Exploring Taiwan: Insights into NZ's Food and Beverage Export Opportunities

Diving into a market like Taiwan always requires a mental deep breath on dis-embarking. For someone like myself who works in a very rural setting, the sheer “urban-ness” of these places takes some adjusting too, hitting home immediately on arrival with a blast of people, traffic and noise.  

I at least have several earlier trips (often with Foundation funding) to thank for mentally fortifying me on what to expect! 

A typical scooter park, Kaohsiung - a sign of the "urban-ness"! Image: Supplied

Taiwan has held an appeal since pre-Covid as a destination. It flies very much below the trade radar, largely due to its difficult relationship with China, yet manages to rank as New Zealand’s sixth largest export destination, with about $1.8 billion of dairy, meat, fruit, deer velvet and timber being sold a year. New Zealand is also one of only a handful of countries that enjoys a Free Trade Agreement with Taiwan, and has done for over a decade. 

Its supporters see greater opportunities still, given it has a similar GDP and population as Australia, our number 3 export destination. Our exports there have doubled in less than a decade. 

As a market it is also something of a canary for signalling the impact of declining population, very low birth rates and increased average ages of consumers.  

Richard with his guide June, sussing out different foods and the wet market in Taipei on a tour. Image: Supplied

It is grappling with these issues now, just as the likes of New Zealand will in a few short years.   

While many negative things have been written about these numbers moving the wrong way, my visit showed there are new opportunities that present themselves as demand shifts. 

An older cohort of consumers are generally more cashed up, they are prepared to buy premium food products that deliver on quality and health benefits, and they enjoy remaining active and aging healthily. With this comes the opportunity New Zealand food exporters are starting to meet with varying degrees of success. 

New Zealand’s portfolio of food offerings in Taiwan represents the spectrum of meat, dairy and horticultural products.  

Zespri: Innovating in a Mature Market 

Zespri, renowned for its kiwifruit, faces the challenge of expanding in a market where it already boasts a 95% brand recognition and 77% household penetration. Taiwanese people eat on average 15 kiwifruit a year per person, the most of any market globally. But it is also a market declining in population numbers, so presents a challenge to marketers intent on selling more fruit. 

Richard Rennie (right) with Zespri staff Sean Chou and Joanne Chen in Taipei. Image: Supplied

To stimulate further growth by increasing “eating occasions” , Zespri has launched initiatives encouraging consumers to incorporate kiwifruit into their breakfast routines.  

Collaborations with local breakfast chains, such as Q-Burger, offer free kiwifruit with meals, promoting the fruit's health benefits and aiming to increase consumption frequency beyond the traditional April to October supply period.  

Deer Velvet: New Horizons Post-Tariff 

The lifting of a 500% tariff on New Zealand fresh deer velvet this year, the last barrier to come off free trade as part of the ANZTEC agreement signed 10 years ago, opens new avenues in Taiwan's traditional medicine market for fresh-frozen New Zealand deer velvet.  

The removal of this final barrier means New Zealand will be pitching against established local velvet producers who are starting to ramp up their pitch to “buy local”, and will require some considerable investment by New Zealand to see the market convinced. However, a growing demand to incorporate traditional Chinese medicine into health regimes offers plenty of promise for companies prepared to invest.  

A traditional Chinese medicine shop in Taipei's old town area. Image: Supplied

They are able to leverage off the good reputation other New Zealand products, like kiwifruit and Anchor, have already established in Taiwan. 

Protein Demand: Catering to an Aging Population 

Taiwan's demographic shift towards an aging population has heightened demand for protein-rich dairy products.  

Fonterra's ingredients, particularly whey protein, are in high demand, with the cooperative holding significant market shares in whole milk powder, anhydrous milk fat, and skim milk powder.  

The trend extends beyond the elderly, as younger consumers increasingly seek protein supplements for fitness and wellness, helping bring the (albeit shrinking) next generation on board. 

Thomas Meats: Introducing Grass-Fed Beef to Taipei 

Thomas Meats is making strides in Taipei's culinary scene by introducing grass-fed New Zealand beef to local menus and as a home cooking option to traditional grain fed beef cuts. 

The company's focus on the natural and sustainable aspects of its products aligns with some Taiwanese consumers' growing interest in health-conscious dining options.  

Thomas Meats founder Thomas Tseng (right) and his daughter Erica (left) with Richard in Taipei. Image: Supplied

However, owner Thomas Tseng and his daughter Erica also noted the challenge New Zealand has supplying regular shelf filling quantities of grass-fed beef, compared to the broad scale operations of Australian and USA grain fed corporates. 

 Like South Korea, there also remains little, if any, “NZ Beef” promotions, compared to the millions spent by Australia and USA beef agencies. 

There is also a generation of Taiwanese who enjoy the fattier mouth feel of grain finished beef, and getting their acceptance of grass fed’s more umami type flavours requires plenty of time and investment. 

Conclusion 

For anyone actively engaged in the primary sector, regardless of crop or farm type, a visit to Taiwan would be an invaluable, eye-opening experience to help appreciate where your particular product ends up.  

It has a highly sophisticated food sector, often used as a testing ground for companies before launching into mainland China. Meantime, its food culture is imbued with both Chinese and Japanese influences, making its menus interesting, flavourful and diverse.   

Director of Trade for New Zealand Tina Wilson (left) and director of the New Zealand Commerce and Industry Office Chris Langley (right), with Richard (centre). Image: Supplied

Professionally, visiting Taiwan reiterated to me the importance of valuing the countries we already enjoy FTAs with.  

It comes at a time when government focus is intent on signing one with India, and it struck me how much easier it would be to double down on the agreements we already have with countries like this, building further on the relationships we already have with the committed people already on the ground in Taiwan. 

Read a selection of Richard's published stories on Taiwan:

Taiwan packs export earnings punch

Fonterra highlights natural wins of NZ dairy

Taiwan’s velvet rope lifts with tariff gone

Zespri aims for more from less in Taiwan

Protein pull strong from Taiwan’s golden oldies

The Asia New Zealand Foundation's Media Programme helps New Zealand journalists cover stories that shed light on Asia and on New Zealand’s ties to the region.

Our Media Travel Grants provide New Zealand journalists with funding to travel independently to Asia to research and prepare stories – to help demystify Asia for New Zealand audiences.

Banner image: Skyline view of Taipei with Taipei 101 taken from Elephant Mountain. Photo by Vas on Unsplash

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