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Cost of marketing online set to drop for Kiwi food exporters

New Zealand food exporters are expected to benefit from access to a Google platform which makes it easier to compare prices of products according to a local marketing expert. Managing director of Pure SEO Richard Conway says the introduction of the Google Shopping platform to the New Zealand market will allow users to search for products on online shopping websites and compare prices between different retailers – ultimately making it easier to save money. “Kiwis using Google may have already started to find a ‘carousel’ of images of products and their prices at the top of the search results. “What used to be a manual process of opening each site and checking for the correct product and lowest price will now take a fraction of the time,” says Conway. “Most consumers don’t search past the first page of search engine results but this ‘prime real estate’ is often dominated by those businesses with the largest marketing budgets – not necessarily the lowest prices,” he says. Conway says recent research into New Zealand shopping habits found that more than half (53%) of shoppers compared products and pricing online before purchasing. The research also found search engine results were the most popular online source of pre-purchase information with almost four in ten (39%) consumers using them. He says in addition to businesses targeting the domestic market, many New Zealand exporters will also benefit from the introduction of Google Shopping as it makes it more cost effective to reach global markets. “What this will mean for Kiwi businesses is a levelling of the playing field against dominant larger competitors. “As the cost to reach each consumer comes down, those Kiwi businesses which sell direct to consumers will find it easier to compete with the marketing spend of larger players,” he says. Conway cites the […]

Farm environmental awards highlight sustainability

Sustainable farming across the Horizons Region has been highlighted at the Ballance Farm Environmental Awards (BFEAs) this month. The BFEAs are an annual awards programme which recognise and celebrate farm practices that promote sustainable land management in 11 regions throughout the country. Horizons Regional Council sponsors an award at the BFEAs each year as they align well with the Council’s land management goals. “On behalf of Horizons I’d like to congratulate all of the farmers who achieved awards in their respective categories,” says Grant Cooper, Horizons land manager. “As a member of the judging panel I’m always impressed with the standard of applicants. It’s really satisfying to see so many landowners thinking about how they can apply sustainable practices that benefit not only the environment, but also their production.” Horizons councillor Pat Kelly presented the Horizons Regional Council Award for the Integration of Trees on the night. This was won by Ross Collier of Pentwyn Farms, Rangiwaea. “This award recognises a farmer who has planted trees to improve the sustainability of their property and encompasses soil erosion prevention, biodiversity, stock well-being, and aesthetics,” says Cr Kelly. “The judges were impressed with Ross’ awareness of soil types, conservation and erosion risk. His acknowledgement of these possible environmental impacts has lead to an extensive pole planting and riparian fencing programme to protect water quality.” Ross Collier says he considers soil and people to be “the two most important assets” on his farm. “My parents started planting when they moved here not long after I was born and I’ve just carried on. It’s a harsh climate at times but planning ahead, such as planting crops to combat zero winter growth, minimises soil damage and maximises production possibility.” The BFEAs were held on 16 March in Palmerston North and Pongaroa sheep and beef farmers […]

Dairy – The new cream of choice in China

For chefs across China, it’s out with the old mock cream and in with the UHT cream as Fonterra ups capacity to meet growing demand. UHT cream, one of Anchor Food Professionals top selling products, is fast becoming the cream of choice for chefs in China and other parts of the world as they look for a product that has the freshness of pure dairy, won’t over whip and holds its shape for longer. In the picture: Chief Director Anchor Food Professionals China Chef team, Teoh Joo Cheong, using more dairy every day. Fonterra has recently completed a new one litre UHT line at its Waitoa site. However, with continued growth, the Co-operative has already begun construction on a second line which will produce an additional 45 million litres each year for consumers across Asia, the Middle East and the Caribbean. Fonterra Director Global Foodservice, Grant Watson says it’s an exciting time for Fonterra as more people – particularly in China ¬– dine out on Western style cuisines. “People can taste freshness, and that’s what people are developing a preference for, particularly in China where dairy is really starting to take off. What our customers experience when they buy our products is a taste of pure New Zealand dairy – grass-fed and nutritious.” Fonterra grew its combined consumer and foodservice volumes in Greater China by 48 per cent in FY16, a figure Mr Watson says makes Fonterra an industry leader. “Our global foodservice business is growing at three times the rate of the rest of the global foodservice industry, which is testament to the popularity of New Zealand dairy in some of our biggest markets,” Mr Watson says. Fonterra Chief Operating Officer Global Operations Robert Spurway says the two new lines will more than triple the site’s capacity of […]

Alibaba and blockchain technology to drive food safety and quality

Alibaba (Australia) Company Pty. Ltd. will engage PwC firms in New Zealand, Australia and China to provide services and advice relating to Alibaba’s intention to build greater trust in food—right across the supply chain. A memorandum of understanding was signed today setting out Alibaba’s intentions and the involvement of Fonterra and NZ Post. The signing of the agreement took place at a ceremony at PwC Tower in Auckland. The aim of the partnership is to develop a framework to lead food quality and safety standards and provide the basis for improvement in food trust practices and integrity. It is envisaged that this framework will be piloted in Australia and New Zealand and form the basis of a global supply chain model that will be applied across all of Alibaba Group’s markets. The project will enhance traceability models and introduce new technologies to stop the production of counterfeit and fraudulent food products. This will include the development of a pilot blockchain technologies solution model to be used by participants across the supply chain. Blockchain technologies, often referred to as the “internet of trust”, were originally developed to publicly and irrefutably track the transfer of Bitcoin and other cryptocurrencies. These technologies authenticate, verify, permanently record and provide ongoing reporting in relation to the transfer of ownership and providence of goods, and are now finding much wider application in many different industries. Speaking at the signing of the ceremony, Maggie Zhou, Managing Director of Alibaba Group Australia and New Zealand, said: “Food safety and quality is a serious global issue that not only costs the food industry billions every year, but puts consumers’ health at risk. The signing of today’s memorandum is the first step in creating a globally respected framework that protects the reputation of food merchants and gives consumers further confidence to […]

Pressure Mounts on Parliament to Support GM Free Growing Regions

A group of exporters and growers from Pure Hawke’s Bay used the “Taniwha Dragon” summit as an opportunity to promote the economic benefits of keeping Hawke’s Bay GMO Free. Speaking at the summit, one of Hawke’s Bay’s largest growers and exporters, John Bostock spoke about positioning Hawke’s Bay produce at the premium end of the market place. “Quality branded premium products are Hawke’s Bay’s future. The government aims to double exports by 2025, but we will never do it by producing more low end commodities. We must sell at the top end,” said Mr Bostock. “GMOs have no place in that mix and are associated with low end commodities such as soya and feed maize. We are very lucky that we have not released any GMOs into the outdoor production system and we need to keep it that way.” In a speech to ministers Mr Bostock said he had just been in Europe at the world’s largest fresh produce trade show. “I have just got off a plane from Europe, but while I was there speaking to customers, it’s clear that anyone working in the market place knows that GMOs have no future for us. I have been talking to EDEKA, the largest retailer in Europe with 12,000 stores. They were stridently clear and told me anyone who gets involved with GMOs will not be allowed to supply EDEKA.” In a recent campaign launched by Pure Hawke’s Bay, GM Free growing regions are calling on the Māori Party not to support the environment minister’s bid to prevent Hawke’s Bay from protecting its GM Free growing status. GM Free Growing regions in Hastings District, Far North, Whangarei and Auckland are all under threat if the Māori Party backs National on this. The changes Environment Minister, Hon. Nick Smith wants to introduce […]

GMP Dairy to develop Chinese market further

The current dairy business climate is both challenging and promising, because regulations on infant formula are still very sticky and unclear. However, Evergrande Group’s investment into GMP Dairy Limited’s business has given the company more opportunities. Evergrande Dairy chairman Mr Xu Wen has mentioned before the group, which had turnover this year of 131.5 billion Chinese Yuan and has 475 billion Chinese Yuan in assets, was attracted to invest in New Zealand because of its strong reputation for food safety. Evergrande has a large team in China to provide innovative marketing and distributing strategies, which has given GMP Dairy Limited more confidence in developing the China market further. On the 12th of June, 2015, GMP introduced their premium infant formula brand, Opobaby, at the Aotea Centre, Auckland Town Hall. Economic Development Minister Hon Steven Joyce, MP Jami-Lee Ross, Economic and Commercial Counsellor of the Chinese Embassy in NZ Mr Zhang Fan, along with Evergrande Dairy Chairman Mr Xu Wen officially launched Cowala Superpremium Opobaby Infant Formula. Evergrande Group is a massive Chinese conglomerate, which started out in real estate and has diversified into a range of other businesses including fast moving consumer goods. In October, Evergrande launched its infant formula brand Cowala in China where it made its first appearance in a Chinese Super League football match when the successful Guangzhou Evergrande team, part-owned by Alibaba boss Jack Ma, wore Cowala baby formula-branded shirts. The team officially launched the new Opobaby brand in China after a match late last month. A unique competitive point of difference for Cowala Infant Formula is the world-first patented traceability technology on the cans that allows consumers to use their smartphones to scan a barcode telling them the milk powder’s history. There is even an x-ray picture of the contents. Further research and development have […]

Predictions for sustainable foods in 2017

Organic foods The market share of organic foods is expected to approach 7-10 percent in the US, Germany, Switzerland, Denmark and neighbouring countries. With growth in organic farmland slowing, supply shortfalls are expected. Eco-labelled foods – Fairtrade will retain its position as the second largest eco-label for food products, however fragmentation will continue: more fair trade labels and standards are envisaged. As will be shown in 2017 editions of the Sustainable Foods Summit (www.sustainablefoodssummit.com), other eco-labels are gaining traction in specific product categories; for instance, Rainforest Alliance for agricultural commodities, and Marine Stewardship Council for seafood. Sustainable sourcing – the market share of sustainable sourced ingredients is expected to rise. Roughly 20 percent of all coffee is now produced according to some sustainability scheme. The share of sustainable sourced tea, cocoa, vanilla and sugar is expected to increase as large companies – such as Barry Callebaut and Givaudan – make ethical commitments. Sustainability metrics – metrics are likely to become prominent in the sustainability programmes of food and ingredient companies. Whilst carbon and water footprints are still the most popular metrics, expect to see more metrics for energy, resource usage, waste, and social parameters. More natural & organic food companies are envisaged to make carbon neutral and zero waste pledges. Food authenticity & traceability – Greater investment is envisaged in ingredient supply chains to provide transparency and to reduce risks of food fraud and adulteration. Non-GMO labelling schemes are expected to continue to gain popularity in North America, although the GM labelling bill has been passed. Retail sales of Non-GMO Project Verified food sales are predicted to exceed $20 billion in 2017. Waste impacts – as food waste rises on the sustainability agenda, more food companies and retailers will make waste reduction pledges. Food byproducts will get greater recognition as […]

Fonterra says UK needs open trade policy

Open markets encourage investment, increase competitiveness, and allow for more consumer choice and product innovation in the dairy industry, said Fonterra’s Trade Strategy and Stakeholder Affairs Manager, Dr Francis Reid. This was the message he delivered to an audience at the Semex Dairy Conference in Glasgow, ahead of Brexit – or the formal triggering of the UK’s withdrawal from the European Union, in March. He said that Fonterra and New Zealand were examples of the success of open market policy. His talk came amid warnings of a growing protectionist movement globally. Dr. Reid spoke to New Zealand’s economic prosperity that has emerged over a period of economic liberalisation. He noted that in the early twentieth century the UK was NZ’s largest trading partner and the main market for NZ’s dairy exports. This changed when the UK joined the European Economic Community (EEC), also known as the Common Market, in 1973, which resulted in New Zealand losing its preferential access to the UK. Dr. Reid told the audience that following the end of that close trading relationship, NZ suffered severe economic shock. Initially, to counter that, New Zealand adopted protectionist trade policies, including coupled subsidy payments for farmers and a highly controlled economy, to manage the risks that this change brought. He said that eventually New Zealand opted to deregulate its economy, open its industries up to competition, remove subsidies, and pursue a policy of free trade. These policies have laid the foundations of New Zealand’s current economic prosperity and growth. The message for a post-Brexit Britain, Dr. Reid told the audience, was that open markets and pro-competition policies drive economic growth. He said if New Zealand and the UK could establish an open trading and economic relationship post-Brexit, then both countries could build upon the relative strengths of each market, […]

Agrigate to revolutionise farm performance

Waikato dairy farmer Bill Aubrey believes Agrigate, the new online tool, will be revolutionary in helping farmers improve their farm performance. Developed by Fonterra Farm Source and LIC, Agrigate combines all the key data farmers need to make faster and smarter decisions on one, easy to use online dashboard. LIC Chief Executive and Agrigate Chairman Wayne McNee says “having data in one place and working in real time makes it easier to make comparisons, see trends and make better management decisions. A key outcome will be enabling farmers to make the most efficient use of their resources – which is important in both tough and better times.” Fonterra Farm Source Chief Operating Officer Miles Hurrell says “the ultimate goal of this project is to support our farmers by giving them a tool to help maximise their on-farm performance, productivity and profitability. As a simple, easy-to-use tool Agrigate is a great example of dairy industry innovation. It allows farmers to identify areas of their business where they are performing well and areas where improvements can be made.” Agrigate has been designed to help farmers plan ahead, using existing data to assess the interaction between different on-farm factors, such as weather conditions, animal health, milk production, financials, pasture cover and fertiliser applications. Agrigate will help farmers track what effect each factor has on the others so that they can plan accordingly. For example, farmers will be able to see what impact factors like herd size; milking frequency and fertiliser use have on pasture cover, milk volume and quality, and milk solids production per hectare. Agrigate will also allow farmers to benchmark these farm factors on a scale that they haven’t been able to in the past, a feature that has impressed Bill Aubrey. “I can compare past and present, regional and national […]

Patties invests in Leader Products

And creates a market-leading food manufacturing group across Australia and New Zealand. Patties Foods Limited (“Patties”), an iconic Australian food manufacturer, has announced the acquisition of Leader Products (“Leader”), a manufacturer of quick, easy, delicious frozen convenience food products based in New Zealand. Leader was established by Tony Peterson and Richard Crabb in 1998 and over the last 18 years the business has emerged as the market leader in New Zealand in addition to exporting to Australia and Asia. The company is growing strongly and has doubled revenue in the past five years. Mr. Peterson will continue to drive the company’s growth strategy in his role as Managing Director and will maintain a stake in the combined business. Leader’s product range includes meatballs, burger patties, toppas, finger foods and meal solutions under the brands Leader, Tony’s Tucka and Kauri Coast. Leader supplies grocery retailers, distributors, sporting stadiums, convenience stores, cafes, hotels, restaurants and caterers in New Zealand, Australia and Asia. The company is the market leader in innovation and new product development in the frozen food product sector. Paul Hitchcock, CEO of Patties, said that Patties and Leader were natural partners – both focused on manufacturing high quality frozen foods known and loved by customers. Iconic brands in the Patties portfolio include Four’n Twenty, Patties, Herbert Adams, Nanna’s and Chef’s Pride. Mr. Hitchcock said: “We are delighted to be joining forces with the Leader team. We believe the combination of Patties and Leader will provide significant growth opportunities for both companies given our complementary savoury meals and snack products, manufacturing operations and sales footprints. This deal will create a market-leading food business across Australia and New Zealand. “Leader is a great New Zealand success story and we are very keen to support the team in their continued growth. For example, […]

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