Nishi Trading, a family-owned Tongan enterprise, is partnering with the Australian and New Zealand Government-supported Market Development Facility (MDF) in collaboration with Air New Zealand to trial air freight shipments of agricultural exports from Tonga to New Zealand.

Traditionally, the export industry in the Pacific region heavily relied on sea freight, accounting for approximately 80 per cent of shipments, while air freight constituted only 20 per cent. This preference for sea freight was primarily driven by its lower cost compared to air transportation. However, due to COVID-19, sea freight prices reached record highs, gradually decreasing but remaining higher than pre-pandemic levels.

With two decades of operation in Tonga, Nishi Trading sources agricultural products from a cluster of growers and packs them for overseas markets. The disruptions caused by COVID-19 and the volcanic eruption in early 2022 severely impacted export quantities, further exacerbated by shipping delays resulting in spoilage and loss of produce upon arrival.

“It is becoming increasingly challenging to ship fresh produce to New Zealand via sea freight, as delays have led to issues with decay and hygiene. This is why air freight has emerged as a viable option for us, as it only takes three hours,” said Minoru Nishi, Managing Director for Nishi Trading

MDF will also provide support to Nishi Trading in trialling a new cardboard packaging designed specifically to maximise space within the air freight containers used by Air New Zealand for fresh produce shipments.

“With the new cardboard packaging, it will be more cost-effective, easier for storage, and reduce the risk of spoilage,” said Minoru Nishi.
“I believe that after a successful trial, we’re going to see a huge impact in terms of the volume of exported produce. This opens doors for many other farmers to export taro, watermelons, cassava, butternut squash, and other frozen products, ultimately leading to increased income for farmers,” he added.

Recognising the growing demand for fresh, high-quality agricultural products in the region, Air New Zealand is keen to collaborate with Pacific exporters by expanding their air freight services, providing them with better access to overseas markets.

“By offering our air freight services to exporters, we aim to provide a faster, more efficient and reliable option to the Pacific region, opening up new opportunities for farmers and growers to access global markets in a timely manner,” said Ms Zeena Sahib, Cargo Sales Manager (Pacific), Air New Zealand.

Mr Nishi also emphasised the importance of working closer with airlines such as Air New Zealand to develop mutually beneficial commercial solutions and encouraged other Pacific farmers and exporters to explore air freight as a viable option to foster the growth of their international businesses.