Trade New Zealand expects our exports to Fiji and investment to drop sharply
as a result of the chaos from the coup.
Container-loads of fresh New Zealand produce are rotting on Fiji docks and
other valuable export orders are on hold in the commercial disruption caused
by the coup.
Supermarkets and importers in Fiji have delayed orders for vegetables and fruit,
with one New Zealand exporter unable to distribute $25,000 worth of produce
from a Fiji port due to lack of labour.
Several accommodation developments, which would have included millions of dollars
worth of New Zealand construction materials, have also been
delayed until the political situation calms.
"The great disappointment is that this will undoubtedly affect foreign
investment in the short term," said Trade New Zealand commissioner Jo McEvoy
from Fiji.
"There are quite a few developments which were supposed to be signed off
this week and we were quite confident that we would get a good slice of the
action, so we're quite upset about what's happened."
During the 1987 coup, New Zealand trade to Fiji dropped severely from $125 million
in 1996 to $89 million the following year. Exports to Fiji, which were mostly
made up of food and building products, totalled $200 million last year.
This week, exporters such as Produce Agencies have run into problems, with the
Pukekohe company unable to dispense five container-loads of carrots, potatoes
and onions worth $25,000 from a port in Fiji.
Apple exporter Enza has lost a $50,000 order in the interim because of distribution
concerns while Auckland fresh produce trader So Fresh has been forced to divert
shipments away from Suva to other Fiji ports. A container-load of the company's
vegetables was also dumped at sea earlier this week.
"It's certainly going to have a big impact on our trade to Fiji. I can
see us being very careful about what we do there over the next few weeks,"
said
Maurice Wymer, general manager of Produce Agencies.
Mr Wymer was just one of many local exporters who anticipated food shortages
in Fiji.
Suva fresh produce importer Uno, which delayed the Enza order, was also expecting
basic food supplies to run short in the next few days unless the crisis was
resolved. Uno general manager Arthur Mar said he was forced to cancel the Enza
order because of transport and labour issues at the docks.
However, Ullrich Aluminium managing director Gilbert Ullrich said the Fiji situation
had presented good opportunities for New Zealand construction and building material
companies.
While several small orders for their products had been delayed, Mr Ullrich intended
sending someone to Fiji to generate sales as soon as the crisis
calmed down. "There will be a lot of construction opportunities up there
for us I would imagine," Mr Ullrich added.
Ms McEvoy said Trade New Zealand was advising exporters to be cautious about
new orders from Fiji in the short term.
"I think it would be naive to suggest that it's going to be business as
usual."
"Payment's going to be an issue for exporters to watch out for," she
said.
"In times of financial difficulty, getting payment does become harder."
The New Zealand Dairy Board said exports to Fiji had not been affected.
Meanwhile, an operation of food company Goodman Fielder has run into trouble
in Suva, with its chicken factory damaged by fire.
While Goodman said the incident was not related to the civil unrest, there had
been reports that the fire was started by terrorist groups.
©Copyright 2000, NZ Herald
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