Organic dairy co-op files for liquidation
A co-operative touted as New Zealand's only 100% farmer-owned organic milk producer has gone bust.
Speaking at a PGP seminar in Wellington last week, Proudfoot ranged widely over what NZ needs to do to establish a successful and profitable niche in global markets.
He noted that no country can ever be famous for its commodity products.
“You can be a well respected commodity producer, but fame comes from being the Louis Vuitton or the Rolex -- the brands that stand out,” he says. “We are not the Rolex or Louis Vuitton of the food industry – the exception may be Zespri. We are world famous for rugby, not our food.”
NZ must inject more passion and emotion into its food sector, including getting farmers involved; telling the story about its food and making the link between farmers and consumers is a critical part of this process.
“There is an interesting comparison between NZ and French dairy farmers. They are largely inefficient, subsidised, probably quite grumpy therefore often staging large protests to the government about things that affect them. But they are passionate about the milk they produce, the cheese it becomes and the experience it delivers and as a consequence they have world famous cheeses.
“Our dairy farmers are highly efficient and passionate about their farms. But their passion ends once the milk is in the tank and it becomes Fonterra’s or Westland’s or Synlait’s problems,” he says.
Proudfoot says as a consequence NZ has no connection between farmers and consumers and this has to change.
Looking to the future, Proudfoot says NZ has to look at consumer and lifestyle trends and find ways to meet those. For example, he says with people commuting long distances to work, more will eat on trains, so providing high quality nutritious on-the-go convenience food is a need.
Three key consumer groups need to be targeted: millennials, the aged and urban consumers.
“Particularly we need to look at millennial consumers who are now just coming to an age when they are having kids and starting to unlock a whole new range of expectations.
“Most older people are suffering from some chronic health disorder but have the money to buy food to help them.
“Then there is the urban consumer. NZ needs to invest so that it can better align itself with these consumers,” he says.
Proudfoot says there is an urgent need in NZ to close the gap between rural and urban societies. This is the key to developing an NZ story embraced by everyone.
“Sadly, there is no pan leadership in the primary sector. We need a vison and an aspirational goal similar to what the Irish have with their Origen Green,” he says.
