PC1 Dilemma
OPINION: All eyes are on the Government as Waikato farmers seek urgent help to fend off the controversial Plan Change 1 (PC1), designed to manage nutrient discharges into waterways in the region.
Speaking at the China Business Summit in Auckland this morning, Luxon says there’s a shift towards premium foods in China.
Consumer preferences are changing due to a rising middle class and demographic changes.
Moving Beyond Commodity Exports
So, now New Zealand cannot succeed on just scale but needs to focus on high value and high trust, says Luxon.
He points out that new growth in dairy is driven less by commodities and more by high-value ingredients destined for premium bakery products and the food service sector in China.
“And our advantage is in story-driven products supported by digital channels and R&D,” he says.
“Chinese consumers care about the story behind their food.
“So, Kiwi dairy and meat exporters are leaning into those grass-fed credentials, as you've seen, backed by trusted government certification, led largely through MPI.”
Horticulture Exports Benefit from Premium Positioning
The horticulture sector is also tapping into Chinese demand for premium food.
NZ fruit exports grew 27% to top $1.6 billion in 2025, driven not by bulk supply but, again, by Chinese demand for premium branded products competing on quality and innovation.
“And that's all underpinned by brands like Zespri and their hard work to defend their intellectual property,” says Luxon.
Luxon says that the government is backing other Kiwi businesses to diversify into premium exports.
“We’re making good progress on new export pathways for diverse products, things such as deer velvet, for example.”
The day-long summit is attended by over 400 people.
