U.S. West Coast trade booming

Press, 13 June 1984, Page 31

U.S. West Coast trade booming

By

John Hutchison,

in San Francisco

New Zealand’s commercial activity is accelerating along the American West Coast, with non-traditional products being particular growth areas. Total imports from New Zealand rose in 1983 19 per cent. New Zealand’s trade commissioners for the two huge consular districts, which include Alaska, Hawaii and mountain states from the Canadian to the Mexican border, cite healthy increases in, and good prospects for, the nontraditional export lines.

About two thirds of New Zealand’s imports to the American West entered through California, with Los Angeles the principal port of entry. It had an increase of almost 23 per cent over the previous year. Next largest increase was for the harbour complex of Seattle-Tacoma in the state of Washington — 13 per cent.

Receipts through the port of San Francisco changed very little; the major portion of New Zealand goods marketed in its commercial sphere entered through Los Angeles. Establishment of trade into San Francisco Bay by the New Zealand Shipping Corporation is expected to alter the balance in the future.

“We are currently in a growth phase,” said Mr Chris Gorton in San Francisco. “We expect to see this trend continuing and developing.”

Mr John Neas, in Los Angeles, said, “significantly, the increase has been in products other than traditional imports. Beef, lamb, milk and butter have declined slightly in Southern California while the nontraditional imports have increased by 50 per cent, from SUS 42 million to $63 million.” The trade into the coastal centres for the year to last December 31 was more than $228 million, according to figures from Security Pacific Bank, which monitors foreign trade statistics.

Oregon’s intake, through the inland seaport of Portland. surged from New Zealand goods valued at $2.5 million in 1982 to $lO million in 1983.

San Diego, on California’s southern border, had a phenomenal increase from $39,000 to $513,000. However the Portland and San Diego figures are thought to be one-off surges under special circumstances. Hawaii’s share gained by 16 per cent, to reach $17.5 million. Alaska, which is not an important direct entry for cargo, since most of its imports arrive by way of Seattle, fell sharply. The increases, and the forecasts of continuing expansion, are reflected in the rapidly rising number of New Zealand companies which have entered business on the West Coast.

Food is a leading category in this development. Building products are also a growing market for New Zealand suppliers. A new company, founded by an American, will handle such items, supplied by a consortium of at least five manufacturers.

New Zealand companies have recently opened businesses or acquired agents to deal in automotive products, seeding machinery, golf course mowers and kiwifruit handling equipment in Northern California, said Mr Gorton.

Other products he named as showing recent successes or promising good prospects are woollen, suede and leather clothing, jewellery, printing, cheese, sheepskin items, wood-burning stoves and motor-cycle helmets.

He said New Zealand crispbreads were moving well off retail shelves, a pate manufacturer has plans for the California market, and honey, biscuits, goat’s milk products, lambs’ tongues and cakes are among delicacies for which New Zealanders are seeking markets.

Mr Neas reported that the import of live animals

from New Zealand — mostly horses — more than doubled in 1983, from $3.5 million to $7.5 million.

Lobster imports jumped from $1.7 million to $6.9 million. Clothing imports more than quadrupled over the $2.7 million of 1982.

Fruit, roofing tiles, agricultural machinery and transportation equipment (mainly boats) improved sharply.

There were successes in several New Zealand categories new to the market here: electronic controllers for wheelchairs and golf carts, fuel injection components for auto engines, highstyle fireplaces, furniture and printing. Many of the new ventures have been inspired by or assisted by product surveys done by the New Zealand trade office.

The San Francisco personnel have analysed interviews with scores of importers, brokers, wholesalers and retailers on specific lines of products to examine market potential, pricing, shipping, delivery and customs requirements. They also identify pitfalls and obstacles which might confront the exporter.

Mr Gorton’s office did surveys in 1982 on boats and marine supplies, sporting goods and housewares. In 1983, markets were explored for agricultural machinery, building supplies and wool sweaters. Under way now is a study on automotive products. Two others — on printing and computer software — are planned for this year. The trade offices in both cities do a brisk and growing traffic in New Zealanders seeking markets and Americans seeking New Zealand products. They also recruit what are called “inward missions,” a term referring to representatives of American interests who visit New Zealand to find suppliers or joint venture Eartners. Several missions ave resulted in very successful trade relationships.