Canada offers opportunities for N.Z. exporters

Press, 13 November 1985, Page 50

Canada offers opportunities for N.Z. exporters

By

NEILL BIRSS

Canada is about to emulate New Zealand in deer farming, as other countries have emulated it in kiwifruit raising. This was obvious when about 100 Christchurch business people were addressed by Canadian importers. Mr Norm Legare, from a Canadian agriculturalequipment distributor, said that, stimulated by the New Zealand example, there was now much interest in deer farming in Canada. The bright side for New Zealand is that this is stimulating a potentially huge demand for New Zealand agricultural equipment, such as fencing. The message of Mr Legare was that there is a big market in Canada for New Zealand agricultural technology. He was one of the Canadian importers brought to the country by Air New Zealand and the Department of Trade and Industry to mark the introduction of direct air services between British Columbia and New Zealand. They also addressed a seminar in Auck-

land, attended by about 100 business people. The department was at the point of turning the interested away from the seminars, such was the response. The importers last week spelled out the advantages of exporting New Zealand products to Western Canada: sea freight rates that were comparable with the costs of bringing goods from eastern Canada; low,, preferential tariffs for New Zealand; and a popular image. Mr Tony Gervan, the New Zealand Trade Commissioner in Vancouver, who accompanied the party, added another advantage: the average New Zealand wage is about $295 a week, compared with SNZ6SO a week in Canada. The New Zealand authorities are hoping that the new air links with British Columbia will stimulate exports to British Columbia in the way that the air service to Los Angeles stimulated trade with southern California.

Many of Christchurch’s most progressive exporters, such as Dynamic Controls, which makes controllers for

electric vehicles, and Betacom, which makes computer cabinets; have established export beachheads in southern California.

Several New Zealand products have been doing well in Western Canada, including sheepskin garments, wood stoves, carpet, woollen clothing, gas conversion equipment for vehicles, and Steinlager beer. Crown Crystal has sold about SIM worth of glassware in its first year in the market. The agricultural equipment field described by Mr Legare is one of many of the more exciting possibilities.

As well as deer farming, the Canadian Government is encouraging the development of sheep farming. His firm is distributing New Zealand shearing equipment as well as fencing. The fences sold are often in complete electric systems. The New Zealand componentry was more reliable than the Canadian products, Mr Legare said. There was no doubt that in five years Canadian firms would be making competitive products, but by then

New Zealand manufacturers could be well entrenched in the market

He added that the exports of electrical fencing must be up to Canadian Standards Association standard. Mr John Demoor, from a large food distributor, said that the sale of food in British Columbia was about SNZ4.SB a year (the population is 2.5 M). Next year, demand would be swelled by an exposition, expected to attract 15M visitors.

Many New Zealand products were extremely attractively labelled, he said,_ and stood out on the shelves.

However, he was critical of the business procedures of some New Zealand firms. Telex messages were not responded to immediately, and sometimes New Zealand firms responded to trade inquiries by referring the inquirer to an agent in Los Angeles. This would be like a Canadian exporter referring a New Zealand inquiry to an agent in Brisbane, he said. One of the importers came from the burgeoning cut-flower business. Mr

Larry Zaleschuk’s firm is based in Calgary, which has more than 125 retail flower outlets. He imports flowers regularly from the Netherlands, the United States, and Colombia, as well as New Zealand, and occasionally from countries such as Costa Rica, Spain, and Italy. Mr Zaleschuk held up the Netherlands as an example to New Zealand flower exporters. He could telephone an order to the Netherlands at 10 p.m., and have it in Calgary 14 hours later, whether it was 50 cartons or only five. The Netherlands helped with publicity material and promotion. New Zealand had considerable climatic advantages. In the next seven weeks, until Christmas, his firm would make 40 per cent of its annual sales. This seasonal demand suited New Zealand production. Demand for cut flowers was growing in western Canada as these states became more “European,” like those in the east.

He had begun importing orchids from New Zealand 18 months ago, and was now importing roses and carnations as well. Mr Zaleschuk commended flower exporters for the job they were doing, but suggested that packaging and packing of flowers into packets be improved. Susan Norgaard, a distributor of giftware, spoke of the value of new exporters marketing through small retailers, initially. This meant they would not be overwhelmed by large orders from marketing chains. Western Canadians were wearying of gift items from Asia, and found New Zealand products refreshing, she said.

A gift product landed in Canada for ?Cans would retail for about $2O. She had found items from about $lO to $l5 were selling in volume. A former Christchurch man who has lived in Vancouver for 16 years, Mr John Nicholl, spelled out the prospects for New Zealand marine products in Western Canada, where he is an executive with a distributor. Canada was unparalleled in its enthusiasm for boating, Mr Nicholl said. There was at least one boat for every three citizens. British Columbia had more than 300,000 boats. Canadian importers did not take kindly to being told to buy New Zealand products from American agents, he said. It meant such problems as double duties. He also said that many countries exporting to British Columbia offered to share promotion expenses. Mr Nicholl emphasised that the marine market in Western Canada continued round the year, with fishing vessels’ demands complementing those of pleasure craft.