Feb 16 2015

Monthly Update - February 2015

TNZ Strategy

After much discussion and debate the TNZ strategy is complete. Below is the foreword form the Chair followed by the key strategies. In the TNZ board meeting this month initiatives to progress these strategies will be identified and prioritised.

 

Foreword from the Chair

This strategy is designed to be a template to assist the commercial fresh tomato sector to double in value to $200M by 2020, while at the same time helping to identify the areas where Tomatoes New Zealand can act as a facilitator, an aggregator or a prompt, in addition to the more normal functions of an industry body – representing the interests of the majority of growers in areas where there is a benefit for a national voice to be heard, and managing research and development on behalf of all growers.

The sector will only grow to $200M by 2020 if there is a significant increase in the value and the volume of tomatoes exported from New Zealand. This export focus is quite rightly a commercial decision for individual companies to make – the strategy can only suggest topics such as focus on premium products targeting premium markets, or the benefits of collaborative models to avoid competition on price. The role of Tomatoes New Zealand is to provide facilitation or to challenge as appropriate and as requested by individual companies.

This acceptance of the importance of export-led growth does not imply that we as a sector have a diminished interest in the domestic market. Far from it. We know that a great deal of value is either created or destroyed through behaviour in the domestic market – and for the majority of our growers, the domestic market is the only market that they are exposed to. We are keen to do what we can to assist all growers to have a better understanding of what is happening across the whole sector in terms of planting, pull-outs and so on, so that they can maximise the value of their produce.

We are also mindful of the need to collectively lift our game through better integration with science, through a focus on continuously improving the sustainability of our businesses, and through effective sharing of best practice.

We have a great product, with proven health benefits, and enthusiastic and capable growers who make a significant impact on their local economies. But we can do better! We MUST do better if we are to continue to attract investment and to grow the returns to our growers.

 

Key Strategies

Market-led Export - Identify and access offshore markets with a focus on those markets where we can deliver a premium product that gets a premium price.

Collaboration to Create Scale - A commercially co-ordinated approach to create scale to access markets.

Sharing Best Practise and Information Transfer - Identify information available or the need for information to be developed and provide or encourage appropriate forums and methods for this information to be shared and used.

Orderly Domestic Market -Collect knowledge about planting, production and wholesale volumes and prices and utilize to enable growers to better understand market dynamics.

Enhance Sustainability - Identify factors that will enhance economic, environmental and social sustainability and develop new research, development and/or extension programmes to address these.

 

The full TNZ Strategy document is available on the TNZ website at http://www.tomatoesnz.co.nz/about/strategy.