Where we need to be in 2025 New Zealand Seafood. George Clement, Executive Chairman Seafood New Zealand

Transcription

1 Where we need t be in 2025 New Zealand Seafd Gerge Clement, Executive Chairman Seafd New Zealand 19 August 2015

2 We have what the wrld needs. 2 Fd that is: Natural Healthy Safe Given lnger term incme and ppulatin prjectins, glbal fd prductin will need t increase 40% by 2030 and 70% by 2050, FAO 2009 The seafd sectr prvides an envirnmentally sustainable, natural, healthy & nutritius fd surce

3 Surce: CSIRO Wrld Demand fr Fd Increasing The wrld wants what we have natural, healthy and safe fd 3 ~40% increase in next 10 years

4 Wrld Urbanisatin & Wealth Increasing 4 The wrld wants what we have natural, safe, healthy fd 70% Percentage f Wrld Ppulatin 60% 50% 40% 30% 20% 10% 0% Urban Rural Surce: Wrld Bank

5 Ppulatin (billins) Wrld Middle Classes t Duble by The wrld wants what we have Asia is the engine f grwth Surce: Wrld Bank, OECD

6 Seafd The Wrld Wants What We Have 6 Glbal seafd prductin increases 1950 t % 43% 74% 57% Surce: FAO

7 Where are we nw? 7 Steady exprt grwth since % f New Zealand seafd is exprted NZ$1.52 billin in % f internatinal seafd trade Wild capture returns 82% Aquaculture returns 18% Less vulnerable t price fluctuatins than dairy Gvernment s challenge: Duble exprt revenues by 2025 Surce: Seafd New Zealand

8 Year Exprts ($bn) Where we need t be in New Zealand Seafd Exprts Aquaculture QMS Refrm 2.5 Value Add Branding and Certificatin Vlume Increases Baseline 1 Year

9 Hw d we duble revenues? 10 Price increases ~3%/yr Wild capture vlume increases Branding & certificatin Increased use f raw material QMS refrns imprved management & efficiencies Aquaculture space, prductivity, new species, marketing New Zealand scampi

10 Seafd in Cntext 11 N agreed definitin f Envirnmentally Sustainable Gvernments, scientists & NGOs differ What is acceptable & hw d yu measure this? Wrld-wide need fr fd that is nutritius, safe, sustainable Balance preservatin & cnservatin All frms f fd prductin necessitate envirnmental change Seafd prductin is amngst the mst envirnmentally benign Sustainability: Prvide ur children and grandchildren with the same chices that we have

11 The Green Prtein 12 All animal prtein prductin has envirnmental impacts but seafd has been rated the green prtein - Prfessr Ray Hilbrn Impacts are significantly less than n land Envirnmental changes are nt permanent N significant use f : Freshwater Pesticides Herbicides Hrmnes GMOs New Zealand hki

12 Mre reasns t be Cheerful 13 Glbal fish prductin cntinues t utpace ppulatin grwth: Glbal ppulatin grwth: 1.6% Seafd prductin grwth: 3.2% Nutritinally, seafd is part f the slutin, nt part f the prblem Time t change the cnversatin and tell ur stry. But wh are we talking t, hw d they listen, and what d they value?

13 Seafd Cnsumers Online survey by Strmline 1000 respndents: 14 84% Meat labels are clearer than fish labels 95% Unsure if wild r NZ farmed 11% UK 41% 28% AU 17% Smetimes read the label 92% Find the label cnfusing Canada 18% USA 19% 80% Admit t ignring the label smetimes Surce: Strmline

14 Seafd Cnsumers 15 Cncerns f regular seafd cnsumers 31% Stck sustainability 13% Freshness 49% Wuld cnsume 20% mre if capture Envirnmental methd, sustainability impact & rigin were easier t determine! 33% wuld nt 23% Cuntry f rigin Canada (27%) NZ (23%) Nrway (21%) % Capture methd Surce: Strmline

15 Review f seafd cnsumer demgraphics 15 High-level scilgical & demgraphic study n seafd purchasing behaviurs. Literature review f 300+ reprts (academic, cmmercial, gvernment). Reviewed the spending, cnsumptin, and purchasing preferences by demgraphics within selected cuntries China, United States, Eurpe, United Kingdm and Australia. Glbal Lens Review f glbal characteristics & trends Cuntry Lens Lked at key exprt markets fr New Zealand seafd: CN, USA, EU, UK, AU Generatinal Lens Review f generatinal characteristics & preferences Values Lens Lked at value attributes beynd the direct experience

16 What are the key demgraphics? 16 Purchasing preferences and values differ with age grups Yunger generatins are very similar arund the wrld glbalised and digitally cnnected. 45% Gen Z & Y (<38 years) Tech-cmfrtable. Mistrust in plitical systems. Always digitallly cnnected. FB Generatin. Islated frm their physical envirnment. 15% Gen X (39-50 years) Individualistic. Flexible. Sceptical f authrity. Cnnect nline as ften as they scialise in persn. 40% Bmers and Silent + Greatest (>50 years) Willing t explre. Optimistic. Wrk-centric. Respect fr authrity. Lyal. Hardwrking. Surce: Indexmundi

17 What are the key demgraphics? 17 Seafd cnsumptin per capita in ur traditinal markets is declining (Japan, East Asia/Pacific) r stable ( Eurpe, USA). China is grwing. Histric and prjected seafd cnsumptin (kg) per capita Glbal Eurpe USA East Asia & Pacific China Japan Surce: Wrld Bank

18 What are the key demgraphics? Affluent cnsumers (annual incme >NZ$51,000) have mney t spend, are the mst plitically active, influential and the mst likely t research what they buy. 18 Number f affluent urban husehlds predicted in 2020: 82M 11M 64M 188M 2M US UK EU CN AU Surce: Statista

19 What Assurances d they seek? 19 Initially we prpsed cnsumers might seek the fllwing assurances (after price and taste). Energy use Authentic Prvenance Natural Sustainable FAO CC Healthy Safe Water use Gvernment backed Labur We reviewed the literature t assess their relevance.

20 What Assurances d they seek? 20 Assessing 300+ reprts, we fund the fllwing t be f mst imprtance (after price & taste). Energy use Authentic New Zealand Prvenance Natural Sustainable FAO CC Healthy Safe Water use Gvernment backed Labur Hw these terms are defined and interpreted varies greatly and they are ften interrelated.

21 Prpsed Validatin Attributes 21 After reviewing the literature fur key assurances emerge. Need t determine hw these are t be defined and measured. Natural Establish & extl the natural qualities n artificial additives, antibitics, grwth hrmnes, GMOs etc Safe Assured fd safety standards buy and eat with cnfidence. Healthy Establish & extl the health benefits lw fat, high nutrients & prtein Sustainable Establish & extl ur very lw envirnmental impact. New Zealand Tgether these will build n ur brand and reputatin fr exclusive, high quality seafd These attributes are interrelated - sme buy natural because perceived t be healthy r safe. Cmmunicating these as a package will enhance their related values.

22 It s nt just abut selling seafd. 18 Our affluent cnsumers are: Plitically active Influential Researching what they buy Cncerned abut nutritin, health, natural and safety Seafd is in limited supply It s abut exclusivity. It s abut experiencing ur seafd. New Zealand scampi

23 Seafd Cnsumer Key Values Frm the literature, excluding price & taste Authentic Healthy & natural Cnvenient Fresh & safe Sustainable Fresh & healthy Natural Cnvenient Authentic & safe Sustainable Authentic & healthy Cnvenient & safe Natural & fresh Ethical Sustainable Authentic Healthy Fresh Cnvenient & sustainable Natural & safe

24 Seafd Cnsumer Key Values 20 Frm the literature, excluding price & taste Authentic Fresh Safe & healthy Natural, luxury & cnvenient Sustainable

25 By 2030 China will: 21 Cnsume: 38% f glbal seafd prductin Prduce: 57% f glbal aquaculture 17% f glbal fisheries 37% f glbal seafd

26 22 Natural Healthy Safe Fd chice mtivatins cncerning persnal health 66% 80% 85% 85% Has a well-knwn name Cntains n GMOs Will imprve my health Safe

27 Take Hme Messages 25 The wrld wants what we have safe, natural, healthy, sustainable fd With increasing wealth, high value demand fr ur seafd will cntinue t increase, especially in Asian markets Engage in a brader cnversatin sustainability and fd safety are baselines All frms f fd prductin impact n the envirnment seafd is the green prtein Tell ur stry safe, natural, healthy, sustainable & scarce Build New Zealand int the brand exclusivity, experience, assured

28 26 It s nt enugh t simply tell peple we have the best seafd We need t cmmunicate a transparent & integrated stry f ur prvenance. New Zealand has the best seafd in the wrld Rt. Hn. Jhn Key, Prime Minister 2014 New Zealand range rughy

29 THANK YOU Orange Rughy Chatham Rise NIWA