Zealand's most important market now and in the future.
However, many primary sector exporters have limited insight into the market
beyond the point of sale which is often their China-based importer or
distributor.
"We discussed this at length at the Primary Sector Bootcamp - how we could
improve our understanding of the vast Chinese market. Creating an in-market
presence to improve and facilitate our respective business interests there
seemed like a no-brainer," Mr Borland says.
"Market knowledge is a valuable commodity and ServeCo has been set up to
improve in this area, and understand how it relates to the value chain and
customers. We also want to lower the cost and risk of entry to China. It is
the members who decide what services best suit their needs."
Borland says ServeCo represents a good opportunity for New Zealand Primary
Sector businesses with an eye on exports to China to be part of a bigger
group and enjoy economies of scale while sharing valuable market insights.
The wholly foreign owned enterprise structure enables ServeCo to operate in a
leaner and more efficient manner avoiding what can be a complex and costly
transaction associated with establishing a stand-alone business there,
Borland says.
Core services may change over time and be supplemented by additional services
determined by the collective needs of the members.
New Zealand Trade and Enterprise (NZTE) has supported the venture by
providing resources and co-investment. In effect matching costs associated
with the members' formation funding. CEO Peter Chrisp, says that NZTE is
looking for opportunities to build coalitions of companies to go-to-market
together. "In a small country like NZ it makes sense to "collaborate to
compete".
Borland says NZTE has been very supportive.
"They are buoyed by the fact leading New Zealand primary sector exporters are
willing to collaborate to grow exports into the vast and growing market that
China represents.
"As members and strategies evolve over time, so will the services. However,
the key focus as market knowledge grows will be identifying where all members
can profitably grow their business in China," Borland says.
Ends
Issued for Primary Collaboration NZ Ltd by Pead PR
Contacts:
Andy Borland, Chairman, Primary Collaboration NZ Ltd, Tel: 021-975 999,
email: [email protected]
Leandri Smith, Pead PR, Tel: 0-9-551 2377, Mob: 021 365 9003, email:
[email protected]
End CA:00253626 For:SCL Type:GENERAL Time:2014-08-08 08:36:14
