AUCKLAND - New Zealand based Manuka Health, one of the country's leading manuka honey producers, on Wednesday signed a three-year distribution agreement with Beijing-based Chao Pi Commercial & Trading LTD.

The strategic partnership agreement was signed at the Auckland offices of New Zealand Trade and Enterprise and attended by the Minister for Trade Todd McClay.

"This announcement is a demonstration of the many and increasing opportunities available to New Zealand and Chinese businesses through valuable cooperation," said McClay.

He said China is now New Zealand's second-largest trading partner, with total goods and services trade having more than doubled since the Free Trade Agreement entered into force, reaching NZ$22 billion ($16 billion).

Chao Pi will distribute the full range of Manuka Health NZ honey products to major retailers, and via online sales in China.

Manuka Health NZ CEO John Kippenberger estimates the agreement will see Manuka Health's exports to China equate up to a quarter of the company's volume within three years.

Chao Pi is the agent for more than 20,000 commodities and its distribution covers 20,000 retailers, as well as large online shopping providers.

Founded in 2006, Manuka Health NZ was purchased by Pacific Equity Partners in December 2015.