Hawke`s Bay - New Zealand Trade and Enterprise

REGIONAL INVESTMENT | HAWKE'S BAY
Hawke’s Bay
Hawke’s Bay is a premium global
producer, processor and exporter of
primary products – beef, lamb, fruit and
vegetables, forest products and wine.
The region’s high sunshine hours, fertile
soils, low-cost land and competitive
salaries provide strong commercial
advantage for investors.
Investment opportunities exist in Hawke’s
Bay’s world-class food and beverage
industries, which are supported by access
to an efficient international container port.
Regional Highlights
High quality
food production
Expert processing
workforce
International
container port
Areas of Opportunity
A productive place to grow
A planned irrigation project could unlock 25,000
hectares of new irrigable land in the region and
open up investible opportunities through increased
productivity in meat, dairy, fruit and vegetable
growing, and processing.
Global food and beverage manufacturing
The region has well-established and expanding food
and wine industries, with leading international food
processing firms based there due to the region’s low
infrastructure costs. A planned increase in irrigable
land will create the opportunity for more investment
in the food and wine industries.
Cost competitive shared services
Hawke’s Bay’s ready supply of skilled labour and low
commercial property rental and construction costs
makes it an attractive place for international firms to
establish or relocate their office-based services.
Hawke’s Bay
Business cost
advantage
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REGIONAL INVESTMENT | HAWKE'S BAY
Close and Connected
Key attributes of the region
Hawke’s Bay is a major agricultural and food processing hub. Napier and Hastings, the region’s two cities,
account for 86 percent of its population.
There are five business parks in the region with capacity for development and expansion, which suit both wet
and dry food processing. Manufacturing and processing plants are clustered around Napier and Hastings and
are able to leverage the concentration of agricultural production in the region.
Hawke’s Bay has multiple distribution channels by sea, road and air. The Napier Port offers competitive and
efficient services for international sea freight.
Second
Strong
20,600
Six
Five
largest viticulture
area with 81 vineyards
engineering firms
supporting industry
hectares of
horticultural land
national transport
companies
global food
processing plants
Pan Pac Forest
Products
Auckland –
5 hours by road
Te Urewera National Park and
Lake Waikaremoana
State Highway 5
State Highway 2
Taupo – 1 hour
40 minutes by road
Hawke's Bay Airport –
55 minutes to Auckland
Eastern Institute of
Technology
ABB facility
Napier Port
Pernod Ricard Winemakers
Napier
Heinz Wattie’s
Hawke’s Bay orchards
and vineyards
ENZA Foods
Hastings
McCain Foods
Whakatu industrial land –
available for redevelopment
Planned dam will
unlock 25,000 hectares
of irrigable land
Wellington – 3 hours
30 minutes by road
Gisborne – 2 hours
30 minutes by road
REGIONAL INVESTMENT | HAWKE'S BAY
A Productive Place to Grow
Hawke’s Bay is a major contributor to New Zealand’s horticulture sector and is the second largest viticulture area
in New Zealand. The region also has a strong agricultural base with 15 percent of New Zealand’s beef cattle and 10
percent of its sheep. Land-based industries account for approximately 30 percent of regional GDP. The region’s
key primary industries are viticulture, pastoral farming, pipfruit growing, vegetable growing and forestry.
A planned increase in irrigable land could lead to further significant growth in the value and capacity of
Hawke’s Bay’s primary industries, increasing its attractiveness as an investment opportunity.
20,615 hectares
81
median earnings for primary
industries
(NZ median: $26,420 p.a.)
of horticultural land
vineyards in the region
40%
64%
540
of New Zealand’s horticultural
seasonal workforce
of New Zealand’s apple
production land
horticultural farms
Strong R&D
Fourth
Strong
in bio-protection, breeding and
food innovation by businesses and
Government institutions
largest area of irrigable land in
New Zealand
scientific support providing
technical knowledge and
strategic advice
Hawke’s Bay offers world-class
expertise in viticulture and
wine science in education and
research at the Eastern Institute
of Technology.
The region has 16 percent of all
horticulture and 14 percent of all
viticulture land planted in
New Zealand. 10,000 hectares
of irrigated land in the region
are currently devoted to
horticulture.
Hawke’s Bay is New Zealand’s
second largest wine-growing
area and the country’s
leading red wine producer.
New Zealand’s pipfruit industry
is also increasingly concentrated
in the region.
NECTI
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$18,160 p.a.
Hawke’s Bay’s winemakers are also present in other New Zealand wine regions such as
Auckland, Marlborough and Central Otago.
Plant and Food Research is a Government Research Institute and its facilities in Hawke’s Bay
form part of a wider network across New Zealand.
“You come to Hawke’s Bay for
the climate, and you come to
Hawke’s Bay for the food… We
would say that it is the home of
high quality food in New Zealand
– that’s why we are here.”
– Jason Ross, Marketing
Manager of Firstlight Foods,
a New Zealand-owned producer
of beef and deer meats.
Mr Apple, New Zealand’s
largest integrated apple
business based in Hawke’s Bay,
grows and exports around 25
percent of New Zealand’s apple
industry volume. Mr Apple is a
New Zealand-owned company
that employs 180 permanent
staff and a seasonal workforce
of up to 1,700 people. One out
of every four apples exported
from NZ is exported by Mr Apple,
with over 135 customers in
45 different countries.
Prevar Limited is a New Zealand
joint venture company owned by
Pipfruit New Zealand, Apple and
Pear Australia Limited, and the
New Zealand Government-owned
research institute Plant and Food
Research. Prevar recently licensed
a new variety of apple, which the
Havelock North Fruit Company has
developed as Rockit, an innovative
new apple variety in the FMCG
category. The fruit is now available
throughout New Zealand and
international markets.
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REGIONAL INVESTMENT | HAWKE'S BAY
Global Food and Beverage Manufacturing
Fruit and vegetable processing and winemaking are part of a well-established and growing sector in
Hawke’s Bay. The region has already attracted leading international food processing firms and its food industry
and related food processing is well served by strong support services and multiple transport links.
A planned irrigation project will improve land productivity and will unlock further investment opportunities for
global food processors.
$41,490 p.a.
Availability
Five
median earnings for
manufacturing
(NZ median: $43,520 p.a.)
of industrial land for wet and dry
food processing
global food processing plants in
the region
5,420
Rapid
Largest
employees in food product
manufacturing
delivery time from the port to
distribution centres
non-dairy food factory in the
Southern Hemisphere
Support
Renewable energy
5%
significant business networks for
the food and beverage industry
in abundance
of New Zealand’s food
manufacturing firms
The region’s cost-competitive
workforce is educated through
the wide range of study
programmes at the Eastern
Institute of Technology.
The region has multiple
distribution channels by sea,
road and air. The Port of Napier
offers competitive and efficient
services for containerised sea
freight.
Hawke’s Bay has a proven track
record of producing high quality
food products and has already
attracted leading multinational
food company representation.
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Whakatu Industrial Area is home to some of Hawke’s Bay’s most significant processing
businesses and is a national hub for logistics. Food processing firms across New Zealand take
advantage of the cold stores and processing facilities at Whakatu.
Hawke’s Bay Regional Council recently announced a partnership with Massey University,
Wellington, Auckland and Palmerston North to encourage relationships between the University
and the regional agri-food sector.
“Hastings is known as the
‘fruit bowl’ of New Zealand,
producing the majority of
New Zealand’s apple crop, as
well as a significant volume
of peaches, nectarines, pears,
plums, apricots and kiwifruit.”
– ENZA, one of the largest
horticultural companies in the
Southern Hemisphere.
Freeze Dried Foods is the largest
freeze drying operation in the
Southern Hemisphere. It is based
in Hawke’s Bay to take advantage
of the fresh vegetables, meats and
fruits that are readily available.
The firm exports to a number of
international markets including
Australia, the European Union, the
United States, Japan, Hong Kong,
and Taiwan.
Ovation, a specialist New Zealand
meat processing company with
strengths in lamb processing,
targeted the Hawke's Bay as the
best place to set up its business in
1984. Today, Ovation's head office,
and its further processing and
added-value operations remain
in the region. Throughout its
history, the company has been an
industry leader in innovation and
best practice.
REGIONAL INVESTMENT | HAWKE'S BAY
Cost Competitive Shared Services
Hawke’s Bay is developing its shared services sector. The region delivers a ready supply of skilled labour, low
commercial property rents and construction costs as well as comprehensive ICT infrastructure. This makes
the region an attractive place for international firms to set up or relocate their office-based services such as
contact centres, banking and insurance back offices and IT support services.
The region’s favourable climate and lifestyle are significant factors in attracting talent. Local government
and business stakeholders are focused on growing the shared services industry and have recently realised
successes in this sector with firms locating their support functions in Hawke’s Bay.
Low cost
High potential
median earnings for the region
(NZ median: $37,700 p.a.)
average commercial rents of
$250/m2 p.a.
untapped market with few
existing contact centres
Ready supply
Ease of transport
Welcoming
of labour with appropriate skillsets
access to main city centres with
limited commuting times
business relocation programme
to grow the sector
Educated workforce
Ultra fast
Growth
46% of 18-year-olds reached
university entrance level
broadband available in urban
centres with multiple providers
in related sectors over three years
eg administrative services
The Eastern Institute of
Technology delivers foundation,
applied professional and
higher education business and
computing programmes from
certificate level through to
master’s degrees.
Hawke’s Bay has low commute
times and good transport
connections between its two
main urban areas, Hastings
and Napier.
Regional and national
stakeholders are focused on
building a contact centre
industry in Hawke’s Bay, which is
attracting new investors.
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$32,740 p.a.
The Eastern Institute of Technology is well connected to industry with students completing
internships across study areas and throughout the region.
The Hastings District Council and Napier City Council has formed sister-city relationships
with several overseas cities, including Tomakomai in northern Japan, Lianyungang in Jiangsu
Province, China, and Guilin in Guangxi Province, China.
“The new office will ensure that
there is a seamless continuity of
business-critical services, even if
something has caused disruption
in Auckland or Wellington.”
Kiwibank is one of New Zealand’s
major domestic banks with
balance sheet assets of $15 billion
and is 100 percent New Zealand
owned and operated.
– Paul Brock, Chief Executive
of Kiwibank
Hastings District Council recently
worked with Kiwibank to establish
a new office in Hastings that
will employ more than 100 staff
and supplement core banking
services provided in the Wellington
head office.
EIT (Eastern Institute of
Technology) is the major public
tertiary education provider
servicing the wider Hawke’s BayGisborne region. EIT provides
a range of certificate, diploma,
university degree and postgraduate programmes.
Other features include a modern
trade academy, significant
international student education,
university-level research activities
and tailored training.
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REGIONAL INVESTMENT | HAWKE'S BAY
Who has invested in Hawke’s Bay?
ABB (Switzerland)
“Napier has a long legacy of excellence in power electronics stretching back
around 30 years. The new Napier ABB facility secures Napier’s position as a true
global centre of excellence for our specialty designs. Many people are surprised
to hear that we sell electronic products from Napier to protect some of the
world’s largest electronics factories that make the silicon chips and displays
found on the latest smart phones and tablet computers.”
– John Penny, General Manager GPL Power Conditioning at ABB
ABB is a leading power and automation technology company. It devotes more
than $1 billion a year to various research and development activities. It runs seven
corporate research centres, employing 8000 scientists and supports 70 university
collaborations around the world. In 2013, it opened a new 6,500 square metre
research and development centre and factory in the Hawke’s Bay Airport Business
Park in Napier.
BayWa AG, Munich (Germany)
ENZA FOODS New Zealand Limited is a manufacturer of fruit and vegetable
products and ingredients, and has two processing facilities located in Hawke’s Bay.
In 2012, ENZA FOODS processed more than 110,000 tonnes of fruit.
The firm is fully owned by Turners and Growers, one of the largest horticultural
companies in the Southern Hemisphere.
In 2012, BayWa AG, Munich (Germany) became the major shareholder of Turners
& Growers Limited. Turners & Growers has recently purchased Hawke’s Bay-based
Apollo Apples.
Oji Holdings Corporation (Japan)
Japanese-owned Pan Pac Forest Products (Pan Pac) operates across the forestry
supply chain and has its head office located at Whirinaki near Napier. Pan Pac
manages 33,500 hectares of forest and is one of the largest Bleached ChemiThermo Mechanical Pulp (BCTMP) producers in the world as a result of Oji’s $70
million investment into a new BCTMP plant at the Pan Pac mill. The company is also
one of the largest radiata pine appearance-grade lumber producers in New Zealand.
Pan Pac Lumber’s sawmill and processing facilities enable the efficient production
of high quality lumber for both domestic and international markets. Pan Pac’s
investment in new plant to produce Thermally Modified Timber (TMT) products is
yet another innovation supported by Oji to expand the range of Pan Pac’s lumber
products offerings into interior and exterior applications.
Pernod Ricard Winemakers (France)
“Located at 39.4°S, Hawke’s Bay has a maritime climate similar to Bordeaux in
France. A commitment to traditional winemaking techniques combined with ripe
Hawke’s Bay fruit results in wines that express complexity, texture and a sense
of place.”
– Pernod Ricard Winemakers
Pernod Ricard Winemakers is the largest premium wine company in the world,
with vineyards in Australia, New Zealand, Spain, Argentina, China and the United
States. In New Zealand, Pernod Ricard Winemakers is one of the country’s
largest producers. The company’s key Hawke’s Bay-based brand is Church Road,
produced at its Taradale winery near Napier.
REGIONAL INVESTMENT | HAWKE'S BAY
How Hawke’s Bay Compares
People
Hawke’s Bay is the fruit bowl
of New Zealand and has
approximately 2,200 hours
of sunshine each year
17%
65 Years +
14%
34%
40-64 Years
Land usage by area
33%
Grassland & tussock for grazing
655,643 ha
6.2%
Forestry
127,460 ha
7.9%
Horticultural land
20,615 ha
16.1%
Grain & crop land
15,399 ha
3.3%
All other
93,734 ha
6.3%
27%
15-39 Years
32%
22%
0-14 Years
20%
0%
Hawke’s Bay
20%
40%
New Zealand
Housing prices ($000)
Average net office rent* ($/m²)
$285
$430
Hawke’s Bay
New Zealand
*Average price as at May 2014, sourced from Real Estate
Institute of New Zealand
Education
46%
$250
Hastings
$275
Napier
*Mid-point price based on highest grade of office space and
may include new build rates, sourced from Colliers International
Employment rate
Overall life
satisfaction
Average household
income (2013)
61%
90%
$74,300
65%
87%
$88,400
Hawke’s Bay
of all school leavers
achieved university
entrance standard
(2012)
% of New Zealand
New Zealand
*
may include new build rates, sourced from Colliers International
Hawke’s Bay
New Zealand
Hawke’s Bay
New Zealand
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REGIONAL INVESTMENT | HAWKE'S BAY
Welcoming Investors
Business Hawke’s Bay (BHB), the region’s business growth and attraction
agency, is the investor’s first point of contact. It is jointly funded by the
private sector and Hawke’s Bay Regional and Hastings District Councils.
BHB facilitates a collaborative stakeholder forum called the Advisory
Group, which brings together regional representatives from all councils
in the region, Tourism Hawke’s Bay, central government agencies, the
Chamber of Commerce and others. Together with the Advisory Group,
BHB identifies and supports new investment opportunities within the
region’s respective boundaries.
Susan White
Chief Executive,
Business Hawke’s Bay
M +64 22 353 7585
E [email protected]
W businesshawkesbay.co.nz
Business Hawke’s Bay goals
How the agency helps the investor
• Provide business development and support
BHB, in conjunction with regional and district councils,
helps the investor by executing a planned, systematic
approach to business relocation
and growth.
•Stimulate and support key industry clusters and
working groups
•Market the region as a great place for business
opportunities.
Regional economic development strategy
• Resilient primary sector growth
• Visitor growth and increased visitor expenditure
• Business investment and development
• Skills, capability and workforce optimisation.
BHB coordinates and promotes business support
services across the region. It is championing the
establishment of a business hub to enable businesses
to easily access business support agencies.
It also identifies skills gaps in the region and works
with businesses to improve performance. For example,
BHB has a High Performance Work initiative to
increase productivity.
Region-led initiatives
Hastings District Council recently worked with Kiwibank to establish a new office in Hastings that will employ
more than 100 staff and supplement core banking services provided in the institution’s Wellington head office.
The Hastings District Council played a critical role in delivering the project, with BHB’s endorsement, by
coordinating local human resources, telecommunications and electricity service providers to deliver a
successful investment proposition.
This document was produced by New Zealand Trade and Enterprise, New Zealand’s international business development agency. www.nzte.govt.nz
© Copyright New Zealand Trade and Enterprise (NZTE) 2014.
Disclaimer: No part of this publication may be distributed or copied for any commercial purpose nor incorporated in any work or publication without
the prior written consent of NZTE. The information contained in this publication is intended as a guide only. Professional advice should be sought before
applying any of the information to particular circumstances. While every reasonable care has been taken in the preparation of this document, NZTE does
not accept liability for any errors it may contain.
ISBN 9978-0-478-41636-7 3 July 2014
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