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e-pānui
Issue two • October 2018
Editorial Highlights
Ko tēnei mihi ki a koutou katoa. Attract
NZ performs well in Gallup
Welcome to the second issue of e-pānui, the regional newsletter of Business
World Poll
Hawke’s Bay. Thank you to everyone who provided feedback on issue one;
we’re very pleased with the response and will be working hard to continue Shortages and uncertainty
to make e-pānui an interesting and informative read. affect business confidence
Hawke’s Bay is one of New Zealand’s major and news of Hikurangi Enterprises being
food producing areas; our produce is awarded New Zealand’s first medical Build
exported and enjoyed across the world. cannabis licence. Spotlight on Future Foods –
Agriculture and food and beverage Treasury special report
Alongside first-time contributions from
manufacturing accounts for 1-in-5 jobs in
Pan Pac Forest Products, Unison and Locusts and ants for
Hawke’s Bay and there are hundreds, if not Te Kāhui Ōhanga o Takitimu (Kia ora
thousands, more employed in supporting breakfast?
koutou!) there are articles about the boom
or complementary industries such as in flexible and co-working spaces, a new Napier Port contribution
engineering, construction, transport, logistics programme at EIT designed to support
and storage, hospitality and tourism. those who are entrepreneurially inclined, Introducing Te Kāhui
Ensuring that Hawke’s Bay produce continues Kiwibank’s decision to expand its Hawke’s Ōhanga o Takitimu
to be in demand here at home and across Bay workforce, and a profile of Business
the globe is the focus of our Future Foods Hawke’s Bay director, Hamish White.
Connect
conference, an event that brings together Please do read the contribution from Nigel New HBRC role to help
futurists, food experts and the food industry Bickle, head of the Provincial Development effective engagement
to talk about the trends, the opportunities Unit. Hawke’s Bay is head of the queue for with Tangata Whenua
and what we might be eating for dinner in funding, alongside other surge regions,
20 years’ time. The conference has a stellar yet collectively we’ve been slow compared
line-up of speakers and the programme to other regions to apply for our share of the Economic Indicators
will be sure to challenge beliefs, stimulate $3 billion in funding available over three years Hawke’s Bay and NZ
debate and invigorate thinking. If you’re to boost regional economic development. economic indicators
interested in attending the conference C’mon Hawke’s Bay, get your thinking caps
on Wednesday 31 October, tickets are still on and start applying to the PGF.
available and can be bought here. Events
Happy reading and please keep the Future Foods Conference
Not surprisingly, this issue of e-pānui has feedback and suggestions for Register now!
an increased focus on food and beverages, improvement coming.
including articles on hemp production from Private Equity Investment
Ngā mihi,
a pioneer in the industry, a special report Register now!
from Treasury on alternative proteins, Carolyn Neville
an update on the food innovation hub CEO, Business Hawke’s Bay The Future of Work
Register now!
To receive e-pānui direct to your
He aha te kai ō te rangatira? He kōrero, he kōrero, he kōrero.
inbox, email comms@businesshb.nz
(What is the food of the leader. It is knowledge. It is communication). with newsletter in the subject line.
1 Business Hawke’s Bay • 06 650 1711 • info@businesshb.nz ATTRACT • BUILD • CONNECT • businesshb.nz
Business Hawke’s Bay • e-pānui • October 2018
Economic Indicators
Hawke’s Bay and New Zealand
Net migration Hawke’s Bay achieves record Fuel prices lift retail card
eases back to 2015 level median house prices up 9.9% spending in August
(12 months to Aug 18) to $445,000 compared to 2017
NZ Job ads running 6%
Broad based growth as GDP ASB awards Hawke’s Bay ahead of last year
rises 1% in June qtr – strongest economy a 5 star rating off back
quarterly growth in 2 years of housing market and bumper
grape harvest
NZ terms of trade improve
Net 26% of Hawke’s Bay
55 HB building consents respondents in Colliers
worth $23m for new dwellings residential property outlook
in August, up 20% YOY and expect prices to rise in Grape harvest up 22% YOY
bucking national trend coming year
Hawke’s Bay climbs 10 places
Hawke’s Bay households the in ASB’s regional economic
most confident in the North scoreboard, now 3rd overall for
Island, expecting the regional June qtr
economy to prosper in the
coming year NZ business confidence
rebounds, with most indicators
A record year for cargo at showing signs of improvement
Napier Port – 5 Million tonnes
2 ATTRACT • BUILD • CONNECT • businesshb.nz
Business Hawke’s Bay • e-pānui • October 2018
Attract
Treasury warns migration is falling faster
than expected ‘posing a risk’ to growth
First published by Stuff In July, Treasury warned that falling
A pick-up in the number of Kiwis business confidence could force it to
trim the forecasts it presented in May,
heading across the Tasman has
if employers cut back on hiring
Treasury warning that falling migration and investment.
could become a drag on growth.
The latest report said that growth had
The monthly economic indicators report remained healthy, with retail sales in
from Treasury said that the population the June quarter stronger than it had
gains from net migration still remained the housing market as mortgage rates fall.
expected in the Budget, however it noted
strong, but were falling more quickly than that confidence had continued to fall, “The outlook for demand in the housing
predicted in May’s Budget. according to the latest ANZ survey. market is uncertain with the influence of
After peaking at an annual gain of 72,500 Government policies, such as loss ring -
“Business confidence remains fencing, foreign buyer restrictions, and
in the year to July 31, 2017, an all-time
high, the annual gain dropped to 63,779
a risk to business investment bright line extensions expected to weigh
in the year to the end of July 2018. and economic growth.” on housing demand. On the other hand,
Treasury also pointed to the Reserve strong, albeit slowing, population growth
“Recent declines have been driven, in part,
Bank’s last major monetary policy and low mortgage interest rates are
by a pick-up in departures to Australia,
statement, which indicated that the expected to support demand.”
which have started to rise above arrivals
from Australia,” Treasury said. official cash rate would stay low for To read the story in full click here:
longer than expected, which could boost http://bit.ly/2y9hvFo
Shortages and uncertainty
affect business confidence
Media announcement from NZ Chambers of Commerce, edited by BHB
Business confidence across central New Zealand is being affected by difficulties
finding the right staff and continuing uncertainty about Government policy, according
to a survey by the Wellington Regional Chamber of Commerce and Business Central.
Key findings: The survey included specific questions 62% of respondents cite general
designed to understand why businesses uncertainty around the impact of
• a net 12% of businesses are pessimistic
hold the views they do and what factors the Government’s policies.
about New Zealand’s economic
are driving their responses. “In light of this ongoing issue, I urge
performance in the year ahead
• The top three barriers to improving “Respondents highlight areas of positive the Labour-led Government to provide
business confidence were: action by the Government - particularly certainty and clarity on their
in housing, environment, and health - economic plan.”
• uncertainty around the
that will benefit the country’s economic
Government’s policies (62%) “Some 58% of businesses we
performance, but they also point out
• finding the right staff (47 )
%
their concerns.
asked think the Government
• future employment law changes (45%) has no plan of action to raise
“Three key drivers stand out. Businesses
• 58% think the Government has no New Zealand’s economic
say they are most concerned about
plan of action to raise economic performance, while 50% are
uncertainty around the Government’s
performance and 50% are unsure
policies, finding the right staff, and future unsure whether the newly
whether the newly announced
employment law changes. announced Business Advisory
Business Advisory Council will help
“These concerns are a further wake-up Council will help that.”
Wellington Chamber and Business Central
Chief Executive John Milford, says it’s call for the Government. Businesses are The survey recorded positive sentiment
clear from the survey that businesses are not in a confidence rut simply because regarding respondents’ expectations
positive about their own business and the they don’t like the Government. They for their own businesses over the next
regional economy improving over the next hold genuine concerns about its 12 months (+38%), including earnings (+34%)
12 months, but are pessimistic about policy direction. and investment (+19%).
New Zealand’s overall economic “When asked about the main barriers to The next survey will take place
performance. improving general business confidence, in December.
3 ATTRACT • BUILD • CONNECT • businesshb.nz
Business Hawke’s Bay • e-pānui • October 2018
New Zealand performs well in Gallup World Poll –
a comparison by Canterbury University’s Tom Coupé
Summarised from content first published by interest.co.nz
In this article Tom Coupé compares New Zealand to other countries on the basis
of the 2017 Gallup World Poll, that surveys about 1,000 individuals in over 100
countries, using a standard set of core questions that cover a wide range of issues.
1. A country of volunteers. In 2017 in in NZ are treated with respect and
New Zealand, 40% of respondents dignity. Not a bad score, though
had volunteered in the past month one might be surprised the top 5 of
compared to the OECD average of 26%. countries where women are most likely
2. A good place for ethnic minorities. to agree with this statement (from
90% of New Zealand respondents first to fifth): United Arab Emirates,
agreed with this, compared to a 74% Singapore, Uzbekistan, Norway
OECD average, making New Zealand and Cambodia.
the second highest scoring country 6. Satisfaction with educational system.
among OECD countries. The New Zealand public is clearly
3. Troubles with public transportation. satisfied with its teachers. 72% of 9. Trust in financial institutions.
Only 47% of the New Zealand New Zealand respondents indicated Three quarters of New Zealand
respondents indicated they were they were satisfied, compared to the respondents have confidence
satisfied with public transport, which OECD average of 65%. in ‘financial institutions or banks’,
is low compared to the OECD average 7. Business and consumer confidence. substantially higher than the 51%
of 61%. New Zealand respondents have been OECD average.
4. (Un)affordable housing. Few will be substantially more optimistic than 10.Wellbeing. New Zealand also scored
surprised by another indicator on the typical respondent in the OECD. highly in life satisfaction and general
which New Zealand scores badly. 8. Confidence in Government. Overall, wellbeing (looking at things like
Only about 40% of the New Zealand New Zealand respondents have lots laughter, being rested, learning
respondents said they were satisfied of confidence in their institutions. new things, treated with respect etc).
with the availability of good, Compared to respondents in other To read the article in full including
affordable housing, substantially less OECD countries, they have been additional commentary and comparisons
than the OECD average of 54%. much more likely to trust click here: http://bit.ly/2IxfXcT
5. Treating women with respect and the Government.
dignity. About 80% believe that women
Hawke’s Bay a brilliant choice for Kiwibank –
brings 50 new jobs to Hastings
First published in Hawke’s Bay Today, Kiwibank’s Hastings’ operations centre been able to
edited by BHB
opened three years ago and a range help Kiwibank locate
Kiwibank has committed to bring of positions including customer care into the heart of the
50 new jobs to Hastings. representatives, secure banking roles Hastings commerce district.
as well as a large contact centre team
Newly appointed Kiwibank chief “We’ve watched this company grow
are based there.
executive Steve Jurkovich, said one of and develop here. We are really proud
the bank’s first decisions in his first weeks There was “no reason” why the bank that we have enabled their business
in the job was to boost staffing levels would not want to keep growing its to become capable of covering the
at its Hastings operation centre. presence in the region, Jurkovich said. full range of banking and back-office
services including a contact centre and
“We just committed to bringing in 50 new “The cost of living in a whole lot of places
information technology services
people in the last few weeks. For us, that’s I guess, is meaning that a lot more people
in Hastings. It has enabled them to
(a), partly because a lot of people want are thinking about what they want to do
operate the bank from Hastings in
to live in Hawke’s Bay and (b), because with their family, where they want to bring
the event of business interruption in
from a business, planning and continuity their kids up, what sort of lifestyle they
Wellington and Auckland. It is part of
perspective, not having everyone in want, and if you can get a good job that’s
our Council’s aim to encourage more
Wellington or Auckland makes sense.” working for one of New Zealand’s bigger
businesses to invest in Hastings,”
companies, that sort of takes away that
“From our perspective it doesn’t really says Mayor Hazlehurst.
compromise with career plans.”
matter where you are based, it’s about To read the story in full click here:
the outcomes and the outputs. Hastings Mayor Sandra Hazlehurst
http://bit.ly/2OqOy1B
So, Hawke’s Bay is a brilliant choice.” says the Council’s really excited it has
4 ATTRACT • BUILD • CONNECT • businesshb.nz
Business Hawke’s Bay • e-pānui • October 2018
Build
Planned retirement villages will bring 320 jobs,
$45m boost to Hawke’s Bay, research shows
Adapted from content first published in pan out. Research carried out by PwC
Hawke’s Bay Today, plus additional collated
and commissioned by the Retirement
content.
Villages Association found the
EIT, as part of its Hawke’s Bay growth construction of a 250-unit village directly
study, has identified residential care supported 303 full-time equivalent jobs
as a sector with high growth potential, and contributed about $21.4m in design,
due to our region’s aging population. construction and fittings.
Population forecasts undertaken in 2015 “In the Hawke’s Bay, there are four
show a bow-wave of senior citizens villages in development (that we know
will be living in The Bay over the next of) totalling close to 550 independent
three decades. The number of over 65s living units and care beds,” RVA executive
is expected to increase by nearly 100%, director John Collyns said.
over 75s by nearly 175%, and over 90s by “This suggests that there’s going
a massive 286%. As a result we’re seeing
to be a direct injection of around
a lot of activity and planning as the • $13.9m spent on building and
residential care sector responds.
$45m into their design and construction
construction, and an additional • $1.8m spent on civil and ground works
There are currently four new retirement
villages in various stages of planning,
320 jobs in the villages’ operation • $.9m spent on furniture and fittings
with Napier City Council recently granting contribution to the local economy.” Collyns added: “There is no doubt
resource consent for a – 100 home, 19 Each village provides employment for: that the boom in retirement village
apartment and 49 care bed -retirement development not only adds significantly
• 44 engineers and other technical
village on Ulyatt Rd in Napier, by private to the local economy via investment and
and business professionals
healthcare provider Bupa. Other major employment, but it also has valuable
• 320 builders and tradies
retirement village developers Summerset social benefits, through releasing homes
and Ryman Healthcare have plans to build • 15 civil works labourers back into the market for new families to
retirement villages across Hawke’s Bay. • 14 outfitters enjoy and offering a range of services
Economic contributions for each village: looked for by our residents.”
New research suggests Hawke’s Bay can
expect a $45 million economic boost • $4.8m spent on engineering, quantity To read the article in full click here:
and more than 300 new jobs, if they all surveying and architecture http://bit.ly/2xPDmSM
Working towards the national environmental standards vision
Contribution from Pan Pac Forest Products implemented a two-way education
Pan Pac Forest Products Ltd has programme which included informative
forestry tours for HBRC staff while also
recently received the first major
educating Pan Pac staff on the
resource consent issued by the consenting process. The resulting
Hawke’s Bay Regional Council under resource consent reflects conditions
the new National Environmental relevant to the new NES requirements
Standard (NES) – Plantation Forestry. while meeting the environmental goals
The resource consent issued for Pan of both HBRC and Pan Pac.
Pac’s Mohaka Forest represents a novel “This was a valuable experience for
approach to improving environmental Pan Pac. As Hawke’s Bay’s largest forest
outcomes and increasing efficiency in company, relationships are at the heart
the forests. The NES has set out national of our business,” said Managing Director,
technical standards, methods and Doug Ducker. “We are always looking for
requirements relating to matters under opportunities to work together for
the Resource Management Act (RMA). a well-rounded outcome.”
It also provides consistent rules for Pan Pac and HBRC plan to continue
planning specific forest activities. working towards the same sustainable consents and their conditions can be
Working closely with the Hawke’s Bay future. Prior to consent expiry in 2023, improved for the benefit of the forestry
Regional Council (HBRC), Pan Pac both parties will meet to discuss how industry, environment and council.
5 ATTRACT • BUILD • CONNECT • businesshb.nz
Business Hawke’s Bay • e-pānui • October 2018
That is, for the most part, New Zealand
meat is considered a ‘premium’ product.
Overall, it is unlikely that the potential
impact to New Zealand’s meat industry
will cause significant disruption within
the next five years. The OECD forecasts
meat consumption per capita to
remain roughly constant in developed
economies over the next ten years, and
rising in developing economies. However,
towards the end of the forecast period
and for some time after it is certainly
a risk that the meat industry in New
Zealand will face and increasing
pressure from artificial meat products.
If alternative proteins are going to
place pressure on the New Zealand
Food, Beverage and Agri-Business agriculture industry, how will we know
Spotlight on Future Foods it’s happening? What data may provide
an early signal?
Treasury special topic: Alternative proteins, artificial meats and the implications One important factor will be the cost
for New Zealand’s agricultural sector. of these alternatives. Once cost is no
Treasury says it is watching the rise is already shifting at the margins. longer a prohibiting factor, commercial
of artificial meat but it doesn’t see a Research by Roy Morgan shows that availability will likely be the key issue.
threat to New Zealand’s red meat sector the number of New Zealanders “who Most artificial meats are not widely
at this stage - even as global demand for agree ‘The food I eat is all, or almost available. However, the composition of
red meat products has stopped rising all, vegetarian’” has increased two supermarket shelves can change quickly.
percentage points between 2011 and 2015 For example, sales of plant based milks
This special topic focuses primarily
to just over 10% of the population. Given in the US increased 60% from 2012 to 2017.
on the potential for artificial meat,
the increase was apparent across all sub- Beef and Lamb New Zealand produced
and other meat substitutes, to impact
groups and concentrated most heavily a report looking at the future for meat
New Zealand’s meat exports.
in younger age groups, it is likely that this and potential for changes in consumer
Treasury’s special report is trend will continue. preferences. They outline a range of
summarised below.
This shift is even more prevalent offshore. reasons why alternative meats are
In recent years the prospect of artificial In Germany, 44% of people now reported gaining traction including environmental,
meat or meat substitutes have gained eating a ‘low meat diet’ in 2017, up from health and technological improvements.
consumer attention. A number of meat 26% in 2014. While in the US 6% of people They suggest four possible scenarios:
substitutes have become available to now report to be vegan, up from 1% in 2014. • Red meat is pushed to the side of the
consumers in recent years, including soy
The change in consumer preferences plate (falls out of favour and is only
and tofu based products and a growing
is driven by a wide range of factors; used in niche circumstances)
range of artificial meats. This puts a
environmental awareness, animal • Red meat is the specialty choice
portion of New Zealand exports at risk
welfare issues and health concerns are (becomes a luxury good)
if these substitutes were to be adopted
being cited by some as reasons to seek • Red meat is the reluctant choice (due
widely. The artificial meats currently
other proteins instead of natural meat. to a lack of other affordable options)
available are generally synthetic
Overall, a fall in meat consumption • Red meat is the everyday choice
products created using protein from
per capita is still not observed in the (widely consumed and remains
plant materials, such as pea protein.
data, rather households in developed a staple of most consumers’ diets)
Other products on the horizon include countries appear to be switching away In summary:
lab grown meat such as that being from beef and towards poultry as the
developed by Memphis Meat. Lab grown main source of meat. While, artificial meats may not be in
meats are genuine meat products a position to significantly disrupt the
Meanwhile, meat consumption in market at present, they do pose a risk.
grown from animal cells (without
developing countries continues to lift, This risk is not sufficiently certain in
growing a full animal). These meats are
as incomes rise. The increase in timing or magnitude to meaningfully
generally not consumption ready at
consumption has been concentrated in incorporate into the Treasury’s economic
this stage. However, they do represent
poultry for developing countries, though forecasts at this stage. However,
another source of risk with a number of
beef consumption increased to a it is a risk that the Treasury will
companies expected to release products
lesser extent. continue to monitor.
commercially within the next few years.
The New Zealand meat industry To read the full report click here:
While it may be a number of years before
is perhaps in a better position than http://bit.ly/2QqHVdf
alternative meats are directly competing
other countries to respond to a shift.
for the average consumer the market
6 ATTRACT • BUILD • CONNECT • businesshb.nz
Business Hawke’s Bay • e-pānui • October 2018
Food and Beverage
Coca-Cola eyes cannabis-infused drinks
First published in inside-FMCG
Global soft drinks giant Coca-Cola the growth of non-psychoactive Cannabidiol helps ease inflammation,
is said to be toying with the idea [Cannabidiol] as an ingredient in pain and cramping. It doesn’t have
functional wellness beverages around any psychoactive effect, unlike other
of a cannabis-infused beverage.
the world. The space is evolving quickly. drugs. Canada is currently preparing the
Canada’s BNN Bloomberg reported No decisions have been made at legalisation of cannabis for recreational
that Coke is currently in “serious talks” this time.” use. This comes after several years of
with Aurora Cannabis about possibly allowing cannabis for medicinal purposes.
There has been no further comment from
producing a marijuana-infused
the soft drinks giant. If it pushes through, This has led to Canada’s growing
beverage with the purpose of helping
the partnership between Coca-Cola and marijuana industry and partnerships
to relieve pain.
Aurora would mark the first entry of a major with well-known companies worldwide
Although no deal has been finalised yet, drinks manufacturer of non-alcoholic according to the BBC. Molson Coors
one of the media company’s sources beverages into the cannabis market. Brewing company has ventured into
said: “They’re pretty advanced down the the realms of cannabis-infused drinks
Aurora commented in a statement
path” of doing a deal. with Hydropothecary, while Corona-beer
that it would not discuss any business
“It’s going to be more of the ‘recovery maker Constellation Brands has
development initiatives until they
drink’ category,” the source added. invested $4 billion into the pot firm
were finalised.
Canopy Growth.
A statement on Coke’s website said: “We “Aurora has expressed specific interest
have no interest in marijuana or cannabis. To read the article in full click here:
in the infused beverage space, and we
http://bit.ly/2NSV0yW
Along with many others in the beverage intend to enter that market,” Aurora told
industry, we are closely watching BNN Bloomberg.
Food and Beverage
NZ Food Innovation Network – supporting food
and beverage new product development
Contribution from NZFIN to the industry can easily navigate
Got a great idea for a new food through the ecosystem.
or drink product? Maybe the The FoodBowl, FoodWaikato and
New Zealand Food Innovation FoodSouth have the capability to
Network (NZFIN) can help? commercially produce 1 – 5 tonne
a day of product. The FoodPilot
NZFIN supports businesses of all sizes, and FoodOtago offer smaller scale
including start-ups, and consists of five equipment plus access to a range
physical processing pilot plants located of experts and academics to support
in Auckland (The FoodBowl), Hamilton highly technical projects. All the facilities
(FoodWaikato), Palmerston North (The have food safety programmes (FSP)
FoodPilot), Christchurch (FoodSouth) and some have risk management
and Dunedin (FoodOtago), plus a practice certification allowing direct make connections with Regional
national business development network export from the facilities. Business Partners and Business Mentors,
including FoodEast (Hawke’s Bay).
Here in The Bay, FoodEast is represented Callaghan Innovation for funding
The capabilities and industry support by business development manager, opportunities, NZTE for export advice,
available through NZFIN have allowed Jo Madden, based at the CRIs, FSANZ and MPI for regulatory
the development of products and Hawke’s Bay Business Hub with and food safety requirements amongst
processes that have generated millions a territory that includes Hawke’s Bay, others and Business Hawke’s Bay for
of dollars in export for NZ companies. Gisborne and the lower North Island. a regional sector overview.
NZFIN can help with product Jo is an experienced food technologist Hawke’s Bay’s food and beverage
development, establishing with broad product development and industry is experiencing great growth;
manufacturing processes, trialling manufacturing experience. The support it is a very exciting time! Jo is a great
equipment prior to investment, offered by Jo is wide and varied. Start- starting point if you are looking at
trouble-shooting and mitigating risk ups can benefit from direction, advice starting something new or need support
on innovation investment. NZFIN also and industry connections, whereas SMEs from NZFIN to diversify an existing food
acts as a catalyst within the food and or larger companies are typically and beverage business.
beverage industry, by providing network looking for additional technical resource, Email Jo:
connections, recommendations and production solutions, new value chains, Jo.Madden@foodinnovationnetwork.co.nz
introductions, ensuring new members or new technologies. NZFIN can also
7 ATTRACT • BUILD • CONNECT • businesshb.nz
Business Hawke’s Bay • e-pānui • October 2018
The new rules on customer data and privacy
Adapted from a story by Bill Bennett, first published in NZ Business
The EU’s General Data Protection Rules have come into force.
What does this mean for kiwi businesses?
It’s worth taking notice of the GDPR New Zealand’s Privacy Act – at least The GDPR rules call for additional
as it is fast becoming the global in broad terms. The basics of both levels of protection for some kinds of
standard for looking after personal data. sets of regulations are that you need data – this includes health or genetic
The GDPR sets out to protect a person’s to be careful and open about collecting information and biometric data. Treat
right to privacy and to provide greater information. You also need to ‘take anything that might reveal racial or
data protection. The fines for failing reasonable steps’ to make sure data ethnic details with kid gloves. Likewise,
are huge – up to four percent of your is accurate and not misleading. information about sexual orientation.
business turnover or €20 million. Much of it is common sense.
If all this sounds too hard – and for
The key here is that the rules don’t only If you keep any kind of data then you many people it will – then you might
apply to companies in the EU. They apply should look closer at the actual want to consider if you still need to
to anyone who wants to trade in Europe. New Zealand rules. You can find out deal direct with European customers.
more at the Privacy Commissioner’s This could be an ideal moment to hunt
What are the rules?
website: www.privacy.org.nz. out a distributor or master retailer on
There are a few important points about that continent.
It’s tough for smaller businesses
what the GDPR does. First, it gives
Europe will be a strategic market for
Europeans the right to be forgotten. Things get difficult for smaller
some people. If so, it may pay to get
This means if a customer requests it, New Zealand businesses when it comes
specialist advice on what to do.
you have to erase all the data you hold to protecting privacy. Putting the right
The EU says New Zealand’s privacy
on them. level of security in place isn’t obvious.
laws are adequate – however the
It goes beyond installing anti-virus
You need to be able to show the data government still plans to tighten them,
software and firewalls. You would need
you collect is necessary to your business which will take things further.
to provide staff with formal training on
and proportional to the task in hand.
procedures and so on. This means if you follow the local rules
You can’t give or sell personal data then you’ll be well on the way to being
A business can’t have privacy without
to other companies or business partners GDPR ready.
decent security. Data needs to be
without clear written permission.
secure to remain private. To read the article in full click here:
And you can’t keep data longer than
http://bit.ly/2NcuTOo
necessary either. Another potential difficulty is that the
GDPR expects you to take special care
Most of the GDPR rules mentioned
of anything that can identify someone.
so far are more or less in line with
8 ATTRACT • BUILD • CONNECT • businesshb.nz
Business Hawke’s Bay • e-pānui • October 2018
Unison boosts regional employment Mr Kaka said there were business
and community benefits to taking on
with largest ever intake of trainees more trainees. “We are focused on
sustainably growing our contracting
Contribution from Unison As an organisation owned by Hawke’s business to create more value for Unison
Driven by business growth and future Bay power consumers, Unison prides itself shareholders, while providing a reliable
in recruiting locally. “Training new recruits
demand for roles, Unison is training network for customers,” said Mr Kaka.
is a great opportunity for us to provide
30 apprentice line mechanics, locals with long-term employment Growing talent locally will support
electricians and cable jointers this year. opportunities which links nicely with our the increased programme of
This intake is ambitious by industry company purpose to enable communities work planned for the electricity
standards and underscores Unison’s to prosper” said Charles Kaka, CEO,
network, as well as preparing
commitment to future-proofing its skills Unison Contracting Services Limited.
for the expected shortage of
base, as well as supporting employment The 30 trainees join a team of more than
in Hawke’s Bay. electrical workers throughout
300 locals currently employed by Unison
New Zealand in the coming years.
in Hawke’s Bay.
In a market facing unprecedented
change Unison is committed to creating
and investing in an agile and diverse
workforce with the skills to adapt.
Diverse in age, gender, ethnicity,
life and work experiences, trainees
contribute further diversity to Unison’s
workforce. “Given the industry is going
to experience significant disruption
in the coming years, a more diverse
workforce will help us to pursue these
opportunities.” Mr Kaka said.
Airport expansion project update – October 2018
Contribution from Hawke’s Bay Airport
There has been significant activity across the airport over the recent period with that there is no charge for stays of
construction works continuing on stage one of the terminal expansion, and the less than 15 minutes.
Watchman Road project reaching practical completion with traffic flowing from The practical completion of the
24 September. Watchman Road project is a major
milestone for the region. The project
The progress made by the construction the coming weeks there will also be
involved a huge array of stakeholders,
team working on the terminal has been some civil works taking place in front many of whom attended the project’s
excellent with the roof now on stage of the existing building to enable the public open day which was held
one, and work continuing on fitting running of essential services. These in bright sunshine on 16 September.
out the interior. It is now forecast that works have required us to temporarily
This new gateway to the region is
this initial stage, being the new arrivals reshuffle the locations of our ground
something to be very proud of, it serves
area, will be open to the public prior to transport operators. The changes have to not only significantly improve the
Christmas – well ahead of schedule. resulted in a reduction of space for safety and efficiency of traffic flow
The hoardings are now up and works public pick up and drop offs and as such but also showcases the beauty of the
are set to commence on stage two at we recommend airport users using the surrounding environment to residents
the southern end of the building. Over carpark wherever possible, remembering and visitors alike.
9 ATTRACT • BUILD • CONNECT • businesshb.nz
Business Hawke’s Bay • e-pānui • October 2018
Expanded National Aquarium one step closer to reality
Media release from Napier City Council
An expanded National Aquarium National Aquarium to truly be recognised • The indicative cost is $51.3m, with
of New Zealand is a step closer to as a centre of excellence for conservation. a $10.2m investment from NCC
over two years and the balance
reality after the announcement that “We’re delighted that we can now sought through a mix of public
the Provincial Growth Fund (PGF) will start working with key partners and private investment
invest $350,000 towards the cost of to turn our vision into reality and • Key partners include Weta Workshop,
developing the detailed business case make the Aquarium a centre of Air New Zealand, University of
for the expansion of the much loved marine research, conservation Waikato, Hawke’s Bay Regional
Hawke’s Bay facility. and education for New Zealand.” Council, Hawke’s Bay Tourism
This news concurs with strong community and local iwi
To recap, the highlights of the National
support as expressed through NCC’s Long • Expanded facility earmarked
Aquarium of New Zealand expansion
Term Plan consultation process. to open in 2023.
project are:
“It’s a huge thrill,” says Mayor of Napier, Indicative timeline
• Creating a unique destination and an
Bill Dalton. 2018
unforgettable aquarium experience
“Central Government shares our view • Delivering a landmark conservation Preparation of full business case,
that this facility has real potential as a centre of excellence detailed design and revenue
tourism destination, a marine science generation strategy
• A major initiative under Matariki:
and research hub, and a catalyst for real Hawke’s Bay’s Regional Economic 2018 – 2019
behavioural change. We want everyone Development Strategy and action plan Community consultation
who visits the National Aquarium to
• A strong indicative business case that 2018 – 2020
come away with new knowledge -
contributes financially, environmentally Detailed design and funding secured
inspired to take care of their precious
and culturally to the region
marine environment, committed to more 2020 – 2023
• The project is part of Council’s
sustainable practices, and ready and Construction
Long-Term Plan 2018-28
willing to share what they’ve learned 2023
• The full business case will now be
within their community.” Expanded aquarium opens
prepared and presented (in due
Wayne Jack, Napier City Council Chief course) to Government for funding The aquarium expansion project
Executive, says the announcement helps consideration supports Matariki HBREDS work area 5;
us get one step closer to our vision for the promote greater innovation, productivity
and agility.
10 ATTRACT • BUILD • CONNECT • businesshb.nzBusiness Hawke’s Bay • e-pānui • October 2018
Food and Beverage
Progress continues for Hawke’s Bay Food Innovation Hub
First published in Hawke’s Bay Today A discovery phase report was completed
A food innovation hub is still on the in the third quarter of 2017 with input
from more than 50 food and beverage-
cards for Hawke’s Bay and Sapere
focused organisations in Hawke’s Bay
Research Group has been appointed which confirmed strong interest in
to carry out a feasibility study for the concept.
the creation.
Hastings District Council’s economic
The study and business case is aimed development team was leading that
at encouraging collaboration, phase of the project, reporting to the
innovation, research and development Matariki REDS Governance Group
in food, beverage and agricultural The study and business case stage of
that oversees the region’s economic
technology sectors. the project is planned for completion
development strategy and identified
early next year. The overall project was
The Food Innovation Hub project has the project as a regional priority.
being managed by a stakeholder group
already received a grant of $200,000 from Craig Cameron, Hastings District of industry and council representatives.
the government’s Provincial Growth Fund. Council group manager for economic
Further funding was likely to be needed
The hub would bring together businesses growth said that everyone involved is
to set up the hub, which is estimated to
and stakeholders in the food, beverage very appreciative of the support from
cost about $20 million.
and agricultural technology sectors to Government to get this project closer
collaborate and conduct research to reality for Hawke’s Bay’s food, To read the article in full click here:
and development. beverage and agri-tech industries. http://bit.ly/2NSWTvw
Along with the government grant, “This is a unique opportunity to The proposed Food Innovation Hub
regional entities including Hastings potentially establish a facility that will supports Matariki HBREDS work area
District Council, Napier City Council and ultimately help bring about business 2.0; agriculture and horticulture
13 other organisations engaged in the growth and innovation, drive investment feasibility study.
food, beverage and agri-tech sectors and economic growth and create jobs.”
contributed $35,000 towards the study
and business case.
Hawke’s Bay Councils looking at becoming
living wage employers
Adapted from content first published Wairoa Council CEO Steven May said
in Hawke’s Bay Today
the policy extended to all permanent
Wairoa District Council is one of the staff who the council had immediate
first councils to pay its staff living control over, but not those indirectly
through the council, for example
wage - despite not having the stamp
contracted staff. Napier City Council CEO Wayne Jack
of approval as Wellington does.
National convener for Living Wage said they are working through the review
From the cleaners to the chief executive, as quickly as possible.
Movement Aotearoa New Zealand,
the capital’s council workers are
“Annie Newman, said accredited A spokesperson for Hastings District
guaranteed a minimum of $20.55 an
employers had to ensure all Council says they welcome the review.
hour, after Wellington City became
contracted staff were paid a living
the first accredited living wage council Currently, 11 per cent of HDC’s
wage, not just those directly employed
in the country. permanent part-time and fulltime staff
by the company.
Wairoa mayor Craig Little said staff need are paid less than the living wage.
“Some of the lowest paid employees in
to be paid what they are worth. There are 110 accredited living wage
the country are employed by contractors.
He said at this point Wairoa was not employers in New Zealand, with
looking at accreditation.
“It’s very important that we Bistronomy in Napier the only one
protect the lowest paid workers, in Hawke’s Bay.
“We’d have to look into it to see what
advantages there are for accreditation.”
who are in poverty, that they are To read the article in full click here:
part of this.” http://bit.ly/2zKbH6U
He said they had not received any
backlash from ratepayers, and there Councils in Hawke’s Bay are undertaking
could be no argument against paying a region wide review looking at the
people what they are worth. implications of the living wage.
11 ATTRACT • BUILD • CONNECT • businesshb.nzBusiness Hawke’s Bay • e-pānui • October 2018
Food and Beverage
Locusts and ants for
breakfast? Huhu grubs
for lunch?
Futurists, experts and food industry
gather to discuss future foods.
Cricket flour pancakes for breakfast?
Sounds bizarre, but not so long ago,
no-one had even heard of quinoa,
kombucha or acai, and now these foods
are commonplace in our café menus,
supermarkets and homes.
Later this month, food futurists, experts
and innovators, together with Hawke’s
Bay’s and New Zealand’s food industry
will come together at the Future Foods
Conference 2018 to discuss how the
global future of food is changing, explore
the food we might be eating in 20 years’
time and talk about the opportunities
for New Zealand and Hawke’s Bay
food producers.
Increasingly New Zealand is influenced
by global food trends, says Business “Disruption tends be very obvious, yet Speakers include:
Hawke’s Bay CEO, Carolyn Neville. in your face, opportunity will hide, • Melissa Clark-Reynolds (Futurist)
“It’s essential that we understand the so New Zealand’s food and fibre industry – on tech innovations in the
needs to be prepared to go hunting food industry
current trends, the factors shaping
for opportunity and evolve to maintain • Mateawa Keelan (Hikurangi Enterprises)
consumer choice and what that means
relevance,“ says Ms Jones. – on creating high value health
for the global food industry.
Peter Randrup, Director of edible insect products from bioactives
“The future of food is changing company Anteater says that the future • Peter Randrup (Anteaters)
faster than ever before, so it’s of protein will be insects, plants, algae, – on sustainable protein from
important for New Zealand and lab-grown meat. edible insects
and Hawke’s Bay producers to “In a survey of 250,000 people, 50% said • Mike Mayell (Cookie Time)
they would eat insects instead of beef, – on future of hemp and
understand what the global food
if it helped the environment. environmentally sustainable food
industry might look like in the • Julia Jones (KPMG)
future and the opportunities “Think of how much impact – on global future food trends
it presents. any current food group has on
The 2018 Future Foods Conference:
our food system - dairy, fungi,
“Business Hawke’s Bay wants to make • Wednesday 31 October
sure our region’s food producers get to vegetables, seafood... the
(8:30am to 5.30pm)
hear from leading experts about what’s western world has just discovered
• Napier Conference Centre
happening and how they can add value another food group - insects.
to their business. The impact this will have on • 48 Marine Parade, Napier
“Future Foods is a must-attend event,” our food system will be no less • For more information visit:
says Mrs Neville. profound than the discovery of http://bit.ly/2Iul1Pe
Julia Jones, Farm Enterprise Specialist
dairy,” says Mr Randrup. • Special price ($195 plus GST, save $100)
available for a limited time
with KPMG says the consumer (or end An impressive line-up of experts, futurists
user of our product) needs to be at the and innovators will talk to the four themes The Future Foods Conference supports
heart of what we do. of the Future Foods Conference: Matariki HBREDS work area 6.3;
undertake specific food and beverage
“That means becoming consumer-based 1. Global food trends
global opportunity assessments in order
producers and ensuring when we go to 2. Adding value from land to brand
to identify new market-led opportunities
market we capture the value of what 3. Alternative proteins for Hawke’s Bay businesses.
New Zealand has to offer. 4. Innovation in technology
12 ATTRACT • BUILD • CONNECT • businesshb.nzBusiness Hawke’s Bay • e-pānui • October 2018
Maori Business Engagement
Introducing Te Kāhui Ōhanga o Takitimu
Te Kāhui Ōhanga o Takitimu (TKO) Regional Economic Development Strategy
is a Māori Collective Impact Initiative (HBREDS), as aspired by the principles of
working with the Matariki Regional Te Tiriti o Waitangi to lead the following
actions in the Matariki strategy;
Economic Development Strategy.
• Support meaningful partnerships
It is made up of Ngāti Kahungunu Iwi Inc,
Ngāti Pahauwera Trust, Maungaharuru- with Matariki REDS stakeholders
Tangitū Trust with an invite to all • Develop rangatahi leadership for
Post Settlement Groups Entities and the future
supported by Ministry of Business • Create jobs and develop our workforce
Employment & Innovation, Ministry of in the Agricultural and Horticultural
Social Development and Te Puni Kōkiri. sectors Contact us:
TKO’s goal is to ensure that whānau, • Grow new Māori business leaders Sarah Reo (Programme Manager)
hapū and households are; and support existing ones sarah.reo@ttoh.iwi.nz
• Actively engaged • Support commercial innovation and Theresa O’Brien
• Contributing to and Maori entrepreneurship. (Business Growth Manager)
• Benefiting from a thriving Hawkes Bay • Boost Māori Tourism within our region theresa.o’brien@ttoh.iwi.nz
economy! Our team is based in Ahuriri (Hawke’s Bay Conrad Waitoa
TKO has partnered with a number of Business Hub) and Heretaunga (Rangatahi Development Manager)
organisations involved in the Hawke’s Bay (Te Taiwhenua o Heretaunga). conrad.waitoa@ttoh.iwi.nz
Head of the Provincial Development Unit,
Nigel Bickle, provides an update on the
Provincial Growth Fund.
Contribution from PDU
The Provincial Growth Fund has been I attended a Matariki meeting -
up and running for more than six Hawke’s Bay Regional Economic
months now and we’ve been really Development Strategy and Action Plan -
and met with local Mayors to discuss the
encouraged by the potential of the
PGF and the how it can make
projects coming through. There’s
a difference for the Hawke’s Bay region
certainly been no shortage of interest, and community. I was encouraged to
with over $305 million of funding hear about the work that is already
announced and nearly $2.5 billion underway, particularly around their
worth of applications and expressions prioritised set of investments for
of interest in the pipeline. Hawke’s Bay. However, when you’re
dealing with a fund that has a three year
In particular, we’ve seen investments $200,000 was also announced in
lifespan, the need to progress quality
of scale announced in a number of surge June for the Hastings District Council
regions. Northland, for example, has projects and applications at pace is
to develop a feasibility study and
received investment of $49 million, crucial. Like other surge regions, I would
business case for a new Hawke’s Bay
while over $34 million has been invested expect Hawke’s Bay to be making the Food Innovation Hub, and $350,000 to
in various projects in the Bay of Plenty. most of their opportunity as a surge develop a detailed business case for the
The biggest announcement to date region by working towards an investment expansion and enhancement of Napier’s
saw $152.7 million invested in Tairāwhiti package of scale to be announced early National Aquarium of New Zealand was
across a number of roading and tourism next year. announced in August.
projects, and we are currently working That’s not to say that funding applications While these investments are a start,
through a significant investment package from Hawke’s Bay have been completely there’s still plenty of work to do.
with the West Coast. missing in action. In February, $5 million Businesses, local government and the
Like these regions, Hawke’s Bay has also was committed to KiwiRail to reopen the community need to work together to
been prioritised for early investment and Wairoa-Napier line for logging trains, ensure that the region has a clear
is well positioned to take advantage which will result in more than 5,700 trucks direction for investment. The PDU can
of the opportunities that the Provincial off the road each year and will make a help with this, and I encourage you
Growth Fund provides. A few weeks ago, significant difference to both the people to make the most of their support
and infrastructure in the region. and guidance.
13 ATTRACT • BUILD • CONNECT • businesshb.nzBusiness Hawke’s Bay • e-pānui • October 2018
Napier Port breaks five million tonnes record
Contribution from Napier Port for log exports in particular, with the Port past Napier Port recently, you will
Napier Port has just set a new cargo handling a record 2.2 million tonnes of have seen this in action, as our
logs – a 37% increase on last year.
record, highlighting continued growth team works hard to process high
across the Hawke’s Bay economy. Napier Port has broken a number of new volumes of products from here
records, shipping 13.5 million cartons of
Napier Port Chief Executive, Todd and around the world.”
apples and 480,000 tonnes of wood pulp.
Dawson says the Port handled five million This growth is expected to continue
tonnes of cargo for the year ended Port Pack, the Port’s on-site packing
over the next decade with more than 50
September 2018. facility, has also set a new record -
percent growth at Napier Port forecast
packing over 51,000 TEU (20ft container
“If you can imagine 30 Ovation of the between 2016 and 2028.
equivalents) of pulp and processed
Seas cruise liners stacked on top of each “Napier Port is working closely with our
timber products.
other – that’s how much cargo we’ve region’s importers and exporters to ensure
shipped over the year. It’s a massive “This has been a strong year for Napier
we’ve got the right infrastructure and
record for Napier Port.” Port, and Hawke’s Bay economy as a
capabilities in place to meet their needs.
whole,” Mr Dawson says.
The milestone represents a 6.4% increase We’re planning now so we can meet
on 2017 - an additional 300,000 tonnes “Our economy is growing as future growth head-on.”
of imports and exports crossed Napier local businesses expand to meet As well as the cargo milestone, Napier
Port’s wharves during the year. new opportunities. These cargo Port is also just about to enter its busiest
Of the 5 million tonnes, 60 percent was records really put the growth summer season, with 72 cruise calls
bulk cargo including logs, fertiliser and scheduled starting from Labour Weekend.
story into focus. If you’ve been
oil products. It has been a strong year
Government announces
R&D Scheme
The new scheme was announced
recently, following extensive
consultation with the innovation
sector and businesses throughout the
country. It will be available for the
2019/20 tax year, and will include:
• A credit rate of 15%, a $120 million cap
on eligible expenditure, and a minimum
R&D expenditure threshold of $50,000
per year.
• A broad set of eligibility criteria,
including SOEs, industry research
cooperatives (including levy bodies)
and minority-owned subsidiaries of
CRIs, Tertiary Education Organisations
and DHBs.
• A definition of R&D that ensures the
• A limited form of refunds for the first
tax incentive can be accessed more
year, which will mirror the R&D tax-loss
easily across all sectors, including
cash-out scheme run by IRD.
the tech sector.
14 ATTRACT • BUILD • CONNECT • businesshb.nzBusiness Hawke’s Bay • e-pānui • October 2018
Introducing Rachel Campbell, business
development manager, Business Hawkes Bay.
New to the Business Hawke’s Bay She has also used her expertise advising
team is Rachel Campbell, a food on export market requirements.
industry specialist with a background Career highlights for Rachel include
in sheep and beef farming. working on a Ministry of Health and
Heart Foundation project “Heartsafe”
Rachel has spent much of the last 20
to reduce sodium in processed foods,
years working in the food and beverage
working with breakfast cereal, processed
and health and wellness industries both
meat and sauce manufacturers to set
in New Zealand and abroad. Her career
voluntary industry best practice targets
has seen her work in marketing for large
to reduce levels of sodium in high volume
multi-nationals including Fonterra in
processed foods.
Southeast Asia and Kraft Heinz, as well
as consulting to a number of smaller At BHB, Rachel’s focus will be on
food, beverage and supplement developing business opportunities in the
companies and start-ups. Rachel has Food and Beverage and Agribusiness
a nutrition degree and has utilised this, sectors and helping the region’s
and her knowledge of the ANZ Food producers take their produce from land
Standards Code, in developing product to brand.
formulations and marketing strategies. Email Rachel at bizdev@businesshb.nz
Maori Business Engagement
Hikurangi Enterprises
nabs New Zealand’s
first medical cannabis
license
By Ellie Strang, adapted from content first
published in Idealog
The medical cannabis industry in
New Zealand has taken another “We are excited to be able to base “We’re aiming to providing safe and
tentative step forward, with the first this new industry in our community, affordable medical cannabis products
research license granted to Ruatoria- a rural region that desperately to New Zealanders next year”
based social enterprise Hikurangi needs new economic development Caddie says.
Enterprises. opportunities,” he says.
“Exports allow us to build the
The company says it will now begin “Without the strong local support infrastructure to produce affordable
building high-tech greenhouses and believing in this goal it would not have medicines made to Ministry of Health
processing facilities to breed cannabis been possible.” standards. It is encouraging to hear
strains and start conducting trials the politicians and officials supporting
Ruatoria, where the company is based,
into New Zealand made medical the need to get New Zealand made
is one of New Zealand’s poorest regions,
cannabis products. medicines to New Zealanders as quickly
holding a population size of 750 people
as possible.”
Hikurangi being granted this license and some of the highest unemployment
means the business can now access the rates in the country. In terms of where regulation is at, the
funds it raised over the past six months Government’s Medical Cannabis Bill
The idea for Hikurangi Enterprises was
from New Zealand investors, four months is being finalised following its Select
born as a means of generating economic
after submitting paperwork to regulators Committee process and looks likely to
development, raising household incomes
for review. have its second reading next month.
and creating job opportunities for the
Co-founder Manu Caddie says a further area. And judging by the sheer amount Caddie says he thinks legislation will
$2.5 million invested by over 1500 local of money invested into the business by pass its final reading by October, with
families and other New Zealanders locals, they were all for the idea. domestic industry regulations set within
through crowdfunding platform PledgeMe six months to ensure patients can get
The company has already launched
was what provided the foundation for access to safe and affordable medical
into action and commissioned clinical
negotiations with investors keen to bring cannabis products as soon as possible.
trials to begin next year for its products,
larger investments into the business. in order to quickly meet domestic and To read the article in full click here:
global demand. http://bit.ly/2QoZXwl
15 ATTRACT • BUILD • CONNECT • businesshb.nzYou can also read
