August 19,

ECAM ProJECT
2017

PRODUCT TO BE EXPORTED:

 Sugar Cane Juice packs

Country Overview (NEWZELAND):

FACTS DATA
Capital Wellington
Total Area 268,021 km2
Total Population 4,806,630
GDP 185 billion USD
Currency NZ dollars
PKR 77.05 1 NZD
Average temperature in Summer 25-40 Celsius
Average temperature in Winter 7-15 Celsius

EXPORT OVERVIEW:
New Zealand is heavily dependent on international trade, particularly in agricultural products. Exports
account for 24% of its output, making New Zealand vulnerable to international commodity prices and
global economic slowdowns. Food products made up 55% of the value of all the country's exports in
2014; wood was the second largest earner (7%). Its major export partners are Australia, United States,
Japan, China, and the United Kingdom. On 7 April 2008, New Zealand and China signed the New
Zealand–China Free Trade Agreement, the first such agreement China has signed with a developed
country. The service sector is the largest sector in the economy, followed by manufacturing and
construction and then farming and raw material extraction. Tourism plays a significant role in the
economy, contributing $12.9 billion (or 5.6%) to New Zealand's total GDP and supporting 7.5% of the
total workforce in 2016. International visitor arrivals are expected to increase at a rate of 5.4% annually
up to 2022.
Wool has historically been one of New Zealand's major exports. Wool was New Zealand's major
agricultural export during the late 19th century. Even as late as the 1960s it made up over a third of all
export revenues, but since then its price has steadily dropped relative to other commodities and wool is
no longer profitable for many farmers. In contrast dairy farming increased, with the number of dairy
cows doubling between 1990 and 2007, to become New Zealand's largest export earner. In the year to
June 2009, dairy products accounted for 21% ($9.1 billion) of total merchandise exports, and the
country's largest company, Fonterra, controls almost one-third of the international dairy trade. Other
agricultural exports in 2009 were meat 13.2%, wool 6.3%, fruit 3.5% and fishing 3.3%. New Zealand's
wine industry has followed a similar trend to dairy, the number of vineyards doubling over the same
period, overtaking wool exports for the first time in 2007.
New Zealand is an island and borders Australia, Fiji, Norfolk Island and Tonga by sea.

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EXPORTS:
In 2015, New Zealand exported $35.8B, making it the 54th largest exporter in the world. During the last
five years the export of New Zealand have increased at an annualized rate of 2.6% from $31.4B in 2010
to $35.8B in 2015. The most recent exports are led by concentrated milk which represent 13.3% of the
total exports of New Zealand followed by sheep and goat meat which account for 6.25%.

Machines

The top export destination of New Zealand are China ($6.14B), Australia ($5.7B), United States($4.18B),
Japan ($2.27B) and the United Kingdom ($1.24B).

What does New Zealand Export to Pakistan?

In 2015, New Zealand exported $48M which the major portion was of dairy products followed by fruits ,
vegetable seeds , animal hides and Scrap iron.

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IMPORTS:
New Zealand Imported $35.7B worth of goods in 2015 making it the 57th largest importer in the world.
During the period of 2010 to 2015 New Zealand have increased an annualized rate of 3.8%, from $28.5B
in 2010 to $35.7B in 2015. The most recent imports are led by cars which represents 8.21% of the total
imports of New Zealand followed by crude Petroleum.

New Zealand import goods from all over the world but 20 percent from its import came from China. As
New Zealand is also in an agreement with china which is known as New Zealand-China free trade
agreement . The New Zealand–China Free Trade Agreement is a bilateral free trade agreement signed
between the People's Republic of China and New Zealand in April 2008. It is the first free trade
agreement that China has signed with any developed country, and New Zealand's largest trade deal
since the 1983 Closer Economic Relations agreement with Australia.[1] The New Zealand-China FTA was
signed on 7 April 2008 in Beijing, after negotiations that spanned fifteen rounds over three years. It
entered into force on 1 October 2008, after ratification by the New Zealand Parliament. The provisions
of the agreement are expected to be phased in gradually over 12 years, fully coming into force in 2019.

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AGRI PRODUCTS IMPORT FROM AROUND THE WORLD TO NEW ZEALAND:

The import of agriculture related product is worth $3.4Billion approx.

PAK-NEW ZEALAND TRADE:

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New Zealand exports to Pakistan in 2004 were worth $24.4 million, by 2007 they rose to NZ$ 85
million. Exports from Pakistan to New Zealand were worth NZ$ 67.2 million. Bilateral trade is limited to
NZ$137 million as of April 2012 and has exhibited only moderate growth over the last decade. The
majority of New Zealand's exports consist of pumps, dairy products, wool products and other animal
products, while Pakistan exports are mainly textiles such as linen, cereals and apparel/carpets.
Pakistan and New Zealand had signed a trade agreement in 1990. As part of this agreement both sides
will have to hold meeting of the JTC, which had been delayed for almost 22 years. After a 22-year gap,
the inaugural session of the Pakistan New Zealand Joint Trade Committee (JTC), was held at Wellington,
New Zealand in March 2012 to review the entire gamut of bilateral trade and ways and means to further
enhance the economic co-operation.
In 2015 Pakistan exported about $51M of goods to New Zealand.

Agriculture related product are also exported to New Zealand in which Rice 6.1 percent of total export
which is $3.1M. After rice Confectionary sugar is the second major agriculture related product. Other
products are spices, sauces and vegetables.

Fruit Juices are also exported to New Zealand although quantity is very low that is 0.090% of 51M that
becomes $45.9K.

SUGARCANE JUICE IS IT WORTH?

New Zealand is the country that loves fruits. In 2012 average per capita consumption of juices in New
Zealand was estimated at approximately 25 liters, accounting for the tenth highest juice consumption in
the world. It is thus ironic to note how little of these fruit juices actually contain the nutrient benefits
offered by the real deal. The New Zealand juice industry along with that of Australia is today caught in a
minefield of ethical concerns with regards to its ability to provide the consumer with nutrient rich, fruit-
filled juices at viable prices.

New Zealanders spend $1.2 billion a year on non alcoholic cold beverages, consuming 640 million liters
of soft drinks, fruit juice, bottled water, sports and energy drinks, and flavored milk. There are over 75
New Zealand companies involved in manufacturing and importing cold beverages.

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PROCESS OF IMPORTING GOODS TO NEW ZEALAND:

WHY SUGARCANE JUICE:

As New Zealand is a fruit loving country and it is the tenth highest fruit juice consuming country in the
world, that shows an opportunity. The people of New Zealand loves nutritional juices and sugarcane has
some great benefits in it.

 It has medicinal uses for good skin and febrile disease

 Improves digestive system
 Boosts protein level

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 High concentration of calcium , magnesium, iron manganese and potassium

In Pakistan sugarcane generally harvested in winters, so availability of sugarcane in winter is not a

problem. At the same time when Pakistani people are enjoying winter the New Zealand people will be
having summer. In summer, the demand for fruit juices is very high as compared to winter.

So, at that time fresh and high quality juice can be exported to New Zealand.

ASSUPMTIONS:
1 sugarcane = 1.4 kg average

40 kg sugar cane price = 170

40 kg sugarcane will produce about 5 liter juice.

5 liter juice = 170 means 1 liter juice = 34 rupees

By adding processing and packing cost 35 rupees.

Freight Cost 30 rupees.

7 Rupees per liter other cost

Total Cost per liter at New Zealand dock: 34 + 25 + 24 +7= 90 = nearly $1

OTHER PRICES IN NEW ZEALAND

Squeezed Apple juice price/liter= $4

Orange Juice price / liter = $5

Aloe Vera Juice/liter = $4.99

Sparkling grape juice/liter= $6

REFERENCES:
 http://www.icci.com.pk/event/detail/1292

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 http://www.commerce.gov.pk/?p=1580
 http://wits.worldbank.org/CountryProfile/en/Country/PAK/Year/2015/TradeFlow/Export/
Partner/NZL/Product/All-Groups
 http://atlas.media.mit.edu/en/profile/country/nzl/#Exports
 http://www.nzjba.org.nz/industry.asp
 http://www.foodtechnology.co.nz/content/the-state-of-the-new-zealand-fruit-juice-industry/
 https://goqii.com/blog/sugarcane-and-its-10-benefits/
 https://shop.countdown.co.nz/shop/browse/drinks-hot-cold/juice-fruit-drink#url=/Shop/
Browse/drinks-hot-cold/juice-fruit-drink/sparkling-grape-juice

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