Global Pineapple Trade Dynamics: New Zealand and Sri Lanka Make Strides in Market Access

Published May 11, 2024

The pineapple industry is an essential aspect of world trade, with New Zealand and Sri Lanka achieving notable success in reaching new trade relationships in recent developments. New Zealand and Taiwan have inked a bilateral trade agreement allowing pineapple imports, marking a significant step forward in Taiwan's diversification efforts. This agreement involves stringent phytosanitary procedures to guarantee pineapples meet New Zealand's produce import standards. On the other hand, Sri Lanka, an agronomically focused destination, has gained market access to China, which is dominated by pineapples from the Philippines and Thailand. This achievement is part of the UN fruit value chain improvement project in Sri Lanka. The pineapple industry's shares the predicaments of global fresh commodities trade, with countries attempting to cater to varied client bases. The pineapple market reflects the changing world of commerce, with countries increasingly focusing on variables that transcend trade agreements and regulatory requirements.

New Zealand and Sri Lanka have recently made significant efforts in expanding their pineapple sourcing options in an effort to diversify their supply options in the global pineapple industry.

Figure 1: New Zealand Fresh Pineapple Import Volume 2019-2023

Source: Tridge

The recent signing of amendments to include pineapples in the list of approved products for export from Taiwan to New Zealand marks a significant milestone in bilateral trade relations between the two countries. This breakthrough, achieved after nearly eight years of negotiations, underscores the commitment of both Taiwan and New Zealand to expanding trade opportunities and promoting agricultural cooperation. The amendments were signed during a joint management committee meeting on sanitary and phytosanitary measures under the Australia-New Zealand Closer Economic Relations Trade Agreement (ANZTEC) on April 9, 2024. This agreement paves the way for Taiwanese pineapples to enter the New Zealand market, opening up new avenues for Taiwanese agricultural exporters and enhancing the diversity of products available to consumers in New Zealand.

The agreement comes as Taiwan aims to expand into new markets, especially given rising tensions with China. This agreement comes with strict phytosanitary requirements to ensure that the pineapples match the quality of New Zealand's produce imports. This is supposed to be a precedent-setting role that can ignite a chain of agricultural trade agreements between New Zealand and other Asian nations, with the aim of restructuring the regional trade outlook.

Figure 2: China’s Fresh Pineapple Import Value Share by Countries in 2023

Source: Tridge

China’s mainly sources pineapples from Philippines and Thailand. However, Sri Lanka is currently is expected to join the list of sourcing options for China. Sri Lanka has achieved considerable success in gaining market access to China by adhering to the country’s phytosanitary regulations. This is just a part of the United Nation's overall project that targets the production and marketing process of the fruit value chain in Sri Lanka. It is expected to benefit the island's developing economy and promote a substantial position among global fruit markets.

The bilateral deals and market policies implemented by New Zealand and Sri Lanka benefit them per se, but they are also used as role models for nations that aim to grow their exports to international markets. Nevertheless, these changes in market access are anticipated to be a lot more likely to affect trade policies, agricultural practices, and economic strategies around the world.

Lastly, the growing pineapple sourcing profiles of New Zealand and Sri Lanka shows the constantly changing face of the world's trade. Governments are increasingly focused on various factors that cut across trade agreements and even regulatory standards. The pineapple market serves as an example of the evolving pineapple market dynamics. These results are an advantage to the two nations' economies and continue to enhance agricultural trade, while promoting diversity and universality.