In September 2024, Pacific Trade Invest New Zealand (PTI NZ) presented at the Enhanced Pacific Market Partnership (EPMAP) Mini Trade Forum in Vanuatu, to strengthen trade relations between Vanuatu and New Zealand.
The forum, held from 17 to 20 September, was part of the EPMAP project, a New Zealand Ministry of Primary Industries-led initiative designed to help Pacific nations improve their biosecurity systems and increase export potential. Part of this 5 output-programme is a week training in country for farmers, exporters, and government departments (biosecurity, agriculture, trade), including a Mini Trade Forum to meet NZ biosecurity and import requirements.
The event provided a platform for PTI NZ to share insights on export processes and highlight the opportunities and challenges faced by Vanuatu exporters in tapping into the New Zealand market. While the forum served as a crucial engagement opportunity, it also highlighted how Vanuatu’s Agriculture sector continues to face significant hurdles, such as inadequate infrastructure, logistical difficulties, and a lack of technical knowledge among farmers. Addressing these issues will be critical for the nation to fully realise its export potential, particularly in root crops and Tahitian limes.
Vanuatu’s export landscape and challenges
Vanuatu’s agricultural exports to New Zealand are predominantly driven by commodities such as kava. Despite the country’s rich natural resources and fertile land, its ability to meet New Zealand’s import standards is hampered by challenges in infrastructure, scale of production, and logistical management. Roads and transportation networks, particularly in remote farming areas, are often inadequate, while cold-chain infrastructure for transporting perishable goods is limited. Additionally, the frequent impact of natural disasters, such as cyclones and droughts, can devastate crops and disrupt production. Compounding these issues is the outflow of skilled labour, with many workers participating in seasonal employment schemes in Australia and New Zealand. This migration contributes to the labour shortages at home, which in turn affects agricultural productivity.
Building capacity and knowledge
During the Mini Trade Forum, PTI NZ’s primary objective was to impart critical market insights to help inform Vanuatu’s growers and exporters to be able to gain a deeper understanding and appreciation of the New Zealand market’s requirements, particularly for fresh produce. The goal was to equip Vanuatu’s exporters with the knowledge and resources necessary to overcome the barriers they face in accessing the New Zealand market.
Speaking to PTI NZ after the forum, Joel Rarua of Smol Aelan Supplies said, “PTI NZ’s Presentation offered a good understanding on how to access markets in New Zealand.
Not only access but also having a better understanding of the market demand that will help us processors to adapt our root crops and produce offer to the New Zealand marketplace.”
Several commodities were identified as having strong potential for export to New Zealand. Root crops, such as purple taro and yellow cassava, were noted for their promise, although maintaining the quality required for the New Zealand market remains a challenge. Tropical fruits, including pineapples, mangoes, and Tahitian limes, were also highlighted as potential high-value exports. The market for Tahitian limes, in particular, could benefit from coordination among growers to increase production and ensure a reliable supply. Competition from Vietnam, however, presents a challenge, as Vietnamese limes are priced lower but are of similar quality. Meanwhile, coconut remains a stable export commodity, though further investment in plantation maintenance is needed. Ginger, which has shown potential to stand out through its quality and taste, is also a possible new export commodity, though it is unlikely to compete with the volume of Thai ginger.
Julie Juliano, who participated in the Mini Trade Forum said, “As a woman-owned [SA1] enterprise, PTI opened up this opportunity for me to understand that I am not alone in this journey; there’s help to facilitate my enterprises and help me succeed in international markets through the delivery of integrated programmes, which provide trade and market intelligence and create connections to international markets, as well as promote inclusive trade, and strengthen investment support to my business.”
Export commodity updates and progress
The forum also provided updates on key export commodities. Root crops, which began being exported during the COVID-19 pandemic, have encountered quality issues, leading to rejected shipments in 2022. Support continues for exporters working to improve product quality. A few companies have been identified as having strong export potential due to their focus on sustainability and consistent supply. These businesses prioritise traceability and sustainability in their operations. One company, which has HACCP certification and its own packing facility, requires a blast freezer and packaging upgrades to meet the standards of New Zealand buyers.
Tahitian lime exports, which resumed in 2023 after a brief pause due to biosecurity concerns, have faced challenges competing with lower-priced Vietnamese suppliers. Local growers are now struggling to increase production to meet demand from New Zealand buyers. Regarding ginger exports, a new local exporter is preparing five containers for shipment in October and is actively engaging with potential buyers in New Zealand.
Ongoing challenges of freight and logistics
One of the key challenges identified during the forum was the inefficiency of Vanuatu’s freight and logistics system. Poor infrastructure at ports and airports, combined with insufficient ship maintenance, leads to delays and higher costs for exporters. The lack of adequate cold-chain systems further exacerbates the situation, particularly for perishable goods. While there are options for shipping via Fiji Airways and international freight forwarders like DHL and FedEx, these solutions are costly and often involve routing through other countries, increasing transit times. Exporters are now exploring partnerships with Solomon Airlines, to secure more competitive rates for shipping to New Zealand – but it remains very expensive.
While the EPMAP Mini Trade Forum was a valuable opportunity for Vanuatu exporters to engage with potential buyers and learn about the New Zealand market, there is still much work to be done. The country’s agricultural sector must overcome significant challenges, particularly in logistics, infrastructure, and product quality, to realise its full export potential.
The key messages PTI NZ delivered at the forum highlighted the need for Vanuatu, and other Pacific Islands, to shift towards a market-driven export strategy with better coordination among farmers, exporters, and government departments. It was emphasised that transitioning to semi-commercial and commercial farming is crucial, but [insert subject[SA6] ] must also address common challenges such as logistics (inland and inter-island transport), infrastructure gaps, freight limitations, and staff shortages. These insights are applicable across the Pacific region, not just in Vanuatu.
With PTI NZ’s continued support, Vanuatu’s growers and exporters have the opportunity to strengthen their position in the New Zealand market and develop a more coordinated and sustainable approach to international trade.
