E-commerce - is it an opportunity or a threat to the primary sector? The two research reports included in this Technical Paper explore both sides of this question.
- The Implications of E-Commerce for the Primary Sector
- E-commerce and its Projected Impacts on Agriculture
In November 2000, the government launched its e-commerce strategy at the E-commerce Summit in Auckland, with the vision:
"New Zealand will be world-class in embracing e-commerce for competitive advantage".
Following on from this summit, government has set up an E-Commerce Action Team (ECAT), comprising representatives from the private and public sectors, to implement the Strategy and drive forward a programme designed to raise awareness of developing e-commerce opportunities, including opportunities for the primary sector.
E-commerce creates the potential for increased efficiency (and lower costs) in business transactions, and the enhancement of information flows between the parties to a deal. However, it can also shift the balance of market power towards the buyer. This carries real risks for the primary sector, particularly for undifferentiated commodities that are traded on buyer dominated electronic exchanges.
The two research reports included in this Technical Paper explore both the risks and the opportunities of e-commerce for the primary sector. The report produced by the NZIER focuses particularly on the risks for dairy, wool and meat products, and the Martech report focuses more on the opportunities and strategies for maximising the benefits offered by e-commerce. Both highlight the constraints faced by rural businesses and people as they seek to take advantage of the opportunities presented by e-commerce.
Further information on e-commerce may be found at the ECAT website http://www.ecommerce.govt.nz/ecat/index.html
Contact for Enquiries
Rural Affairs Coordinator
Sector Performance Policy
MAF Policy
Ministry of Agriculture and Forestry
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0675
Fax: +64 4 4 894 0745
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