Gary Romano, Fonterra MD Trade and Operations. PHOTO: FONTERRA

Two of New Zealand’s biggest exporters, dairy giant Fonterra and meat processor Silver Fern Farms, have launched a partnership called Kotahi to bring the country’s exporters and importers together to improve its supply chain.

Kotahi, which means ‘united’, will match supply and demand for freight services on land and sea to get New Zealand products to markets around the world more efficiently.

Fonterra MD Trade and Operations Gary Romano says the new partnership will create a sea change that will help New Zealand businesses be more competitive in global markets.

"We are the most remote developed country in the world relative to international markets and the way we get our products to and from these markets is critical to continued success.

"The real driver for Kotahi is establishing an efficient and secure supply chain service that will ensure New Zealand businesses are able to operate with certainty and compete on a global scale," he says.

When Kotahi starts operating in August, it will service approximately one-third of all containers that leave New Zealand’s shores.

Keith Cooper, CEO of Silver Fern Farms, says there is real value in bringing freight management and purchasing into one partnership. "At present, many smaller companies are handicapped because individually they ship relatively low volumes and don’t have consistent freight needs throughout the year.

"Through Kotahi’s ability to match supply and demand for freight across a variety of imports and exports, we will be able to create efficiencies along the entire supply chain."

Ports of Auckland chief executive Tony Gibson says it is pleasing to see NZ cargo owners seeking to play a larger role in decisions over logistics infrastructure and sea freight services.

"Greater collaboration among supply chain players has to be good for New Zealand.  We’re a small country and need to leverage what scale we have.

"If Kotahi succeeds in improving vessel utilisation and providing greater certainty about demand for sea freight, it has the potential to achieve significant supply chain efficiencies."