INDIA
PRODUCES
www.foodtechnology.co.nz 17
RELATIONSHIP BLOOMS
A relationship between the India NZ Business Council and the Trade Promotion Council of India
has been formally signed to promote products and services from the food and beverage industries
in both New Zealand and India.
The MOU will enable closer
working relationships
between the two countries,
which the two organisations
hope will create a “two-way business
street.”
Organic dairy and Manuka
honey are two products
that Indian food companies
and communities
are
particularly
interested
in
pursuing, according to INZBC Wellington
head Jay Changlani. Fresh back from
Indus Food Expo in India with a group of
Kiwi exporters, the chartered accountant
says the contingent connected with 200
direct food suppliers (such as Patanjali,
Everest, various rice brands, fresh fruits
and snacks). “Fostering relationships
and creating a platform for opportunities
for business in India and New Zealand
are key to our success,” he says. “The
INZBC team and TPCI are very excited
with this opportunity to showcase that
trade can be conducted between India
and New Zealand even without a formal
FTA agreement.” Changlani says his
organisation is committed to challenging
the perception that the delay in signing
the FTA is a hindrance in the growth
of trade between the countries.
“There is a huge untapped
potential for expanding
the business and trade
relations,” he says.
The Indus Food
Expo is a hub
for the
food
and
beverage industry to maximise business
opportunities. Supported by India’s Department
of Commerce, it is a mega trade
show for the world, where delegates
can meet 500 of India’s most prominent
sellers. Companies from around the world
gather to negotiate with selected Indian
suppliers over forthcoming procurement
deals and private labels. INZBC board
member Sameer Handa says the expo
has been a revelation to contingent members.
“With India being the sixth largest
grocery market in the world, there is huge
potential for New Zealand companies to
capitalise in this market. INZBC looks at
both channels of trade - exports and also
imports and this will boost the import
of Indian goods and services to the Kiwi
market. “Today, Indian companies are using
world-class technologies to get to the
advanced economies of the world,” Honda
says. India is the top global producer
of many food items including meat, milk,
mangoes and bananas. Food processing
alone constitutes 14% of India’s GDP.
However, New Zealand does not import
much from India. In the year ending August
2014, Kiwi imports from India were
up $47 million (11%) to $463 million, but
still contributed only 0.9% of the year’s
imports. The Indus Food Expo is poised
to emerge as a mega food and beverage
trade show duly supported by
the Department of Commerce
within the Government of India,
bringing together major Indian
businesses in food production,
packaging and supplying on a
common platform with major
global companies.
DID YOU KNOW?
A good proportion of the one billion people living
in India are getting more wealthy by the day, with
spending amongst top-end Indian consumers
expected to more than double by 2025. Only 2% of
Indian consumers buy from supermarkets, meaning
Kiwi companies need strong distribution partners
to supply street vendors and small convenience
stores. Small trial packaging is popular with Indian
consumers, as are food and beverage products
designed for special occasions and major
celebrations, such as Diwali. New Zealand
food and beverage businesses rely too
much on incorrect advice of distributors
and agents who don’t understand
how to market premium products.
New Zealand enjoys strong brand
recognition in India but is not seen
as an exporter of premium food.
43%
of world global
buffalo meat
40%
of global
production of
mangoes and
guavas
23%
of tea
22%
of global
production
of rice
70%
of global spice
production
27%
of bananas
21%
of global
production of
sugarcane and
pulses each.
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