What Are The Important Factors Of Globalization That Influence The Diary Industries In New Zealand?
What Are The Results Of The Impact Of Globalization On Diary Industries In New Zealand?
How To Improve And Maintain The Diary Industry In New Zealand From The Perspective Of Globalization?
Globalization is a process that helps businesses and organizations to develop an international operation or influence on the global economy and to reach beyond the local and national markets and arrive at to the international markets (Beck, 2015). The effect of globalization is increasing global trade and integration of domestic or local economy, industry as well as culture around the globe. The integration has been possible due to technological advancement, transportation, communication flexibility, and increase capabilities of the world trade (Roberts, Hite & Chorev, 2014).
Globalization has its effect on the New Zealand’s economy and industries as well. New Zealand is the eighth largest milk producer in the world and produces 2.2% of the world diary production (Dcanz.com, 2017). The aim of the research proposal is to understand the impact of globalization on the diary industries in New Zealand.
New Zealand uses globalization policies to increase its diary marketing on the international periphery and in that way, it has been increasing the economic scenario of the state. The exposure for the industries to the global competition has aim to grow, innovate and consolidate with time and it has diversified its exports around or even more than hundred global markets. However, later on due to restructuring of the dairy industries, state regulatory act and the transactional corporation has shaped and influenced on the pattern of the economic globalization in New Zealand (Dcanz.com, 2017). However, if the New Zealand uses the strategies of global economy on its diary industries the effect would be more flouring business and economy in those industries.
Diary is the part of New Zealand’s heritage and history. The first export of the butter and cheese has started in 1842 to its closest neighboring country Australia and subsequently Britain (Cgge.aag.org, 2017). The diary processing industry first was established in New Zealand around 1875. In 1882, the first refrigerated butter was exported by shipping. From this time onwards, the diary industries have followed a growth path. The Dairy industry Restructuring Act in 2001 has influenced the industries’ regulatory framework and been contributing to the growth of the industries (Dcanz.com, 2017). In New Zealand, the local farmers or the farmers’ cooperatives process most milk; however, the industry has been becoming increasingly diverse due to globalization and resulting in increased number of local and multinational or global diary industries, which are operating actively in New Zealand.
The issue of the research is the globalization and its impact on diary industries in New Zealand. This has been become an issue due to overall growth of technological advancement, transportation and communication flexibility and increase capabilities of the world trade, which resulted in globalization (Beck, 2015). New Zealand was known in the world for its dairy products and shares a heritage. In the context of globalization, the New Zealand’s diary industries have the influence and impact.
The recent data is stating that New Zealand exports almost 95% of its diary production and the top markets are United States, China, United Arab Emirates, Japan and Australia (Cgge.aag.org, 2017). As the number of markets and international export have been increasing for New Zealand’s Diary industries due to globalization, this has been become an issue now.
The research will focus on the impact of globalization on the diary industries in New Zealand and how this impact has helped in the economy of New Zealand, what are the factors of globalization for the impact and how New Zealand has integrated those factors for the global marketing. The research will also provide scope for the future study regarding this topic.
The problem that arises with the impact of globalization on the New Zealand’s diary industries is that it should look into the competitive factors in the global markets as other companies from the same industry are also exposing.
The research aims at evaluating the impact of globalization on the diary industries in New Zealand.
The objectives are,
This study will help the diary industries to understand the factors and findings of the impact of globalization on the industries in New Zealand. Moreover, this research will provide a path to the industrialists for future aspect of operating the business removing the challenges of the global impact on the industry.
The concept of globalization is not new; rather people from different parts of the world bought and sold materials across the borders. However, due to technological and policy development in recent years, the cross border trade has reached into a new economic development. The new concept of globalization can be stated like this: it is a procedure of integration and interaction among people, organizations and governments beyond political boundaries and driven by global trade and economic investment (Beck, 2015). The growth in the information technology has aided the process of globalization. Chorev has used some adjectives to describe the term in today’s world; those are the farther, cheaper, faster and deeper (Roberts, Hite & Chorev, 2014).
However, the opponents of globalization assert that due to free market policy in globalization it has benefitted the western world’s multinational organizations that have been exploiting the local enterprises, common people and local cultures (Beck, 2015). Therefore, resistance to globalization has taken shape at Governmental levels that are trying to manage the current flow of labors, goods, capital and ideas in globalization.
The globalization theory from the Marxists’ point of view can be described. The Marxists has accepted the fact that globalization happed due to improvement of connectivity that enhances the opportunities of surplus accumulation and profit making. They stated that globalization is the result of capitalist development that is historically specific in nature and due the development the United States is dominating and in the position of Hegemony in the global market (Scott, 2013). The west-focused cultural dominance is present in the world. The globalization has not reduced the class struggle and accumulation of capital, which is the central focus of the Marxism (Hovden & Keene, 2016).
From the perspective of liberalism, the globalization is the process led by market extension of modernization. Liberalism stresses on the necessity to construct institutional infrastructure for supporting globalization. They state that the process of globalization is the result of human desire that has come naturally for political liberty and economic welfare (Hovden & Keene, 2016). The growth in connectivity due to globalization has increased the material well-being and exercise of basic freedom of the human beings, which would eventually interlink the humanity across the globe. The process of globalization lead to the technical standardization, guarantees of the property rights, inter-state administrative harmonization and inter-lingual communication improvement (Hovden & Keene, 2016).
The highest amount of milk is produced from India on the global basis; however, domestic consumption of the diary products is major occurrence in India (Shortt & O’Brien, 2016). It is Europe, which is in the second position, followed by United States of America, New Zealand and Australia. Europe, United States of America, New Zealand and Australia are the largest exporters of the dairy products in the world. New Zealand was the biggest exporter in 2015. It has exported around 500,000 Tons of table butter. Europe was in the second position among the exporters, exporting 185,000 Tons of table butter. Russia, Mexico and China are the largest importers of the dairy products internationally (Gould, 2012).
The international dairy market can be divided into 17 product segments: Fluid Milk, Flavored Milk, UHT Milk, Table Butter, Cream, Ghee, Skimmed Milk Powder, Anhydrous Milk Fat, Whole Milk Powder, Casein Powder, Whey Protein, Lactose Powder, Yogurt, Cheese, Cottage Cheese, Probiotic Dairy Products and Ice Cream. Asia is the biggest consumer of the fluid milk, which is the largest dairy product segment (Idfa.org, 2017).
According to the World Diary Situation Report published by International Dairy Federation in 2016 the challenges faced by the diary industry are price hike of milk, which was the problem faced by dairy industry for the past two years; however, the price is now low (Idfa.org, 2017). The global demand is increasing day-by-day due dairy consumption growth with the world population growth.
New Zealand is one of the major dairy exporter and producer in the world. As the international demand for the dairy products is increasing, it has cast a positive effect on New Zealand’s dairy industry, making it a trading zone, which is beneficial for the farmers, producers and national economy. The Dairy Industry Restructuring Act (DIRA), which has been passed in 2001, has influenced effectively the global dairy business in New Zealand (Legislation.govt.nz, 2017). It has authorized the sole establishment of the Fonterra, which is a multinational co-operation of New Zealand. It is the sixth largest dairy cooperation in the world and world’s biggest exporter (Bodie, 2013). Fonterra’s business policy includes New Zealand, Australia and 50 other countries.
Another issue that has influenced the dairy industries in New Zealand is New Zealand-China Free Trade Agreement, which has enabled the dairy export of New Zealand to China. In 2014, New Zealand has exported 40% of its total production to china (Mfat.govt.nz, 2017).
Other common issues of globalization that has cast impact on New Zealand’s dairy industries are communication flexibility due to advancement of technology and transport. The Fonterra Cooperatives in New Zealand exports more than 100 sites other than New Zealand in the world (Hirst, Thompson & Bromley, 2015). In this particular case of Fonterra, it has been possible to explore the global market of dairy business due to impact of globalization that has allowed flexible communication and transportation.
Due to globalization, the total production of the dairy industry has been increasing with more demand from domestic and international markets. Even, the current situation is like that the demand is more than the production, however, the traditional sources for supplying the dairy products cannot fulfill the demand, therefore more production is required (Damron & Damron, 2013). It can be assumed that Brazil, Ukraine, which is the low-cost and new supply centers of the dairy products will dominate the market in recent years if there is lesser supply than the demand.
On the contrary, the negative impact of globalization on the dairy industries is it has started to crate environment pollution on the major produced countries. Milk is produced majorly from cows and buffalos. The waste of cows and buffalos create environment pollution (Glover et al., 2014). Due to effect of globalization on the dairy industry, there is more need for milk production around the world and to fulfill this demand some growth hormones are injected to the animals, which has adverse effect on human health. However, Japan, the European Union, Australia, Canada and New Zealand have banned the growth hormone’s use from this concern (Damron & Damron, 2013).
Research methodology is a method through which a researcher can design his research in a suitable manner (Flick, 2015). The third chapter of the dissertation is Research Methodology. It concerns with the various methodology that the researcher has undertaken to conduct his research.
For accomplish this specific study, the researcher has employed with various tools, which have assisted him to get his results in a satisfactory form. The researcher has chosen Marxism and Liberalism as his research philosophy. Deductive method would be his research approach. The approach would help the researcher to concentrate on the existing theories related to his research. The research design would be descriptive or analytical design method (Flick, 2015). For the research strategy, the researcher has chosen survey method and interview procedure.
Research philosophy is a series of opinions. The two research philosophies are the Marxism and Liberalism. These philosophies would help the researcher to expand the characteristics of the study by implementing an extensive analysis of those various theories. Marxism helps to identify the problem of the study whereas Liberalism helps to identify the positive side and advantages of the research study. This method would assist the researcher to inspect the present market condition, which in return would give the wider perspective for conducting the research process.
The deductive and inductive are the two kinds of research approaches that would be presented here. The deductive approach concerns with the existing theories and the inductive approach focuses on new approach with theories (Panneerselvam, 2014). These are the only ways to approach the topic in a suitable manner.
The researchers follow three basis research designs; those are, descriptive or analytical, exploratory and explanatory research designs (Matthews, 2014). The descriptive design helps the researcher undergoing with various approaches in a descriptive or detailed manner. The explanatory aids him to expand the connectivity between the two existing variables of the study. The exploratory research design helps the researcher to supervise the initial steps of the research, which would be based on the hypothesis that are constructed by the researcher.
The research strategy is a method to plan the research in a appropriate direction. Case studies focus group, survey methods, interview procedure can be the research strategies. However, if it is necessary to gather data from a larger group of candidate it would be survey method and interview (Bryman & Bell, 2014). This procedure will provide the views and perspectives of the retailers, business associates, end consumers and the other important factors of the industries.
The probability and non-probability sampling techniques are the two sampling methods that are done by the researcher. For gaining better comprehension of the topic, the researcher has employed a simple but random sampling technique (Flick, 2015). For this purpose, 80 samples survey have been done among the customers of any dairy product, produced from New Zealand’s dairy industry and the researcher has interviewed three business associates of the dairy industry.
The researcher gains primary data, which is the information from the different surveys and the interviews. This information has to be very authentic and should have ability to provide a comprehensive approach to the research. The secondary data is the information, which is already accessible in a printed version or any other means (Matthews & Ross, 2014).
Data analysis has been conducted in a form of tables and charts that would help to understand better the deduced data.
To evaluate the quantitative data the numerical digits have been transformed into percentages and then they have been demonstrated in various charts, graphs and tables. Apart from that descriptive statistics have been used to calculate the mean, median, mode and the standard deviation of the findings.
Transcript of the business associates’ speech has been processed to estimate the qualitative data and after that, it has to be analyzed well. A thematic analysis of the study has been conducted for interview analysis of the business associates.
A strict ethical guidance is to be followed for conducting the research (Panneerselvam, 2014). It should be kept in mind that no one is facing any kind of forced participation while conducting the survey among the customers. In addition to that, it should be always an option for the candidates who want to leave their participation at any time, in accordance with their convenience. The survey should be conducted for academic activities only (Panneerselvam, 2014). It should not be any ways of promotional activity. The survey paper is not holding any kind of logo or symbol of any diary industries of New Zealand.
3.11 Time horizon
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1st month and 2nd month |
3rd month |
4th month and 5th month |
6th month, 7th month and 8th month |
9th month |
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Survey of the market |
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Identification of user of internet |
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Deciding the way to implement the promotion on these segmented group |
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Implementing the marketing method |
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Monitor |
References
Beck, U. (2015). What is globalization?. John Wiley & Sons.
Bodie, Z. (2013). Investments. McGraw-Hill.
Bryman, A., & Bell, E. (2014). Research methodology: Business and management contexts. Oxford University Press Southern Africa.
Cgge.aag.org. (2017). Global Economy case study: How does the dairy industry operate in the global economy?. Cgge.aag.org. Retrieved 15 September 2017, from https://cgge.aag.org/GlobalEconomy1e/CaseStudy1_New%20Zealand%20Dairy_Sep10/Dairy_Sep10_print.html
Damron, W. S., & Damron, W. S. (2013). Introduction to animal science: global, biological, social, and industry perspectives.
Dcanz.com. (2017). Dairy Farming Industry & Milk Production History NZ | DCANZ. Dcanz.com. Retrieved 15 September 2017, from https://www.dcanz.com/about-the-nz-dairy-industry/
Flick, U. (2015). Introducing research methodology: A beginner’s guide to doing a research project. Sage.
Glover, J. L., Champion, D., Daniels, K. J., & Dainty, A. J. D. (2014). An Institutional Theory perspective on sustainable practices across the dairy supply chain. International Journal of Production Economics, 152, 102-111.
Gould, B. W. (2012). Understanding dairy markets. Zu finden in< https://future. aae. wisc. edu/tab/prices. html>[zitiert am 19.02. 1013].
Hirst, P., Thompson, G., & Bromley, S. (2015). Globalization in question. John Wiley & Sons.
Hovden, E., & Keene, E. (Eds.). (2016). The globalization of liberalism. Springer.
Idfa.org. (2017). Retrieved 16 September 2017, from https://www.idfa.org/docs/default-source/d-news/world-dairy-situationsample.pdf
Legislation.govt.nz. (2017). Dairy Industry Restructuring Act 2001 No 51 (as at 01 March 2016), Public Act Contents – New Zealand Legislation. Legislation.govt.nz. Retrieved 18 September 2017, from https://www.legislation.govt.nz/act/public/2001/0051/latest/DLM106751.html
Matthews, B., & Ross, L. (2014). Research methods. Pearson Higher Ed.
Mfat.govt.nz, N. (2017). NZ-China FTA upgrade. New Zealand Ministry of Foreign Affairs and Trade. Retrieved 18 September 2017, from https://www.mfat.govt.nz/en/trade/free-trade-agreements/free-trade-agreements-in-force/nz-china-free-trade-agreement
Panneerselvam, R. (2014). Research methodology. PHI Learning Pvt. Ltd.
Roberts, J. T., Hite, A. B., & Chorev, N. (Eds.). (2014). The globalization and development reader: Perspectives on development and global change. John Wiley & Sons.
Scott, A. (Ed.). (2013). The limits of globalization. Routledge.
Shortt, C., & O’Brien, J. (Eds.). (2016). Handbook of functional dairy products. CRC Press.
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