Market For Food In Rich, Hungry New Caledonia

Press, Volume CVII, Issue 31542, 2 December 1967, Page 24

Market For Food In Rich, Hungry New Caledonia

(Specially written for "The

PreaB ,, by

KATdLIBN HANCOCK)

Now, if ever, is the time for New Zealand to push her food exports in the Pacific. We don’t even have to look very far in the initial stages. There’s a hungry and growing market for our produce just off our starboard bow.

On the mineral-rich island of New Caledonia pockets are so well-lined that fabulous sums are spent on food. Frozen New Zealand cake is flown into this French island by the ton. And according to Noumea businessmen, the quantity could be increased tenfold, for local housewives queue for two city blocks when the word goes round that an air cargo of good Kiwi cake has arrived in the shops. French pastrycooks prefer our butter to Australian. The local gourmets go for the green New Zealand asparagus. Astonishingly enough, New Caledonians love our cheese, and they’ve always drooled over our extra rich icecream. Even before devaluation these New Zealand products found a ready ijarket in New Caledonia, in spite of. the extra cost of air freight.

Lamb In Demand Beef and veal are raised on New Caledonia's east coast—the Island even has a small canning factory.. So these meats are therefore protected. But lamb and pork have free entry all year round and are in great demand. There's protection for local market gardeners for the cooler six months of the year—but for the other half the island is hungry for green vegetables. The same applies to potatoes. Apples and pears are eagerly sought throughout the year. But a stroll round the wellstocked shelves of Noumea’s big stores ifiscloses Australian butter, cheese; lamb's tongues, powdered milk. Fruit Juice and soups come from the United States“Frenc!h merchants shake their heads sadly over New Zealand's lack of shipping and—more important—lack of enterprise compared with their Australian cousins. There’s a tale told in Noumea about a French suggestion that New Zealand should have a permanent trade representative in New Caledonia. “But we have one,’’ protested the New Zealand Minister concerned. “Who Is ft?" asked the New Caledonian. “The Australian Consul," said the Minister.

Lack Of Shipping Last month lhe representative of a big New Zealand food export firm said to me: “We could sell Australia and the United States off the map if only we had the shipping. But those ships have got to run regularly even if the only thing in the hold to begin

with is a couple of feathers.” We don’t need big ships for this run, but reliability and frequency are the operative words. Even with the price advantage we now have with devaluation, we won't be able to compete with Australia in New Caledonia with the present two monthly shipping service. No merchant in Noumea is willing to see his capital tied up for so long when he can get a quick turnover using the three-weekly service from Australia. In 1968, the Government’s outlay in making up the Holm Shipping Company’s losses on the half-empty holds of the Auckland-Noumea run was $60,000. Out of the beginnings of this inter-island trading venture New Zealand gained $516,000 in overseas currency. You don’t need to be an economist to see the point there. If the Government guarantee had not been withdrawn early this year, the Holm Company has estimated that by now there would have been no need for any subsidy at all. The first trips had carried only 60 tons of freight Then the tonnage began to creep up —to 100 tons, then 300. By now the 500 tons needed to fill the holds would have been achieved. And if the demand had gone on increasing at the same rate, more ships would have been needed to ship -New Zealand meat apples, pears, butter, cheese, powdered milk, frozen cream and ice cream to join those tons of New Zealand cake that now make their way by air on to the tables of Noumea.

If the Holm Shipping Company cannot carry initial operating costs until this most promising m'arket is developed, surely the export of foodstuffs is important enough to throw up someone who will. Perhaps some enterprising group could buy up a few of those idle coastal vessels that are cluttering up our ports these days.

Tropical Selling Salesmanship is a crucial part of establishing a new market, particularly when your competitor is well entrenched, and salesmanship in the tropics requires a lot of rethinking. High pressure selling will get you nowhere. In this easy-going atmosphere, the salesman who has the time to chat for half a morning is the one who gets the order. But he must turn up often and must know his product By and large, the Noumea businessman looks on trade missions with a jaundiced eye. No member of the last trade mission to New Caledonia had a word of French. Nor did an interpreter accompany the party. Local buyers want to see the men who can answer questions, who have made a preliminary exploration of the territory and are therefore familiar with the requirements of the market This applies all over the Pacific area from Fiji to Japan.

New Caledonia is not only a rich market but also an expanding one. The tourist figures for 1967 are expected to be double those of 1966. And tourists must eat. There has been a tremendous wave of immigration from French North Africa. In the last four years the population of this island has increased by 15 per cent—from 87,000 to 100,000, with no unemployment and a basic wage much higher than ours. The entry into nickel mining of two great overseas companies —Kaiser of the United States and International Nickel of Canada—will be the forerunner of more riches and a greater population. Moreover, this is no flash in the pan. There is enough ore in New Caledonia to last both these companies and the well estab, lished Societe Le Nickel of France for more than 200 years. Devaluation Aid It will not be easy to beat up trade for New Zealand in New Caledonia overnight We are far behind the Australians, who have done a great job of selling, advertising and shipping. Australian salesmen have made friends and influenced people, and till now the New Caledonian has spent nearly all his food francs in Australia. Devaluation could swing New Caledonia’s merchants our way. The market is close, wealthy and expanding. And New Zealanders are popular in this French island.

Given shipping, quality, and competitive prices, we should be able to do enough business

with these near neighbours Of ours to fill a tidy corner of that large empty bag we seem to have been left holding. If we give good service we can’t lose. What are we waiting for?