Business exporters and importers are advised to take steps to ensure there are ‘no surprises,’ if trade with China is disrupted by the Coronavirus situation.
“Talk to your bank, make sure customer expectations are established and understood, and that no sudden surprises occur,” suggests Auckland Business Chamber head, Michael Barnett.
He sees a perfect storm coming for meat and other traders.
“China is already cutting back on meat purchases, cool stores are filling up, and disrupted shipping to China will quickly see a back log here.
“With New Zealand’s shortage of pasture due to weather, farmers will want to send stock to the works – but with cool stores full they could face problems getting stock processed quickly.”
Barnett sees a perfect storm being generated, and warns that it could apply to the whole range of food exports New Zealand sends to China.
This maybe a ‘short term’ crisis, but the huge volume of New Zealand’s trade to China suggests we should understand the flow on implications of Coronavirus and get prepared.
For more information contact Michael Barnett, mobile: 0275 631 150.
Michael Barnett, Chief Executive, Auckland Business Chamber.