New Zealand is looking to double its merchandise exports to the Philippines to NZ$1.5 billion (roughly P55 billion) by 2025, capitalizing on the continued robust growth of the local economy.
Last year, New Zealand’s exports to the Philippines reached $750 million (roughly P28 billion), of which 71 percent was accounted for by dairy products such as milk powder, cream, butter and cheese, New Zealand Trade Commissioner Hernando Banal said in a briefing Tuesday.
The export value makes the Philippines New Zealand’s 12th largest export destination, and the second largest market for dairy products.
The expected growth in exports is expected to come from a shift in Philippine market preferences from low-value commodities like dairy powder, to more high-end products like yogurt and ice cream.
Philippine exports to New Zealand, on the other hand, stood at only NZ $150 million, comprising mainly of bananas and electronic products.
New Zealand Ambassador to the Philippines Reuben Levermore noted, however, that these figures do not paint the entire trade picture, as this excludes the services, technology and expertise exchanged between the two countries.
He said measuring the value of services exports alone was quite a challenge, but initial estimates point to over NZ $1 billion.
“We have engineering companies offering solutions, geothermal firms that provide training, technology and expertise. What the Philippines has is scale as you have, for example, large geothermal and services industries, but we can bring in the expertise to make companies more efficient,” Levermore explained.
For instance, the New Zealand government has provided a NZ $5-million fund for a development project in the Philippines.
Under this project, 12 dairy farms will be provided with support, technique improvements, among others, to help increase milk production.
New Zealand’s technical expertise also led to the construction of the Philippines’ first geothermal plant.
“New Zealand technology and expertise aligns very well with Philippine scale,” he added.
In the first half of the year, the New Zealand government conducted three trade missions, the latest of which yielded new agreements in technical and consulting services related to geothermal energy, IT and healthcare systems.
Another trade mission is expected next year.