N.Z. export efforts in Hong Kong drop

Press, 10 March 1982, Page 26

N.Z. export efforts in Hong Kong drop

NZPA staff correspondent Hong Kong Lower wool prices, lost aluminium sales, and the decision of Air New Zealand to end one of its twiceweekly flights are among factors which contributed to a disappointing over-all performance by New Zealand exporters on the Hong Kong market in 1981.

According to figures released by the Census and Statistics Department in Hong Kong imports from New Zealand increased in value by 8.8 per cent to $HK492.6 million (about $NZ103.7 million). . Total imports of $NZ29,132 million were up 24 per cent, with the main suppliers, Japan and China, increasing their sales 25 and 34 per cent respectively. Australia, the tenth main source for imported goods, increased sales 18 per cent to $NZ422.1 million. New Zealand’s trade commissioner in Hong Kong, Mr Raymond Jeffries, said he would have to be disappointed in any increase of less than 10 per cent in the level of imports from New Zealand. A full breakdown of the trade statistics is not yet available, but Mr Jeffries said imports from New Zealand had started “pretty well” in the first quarter, but then began to drop away.

Based on the breakdown of trade figures during the first nine months of the year it appeared that New Zealand aluminium sales to Hong Kong had dropped by about JNZ6.36 million, or 40 per cent, and there had been a similar decline in the value of sales in the textiles, fibres and yam category, which partly represented a drop in wool prices and sales. Some food sales had also declined with The Apple and Pear Board preferring other markets to Hong Kong and chilled meat sales to hotels dropping after the reduction in Air New Zealand's direct DCIO service in October.

One of the big success areas for New Zealand exporters to Hong Kong during 1981 was in dairy products. Mr Jeffries said New Zealand now appeared to have about 75 per cent of the Hong Kong butter market and he expected the over-all value of dairy sales to increase 150 per cent. There had also been significant increases in the sales of plywood, kraft products and various manufactured goods. Newsprint sales would probably show little increase, but, he said, that largely reflected an inability to supply. While Hong Kong’s purchases from New Zealand showed no increase in real terms during the year, the

same could not be said for its sales. But two-way trade remained in New Zealand’s favour.

Total Hong Kong exports to New Zealand were SNZB6.2 million, made up of SNZ6B.7 million worth of domestic products and SNZI7.S million of re-exports. The domestic exports to New Zealand represented an increase of 30.5 per cent and the re-exports were up 61 per cent.

Mr Jeffries said most of the re-exports would have originated in China. Some would have come from Taiwan.

The statistics show Hong Kong’s total domestic exports increased 18 per cent during 1981 to $NZ17,038.8 million and re-exports 39 per cent to $NZ8787.2 million.

The United States was by far the colony’s most important market, buying $NZ6147.4 million worth of domestically produced goods, an increase of 29 per cent China, the fifth most important market, nearly doubled its purchases, spending ?NZ615.6 million on domestic goods. Australia was sixth on the list, increasing its purchases 40 per cent to $NZ570.5 million.

Hong Kong also does a substantial re-export trade with China which showed a 73 per cent increase.