20 Apr 2010

Fish, lamb export fallout from air travel chaos

5:30 am on 20 April 2010

New Zealand snapper bound for Italy has ended up on the local market because of the volcanic ash disruption to European air travel.

Leigh Fisheries in Warkworth flies five species of fresh fish to Germany, Switzerland and Italy.

Chief executive Gregory Bishop says 11 tonnes of fish, worth about $NZ130,000, have been affected so far.

Mr Bishop says shipments have been redirected to other countries and some of the costs recouped, which has helped, especially since the livelihood of local fisherman depends on the sale of their catch.

He says the fish has been sold to Dubai and Hawaii, and the rest returned to New Zealand for sale at its distribution centre in Auckland.

The New Zealand King Salmon Company in Nelson, which does not export to Europe, is getting a sales boost from the disruption.

General manager of sales and marketing, Don Everitt, says his firm is filling orders that European countries are prevented from completing.

Mr Everitt expects the company's exports to increase 25% to 50% in volume during the next few weeks.

Others in the seafood industry face difficulties, however. Seafood Industry Council general manager Alistair Macfarlane says his industry is looking at contingency plans, such as diverting supplies to countries outside Europe.

Meat shipments stranded

Up to 10 tonnes of export-quality New Zealand lamb was stranded in transit at airports across the world on Monday.

Christchurch-based farmers' co-operative Alliance Group stopped production of its lamb bound for Europe by air freight on Monday.

Marketing manager Terry O'connell says the air-travel disruption across Europe has had quite an impact on the business, as lamb sits in Singapore, Los Angeles and Christchurch awaiting departure.

He says the company will try to sell the product where it is, or return it to New Zealand, and production of lamb that is sent by air will not start again until next week at the earliest.

Business New Zealand chief executive Phil O'Reilly says the disruption is hurting New Zealand exports not only to Europe, but also to other big markets in Asia.

Mr O'Reilly says while some exporters can cope with delays, others including those selling perishable goods such as seafood and cut flowers face difficulty, as do those exporting hi-tech manufactured items that are needed urgently.

He says some exporters may be able to find alternative buyers before perishable goods deteriorate, but are unlikely to get the same prices they could command overseas.

New Zealand Post expects delays with letters and parcels between New Zealand and Europe.