What motivates a New Zealand company to cross oceans and participate in an expo in China every year, despite numerous uncertainties? For Zespri, a consistent participant in all the previous editions of China International Import Expo (CIIE), the answer is clear and resolute: China has become its indispensable main overseas market. Every March, Zespri's orchards in New Zealand harvest the freshest kiwifruit, which is promptly shipped to Chinese ports. In the fall, Zespri's global management team arrives as scheduled, demonstrating their commitment to and trust in the CIIE.

Zespri's booth at the 8th CIIE. Source: Zespri

DOUBLING BUSINESS IN CHINA

Unlike the inconsistent taste of typical fruits and vegetables, each Zespri kiwifruit is labeled to ensure consistent size and taste. This is Zespri's core competitive edge—achieving the highest standard in non-standard fresh agricultural products.

Even the best product can get lost without visibility. Zespri's sales channels in China used to rely solely on traditional supermarkets, which limited their reputation and market share. Zespri did not gain recognition in China until it participated in the first CIIE in 2018, which led to rapid growth in its Chinese business over the past seven years.

Statistics show that over the 8 years Zespri has participated in the CIIE, sales in the Chinese market have increased by 20 million TE in volume, with revenue doubling.

"The Chinese market has become a strategic stronghold and a core growth engine for Zespri worldwide," said Kok Hwee Ng, Zespri's Global Chief Marketing Officer. "We hope to leverage the CIIE to harness the power of kiwifruit to help people, society, and the environment thrive. In the future, we will continue to uphold the philosophy of 'sustainable nutrition, a healthy future' to contribute to building a healthy China."

Zespri's booth at the 8th CIIE. Source: Zespri

EXPLORING MORE POSSIBILITIES

Through the CIIE, Zespri has engaged closely with companies across the supply chain, uncovering a strong demand among Chinese consumers for new products. This insight has significantly motivated Zespri to accelerate the development of new offerings. As a result, the CIIE has become a crucial platform for Zespri to introduce new products to the Chinese market.

Zespri's red kiwifruit is a prime example, officially launched in China through the CIIE. It quickly won the favor of Chinese consumers, and generated positive feedback for New Zealand's kiwifruit industry.

Michael Jiang, President of Zespri Greater China, highlighted that, beyond launching new products, Zespri is actively exploring the possibility of cultivating kiwifruit locally in China to meet the demand for a "year-round supply". 

Currently, Zespri's kiwifruit in China is sourced from New Zealand and Europe, with availability limited to 10 months of the year. "Our strategic goal is to ensure that Chinese consumers can purchase Zespri kiwifruit throughout all 12 months," Jiang explained. To support this goal, Zespri has established a research and development office in Chengdu, where a team is studying the local climate, soil, and other factors to prepare for potential local cultivation. "We aim to leverage the CIIE to find more collaboration opportunities and advance the exploration of 'China-grown' Zespri kiwifruit."

FORGING A "KEY" TO CUSTOMS CLEARANCE

The CIIE is not just a stage for showcasing products but also an efficient platform for promoting trade upgrades and streamlining critical processes. This value was demonstrated in Zespri's attainment of the AEO status from Chinese customs. In November 2021, Zespri achieved this certification, which allows for faster customs clearance of its products in China.

Jiang stated that Zespri leveraged the influence of the CIIE to deepen communication with various stakeholders, laying the groundwork for obtaining the AEO certification.

Additionally, the General Administration of Customs of China issued Announcement No 79 of 2023, concerning the phytosanitary requirements for importing fresh kiwifruit from New Zealand, allowing imports that meet the relevant criteria. Thanks to the CIIE's facilitation, Zespri has become the only company in New Zealand that meets these quarantine requirements and is qualified to export to China.

Jiang believes that this announcement has transitioned Zespri's kiwifruit exports to China from a traditional trade model to a legally safeguarded, standardized phase. "This not only makes our cooperation more secure but also provides core support for supply chain stability," he said.

With the backing of this announcement, Zespri has gained immediate operational advantages, the most notable being a leap in customs clearance efficiency. Furthermore, the AEO certification has significantly supported Zespri's business, with customs offering several expedited clearance measures to ensure their products reach the market as quickly as possible.

"The CIIE is a national platform for openness, exchange, and sharing. Currently, Zespri operates in fewer than 70 cities in China, and we hope to use the CIIE to foster more partnerships with Chinese collaborators in the future," Jiang added.

Disclaimer

The information in this article is compiled from materials provided by relevant parties participating in the CIIE and media reports,  with the CIIE Bureau objectively compiling relevant content. The CIIE Bureau does not take responsibility for disputes or losses arising from the following circumstances: deviations in expression due to outdated information updates; readers' subjective judgments or actions based on this article; unauthorized alteration or dissemination of the content by third parties.