NZ PM sees Thailand as ‘launching pad’ for better SE Asia relations
And at the start of the trip, John Key highlighted how the country could serve as a stepping stone for food companies to enter its lesser explored neighbours.
Although nearly two-dozen Kiwi corporate representatives across a number of industries have joined the PM, those from the food segment will be key to restoring faith in New Zealand products after Thailand was one of the countries to withdraw the Fonterra-produced milk powder, which was thought at the time to be contaminated.
Dairy products to Thailand account for almost half of total New Zealand exports of NZ$626m to the country at NZ$287m, followed by cereals (NZ$48 million) and edible nuts and fruit (NZ$43 million).
Industry deals
Representing the ingredients side of the industry on the visit is the Mount Maunganui-based Taura Natural Ingredients, which is one of the world’s biggest suppliers of natural fruit products.
During the trip, the prime minister will be present at the signing of an agreement to launch Wel-B Fruit Bites, a new bagged snack product for the Thai market, which has been produced by local company Joe-Ry Family using Taura’s URC mixed berry fruit flakes.
Key called such agreements "symbolic signings” that demonstrated how New Zealand and Thai companies were "working more closely together and are ambitious for their future together”.
Among other agreements to be announced is a deal between New Zealand engineering consultancy Beca and Thailand-based beverage producer Green Spot to design services for a new beverage facility.
Launching pad
Interestingly, Key was keen to stress that Thailand was now being seen by New Zealand companies as a "launching pad" into nearby countries, especially Myanmar, Cambodia and Laos.
"Myanmar over time is at a very different phase compared to Thailand but we're very confident about Myanmar in the long haul," he said.
David Catty, executive director of the Asean New Zealand Combined Business Council believes that using Thailand as a first stop for food companies looking to move into the lesser explored markets of Southeast Asia is the right approach.
He told us: “The prime minister is right, in that Thailand is a pretty vital market, and with its markets is a good stepping stone, just as Singapore has been and Hong Kong is for access to China.
“It is still seen as complex for companies to work directly in countries like Myanmar and at this stage, Fonterra aside, there aren’t really many established links.”
That’s not to say that there aren’t any links, he added, pointing out that New Zealand now has a chargé d’affaires in Yangon.
