14 November 2013 Sustainability concerns: an opportunity for exporters

As countries in the developing world become more important destinations for New Zealand exporters, researchers at the Agribusiness and Economics Research Unit are helping to build a greater understanding of the demands of emerging markets.

Changing consumption trends amongst a growing middle class of Chinese and Indian consumers could indicate a significant opportunity for New Zealand exports, particularly in high premium market segments. To provide key insight for exporters, research is currently underway to investigate the rise of sustainability attributes in food purchasing decisions on a government, retailer and consumer level in these countries.

Agribusiness and Economics Research Unit (AERU) Researcher Tim Driver said this research is important because New Zealand, as an agricultural nation, relies heavily on export markets as an economic driver.

“New Zealand producers must be aware of any likely trends on the global food market to maximise value,” says Mr Driver. “One of the key outputs of this research is to assist exporters in making informed decisions on possible pathways for entering emerging markets.”

Growth in the importance of attributes, such as environmental quality, recyclability, and animal welfare are being driven by the rapid growth of the middle class. This means that consumers in emerging markets are increasingly younger, more urban and more concerned with the values associated with their purchasing decisions.

“Assessing attitudes towards sustainability in these markets is very difficult because not only are attitudes being driven by changes in the society as the markets develop, but these countries also have important traditions when it comes to the food they eat,” says Mr Driver.

“In China, food is almost a spiritual experience; in India, food is intrinsically linked with the idea of health. So when New Zealand’s exporters are seeking to position themselves in the eyes of Chinese and Indian consumers, they are grappling with thousands of years of tradition.”

As countries in the developing world become more important destinations for New Zealand exporters, researchers at AERU are helping to build a greater understanding of the demands of emerging markets.

The research also has global implications, as tracking and understanding changes in food choices could influence and mitigate climate change, and other associated environmental degradation, as well as create increased awareness and demand around the concept of ethical consumption.

For more information about research at Lincoln University, read the University’s research profile publication Transform.