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INDUSTRY NEWS: |
 Move
grows Fonterra's European scope
(28 Jul 10) Fonterra is moving its European headquarters from Germany to Amsterdam as part of a major push to expand New Zealand's dairying business in Europe beyond the historic staples of commodity butter and cheese.
The company intends growing sales of value-added ingredients and food technology solutions to big corporate food makers and the professional culinary sector – a strategy it said is working successfully in the United States and Middle East markets.
Europe accounted for only 7 per cent of Fonterra's $16 billion annual revenues last year.
Fonterra Europe general manager Koert Liekelema said value-added ingredients included milk powders for infant formula and hypoallergenic milk protein hydrolysates for use in nutritional foods for the elderly, the sick and those who have an allergy to ordinary milk.
Fonterra's Europe technology application centre, which takes technology and food solutions developed at the dairy giant's Palmerston North research headquarters and helps overseas market customers apply them to their own products, will also move from Hamburg to Amsterdam.
Fonterra also plans to become active in the Netherlands' "Food Valley" – like Silicon Valley but with a dairy industry focus, near Amsterdam – he
said.
More at BusinessDay.
 Discover new worlds of taste at The Food Show Auckland
29 July – 1 August 2010, ASB Showgrounds, Auckland
(26 Jul 10) The Food Show Auckland is a voyage of discovery for your taste buds, offering an
incredible array of opportunities to encounter new, exciting, delicious experiences.
With more than 270 exhibitors, there are almost too many highlights to mention – but
here is a taste of what’s in store for visitors:
Even seasoned Food Show veterans will be amazed by the quality and quantity of
fresh seafood on display, including scrumptious littleneck clams from Southern Clams,
prawn skewers and mussel chowder from Oceanz, superb salmon from Regal
Salmon, and a variety of shellfish from Omega Seafood.
This year’s show also features not one but four regional groups of exhibitors, banding
together to showcase an astonishing range of local artisan products from Franklin,
Kumeu, Hawkes Bay, and Southland.
 And if you’re into cheese, you’ve come to the right place – try and buy from top
producers, including Blue River Dairy, Barry's Bay Cheese, and Mercer Cheese.
Meanwhile, the Da Vinci Gourmet Trans-Tasman Barista Championship will pit the
four best baristas in New Zealand against the four best from Australia in an all-out
struggle for supremacy. Each team has 20 minutes to make 30 coffees ranging from
a short black to a caramel soy decaf latte. Whew! Check it out at the Pure Via stand
on Saturday 31 July.
The Food Show Auckland, quite apart from being New Zealand’s largest, most
visited, and most awarded culinary extravaganza, is also a prime opportunity for our
exhibitors to introduce tens of thousands of visitors to their latest, most innovative
edible delights. Here’s a sneak peak at some of the new products that will be
launched at the show:
NZ Manuka Eggs
Amazing new cold-smoked raw eggs infused with a deliciously subtle, smoky,
Manuka flavour and imported to Auckland from the gold rush town of Lawrence,
Central Otago.
Waitaki Bacon & Ham
Premium quality bacon, ham, and pork products free from growth hormones and
growth promoters, including award-winning, gluten and preservative-free, 98% pork
sausages.
Gringo Killer
Robust, handmade New Zealand chilli sauces made from local organic produce,
including the newest sauce, ‘Bhutt Burn’, which is made from the world’s hottest chilli
pepper, the bhut jolokia. That’s right – the hottest in the world. Proceed with caution.
Native Infusions
A new range of delicious, antioxidant-rich, revitalising, tea-based drinks infused with
New Zealand botanicals and subtly sweetened with pohutukawa honey.
 Stella Artois Légère
A new, premium, full-flavoured, low-carbohydrate beer with no added preservatives
and less than half the carbohydrates of other beers. In other words, a sophisticated,
less ‘bloaty’ beer.
Heilala Vanilla
Heilala Vanilla (pronounced “hey-la-la”) produces 100% pure vanilla products
including pods, extracts, pastes, sugar, and now Heilala Vanilla Syrup, perfect for
cocktails, lattes, smoothies and pancakes.
Tasty Pots
Ready-made meals packed full of vegetables, whole grains, fresh herbs, and spices,
all wrapped up in tasty sauces. They’re low in fat, high in fibre, and contain the
recommended daily dose of vegetables. One pot and you’re sorted for the day!
Loaf
New to Loaf’s artisan bread range is their gluten-free Spicy Carrot Cake and their
scrumptious Banana, Walnut and Poppy seed loaf. Sean Armstrong, one of New
Zealand’s top chefs, oversees the entire Loaf range.
So much to see, taste, and enjoy – so little time! Book your tickets now for The Food
Show Auckland and prepare your taste buds for the time of their lives.
 For
more information visit www.foodshow.co.nz
 Hubbards
goes solar
(23 Jul 10) A new thin film solar panel array unveiled today at the Mangere factory of breakfast cereal maker Hubbards
Foods will produce enough power to light up an entire warehouse, but it doesn't come cheap.
Auckland infrastructure company Vector, which installed the system, estimated the electricity cost at 50c/kWh.
That's more than four times the average price of electricity for industrial users of about 12c/kWh according to figures from the Ministry of Economic Development.
Hubbards' business founder and chairman, Dick Hubbard said the solar array - the largest of its kind in New Zealand - was not a short term commitment.
''In 20 years time, these panels will be functioning at similar levels they are today.''
Vector CEO Simon Mackenzie said the installation was an opportunity
for Vector to understand the effect of distributed solar panel systems on its
electricity network.
Combined, the 160 solar panel installation covering 227.5 sq m will generate
29,000 kW/h of electricity a year and will be used to power the lighting for
Hubbards' finished goods warehouse.
This is equivalent to the electricity consumed by 3.5 homes over the course of
a year.
The a key feature of the panels is their ability to function on a cloudy day.
More at BusinessDay.
ZESPRI releases final numbers for new variety uptake
(22 Jul 10) ZESPRI has revealed that 600ha of its new kiwifruit varieties, Gold3,
Gold9 and Green14, will be grafted or planted
this year.
Grower interest in the two gold varieties in particular was overwhelming and
growers who bid for the undersubscribed Green14 variety were contacted by ZESPRI
over the past couple of weeks to see if they were interested in additional hectares.
In total, ZESPRI received 817 applications for 1800ha of new variety licences.
With the additional 50ha of Gold9 released by ZESPRI, 200ha of Gold3, 250ha of
Gold9 and 150ha of Green14 will be grafted or planted this year. The next potential
licence application opportunity will be in 2011.
Of ZESPRI’s 2700 New Zealand growers, 556 have received licences to grow ZESPRI’s
new kiwifruit varieties and 773 are growing ZESPRI® GOLD Kiwifruit – leading
the world in embracing and adopting innovative new kiwifruit varieties.
ZESPRI Chief Executive, Lain Jager, said the industry’s input into new variety
commercialisation and licence allocation decisions had been valuable.
“The strong collaboration and communication across the New Zealand kiwifruit
industry is one of the reasons we, as an industry, are so successful. Grower
debate and discussion is a crucial part of ensuring we are getting it right,” he
said.
ZESPRI’s kiwifruit breeding programme with Plant & Food Research is the world’s
largest and most advanced, and will deliver substantial new variety opportunities
for growers in the future.
 Charlie's
in the black
(21 Jul 10) Juice maker Charlie's Group, formed by Stefan's Orange Juice founder
Stefan Lepionka and entertainer Marc Ellis, says strong growth in Australia turned
it profitable this year.
Charlie's Group is expecting earnings before interest, tax, depreciation and
amortisation (ebitda) of $3.2 million to $3.4 million for the year to the end
of June.
That compared to a loss of $925,000 the previous year. Unaudited gross sales
were up 1.7 per cent from last year to $34.3m, with double digit growth in Australia
and the 14 countries the group exported to, Charlie's chairman Ted
van Arkel said yesterday. New Zealand was slightly down on last year
on a cases sold basis.
Full year net profit was expected to be between $2.2m and $2.4m, with the result
including a one-off gain of $1.2m relating to the sale of the company's Henderson
site.
More at NZ
Herald.
 A2
votes for deal to buy out Australian partner
(21 Jul 10)
A special meeting in Auckland of A2 Corporation Ltd shareholders has approved
a deal to buy up the remaining 50 percent stake in Australia's A2 Dairy Products
Pty Ltd that it does not already own.
In return, its partner in the company, ASX-listed Freedom Nutritional Products
Ltd, will get a 25 percent stake in A2 Corp when the deal is completed -- probably
on Thursday. Freedom will have an option of later increasing its stake to 27
percent.
A2 Corp has said full ownership will give it exclusive rights for the production
and sale of A2 milk products in Australia and Japan, and chief executive Scott
Pannell said the acquisition left the company in a stronger financial
cash-flow
position, paving the way for overseas expansion.
In Australia, up to 15 suppliers across northern Victoria, New South Wales and
southern Queensland supply 20 million litres for white milk sales and extra milk
for yoghurt. The company has a licensing agreement with yoghurt brand Jalna.
The company has just run a 10-week advertising campaign in Melbourne from which
it hopes to grow sales by 30 percent. More at National
Business Review.
 Chinese
dairy giant to invest $82m in Synlait
(19 Jul 10)
Bright Dairy & Food, China's third-biggest dairy company by volume, has agreed to buy a majority stake in Canterbury milk processor Synlait Milk for $82 million.
Synlait, which abandoned a planned $150 million share sale last year due to a tepid response, will be a joint owner of its processing company with Bright Dairy, though it will keep and operate its farms through a separate company.
Work on a new milk powder processing plant is underway, and is expected to double the company's capacity by the 2011/12 season.
The Synlait deal is Bright Dairy's first investment in processing facilities outside China.
"This accelerates our value-added strategy and is aligned with Bright Dairy's strategy of introducing a range of premium infant formula and milk powder products through its leading brands and retail distribution channels in the burgeoning eastern seaboard domestic markets of China," said John
Penno, Synlait Milk chief executive in a statement.
"Synlait Milk will help Bright Dairy establish a market leading position in the infant formula and milk powder category with a planned co-branded range."
The Bright Dairy deal is the second Chinese bid to capitalise on New Zealand's
dairy production, with Hong Kong-listed Natural Dairy looking to inject $1.5
billion in a buy-up of land and facilities, including the 16 Crafar family farms.
Bright Dairy is listed on the Shanghai Stock Exchange with a market capitalisation
of $1.7 billion, and is a subsidiary of Bright Food Group, the biggest food company
in Shanghai. Earlier this month Bright Food unsuccessfully tried to buy CSR's
Australian sugar unit.
Synlait, which aims to expand its milk powder capacity, is seeking funds to build
a second drier at its main site. It currently processes 70 million litres of
milk a year, according to its website.
Present shareholders include Japan's Mitsui, which acquired a 14 per cent stake
in 2007 for $13.5 million, implying a capitalisation of $96 million. Mitsui also
made a further $16.5 million loan available to Synlait at that time.
More
at NZ
Herald.
 Court
hearing a waste of grower money: Zespri
(16 Jul 10)
ZESPRI says that the legal case it will be defending on behalf of
its growers next week is a wasteful use of grower money.
The case is part of a campaign by Turners & Growers (T&G), a 1 percent player in the New Zealand kiwifruit industry and majority owned by corporate raider Guinness Peat Group (GPG), to break up the kiwifruit industry, New Zealand’s fastest-growing major primary producer.
ZESPRI’s Director Corporate and Grower Services, Carol Ward, said ZESPRI had made efforts to ensure the litigation, which was filed a year ago and concerns points of law dating back to government decisions more than a decade ago, did not distract from its focus on customers and grower returns.
She said that, since the launch of the litigation, average grower returns had increased by 7 percent, returns for ZESPRI® GOLD Kiwifruit had increased by 23 percent, the company and government had partnered to commit funding to ZESPRI’s world-leading kiwifruit breeding programme with Plant & Food Research, and that three new varieties of kiwifruit had been commercialised.
“In addition, a survey by Colmar Brunton said that more than 90 percent of growers support ZESPRI and the industry’s marketing arrangements, and there has been equally strong support for the growers’ view from across parliament, including from Prime Minister John Key, Agriculture Minister David Carter, Trade Minister Tim Groser and Opposition Leader Phil Goff,” she said.
Ms Ward said that, instead of concentrating on wasteful and pointless litigation, it would be better for T&G/GPG to work constructively with ZESPRI to advance in its commercial aspirations.
She said that the New Zealand Kiwifruit Export Regulations provide for anyone to export kiwifruit from New Zealand, under collaborative marketing procedures, as long as they can show their proposal is in the best interests of New Zealand kiwifruit growers.
“Collaborative marketing programmes allow companies to export kiwifruit from New Zealand – all in a way which benefits them and the wider industry. More than 16 companies, including T&G, are already exporting from New Zealand under collaborative marketing programmes and we expect these programmes will continue to grow in the years ahead.
“If it has serious commercial propositions that might benefit the industry, we would welcome such a programme by T&G,” Ms Ward said.
 Strong
interest in ZESPRI’s new varieties
(14 Jul 10) Following ZESPRI’s release of detailed information on three newly-commercialised varieties last month, growers have responded with an extremely strong indication of interest for 2010 licences.
The closing date for bids was Wednesday 30 June and the Evaluation Panel (which includes four ZESPRI representatives, one independent Director from the ZESPRI Board, one independent legal advisor appointed by the Industry Advisory Council, and one representative from legal firm Cooney Lees Morgan) has completed its assessment of the applications which were collated and validated by Cooney Lees Morgan.
The two gold varieties (Gold3 and Gold9) were both oversubscribed and the new sweet green (Green14) is currently undersubscribed. All valid bids at the maximum price for new varieties will receive licences this year, following the Evaluation Panel’s decision to pro-rate the oversubscribed Gold3 and Gold9 varieties, and issue an additional 50ha of Gold9 licences.
ZESPRI Chief Executive Lain Jager said that market demand for Gold9 supports the increase.
“Our market demand forecast supports the release of 200ha of each variety, and in some cases it was stronger,” said Mr Jager.
“The Evaluation Panel advised ZESPRI of the oversubscription for Gold9, and we decided to increase available hectares to 250ha. We believe this is manageable from a market perspective, and enables all interested growers to participate in this year’s commercial release.”
Mr Jager said that ZESPRI expects there will be substantial opportunities for growers to participate in new variety opportunities with ZESPRI in the next few years.
“This initial commercial release of three new cultivars is conservative and reflects the need to manage risk effectively as the industry learns more about the varieties over successive seasons. ZESPRI will progressively release licences over the coming years to match demand as the varieties perform in the market, through the supply chain and on the orchard.”
(Photo: Richard and Judy Trafford sorting ZESPRI new kiwifruit variety budwood
for collection by ZESPRI growers over the next week)
Overview of Allocations
Gold3 (200ha available) – 244 bids were received for 509 hectares. Each valid bidder who bid at the maximum price for 100 percent of their KPIN and it was below 0.5ha will receive their requested hectares. For all valid bidders who bid at the maximum price for 0.5ha or more, these bids have been pro-rated down to 0.5ha or slightly more, depending on the total hectares bid for.
 Gold9 (250ha available) – 481 bids were received for 970 hectares. ZESPRI has increased the available hectares from 200 to 250. Each valid bidder who bid at the maximum price for 100 percent of their KPIN and it was below 0.5ha will receive their requested hectares. For all valid bidders who bid at the maximum price for 0.5ha or more, these bids have been pro-rated down to 0.5ha. No bidder will receive more than 0.5ha of Gold9.
Green14 (200ha available) – 72 bids were received for 104 hectares. Each valid bidder will receive the full area they bid for – and all Green14 bidders who requested ZESPRI to contact them if the variety was undersubscribed are being contacted to see if they are interested in additional hectares.
Growers are receiving their legal documentation this week and once bidders have
signed and paid, they can collect their budwood and start planting or grafting.
(Photo: A Te Puke orchard in preparation for grafting ZESPRI’s new kiwifruit
varieties)
 Food
Innovation Network: developing high-value processed foods a key to growth
(26 Jun 10)
Economic Development Minister Gerry Brownlee has urged an audience
of 600 members of the food production and processing sector to take advantage
of the government’s
$21 million funding for Food Innovation NZ, a nationwide network of research
and
testing
facilities.
“The four food product development labs, in Manukau, Hamilton, Palmerston North
and Christchurch, will give local businesses open access to pilot scale facilities
so they can take an idea from the laboratory to commercial production in a quicker,
cheaper and easier manner than ever before,” Mr Brownlee told delegates at the New
Zealand Institute of Food Science and Technology (NZIFST) Conference
in
Auckland this week.
He said meeting the government’s economic goals required an increase in the number
and scale of local businesses that can compete in global markets and generate
well paid jobs for New Zealanders.
“While the food and beverage sector remains the linchpin of the economy, generating
$22.7 billion in 2009, generating half our export earnings and employing
one in five workers,
the processed foods
sector is small by comparison.
“At a value of $2.1 billion the processed foods sector is worth only nine per
cent of the food and beverage sector as a whole, despite growing at 18 per cent
a year for the past decade.
“Of the 1,840 food manufacturing companies in New Zealand, half employ more than
five but less than 100 people. This means quick and effective research and development
costs too much for many firms, which is why the government has committed $21
million over the next five years to establish a network of food innovation centres.
“We want to see local companies accelerate product development, develop foreign
markets and maintain an in-market presence, to the benefit of all New Zealanders,” Mr
Brownlee said.
Each hub will have a different focus, building on the strengths and capabilities
in each location.
Pilot scale facilities will be located at:
Manukau - focusing on processed foods and fast moving consumer goods;
Waikato - focusing initially on dairy ingredients;
Canterbury - with a particular focus on SMEs, export accreditation and new product
development; and
Palmerston North, building on existing strengths as a centre of excellence for
food research and training.
While Palmerston North has a science focus, the focus of the other three hubs
is on development and commercialisation.
Collectively these facilities will provide capabilities and services specialising
in all aspects of food manufacturing, from innovative ingredients, processing
and packaging to the supermarket shelf. In Manukau, Waikato and Canterbury, limited
liability companies are being formed to own and operate the pilot facilities.
The network organisation will also be a limited liability company with the initial
hubs as shareholders. The Manukau hub is expected to begin operations in mid
2011, and the Waikato hub in September 2011.
 Zespri
promises $3 billion in exports by 2025
(18 Jun 10)
Zespri Group says it plans to triple its export earnings by 2025
to $3 billion, mainly by boosting the productivity of its green
and gold kiwifruit
varieties.
Zespri today presented Prime Minister John Key with a copy of its 20-page 2025
strategy at the company's Mount Maunganui offices.
The target was no surprise – Zespri has previously projected earnings of $2 billion
by 2020 as part of Horticulture NZ's goal of creating a sector valued at $10
billion –but the company today offered clues to the strategies it is employing.
It wants to broaden its range of cultivars to move growers from increasingly
commoditised green types of kiwifruit to higher-value gold – a gold vine can
earn twice the dollars a grower can collect from a conventional green vine – and
other novel cultivars, gold kiwifruit which provide a wider "window" for sendings
from New Zealand, and a sweet green fruit, as well as the potential red cultivars.
Zespri said it would continue its investment in innovation – presently about
2.5% of earnings – and marketing, and boost the land used for vines by about
3200ha.
It plans to maintain current marketing "in particular the stability that the
single point of entry [SPE] system allows."
The SPE system is based on Zespri's control of exports outside Australasia.
Coincidentally, its public relations campaign came a few weeks before it heads
to the High Court at Auckland in a bid to fend off a challenge by GPG subsidiary
Turners and Growers.
More at National Business Review.
 2010
vintage quality looks exciting
(18 Jun 10)
The 2010 New Zealand grape harvest
totalled 266,000 tonnes, 19,000 tonnes smaller than the 2009 crop
and in
line with
the pre-harvest
forecast.
The pre-harvest forecast suggested a grape intake of between 265,000 and 285,000
tonnes from a producing area estimated to have been 33,200 ha -
up 2,000 ha on 2009.
New Zealand Winegrowers’ CEO, Philip Gregan, said the vintage represented another
step forward for grape growers and wineries as they respond to current market
challenges.
“Most importantly, this year’s vintage quality should be excellent,” Mr Gregan
said.
“Although the harvest was slightly later than last year, wonderful weather in
March and April, combined with lower yields ensure superb fruit was delivered
into wineries. Above all else, this confirms the industry’s focus on, and commitment
to quality.”
Mr Gregan said, “Growers and wineries will also welcome the smaller vintage.
“A reduced harvest was planned for by many growers and wineries as supply imbalances
over the past two years, combined with the global recession, have created some
real challenges for producers.
“The smaller vintage will assist in the re-balancing and recovery of the sector
over the next year or so.”
The 2010 harvest was lower in most of New Zealand’s key winegrowing regions.
In Marlborough, the vintage was down five percent, with production of the signature
variety Sauvignon Blanc four percent lower than in 2009. The Hawkes Bay crop
was also down five percent, while the harvest in Gisborne reduced 21 percent
from 2009.
In Central Otago production was unchanged on 2009, but in Waipara, Canterbury
and Northland the harvest was larger this year. Smaller vintages were recorded
in Auckland, Waikato, Wairarapa and Nelson.
Mr Gregan said he did not expect the smaller crop to affect export volumes over
the next year.
“Despite the tough global environment, export volumes have risen 27 percent over
the past 12 months. Over the next year we expect export volumes to remain near
current levels as wineries draw down on existing inventory.
“Managing supply to export markets continues to be a key priority for growers
and wineries, to ensure the premium positioning of New Zealand wine is protected.”
Growers
welcome Zespri's release of new kiwifruit cultivars
(17 Jun 10)
All three of the new kiwifruit cultivars Zespri is releasing commercially appear to have a sound agronomic base and to offer a "good market proposition," Kiwifruit Growers' president Peter
Ombler says.
Zespri is releasing for commercial production two new gold cultivars capable
of being marketed as variations on the hort16A zespri gold fruit, and a new sweet
green kiwifruit, green14.
It said orchard trials had shown both the golds are likely to be as productive
as the existing zespri gold vines – which earn about twice as much as conventional green vines – and cost no more to grow.
But the cultivars – gold3 for early-season crops, and gold9, with long-storage potential – will help Zespri sell gold kiwifruit for 30 weeks rather than the existing 20 weeks.
The sweet green will be exported to premium markets and decisions about how it will be branded will be made next year, according to Zespri managers, who see strong potential for sales at the start of the season, with the novelty of the sweet variety likely to also attract new consumers.
Zespri said an initial 200ha will be planted in its new green variety – which will be comparable in production costs and yields to its existing green kiwifruit – and
similar acreages will be planted in each of the gold cultivars.
Red varieties
The company also announced it will put out two red cultivars for orchard trials,
and Mr Ombler said growers looked forward to testing the new reds in commercial
trials.
More at National
Business Review.
 Seales
animal nutrition stronger with West appointment
(17 Jun 10) Today Morrinsville-based Seales feeds declared that it is accelerating its progress towards becoming New Zealand’s leading, scientifically-based, animal nutrition company.
Managing Director, Ross Hyland, announced the appointment of Dr Andrew
West as General Manager, Strategy and R&D at Seales.
“Dr West joins Seales to help expand the contribution of science and technology to the feeding of ruminant animals – cows, cattle, sheep and deer – in New Zealand. Animal nutrition is a science not an art and it offers the greatest opportunity for both productivity growth and pollution control within pastoral agriculture. I am confident that Seales will play a central role in helping farmers achieve the twin goals of more profit with a lower environmental footrpint” said Mr Hyland.
“This is no longer about supplementary feeds” said Mr Hyland, “it is about balanced feeds to promote reproduction, growth, development and lactation, and better manage nitrogen and greenhouse gases on farm.”
Dr West described how he is genuinely excited to be joining what in his view is the leader in animal feeds in NZ and is excited by how Seales is growing its contribution of science to animal nutrition.
“It is the firm intention of Seales to work with leading scientists, particularly those at AgResearch and at Massey, Lincoln and Auckland Universities, to progress that science. To do so, we are in the process of appointing an impressive scientific advisory board. Without question, this country will benefit greatly from a serious scientific effort to underpin the nutrition of livestock and it is Seales’ aim to provide the commercial leadership to achieve that” said Dr West.
Dr West will initially work at Seales on a 50% plus time basis and be based at Morrinsville in the Waikato. Dr West begins employment with Seales on the 2nd of August, after a lengthy term as CEO of AgResearch. Seales is happy for Dr West to continue with his current Company Directorships.
 Need
a dose of inspiration this week?
(15 Jun 10) The Annual Conference of the NZ Institute of Food Science & Technology
(NZIFST) takes place in Auckland next week, 3 days packed full of inspirational
speakers sharing their vision for opportunities in the Food Industry.
NZIFST CONFERENCE 2010 - "
INSPIRATION TO PROSPERITY"
Wednesday
23 June - Friday 25 June 2010,
Ellerslie Event Centre, Auckland
Featuring ....
 Bridget
Liddell - Principal, Fahrenheit Ventures, New York (pictured, top);
‘Food and Beverage: New Zealand's Global Industry’.
Bridget provides leadership to companies seeking to successfully commercialise
their products and services in the US market. Her clients are strong offshore
brands seeking swift, profitable traction with American audiences.
 Peter Smith -
MD, Progressive Enterprises (pictured);
‘Supermarket retailing a bellwether for both inspiration and prosperity’
Also speaking:
David Irving, (The Icehouse founder)
Andrew
Ferrier (Fonterra)
Jim Moser (CEO, Clemenger Group New Zealand)
Barry
Irvin (Tatura Milk /Bega Cheese)
Geoff
Scott (Chef/Owner – Vinnies Restaurant)
Katherine
Rich (FGC)
 Sara
Trotman (Bizzone - pictured)
Andrei
Mikhalevsky (Fonterra)
Graeme Harrison
(Founder and Chairman, ANZCO Foods)
.....
and
so many more.
Great value at only $230/half day or $1020 for all 3 days !
(includes lunches , morning & afternoon teas).
Company Multi-Pass also available.
Registration and full programme at:
www.nzifst.org.nz
 Wine
to the Dragon
(15 Jun 10) Is China the next major market for New Zealand wine?
The China wine market is expected to grow by 32% to 1.25 billion bottles over
the next three years.
The New Zealand Wine Business Symposium, 29 – 30 June, explores
the China market potential in detail.
Mainland China is a huge market. With a population in excess of 1.3 billion,
it is regarded as one of the economic power houses of the world.
Traditionally wine in China has been made from grain, the most common being rice
wine but a growing number of Chinese have ‘discovered’ western styled wines made
from grapes.
China has its’ own domestic wine industry with a total vineyard area twice as
large as New Zealand. However demand for high quality, premium wine is growing
faster than local vineyard plantings and this has created a substantial market
for imported wines, with France and Australia the largest importers into China.
The market perceives wine as a ‘glamorous’ product and wine is mainly consumed
in circumstances where the host is trying to impress. Chinese culture then plays
an important role in the marketing of wine.
New Zealand wine, in very small volumes, is present in this market, but as China
is seen as a major emerging market, how to enter, how to develop, and how to
establish New Zealand wine as a premium product is a significant challenge for
the future of the New Zealand wine industry.
The New Zealand Wine Industry Symposium is bringing Lawrie Stanford from Australia
to present the very latest market research on the Chinese wine market. Lawrie
is a wine industry analyst who has specialised in the China and Asian markets
over many years. Lawrie will be assisted in the workshops by David Wishart who
was New Zealand Trade Commissioner to Hong Kong and Macau 2005 – 2008, and is
currently International Marketing Manager, North Asia for NZ Trade and Enterprise
The presentation and the ensuing workshops will give New Zealand winemakers and
marketers the knowledge and tools to assist in this very large challenge.
The China New Zealand Free Trade Agreement provides a significant competitive
advantage to the New Zealand wine industry with taxes 20% lower than our competitors,
but the way into the Chinese market is fraught with many difficulties.
With the market for wine in China anticipated to grow by approximately 32% to
1.25 billion bottles over the next three years, now is the time for the New Zealand
industry to create a niche market for our high quality red and white wines.
This symposium offers a singular opportunity for those in the New Zealand wine
industry to learn firsthand about; regulatory controls, the cultural significance,
the perceived health benefits, the gateways into the various regions, the importance
of premium positioning, who are the people purchasing imported wines, market
segments, wine and business, the growing urban affluence, subtleties of the Chinese
palate, and importation and distribution logistics.
Registration
forms are available from the organisers at (06) 844 9956, or oncall@clear.net.nz or
online at www.winebusiness.co.nz
 Turners & Growers rolls out ENZARed
(14 Jun 10) Fifty-one years ago on June 15 1959, Turners & Growers coined the name ‘Kiwifruit’ and took it to the world. That milestone this week sees the company rolling out global plans for its ENZARed™ kiwifruit, tipped to become the premium kiwifruit variety for international consumers.
ENZARed™ is the world’s first commercialised red kiwifruit variety. The fruit’s striking red starburst centre, exotic flavour and creamy texture have earned it the title of most exciting new variety to hit international markets since gold kiwifruit more than a decade ago.
Turners & Growers owns the global Intellectual Property Rights to the new variety allowing the company to set up growing hubs for ENZARed™ in both the Northern and Southern hemispheres to ensure year-round supply to international supermarkets.
Turners & Growers CEO, Jeff Wesley has just returned from visiting Italy, France and China where Turners & Growers is establishing the ENZARed ™ crops in the Northern Hemisphere.
China is now in its third season of commercial production of ENZARed™ where domestic demand for the fruit is so strong that export volumes of the fruit have been limited.
Jeff Wesley says that at the ENZARed™ Kiwi Project at Dujiangjan in China’s Sichuan province, Turners & Growers is providing technical support and expertise to assist local growers to adopt and implement best practice growing techniques to produce fruit to the highest global standards.
 “ENZARed’s™ unique taste suits the Asian palate and the European market where it sold last year at a 17% premium to gold kiwifruit.”
In Italy, Turners & Growers is growing several thousand ENZARed™ plants to establish large ENZARed™ orchards in both Italy and France. By 2012 the company will have around 100 hectares of ENZARed™ growing in the two countries to boost supply to the European market during Europe’s winter.
“During our visit we were able to see the first ENZARed™ fruit produced on grafted vines in Italy and are extremely pleased with the fruit’s development in Italy’s growing conditions.”
Turners & Growers is working to establish New Zealand as the Southern Hemisphere’s growing hub for ENZARed™. It has a major propagation project underway at its research facility in Kerikeri to produce ENZARed™ plants and grafting material for next year when Turners & Growers will be grafting several thousand ENZARed™ plants on its orchards here.
The potential size of the market for ENZARed™ grown and exported from New Zealand is similar to gold kiwifruit, which currently earns over $250 million annually for the New Zealand kiwifruit industry.
“The global market for this premium new variety is extremely strong. It is the type of rare “break-through” new product that becomes the new benchmark in its category for supermarkets and consumers around the world.”
We are very proud that as the New Zealand Company that named the ‘Kiwifruit’ back in 1959 we are leading the market with this red “star” of the global kiwifruit industry in 2010,” he said.
This Tuesday, (15th June) marks the 51st anniversary of Turners & Growers coining the name ‘Kiwifruit’ in
1959 when the company was establishing the export market for NZ-grown Chinese
Gooseberries in the United States.
 Talley's
bid for meat processor Affco
(14 Jun 10) NZX-listed meat processor Affco is the target of
a full takeover bid by its largest shareholder, Talley's Group, which has agreed
to buy out the next-biggest investor, raising its stake to 76 per cent.
Talley's, which owned 53 per cent has reached an agreement to buy out the Spencer
family's Toocooya Nominees. It is now required by New Zealand takeovers law to
make an offer to all shareholders. Talley's has indicated it plans to offer 37c
a share, the same price agreed with Toocooya, valuing Affco at $187 million.
The Affco board said shareholders should take no action until directors had sought
independent advice.
Talley's, which owns 52.8 per cent of Affco, would own 76.2 per cent of the company
once it acquires the Toocooya stake.
Founded in 1904 as the Auckland Farmers Freezing Co-operative exporting meat
to Britain, Affco Holdings listed in 1995 after a debt restructure and a 100
million public share offer at 50c.
In October 2001 Talley's bought 10 per cent of the company for 29.6c a share.
Affco owns 44 per cent of Dairy Trust, the owner of independent cheese maker
Open Country Cheese, which Fonterra regards as a competitor for domestic milk
supply.
Affco employs more than 2800 people, at plants in the Bay of Islands (Moerewa),
Waikato (Horotiu), Bay of Plenty (Rangiuru), Hawkes Bay (Wairoa), Wanganui (Imlay)
and Feilding (Manawatu).
More at NZ
Herald.
 Fonterra
to double up on internet auctions
(10 Jun 10) Dairy giant Fonterra will increase its online trading auction from once a month to twice from September in a bid to increase its customer base and be more transparent with its pricing, the company announced yesterday.
The globalDairyTrade platform was introduced in 2008 and has been successful with bidders. There are 280 registered and each event attracts between 100 and 140. A survey of the major clients showed there was a demand for more frequent trades.
Fonterra global trade managing director Kelvin Wickham said the extra auction would add more depth and credibility to pricing trends.
He said the additional auction would give the market greater confidence as up-to-date information would be available, as well as the current balance of supply and demand.
"The key driver is greater frequency of price [for our customers] and continued growth. To build extra liquidity and increase the number of buyers and sellers," Wickham
said.
From the August 3 auction, Fonterra will be selling buttermilk powder and two
new specifications of existing products - high heat/heat stable skim milk powder
and anhydrous milk fat in 1000kg bulk packs.
Apart from the above products the platform also sells whole milk powder and skim
milk powder.
To date about 500,000 metric tonnes, worth $2.3 billion, has been sold through
the online platform to bidders in 56 countries.
More at NZ
Herald.
 Marketing
of New Zealand wine takes centre stage
(8 Jun 10)
Over two days 29 – 30
June 2010, winemakers and wine industry executives will have a unique
opportunity to learn firsthand the effects that the changed global
economic conditions are having on the marketing of New Zealand wine.
The second New Zealand Wine Business Symposium “Market To Market” is being held
at the Eastern Institute of Technology (EIT). The organisers have assembled,
from around the world, the most outstanding team of presenters. In all, fifteen
presenters will speak at the plenary sessions and conduct workshops.
Spokesperson for the organisers, Kevyn Moore QSM, said “I have had the opportunity
to read most of the presentations and anyone involved in the marketing of New
Zealand wine should register and attend this symposium.” He added; “Those who
do participate will be given the latest market intelligence and research findings.
These are so informative the attendees at the symposium will have an advantage
over the rest of the industry.”
The key markets of UK, USA, Australia, and Europe, plus major emerging markets
such as China will all be discussed in considerable detail. Presentations will
also include information on differing market segments and the key factors that
lead a consumer to decide which wine to purchase.
The USA is the largest wine market in the world. New Zealand wine exports to
the USA exceed $214 million. However, distribution and purchasing patterns have
been radically altered as a result of the American financial problems.
The foremost company studying and analysing the USA wine market is Gomberg Fredrikson
and Associates. They have undertaken specific detailed market research for the
New Zealand Wine Business Symposium 2010. The research focuses on the current
market position and the future potential for New Zealand wine in this new market
environment.
Jon and Eileen Fredrikson will present these findings to all delegates in a plenary
session on the first day and conduct three in-depth workshops.
Jon A. Fredrikson is a wine industry consultant with four decades of
diversified experience in the wine business. He is President of Gomberg,
Fredrikson & Associates, a professional consulting firm founded in 1948.
A former Naval Officer, Fredrikson was a Fulbright Scholar in economics and received his MBA from Columbia University.
Jon works on a broad range of professional consulting projects in wine industry economics, market planning and winery acquisitions and divestitures. In 2007, he served as the advisor to Stag’s Leap Wine Cellars on its sale to Michelle-Antinori, LLC.
He publishes The Gomberg-Fredrikson Report, a monthly business publication covering wine industry marketing trends. A recognized authority on the wine industry, Jon Fredrikson has been one of the most quoted sources in stories about the U.S. wine business over the years.
Jon wrote the chapter on wine consumption trends in Jansis Robinson’s Oxford Companion to the Wines of North America.
Jon Fredrikson serves on the Board of Directors or Advisors of four Californian wineries.
All wineries currently exporting to the USA and any winery planning to do so,
will find this information of strategic importance.
Registration forms are available from the organisers at (06) 844 9956, or oncall@clear.net.nz or
online at www.winebusiness.co.nz
Milk powder prices dip slightly: Fonterra
(3 Jun 10) World dairy prices are enjoying a period of relative stability says Fonterra, after its global auction Tuesday overnight showed a slight dip in average milk powder prices.
The average price of whole milk powder was down 3.4 per cent on last month’s event, at US$3790, while the skim milk powder average price dipped 6.2 per cent to US$3462.
Anhydrous milk fat prices rose 5.9 per cent to US$5324.
Manager of Fonterra’s auction platform GlobalDairy Trade, Paul Grave said
the slight price drop possibly reflects increasing supply out of the European
Union, and easing market concerns about supply.
Supply is still the market driver, but with New Zealand milk flows soon to start
again, the euro weakening against the US dollar making EU product more attractive
on the global market, and the US likely to increase supply in response to attractive
prices, concern would ease, Mr Grave said.
Drought in New Zealand had contributed to the world supply shortage.
"Our drought (effect) is cutting in now. We’re reliant on what stock we hold now and we’ve probably got less (than this time last year)," Mr Grave said
Fonterra, the world’s biggest dairy exporter and New Zealand’s biggest company, offers around 500,000 tonnes of product – about 22 per cent of its total 2009 production of 2.3 million tonnes - on its monthly internet auctions. Volumes have climbed steadily since the auction started in mid-2008 with around 180,000 tonnes.
More at BusinessDay.
 Super
21 to break into US Super Premium wine market
(3 Jun 10) New Zealand is about to pounce on the finest palates in the United
States. Last night the New Zealand Government announced support for an initiative
aiming to break into the best wine lists, the best wine shops and the best private
cellars in the States. A group of 21 wineries have come through a rigorous selection
process to become ambassadors for the Super Premium wine push. Chairman of the
group, Steve Smith MW of Craggy Range Vineyards, said this is
one of the most challenging
and exhilarating projects
in which he has been involved. "This is extraordinary stuff - we have given ourselves
two years to convince the sommeliers, wine buyers, collectors and media that
New Zealand makes some of the finest wines in the world and every great wine
list in the States should have a selection from New Zealand." "One of themes
we have chosen to use is "No one said it would be easy" but then producing great
wine is a work of love, art and science and as a group we know our wines can
stand proud in any country in the world." "The group of wineries represents some
of the best wine business brains in the country and we are itching to start work." There
has been two years planning and research behind this project which will launch
in September in the States. Mr Smith says he sees this work , which has the support
of Trade and Enterprise and New Zealand Winegrowers , being of immense benefit
to every wine producer
in the country. "I guess this is a classic case of trickle down....we hope to
break the glass ceiling to give everyone access to the upper end of the market.
New Zealander wineries have made serious advances in the US market and this builds
on the work
currently being achieved." When they launch the project Mr Smith said it will
not just be about wine. "To fully appreciate fine wine, you have to understand
the back story. We plan to tell the stories of the people and place, the food
and the culture. These
are all interwoven and make a unique and beguiling story." The wineries involved
are:
 Amisfield Wine Company |
Mt Difficulty Wines |
Saint Clair Family Estate |
| Ata Rangi |
Muddy Water Wines |
Seresin Estate |
| Cloudy Bay Vineyards |
Nautilus Estate |
Spy Valley Wines |
| Craggy Range Vineyards |
Neudorf Vineyards |
Trinity Hill |
| Escarpment Vineyard |
Palliser Estate |
Vavasour |
| Felton Road |
Pegasus Bay Winery |
Villa Maria Estate |
| Kumeu River Wines |
Quartz Reef |
Vinoptima Estate |
 Export
wine focus turns to top table
(3 Jun 10) A new Government-backed push into the US aims to build a super premium wine category for the billion-dollar export industry.
Economic Development Minister Gerry Brownlee said the wine industry was at a turning point as it was starting to produce quite large volumes although small compared with world consumption.
Wine exports have soared in value from $125.3 million in 1999 to more than $1 billion.
However, a 39 per cent jump in the 2008 grape harvest to 285,000 tonnes created about 27 million litres of oversupply after years of shortage, helping drive some erosion of wine, grape and land prices."
The perception of New Zealand wine internationally has remained strong but concerns have been raised about the effect of exporting cheap bulk wine.
"What we've got to try and do is get into markets where that top quality is appreciated so the bottle price is upwards of the $50 mark and that's what the attempt is all about with regards to the US initiative," Brownlee said.
The Government would contribute $1.2 million over two years matched by a similar amount from the 21 wineries involved in the initiative, which included 58 selected wines.
New Zealand Winegrowers USA had been established to lead the
programme and a campaign manager would be appointed to work with wineries' distributors
and undertake a programme of collaborative brand and market building.
New Zealand Winegrowers USA chairman Steve Smith said: "We produce fine wines in New Zealand, we believe it's a sector of the market in the USA that remains undeveloped for New Zealand wine, we believe it's a sector of the market that has significant long-term sustainability in terms of creating prestige and all the benefits that come from that," Smith said. "And we think the time is absolutely right to do it."
The project would not use traditional marketing routes such as advertising campaigns and massive consumer events, Smith said.
More at NZ
Herald.
 Gorgeous new bite-size red apple delivers sweet flavour, convenience and novelty
(2 Jun 10)
Prevar™ Limited today announced it has licensed the marketing rights for a new
apple cultivar with the development name PremA96, to the New Zealand Company;
Havelock North Fruit Company.
The apple was bred by fruit-science company Plant & Food Research [formerly HortResearch]
who are world-renowned for their apple and pear breeding programme.
 Company Managing
Director, Phil Alison, believes that the apple will have very wide consumer appeal
due to its outstanding appearance, sweet flavour profile and because it is juicy
and refreshing with a firm crunchy texture. “This apple is characteristically
smaller than other established varieties and combined with its distinctive appearance
will help differentiate it in the market place. We are excited about the niche
market opportunities that are available and the very positive consumer feedback
we’ve received to date.” says Mr Alison.
The apple has been trademarked Rockit™ and is protected through a Plant Variety
Right (a kind of plant patent).
“Rockit™ is an attractive eye-catching predominantly block red apple with superb
sweet flavour and firm texture. When Prevar requested commercialisation expressions
of interest in this selection, the Havelock North Fruit Company put forward some
innovative marketing ideas for the children’s, foodservice, gifting and corporate
market segments as an exciting new convenient apple” says Prevar™ CEO Dr Brett
Ennis. These apples are expected to be available on some selected New Zealand
supermarket shelves and available for export in limited quantities this season. Prevar™ is
the international joint venture company established to globally commercialise
new apple and pear cultivars emanating from the Plant & Food Research [formerly
HortResearch] pipfruit breeding programme. Joint venture partners include: Pipfruit
New Zealand, representing the New Zealand pipfruit industry; Apple and Pear Australia
Limited, representing Australian pomefruit growers and the New Zealand Institute
of Plant & Food Research Limited. www.prevar.co.nz
 Fonterra
US JV buys cheesemaker
(31 May 10)
Fonterra has continued its push towards global dominance by buying a stake in a Midwest cheese company.
DairiConcepts, a joint venture between Fonterra and Dairy Farmers of America, has bought the US hard Italian cheese business of co-operative Swiss Valley Farms (SVF).
The business was owned by SVF’s subsidiary Rochester Cheese and produces Italian cheeses for retail, foodservice and industrial customers.
Fonterra’s global ingredients and foodservices division managing director Andrei
Mikhalevsky, also DairiConcept’s chairman, said the acquisition cemented the company’s spot as the number two player in the United States’ hard Italian cheese market.
“It will also bring a more diverse product and customer mix, with scale in fresh products,” he said.
“It will provide a number of strategic benefits and synergies for DairiConcepts, and there for Fonterra and its shareholders and it gives us a clear position in one of the fastest-growing and most attractive cheese categories in the US market.”
The acquisition of the business includes a plant a Dalbo, Minnesota.
DairiConcepts makes and markets dairy and cheese products to commercial, food
service and retail customers throughout the US and internationally.
More at National Business Review.
 Mussel
producers 'shooting themselves in foot'
(27 May 10) New Zealand mussel producers are undercutting each other in foreign markets and dragging down prices for the country's biggest aquaculture export, Sanford managing director Eric
Barratt told analysts last night.
"It's New Zealand producers shooting themselves in the foot," he said.
Listed fishing company Sanford yesterday posted huge drop in profit, from $26 million down to $5.3m for the half year to March, hit by high exchange rates and low prices for some species.
Sanford was combating the price competition in mussels by creating a joint brand to market product in China, said Barratt. A joint venture of the three largest producers - Pure New Zealand Greenshell Mussels - would handle their combined exports.
"We're looking at co-ordinating better in other markets," he said. For the US market, "there are 25 exporters of mussels in New Zealand. There are 60 importers in the US. That doesn't tend to a reasonably orderly market."
Sanford produces 25 per cent of all the greenshell mussels in New Zealand, an export market worth about $200m.
The other main producers are Pacifica Seafoods, Aotearoa Seafoods, Sealord and Talleys.
Speaking to analysts and media at the Auckland Seafood School on the waterfront, Barratt desribed the last six months as "tough".
Aquaculture would increasingly fill the gap between supply and demand for seafood. "In three or four years there's likely to be more seafood from aquaculture than wild catch," he
said.
More at BusinessDay.
 Sydney
Fish Market boss meets the King
(25 May 10) Discerning diners across the Tasman are devouring the opportunity
to tuck in to the superior taste of New Zealand’s King salmon species, now that
it’s
available fresh in the world’s second biggest fish market, the Sydney Fish Market.
While Regal has been selling in Australia for 10 years, in only three months
the SFM has become it’s
third biggest customer.
The debut has been so spectacular, Sydney Fish Market managing director Grahame
Turk has crossed the ditch to check out the source of the product that’s
making
such a splash in his domain.
On his first visit to Regal producer NZ King Salmon in the Marlborough Sounds,
Mr Turk says our King salmon species ranks among the best he has experienced.
“We are delighted to be able to offer Regal King Salmon products in the market
and they are showing exceptionally strong results both amongst consumers and
with professional cooks. King salmon certainly has caught the attention of Aussie
palates – it has a terrific taste and it’s my salmon of choice.
“Coupled with King salmon’s well documented taste and Omega 3 advantages the
Regal products have certainly made their mark in a very short time.”
Grahame Turk’s comments are reflected in a recent report out of Australia that
indicates the shrimp on the barbie is in danger of being assigned to the kleensak
in favour of fish.
A Northern Tasmania ABC radio bulletin in May reported that salmon was now the
biggest selling seafood in Australia.
NZ King Salmon’s success across the Tasman is not without effort. The company’s
CEO Grant Rosewarne says years of hard work and investment in both the King salmon
species and offshore markets are now paying big dividends for New Zealand.
“During March and April we tripled sales to the Sydney Fish Market and we expect
them to have quadrupled by the end of May.
“King salmon has twice the Omega 3 levels of the Atlantic salmon and is a superior
tasting fish. We have been consistent in conveying these messages in international
markets and particularly in Australia where King salmon is up against the Atlantic
species farmed in Tasmania.”
NZ King Salmon exports 45 per cent of its production with around 35 per cent
of that going to Australia.
New Zealand King Salmon (NZKS) is New Zealand’s biggest integrated aquaculture
producer employing more than 430 skilled workers. Currently the company produces
7,300 metric tonnes of King salmon annually from five sea farms in the Marlborough
Sounds of New Zealand’s South Island. With 55 per cent of the global market,
the company is the world’s biggest farmer and supplier of the King salmon variety
earning around NZ$50 million a year in foreign exchange. It accounts for 70 per
cent of New Zealand’s salmon production. For recipes and serving suggestions
visit www.regalsalmon.co.nz. For more information about NZ King Salmon visit
www.kingsalmon.co.nz.
Fonterra
says next season's payout may top $8.00
(25 May 10) Fonterra today announced an opening forecast payout for the 2010/11 season of $6.90-$7.10 and said the full payout for the season might top $8.00.
This payout - before retentions, combines a forecast milk price of $6.60 per kilogram of milksolids (kgMS) and forecast "distributable profit" of 30-50 cents per share.
Fonterra Chairman Sir Henry van der Heyden said the opening milk price forecast represented an increase of 50 cents on the forecast price for the current season.
Based on these forecasts and targets, Fonterra farmer-shareholders on average would receive a total payout before retentions of $6.90-$7.10 for each kilogram of milksolids backed by a Fonterra share.
Van der Heyden said if international dairy prices and foreign exchange rates were to hold to current levels for most of the coming year, then it was possible that the 2010/11 payout could be a record and well over $8.00.
"However, the forecast payout has been set at $6.90- $7.10 reflecting a more cautious outlook given the high degree of volatility in the market."
More at NZ
Herald.
 NZ salmon flies out of Sydney fish mart
(24 May 10) New Zealand King Salmon has exported fish to Australia for a decade but since it started stocking the Sydney
Fish Market three months ago its product has really taken off across the Tasman.
The Sydney Fish Market is the second largest market of its kind in the world (only Tokyo's market is bigger) and when it endorses a product it sells, says New Zealand King Salmon chief executive Grant
Rosewarne.
He said the company's salmon was previously undervalued. It was frozen and did not challenge Atlantic salmon, the cheaper version and the easier species to grow.
But since having a "re-think and an attitude change" about the product and its place in the market, King salmon has taken off in Australia where it is favoured by chefs and consumers, Rosewarne said.
New Zealand King Salmon is one of the four providers of King salmon in the world - there are another two in New Zealand and one other provider from its native Canada.
"During March and April we tripled sales to the Sydney Fish Market and we expect them to have quadrupled by the end of May. King salmon has twice the Omega-3 levels of Atlantic salmon and is a superior tasting fish.
"We have been consistent in conveying these messages in international markets and particularly in Australia where King salmon is up against the Atlantic species farmed in Tasmania."
More at NZ
Herald.
 Fonterra
eyes massive organic growth by 2014
(21 May 10)
Fonterra says it expects its organic business - selling the milk from 20,000
cows certified as organic livestock - to surge by 140 percent over the next five
years on the back of burgeoning global demand for organic dairy ingredients.
"Dairy is the fastest-growing category in the international organic market, and
having seen 60 percent growth over the past two years we are well placed to build
on this," said Fonterra's organic global category manager Rick
Carmont.
An organic sector report released tonight by Trade Minister Tim Groser showed
$27.8 million of organic dairy products were exported in 2009, as the overall
organic sector contributed a total of $485m to the economy with organic exports
growing to $170 million, from $120m in 2007.
Over the same two years, total sales of organic dairy products grew almost 400
percent.
The domestic market for organic products has also grown, to $315m, according
to the Otago University report commissioned by Organic Products Exporters
(OPENZ) and Organics
Aotearoa New Zealand (OANZ).
Europe (37 percent), North America (22 percent) and Australia (19 percent) are
the largest export destinations, and fruit and vegetables valued at $85.8m were
the most valuable market segment.
Fonterra's organic dairy ingredients are used in cheese, milkpowder, proteins
and butter.
More at National Business
Review.
 Seafood
industry urged to push for China
(20 May 10) Prime Minister John Key is urging the seafood industry to "storm through" the door into China, claiming the potential to sell products there is "almost limitless".
Mr Key was speaking at the opening of the Seafood Industry Council's annual conference at Te Papa yesterday, highlighting the opportunity for "exponential" growth in exports to China.
Last year China overtook the United States to become New Zealand's second-largest trading partner, with exports of $10 billion. The target for New Zealand should be for the figure to grow to $20b "in a reasonably quick time", Mr Key said.
"It's absolutely possible; you've got 1.3 billion people who are getting wealthier by the day, and they want to consume things, and at the forefront of that is food."
New Zealand has already signed a free trade agreement with China and is working on others, but Mr Key said this would not in itself guarantee business, urging the seafood industry to spot the potential.
"We can open the door, but we can't force you to storm through it; the only way we can do it is if industry and individual companies have a sense of opportunity there – and the opportunities are absolutely huge," Mr Key said.
"The market for wine and food in China is almost limitless, so the opportunities are huge by any definition."
More at BusinessDay.
Bridget
Liddell to speak at NZIFST Conference
(19 May 10)
The NZ Institute of Food Science
& Technology (NZIFST) has secured yet another topline keynote
speaker for its upcoming Annual Conference, to be held in Auckland
23-25
June.
Bridget Liddell,
ex-pat New Zealander and Managing Principal of Fahrenheit 212, New York, is a
specialist in strategic innovation, branding and marketing strategies
and in the development and implementation of US market entry strategies
for high growth consumer products businesses.
To quote Bridget “I will focus on industry trends we are observing in the
USA market and how small New Zealand companies might play into those themes.
I also have many ‘war stories’ of the commercialization challenges
- what has happened with our small NZ companies here – and how our companies
can create real wealth for their shareholders here. “Inspiration to Prosperity’ is
a perfect topic!" As the Managing Principal of Fahrenheit Ventures, Bridget
Liddell provides leadership to companies seeking to successfully commercialize
their products
and services in the U.S. market.
Bridget’s extensive experience in finance, management and governance combine
to offer a comprehensive suite of capabilities that meet emerging businesses’ needs,
including: raising capital, establishing governance structure, promoting sell-in,
advising branding and marketing strategies, and forging strategic alliances.
Often her clients are strong offshore brands seeking swift, profitable traction
with American audiences.
Bridget is also the Chair of the New Zealand / U.S. Beachhead Program – a New
Zealand government program offering strategic advice and mentoring to businesses
seeking access to the U.S. market.
She is currently a Director of the New Zealand Superannuation Fund, a US$11B
pension fund for all New Zealand citizens and previously served as a Director
of the United Nations Principles for Responsible Investment.
Bridget was Fahrenheit 212’s Chief Operating Officer between 2003 and 2005; she
returned to the team to head up its Fahrenheit Ventures commercialization business.
The NZIFST Annual Conference features a particularly strong list of speakers
this
year,
including Andrew Ferrier, CEO of Fonterra; Graeme Harrison,
Founder and Chairman
of ANZCO
Foods; Barry Irvin, Chairman Tatura Milk Company; Andre
Mikhalevsky, MD of Global
Ingredients and Foodservices Fonterra; Sarah Trotman,
MD Bizzone; Peter Smith,
Managing Director, Progressive Enterprises Ltd; Jim Moser,
CEO, Clemenger Group New Zealand; Dr Laurence Eyres,
ECG Ltd
; David Irving,
Honorary Professor, The University of Auckland Business School and
Founder, The ICEHOUSE; Katherine Rich,
CEO, NZ Food and Grocery Council; Steve Wilson,
Managing Director, Talbot Plastics Ltd; Peter Ross,
Peter Ross Consulting Ltd; Rod Quin, CEO of Westland Milk Products;
and Geoff
Scott,
Chef Owner – Vinnies Restaurant.
www.nzifst.org.nz/events/annual-conf.asp
 Fonterra
wants total control
(17 May 10) As Fonterra rebuilds its presence in China chief executive Andrew Ferrier says the dairy giant wants to control all aspects of its supply chain.
In 2008 Fonterra owned 43 per of Chinese dairy company Sanlu - one of 22 firms caught up in a melamine contamination scandal in which at least six infants died.
Sanlu went bankrupt and Fonterra wrote off its $201 million investment.
"Anything that's going to be sold we need to be assured that our management stamp is all the way through, and that's a result of what we learned from two years ago," Ferrier said.
"What it did is it underscore the importance of getting right on-farm, securing safe milk right on-farm."
The co-operative would be in control of the farms producing the milk and the processing of products, he said.
The strategy had always been to build a safe supply chain, although in the past the company did not control all aspects of it, Ferrier said.
"We had an interest in it but we didn't run it and we're saying now we've got to run it. That's the lesson we learned."
The cost written off in China had been offset by the growth in profits in Fonterra's
other international businesses, Ferrier said.
Fonterra's revenue for the year ending July 2009 was $16 billion, including its
consumer brands businesses with $3.1 billion from Australia/New Zealand, $1.7
billion from Asia/Africa and the Middle East, and $749 million from Latin America.
More at NZ
Herald.
 Industry
fishing for control
(17 May 10) New Zealand's commercial fishing industry is drawing up proposals to take control of regulating some of its activities which it claims could save billions of dollars in efficiencies.
Dubbed "Managing Our Own Ship", the new strategy is the key theme at this year's Seafood
Industry Council (NZSIC) conference, which will be opened by Prime Minister John Key on Wednesday.
The council claims some government backing for the concept although Minister of Fisheries Phil Heatley appeared cautious about the plan on Friday.
Conservationists are warning that an attempt to take control of important elements of regulation would lead to a "major brawl".
The council admits that Managing Our Own Ship is at an early stage but the possible gains could be significant. Its official publication said a "conservative estimate" said
the strategy could increase the quota value of the industry by $2.5 billion.
NZIC policy manager Nici Gibbs said the conference would try to thrash out agreement
on what elements the industry would like control of, and how it would work.
Possible issues included where and at what time of year certain fish are caught,
to enable the industry to harvest particular species when the market is strongest.
Ms Gibbs said the industry would only seek power over "things that are entirely within the scope of the commercial fishing sector".
More controversial proposals could include the industry taking control of research
into whether quotas are sustainable, or regulating the impact the industry has
on seabirds.
More at The
Dominion Post.
 Upgrade
to CHEP online track and trace system delivers major improvements in customer
functionality
(14 May 10) A major upgrade to CHEP’s Portfolio+Plus web-based customer support system
is delivering greater control of equipment travelling through the supply chain and
improved business productivity.
Enhancements to the free online customer service system enable ‘real time’
access to stock movements, invoices and simplified administration.
Portfolio+Plus boasts user-friendly functionality for all aspects of equipment
transactions, enabling ‘live’ updates and greater visibility of the movements of
CHEP equipment.
This latest upgrade will save customers time and money through more effective
and efficient management of CHEP equipment at all points in the supply chain.
Dan Reeves, Director Fresh Business & Customer Services, CHEP New Zealand
said, “A large percentage of our equipment transactions are conducted
electronically. This online service makes it even easier for our busy customers to
track equipment movements and control all aspects of transactions with their
trade partners on a day to day basis.
“Our aim with the upgrade is to continue to streamline processes and simplify
transactions for our customers. The improved accuracy, reduced administration
time and greater control allows our customers to spend more time focused on
their core business.
“Any customer can have access to Portfolio+Plus free of charge. This latest
version incorporates a number of new features that customers have been asking
for when using the existing system over the last few years,” Mr Reeves said.
Key enhancements to the Portfolio+Plus system include:
A live system allowing customers to instantly create, reverse and correct
transactions as well as edit incorrect transactions
Greater visibility of equipment movements within the supply chain
More flexible account & transaction reporting
Expanded administration functionality enabling customers to set up and
maintain users, including trading partners as needed
Capacity to do bulk entries online and/or upload multiple transactions at
one time
“
We constantly strive to deliver improved customer service levels and as such
our customers can expect to see further enhancements being added over the
coming months,” Mr Reeves said.
 Comer
steps up to Pacific role
(14 May 10) Heinz Wattie’s MD Nigel Comer has been appointed
Regional CEO Pacific, for HJ Heinz, with responsibility for New Zealand, Japan,
Korea and Papua New Guinea. He will continue to be based in Auckland.
Comer is a 30-year veteran of the Wattie’s businesses, and has previously held
senior management positions in former divisions of the company, including J.
Wattie Foods (canned recipe products) and Best Friend Pet Foods. He has held
the senior sales and marking role for the business in New Zealand and Australia,
playing a leading role in developing Heinz Wattie’s exports and consolidating
manufacturing capabilities from across the region into the Company’s Hawke’s
Bay plants.
Comer became MD of Heinz Wattie’s eight years ago, and has overseen a remarkable
period of sustained growth and development right across the business. Aside from
the growth in Wattie’s branded products, driven by innovation, 56 per cent of
the Company’s total production is now exported, generating significant export
earnings for New Zealand. This is counter to the trend in the New Zealand food
industry where 75 per cent of the products with which Wattie’s
competes are now imported.
Each year the company also processes 130,000 of locally growing fruit and vegetables.
In announcing Mr Comer’s expanded role, the Heinz Executive President for Asia
Pacific Chris Warmoth said: “Nigel has an established record and reputation within
Heinz internationally for building and maintaining business growth based on brand,
product innovation and customer service. Through his leadership, he will contribute
significantly to the growth and success of our businesses in Japan, Korea and
Papua New Guinea.”
Mr Comer said he was looking forward to contributing more broadly across the
Asia Pacific region.
“I am delighted with the opportunity to take on a wider regional role with HJ
Heinz, while continuing with the Wattie’s business which has been my passion
for so much of my career. I’m honoured to be with a company with such a rich
heritage, now celebrating its 75th Anniversary, and a strong future”.
 Fonterra eyes 'wow' market
(11 May 10) With a population nudging one billion, an average age of 25 and GDP
of more than US$1 trillion, Fonterra's latest dairy sales hunting ground has,
as a marketer puts it, the "wow" factor.
The consumer brands team at the headquarters in Dubai, United Arab Emirates,
of New Zealand's biggest company, and of the world's largest dairy exporter,
has its sights on a market comprising the Commonwealth of Independent States
(all the "stans"), North Africa, East Africa and the East Mediterranean.
The total gross domestic product of this 43-country market, which includes war-torn
Iraq, is worth US$1.6 trillion (NZ$2.2t), says Fonterra Brands' general manager,
developing markets, Tamer
El Ashmawy.
The potential market's GDP per person is US$3763, he says.
Strategic priorities for his team in the next three years are: to lift "jar cheese" (runny
cheese in a glass) sales to Iraq, where Fonterra is in the No1 sales spot just
three years after launch; raise Anchor butter sales in Azerbaijan, where Fonterra
is also No1; and sell more bone-health milk powder Anlene in the East Mediterranean
and "growing up milks" for East African children. Anchor milk powder is already
No1 in key East African markets.
Geographical expansion is planned into North Africa (cheese and butter), Lebanon
(milk powders) and Ukraine (butter), Mr El Ashmawy says.
His team has an "extreme focus" on winning market position in the CIS, Egypt,
East and West Africa, and Iran. Fonterra, through its legacy companies and the
former Dairy Board, has had a presence in the region for 32 years which has generated
a lot of loyalty and goodwill towards New Zealand and its dairy products, Fonterra's
Callam
Weetman says.
"In these businesses, we're dealing with the sons and grandsons now."
More at BusinessDay.
 Zespri
wins first round in court battle with T&G
(7 May 10)
Heavyweight kiwifruit exporter Zespri has won the first round of
a legal stoush with a challenger to its dominance, Guinness Peat
Group (GPG) subsidiary
Turners & Growers (T&G), with the High Court allowing Zespri's
bid to split big court proceedings.
Justice White, at the High Court at Auckland, has ruled he is satisfied the practical
advantages to the parties and the court of having two of T&G's
claims determined ahead of a substantive trial significantly outweighed
disadvantages to T&G from the time taken to do so. However, he
has imposed a tight new timetable for the case, which had been
set down for a five week hearing from November 1.
Listed T&G is challenging Zespri's export dominance, arguing that some of the
regulations governing it compel the granting of export authorisation to the Mt
Maunganui-based marketing company and prevent others exporting kiwifruit. It
alleges Zespri has engaged in unjustifiable discrimination among suppliers and
engaged in non-core activities in breach of the Kiwifruit Export Regulations.
T&G, owner of the Enza brand, wants to grow in New Zealand a red kiwifruit it
has harvested in China, but cannot legally export the fruit outside of Australia
without a collaborative agreement with Zespri, which it has failed to achieve.
T&G says it also holds the global intellectual property rights to trademarked
EnzaGold and the regional rights to Summerkiwi.
More at BusinessDay.
Fonterra
milk prices ease slightly
(5 May 10) Fonterra Cooperative Group, the world's biggest dairy exporter, said
international milk prices eased slightly at its latest auction, although the
outlook for prices remained positive.
Fonterra said its GlobalDairyTrade trade-weighted index at its
latest internet auction fell 0.8 percent.
Fonterra has introduced the index for the May auction to better reflect the range
of 30 products and contract periods on offer at its monthly event.
Meanwhile the average selling price for whole milk powder, Fonterra's measure
of benchmark pricing at previous auctions, was $US3932 ($NZ5463) a metric tonne,
down $US37 per tonne or 1.2 percent, on a month ago.
Whole milk powder prices have more than doubled since hitting a low of $US1829
a tonne last July, although the prices have been relatively stable over the past
few months. Fonterra said despite prices slipping in the latest auction the market
remained characterised by strong demand and constrained supply.
The next auction will be held on June 1. A drought is affecting some parts of
New Zealand, which Fonterra has said will mean it misses its forecast growth
milk production this season.
More at BusinessDay.
Fonterra
boosts payout to $6.10
(27 Apr 10) Fonterra has announced a 40 cent increase in its forecast milk payout for this 2009-10 milk season to $6.10 per kilogram of milk solids.
Continued strength in global dairy prices, with demand growth beginning to outstrip supply, had driven the board's decision to increase the forecast milk price, said chairman Sir Henry van der Heyden.
The increase is the first since the forecast milk price was raised by $1.10 last November.
"This extra 40 cents per kg/ms will be welcomed by our farmer shareholders and also confirms that 2009/10 is shaping up as the second best in terms of cash payments to Fonterra farmer shareholders," Sir
Henry said.
However, it came at a time when many farmers, especially those north of Taupo,
were suffering from worsening drought conditions.
Many of them were being forced to dry off their herds early this season, so unfortunately
what they will gain in farm income through the higher milk price they may lose
through lower production.
With a higher milk price forecast, Fonterra has revised the advance rate schedule
for milk payments, with progressive increases in payments over the next six months.Fonterra
chief executive Andrew Ferrier said that since the last milk price forecast,
dairy prices had remained relatively high and more stable than expected for several
months, and had recently increased further.
More at www.stuff.co.nz.
 Volcano
helps NZ King Salmon to record harvest
(27 Apr 10)
Nelson-based salmon producer NZ King Salmon on Sunday (Apr. 25) harvested its biggest-ever haul, despite the easing of European flight restrictions.
The company reported full order books last week after flights were disrupted by the Iceland volcanic activity. It said at the time it would try to take advantage of the opportunity of selling more fish into Asian and Middle East markets.
Airspace closures caused by ash clouds spewing from Mt Eyjafjallajokull have been blamed for a breakdown in civil aviation worse than even the September 11 attacks in New York.
According to CEO Grant Rosewarne, the NZ King Salmon order books remain full despite a major easing in volcanic activity and the resumption of flights.
“It seems there is a sustained appetite for NZ King Salmon even after the re-opening of air space,” Mr Rosewarne says. “On Sunday we harvested 15,400 fish – our biggest ever one-day haul - just to continue meeting repeat orders to the northern markets affected by delivery delays.
“Last week was a test of our ability to scale up to meet new business and NZ King Salmon together with its supply chain operators has demonstrated we can do it. Pleasingly, we have been able to do this while also maintaining domestic market order numbers and quality.
“The overseas orders are repeats and to us that confirms the feedback we have been getting from our wholesalers offshore - that consumers love the taste difference between our King salmon and the ordinary Atlantic salmon they have been used to.”
Mr Rosewarne believes it is King Salmon’s superior taste, colour, texture and twice the Omega-3s content over Atlantic salmon that is continuing to attract business from the markets in Dubai, Bangkok, Singapore, Osaka and Tokyo.
“Last week we shipped 104,000kgs more than in a standard week. That means there are probably around 500,000 consumers around the world who have tried NZ King Salmon for the first time and that’s a considerable foothold we’ve established.”
Mr Rosewarne says customers have appreciated the effort the company has put in to meet orders.
“We’ve had some excellent feedback with customers thanking us for our efforts at short notice with a common theme being that it will result in ongoing business from new customers.”
The company’s response to the crisis has attracted keen media interest both in New Zealand and overseas. Mr Rosewarne says news items appeared in international editions of Yahoo, CNN, Singapore’s New Straits Times and World News Online among others.
NZ King Salmon is New Zealand’s biggest integrated aquaculture producer and employs more than 400 skilled workers currently producing 7,500 metric tonnes of King salmon annually. The company is the world’s biggest farmer and supplier of the King salmon variety and exports around half its production.
NZ King Salmon has the highest natural oil content of all salmon - a rich source of healthy Omega-3.
 Turners & Growers
opens $4m coolstore facility
(23 Apr 10)
As this year’s kiwifruit season gets underway in Northland, Turners & Growers has completed a $4 million state of the art cool store & dry store facility at Kerifresh, Northland’s largest pack house and orchard operation.
The two 430sqm cool stores feature the latest EcoChill® natural refrigeration technology, the first time the technology has been used for kiwifruit in New Zealand.
Turners & Growers CEO Jeff Wesley says that the NZ$4 million investment is not only better for the environment, but also ensures that fruit is in peak condition for export.
“EcoChill® operates at much higher humidity than standard refrigeration systems which is better for produce, meaning fruit for export leave the country in a much better condition. This technology also means we are reducing our energy consumption and greenhouse gas emissions.
“As the country’s leading produce exporter we’re always looking for new innovations and technologies that ensure our New Zealand produce succeeds in competitive export markets.”
The EcoChill® technology from Arneg New Zealand has a very small refrigerant charge in comparison to other systems resulting in a lower quantity of gas. The refrigerant the system operates on is a natural refrigerant as opposed to a synthetic chemical that would normally be used. It also operates with increased levels of electronic technology that helps reduce its power consumption.
Kerifresh General Manager, Alan Kerr says the investment is a boost to the local Kerikeri economy where Kerifresh is the largest employer. The facility, built by Kamo’s A Line Builders includes a new 600 sqm dry store and office extension.
“Kerifresh is a leader in New Zealand’s horticultural innovation. We are investing for the future here in our post-harvest facilities, orchard management techniques, new large-scale plantings and research and development into new varieties for export.”
 Graeme
Hart seeks $2.46b to fund acquisitions
(21 Apr 10)
This country’s richest man, Graeme Hart, wants to raise $US1.75 billion ($NZ2.46 billion) of new debt to help fund another round of consolidation of his global packaging empire, including the acquisition of Carter Holt Harvey’s Whakatane Mill.
If successful, Mr Hart’s Auckland-based Reynolds Group would boost its total indebtedness to $NZ8.37 billion against existing total assets of approximately $NZ8.24 billion.
Aside from the Whakatane paper mill, Reynolds Group Holdings also plans to buy the US-based Evergreen
Packaging group of companies.
Mr Hart, whose personal fortune was valued at $5.5 billion in last year’s NBR Rich List, already owns both companies.
Evergreen manufactures fresh carton packaging systems for beverage products, primarily serving the juice and milk end markets.
The group was formed following Mr Hart’s acquisition of Evergreen Packaging and Blue Ridge Paper Products in 2007.
More at National Business Review.
 Fairhall
Downs selected for the US Masters, Augusta
(8 Apr 10)
As Tiger Woods makes his golfing comeback he may well be enjoying a glass of Fairhall
Downs Marlborough Pinot Noir 2006. Selected by The Masters Tournament top corporate sponsor, AT&T, the wine is being poured at all of the events in the corporate arena as well as at the more private offsite evening events.
The only New Zealand wine among a raft of US offerings, co-owner Stuart
Smith is delighted. He says, “This is one of the world’s leading sports events and to have a New Zealand wine, let alone Fairhall Downs as one of the few chosen by the leading sponsor is very exciting.”
The 2006 Fairhall Downs Pinot Noir was also chosen for the tutored tasting at the October Marlborough Wine Weekend. It showed very well against other New Zealand Pinot Noirs and those selected from Burgundy. The wine also caught the attention of the buyer for US chain Whole Foods at Pinot Noir 2010.
As the current vintage is being carefully hand-picked under perfect conditions, Stuart and the team at this small family producer are looking forward to another great year for Marlborough Pinot Noir.
Surge
in milk powder prices
(7 Apr 10)
The price of milk powder has surged 21 per cent from March and is now more than
double the market low of almost a year ago.
The announcement from Fonterra's internet auction comes as the Australasian product
season draws to a close, prompting increased demand and causing
the New Zealand dollar to rise by one cent.
The price for whole milk powder rose to US$3969 per tonne with skim milk powder
posting the biggest increase of 25.5 per cent to US$3672 per tonne.
The average price for anhydrous milk fat rose 21.9 per cent to US$4827 per tonne.
Paul Grave, globalDairyTrade manager said the results reflected a tightening
in supply as the production season in this part of the world drew to a close.
"It's a good result for the market. We expected a price movement, but probably
not of this magnitude," he said.
The company also managed to sell US$100 million of product overnight, which was
significant for the New Zealand business, he said.
The next globalDairyTrade will be held on May 4, 2010.
More at NZ
Herald.
 $100m
Fonterra dairy plant planned
(7 Apr 10)
Fonterra's proposed $100 million dairy factory near the township of Darfield
could expand fourfold as dairying grows in Canterbury through irrigation schemes.
The dairy giant yesterday announced it wanted to build a new plant near Darfield
in Canterbury – its first greenfields plant in 15 years.
Fonterra trade and operations manager Gary Romano said Fonterra
was looking to secure enough land to expand the site, from an initial processing
plant with the capacity to process 2.2 million litres of milk a day to a site
capable of processing 10 million litres a day "at some point".
"Canterbury is the fastest-growing dairying region in New Zealand. It is now
producing about 15 per cent of the country's milk for export and growing at a
rate of more than 5 per cent annually," he
said.
At present Fonterra collects milk by tanker from Culverden in North Canterbury
south to its Clandeboye factory near Timaru.
Clandeboye and the huge plant at Edendale in Southland are the two big plants
in the South Island. If Darfield secures consent it will be the third.
Romano said the site was about 5 kilometres from Darfield. The plant would probably
cost a bit over $100 million, although final costings had not been done.
The company was yet to decide whether the new plant would process milk into milk
powder or into nutritional milk powders.
More at BusinessDay.
 Goodman
Fielder’s fat sale blocked
(1 Apr 10)
Australasian food giant Goodman Fielder may be forced to hold on to its edible
fats and oils business sale to Cargill Australia after the Australian Competition
and Consumer Commission said it would oppose the deal.
The $A240 million deal would lead to a “significant concentration of refining
assets in Australia”, with just a small number of competing refiners offering
a wide range of fats and oils products, according to the ACCC.
GF announced in December that the business, which processes edible
fats and oils and supplies food manufacturers and wholesalers in both Australia
and New Zealand, was to be sold to international food company Cargill.
It responded to the ACCC announcement by saying it was considering the implications
and that if the issue would not be resolved, it would retain ownership of the
business.
Goodman Fielder is the largest refiner of edible fats and oils in Australia,
supplying products such as margarines, oils blends, bakery fats and liquid oils,
while Cargill Australia is also a refiner of edible fats and oils and is the
largest supplier of crude oils to Australian edible fats and oils refiners.
The acquisition would have added four processing plants, including one in Auckland,
to Cargill’s facility in Newcastle.
More at National Business Review.
Fonterra
finalises Saudi dairy plant purchase
(31 Mar 10)
Fonterra says it has finalised the purchase of the remaining 51 percent stake
in Saudi New Zealand Dairy Products with former joint-venture partner Saudi
Dairy and Foodstuff Company (Sadafco).
Fonterra said in a statement that it now wholly owns the dairy factory in Dammam,
Saudi Arabia.
The managing director of the company's Middle East, Africa (MEA) and Commonwealth
of Independent States (CIS) operations, Amr Farghal, said the deal worth around
$45 million was a major step forward for its strategy in Saudi Arabia and Gulf
cooperation council (GCC) which also includes Bahrain, Kuwait, Oman, Qatar
and the United Arab Emirates.
"We have great confidence in the stability and growth of the GCC economies, and
see tremendous opportunity for our business in this region," he said.
The Gulf region already contributes significantly to Fonterra's offshore revenues:
in the financial year to July, sales revenues in the Middle East, Asia and Africa
were up by 22 percent to $US1.7billion in total group sales of $US12.6b.
More at National Business
Review.
 Developing
economies offer hope for NZ meat exports
(26 Mar 10)
New Zealand beef and sheepmeat farmers who have been struggling through
the global financial crisis are set to benefit from both a trimmed-down
international meat supply and new demand in developing countries
whose economies have better weathered the tough times, an analyst
says.
Economic recovery is taking place at two speeds: slowly improving in key developed
markets such as the United States, Europe and Japan, but well entrenched
in Asia, where demand for meat is strong, said Wendy Voss,
a senior analyst with leading food and agribusiness bank Rabobank.
High levels of unemployment and underemployment in the developed markets had
kept meat demand there relatively soft, though slowly improving,
Voss said on Thursday in a statement.
Voss said that despite such pressures the European Union and the United States
would remain key markets for New Zealand, with modest opportunities
for export growth, mainly through reduced local supply.
"But the strongest growth in demand for meat, including offal, will be in developing
countries, such as Indonesia, Russia, China and the Middle East, which have better
weathered the global financial crisis and whose populations are rapidly urbanising
and becoming more affluent," she said.
The outlook for global meat prices was very positive overall, though more complex
and potentially more volatile.
More at IndustrySearch.com.au.
 Fonterra
chief questions China dairy investment
(25 Mar 10)
Fonterra chief executive Andrew Ferrier doubts there is an economic
case for Chinese looking to invest in the dairy industry to buy their own processing
plants in this country.
Chinese-owned Natural Dairy (NZ) Holdings told the Hong Kong stock exchange yesterday
it had entered into an agreement to buy assets, including land, livestock and
milk powder production plants in this country for $1.5 billion.
The proposed purchase included the Crafar family's 22 dairy farms, put into receivership
last October. Ferrier today said the possibility that Chinese investment in this
country could compete with Fonterra would depend on whether they wanted to put
in their own processing assets, or whether they wanted to run their milk through
Fonterra.
He doubted there was an economic case for them to buy their own processing plants
in this country, with the Fonterra system far more efficient than anyone could
replicate, he told Radio New Zealand.
Thinking about long-term food security, New Zealand had to be awake to the fact
many people were going to be interested in investing in this country, he said.
More at NZ
Herald.
 New
old-fashioned name for Old Fashioned Foods
(24 Mar 10)
One of New Zealand’s leading export companies – Old Fashioned Foods – is set
to ‘ring in the changes’ with a change in name to Hansells Food Group
Limited.
The Group’s Chief Executive Officer, Ross MacKenzie, said the
move which caps off Hansells’ recent 75th anniversary, was prompted by the company’s
further expansion into offshore markets, coupled with the growing strength of
the Hansells brand. “We have been enjoying unprecedented growth across all of
our brands and are set to make further inroads into the USA and Canada. Unfortunately,
the Old Fashioned Foods brand cannot be used in those regions, therefore, the
shift to Hansells
Food Group is a good solution.” For a company that began as a supplier of individually-packaged
steamed puddings and desserts, Hansells Food Group has gone from strength-to-strength.
The company currently produces just over 25 million puddings each year and earns
over 50
per cent of its $120 million revenue in overseas markets. “We now supply products
to many parts of the world including, the United Kingdom, Australia and the Pacific
Islands. Our Alfa One Rice Bran Oil has already become
a global brand.” In 2006, Old Fashioned Foods acquired the Hansells business
which significantly broadened the organisations product range. Hansells is a
household name in New Zealand, having started business as a manufacturer of culinary
essences in 1934.
Fonterra
revenue falls $300m
(24 Mar 10)
Fonterra says its revenues fell $300 million in the past half year, but that
world dairy prices were continuing to recover.
The co-operative, New Zealand's biggest export earner, this morning released
its financial results for the six months to the end of January, which show revenue
was down 3.7 per cent to $7.7 billion.
Higher sales volumes have helped to maintain revenues during what it describes
as "a period of recovering dairy ingredient prices globally".
Chief executive Andrew Ferrier said Fonterra faced continued volatility in both international prices and exchange rates during the six months.
He said lower average selling prices were largely offset by a growth in product volumes sold and positive net foreign exchange impacts.
Ferrier said demand from customers rose through the half year as consumer confidence continued to improve in key markets around the world.
"This led to an increase in product sales, meaning our inventory levels were also at more normal levels compared with the unusual highs of a year earlier, during the worst of the financial crisis."
In November last year Fonterra increased the 2009/10 forecast milk price to $5.70
per kgMS (kilogram of milksolids) - from the season's opening forecast of $4.10
per kgMS. More at NZ
Herald.
 Aussie-made
Moro bars arrive in NZ
(23 Mar 10)
Cadbury is warning that consumers may notice some slight changes in the taste
of Moro bars after production shifted to Australia.
The company sacked 145 workers at its Dunedin factory in 2008 but invested $51
million in the factory, which now makes boxed chocolates, Pinky bars, Marshmallow
Eggs and other items.
Moro bar production moved to Australia and the first Australian bars appear on
New Zealand shelves from yesterday.
"Making a chocolate bar in a different factory is like making a cake in a different
kitchen - you can't always guarantee it will turn out exactly the same," said
Cadbury New Zealand managing director Matthew
Oldham.
"Though we've been working hard to get it right, there may be some slight changes
noticeable in the initial batches of Moro made in our Australian factory."
More at NZ
Herald.
 Fonterra
to close Longburn cheese plant
(12 Mar 10)
Fonterra's Longburn plant in Palmerston North will stop making cheese next month, and 35 jobs will go.
Manufacturing Value Add manager Steve Morrison said Fonterra
had been working through the plant closure with staff over several months.
About 15 affected people would get jobs at other parts of the Longburn operation,
in altered roles.
The other 20 staff are looking at positions Fonterra may have at other sites,
and other placements locally.
"It is not viable to continue manufacturing cheese [at Longburn], taking into account the market dynamics, the volumes and the costs involved," he said.
The Longburn site employs 114 staff, mostly permanent fulltimers, with many working in milk collection.
There is also some peak milk processing through the spring and early summer months.
The closure of the cheese plant would leave some other operations still going, including a large Goodman Fielder operation, Mr Morrison said.
"Fonterra will still have significant stores, milk transport, and some peak milk processing still running."
The milk train would continue to run through Longburn and the tanker base would
remain there.
More at the Manawatu
Standard.
 New
marketing manager for Heinz Wattie's
(11 Mar 10)
Heinz Wattie’s has announced the appointment of Tim Skellern as
General Manager Marketing, the role previously held by Mike Pretty who is now
Vice President, Global Ketchup, Health & Wellness, and Marketing Development
for the parent company, HJ Heinz.
Tim brings to his new position a strong background in consumer marketing in the
UK and New Zealand, including three years previously with Heinz Wattie’s. As
Business
Manager – Meal
Solutions, he played a leading role in the creation of two major marketing campaigns
for Wattie’s, the award-winning FMCG television commercial, Wattie’s – What Else!,
as well as Beanman, the superhero used to rejuvenate Wattie’s Baked
Beans for
a new generation of consumers.
Managing Director Nigel Comer said he was delighted to welcome a person of Tim’s calibre back to
the company. “He has a strong understanding of the Wattie’s brand and and its
loyal consumer base, and brings his personal and professional spark to our business.
His style will complement the strong leaders that we have in the existing senior
marketing team.”
Tim had three years with Wattie’s after immigrating with his family from the
UK in 2004. He left in 2007 to establish his own brand consultancy business,
Black Sheep Brands, and worked on brand and marketing programmes with Sacred
Hill Wines, and Tegel Foods amongst other consumer goods companies. He is also
an industry representative on the New Zealand Nutrition Foundation Council.
Tim holds a Bachelor of Arts in Economics from Cambridge University, and is also
a graduate of the Unilever management programme, a prestigious consumer goods
training ground.
He takes up his new role on March 15.
 BioVittoria
to launch new drink in the US
(11 Mar 10)
Biotech natural sweetener company BioVittoria says a major US beverage company
will be the first to use its branded calorie-free fruit concentrate in a consumer
beverage.
BioVittoria’s Fruit-Sweetness concentrate made from monk fruit
grown and processed at its operation in China will be used in a new reduced calorie
protein shake to be launched soon by California-based Maverick Brands, whose
most well-known products are Sunkist juices and smoothies.
Maverick Brands would be the first company to launch a no-added sugar protein
shake using Fruit-Sweeness, said BioVittoria chief executive David
Thorrold.
He declined to give any further details of the deal, other than to say Maverick
Brands was a “serious player” in
the US beverage market.
BioVittoria was also working with the Washington-based Talking Rain Beverage
company on a plan to use Fruit-Sweetness in a new enhanced-flavour water drink,
Mr Thorrold
said.
In February Hamilton-based BioVittoria’s product was was officially notified
as Generally Regarded As Safe (GRAS) by the US Food and Drug Administration.
More at BusinessDay.
 Meat
and dairy boost manufacturing sales
(8 Mar 10)
Manufacturing sales volumes rose a seasonally adjusted 3.1 per cent in the December
quarter, led by meat and dairy and other food-related industries.
The rise in manufacturing volumes was off a nine-year low in the September quarter,
with volume increases recorded in 11 of the 15 industries surveyed, Statistics
New Zealand (SNZ) said today.
The rise in the seasonally adjusted value of manufacturing sales was a more modest
0.7 per cent , or $139 million, in the December quarter, following four consecutive
quarterly falls.
The smaller rise in values compared to volumes, came as values for basic metal
manufacturing sales fell 19.1 per cent or $128m, and values for meat and dairy
product manufacturing fell 2.1 per cent or $113m.
In contrast, the volume of meat and dairy product manufacturing rose 4.6 per
cent .
The other food category - which includes such items as seafood, fruit and vegetables,
bread, oils and fats, flour, and sugar - recorded a rise in volume of 5.8 per
cent and a rise in values of 4.4 per cent or $99m.
More at www.stuff.co.nz.
 Amcor's
$40m investment will double capacity at can factory
(5 Mar 10)
Australian-owned global packaging manufacturer Amcor has confirmed it will invest $40 million in expanding the capacity of its South Auckland can-making facility.
The Wiri plant currently produces around 150 million aluminium cans a year - primarily for the New Zealand market - to supply energy drink, soft drink, RTD and beer producers.
The $40 million investment in a new production line would double the Wiri plant's capacity when it becomes fully operational early next year, said Amcor Australasia managing director Nigel
Garrard.
He said the new line was needed to meet the increasing demand of New Zealand beverage producers.
"We'll also be able to supply some of our Pacific Island customers from New Zealand, rather than from Australia," he said.
Garrard said it made sense to supply the Pacific Islands from Auckland, as it would cut back shipping and transit times.
"We can then provide better service to our customers."
The expansion also meant jobs, as the plant would require additional staff as
its capacity increased, he said.
The plant employs 77 staff.
Amcor has other factories throughout New Zealand producing flexible packaging
for food products, corrugated and folding cartons and point-of-sale display units.
More at NZ
Herald.
ENZARed
for NZ?
(3 Mar 10)
Zespri is seeing red over plans to grow a new kiwifruit variety
in New Zealand.
The "ENZARed" kiwifruit - also known as red sun kiwifruit, had
its first commercial harvest at orchards in China's Sichuan province and was
last month marketed at
Fruit Logistica, an international convention in Berlin for fruit and vegetable
producers.
Turners & Growers managing director Jeff Wesley says it is not
just the colour
which widens the appeal of the fruit.
"It's very sweet and it's got a creamy taste. It suits the Asian palate and the
European market."
Wesley likens the popularity of the recently launched fruit to that of the gold
kiwifruit which now earns over $250 million each year for New Zealand. He says
the new fruit is already showing signs of popularity and sells at a 17 per cent
premium in the European market.
The plants for the fruit are being propagated to be grafted next year. To produce
its own varieties here, Turners and Growers is involved in legal challenges against
Zespri which has a monopoly on new Zealand kiwifruit exports export.
"If that comes out in our favour, which we think it will, we can start propagating.
We should be able to grow our own varieties," said Wesley.
The ENZARed kiwifruit being grown in China are not imported to New Zealand but
the leaves of the plant are brought over in the invitro growing process. Plans
to produce the variety are also underway in Europe, Japan and the United States.
But he remains firmly of the opinion that New Zealand growers
should also be able to produce the fruit - which Turners and Growers holds international
rights for.
More
at NZ
Herald.
Wholemilk
powder price up
(3 Mar 10)
The price of whole milk powder unexpectedly rose this month in Fonterra Cooperative
Group’s online trading auction, though long-term contracts were weaker, hinting that the slight gain may be a blip.
The average price for whole milk powder rose 0.8 per cent to US$3281 ($4711) a tonne, according to the global
DairyTrade website managed by CRA International, that’s 79 per cent
higher than the low in July.
Still, prices for the third contract, when powder between September and November
this year, fell 2.5 per cent to US$3204 a tonne.
Dairy prices fell 7.6 per cent last month, according to the ANZ Commodity Price
Index, after they surged last year and underpinned the series’ performance.
Paul Grave, global DairyTrade manager, said the result was pleasing, though there’s still an “element of uncertainty as to how supply and demand factors will influence prices over the coming months.”
The average price of anhydrous milk fat fell 5.4 per cent to US$3959 per tonne, its lowest price since Fonterra first started offering it on the platform in February.
The event included skim milk powder for the first time, which sold at an average price of US$2927.
New Zealand’s dairy exports declined in 12 months through January, with milk powder, butter and cheese sliding 12 per cent to $8.12 billion, while casein and caseinates sank 27 per cent to $751 million.
Dairy products account for about 22 per cent of the country’s annual $39.7 billion worth of exports.
More at www.stuff.co.nz.
 Turners & Growers
profit falls
(1 Mar 10)
Turners & Growers has reported a 34 per cent fall in profit in the 12 months to December 31, saying people ate fewer fresh fruit and vegetables during the recession.
The profit of $9.5 million was down from $14.1 million last year. The board is yet to decide on a dividend.
"Historically the fresh produce industry has been relatively immune from the effects of economic recessions, but in 2009 things have been very different," the company said.
Consumers globally have reduced their purchases of fruit and vegetables and gone down-market seeking the lowest price offerings, specials and discounts.
Demand and prices were reduced significantly especially at the premium end of the market and for organics.
The company moved to reduce overhead costs. "The board believes that the company
is robust and is pleased it was able to trade profitably through the worst economic
recession since the 1930s.
Since late 2009 trading has picked up and group profits have shown signs of improvement.
The board has authorised extending the Kerifresh packhouse in Kerikeri.
This will reduce reliance on external providers.
Turners & Growers had recently purchased a transport operation in the South Island and the intention was to provide a long-haul refrigerated service that mirrors the North Island operation.
More at NZ
Herald.
 Goodman
Fielder fattens margins (25 Feb 10)
Goodman Fielder, Australia’s biggest baking company, posted a 25 per cent jump
in first-half profit after cutting manufacturing and logistics costs and benefiting
from more stable raw material prices.
Net income rose to A$90.3 million ($116.5 million), or 6.7 cents a share, in
the six months ended Dec. 31, from A$72.3 million, or 5.5 cents, a year earlier,
the Sydney-based company said today.
Goodman, whose products range from Meadow Lea margarine to White Wings baking
mixes, Helga’s bread and Meadow Fresh milk, has been rationalising its brand
portfolio to concentrate on its most-profitable lines, and in December agreed
to sell its edible fats and oils unit to Cargill Inc. for A$240 million, subject
to regulatory approval.
Fresh baking, the company’s biggest business, led the improvement in earnings
margin in the first half, as it
expanded its product range.
The EBITDA margin for fresh baking widened to 14.6 per cent in the
first half from 11.2 per cent a year earlier as earnings jumped 32 per cent,
even as
sales edged up just 0.7 per cent to A$496.8 million.
For fresh dairy and meats, the margin expanded to 13.9 per cent from 7.5 per
cent as revenue fell 8.5 per cent to A$222.4 million. The EBITDA margin on home
ingredients rose to 20.1 per cent from 18.6 per cent as sales fell 3.3 per cent
to A$258 million.
More at BusinessWire.
 Vintage
size down: Winegrowers (24 Feb 10)
The 2010 New Zealand grape harvest, which has just commenced in northern regions, is expected to be slightly smaller than the 2009 vintage according to New
Zealand Winegrowers’ annual pre-vintage survey.
“Based on data received from 59 medium and large wineries, our expectation is for producers to harvest between 265,000 and 285,000 tonnes of grapes this year” said Philip
Gregan New Zealand Winegrowers’ chief executive officer.
Wineries covered by the survey accounted for 88% of the 2009 grape harvest. A grape intake in the forecast range would be marginally smaller than the 2009 and 2008 vintages both of which saw 285,000 tonnes of grapes harvested. The vintage will be produced from around 33,000 hectares of grapes, up 2,000 hectares from last year.
The forecast for a reduced harvest was expected according to Mr Gregan. “The challenging global environment in which New Zealand wines are being marketed and sold, means producers will continue to focus on the key element in New Zealand wines’ export success of the past two decades – producing world class grapes and wines. The prospect of a slightly reduced vintage, despite a further increase in the producing area, testifies to that quality focus.”
Mr Gregan was positive about the outlook for the vintage. “Although in some regions the harvest seems to be running a week or two later than last year, the prospects for the vintage are looking good. The key for a successful harvest will be the weather over the next two months.”
 Syrah
quality continues to forge ahead (23 Feb 10)
The 6th Annual New Zealand Syrah Workshop was held at the Bayview
Chateau Tongariro from the 11 to 13 February, with Dr
Andrew Markides, Managing Director of Lallemand Australia as the International
Guest Speaker. Prior to joining Lallemand, Dr Markides had over 20 years winemaking
experience, and has taught for 30 years, holding the position of Dean of Roseworthy
Agriculture College for its last four years before it merged with Adelaide University.
Andrew’s presentation encompassed the unique conundrum that syrah winemakers
face, whereby a range of natural compounds that in high concentrations can spoil
a wine, in low concentrations those same compounds form the aromatic signature
that makes syrah special.
The other guest speaker at the workshop, David Ramonteu of Mobius
Consulting, was able to present some new French research demonstrating the unique
ripening profile of syrah and related this back quite different winemaking methods
to manage unique wine styles, building on the foundation created by Dr Markides
during his presentation.
The New Zealand Syrah Workshop is held annually to bring together winegrowers
in New Zealand to study and improve both viticultural and oenological practices
as they apply to the variety Syrah. Andrew Markides was impressed with the range
of flavours that New Zealand Syrah exhibited. He felt the workshop concept, which
encourages frank and open discussion, was a fantastic medium to share knowledge
on what can be a precocious grape variety. Markides also felt the level of collegiality
and support shown by fellow delegates was noteworthy, given how competitive the
wine industry has become. This years Convenor, Tony Robb, acknowledged the efforts
of Rex Sunde in establishing the Workshop on the national winemaking calendar. “Without
Rex, I doubt we would have seen the quantum leap in the quality of our syrah
wines over the past few years” said Robb. “We owe him a huge debt of gratitude
and I’m personally excited by the increased awareness of what we are achieving.
The overall quality of this year’s wines set a very high standard, the 2009 vintage
Syrah’s will be pretty special when they are released.” This year saw the largest
number of delegates attending the workshop since its inception.
The success of New Zealand grown Syrah can be seen in recent prestigious competitions:
“
CHAMPION WINE OF SHOW, AIR NZ WINE AWARDS 2007”
“CHAMPION WINE OF SHOW, AIR NZ WINE AWARDS 2008”
“CHAMPION WINE OF SHOW, ROYAL EASTER SHOW WINE AWARDS 2007”
“CHAMPION WINE OF SHOW, ROYAL EASTER SHOW WINE AWARDS 2008”
“CHAMPION WINE OF SHOW, TRI-NATIONS WINE CHALLENGE 2007”
TROPHY: "Best Lighter Bodied Dry Red Table Wine, Sydney International Wine Competition 2009.
www.syrahworkshop.co.nz
 Oceania
Dairy's bid to raise $74m hampered (16 Feb 10)
Aspiring dairy company Oceania Dairy Ltd has extended the deadline on its $74.75 million capital raising effort, amid "frustrating" resource consent delays.
It is rasing money to build a dairy powder processing plant near Glenavy in South Canterbury, and hopes signing up supply contracts at the expense of competitors will make it a regional dairy force.
A resource consent hearing seeking approval for the plant was held in December, with opposition coming from four nearby farmers, Fish & Game New Zealand and Forest & Bird.
Yesterday, acting chief executive Paul Parks said a consent
decision was expected in mid-February but had been delayed by another round of
post-hearing consultation.
The share offer to investors was to close on March 15 but has been extended to
April 7 to allow more time for the consent to be resolved, he said.
The company plans to issue 23 million shares at $3.25 each to financial investors
and farmers, with a minimum purchase of 160,000 shares, or $520,000.
Unlike Fonterra, shares will have no link to supply contracts and farmers will
be able to supply the plant without investing in Oceania Dairy.
The other 10 million shares will be offered to financial investors.
As well as the $74.75m sought for the dairy plant, it will look to borrow a further
$25m to cover construction and start-up costs.
More at The
Dominion Post.
 Giant
$212m dryer opens (12 Feb 10)
The world's largest milk-powder dryer, costing $212 million, will be opened today at Edendale in Southland as part of Fonterra's strengthening of infrastructure, with more South Island developments to follow.
Fonterra has a rolling plan to upgrade its plants and warehouses, and the milk-powder dryer, ED4, has been fitted with world-leading innovation and technology to the extent that equipment with intellectual property rights is installed after the main fitout.
The new dryer, capable of producing 27 tonnes of milk powder an hour, will increase Fonterra's national production by more than 10 per cent to 1.1 million tonnes a year to allow the co-operative to capitalise on the strong global demand for milk powders.
Further investment will follow, with Fonterra readying itself to invest in more plant in the South Island if it continues to lead dairying's growth. The Edendale dryer coincides with dairying growing in the South Island by between 6 per cent and 7 per cent in the past year.
Fonterra Trade and Operations managing director Gary Romano said
the South Island represented one-third of Fonterra's milk manufacturing and was
the reason the Edendale dryer was installed.
New Zealand manufacturing general manager Brent Taylor said
Edendale would eventually have to be upscaled again, with the improvements meeting
demands for milk powder
for the next two to three years.
He said Edendale had the largest processing capacity for a plant and in the next
year would be the co-operative's top milk- powder producer.
More at The Press.
 Chinese
want NZ food and beverages on the table (11 Feb 10)
Giant Chinese food and beverage importer DCH is keen to meet
with New Zealand food and beverage exporters.
A trade delegation is being organised to visit China in early April, and a meeting
with DCH will be part of the programme. DCH is China's largest importer of food
and beverage products. It focuses solely on this segment of the market. It provides
all bonding, customs, packaging, marketing and distribution services. It acts
for some of the world's largest food and beverage manufacturers.
According to delegation leader Arran Boote, of William Buck
New Zealand member firm O’Halloran HMT, there are huge opportunities in China
for food and beverage exporters.
“The trade agreements signed in 2009 with Hong Kong and China have lowered the
barriers to entry. It’s a great time for New Zealand businesses to take the step
into the world’s fastest-growing economy.”
Companies interested in joining the delegation should contact Arran
Boote at
arran@ohalloran.co.nz.
Based in Auckland, Mr Boote spends a significant amount
of time “on the ground” in
Asia. He has helped numerous New Zealand businesses establish markets, manufacturing
opportunities, and trading operations in China, via Hong Kong. He also has a
growing practice in Asia advising non-New Zealand clients on business systems,
tax matters, and finance.
Fonterra
relaunches brands in China (10 Feb 10)
Fonterra is shedding its coyness about returning to dairy manufacturing in China after a disastrous debut, saying it is relaunching two premium brands there and ultimately wants to make them in China.
New Zealand's biggest company has also revealed that China is "a registered focus area" on its books, commanding its own profit-and-loss accounts, and separate from its major Asia-Middle East business division.
Managing director trade and operations, Gary Romano, said two of Fonterra's flagship export brands, Anlene and Anmum, were being relaunched in China. The wholemilk powder products would be made in New Zealand but making them in China was "ultimately what we want to do".
Fonterra had to write off a $200 million partnership investment in China's SanLu dairy processing company last year after it was involved in an infant milk formula melamine poisoning crisis, which caused the 2008 deaths of several infants and left thousands sick with kidney problems.
More at BusinessDay.
 Don't
flood market - Oz Clarke (5 Feb 10)
A New Zealand wine industry leader says British critic Oz Clarke has given the industry a timely warning not to flood its main export market with cut-price pinot noir, as is already happening with sauvignon blanc.
Mr Clarke, reigning world wine tasting champion, told the Pinor Noir
2010 conference in Wellington last night that "oceans" of New Zealand sauvignon blanc were hitting British supermarket shelves at prices that undermined New Zealand's position as holder of the highest average price of any country in the market.
He warned New Zealand pinot makers not to increase the damage by dumping pinot at low prices.
New Zealand Wine Institute chief executive Philip Gregan said today that many in the industry agreed with Mr Clarke.
"I think it was a very timely reminder. I think everybody in the industry is aware of the significant downside of exporting bulk wine from New Zealand," Mr
Gregan told NZPA.
 Mr Clarke said German rieslings and Australian chardonnays and shirazes had similar
experiences in going from premium products in Britain to a flood of inferior
products at cheap prices, ruining those winemaking countries' reputations in
the market.
Mr Gregan said the overall average price of New Zealand wine in Britain had fallen
to about £6.10 ($NZ13.55) a bottle from £6.50 last year.
Mr Clarke said pinot noir may have only been in New Zealand for a generation
or two, but the country's pinot winemakers could cement their position at the
top of the wine world in the next decade if they learnt from the "sauvignon crisis".
He rated New Zealand sauvignon blanc as the best in the world when made "true to its cool, clean, birthright". He also said New Zealand chardonnay was now some of the greatest in the world, and compared New Zealand riesling, gewurtztraminer, cabernets and merlots favourably with the best Europe has to offer, while New Zealand syrah was "nothing short of astonishing".
More at www.stuff.co.nz.
Fonterra
to expand dairy farm operations in China (3 Feb 10)
Dairy giant Fonterra is extending its reach into China, negotiating to lease land by mid-year for two more New Zealand-style dairy farms in the world's largest emerging dairy market.
Fonterra China managing director Philip Turner said with the firm's pilot farm in Hangu, in Hebei province, performing profitably ahead of schedule and producing record levels of milk, the time was right for further investment.
The China dairy market is forecast to show double-digit annual growth over the next 10 years. The domestic dairy industry was developing quickly but the current supply of high-quality fresh milk could not keep up with demand, Mr Turner said from Beijing.
"Some of the big companies are running large-scale production facilities of their own but the number of farms in China at our level of quality and safety of milk production would be under 20."
Milk safety in China is of high public concern after deliberate melamine poisoning
of milk supplies two years ago caused the deaths of several babies and made thousands
of infants ill with kidney problems.
Fonterra was earning premium prices for its fresh, high-quality milk, which it
supplies to processors in China, Mr Turner said. Fonterra is no longer involved
in processing in China but is expected to announce
a new venture soon.
More at BusinessDay.
Milkpowder
prices drop at Fonterra auction (3 Feb 10)
The average price for whole milk powder (WMP) eased 1.6 per cent, or US$53 ($72) per tonne in Fonterra's internet-based auction this morning, compared with last month's auction.
The average price across all contracts and contract periods for WMP was US$3256 per tonne, with prices ranging from US$3175 to US$3355.
Fonterra's global dairy trade manager Paul Grave said
the result was within the range of price movements expected in the current market
environment and signalled that the market was in reasonable balance.
For anhydrous milk fat (AMF), the average price across all contracts and contract
periods was US$4183 per tonne.
Overall pricing decreased 2.4 per cent across both AMF and WMP.
The next global dairy trade auction will be on March 2 and will include sales
of skim milk powder.
More at NZ
Herald.
PM
opens Pinot Noir 2010 (2 Feb 10)
Prime Minister John Key officially opened New Zealand’s most significant international wine conference at Te Papa last night.
Pinot Noir 2010 has taken two-and-a-half years, $1.5 million and one global recession to organise and will see almost 300 of the world’s most influential wine critics test their palates on some of our best wines selected from our top 107 Pinot Noir producers.
“A traditional Maori welcome combined with song, poi and haka from the students of Whitireia Polytech provided a fitting start to what will be four days of fine wine, fine food and great kiwi entertainment,” said Pinot Noir 2010 Communications and Marketing Manager, Robert Brewer.
After the opening delegates were lead out of Te Papa and across to one of the main venues for the event – a marquee especially erected in Odlin’s Plaza on Wellington’s waterfront.
“Tonight will see a celebration of food and wine at the Winemaker’s Party with tomorrow beginning the more formal part of the programme with tastings and conference sessions at the TSB Bank Arena,” said Robert.
Cervena, New Zealand Pork, Regal King Salmon, fresh fish from Talley’s and Kapiti cheeses will help with appetites while palates will be satiated with a wide selection of wines – including, of course, Pinot Noir.
 Milk
plant plan for Hart land (22 Jan 10)
A syndicate of New Zealand and overseas businesspeople interested in buying a
cluster of Graeme Hart-owned dairy farms on converted forestry land in South Waikato is understood to be planning a new milk processing plant as part of their purchase strategy.
It is understood the group, which includes experienced New Zealand dairy industry players with no known existing milk processing interests in this country, would build the plant at or near Tokoroa in South Waikato.
Mr Hart, New Zealand's richest man, has 29 dairy farms on the market for $224.5 million through his Rank Group-owned Carter Holt Harvey (CHH) company. Bayleys, which has joint marketing rights with PGG Wrightson, began its marketing campaign yesterday but the farms have been on the market for several months.
The farms, being marketed as the biggest single offering of farming land seen in New Zealand, are for sale separately, though they have yet to obtain titles. Rank Group converted 30 farms which have been operational for 18 months or less. One has been sold.
It is understood that the Chinese syndicate that did due diligence on the farms owned by the Crafar family, now in receivership, made an offer this week for the CHH farms but it was rejected.
The group behind the proposed processing plant is understood to be trying to raise more overseas capital.
More at BusinessDay.
 Kraft
gets its cup of Cadbury (20 Jan 10)
Workers at Cadbury's chocolate factory in Dunedin are nervous about their futures after confirmation of a multibillion-dollar takeover of the company by United States food giant Kraft.
The British chocolate manufacturer has fallen to an 11.7 billion (NZ$26b) takeover by Kraft. The deal brings to a conclusion one of the most fiercely contested takeover battles London's financial centre has seen in recent years.
In New Zealand, Services and Food Workers Union national secretary John Ryall said Kraft was owned by a private equity company, "which means they are leveraged up to the eyeballs as far as their borrowings for the takeover of Cadbury's".
Kraft would be looking to quickly reduce some of that debt which could have some
impact on the Dunedin plant. The factory employs about 400 permanent staff and
100 seasonal workers. It laid off about 150 staff last year. A $51 million investment
in the Dunedin factory, announced by Cadbury in 2008, secured the future of the
plant under its present owners.
Mr Ryall said Cadbury had indicated that the staff cuts in the last year meant
staffing levels were at optimal levels. But a different company direction and
ownership structure could impact on the previous commitments.
In New Zealand, Cadbury's brands include Minties, Pineapple Lumps, Moro bars
and Dairy Milk. Cadbury New Zealand had revenues of $283.4m and made a profit
of $17.7m in 2008, the latest figures available, down from $27.2m the previous
year.
Kraft's brands include Vegemite and Toblerone chocolate, but its sales are relatively
small here at $21m.
More at www.stuff.co.nz.
 Chinese
eye Chelsea (13 Jan 10)
Chinese interest in buying Australian-based CSR's sugar and renewable energy assets - including a majority stake in the operation that owns the Chelsea brand and Auckland refinery in this country - is being seen as the start of an expanded drive into Australia.
CSR owns 75 percent of The New Zealand Sugar Co, which owns the Chelsea brand, and the waterfront refinery on Auckland's North Shore. The other 25 percent of NZ Sugar is owned by Australian cane growing group Mackay Sugar.
Yesterday, Chinese food and retail group Bright Food announced its interest in buying the CSR sugar cane energy assets, which it valued at $A1.5 billion ($NZ1.87b), but the group said it did not possess all information for a final valuation.
Bright said it had offered to hold talks with CSR to develop a proposal, but also said its expression of interest in CSR should not be considered an offer and it carried no obligations.
A story in the Sydney Morning Herald today said the move by Bright underscored
China's insatiable appetite for raw commodities.
It had put the debate over China buying Australian assets into sharp focus and
threw plans to demerge CSR's sugar and renewable energy units from its building
products businesses into greater flux, the newspaper said.
Observers saw the move as a precursor to the next wave of Chinese investment
in Australian assets.
More at www.stuff.co.nz.
Synlait
investigates alternatives to public float (8 Jan 10)
Synlait Milk says alternatives to a previously planned sharemarket float to raise capital have emerged, given a recovery in dairy sector prices.
Synlait's plan for a $150 million float on the NZX by last Christmas was deferred because of a lack of support, with the company initially saying a float could be resurrected in 2010.
Managing director John Penno said yesterday that dairy sector conditions had strengthened in the six months since float plans were in their infancy. That gave the dairy processor and farm owner alternatives to a float. "The prospects for the industry are good – there's a lot more interest in dairy as the world economy continues to do the right things ... "It does give the company more options."
Private capital placements bringing in new investors were one alternative but
Mr Penno said all options were being examined.
, Mr Penno said planned factory expansion remained a key focus.
"We've said we're committed to getting the new milk dryer up and finding the
funds to do that."
More at The
Press.
 Woolies
may buy liquor group (7 Jan 10)
Retailing giant Woolworths is rumoured to be looking at trans-Tasman alcopops
giant Independent Liquor Group in a plan to secure a supplier for its fast-growing
private label beer business and cut its reliance on Fosters Group and Lion
Nathan.
Independent Liquor is the biggest supplier of alcopops in Australia and New Zealand,
but also produces and distributes spirits, beer and wine, including Tuborg,
NZ Lager, Haagen and Carlsberg, Mystic Ridge and Grove Hill wines.
Independent, which was started in New Zealand by Michael Erceg, was sold for
$1.25 billion to private equity firms Pacific Equity Partners, of Australia,
and Hong Kong's CCMP Asia (now Unitas Capital) in 2006, after the death of
Mr Erceg in a helicopter crash.
Speculation in the alcohol industry is that Woolworths has been doing a cost/benefit
analysis of Independent Liquor. The business is believed to be worth about
$700 million.
A source close to Independent Liquor said a tie-up with Woolworths made strategic
sense. Not only would it give it access to capacity to increase its home brands,
but it also would give it access to costings, which would be used as a threat
over the bigger suppliers.
Independent Liquor has production facilities in Victoria and New Zealand.
Independent Liquor already contract-packages Woolworths home brand beer Platinum
Blonde on the eastern seaboard.
If a deal goes ahead, it would be the next step in Woolworths' plans to increase
its private label brands across groceries and liquor.
More at www.stuff.co.nz.
WMP
- first price drop in 6 months (6 Jan 10)
The rapid rise of whole milkpowder prices appears to have hit a speed bump, with prices paid for Fonterra product at auction falling for the first time in six months.
The average selling price for whole milkpowder (WMP) fell 7.1 per cent to US$3309 ($4499) during an online auction early today for product to be delivered between March and July.
The fall followed five consecutive months of price rises which had buoyed farmers' hopes for continued increases in milk payments and dividends.
Fonterra's manager of global dairy trade, Paul Graves, said today it was likely some food manufacturers had re-stocked the supply chains they ran down at the height of the economic recession.
"This is just a minor price correction," he said.
"The market is finding its balance point."
.
Fonterra offered 25,000 tonnes of WMP and 3600 tonnes of anhydrous milk fat (AMF)
- an industrial butter - in the auction.
WMP for delivery in March fell 6.8 per cent to US$3282/tonne from the Decmber
auction. The fall was bigger - 8.1 per cent to US$3255 - for delivery during
the three months from April, and was down 5.2 per cent to US$3523 for the three
months from July.
More at NZ
Herald.
 Proof
is in the science for successful honey firm (4 Jan 10)
It took Chris McElroy four visits and some creative persuasion before British
supermarket giant Waitrose agreed to stock his New
Zealand Honey Company products.
Trying to win supermarket shelf space in the world's most contested food market
was no easy task, but McElroy, the chief executive of specialty honey producer
the New Zealand Honey Company, finally won them over by providing a point of
difference and building on the New Zealand brand.
And that is their strategy - having a product scientifically proven to contain
antioxidants or antibacterial properties, leverage from NZ's premium reputation
as a food producing nation, and targeting the world's affluent and health-conscious
consumers.
Mr McElroy said they needed to first prove consumers were prepared
to pay a premium
for its honey.
"The retail price is twice as high as normal honey. We've tried to get into the
nutriceutical area and what we have to do is convince consumers they should pay
more for these honeys."
It has proved successful, with annual sales growing from $300,000 in the year
from August 2006 to $5 million this year with volumes of honey expected to reach
500 tonnes.
The New Zealand Honey Company, which was last year named New Zealand's fastest
growing company, was formed in 2006 by Hawea beekeeper Peter Ward and three private
shareholders. The company sells its products in 1300 outlets, including the 55-store
British health food retailer Holland Barrett, supermarkets Asda, Morrisons and
Waitrose,
110
supermarkets in Hong Kong and 40 retailers in China.
More at NZ
Herald.
Goodman
Fielder sells fats & oils division to Cargill (10 Dec 09)
Food and dairy company Goodman Fielder Ltd has agreed to sell its edible fats and oils operations to global food and agricultural products group Cargill for A$240 million.
Goodman Fielder managing director Peter Margin said the sale
price was a significant premium to the carrying value of the business.
``The sale of these assets will allow the company to focus on our core business
which is the manufacturing and marketing of everyday branded consumer foods.
``We will now concentrate on enhancing the strength of our outstanding portfolio
of retail consumer brands.''
The deal includes a 10-year supply agreement under which Cargill will supply
refined fats and oils products to Goodman Fielder for Goodman's Home Ingredients
brands and businesses.
The sale includes four fats and oils refining facilities.
Goodman will keep part of its food service operations that does not relate
to fats and oils.
The sale is subject to approval from the Australian Competition and Consumer
Commission (ACCC).
More at www.stuff.co.nz.
 Crumbs
... that's a lot of chocolate (10 Dec 09)
A Cadbury executive has flagged the possibility of a three-fold increase in the
production of crumb at the company's Dunedin factory.
The factory produces an annual 13,000 tonnes of crumb - the milk, sugar and cocoa
base for chocolate - in a $20 million plant set up about two years ago.
However, Australia-New Zealand managing-director Mark Callaghan said
production could be increased to 45,000 tonnes.
Dunedin crumb was already being sent to Australia, Pakistan, China and Malaysia,
and it was the company's intention for Dunedin to supply "a lot more" to Australia.
The existing plant is capable of producing 18,000 tonnes of crumb a year.
In a busy month, the factory takes in 150 tankers of fresh milk to make 1300
tonnes of crumb.
Each tanker contains about 24,000 litres of fresh milk, from farms throughout
the South Island.
The plant also uses a small amount of powdered milk.
Cadbury's Claremont plant, in Hobart, also produces crumb but Callaghan said
"I think it's more likely that Dunedin's crumb plant is where we are going to
start investing further again, to increase the capacity of that equipment."
Cadbury corporate communication manager Daniel Ellis said the Dunedin plant was
more modern and had a greater ability to produce more crumb in a quicker time,
but Cadbury "would aim" to
balance the crumb operations between the two plants.
More at NZ
Herald.
Fonterra
eyes buyout of Saudi partner (9 Dec 09)
Fonterra is in talks to buy out its partner in the Saudi Arabian milk and cheese market, Saudi New Zealand Milk Products.
A spokesman for the dairy co-operative confirmed it had a conditional agreement to purchase the other 51 per cent of the business from Sadafco, the Saudi Dairy and Foodstuff Co. "We expect it to settle in early January," the spokesman said. "We just don't want to give any more details about it until then."
Fonterra entered into the joint venture in 1996 and makes processed cheese, feta
and sachet and canned milk powder for customers in the Gulf states.
The spokesman would not give any figures on how much Fonterra earns from Saudi
Arabia, but its latest annual report shows revenue from Asia, Africa and the
Middle East was $1.67 billion in the year to July 2009, up from $1.37 billion
in 2008.
Sadafco, Saudi Arabia's third largest food producer by market value, indicated
last Sunday that it may sell its holding in the processing venture.
In a statement to the Saudi Arabian Stock Exchange, Sadafco said it had signed
a memorandum of understanding with Milk Products Holdings and New Zealand Milk
International to consider the plan.
MPH is a subsidiary of NZ Milk International which is owned by Fonterra Brands.
Saudi New Zealand Milk Products has two offices in Saudi Arabia.
More at NZ
Herald.
 Alliance
ponders South America trade (8 Dec 09)
Alliance Group chairman Owen Poole says the meat processor is to consider opportunities to sell meat to South America and also source meat from that market to onsell into northern hemisphere countries.
The board would meet to consider the just-completed trip by three members of the Alliance management team to South America, Mr Poole said.
There were two strategies for the board to consider when a report was received from "processing people and marketing people".
"One, is there an opportunity to sell some products in there for value? The second point is, is there an opportunity to secure product from South America to support our marketing efforts in other parts of the world."
Any product sourced from South America could go to Asia or Europe, Poole said.
"The world is going to be short of product. We [New Zealand] are tight of product," he
said.
The Alliance management team had visited Chile, Uruguay, Brazil and Argentina,
Alliance chief executive Grant Cuff said.
South America's animal quality was improving, but there was a "huge variety of climates and range of genetic improvements" to
deal with, Mr Cuff said.
In the year to September 30 Alliance reported a $42 million profit before tax
and pool payments, based on turnover of $1.5 billion.
In the year to September 30 Alliance had spent $50m on processing facilities
and upgrading equipment, including a new Levin plant bought in November 2008.
More at The
Press.
 NZ's
only tea plantation goes organic, starts exporting (4 Dec 09)
New Zealand's only tea plantation is now certified organic in time to begin exporting its harvest.
Zealong tea maker Vincent Chen made an application to the organic
certifying body BioGro, which was approved last week for the three hectare Rototuna
farm, just north of Hamilton.
Now into its second commercial harvest, Zealong is now ready to start exporting
its tea to the world.
Taiwanese born Chen says his preference for organic tea comes from his passion
for drinking 'pure' tea.
Zealong's deputy general manager Gigi Crawford says despite establishing the
plantation in the desired organic way and its entry on the market, the team is
only halfway towards recognition as tea growers.
She says the company expects to earn $16m in its first year trading, but this
is dependant on the quality of the tea leaves during the propogating process.
Crawford, who is also the company's marketing manager, says the challenge of
selling to overseas markets was not taken lightly. She says selling tea to Chinese
was difficult because of the traditional expertise they have, similar to those
New Zealanders who considered themselves expert winemakers.
This prompted her to adapt the brand's marketing strategy. "The first time we went to China nobody really believed that we really have tea. We had to start by launching here first so that you create awareness for the people [here] to know. "There is 3000 years of tea history in China and you're trying to sell tea to them.
Therefore we have to emphasize we're actually bringing the best of both worlds [together]; the combination with the Asian skill of tea and the pure environment both together to produce this tea." More at NZ
Herald.
Milk
prices continue upwards (2 Dec 09)
Milk powder prices have continued to march higher, climbing for the fifth straight month on Fonterra's online trading auction to a 15-month high as demand for dairy products remained resilient after last year's slump.
The average price of whole milk powder advanced 3.6 per cent to US$3,560 per metric ton, according to the globalDairyTrade website, the highest since August last year and a 95 per cent surge from its low in July. The price of anhydrous milk fat fell 8.6 per cent to US$4,349 per metric ton.
"It's a very good result in that prices have remained stable," said Kevin Wilson, ANZ National Bank rural economist. "Forward prices didn't have as big a premium which suggests buyers are not so desperate to secure supply."
Fonterra expects dairy prices to begin easing when the milking season in America
and Europe begins in March/April next year, and global trade managing director
Kelvin Wickham says the current prices are above the long-term sustainable average.
Surging dairy prices have helped underpin the recovery in New Zealand's commodities
as buyers restock their depleted inventories after they ran them down in the
wake of the global financial crisis. Dairy products account for about 23 per
cent of the country's annual $40.7 billion worth of exports.
More at NZ Herald.
Taskforce
backs busting Zespri's grip (1 Dec 09)
Turners & Growers chairman Tony Gibbs has hailed a recommendation by the 2025 Taskforce to bust Zespri's export monopoly as a major fillip to his crusade to deregulate the kiwifruit industry.
Gibbs has also fired another shot at Trade Minister Tim Groser releasing a letter which he says undermines the Cabinet minister's statement that the Government will not wipe the export monopoly without a majority of grower support. The August 4 letter from Agriculture Minister David Carter says the Government would consider change if it was evident that a "substantial proportion" of
kiwifruit growers was in clear support of changes. The letter does not mention
a majority threshold.
The taskforce yesterday labelled Zespri as an anachronistic legacy of the old
producer boards whose monopoly powers should be revoked. "Competitive markets need to be promoted not forestalled by Government fiat," its report said.
The taskforce also said it was not persuaded by the majority grower threshold: "It is not clear what public policy interest would justify a Zespri monopoly that prevented say, 35 per cent of growers who wished to do so from selling their fruit abroad through other companies."
But Zespri chairman John Loughlin slated the taskforce recommendation saying it would lead to a significant productivity drop and a reduction in New Zealand's export earnings. "In the last 10 years, the New Zealand kiwifruit industry has doubled in size and value, significantly contributing to the New Zealand economy and delivering wealth to New Zealand kiwifruit growers," said
Loughlin.
More at NZ
Herald.
 Craft
beers buck recession (1 Dec 09)
John Harrington could not be happier.
His Christchurch brewery Harrington's is brewing more of the brown stuff than ever before, which means a record number of people are drinking it.
Only last week, the former publican turned award-winning craft ale brewer handed over his biggest excise cheque to the government's customs department in nearly two decades of brewing – an act that generated a perverse expression of triumphant satisfaction.
"We've never been busier and the demand for our beers just seems to get stronger
and stronger."
Craft beer is undergoing something of a resurgence in New Zealand, with sales of fragrant, malty, emphatically hopped brews soaring, to the detriment of ordinary beers.
From its humble beginnings at the Wards Brewery in the early 1990s where some 3000 litres flowed through the tanks each week, Harrington's has evolved into a force to be reckoned with. It has eight bottle stores, two bars, two breweries and 24 different brews to boot.
The company produces about 25,000-30,000 litres a week.
Its bottled beers have made their way on to the supermarket shelves, helping drive turnover to about $10 million a year.
Not bad considering New Zealand's overall beer market slumped nearly 5 per cent in the year to September.
In November, the country's second-largest brewer DB Breweries revealed a near 80 per cent slide in annual profit, while Lion Nathan lifted pre-tax profit by 5 per cent.
"Beer drinking has changed for the better," Mr Harrington says.
"Instead of people filling themselves up on too many jugs of the bland watery stuff, they're buying Harrington's and consuming it in a more respectful style and attitude."
In the United States, craft beer volume jumped over 10 per cent last year.
"We're not quite there yet but production is growing and that's plain to see," says
Brewers Guild chairman David Cryer.
More at The
Dominion Post.
Hansells
the very essence of a Kiwi family firm (28 Nov 09)
As a growing number of companies head overseas, one brand synonymous with Kiwi baking is celebrating its staying power.
Hansells, best known for its flavour essences, celebrated 75 years as a locally owned and run business yesterday.
Old and new employees gathered at the original factory in Masterton, which is still operating.
Sitting together under the trees in the factory grounds, reminiscing at the 1930s-style high tea garden party, were Rena Fellinghan, 89, and Gillian Maunsell, 84.
Mrs Fellinghan worked at the factory from 1936 until 1945.
Her job was to put the flavour essences into the bottles, and put the labels on – all by hand.
The job was "a lot of fun", she said, looking fondly at a staff picture from
1936. She can still name all the people.
Staff would play tennis and swim on the property.
The name Hansells comes from the co-founders, L B Maunsell and a Mr Hansen, a
chemist. Mr Hansen did not last long in the firm and it is believed he was shipped
back to Australia on a bigamy charge. Hansells NZ Ltd began operating as a manufacturer
of culinary essences in 1934. Today its brands include Vitafresh, Thriftee, King
Traditional Soup, Sugromax, Sucaryl, Hansells and Kings. It is still best known
for flavour essences, but other products include food colouring, gravy browning,
drinking chocolate, drink powders, pancake mixes, baking goods and mousse. Hansells
and its various brands were acquired by Old
Fashioned Foods Group in 2006. Today,
more than 350 people work at the factories in Masterton and Auckland and subsidiaries
in Australia and Britain.
More at The
Dominion Post.
 Mac's
on the move (27 Nov 09)
Craft brewer Mac's is to cease production at its Shed 22 Wellington waterfront
site in a move parent brewer Lion Nathan says will save the business hundreds
of thousands of dollars a year.
Lion Nathan, which bought the Mac's brand in 1999 and set up its headquarters
at the waterfront site above a state of the art brewery three years later, blamed
rising costs and a growing demand for craft beer for the closure.
But the Wellington bar and restaurant will stay open.
The brewery will be dismantled and shifted to Christchurch where it
will be rebuilt inside Lion's Canterbury brewery. Six staff are affected by the
move but could continue brewing for Mac's at alternative sites.
Lion, which saw its New Zealand operations deliver a 5 per cent pre-tax profit
increase of $94.3 million for the year to September, said the move was vital
to protect the long-term future of the brand, which it bought from former All
Black Terry McCashin a decade ago. Since then, production has rocketed 515 per
cent.
The small size of the Wellington site made it difficult to meet demand, with
brewery costs five times more expensive than any other Mac's brewing facility.
The Wellington brewery produces 800,000 litres of the beer every year compared
to the 36 million litres that come out of the tanks in Canterbury.
More at www.stuff.co.nz.
 Seeka
profit edges lower (26 Nov 09)
Seeka Kiwifruit Industries, the company which handles 26 percent of New Zealand’s kiwifruit crop, posted a 2.9 percent decline in first-half profit after it was forced to write off its investment in research company Vital
Foods this year.
Net profit fell to $8.2 million, or 0.65 cents per share, in the six months ended
Sept. 30, from $8.4 million, or 0.67 cents, a year earlier, the company said
in a statement.
Seeka declined to participate in Vital Foods' capital raising and wrote off its
$1.75 million investment. Revenue edged higher to $95.5 million from $95.4 million
in the first half of the previous year.
Seeka lifted its forecast after it entered an agreement to buy fruit packaging
company Te Awanui Huka Pak Ltd. for $24.2 million to boost its capacity.
"Huka Pak's crop tends to be early, beyond its own capacity to handle, and at a time when Seeka's infrastructure is idle waiting for fruit," chairman Kim Ellis said in a statement.
"The acquisition delivers Seeka greater infrastructure utilisation and Huka Pak growers better opportunity to earn the significant early start premiums."
Seeka's packing volumes declined 1.6 million trays to 19.3 million trays, and
Ellis said the company's performance had been hindered by a severe hail storm
that reduced fruit volumes over the period.
More at www.stuff.co.nz.
Govt
will defend Zespri at WTO (26 Nov 09)
The Government says it will fight to retain New Zealand's kiwifruit export arrangement,
as long as growers want it.
Kiwifruit growers' marketer Zespri has accused commercial rival Turners and Growers
(T&G) of attempting to ambush it at the World Trade Organisation (WTO).
Zespri chief executive Lain Jager wrote to Trade Minister Tim Groser earlier
this year claiming that corporate raider Guinness Peat Group (GPG) and its
subsidiary T&G had been working with the United States government to get rid
of its single desk status.
Mr Groser has described the action as "very unhelpful" but sees it as a commercial
dispute dressed up as an issue of principle in trade policy. He said the Government
would fight any
action taken.
"We've got a very strong position here, there are specific rules in the WTO ...
but we will pursue our interests within the framework of existing law and we
will do it very vigorously and I suspect rather well," Mr Groser told Radio New
Zealand.
"I think New Zealand does need size in international negotiations and I think
this is a way of ensuring it."
More at www.stuff.co.nz.
 Wattie's
starts round-the-clock pea harvest (26 Nov 09)
Vegetable processor Heinz Wattie's Christchurch factory will switch to round-the-clock
shifts this week to handle a particularly big crop of peas.
It will process 400 tonnes of peas daily for the next three months, in the wake
of record plantings by contracted growers during July and August.
Agricultural manager Mark Daniels said the crop was looking a lot better than
last year, and he is expecting improved yields -- around 30,000 tonnes of peas
from more than 500 paddocks owned by 250 growers.
This week's Canterbury harvests are being snap frozen within about two hours
of harvest, and will be supplemented by peas grown and processed at Gisborne.
The Christchurch factory is the world's largest producer of dehydrated peas.
More at National Business Review.
Zespri
accuses GPG of colluding to undermine policy (25 Nov 09)
Zespri has accused a commercial rival of colluding with foreign powers to undermine its activities and New Zealand's trade policy.
Letters from Zespri chief executive Lain Jager to Trade Minister Tim Groser accused Guinness Peat Group (GPG) and its subsidiary Turners and Growers (T&G) of working with the United States Government to get rid of its single desk status.
NZPA reported yesterday Turners and Growers appeared to have ambushed the kiwifruit growers' marketer at the World Trade Organisation.
Turners chairman Tony Gibbs said yesterday the US delegation at the WTO had lodged a question related to his court action in New Zealand against Zespri International's single desk status.
Letters from Mr Jager to Mr Groser in late September and early October said GPG had worked with US embassy staff in Wellington.
"(The evidence) strongly suggests GPG and its subsidiary Turners and Growers are seeking to collude with foreign powers to apply pressure on the New Zealand Government in context of CPG/T&Gs demands for the deregulation of the domestic kiwifruit industry," the letter said.
Mr Jager said there were reports T&G was also trying to undermine free trade talks.
"T&G planned to bring the existence and effect of the New Zealand kiwifruit regulations to the attention of the United States and Korean Governments in the context of upcoming free trade discussions in order to put pressure on the New Zealand Government to deregulate the New Zealand kiwifruit industry."
Turners and Growers is controlled by corporate raider GPG, which led the attack
that acquired the apple industry's Enza company from orchardists in 2000, and
Mr Gibbs absorbed Enza into Turners and Growers.
More at National Business Review.
 McCain
to transfer frozen vege production from Tasmania to NZ (25 Nov
09)
McCain Foods has announced that their frozen vegetable processing plant in Smithton,
Tasmania will close in November 2010, with production moving to New Zealand.
In a statement released on Friday, McCain Foods Australia/New Zealand managing director Steve Yung said upgrading the vegetable processing plant, which was more than 60 years old, required a significant investment and
could not be economically justified.
He said rising costs also contributed to the decision.
Vegetable processing will cease around the end of the season in April, but picking will continue until October-November 2010.
The
news
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115
workers
made
redundant.
McCain will keep the potato processing plant in Smithton open, however.
The company is relocating all its vegetable growing operations to Hastings in
New Zealand. Tasmanian Farmers and Graziers Association (TFGA) Chief Executive
Chris Oldfield said news
of McCain declaring it would in future source its vegetables from New Zealand
was a triple whammy for Tasmanian
growers, “a real slap in the face”. “Tasmanian vegetable
growers have been warning for years that they are threatened by imports and here
is clear evidence that one of our biggest threats is across the Tasman.”
More at www.ausfoodnews.com.au.
Moro
production to move to Australia (22 Nov 09)
The Moro bar – Cadbury's best-selling chocolate bar in New Zealand – is
set to be made in Australia, along with other popular Kiwi treats including Perky
Nana, Crunchie, Jet Planes and Eskimos.
However, New Zealand will become a specialist centre for boxed chocolates, exporting
80 per cent of its confectionery to Australia and Asia.
The move is part of a restructuring that includes closing the Cadbury factory
in Auckland, another one in Australia, and a new factory in Thailand now making
Minties and other chewy lollies.
Once all the changes have been implemented, 265 jobs will have been lost in New
Zealand.
The Aussie-made bars and lollies will be on New Zealand shelves within six months,
depending on retailers' stockpiles.
The Thai-made lollies are already on shelves.
Cadbury New Zealand managing director Matthew Oldham said the decision had been
signalled two years ago.
"But until it happens it doesn't crystallise in people's minds. It doesn't make
sense to have factories in New Zealand making hundreds of lines and factories
in Australia that make similar lines but also have equipment up for replacement.
"The future of manufacturing is to have modern factories that can compete globally."
The Dunedin Cadbury factory, which has had about $70 million in upgrades, will
specialise in assorted boxed chocolates such as Roses and Milk Tray, which will
sell in the Australian market. It will also make marshmallow-type chocolate products,
like the Pinky and chocolate fish, and favourites including Jaffas and Pineapple
Lumps.
Dunedin will also specialise in "crumb", the sugary chocolate-base made with
New Zealand milk.
More at www.stuff.co.nz.
 Griffin's
moves some biscuit production to Fiji (22 Nov 09)
Some of the nation's favourite biscuits are no longer true Kiwi institutions, with Griffin's outsourcing some of its production to Fiji after more than 140 years of New Zealand manufacture.
Griffin's came clean about the biscuits' origins after The Dominion Post asked why the "Buy New Zealand Made" logo had disappeared from some biscuit packets.
The company confirmed "some production" of cream biscuits had been outsourced since November. A spokesman said this was because demands had exceeded the Auckland factory's production capacity.
Griffin's would not disclose which biscuits had been outsourced, or what proportion of production.
It said the recipe had not changed and the company did not believe the political situation in Fiji would affect the company.
The "Buy New Zealand Made" logo has gone from the cream biscuit range – which
includes Cameo Cremes, Belgian Cremes, Lemon Treats, Melting Moments and Swiss
Cremes and accounts for 2.5 per cent of Griffin's' total biscuit production.
The firm closed its Lower Hutt factory – with 228 job losses – last December, and relocated production to Auckland. It has been owned since 2006 by Australian-based Pacific Equity Partners, which also owns the Hoyts Group and Tegel Foods.
More at www.stuff.co.nz.
 Fonterra
exits UK butter market (21 Nov 09)
Fonterra is getting out of the business that was the cornerstone of New Zealand's
multibillion-dollar dairy industry - the British butter market. Eight years after
Fonterra cut a deal with one of its biggest competitors in
Europe, Arla
Foods, for a joint venture in the European butter and margarine markets,
it is handing its share to its former rival. Fonterra has sold its 25 per cent
stake in Arla Foods Fonterra (AFF), to Arla Foods of Denmark. In essence, the
farmer co-operative thinks it can make more money boosting its value-added ingredients
sales and regional consumer businesses in Asia, Africa and the Middle East, Australasia,
and Latin America. Fonterra will continue to license the Anchor brand to Arla
and to supply New Zealand butter. Mason did not disclose how much Fonterra has
been paid for the stake, but said it would have a positive effect on the balance
sheet.
AFF was established in 2002 to market "block" butter, spreads and aerosol cream
products in Britain. New Zealand's dairy exports were built on butter and cheese
sent to Britain, with Anchor becoming one of that country's most popular brands.
But by the time Fonterra took over exports in 2001, 40 per cent of New Zealand
butter going to Europe was being shipped to the continent - outside the traditional
market in Britain.
More at NZ
Herald.
 Cadbury
- another Minties moment? (17 Nov 09)
Cadbury has gone and messed with another Kiwi classic.
The recipe for Minties has been changed to what many consumers
say is a softer, less minty version.
Not only that, production of the iconic lolly was moved to Thailand in August
along with other old-man favourites: Mint Imperials and Curiously Strong Mints.
Minties have a long and proud history in New Zealand with their "It's moments
like these" marketing
campaign a national favourite.
Daniel Ellis, spokesman for Cadbury Australia and New Zealand, said the company
had received a number of complaints over the years about how hard Minties were
to bite.
In response Minties had been made softer to bite so they were easier to chew.
Mr Ellis said the move to off-shore Minties manufacture was part of a move towards
specialist manufacturing centres of excellence.
Other iconic lollies like Pineapple Lumps and Jaffas will continue to be made
in New Zealand, he said. The change to Minties came just weeks after Cadbury
was forced to backtrack on a disastrous attempt to add palm oil to its famous
dairy milk chocolate recipe.
In September last year there was a similar uproar when the iconic Snifter lolly
was axed by the company at the same time as Tangy Fruits and Sparkles got the
boot.
In July Cadbury was voted New Zealand's most trusted brand for the sixth year
in a row.
More at www.stuff.co.nz.
Kiwifruit
processing giant set to expand (16 Nov 09)
A kiwifruit industry behemoth has the all clear to expand adding a further 5
million trays to its production schedule. Seeka Kiwifruit Industries plans
to buy Mt Maunganui-based kiwifruit and avocado packing and coolstore company
Te
Awanui Huka Pak in a $24 million shares and cash deal. Te Awanui Huka Pak is
set to amalgamate with Seeka-owned Kiwi Coast Growers at a shareholders meeting
on November 23.
Te Puke-based Seeka already handles about 20% of New Zealand’s kiwifruit harvest
and through its network of growers produces about 10% of the crop. Seeka chief
executive Michael Franks said the deal would be unconditional on Friday and then
he would reveal the strategy behind the move. Te Awanui Huka Pak markets some
of its own branded kiwifruit with collaborative licences through Zespri to India,
Malaysia, Indonesia
and North America.
More at National Business Review.
Goodman
Fielder to sell fats & oils business (16 Nov 09)
Food manufacturer Goodman Fielder may announce the sale of its commercial edible fats and oils business this week, the Australian
Financial Review reported.
AFR said today Goodman was on track to sell the business, which processes edible fats and oils and supplies food manufacturers and wholesalers, for between A$200 million and A$300m ($251.4m and $377.3m).
The unit's book value is A$145m.
Goodman formally put the business on the block in May, appointing Citigroup as adviser, saying it wanted to increase its focus on the manufacturing and marketing of branded consumer food products.
The AFR said potential buyers included US agri-products group Cargill, Dubai-based consumer food group IFFCO, Olam International, CTG Wilmar and Peerless Foods.
Funds raised through the sale are likely to be used to reduce Goodman's A$1.1b debt.
The AFR said an announcement was likely before Goodman's annual meeting, scheduled for this Thursday in Melbourne.
More at www.stuff.co.nz.
 Delegat's
rips out champion vines (13 Nov 09)
While other wine companies are retrenching, Delegat's is buying vineyards in
the premium Gimblett Gravels area of Hawke's Bay.
It has just bought the 12-hectare (30-acre) vineyard of Balthazar Estate, whose Syrah
Gimblett Road 2007 was named champion wine of the Hawke's Bay awards last
month.
"We've pulled out all those vines," company chief Jim Delegat said
yesterday. "We're redeveloping it into merlot, with new clones and rootstocks."
Delegat's has also bought two vineyards from Sacred Hill and the Hatton Estate
vineyard from Te Kairanga. "They are small purchases individually but together
it is significant," Mr Delegat said.
"We now have about 100ha in the Gimblett Gravels, and we have a $20 million expansion
programme nationally."
The total area of the Gravels is about 800ha.
Although Delegat's does not have a particularly high profile in New Zealand,
it is a successful exporter, especially with its Oyster Bay brand. Oyster Bay
sauvignon blanc, from Marlborough, is the biggest-selling wine in Australia.
The Gimblett Gravels acquisitions are mainly for Oyster Bay Merlot,
a blend from
different parts of Hawke's Bay that sells in large quantities overseas.
The editor of New Zealand WineGrower magazine, Terry Dunleavy, said he expected
to see more small wineries selling out to the bigger companies.
More at www.stuff.co.nz.
 Bio-tech
firm sees chance for fruitful float (10 Nov 09)
Hamilton-based bio-technology company BioVittoria is hoping investors will see a sweet opportunity in its sharemarket float.
The six-year old business yesterday released details of a $20 million initial public offer which will list on the NZX on December 2.
The company produces a natural no-calorie alternative to sugar called PureLo® from
a fruit called Luo Han which is grown only in China.
It wants the money to buy more fruit, pay debt and expand its business into the
United States where it is hoping to gain interest from big food and beverage
companies.
The initial public offer closes on November 25.
Founded in 2003 by former HortResearch scientist Garth Smith and American businessman
Stephen LeFebvre, the company has the backing of venture capital firm Endeavour
Capital, the New Zealand Venture Investment Fund, ACC and Sir Stephen Tindall's
K1W1 fund.
BioVittoria had raised US$7.5 million from Kiwi investors last year to set up
a factory in Guilin and now it had its supply chain established the company was
ready to take advantage of a trend for alternatives to sugar.
Thorrold said the business already had its sweetener in food produced by Pepsi,
Kelloggs and Nestle and estimated the world sweetener market was worth US$50
billion ($68 billion).
It was hoping to gain FDA approval in the United States in February which would
help open more doors into the food and beverage industry, he said.
More at NZ
Herald.
 Cedenco
in receivership (9 Nov 09)
US-owned Hawkes Bay fruit and vegetable processor Cedenco Foods is in receivership and is likely to be sold.
Michael Stiassny and Brendon Gibson of KordaMetha were appointed as receivers.
In May, Cedenco’s parent company, SK Foods LP in the United States, was preparing to start voluntary Chapter 11 bankruptcy.
Mr Gibson said while the business would be sold it was continuing to operate with the support of funding from ANZ National.
“Growers who have planted crops for Cedenco should also be reassured there is funding to enable Cedenco Foods to purchase those crops,” the receivers said in a release this morning.
ANZ has also appointed receives into SK Foods Australia, Cedenco JV Australia and SS Farmers Australia.
Cedenco has the largest tomato processing factory in the Southern Hemisphere in Echuca in Victoria. It is one of New Zealand's biggest vegetable processors, with two Gisborne factories, a processing plant at Whakatu in Hawke's Bay and a business in Ohakune.
In the United States, two former SK Foods executives are facing federal price fixing charges in relation to tomato products.
More at National
Business Review.
Fonterra
hikes forecast payout (9 Nov 09)
Dairy cooperative Fonterra has increased its forecast payout by 95 cents to $6.05
per
kg of milk solids.
This is a significant rise from the $5.10 per kg announced in September.
Fonterra chairman Sir Henry van der Heyden said the higher forecast reflected
the cooperative's increasing confidence around the recent gains in international
dairy prices.
That was despite the recovery in consumer demand and the global economic situation
remaining relatively fragile.
The improvement in global dairy markets reinforced that dairying was in good
heart with sound long-term prospects, both for Fonterra shareholders and the
broader New Zealand economy, Sir Henry said.
But he also cautioned that the size of the rise in the payout forecast showed
how much volatility was in the market.
"It's heading in the right direction and we're making the most of the opportunities
for our farmers. But, we also know there's a risk of rapidly rising prices potentially
bringing on more milk from other countries. We saw this happen in 2007 and we
saw how quickly the market can fall as a result," Sir Henry said.
Fonterra chief executive Andrew Ferrier said improving market conditions for
dairy commodities had been reflected in recent trading events on Fonterra's globalDairyTrade
online platform, which in the last financial year accounted for about 10 per
cent of Fonterra's sales.
More at NZ
Herald.
Prices
up 13pc in Fonterra auction (4 Nov 09)
Dairy farmers are looking forward to a happier New Year after 2010 prices lifted an average of 13.7 percent in Fonterra's latest monthly online dairy auction to $US3437 ($NZ4775) a tonne, up from $US3022/tonne a month ago.
The average prices paid at the globaldairytrade auction have
now lifted 87.9 percent over four months, with the compounding effect of lifts
of 25.8 percent (August), 24.2 percent (September), 5.7 percent (October), and
13.7 percent (November).
But the price is still markedly down on the record levels of nearly $US5000/tonne
which whole milkpowder (WMP) fetched on spot markets in 2007, until they plunged
15 months ago.
For regular WMP, the winning bids were $US3345 (from NZ ports) and $US3270 (from
Australian ports), while instant powder rose to $US3395 (NZ) and $US3320, and
UHT powder hit $US3420 (NZ).
February-April 2010, prices lifted 12.8 percent to $US3393/tonne, and for May
to July, it rose 20.8 percent to $US3684.
Fonterra started auctioning WMP in July last year .
Fonterra today introduced a new product to the auctions, anhydrous milkfat (AMF)
- effectively industrial-grade butter - which fetched prices of $US4809 (January)
$US4728 (February-April) and $US4735 (May-July).
More at www.stuff.co.nz.
 Fonterra
to boost Malaysian output (29 Oct 09)
Fonterra plans to more than double its production capacity for cultured products in Malaysia to about 20,000 tonnes a year.
Fonterra Brands (M) Sdn Bhd has spent 25 million Malaysian ringgit (NZ$9.8m) upgrading its plant there, general manager John
McKay said in Kuala Lumpur.
"We expect to [increase] production capacity to about 20,000 tonnes of cultured products," he said at the opening ceremony for the plant.
The upgrade has added a second line for cultured milk drink packing, form-fill-seal yoghurt packing and coolstore expansion.
Mr McKay said he expected the cultured dairy market to contribute 17 per cent to Fonterra Brands Malaysia's turnover next year as it targeted double- digit business growth.
The overall dairy market in Malaysia is expected to continue expanding at an annual growth rate of 4 per cent to 5 per cent.
Fonterra Brands is the largest dairy supplier in Malaysia, with a 64 per cent market share. It regards Malaysia as a key test market for Southeast Asia.
Fonterra Brands Malaysia recorded a turnover of 500m ringgit in the year to July 31.
More at www.stuff.co.nz
 Malaysia
trade deal boost for kiwifruit, dairy (27 Oct 09)
John Key says the signing of a free trade deal with Malaysia is another vital
move towards a "step change" for the New Zealand economy.
The agreement, signed in Kuala Lumpur yesterday, will boost
New Zealand's kiwifruit industry, provide a bigger market for liquid milk exports
and open further the door to the Malaysian market for the providers of educational
services from New Zealand.
The Malaysian deal builds on the free trade agreement that New Zealand and Australia
jointly signed this year with the 10 countries of the Association of South-east
Asian Nations (Asean).
"Ninety-five per cent of goods will be immediately duty-free, and within seven
years to all intents and purposes tariffs will be phased out," said Mr Key
"From New Zealand's point of view this is a fast-growing market - it's a billion-dollar
market, but it's expanded by 80 per cent in the last four to five years."
.
Zespri, which exports $8 million of kiwifruit to Malaysia each year and has increased
sales by more than 80 per cent in the past two years, expects a renewed surge
when the 15 per cent tariff is removed.
Zespri's kiwifruit are available throughout Malaysia in large supermarket chains.
"We're aiming to sell more than one million trays through out local distribution
partners next year," said Zespri chief executive Lain Jager. "It's one of our
most important markets."
While in Malaysia the Prime Minister also opened a $12 million extension to
Fonterra's
Dairymas
cultured foods plant.
More at NZ
Herald.
 Fresh
new lids for No.1 yoghurt (22 Oct 09)
New Zealand’s number one yoghurt brand Fresh ‘n Fruity has been given a fresh
new look with lids supplied by Chadwicks.
Leading heat-seal pre-cut lid manufacturer, Chadwicks has created a new range
of lids for Fonterra’s Fresh ‘n Fruity range of yoghurts.
The 118mm square lids were printed four colour flexographic on lacquered aluminium
and heat sealed to singular polystyrene tubs.
Research by the marketing team at Fonterra revealed that the key purchase drivers
to the category were ‘full of fruit’, naturalness, freshness and a variety.
Emma Dunstone, Senior Brand Manager for the Fresh ‘n Fruity range, said: “We
wanted to give the range a fresh new look to differentiate the brand in the market
place and enhance the key purchase drivers. We now have a pack which reflects
the great tasting product inside.
“We were impressed by Chadwick’s experience in this sector and felt they were
best placed create the perfect packaging solution for our new look.”
John Savage, Business Development Manager at Chadwicks in Australia and New Zealand,
commented: “We are renowned as the leading supplier of pre-cut lids in many international
markets because of our record of quality, innovation and ability to produce exactly
what our vast array of customers want.
“The Fresh ‘n Fruity range was a great project for us to be involved with as
it is such a well-known brand in New Zealand. We’re really pleased with how the
lids have turned out as they offer a quality practical solution for Fonterra,
as well being able to carry the design of the revived brand.”
The range comes in an assortment of flavours including simply strawberry, strawberry
cream thick ‘n creamy, mango passion lite, greek style along with a new range
called Fresh ‘n Fruity Superfruits™.
Chadwicks is part of the Flexible Packaging Division of the Clondalkin Group
which has more than 40 manufacturing sites located across Europe and North America. www.chadwicks-lids.com .
 Frucor
moves Arano plant to Hawke's Bay (20 Oct 09)
Frucor Beverages Ltd is moving its Auckland based juice business, Arano, to the
Simply Squeezed production plant in Hawke’s Bay.
Frucor, which Japanese beverage giant Suntory paid more than $1.4 million for
earlier this year, bought Simply Squeezed in July, adding it to its Fresh Up,
Just Juice, V, Frank and Mizone lines.
Chief executive Carl Bergstrom said company would keep both
Arano and Simply Squeezed brands, but move Arano to the much larger Hawke's Bay
plant, in a “reasonably material” cost saving on the Arano products.
No more than eight people at the Kumeu-based Arano plant would be affected, he
said.
Mr Bergstrom said the move made good sense. “They’re making the same sorts of
products and they’re located closer to where most of the oranges come from.”
While he said the Arano brand would by and large remain in tact, the company
would trim back any products that overlapped, including its tomato juice.
“They are pretty minor products at the moment,” he said.
Any re-branding necessary (to remove references to Kumeu) would
be minimal.
“The rebranding was around the premiumisation of the Arano brand and a big part
of it was around the Arano ‘white label’ – including the 100% squeezed orange
juice and the specific varietal of Gisbourne/Kerikeri Valencia orange juice.
“It’s just as good a story, if not better [if production is closer to the source.]”
More at National
Business Review.
 Avocado
industry set for $20m boost (20 Oct 09)
A new food preserving technology is set to double the shelf-life of avocados,
create up to 80 new jobs and boost New Zealand’s annual exports by 20 million
dollars.
Kiwi owned Fressure Foods plans to import Ultra High Pressure
(UHP) processing technology which is used in more than 50 countries to increase
the shelf life of locally grown avocados.
Fressure Foods CEO Vern Dark says avocados usually last around
30 days but with the new technology his company will be able to extend this to
60 days, increasing local supply and export revenue.
Dark says Ultra High Pressure treatment is also known as cold pasteurisation
and uses pressures of up to 87,000 psi to shock and kill bacteria in food products.
“The UHP system uses no chemicals or preservatives and does not affect the texture,
flavour, consistency or nutrients in the food. It has also been recognized by
the U.S Food and Drug Administration (FDA),” says Dark.
Environmentally friendly the process causes no emissions and consumes less energy
than thermal pasteurisation, he says.
Dark says the Fressure Foods processing plant will be based in Pukekohe and if
given the green light by the avocado industry could create up to 80 new jobs
in its first year.
The company is in talks with industry stalwarts as it looks for additional investment
towards the $15 million dollars needed to open the factory.
“We believe this technology can have a huge influence on the New Zealand avocado
industry. Ultra high pressure treatment has driven up total consumption of avocados
in the United States and we are hoping for an equally favourable outcome in
our target markets,” he says.
The company already has plans to export to Australia, South East Asia and Japan.
Dark says UHP technology has also made it possible for Fressure Foods to look
further afield at previously inaccessible markets including the United Kingdom
for export opportunities.
Dark says that other food product groups which are in oversupply can also benefit
from the UHP technology including; passionfruit, mandarins and feijoas. www.fressurefoods.com
 Vineyards
target United States (19 Oct 09)
A group of top wineries is joining forces with NZ Trade and Enterprise to target
the "ultra-premium" American wine market.
Despite the United States being the biggest wine market in the world, it is only New Zealand's third largest export customer.
Americans do not see New Zealand as a producer of top-shelf wine.
The High-End Initiative has been driven by chairman Steve Smith,
also managing director of Hawke's Bay winery Craggy Range, whose idea it was
to approach NZTE. Fellow Hawke's Bay winery Trinity Hill is also involved.
Steve Green, owner of Central Otago winery Carrick, is one of
the directors of the group. He said the first stage had been to conduct research,
which showed that while New Zealand had a good reputation in the United States
it was not seen as a country that produced higher-value, high-quality wines.
The next step has been to approach wineries and assess those which had wines
fitting the profile.
Chris Yorke, marketing manager for New Zealand Winegrowers, said the wine industry
did not generally get government funding and the industry body's marketing budget
was only $5 million.
"What this is doing is actually putting a much stronger focus over and above what we could ever afford to do ourselves."
It was about creating a buzz around New Zealand wine among the wine elite of the US, targeting top restaurants, hotels, retailers and wine writers.
More at NZ
Herald.
 NZ’s
first ever vanilla harvest underway (15 Oct 09)
They said it couldn’t be grown in New Zealand but a Tauranga company has proved
them wrong.
It’s the world’s first vanilla harvest grown outside of the tropics and it’s
currently underway in the Bay of Plenty.
For independent, family owned (and run) Heilala Vanilla, it is the culmination
of a dream stretching back five years.
Heilala Vanilla is a product of the Reunion Food company. Owners and New Zealand
nationals John Ross, daughter Jennifer Boggiss and her husband Garth
Boggissfounded their business as an aid project in Tonga.
The Tauranga operation was established primarily as an R&D site they could access
24/7 when not in the islands. Now they are harvesting the world’s first organically-grown
vanilla outside the tropics.
Typically vanilla is grown only in countries that fall in to a narrow 20 degree
band either side of the equator. It is a commodity, typically traded like oil
or gold.
However, the Heilala Vanilla operation is the first to control the entire food
chain – from growing through drying to manufacturing and marketing value-added
products.
For Garth Boggiss it has been a long and testing road to producing vanilla in
New Zealand.
“Our Tongan operation has provided us with the knowledge for growing vanilla
the year round,” he says. “In New Zealand, we duplicated the key characteristics
of the climate in our Tongan shade house and designed and built a computer controlled
plastic house that emulates this environment.
“In fact we have optimised the environment based on our research into the requirements
of the vanilla plant and the results have been fantastic.”
Heilala Vanilla was meticulous in its duplication of Tongan conditions right
down to matching the soil and introducing computer-controlled humidity and heating
using geo-thermal hot water.
“Volcanic vanilla,” says Garth, “using renewable resources. Only in New Zealand.”
Vanilla is the only fruit-bearing member of the orchid family. The large orchid
plants bear a small creamy / yellow flower and on the day of opening the flower
must be hand pollinated.
Around nine months later a fully grown green bean is ready. This green bean then
undergoes a complex drying and curing process where the flavour develops and
the pod turns dark brown-black. It is the most labour intensive agricultural
product in the world.
Heilala Vanilla is premium quality and organically grown. It will take approximately
three months to harvest the 600 vanilla plants at the Tauranga facility.
Tongan production is already exported to Australia, Singapore and Malaysia and
Reunion is about to finalise distribution in the UK and California. There is
also interest from Japan.
It is renowned among chefs both in New Zealand and overseas. Heilala Vanilla
products feature on menus prepared by Peter Gordon in the UK and Jason Dell,
formerly of Blanket Bay Lodge now in Singapore heading the Nautilus project.
It is also a staple in highly rated restaurants The European, Cutler and Co,
Jonahs and Aqua Dining in Melbourne and Sydney and The French Café and Antoine’s
in Auckland.
 Mad
Butcher sells sausage division to Tegel (13 Oct 09)
The Mad Butcher Group has sold its sausage company to Tegel Foods.
Mad Butcher chief executive Mike Morton said the sale, unconditional from November 1, was for an undisclosed sum but included the manufacturing plant, capable of producing 80 tonnes of sausages a week.
"Basically, the sausage company was limited in it's growth potential," Mr Morton said. "We had constraints on the factory reaching its full capability. It needs a capital investment to get it to the next level."
A supply agreement had been reached "at a price that's suitable to both parties" but
Mr Morton said Tegel would be looking to grow the business.
The company was about to open three new stores and was looking at other opportunities
as sites have become more readily available in the economic downturn, he said.
The 30 to 35 factory staff would be offered re-employment with Tegel, he said.
A Tegel spokesperson could not be reached this afternoon. More at National
Business Review.
 Dairy
futures gain support (13 Oct 09)
The new dairy futures market planned by stock exchange operator NZX is
getting a warm reception.
Over the next three weeks, NZX will receive and consider submissions to newly
released consultation papers about the regulation and operation of the derivatives
market, which will be launched with wholemilk powder trading and expand over
time into other commodities.
NZX head of traded products Fiona MacKenzie said the bourse had conducted a thorough
pre-consultative programme with the Securities Commission, potential participants
and derivative market specialists and expected a thoughtful, rather than a quick,
response.
The futures market launch date has yet to be announced. NZX will only say equity
options, index futures and dairy commodity derivative products will be offered
in phases over the coming year.
More at NZ
Herald.
Milkpowder
price up 5.7pc in Fonterra auction (7 Oct 09)
Bidding in Fonterra's latest monthly online auction of whole milkpowder early
today lifted the average price paid by 5.7 percent to $US3022/tonne ($NZ4186/tonne).
The price paid at the globaldairytrade auction had previously
jumped 50 percent in two months.
In the first contract period, for December delivery, the per-tonne prices set
for regular powder were $US3050 (from New Zealand ports) and $US2825 (from Australian
ports), while instant powder rose to $US3100 (NZ) and $US2875, and UHT powder
hit $US3125 (NZ).
The average price for December delivery rose 5.1 percent to $US3019.
January-March 2010, prices lifted 5.7 percent to $US3008/tonne, and for April
to June, it rose 6.7 percent again to $US3052.
Fonterra started auctioning whole milk powder in July last year.
According to the ANZ bank's commodity price index, world prices for a basket
of most of New Zealand's export commodities soared 6.8 percent last month, its
steepest rise in 22 years, with dairy products making up 40 percent
of
the
total.
More at www.stuff.co.nz.
New
Edendale milk dryer 'world's biggest' (1 Oct 09)
A new $212 million milk dryer commissioned this week at Fonterra's Edendale
site in Southland creates about 40 new jobs and makes the
Edendale dairy factory the biggest raw
milk processing plant in the world, according to Fonterra.
The new dryer, called ED4, is the world's largest and most efficient
milk dryer, capable of producing 35 shipping containers full of milk powder every
day, the
co-operative said.
The dryer has the capacity to turn 100 litres of milk into 10 kilograms of milk
powder every second, and can produce more than 700 tonnes of milk powder a day.
Standing 56m tall, this will be the largest milk powder tower in the world, with
a total floor area of 6,176m2 and total volume of 61,833m3.
Complete with state of the art equipment, the plant will eventually be operated
by only three people. The project was approved in January 2008, with construction
starting in June
last year.
Up to 550 tradesmen were working on the site at the peak of construction.
An extra 40 permanent staff have been employed on the site because of the expansion.
Along with whole, skim and buttermilk powders, the Edendale factory produces
about 15,000 tonnes of cheddar cheese for markets in Japan, the Middle East and
the Philippines, refined and edible-grade lactose, whey cheese, casein, anhydrous
milk fat and whey protein concentrate.
The cooperative is due to take ownership of the $212 million plant on October
8, according to Fonterra's Edendale site operations manager Keith Mason.
China
free trade deal delivers for food sector (1 Oct 09)
A year ago today New Zealand's free trade agreement with China came into effect.
The results so far show it to be a big success, says New Zealand Trade and Enterprise's general manager for North Asia, Rod
McKenzie.
New Zealand exports to China climbed to more than $3.3 billion in the year to June 30 - an increase of 61 per cent on the previous year.
Demand for food and beverage products had fuelled that boom, a sector which had further potential for growth, McKenzie said.
Dairy products including milk powder and infant formula recorded double- or triple-digit growth.
"There wouldn't be any other geographic market in the world where we were doing as well at the moment."
He said the Chinese focused on eating specific foods for health benefits, so products such as manuka honey could be successful.
"That's clearly an area where New Zealand is seen as having a competitive advantage and I think we could make a lot more of that."
A renewed focus on food safety in China has opened up opportunities for New Zealand food products and supply chain expertise.
"That is changing the face of China as a consumer of goods. They've still got to import food, they can't feed themselves, but they're being much more stringent about what they're bringing in and how it's tested," said
McKenzie.
More at NZ
Herald.
Fonterra unveils annual result, confirms $5.20 payout (23 Sep 09)
Fonterra has today announced its annual result for the past year, confirming
a farmer payout of $5.20 per kg of milksolids.
The payout, which is line with recent forecasts, is made up of a milk price of
$4.72 and a 'value return' payment of 48 cents.
Distributable profit for the co-operative was $603 million, equating to 49 cents
per kg.
The result comes a day after Fonterra announced a 13 per cent increase in their
payout forecast for this current season - a boost that should inject $700 million
into the economy.
It revealed a 55c/kg of milksolids increase in its 2009-10 payout forecast to
$5.10/kg.
For the average production farmer this meant a $65,450 increase in income this
season with advances starting next month, said Fonterra.
Profit before tax was $542 million, compared with $247 million in 2007/08. Profit
after tax was $433 million, up 47 per cent on the previous period.
The profit available for distribution to shareholders was $603 million ($364
million in 2007/08), from which $12 million was retained.
This means that $591 million ($87 million) will be paid out to shareholders via
the 'value return' payment.
Chairman Henry van der Heyden said the business challenges and market volatility
faced by Fonterra during the year were "probably unique in the lifetimes of anyone
involved in dairying today".
More at NZ
Herald.
Fonterra lifts payout forecast (22 Sep 09)
Fonterra Cooperative Group, the world’s largest exporter of dairy products,
raised its forecast 2010 milk payment, citing an improved outlook for global
prices.
The cooperative raised its expected milk price payment by 60 cents to $4.60,
while trimming its value return payment, or distributable profit, by 5 cents
to 50 cents per kilogram of milk solids.
The net increase is 55 cents to a higher-than-expected $5.10.
"What we're seeing in the international market is the firming of a trend, with
a more positive sentiment and stronger demand, producing better pricing across
the board," said chief executive Andrew
Ferrier.
"Whole milk powder prices have been leading the way, with the prices for other
dairy commodities now all moving in the right direction."
Prices have surged 55 percent in Fonterra's last two monthly online milk powder
auctions, helping extend a resurgence after a tumble through late last year and
early 2009.
Fonterra last week announced plans to raise more equity from its farmers and
stabilise its balance sheet.
The three-stage plan will allow farmers to hold shares up to 120 percent of the
production, allow them to trade the stock among themselves an eventually see
Fonterra exit its role in buying and redeeming the securities.
Fonterra is due to post its annual results tomorrow. More at www.stuff.co.nz.
 Fonterra
payout boost predicted (21 Sep 09)
Booming prices for casein and anhydrous milkfat could offset sagging milkpowder
prices to push Fonterra's payout up a further 20 cents to $4.85 per kilogram
of milksolids, says NZX Agrifax in an updated forecast.
"The NZX Agrifax weighted average price of dairy commodities bottomed out in early July at US$2290 a tonne, but since soared 37 percent over the past three months, to currently sit at US$3130 a tonne," said analyst Phil
van Polanen in a statement.
AMF prices jumped 13 percent last week, having risen from a low of US$1850 a
tonne in March to US$3100 a tonne now. Likewise, casein prices had risen from
US$5500 a tonne to US$6700 a tonne and may breach US$7000, Agrifax said.
The dark cloud is wholemilk powder, which shows some signs of easing in the October
6 Fonterra globalDairyTrade auction on October 6.
More at www.stuff.co.nz.
 Police
look into sludge spill at dairy plant (21 Sep 09)
Police are investigating whether a toxic spill at a cheese factory was deliberately caused by striking workers locked out after a pay disagreement.
Environmental ponds overflowed at the Open Country cheese plant at Waharoa on Friday night and poured into the Waitoa River.
Thirty-six workers have been locked out after walking off the job on Wednesday night over a pay and contracts dispute.
The Dairy Workers Union has accused the factory of employing untrained staff, leading to the environmental damage.
But Open Country chief executive officer Mark Fankhauser said the coincidence of the incident with the strike led him to believe the spill might have been intentionally caused by a striking worker.
"My view, and clearly I'm speculating, is that I suspect it wasn't done by any people that were legitimately on site," he said.
"It is subject to investigation, but in order to do what was done it would require detailed knowledge of the particular work area."
He said the area where the spill occurred was outside the factory and was not
manned at night.
Environment Waikato group manager of resource use Chris McClay said the spill
was an offence under the Resource Management Act, and if it were deemed serious
enough, they would need to investigate who was liable for
it.
The sludge overflow had been dealt with adequately by the company, said Mr McLay,
and there was only asmall threat to aquatic life in the area. More at NZ
Herald.
 New
Zealand wine exports pass $1 billion milestone (16 Sep 09)
New Zealand Winegrowers is pleased to announce the wine industry has achieved its milestone of $1 billion in exports, a year ahead of schedule.
Chief executive of New Zealand Winegrowers, Philip Gregan, said the industry exported $1.01 billion of wine in the year to 31 July 2009, according to Statistics New Zealand. $1 billion in wine exports is the equivalent of five bottles per second.
“The phenomenal long-term growth of New Zealand wine exports has been based on a industry-wide commitment to world class quality, in our vineyards, in our wineries and in our marketing and sales efforts.”
A 2009 report from New Zealand Institute of Economic Research showed wine exports have grown at a compound rate of nearly 24% (23.8%) each year for the past 20 years, four times the growth rate for all goods exports.
Wine exports represent 2.2% of total goods exports and the industry supports 16,500 full-time jobs. The industry contributes more than $1.5 billion to New Zealand’s GDP.
“The wine industry has grown to become an important and internationally-competitive part of the New Zealand economy.
“New Zealand wine still has enormous opportunity globally with strong demand from key markets, notably Australia, the United Kingdom and the United States, as well as increasingly from Asian and continental European markets.
“We thank all those in the industry and in New Zealand who have worked tirelessly to help build such a strong reputation for New Zealand wine locally and internationally,” Mr Gregan said. “Their ongoing commitment to New Zealand wine will be required for us to achieve further milestones in the future.”
Govt
to impose 10c margin on Fonterra milk to independents (15 Sep 09)
Fonterra Cooperative Group will be able to charge a margin of 10 cents a kilogram
over and above the farm gate price for milk it sells to independent dairy companies.
The new formula for so-called regulated milk is to take effect in the 2010/11
season, according to a statement from Agriculture Minister David Carter.
The requirement to supply a capped amount of milk to rivals was put in place
when Fonterra was created from the merger of New Zealand's two biggest dairy
cooperatives.
The amendment applies to the wholesale or 'default' pricing formula used to determine
how much independents pay for milk that Fonterra is obliged to sell them under
the Dairy Industry Restructuring Act.
"A 2008 review found that for five of the last six seasons, independent processors
have been able to access milk under the regulations at a lower price than Fonterra
pays its own farmers," Carter said. "This was never the intention of the regulations."
To provide for the change, a bill will be introduced to the House before June
a next year, in time for the start of the season.
More at www.stuff.co.nz.
 Nutrition
expert to speak at Juice & Beverage Conference (15 Sep 09)
World-renowned nutrion expert Julian Mellentin has been announced
as a keynote speaker at
the NZ Juice & Beverage Association Annual Conference this year,
"A Splash of Orange - Rotorua 2009", to be held at the Lakeside
Novotel Rotorua,
1-3 October.
Julian
is
the
Executive
Director
of
New
Nutrition
Business,
a London-based research, publishing and consulting company which specialises
in
researching,
analysing and forecasting developments in the business of food, nutrition and
health around the world. He is currently one of the world's few international
specialists in the business of food, nutrition and health. Julian has spent many
years as a food industry analyst and consultant and each year identifies 10 key
trends in food,
health and nutrition. He is co-author of Functional Foods
Revolution, Healthy People, Healthy Profits? - The first-ever
book on the business of functional foods, as well as the editor-in-chief
of Kids Nutrition Report, the only industry journal
in the world on the rapidly developing kids' nutritional marketplace. Conference
details and registration at www.nzjba.org.nz/conference.asp.
Giant
sweet offer could affect NZ (9 Sep 09)
Global food giant Kraft is trying to gobble up chocolate company Cadbury in a
$24.6 billion deal.
This includes Cadbury's New Zealand business selling local favourites such as
Minties, Pineapple Lumps and Moro bars.
The Kiwiana sweet brands are expected to continue, even if Kraft buys Cadbury,
although unions hold some fears for Cadbury's 880 staff in New Zealand, with
a factory in Dunedin.
Council of Trade Unions economist Bill Rosenberg said it was always a concern
in international "rationalisations" that production could be shifted overseas,
although a food sector analyst doubts job losses would occur in New Zealand.
The factory employs about 500 permanent staff and 100 seasonal workers. It laid
off about 75 staff in the past year, with about the same number to go by the
end of this year. A $51 million investment in the Dunedin factory, announced
by Cadbury last year, secured the future of the plant under its present owners.
Cadbury's roots in Dunedin date back to the 1880s and it is now one of the two
dominant chocolate and sweet companies in New Zealand, with annual sales of $283m.
Kraft brands include Vegemite and Toblerone chocolate, but its sales are relatively
small here at just $21m.
(Kraft used to make another New Zealand favourite Chesdale cheese but that is
now owned by Goodman Fielder.)
More at The
Dominion Post.
 Kaimai
Cheese buys Te Mata (7 Sep 09)
Matamata-based cheese factory Kaimai Cheese has bought Te Mata Cheese factory
in Hawke’s Bay for an undisclosed sum.
Kaimai general manager Sheryn Cook said the company acquired
all Te Mata assets effective from September 1.
“It will be pretty much business as usual [at Te Mata] for at least the next
three months until we see how it might work,” she said.
Ms Cook said that while Te Mata produced slightly more volume than Kaimai, it
was located on a much smaller site with a staff of around 30 people.
Kaimai and The Grate Kiwi
Cheese Company both have close ties to Open Country Dairy, which was formed out
of the merger of Open Country Cheese and Dairy Trust, and is a direct Fonterra
competitor.
A Ministry of Agriculture and Forestry (MAF) report in July noted that privately
owned dairy factories were gaining ground, with companies such as Nutritek, Open
Country, Grate Kiwi and Kaimai Cheese, actively competing against Fonterra. Privately
owned manufacturers collected 4 percent of milksolids in the year to May 31,
compared with virtually nil in 2004.
Ms Cook said Kaimai, which exports its award-winning cheeses to the Pacific Islands,
New Caledonia and Asia, would remain the company’s only registered export site.
More at National
Business Review.
Fonterra
about to announce reform plan (2 Sep 09)
Dairy giant Fonterra is expected to unveil its second proposal for capital structure
reform within days as the threat to its world-beating exporter status gathers
pace in rival dairying countries.
Fonterra, with revenue of $19 billion last year, is a co-operative owned by farmers
through redeemable shares. To advance its global growth ambitions and stabilise
its balance sheet against shocks such as drought, Fonterra needs more capital.
A proposal by directors last year, which involved forming a company outside the
co-operative with publicly listed shares, was rejected by Fonterra's 7000 farmer
owners who feared loss of control and ownership.
Farmer reaction to the second attempt by directors to muscle up Fonterra's balance
sheet will determine if it stays a smallish co-operative mainly exporting commodities,
or follows directors' long-held strategy to add-value to milk by becoming a serious
world player in the highly lucrative ingredients and brands markets.
Paediatric and health and wellness nutrition, proteinised beverages and nutraceuticals
and specialised cheeses are targets for more infrastructure investment.
More at NZ
Herald.
Meawhile Fonterra’s internet-based sale platform globalDairyTrade concluded its
September event early this morning with average prices for whole milk power climbing
24.2% to $US2858 a tonne - $US557 up on last month, and higher than expected
according to Fonterra Global Trade managing director Kelvin Wickham.
This comes after a 25.8% increase during the August auction reaching $2301 per
tonne.
Mr Wickham said that from November 3 globalDairyTrade trading events would include
anhydrous milk fat (AMF), in line with plans to offer an expanded range of products.
More at National
Business Review.
Goodman
Fielder outlook 'encouraging' (27 Aug 09)
Food giant Goodman Fielder has posted a rise in revenue and
net profit and says the outlook for the current financial year is encouraging.
The listed trans-Tasman spreads maker and bakery goods group said yesterday its
annual net profit was A$177.1 million (NZ$219.2m), up from A$27.7m on the 2007-08
year, helped by one-off gains.
The board announced a final dividend of A6 cents a share, taking the full-year
dividend to A10.5 cents a share.
Revenue increased 6.5 per cent from the prior financial year, to A$2.8 billion,
and earnings before interest, tax, depreciation and amortisation also rose, 1.2
per cent, to A$375m.
Overall, trading had been difficult with a "severe recessionary environment in New Zealand" and continuing tight conditions in Australia, the company said.
With consumer confidence depressed, shoppers switched to cheaper alternatives, hitting the company's branded products in both bread and dairy product lines.
But by the end of the year, the decline had been arrested in New Zealand and the company's market shares were "recovering".
Goodman Fielder sales in New Zealand were worth A$952m in the June year, down
from A$974m in the previous year.
Fresh Dairy and Meats posted higher earnings of A$43.6m for the year, despite
a difficult first half with record high raw milk costs.
Goodman's fresh baking share of the Kiwi market was down from 52.1 per cent a
year ago to 49.5 per cent in the final quarter of the latest year, though unit
costs have been rising.
More at BusinessDay.
 Frucor
cleared to take over Simply Squeezed (25 Aug 09)
The Commerce Commission has cleared Frucor Beverages to acquire juice maker Simply
Squeezed.
Commission chairman Mark Berry said the commission was satisfied that the acquisition
would not substantially lessen competition in the national market for the manufacture,
import and supply of fruit beverages.
Frucor is a subsidiary of Japan's Suntory Holdings Ltd and is the second largest
supplier of non-alcoholic beverages in New Zealand.
Frucor owns and manufactures Just Juice, Fresh Up, Arano, Joo-C, Citrus Tree,
McCoy and Twist fruit beverage brands.
Simply Squeezed is a Hawke's Bay based manufacturer of fruit beverages.
The combined entity was unlikely to be able to exercise market power because
of the number of participants in the market and the presence of supermarkets,
which had demonstrated a willingness to foster entry or expansion in the market.
More at NZ
Herald.
 Silver
lining for Cloudy Bay while profits fall in France (24 Aug 09)
Cloudy Bay, the byword for New Zealand sauvignon blanc among discerning
American and British wine drinkers, has reported a doubling in
annual profits.
Cloudy Bay Vineyards returned an after tax profit of $14.5 million for the year
to December 2008, up from $7.6 million in 2007.
The Marlborough winemaker's revenue for the year was $42 million, up from $31
million the previous year.
Meanwhile its French parent, Louis Vuitton Moet Hennessy, has just reported a
17 per cent fall in revenue in its wines and spirits division
for the first half of 2009.
Overall the luxury goods company delivered a 23 per cent drop in interim profits.
Cloudy Bay's annual report for 2008 was only filed with the New Zealand Companies
Office last week.
The company harvested 2523 tonnes of grapes in the year to December.
It is listed by New Zealand Winegrowers as a medium-sized winery, which the industry
body categorises as those selling between 200,000 to 4 million
litres of wine a year.
Cloudy Bay also produces other varieties of wine including chardonnay, pinot
noir and riesling.
More at NZ
Herald.
 Wine
industry sees warning signs ahead (18 Aug 09)
The New Zealand wine industry grew strongly
for the June year end 2009, but winemakers and grape growers are
also
facing
significant
challenges according to the New
Zealand Winegrowers’ Annual Report.
Highlight of the year was the 24% lift in the value of wine exports to $992 million,
up $194 million on the previous year. Export growth was driven by
the availability of wine following the 2008 vintage and strong in-market
demand for New Zealand wine in key markets notably Australia, the
UK and the USA.
Commenting on the successes of the past year, New Zealand Winegrowers Chair Stuart
Smith said: “New Zealand wine is a strong proposition in the global
market. Our reputation is positive and we have carved a niche in our markets.
Importantly for the year ahead, quality from the 2009 vintage will be very high
across a range of styles.”
However, Mr Smith said the industry was also facing significant challenges. “Some
unmistakable warning signs emerged this year. Despite sales volumes benefiting
from increased supplies from the 2008 vintage, those increased supplies also
delivered increased competition and downward price pressure. Without doubt the
situation was exacerbated by the global recession. As a result lower profits
are the reality for many in the industry this year.”
Mr Smith said the industry needed to confront the new reality it was now facing. “Continued
effective management of supply is fundamental to our future success. Equally,
investment in marketing will be more important to the industry than ever before.”
Mr Smith, however, remains positive about the future. “While times are challenging
at the moment, we have an industry that is united and understands the challenges
and opportunities it faces. We have built New Zealand wine into a globally successful
brand and that is a sound platform from which to build our future success.”
 Penford
to sell New Zealand operation (15 Aug 09)
Penford Corporation has disclosed that Penford Australia, a wholly-owned subsidiary,
has entered into a contract to sell 100% of the shares of Penford New Zealand
to a New Zealand private investment company. The sale is subject to certain conditions
and is due to be completed in early September 2009.
Penford Australia produces cornstarch products in Australia and New Zealand.
It engages in the development, manufacturing, and marketing of specialty, natural-based
ingredient systems, including specialty starches and sweeteners for food and
industrial applications.
Penford has nine manufacturing and/or research
locations in the United States, Australia and New Zealand. More at FoodBUSINESSReview.
 Pioneering
winemaker in receivership (13 Aug 09)
Established Waipara
winery Daniel Schuster Wines has gone into receivership.
Receiver Stephen Tubbs, of BDO Spicers, said he was continuing to employ all
four staff who had worked at the winery, while he gathered information, assessed
the financial position of the
company and its prospects.
The cellar door was continuing to trade, he said.
It produces pinot noir, chardonnay
and riesling.
Danny Schuster was closely involved with the development and early research into
grape
and
wine production conducted at Lincoln University and became Canterbury’s
first commercial winemaker at St Helena Wines, established 1978. The first commercial
vintage was 1981 but the subsequent year Danny produced what was to become New
Zealand's first gold medal winning Pinot Noir, the St
Helena Pinot Noir 1982. He repeated the gold medal win with the 1984
vintage, and the
many
prestigious awards his wines received during the early to mid-1980’s helped
establish Canterbury’s reputation as a foremost producer of this grape
variety. Danny left St Helena in 1986 to establish Daniel Schuster Wines at Omihi
in Waipara, making Pinot Noir, Chardonnay and Riesling. He also
has consulting roles with winemakers Antinori, Italy, and Stags Leap, USA.
New Zealand Winegrowers chief executive Philip Gregan said Daniel Schuster was
the third winery he had heard of to go into receivership or liquidation
in the past three months and he would not be surprised to hear
of more.
He believed it was a reflection of the tough times facing the industry. More
at The
Press.
Fonterra
in $40m factory make-over (13 Aug 09)
Dairy giant Fonterra has been granted resource
consent to begin transforming the former Fisher & Paykel factory west of Dunedin
into a storage plant.
Fonterra will spend between $40 million and $45m on the North Taieri site and
work is expected to be completed by August next year, the Otago Daily Times reported.
The site will include a rail system capable of transporting 90 per cent of the
milk powder and cheese stored at the site.
Milk powder from Fonterra's Edendale plant will be railed to North Taieri, while
milk powder and cheese from the company's Stirling factory will also be taken
by train from North Taieri to Port Chalmers for export.
The company plans to expand the facility again after 2014.
Obtaining resource consent was "quite an exciting opportunity", Fonterra warehousing
transformation manager Greg Pope said.
It meant Fonterra could move from road transportation to rail and lower its carbon
footprint, he said.
Mr Pope said conversion of the factory into a dry-storage area was already under
way and the first product should be received there in October. More at NZ
Herald.
 Hellers
expands (12 Aug 09)
Hellers is spending $18 million expanding its Canterbury site in response to growing demand for its products.
The New Zealand-owned company is doubling the size of the Kaiapoi operation on the outskirts of Christchurch and bringing it under one roof.
"It's created a real air of positivity in the industry and will have major benefits for others. The development will help stimulate the New Zealand economy and the construction industry in Christchurch," said director Todd
Heller.
The expansion includes a new warehouse and distribution centre, freezers, inwards
goods store, offices, ready-to-eat slicing and packing area, as well as new staff
amenities.
The company spent $2 million redeveloping its Auckland factory last year, doubling
the size of the warehouse and loading area.
Hellers produces 178 million sausages, 90 million slices of bacon and 100,000
Christmas hams a year.
More at NZ
Herald.
 Newton
Forrest Estate announces long awaited launch (10 Aug 09)
Newton Forrest Estate of Gimblett Gravels, Hawkes Bay announces the long awaited
launch of the Newton
Forrest Cornerstone 2006 in New Zealand.
The wine which rated 'shoulder to shoulder' with Bordeaux first growths; Ch.
Lafite, Ch. Mouton Rothschild, Ch Haut Brion will be commercially available in
the New Zealand Market from the 24th August 2009 after much demand. The wine
shot to global fame in February of this year in a double-blind tasting held at
New Zealand House in London, England. The masterclass was attended by some of
the wine worlds most distinguished critics including Jancis Robinson, Michael
Schuster, Oz Clarke and Neal Martin. Participants tasted 12 carefully selected
wines, 6 from Bordeaux and 6 from Gimblett Gravels, Hawkes Bay and without obligation,
were invited to submit their top 6 ranked wines in order of preference. The Cornerstone
2006, a Bordeaux blend of Cabernet, Merlot and Malbec finished impressively in
the top 6 in the blind tasting just below the $1,950.00 priced bottle of 2005
Chateau Haut-Brion.
“I think the most amazing thing about the tasting is the fact the Cornerstone
is a fraction of the price of the Bordeaux wines, yet stands up next to them
in quality, with this and global enquiries we will see this wine disappear very
quickly ” says Dr John Forrest, Winemaker and Business Partner.
Jancis Robinson Wine Writer mooted to the entire tasting panel the proposition
that "the Gimblett Gravels wines tasted were the closest comparison to the Bordeaux
wines of any wine region (in the world) today."
The acclaimed Cornerstone wine will be on show and available for tasting at ‘Hospitality
NZ’ held at the ASB Show Ground in Auckland from 23rd to 25th August for the
trade and public to sample and has a RRP of $60. Newton Forrest Estate, established
in 1988, reflects the Anzac spirit of Australian born and trained viticulturist
Mr Bob Newton, and New Zealand winemaker Dr John Forrest of Forrest Wines. Cornerstone
Vineyard is situated at the junction of Gimblett Road and State Highway 50, Hawkes
Bay, and lies in the abandoned course of the Ngaruroro River.
Kiwifruit
parties call in the lawyers (10 Aug 09)
Kiwifruit exporter Zespri has employed a QC and listed challenger Turners & Growers is ramping up its efforts to acquire two confidential industry reports as their deregulation battle continues.
Bay of Plenty-based Zespri, which has the statutory right to export all kiwifruit except to Australia, said it had appointed David Goddard, QC, in response to legal action started against it by Turners.
Turners, a fresh produce grower, distributor and exporter led by Guinness Peat Group's Tony Gibbs, has called on the Government to deregulate the $1.2 billion kiwifruit export industry, citing abuses of market power, lost opportunities and the potential loss of millions of R&D
investment dollars. It has also filed proceedings in the High Court at Auckland
alleging the dominant exporter has breached its regulations and the Commerce
Act.
Turners is responsible for about 1 per cent of annual kiwifruit production, according
to Zespri.
Gibbs said Turners was being frustrated over access to a 2006 report by Grant
Samuel, commissioned by growers as part of a review of Zespri's margin, and to
a report from a 2007 independent survey of growers, commissioned by Zespri.
More at NZ
Herald.
 Supermarket
move by icecream maker (6 Aug 09)
Emerald Group is considering plans to put its high-end New Zealand Natural ice
cream brand into Australian supermarkets after establishing more than 50 parlours
in four states.
The move comes as American icecream maker Ben & Jerry's prepares to launch its
chunk-filled icecream bar franchises in Sydney and Melbourne from September.
NZ Natural chief executive Shane Lamont said the move into Australian
supermarkets had been under serious consideration as part of the company's Australian
expansion
plans.
It already sells the product in some speciality supermarkets in Western Australia,
where it also has parlours. Other parlours are in New South Wales, Victoria and
Queensland.
Mr Lamont said Ben & Jerry's is already a competitor in 80 per cent of the
21 countries where New Zealand Natural had 650 outlets, including the US and
a concentration of Asian
countries. Ben & Jerry's has 417 outlets in the US and 380 globally.
Ben & Jerry's Australian brand manager, Caroline Simpson, said
New Zealand could be the next launch pad for the icecream once the brand was
established in Australia.
Australia is the world's third-biggest consumer of icecream, at 18.5 litres per
person a year.
That compares with the United States' per head consumption of 23 litres a year
and New Zealand's of 20 litres.
More at BusinessDay.
 World's
largest mussel farm a step closer (6 Aug 09)
The development of the largest mussel farm in the world has taken a major step
forward after consent was given to enlarge the Opotiki harbour entrance.
For the mussel farm's servicing and processing activities to be based in Opotiki,
the channel into the Opotiki Harbour had to be improved to provide reliable access
for larger vessels.
Opotiki Mayor John Forbes said the aquaculture project could provide more than
900 jobs, and a $27.3 million increase in the district's income.
The mussel farm is being developed by Eastern Sea Farms - a
joint venture involving New Zealand Sea Farms, Sealord and the local Whakatohea
Maori Trust Board.
Mussel farming involves anchoring ropes with spat attached to them to buoys,
and pulling them up for harvest about 12 months later. About 20,000 tonnes of
mussels are expected to be produced a year, and the groups have a goal of $250
million in exports by 2025.
Construction of the marine farm will begin this year, with a projected completion
date of 2012.
More at NZ
Herald.
Milkpowder
price up 26 pc in auction (5 Jul 09)
Prices in Fonterra's monthly online milk powder auction jumped almost 26 percent with the dairy co-operative pointing to strengthening demand in albeit volatile global markets.
Fonterra said today the average August price achieved across all contracts and contract periods for whole milk powder was US$2,301 per tonne. This was US$472 per tonne higher than in Fonterra's July auction. Prices ranged from US$2,235 per tonne to US$2,530 per tonne. Overall average prices rose 25.8 percent.
Nigel Kuzemko, the commercial and strategic director for Fonterra
trade and operations, said the higher prices reflected a recent firming in market
sentiment.
The August auction included 1,000 tonnes of whole milk powder from Fonterra's
Australian operations for the first time.
Fonterra's next monthly online auction will be held on September 1.
More at BusinessDay.
 Price
dip tipped as US subsidises dairy (4 Jul 09)
Economists expect a small drop in international dairy prices after the United
States Agriculture Department said it would pay American farmers 15 per cent
more for skim milk powder and some types of cheese from now
until October. The subsidy is worth an estimated US$243 million to US dairy farmers.
Westpac economist Doug Steel said it was likely to cause some downward price
pressure at the margins. "But probably not large and it will be difficult to
detect." Some of the US and European intervention in the market was going in
the other direction and providing a floor for prices, although it was likely
to delay a price recovery in the longer term, Mr Steel said. ANZ chief economist
Cameron Bagrie said: "Economics 101 tells us if you provide a subsidy it's going
to suppress the price. The magnitude we just don't know. It depends on what happens
with the extra production." Mr Steel said: "The thing to watch for is whether
this is the beginning of a
subsidy war".
More at BusinessDay.
New
Zealand wine surplus spells king-size hangover for Australia (3 Aug 09)
New Zealand's wine surplus, swelled by consecutive record vintages, may threaten Australian makers by driving down prices and gaining market share.
As Australian producers deal with their own glut after more than a decade of "irrational investment", cheaper New Zealand wine will put further pressure on companies such as Melbourne's Foster's, says Citigroup.
There is now a 70 million-litre gap between New Zealand's production and total sales, according to data from New Zealand Winegrowers, an industry association representing 1200 winemakers and grape growers.
"New Zealand's wine lake is yet another hangover for Australian producers," Citigroup analysts led by Andy Bowley, of Wellington, reported. "New Zealand wine is gaining share in key export markets including Australia at the expense of domestic Australian producers."
Australian prices have fallen 7.8 per cent since 2003 after three record crops,
according to government data.
New Zealand wine exports rose an annual average of 27 per cent in the same period,
triple the pace of its other exports, according to the Institute of Economic
Research.
More at NZ
Herald.
Wine
sector shooting itself in the foot - MAF (29 Jul 09)
Some wine companies are exporting the nation's premier Marlborough sauvignon blanc in bulk to clear large wine stocks, the Ministry of Agriculture and Forestry says.
"Continuing down this path may affect the longterm future of the industry," said MAF economists.
Vines may have to be mothballed or pulled in the next couple of years, they predicted.
The success of the flagship "brand" of Marlborough sauvignon blanc has triggered a dramatic rise in vineyard development.
The marked increase in the proportion of wine exported in bulk is lowering overall demand for New Zealand's bottled wine, they warned in the annual Situation
and Outlook for New Zealand Agriculture and Forestry (Sonzaf).
T
MAF said Marlborough sauvignon blanc continued to dominate, with the recent growth
in plantings of new sauvignon blanc vines described as "the most sustained and significant horticultural land development in New Zealand history".
But the volume of wine exported in bulk, rather than bottled locally, was a "concerning feature" of
the 2008 vintage, jumping from 4 percent in recent years to a record 30 percent
in May this year.
More at National
Business Review.
Cedenco
to close retort plant (28 Jul 09)
Gisborne food processor Cedenco is closing one
of its factories, resulting in at least 125 seasonal workers losing their jobs.
Cedenco told staff on Friday they would be shutting their retort factory, which
heats
vacuum-packed corn cobs.
The company has cited a drop in international demand for corn cobs and kernels
as the reason for the closure.
Cedenco's New Zealand manager Richard Lawrence said all other
businesses including the main factory in Gisborne, a Hawke's Bay factory and
an Australian processing
plant would operate as normal.
As well as the loss of 125 jobs at the seasonal peak, growers, contractors and
all the industries that service the factory and growers would be affected.
Cedenco was one of New Zealand's biggest vegetable processors, with
two Gisborne factories, a processing plant at Whakatu in Hawke's Bay and a business
in Ohakune, in the Central North Island.
More at www.stuff.co.nz.
 Sanford
buys Sealord marine farms for $23.4m (27 Jul 09)
Sealord is selling marine farms in the Marlborough Farms to Sanford for $23.4 million.
The package includes about 240ha of water space and equipment for growing mussels and spat.
Spat growing on the farms and the young crop forecast to be harvested from July 2010 onwards is also included in the deal.
The price does not include crop on the farms that will be ready for harvest in the coming 12 months.
A joint announcement today by Sanford and Sealord said Sanford would buy that crop when it was ready for harvest.
Sanford said the marine farms would add to its existing farms in the Marlborough Sounds, giving it access to increased space to grow greenshell
mussels of about 5000 tonnes a year.
The purchase of the Sealord farms would help throughput at an automated mussel
opening machine line in Havelock, developed by Sanford, almost double within
three years.
Sealord said the sale of its farms in the Marlborough Sounds freed up capital
for investment in other areas. It would concentrate on developing its extensive
mussel farm holdings in Tasman Bay and in the Coromandel.
More at NZ
Herald.
Growers
let profit do the talking (23 Jul 09)
Put your cheque book away Mr Gibbs - trying to persuade kiwifruit growers to agree to deregulation of their $1.4 billion industry is throwing away good money on lawyers and consultants. That was the message to Turners & Growers
chairman Tony Gibbs from Zespri's annual meeting yesterday - and it was all the
more powerful for being understated.
Around 450 of Zespri's 2700 national growers attended the Tauranga meeting, but
only a handful even bothered to acknowledge Gibbs' campaign to overturn their
company's statutory right to control kiwifruit exporting to all countries except
Australia.
Far from stirring up the sort of no-holds-barred growers versus corporate stoush
he starred in when he took on the regulated apple export industry around 2000,
Gibbs seems to have failed to rattle kiwifruit growers with his deregulation
plea to the Government and this week's legal proceedings against Zespri.
Gibbs' moves could not knock grower satisfaction with Zespri's posting of a
21 per cent increase in net profit this year to $23.9 million, and signs that
gold fruit is on the way to overtaking pipfruit exports.
A record 100 million trays were produced and fruit and service payments to the
industry totalled $800 million.
Zespri's overall sales revenue was up 25 per cent at $1.45 billion and a combination
of improving pricing and optimised size contributed $50 million to New Zealand
sales revenue, the meeting heard.
More at NZ
Herald.
Zespri
vows to fight T&G lawsuit (22 Jul 09)
Produce marketer and exporting company Turners & Growers has thrown another grenade into the Zespri camp, serving it with legal action the day before kiwifruit growers meet for Zespri's annual meeting in Tauranga.
Zespri says the legal action is "entirely without merit" and if the matters raised in the claim ended up in court they would be "rigorously defended".
Late yesterday afternoon T&G delivered a statement of claim to Zespri's lawyers,
alleging among a raft of claims, unlawful discrimination against growers who
do not toe the Zespri line.
It also claims an illegal attempt to try to control the Australian kiwifruit
market, which is outside Zespri's jurisdiction because of New Zealand and Australia's
Closer Economic Relations agreement.
The case will come up for first mention and directions in the High Court at Auckland
on 5 August.
Zespri marketing boss Carol Ward said Zespri saw the filing of the
statement of claim as primarily a publicity stunt in a campaign by T&G
and its majority owner Guinness Peat Group to destabilise the kiwifruit industry.
The legal action has been brewing since Mr Gibbs started a campaign on behalf
of his company and its marketing arm Enza against Zespri after T&G was turned down on a collaborative agreement to market fruit with Zespri to Mexican, United States and Japanese markets.
Last month Mr Gibbs and T&G executives took a proposal to the Government to have Zespri and its monopoly disbanded.
More at The
Dominion Post.
 Delegat
toasts 61 per cent profit surge (21 Jul 09)
Jim Delegat, managing director of Delegat Group, says improved sales for Delegat
Group wine in June helped a 61 per cent surge in full-year profits.
He said that the boost - along with changes to foreign exchange hedging - were
key factors in an upgrade of profits to June 30.
The NZX listed company yesterday announced a pre-audit net profit after tax of
$30 million to $31 million, from earnings before interest tax, depreciation and
amortisation of $64 million to $65 million.
Delegat said the results were partly because its market leader Oyster
Bay brand
maintained its super premium place in a market with keen pricing.
Delegat said that after a bumper harvest in 2008 it was down 9 per cent this
year and 2 per cent on expectations.
But he said favourable growing conditions throughout the summer season in the
Hawkes Bay and Marlborough regions delivered both quality and quantity.
Delegat's products accounted for about 14 per cent of New Zealand's wine exports
last year. More at NZ
Herald.
 Olivado
parent co. in receivership (15 Jul 09)
The holding company of Northland avocado oil producer Olivado is in receivership after failing to secure new funding arrangements following a management bust up.
Auckland firm PKF Corporate Recovery & Insolvency has been appointed as receiver
for Olivado Holdings Ltd, which operates Olivado New Zealand Ltd, Olivado Kenya
(EPZ) Ltd and Olivado USA Inc.
Those firms will continue trading and are not in receivership, a spokeswoman
for Olivado said.
The receivership resulted when talks broke down between Olivado Holdings’ primary lender, Hopetoun Holdings GmbH of Switzerland, and the company shareholders.
Hopetoun granted a request by shareholders and directors for a three-month period in which to seek alternative company funding. The shareholders were unsuccessful in securing new finance.
Hopetoun Holdings is managed by Gary Hannam, who is also Olivado New Zealand’s chief executive.
Olivado Holding’s main shareholder is Chris Nathan, who resigned in February. He also resigned as managing director of Olivado New Zealand.
NBR understands the split was acrimonious and centred on issues of governance.
Mr McCullagh said the receivership was necessary to sort out the management reshuffle.
He could not give details of the amount of debt Olivado Holdings was carrying except to say it was “millions of dollars.”
More at National Business Review.
 Exclusive
boutique bubbles producer appoints leading winemaker (11 Jul 09)
No.1 Family Estate, New Zealand’s only winemaker focusing exclusively on the production of Methode Traditionnelle has appointed Eveline
Fraser to share the role of Chief Winemaker with proprietor, Daniel Le Brun.
Fresh from her position as Senior Winemaker at Marlborough’s Cloudy Bay, Eveline’s experience in the production of Cloudy Bay’s cult sparkling wine, Pelorus will contribute valuable experience to the company’s winemaking team. Daniel comments on Eveline’s appointment, “We are delighted to welcome Eveline to the team. Our families have been friends for 30 years and it is wonderful that we can now share our passion for making great sparkling wines.”
Using only specialised equipment imported from Champagne, Eveline will join the family-owned producer to continue the ritual of hand-crafting superb Methode Traditionelle focusing on just five very special wines; Cuvée N°1, a non-vintage blanc de blancs made from 100% chardonnay, Cuvée Number 8, a non-vintage blend of Chardonnay and Pinot Noir, Reserve Cuvée No.10 and Cuvée Virginie – both limited edition wines and only made in the finest of years and now for the first time, a rose made from 100% Pinot Noir.
No. 1 Family Estate has grown steadily since its establishment eleven years ago and with numerous international trophies, gold medals and five-star awards, is looking forwards to a rewarding future.
 Wine
exporters forum coming up (10 Jul 09)
Top
international wine experts from Australia, the United Kingdom,
Canada, Asia and the USA, will provide New Zealand wine exporters
with the latest insights and advice at the New Zealand Wine Exporters’ Forum
later this month.
Key speakers include Lisa Perotti-Brown MW, the Singapore-based
Asian wine correspondent for prestigious international fine wine guide, eRobertParker.com, Pierpaolo
Petrassi MW, senior product development manager at Tesco Stores Ltd,
the United Kingdom arm of Tesco PLC, and Philip
Rich, liquor operations manager for renowned Melbourne restaurants Circa,
The Prince of Wales and The Stokehouse, and founder of fine wine merchant Prince
Wine Store.
The biennial Forum, which is being held in Christchurch from 29-31 July, is presented
by New Zealand Winegrowers and is the major industry conference for New Zealand
wine exporters.
Chris Yorke, global marketing director for New Zealand Winegrowers, said the
Forum comes at a time when the New Zealand wine export industry needs to be particularly
mindful of consumer trends in major export markets due to the current state of
the global economy.
“Despite the global economic downturn the growth in the industry is strong – for
instance we’ve seen 51 percent growth in the Australian market over the past
year,” Chris said.
“We continue to predict good growth but the global economy is presenting some
unique challenges, making it critical for exporters to keep informed about what’s
happening in our main export markets,” Chris said.
Other international speakers at the Exporters’ Forum include Americans Chris
Lynch, former CEO of Pernod Ricard New Zealand; and Doug Frost, one of only three
in the world to achieve Master of Wine (MW) and Master Sommelier (MS) qualifications.
Grant Ramage, liquor merchandise & marketing manager at Coles Group, will present
on the Australian wine retail market in the present economic climate.
The New Zealand Wine Exporters’ Forum will take place at the Christchurch
Convention
Centre from 29-31 July. Further information is available at www.nzwineexportersforum.co.nz
Frucor
buys Simply Squeezed (7 Jul 09)
Frucor Beverages, whose brands include Just Juice, V and Fresh Up, is buying rival Simply Squeezed Holdings for an undisclosed sum pending Commerce Commission approval.
Originally part of the New Zealand Apple & Pear Marketing Board, Frucor was itself bought by Japan's Suntory Group from France's Groupe Danone for about $1.4 billion in February.
Frucor said today it was delighted to have the chance to add the Simply Squeezed, Supreme, Allganics and Bay Harvest brands to its stable.
Frucor, which also makes Mizone and Frank drinks, said it had been in talks with Simply Squeezed for a few months.
"Simply Squeezed has demonstrated strong growth and consistent profitability for many years despite aggressive competition, which is a real credit to them," Frucor's New Zealand CEO Carl Bergstrom said.
He said the acquisition would see Simply Squeezed enter the Frucor fold with "minimal" changes
for the staff, orchardists who supply fruit and distributors.
Simply Squeezed would remain based in the Hawke's Bay where it was founded in
1991 by Steve Brownlie.
More at BusinessDay.
 Russians
complete NZ dairy factory takeover (7 Jul 09)
Russian food company Nutritek Group has taken over 100 per cent of New
Zealand Dairies Ltd to control its South Canterbury milkpowder
factory.
New Zealand Dairies opened the plant at Studholme, in South Canterbury, in October
2007, using about $100 million of commercial and convertible loans
from Nutritek.
The Russian company was taken to the High Court at Auckland in May after it failed
to meet agreed deadlines to buy out three minority shareholders,
including Aad van Leeuwen, South Canterbury's biggest dairy farmer.
Van Leeuwen, along with Tauranga's Greg Misson and Te Aroha accountant Keith
Diprose, owned the 17.65 per cent of NZDL which the company has
just acquired.
Nutritek is part of Nutrinvestholding which floated its shares in April 2007,
sold its Russian dairy business for US$350 million with the aim
of investing in South-East Asia.
Nutritek effectively rescued the Studholme dairy factory during construction
when the original backers ran out of money, and provided $24m to
save the factory.
The factory is expected to supply its Asia division with dairy and baby food
products, including whole milkpowder and infant formula.
More at NZ
Herald.
 Lion
starts consultation on job losses (7 Jul 09)
Lion Breweries kicks off consultation with employees today at Canterbury Breweries,
where up to 24 jobs are on the line.
New Zealand's largest brewer is building a $250 million beer manufacturing, contract
bottling and warehousing plant at East Tamaki, Auckland, which will have an impact
on what other production it needs around the country.
Lion Nathan corporate affairs director Liz Read said no job losses had been decided,
but changes in production could mean a reduction of between 16 and 24 of the
approximately 60 production roles at the Christchurch central city brewery, near
Hagley Park. Another 30 staff are in sales, administration and management.
Ms Read said the Canterbury team would start consultation today and staff would
probably know the result in August.
The changes were
signalled in 2007 when Lion entered into negotiations to sell its Auckland brewery
site on Khyber Pass Road.
Canterbury Draught, Guinness, Steinlager Pure and some of the Mac's range are
brewed in Canterbury.
The first brew at East Tamaki is scheduled for the last quarter of this year
but the plant is not expected to be fully operational till the first quarter
of 2011.
More at The Press.
 Westland
Milk back peddles on A2 (3 Jul 09)
West Coast dairy company Westland Milk Products has completed an about face on a strategy to convert 95% of its herd to produce A2 milk.
In a “future-proofing” move late last year, Westland Milk Products acting chief
executive Hugh Little said the co-op wanted farmers to start using A2 bulls in
order to convert the entire milking herd to produce A2 milk.
Avoiding the scientific arguments whether A2 milk was healthier than milk containing
the A1 protein, Mr Little said in September last year that there was growing
demand for A2 milk and that about 60% of the herd belonging to its 390 suppliers
already produced it.
Since then, the company has reviewed its strategy following the report of a European
Food Safety Authority review of the potential health impacts of components in
the A1 milk, which dismissed any links to disease.
The company had planned to have an entirely A2-producing herd by 2019 and over
the last two seasons, a number of suppliers had been switching genetics from
A1 to A2 bulls. Most of the New Zealand herd is A1, so processing most A2 would
have allowed Westland Milk to move into what was thought to be a growing niche.
Westland Milk has 390 farmers between Fox Glacier and Karamea and is expected
to produce about 76,000 tonnes of dairy products this season.
More at National
Business Review.
 Grapes
to stay on vine (3 Jul 09)
Grapes may be left to rot on the vines in Hawke's Bay next year as Pernod
Ricard cuts back on its purchases from contract growers.
The company, the largest wine producer in New Zealand, is reducing its intake of chardonnay and pinot noir grapes because of falling demand for chardonnay and sparkling wines.
Clive grower Mike Lane, who supplies the two varieties to Pernod Ricard, said Hawke's Bay growers were now waiting anxiously for individual meetings with company representatives during the next two weeks.
At a meeting on Wednesday, the company told growers it wanted to buy out some contracts, but gave no details.
"If your contract is bought out I don't think you'd be allowed to sell your grapes elsewhere," Mr
Lane said.
In that case, growers would just leave their grapes on the vines.
The same process is taking place in Gisborne.
More at Dominion
Post.
 Health
products company opens Auckland site (2 Jul 09)
Vitaco Health Ltd, a health products business owned by Australian private equity firm Next Capital, opened a refurbished facility in East Tamaki in Auckland today.
Vitaco is the merged business of Healtheries of New Zealand Ltd and Nutra-Life Health & Fitness Ltd.
The company invested $25 million in the 15,000sq m facility, which brings together the Healtheries and Nutra-Life head office, laboratory, manufacturing and warehouse functions under one roof.
Chief executive Sarah Kennedy said the new facility positioned the company well to continue its global growth strategy.
"We have positioned ourselves to take advantage of the world's growing focus on health and well-being and our investment in these state of the art facilities represents a key element in that positioning," she
said.
Sixty per cent of the company's production are supplements, with the balance
sports and food products.
Vitaco exports more than half its production predominantly to Australia, Asia,
Europe and the Middle East.
Vitaco has turnover of around $175 million, representing 23 per cent of the total
turnover of the New Zealand bioactives industry. It employs around 400 staff.
More at NZ
Herald.
Fonterra
sees 'green shoots' as global dairy prices struggle (2 Jul 09)
Fonterra says customer demand for its whole milkpowder has picked up, but buyers on its regular internet auctions are being cautious.
The big dairy cooperative said that its July auction in the early hours of today saw continued "market caution" around pricing.
"We saw increased customer demand, but they remain wary about paying too much in an uncertain environment," said Kelvin
Wickham, managing director of Fonterra's global trade arm.
The average price achieved across all contracts and contract periods for whole
milkpowder (WMP) was US$1829/tonne, down $57/tonne (or 3 per cent) from the June
auction.
Mr Wickham said the global dairy market was still in a re-balancing phase.
"On the one hand milk supply globally is declining sharply, but, on the other hand, recessionary conditions mean consumers have reduced their purchases of dairy products."
The short-term price, for shipments in September fell 8 per cent to US$1841/tonne.
Further out, for shipment in October-December, prices at auction fell 4.6 per
cent to US$1806/tonne.
But there was a brighter note, with the price on shipments between January and
March next year lifting 1.9 per cent to US$1849/tonne.
.
The latest auction has revived speculation Fonterra's forecast payout for the
current milking season could be cut from $4.55/kg milksolids.
More at NZ
Herald.
Kiwi
ice cream in Russia (1 Jul 09)
In a move that shows you can perhaps sell anything to anyone, New Zealand
Natural has opened an ice cream outlet on the wintry Russian island of Sakhalin.
The ice cream manufacturer and distributor announced today the outlet on Sakhalin - which lies north of Japan's Hokkaido island on Russia's east coast, on the same longitude as Siberia - was a stepping stone towards expansion towards the more densely populated west coast and cities such as Saint Petersburg and Moscow.
New Zealand Natural managing director Shane Lamont said the Russian market was notoriously difficult to break into, though local reaction towards the icecream had been positive.
"First feedback from Russian customers is they love our ice cream, it is in a quality bracket they have never experienced before, they comment on the exceptional mouth feel," said Lamont.
"Most Russian ice cream is made using cheaper vegetable oils, the creaminess and texture of New Zealand Natural is something far superior," he
added.
Sakhalin Island has a population of around 550,000 and its economy is based on
oil and gas extraction.
New Zealand Natural is a division of Emerald Foods, owned by business woman Dianne
Foreman.
Russia is the twenty first country that New Zealand Natural has done a licensing
deal in. It has about 600 branded outlets globally.
More at BusinessDay.
Growers
want a monopoly, says Zespri (30 Jun 09)
Zespri says it will consider an economic report recommending its monopolistic
position be removed, but will not be pursuing deregulation because it is not
what growers want.
The kiwifruit exporter yesterday responded to a formal call by Turners & Growers
to strip it of the monopoly status which allows Zespri to control all kiwifruit
exports to countries other than Australia.
Turner & Growers, headed by Guinness Peat Group's Tony Gibbs, has sent a position
paper to the Government calling for Zespri's privileged position to be done away
with.
Along with its paper the listed produce company filed an independent report by
economic consultants NERA calling for Zespri to be deregulated to maximise the
prospects of innovative gains in the industry by allowing more than one commercial
strategy beyond the orchard gate as well as increasing the ability to inject
additional capital into R&D.
Zespri director of corporate and grower services Carol Ward said "The suggestion
to deregulate the kiwifruit industry is not supported by growers, the post-harvest
sector, the company's international marketing experts or Government,
and is therefore not on the agenda."
Ward said Zespri would be happy to talk to Turners & Growers about developing
additional collaborative marketing efforts but also said "a 1 per cent player
cannot
expect to determine
policy for the whole industry."
Peter Ombler president of the NZ Kiwifruit Growers Incorporation, which represents
the 2800-grower industry, said growers had made it clear what they wanted.
"We have a very clear mandate from our grower base that they are comfortable
with the current structure."
Ombler said a poll of growers in 2007 found 84 per cent believed the current
structure was fundamental to their survival and a further 10 per cent agreed
it was important.
More at NZ
Herald.
 Boost
for aquaculture companies (30 Jun 09)
New Zealand’s fastest growing seafood sector has received a boost from a Contestable Market Development Fund for New Zealand Aquaculture.
Five new projects from four New Zealand aquaculture companies will be launched by the end of the month.
As part of the Government’s programme for partnering with industry, a total of $600,000 is being allocated to co-fund projects by Aotearoa
Seafoods Ltd, Island Aquafarms Ltd, Pacifica
Seafoods Ltd and The New Zealand King Salmon Co Ltd.
The funding is for projects with the potential to drive industry growth over the medium to long term and will be administered on a dollar-for-dollar match basis.
NZTE Operations Manager – Food and Beverage, Sam Lewis, says there was keen interest from multiple participants in the sector and applications for the grants were oversubscribed.
“The projects target opportunities for improving profitability and competitiveness of the sector in key markets including Asia and North America,” said Mr Lewis.
“Aquaculture accounts for 15 percent of New Zealand’s seafood exports by revenue and the sector is active in 77 markets worldwide. Currently the sector generates in excess of $300 million annually and the target goal is to reach $1 billion in sales by 2025,” he said.
“Applications for funding covered a broad range of activities and were designed to encourage innovative market development in the sector.”
“It’s great to see five new projects for two of aquaculture’s flagship species, Greenshell™Mussels and King Salmon are underway. Along with Pacific Oysters these species have been major contributors to the growth of aquaculture production in New Zealand,” said Mr Lewis.
Projects supported by the fund will contribute to the wider goals of the New Zealand Aquaculture Market Development Strategy, which is being implemented by Aquaculture New Zealand.
Managed by New Zealand Trade and Enterprise (NZTE) with funding in response to the recommendations of the Food and Beverage Taskforce, the fund is part of the $2.5 million in-market assistance support of the Aquaculture sector in the 2008/09 financial year.
NZTE will be evaluating the progress and success of each project with the possibility of further funds being available for future projects.
Kiwifruit
monopoly comes under fire (29 Jun 09)
Listed fresh produce company Turners & Growers has formally
called on the Government to strip kiwifruit exporter Zespri of its $800-million-a-year
export monopoly status, citing abuses of market power and the potential loss
of export and R&D investment dollars if it is allowed to continue.
Turners & Growers, headed by Guinness Peat Group's Tony Gibbs,
has sent a "position paper" and an independent economic report to ministers and
party leaders, arguing it is time to allow competition "to release the potential
of the kiwifruit industry".
The paper says New Zealand faces increasing competition from other countries
in its markets and to survive the industry needs investment and innovation from
additional players.
It alleges Zespri, which controls all kiwifruit exports to countries other than
Australia, is abusing its dominant position to prepare for anticipated deregulation,
developing a "war chest" and having growers and industry players sign contracts
that will bind them to supply Zespri after. The need for extra investment in
R&D is also the main message of an accompanying economic report by NERA Economic
Consulting. NERA said R&D investment was "very important" in the fast-evolving
kiwifruit business, with New Zealand's competitors investing heavily across a
number of new varieties of green, yellow and red kiwifruit.
NERA estimated the value of the annual benefits to growers of the "gold" fruit
innovation as $206.9 million to date, "but our point is that dynamic gains of
this magnitude are more likely to occur if Zespri is deregulated, so that a variety
of commercial strategies can be employed."
More at NZ
Herald.
 Nestle
given go-ahead to take on Fonterra ice-cream (27 Jun 09)
Nestle Australia has received approval from the Australian Competition and Consumer
Commission to buy some of Fonterra's ice-cream interests in Australia.
The ACCC said in a statement that it found Nestle's proposed acquisition of the Peters brand
in Western Australia and Connoisseur brand Australia-wide was "unlikely
to substantially lessen competition in the relevant markets".
The ACCC noted that the merged entity would be constrained from predatory pricing
by effective existing competitors.
It noted freezer space in supermarkets was dominated by a limited number of existing
manufacturers, but Fonterra was effectively transferring its position there to
Nestle, which did not have a significant share of its own in freezers.
Nestle will integrate the production of Fonterra's Peters business and Connoisseur
brands in its national ice cream business from June 29, with all manufacturing
consolidated in its Mulgrave facility in Victoria.
Eventually, up to 140 jobs will be lost from Fonterra's Balcatta site in Western
Australia.
Fonterra has decided its primary focus across Australia was its categories of
cheese, spreads, yoghurts and dairy desserts.
Fonterra is selling the remainder of its Australian ice-cream interests to Bulla,
including the licence to manufacture and market the Cadbury ice cream range in
Australia, as well as the Brownes tub ice cream and Authentic Ice Cream brands.
More at National
Business Review.
Cream
of the crop - Fonterra named best in the world (25 Jun 09)
An international industry research group has ranked Fonterra the number one milk processor in the world.
International Farm Comparison Network (IFCN) benchmarked 600 milk processors in over 70 countries and placed Fonterra’s total annual volume of milk processed ahead of industry heavyweights such as Dairy Farmers of America, Nestlé, and Dutch co-operative FrieslandCampina.
The IFCN is a network of dairy researchers from 80 countries, 60 dairy companies and other institutions and farmers. It analyses global dairy trends and create knowledge to guide the various stakeholders in the dairy sector.
Fonterra CEO Andrew Ferrier said the ranking reflected the global reach and scale of the company’s business, with its New Zealand milk supply and manufacturing operations at the core.
“With 80 % of our milk supply coming from our 10,500 New Zealand farmer-shareholders and processed into over 2 million tonnes of export product every year, our local operations, which employ about 10,000 of our staff, are the cornerstone of our global business,' he says.
Mr Ferrier says that around 20 % of Fonterra’s milk was sourced globally, from
ventures such as Soprole in Chile, and its volume has grown as it extends its
supply arrangements with customers around the world.
The goal is to ensure a year round security of supply to solidify these arrangements,
he says.
While Fonterra produces more milk than anyone else, it still only accounts for
2.7% of the total world milk market.
More at National
Business Review.
Revamp
at Fonterra (24 Jun 09)
Fonterra has consolidated a swathe of business units into one and rejigged its management as the dairy co-operative looks to cut costs and improve focus.
Fonterra said today the consolidated business unit would be called Fonterra
Operations and Trade. It brings together all functions from the farm gate to global trade customers including milk supply and collection, shareholder relations, processing, supply chain and Government relations.
The new unit will be headed up by Gary Romano, formerly director
of Fonterra's manufacturing and supply chain group. His new title will be managing
director of operations and trade.
Andrei Mikhalevsky has been appointed Fonterra's managing director for global
ingredients and foodservices. Both Mikhalevsky and Romano will report to Fonterra
CEO Andrew Ferrier.
Ferrier said the new structure meant a more intense focus on efficiency in Fonterra's
core business, enabling it to better serve global customers and strengthen partnerships.
Ferrier said parts of Fonterra's commodity ingredients business were separated
in the co-operative's early days but would now be brought back together.
More at BusinessDay.
Fonterra forces dairy start-up to change
name (22 Jun 09)
Don Brash and Keith Turner’s dairy start-up, formerly named The New Zealand Milk
Company, has been forced to change its name to Oceania
Milk after Fonterra threatened it with legal action.
AJ Park, acting as the IP lawyers for Fonterra, issued a cease and desist order
against the then New Zealand Milk Company (NZMC) over the usage of the term New
Zealand Milk which Fonterra has trademarks to.
Fonterra has said that it has significant investment and goodwill built up over
the years in the names New Zealand Milk, NZM and New Zealand Milk Products, and
can’t have competitors trading off that goodwill.
Chairman Keith Turner says the company probably had a good chance of defending
its name, but can’t afford the $50,000-100,000 in legal fees required to challenge
Fonterra.
“We feel that a legal battle at this early stage of the company’s existence will
be unhelpful, expensive, and not provide a legitimate return to our shareholders.
We’re a small company, they’re a big one,” he
says.
NZMC plans to start build a $20 million factory at a site in Glenavy, South Canterbury
and is going through the resource consent process.
It plans to have its first production season in 2011-2012, says director Tim
Howe.
More at National
Business Review.
Charlie’s
silent on takeover rumours (16 Jun 09)
Charlie’s Group chief executive Stefan Lepionka is playing down market chatter
that the NZX-listed juice company has received an approach or two from multinational
companies regarding a potential takeover deal.
“Charlie’s does not speculate on rumours,” Mr Lepionka says.
A source told NBR's Private Bin that Charlie’s received one offer late last year
from a multinational, but that was subsequently rejected by the board. A second
drinks
company is understood to have made a more recent approach, but it was also sent
packing.
The juice industry is in consolidation mode with several recent deals, including
Japanese firm Suntory's $1.4 billion acquisition of Frucor Beverages.
The talk comes amid speculation that Charlie’s is considering a possible capital
raising.
Charlie’s has expanded into Australia recently. However, continued investment
in brands combined with offshore expansion costs have hampered the company’s
profit.
In the six months to December Charlie’s reported a net loss of $661,000 despite
a 3% improvement in gross sales to $17.3 million.
More at National
Business Review.
Cadbury
revenue melts by $10.8m (16 Jun 09)
The economic downturn has taken a $10 million bite out of Cadbury New Zealand's
sales and profits.
Revenues in 2008 fell to $283.4m from $294.2m in 2007 as Kiwis tightened their
belts and cut back on luxuries. Profits dropped more than a third to $17.7m.
Cadbury's Dunedin factory exported chocolate products worth $45.5m, but New Zealand
remained a net importer of the purple-packaged pick-me-up, with the balance
of trade in Cadbury's chocolate $22m in the red.
That could change following a $51m investment in the Dunedin factory, announced
by Cadbury last year, that secured the future of the facility. It will see the
proportion of production exported rise to 80 per cent.
Following the factory upgrade, Dunedin will supply the Australian and New Zealand
markets, said Melbourne-based spokesman Daniel Ellis.
Blocks and bars will still be imported from Cadbury's factories in Tasmania and
Melbourne.
The factory currently employs 500 permanent staff and 100 seasonal workers.
The Cadbury World tourism facility at Dunedin is undergoing a makeover, he said,
with work now under way to update puppetry and animations.
More at www.stuff.co.nz.
Grape
harvest: another big one (15 Jun 09)
The 2009 New Zealand grape harvest reached 285,000 tonnes, keeping it to last year’s levels, New Zealand Winegrowers announced today.
The vintage is marginally above pre-harvest expectation for a crop of 275,000 tonnes, but is in-line with Winegrowers’ view that the harvest would not be bigger than 2008. Producing area in 2009 is estimated to have been 31,000 ha, up 2,000 ha on 2008.
New Zealand Winegrowers’ CEO, Philip Gregan, said the industry had worked hard in the past year to keep volumes at last year’s levels to maintain quality.
He also said the elements had been kind in 2009, which would contribute to a quality vintage.
“We enjoyed a very good growing season this year. Some early humidity and weather pressure in February was replaced by a superb March and April. This meant our growers and wineries were able to pick the grapes at optimal ripeness.”
“The record 2008 vintage has driven export growth of 28% for the year to date meaning that we will achieve $1 billion of wine exports in 2009, a year earlier than forecast. Despite the strong growth in exports, there has been downward pressure on prices in the short-term given the global recession and market conditions. The prospect of some outstanding wines from the 2009 vintage will help underpin our price premium,” added Gregan.
Marlborough’s vintage was slightly less (-1%) than 2008, with an increase in Sauvignon Blanc more than off-set by lower production of other varieties, notably Pinot Noir.
Nationally the Sauvignon Blanc crop was 5% larger than 2008, driven by a 10% increase in plantings. The crop would have been even larger but for an unprecedented cooperation between wineries and grape growers who reduced yields in the interests of quality and to avoid another unexpectedly large vintage as happened in 2008.
In Hawke’s Bay production was up 20%, marking a return to ‘normal’ levels after vintage 2008 was affected by frost and poor fruit set. Hawke’s Bay styles including chardonnay, merlot, cabernet sauvignon and syrah all increased.
The crop in Central Otago was down 35% from the bumper 2008 vintage. The reduction appears to be more related to crop management than any particular weather events. The markedly smaller Pinot Noir crops in Central Otago and Marlborough led to a 16% reduction in Pinot Noir production on 2008.
Record crops were recorded in Nelson (+11%) and Wairarapa (+8%), whilst Gisborne reduced by 3%.
 Distilled
Spirits Association elects new chairman (9 Jun 09)
The Distilled Spirits Association of New Zealand has elected Diageo New Zealand Country Manager Philip
Doyle as chairman.
Mr Doyle has represented Diageo’s portfolio of leading brands in New Zealand for 10 years. Prior to that, his career spanned both the beverage and hospitality industries.
“There is a robust discussion underway questioning the societal norms around alcohol consumption that will create challenges and opportunities for the industry,” Mr Doyle says.
“From understanding the values of one of the leading global beverage companies, an extensive experience in the industry and being a parent of teenage children, I am fully aware of the personal enjoyment and responsibilities that go with beverage consumption.
“Regulators formulating any new policy will do so with an understanding of the widespread appreciation and support for the role beverages play in the fabric of society. I am also confident the Association and its members will work with regulators on any measures based on rigorous scientific analysis to specifically target and control unsociable behaviours derived from beverage abuse.”
Currently the Law Commission is conducting an extensive review of liquor legislation while separately Parliament is considering other amendments to regulations governing the licensing of retail premises and liquor advertising.
Mr Doyle succeeds former Maxxium New Zealand general manager Philip Robinson.
Allen McCormick, Managing Director of the Rum Company was re-elected Vice-Chairman.
The Distilled Spirits Association of New Zealand was incorporated in 1990 as the national body representing NZ's leading producers & marketers of spirits and liqueurs.
 XXXX
to make way for Steinlager Pure in UK (9 Jun 09)
Lion Nathan will retire the XXXX beer brand in Britain by the end of June after 25 years as it switches to promoting one of its Kiwi offerings, Steinlager
Pure.
XXXX was brewed under licence by AB InBev for the British market. But with the
agreement understood to be contributing less than A$1 million (NZ$1.26m) a year
to Lion's earnings, the trans-Tasman brewer has decided there are higher margins
available in exporting Steinlager Pure.
Lion has notified its British customers of the decision to not renew the licensing
agreement with InBev when it expires on June 30.
Lion believes it can make greater returns on beer sales from brewing the beverages
itself and hiring an international distributor rather than licensing the brand.
In Britain, the XXXX licence was initially held by Carlsberg but switched to
InBev in 2002.
A lack of consistent marketing spending by InBev meant sales had fallen in recent
years, with the brand now comprising less than 1 per cent of British beer sales.
Steinlager Pure is already exported to the United States and various Pacific
Islands
and will be promoted based on the purity of its ingredients.
More at www.stuff.co.nz.
Japanese
firm takes kiwifruit stake (9 Jun 09)
Japanese firm Fresh MD Holdings has taken a cornerstone stake in NZX-listed
kiwifruit
company Seeka Kiwifruit Industries.
The Japanese logistics firm has bought an 18.8 per cent stake in Seeka for $8.5
million from Auckland investor and former director Chris Morton.
Morton said he had been a shareholder for probably 10 years and said it was time
to move on.
Seeka chief executive Michael Franks said the kiwifruit-growing and post-harvest
company grew 10 per cent of the national crop and handled between 20 and 25 per
cent.
Fresh MD Holdings operated major logistics, ripening and fruit-processing operations
in Japan and was a significant handler of New Zealand kiwifruit, Franks said.
Seeka, which also dealt in avocados, sold kiwifruit under its own brand in New
Zealand and Australia and supplied other global markets through single-desk exporter
Zespri.
More at NZ
Herald.
 Nobilo’s
tops US sauvignon blanc sales (5 Jun 09)
Local wine giants ConstellationNZ have made a big breakthrough after more than
half a decade of hard graft in the fickle US market, taking out first place
in terms of sauvignon blanc sales across April.
Nobilo Marlborough Sauvignon Blanc is the first New Zealand
wine to top varietal sales, snatching first place from Napa Valley winemakers
Kendall Jackson in the April IRI sales survey (by volume).
The brand was launched in the US six years ago, and Constellation has pursued
an aggressive marketing strategy tailored specifically to the US market.
This included repackaging the product in white glass, as opposed to green, and
putting the bottle under a cork, instead of the local industry dominated screw
cap.
ConstellationNZ has a 40% share of all New Zealand wine sold in the US, with
two of their other brands, Monkey Bay and Kim Crawford, also making the top
five sauvignon sales list. More
at National Business Review.
Turners & Growers
mounts attack on Zespri's single desk exports (05 Jun 09)
Turners & Growers Ltd used its 88th annual meeting yesterday as a platform to
attack
the monopoly export of kiwifruit outside Australasia.
In doing so, chairman Tony Gibbs evoked history, arguing his company gave kiwifruit
its name, first proposing the phrase "kiwifruit" in 1956, and pioneered its marketing
-
by 1987 Turners & Growers was responsible for 25 percent of New Zealand's kiwifruit
exports.
The industry has operated a single-desk system in export markets since 1987 when
the Kiwifruit Marketing Board became responsible for marketing New Zealand's
crop.
The majority of growers voted then to exclude numerous exporting firms because
of a perception they were undercutting each other in overseas markets and consequently
reducing orchard returns.
Zespri International won its single desk exporting status in 1999 when the kiwifruit
industry was restructured. Under legislation sought by growers only Zespri or
those exporters with a collaborative contract can legally sell kiwifruit in overseas
markets other than Australia.
"I believe the time has come to challenge this outdated monopoly," Mr Gibbs,
who was involved in deregulation of the apple industry, said.
"Offshore retailers are crying out for alternatives and now that Turners & Growers
has its own green, gold and red varieties we are in a position to become, once
again, a major force in the kiwifruit industry," he
said.
More at National
Business Review.
Double
whammy for dairy exporter (4 Jun 09)
Vital export earner Fonterra is being hit with a double whammy of weaker international prices and a stronger exchange rate.
The average price of whole milk powder in Fonterra's monthly online auction yesterday was down 12 per cent compared with last month at US$1886 a tonne.
The farmer co-operative is the world's biggest dairy exporter and accounted for 25 per cent of national exports in the year to May 2008.
Kelvin Wickham, managing director of Fonterra GlobalTrade, said the prices were disappointing.
"I think they [buyers] are more uncertain," Wickham said.
"They're still buying and they're buying for the short term so they're replenishing their stocks and meeting their current customer demand but they're hesitant about buying longer and why wouldn't you be in this market?"
Fonterra expected to sell about 200,000 tonnes of whole milk powder using the auction during its first year, which was about 10 per cent of the company's exports from New Zealand.
International dairy prices were bouncing around the bottom of a cycle and, along with demand, were expected to remain flat during 2009 and improve in 2010, Wickham said.
"And there's increased uncertainty in the market because of the recent announcement of US subsidies and talk of European retaliation."
More at NZ
Herald.
Affco's
interim profit soars as lamb prices rise (28 May 09)
Affco Holdings Ltd today posted a $15.29 million net profit for the six months to March 31, up 52.8 percent on the same period last year, boosted by rising international prices for lamb.
"The increase in turnover and profitability is a reflection of higher market returns, and continued improvement in operational performance," said
chairman Sam Lewis.
It was based on a 17.98 percent lift in revenue, to $588.25m. The company's net
profit before tax was $21.82m -- was an $11.44m improvement over the same period
of 2008 -- and tax costs were $6.52m.
Earnings per share for the half year were 3.03c/share (1.98c previously).
The company's main shareholder is Talley Group Ltd.
Last November Affco posted a net annual profit after tax of $60.194 million --
a significant boost the previous year's profit of just $1.2 million, but noted
it comprised $40.8m from trading activities and $19.4m from sale of shares in
its dairy arm.
Since then its stake in Dairy Trust Ltd has fallen from 44 percent to 35.5 percent,
and the venture's contribution to profits has fallen from $1.09m to just $83,000.
More at National Business Review.
Sanford
reports strong revenue growth (27 May 09)
Fishing company Sanford has reported a 26.4 percent fall in bottom line interim
profit but has held its dividend at 9 cents a share.
The bottom line profit of $25.95 million in the six months to March 31 compared
with $35.293m in the same period last year.
Operating earnings increased to $43.6m from $35.5m.
Both were achieved on a 4.7 percent increase in revenue to $228.441m.
Last year the bottom line profit was boosted by a one-time gain of $20.6m. This
year the company had a charge of $1.1m from a revaluation of an investment in
High Liner Foods Inc.
The impact of foreign exchange on earnings turned around from a loss of $2.1m
last year to a gain of $6.5m this year as the New Zealand dollar declined.
Commenting on operating earnings, the company said contributions from deepwater
and aquaculture operations more than offset declines in returns from inshore
and international fishing.
More at National Business Review.
Fonterra's
dairy payout down to $4.55 (27 May 09)
Low international dairy prices and the exchange rate have pushed Fonterra to forecast a reduced payout next season of $4.55 per kilo of milksolids.
This season it is due to pay out $5.20 a kg. Fonterra farmers received a record $7.90 in the 2008 season, averaging over $800,000 per farmer. The 10-year average before that season was $4.60 a kg.
Fonterra is the world's biggest dairy exporter and accounted for 25 per cent of our national exports in the year to May 2008.
Co-operative chairman, Henry van der Heyden, said a volatile currency and continued uncertainty in international dairy markets made forecasting "extremely difficult and a constant challenge in the current environment."
"We were looking at a forecast over $5 when the Kiwi was at 50 cents but the rebound means we're now working with a dollar that's 10 cents higher. And, just this week - at a time when we've been seeing some tentative signs of recovery in the global dairy market - the US Government has announced export subsidies for their farmers, which is bad news for our farmers," he
said.
The opening forecast payout for the 2009/10 season - beginning June 1 - of $4.55
comprises a milk price of $4.10 and value return of 45 cents per kg.
This compares with a forecast milk price of $4.75 and a value return of 45 cents
in the current 2008/09 season.
More at NZ
Herald.
 Alcopops
maker looks at pulling production back to NZ (26 May 09)
New Zealand's Independent Distillers Group says it is looking at moving its Australian
manufacture of popular alcohol mixed drinks such as Vodka Cruiser and Woodstock
Bourbon to this side of the Tasman.
Founded in Auckland in 1987 as Independent Liquor (NZ) Ltd, Independent Distillers
Group is a privately owned manufacturer distributing alcoholic beverages worldwide.
It makes beer, wine and spirits but its core business is its own ready to drink
(RTD) brands and warned today that a tax hike on such "alcopops" in
Australia is risking job losses there.
The company has a factory in Laverton in Melbourne's west, but executive Peter
Murphy today warned that Australia's 70 percent alcopops tax hike had sparked
a sales downturn that has already cost 23 jobs.
The Laverton facility is the group's only factory in Australia and it was considering
moving production to New Zealand, he said.
"That will cost 135 working Australians in the western suburbs of Melbourne their
jobs."
Mr Murphy said the tax was responsible for a 30 percent sales slump.
He said alcopops represented only 6 percent of the total alcohol market.
"To put a tax on that small portion of the market will never have an impact on
binge drinking," he said.
"We have been singled out. We think it's a much more sensible approach to address
this issue across he whole industry and tax all products equally."
More at National
Business Review.
Zespri
holding firm in face of recession (22 May 09)
Kiwifruit export marketer Zespri expects grower returns from green kiwifruit to hold steady for the 2009/10 year while gold fruit returns would "continue their upward trend".
Grower-owned Zespri said today that indicative returns for green kiwifruit in 2009/10 were between $6.70 and $7.20 a tray, compared to an actual return for 2008/09 of $6.98.
For gold kiwifruit the indicative range was $11.20 to $11.70, compared to the actual figure for the previous year of $9.70. For green organic fruit the indicative range was $8.70 to $9.20, compared to the 2008/09 return of $9.27.
The indicative figures did not include a loyalty payment of 15c a tray, which Zespri said its board expected to pay.
Zespri chief executive Lain Jager said the usual growth in demand
for green kiwifruit, the largest category in the company's portfolio, was not
being seen, due to the global economic environment.
Zespri today reported consolidated net profit of $23.9m for the year to the end
of March. That was 21 per cent ahead of the previous year due to an increase
in global kiwifruit sales.
Net global kiwifruit sales increased 25 per cent from $1.164 billion in 2007/08
to $1.451 billion in 2008/09. New Zealand-sourced kiwifruit volumes sold increased
by 8 per cent to a record 100m trays, Zespri said.
More at NZ
Herald.
 Expensive
UK 'manuka honey' a "rip-off" (22 May 09)
A New Zealand manuka honey producer has offered to test a British "rip-off" of
manuka honey for the active ingredient, amid reports consumers are paying £55
($145.54) a jar for the product.
Beekeepers at Tregothnan estate in Cornwall have imported manuka plants
from New Zealand to produce their own version of medicinal manuka honey.
Kerry Paul, chief executive of honey health science company Manuka Health New
Zealand, said today he was incredulous at the gullibility of British consumers.
He offered to test the Cornwall honey for levels of the active ingredient.
"If consumers are expecting that honey to have the antibacterial properties which
genuine manuka honey is famous for, I'm afraid they will be disappointed," he
said.
"The natural compound methylglyoxal (MGOb) is the active antibacterial ingredient
in manuka honey, but it is not present at sufficient levels in all manuka honey.
"If someone cares to send us an unopened jar of the Cornwall honey, we will have
our lab test it."
Mr Paul said he had seen a photograph of a pot of the Cornwall honey on a British
newspaper website and could tell it was not manuka honey from the colour.
He doubted there was much manuka honey in the pot, which he said looked like
it came from "mixed sources".
"Sadly, this is yet another rip-off of genuine manuka honey which consumers around
the world need to be alert to," Mr
Paul said.
More at NZ
Herald.
 Price
rises likely: Lion Nathan (20 May 09)
Brewer Lion Nathan is warning further price rises are likely this year to recover
significant historic cost increases.
Reporting its half-year results today, the Australian-based company said a price
increase in this country in March would only alleviate some of the cost pressures
and partially restore beer margins.
Beer raw material costs, particularly aluminium, sugar, barley, glass, and energy,
had risen significantly in recent years and well ahead of the consumer price
index, Lion Nathan said.
In New Zealand, domestic beer volumes held steady for the six months to the end
of March, at the same time as some consumption was moved to higher value brands.
Total volume in this country, including beer, wine, spirits, and ready-to-drinks
(RTDs), edged down 0.4 percent to 105m litres. Net sales revenue was down 0.6
percent to $324.2m.
The company said its New Zealand business had been able to gain ground through
innovation and mix improvements in beer, helped by volume gains in wine, spirits
and RTDs.
Domestic beer volumes held steady despite the comparable period a year earlier
benefiting from the timing of Easter and a hot New Zealand summer.
In the latest half year consumers migrated to "step up" and premium beers.
"Much of this movement to higher value brands was due to recently launched brands
Steinlager Pure and Speight's Summit. In addition, Steinlager
Classic returned to growth," the
company said.
Its Auckland brewery project was well under way, with the brewhouse now being
built, after which packaging and distribution equipment would be installed.
It was anticipated Auckland operations would be fully moved to the new facility
in 2011, with total projected spending on the project remaining at $250m.
More at www.stuff.co.nz.
Fonterra
plans to double its online dairy sales (19 May 09)
Fonterra plans to double commodity sales on its internet platform
globalDairyTrade.
"We plan to increase volumes and introduce new products," said Kelvin Wickham,
managing director of the globalDairyTrade operation, which sells about $NZ1 billion
of whole milkpowder on the platform annually.
The auctions were announced last July as a response to increased price volatility
in international markets.
At present the company sells only about 10 percent of its product online -- all
full cream milkpowder -- and Mr Wickham said the expansion of internet sales
will deepen the market.
It plans to boost this to 20 percent of its NZ-sourced product.
Mr Wickham said Fonterra was also looking for other international dairy companies
to join the auctions.
It was better for industry players to have some say in the development of tools
for farmers and customers to moderate risk, because otherwise changes could be
dictated by non-dairy parties speculating on commodities.
Subsidies and support systems mean farmers don't get the right signals from
the market.
To survive in a rapidly changing and volatile environment both customers and
producers required a transparent market where all parties have access to a valid
market price.
More at National
Business Review.
 Thinking
small tastes sweet to food firm (18 May 09)
A supplier of ingredients to the food industry has opened up a whole new market
for itself by thinking small.
Penrose-based industrial-scale ingredient supplier Hawkins Watts, was constantly
getting
inquiries
from
artisan
food
producers
who struggled to access ingredients
in the smaller quantities they needed.
They didn't want to buy citric acid in 25kg bags or liquid lecithin in 200kg
drums, director Paul Harrison said.
Hawkins Watts spotted a gap in the market and two months ago launched online
supplier ingredientStop. "Previously it's been hard
to supply a lot of the specialty pectins that you need for, say, low-sugar
jam or for spreadable jam ... in suitable quantities."
Other than the big industrial-size lots the small producers could until now buy
only
costly
small packets from the supermarket. "We've pitched it with 5kg packs."
Harrison said the documentation such as nutritional labelling and food safety
requirements were the same no matter what size pack was being sold, so ingredientStop had worked on streamlining the process. "What we've done is put together
a special template that has all that information."
It had also put technical information and tips for product use on its website.
More at NZ
Herald.
Cedenco
'unaffected' by owner's problems in US (12 May 09)
Cedenco Foods said it is "business as usual" even though a company owned by its US owner has filed for protection under US bankruptcy law.
Cedenco has the largest tomato processing factory in the Southern Hemisphere in Echuca in Victoria.
It is one of New Zealand's biggest vegetable processors, with two Gisborne factories, a processing plant at Whakatu in Hawkes Bay and a business in Ohakune.
On Thursday, SK Foods said it was preparing to start voluntary chapter 11 bankruptcy. Under this kind of bankruptcy, companies can continue to trade.
Both SK Foods and Cedenco are owned by a family trust in the United States, according to New Zealand Cedenco manager Richard
Lawrence.
"We do operate completely separately with separate banking, governance and management," said Lawrence.
"It is business as usual for Cedenco. It has been a pleasing year, coming after two very difficult years, and we are forecasting a much better result against budget."
SK Foods is a privately-held company with more than 400 full-time employees and
2500 seasonally-employed workers.
More at NZ
Herald.
Honey
industry in-fighting condemned (10 May 09)
The intense flavour of dark manuka honey was once so disliked it was
added to cattle feed or flushed away.
Today it earns such a premium on the export market that fake manuka honey has
become a serious problem - industry sources say twice as much manuka
honey is sold than is produced in New Zealand every year.
Instead of dealing with the problem, the $100 million industry is gripped by
bitter in-fighting and legal feuding, a situation so serious that
National MP Paul Hutchison has called on industry leaders to set
their differences aside before the business is tarnished beyond
repair.
"The industry leaders must think of the collective good," he said. "The present
situation is not good for anyone and it puts New Zealand's reputation at risk."
Underlying it all is the question of what makes manuka honey so special an antibacterial
quality claimed to have health benefits and known, by the industry body at least,
as Unique Manuka Factor, or UMF.
The warring goes back to a decision last year by the Active Manuka Honey
Association to step up testing to quietly identify honey producers among
its membership whose
product was not true to the UMF label.
One of those targeted, manuka honey producer Watson & Son, saw the move as
a commercial conspiracy by the association and three companies with directors
on its executive: Comvita, Golden Hills New Zealand and Honey New Zealand. University
of Waikato professor Peter Molan, who
discovered manuka honey's antibacterial properties, has now broken publicly
with the association and says the testing behind the UMF brand is unreliable,
a damaging
claim as he was the man who devised the
tests in the first place.
Waikato University plans to unveil its own testing regime and quality mark in
the next few weeks.
Molan said the move was designed to save the industry and create a trusted quality
mark that the AMHA did not control. "We are going ahead just
to get some independence on this," Molan said.
But Comvita and Honey New Zealand, the two biggest producers, both remain backers
of UMF, and have called on other producers to back the AMHA.
More at Sunday
Star Times.
Zespri
carbon cuts to save $17 million plus (7 May 09)
Zespri’s implementation of its carbon footprint research will lead to savings
well in excess of $17 million a season, the company says.
Last month the company announced the results of its study to measure the carbon
footprint across the lifecycle of New Zealand kiwifruit, based upon the UK
PAS 2050 carbon measurement tool (BSI: The British Standards Institution).
Using a typical export sale to Europe, the study investigated the carbon footprint
at each part of the supply chain, including Orchard Operations (17% of emissions),
pack-house and cool-store processes (11%), Transport (41%), Repacking and Retailer
emissions (9%) as well as Consumer Consumption and Disposal (22%).
This study was conducted in association with the New Zealand Ministry of Agriculture & Forestry,
Landcare Research, Massey University, Plant & Food Research (formerly HortResearch)
and Agrilink, with Zespri selected as the lead partner for the horticulture sector.
NBR has now obtained specific figures of the estimated savings to be made.
Zespri estimates that it will save $NZ5 million per annum across the entire industry
by instituting LEAN manufacturing, a new process management philosophy that trims
waste.
As the benefits are fully captured over time, this figure will rise to $10 million.
The company’s improved pack efficiency is expected to save another 3-4 million
per year, by cutting down on storage space, freighting and other efficiencies.
More at National
Business Review.
 Tiddly
Poms lap up our sav (6 May 09)
Sales of New Zealand sauvignon blanc have rocketed 370 per cent in the past
fortnight at UK supermarket giant Tesco, making it the chain's best-selling
wine variety. ACNielsen figures also show a huge spike in sales in the past
12
weeks.
The success, experts say, is down to a bumper harvest and the vagaries of the
financial markets.
As the pound loses ground against the euro, the price of European wines has risen.
But the low Kiwi dollar gives our wines an edge, bolstered by a plentiful
supply.
"Many of our markets have been supply-constrained simply because we didn't have
the wine," New Zealand Winegrowers chief executive Philip Gregan said. "Now we're
seeing the upside to greater availability."
Last year's grape harvest was up 39 per cent on 2007, and quality continues to
improve as vines mature and winemaking methods are refined.
The British market was worth nearly $200 million to Kiwi wine exporters last
year.
Delegat's Group managing director Jim Delegat said Britons were now turning to
premium Kiwi wine rather than sparkling wines and Champagne.
But he warned that supply had to keep in step with demand.
The average price for New Zealand wine sold in Britain rose 8 per cent in 2008
to 6.47.
Oyster Bay is New Zealand's leading premium wine brand in Britain and features
in the top 15 of all wine brands sold there.
One in every eight bottles of wine sold in Britain for more than £5 is
from New
Zealand.
More at Dominion
Post.
Zespri
drops $80m as euro, yen strengthen (5 May 09)
Kiwifruit export marketer Zespri has taken a hit of up to $80 million on foreign
currency hedging in the last financial year.
Its annual report, due next month, will show a net foreign exchange gain of $150
million to March 31, but the result is markedly worse than the $230m it could
have been because of a maximum $80m loss from hedging against a stronger than
expected yen and euro.
Zespri corporate and grower services director Carol Ward would not give the precise
amount of the hedging loss but the co- op's chief financial officer, Mervyn
Dallas, said it was up to $80m.
Zespri's hedging policy showed it was about $100m out of the money at the start
of March when the yen was hedged at a rate of 65 to the New Zealand dollar but
the kiwi strengthened against the yen before the end of the month.
Zespri's board changed its hedging policy in November 2007 but did not tell growers.
Ms Ward said this had not added to the drop in gains but acknowledged it would
have been a good idea to have kept growers in the loop.
More at BusinessDay.
 FMCG publisher
in liquidation (1 May 09)
Liquidator Gerry Rea Partners has been appointed to magazine publisher 3Media
Group. 3Media specialises in the business-to-business market. Its 15 magazine
titles include AdMedia, C-Store, Foodservice, In My Kitchen, New Zealand Management,
NZ Marketing Magazine and FMCG. 3Media was formed in 2007 through
the merger of Review Publishing, Profile Publishing and Marketplace Press. The
company's directors are Reg Birchfield, Raymond Little and Peter Mitchell. FMCG magazine
is New Zealand's 'leading food and beverage manufacturing and supermarket magazine',
which several years ago merged with Grocers’ Review, whose publishing
origins
go
back
to
1921.
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