Season's first kiwifruit China bound
Zespri's first charter shipment of the 2024 New Zealand kiwifruit season is on its way to Shanghai.
T&G Global wants to continue its transformation towards becoming the world’s leading, premium fresh produce company, says chief executive Gareth Edgecombe.
However, it was not without its challenges, he concedes in the company’s annual report.
“Over the past few years, our financial performance has been weak, with market forces putting pressure on our operating model and our investments for the long term yet to see yields.
“To unleash our full potential, we had to evolve. This hasn’t been easy and some of the decisions we’ve made have been tough, but they were needed.”
He claims the company is now one year into its three-year roadmap for growth, with “many green shoots are coming through”.
In the year to December 31, 2019 the operating profit increased to $16.5 million, from $15.6m million in 2018. Revenue was maintained at $1.2 billion and profit for the year $6.6 million, compared to $8.3 million in 2018.
Strong sales and margin growth were achieved in key export markets, including Asia, Australia, the United States, United Kingdom and Pacific Islands, says Edgecombe.
An “enviable” premium position was built in the United States for Envy, with sales revenues increasing by 43%.
The transition continued to premium apples, including the re-planting of some orchards.
“While this has had a cost impact, it’s vital for setting us up for the future,” says Edgecombe.
The company divested low returning or non-core assets to use cash more productively and re-invest it into capability and infrastructure to support our future growth. This included the sale of its Mt Wellington site in Auckland for $65 million.
T&G is harnessing its vertical model strengths to develop two new categories – blueberries and grapes.
“We’re one year into this plan and expect it to take another few years to see the value. We see a strong future for these emerging categories.”
The company is boosting its in-market sales presence in Asia and moving globally towards a world-class sales model.
Edgecombe says the International Produce division had a strong close to the year, increasing revenue by 14%, to $305.1 million, largely driven by its Asian trading business boosting revenue by $40.6 million.
“A critical aspect of realising the potential of our Apples division is the increased focus on premium varieties. In 2019, this saw us re-planting some orchards which, while vital for setting us up for the future, had a cost impact,” says Edgecombe.
“In the United States, as a result of bolstering our sales and marketing expertise and an integrated activation programme, we accelerated the growth of our premium apple brands, delivering 43% growth in Envy sales.
Meanwhile, favourable growing conditions in NZ throughout 2019 resulted in an abundance of supply.
“This adversely affected sales values across most product groups, resulting in a 2% decline in revenue for our New Zealand Produce division, to $227million.”
Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.
Telco infrastructure provider Chorus says that it believes all Kiwis – particularly those in the rural areas – need access to high-speed, reliable broadband.
World Veterinary Day falls on Saturday 27 April.
The Director General of MPI, Ray Smith says it's important for his department to celebrate the success of a whole range of groups and people around the country.
A small company which mobilised veterinarians around the country to deal with Mycoplasma bovis was one of the winners in this year's Biosecurity Awards, held at Parliament.
One of the country's top Māori sheep and beef farms is facing a five-year battle to get back to where it was before Cyclone Gabrielle struck just over 14 months ago.
OPINION: The new government has clearly signalled big cuts across the public service.
OPINION: Your canine crusader is not surprised by the recent news that New Zealand plant-based ‘fake meat’ business is in…