Market Gardeners Limited Annual Review 2019 - MG Marketing
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Market Gardeners Limited Annual Review 2019
Annual Review 2019
MG's core purpose is to grow the overall
®
Together. Stronger.
wealth and profitability of the Co-operative,
its shareholders and growers, through
relevant initiatives while maintaining
Cover: co-operative principles.
Warren & Michelle Jones,
Murphy Pack Ltd.
®Together. Stronger.
Since Warren and Michelle Jones committed
to growing one of New Zealand’s favourite
roast vegetables some 15 years ago,
consumer popularity has waxed and waned.
But with perseverance and an unwavering
commitment to producing a quality product,
RESILIENCE CO-OPERATIVE BEHAVIOUR
a willingness to take guidance around Show true leadership to grow the business Work hard together to make sure the
planting programmes and marketing and overcome challenges by making benefits of our Co-operative model drive
opportunities to differentiate them from decisions that protect the future of our growth, value, trust and a willingness to
other yam growers, the couple are now one
grower Co-operative and make sure the work closely alongside each other.
of five major growers in the country.
benefits are enjoyed by generations to come.
This is a story of ®Together. Stronger.
VALUE GROWTH
Keep reviewing the benefits our grower Diversify and expand produce lines locally
shareholders receive while finding new and as well as make our Co-operative attractive
relevant ways to add value. to off-shore markets so we can grow our
export activity.
PARTNERSHIP CAPABILITY
Expand the level of communication to keep Continue to have the best people, doing
our grower shareholders up-to-date and the right job, with the right tools to support
support a positive delivery of our shared the wide range of needs of our grower
vision, direction and values. network.
1
Annual Review 2019
Annual Review 2019
Group gross sales
Together. Stronger.
®
Together. Stronger.
under management
CONTENTS $923.612 million Group profit before
Financial Highlights
income tax & gain on
sale of property
Financial Highlights 03 $15.301 million
®
Chairman's & CEO's Review 04 Gain on sale of property
Income & Cash Flow Statements 34 $9.448 million
Balance Sheet 35 Group profit before
Branch Register, Bank & Advisors 37 Group profit for the year
income tax
(after income tax) $24.749 million
$17.166 million
Group total equity Group total assets
$133.947 million $279.032 million
Shareholder distributions 2019 2018
$'000 $'000
- Special Bonus Issue (November 2019)
• 1 for 30 on "A" shares (2018: 1 for 20) 772 976
• 2 for 5 on "B" shares (2018: 1 for 5) 3,308 1,666
• 2 for 5 on "C" shares (2018: 1 for 2) 399 442
• "D" shares - nil (2018: 1 for 20) - 155
- Supplier shareholder rebate (issued as 2019 "C" shares)
250 250
(2018: issued as 2018 "C" shares)
- Bonus issue on supplier shareholder rebate of 5 for 1
1,250 750
(2018: 3 for 1)
- Final gross dividend on "A" share: 6 cents per share
1,436 1,171
(2018: 6 cents per share)
- "D" shares - March 2019 - final gross dividend: 2 cents per "D" share
66 186
("D" Shares - November 2018: 6 cents per "D" share)
- Imputation credits attaching to the above distributions 2,228 1,552
Total shareholder distributions in relation to the year ended 30 June 9,709 7,148
2 3
Annual Review 2019
Annual Review 2019
We look across the trading performances Our people are vital to creating a
of many of our Australasian competitors competitive advantage for our grower
over the last year in review and see suppliers, customer relationships and
similar commentary on the challenges we for our Co-operative. We are fortunate to
are all facing. It is somewhat gratifying to have a long-serving, diverse and highly
see that your Co-operative’s performance experienced team, and we continue to
Together. Stronger.
®
Together. Stronger.
compares favourably to many companies. work on attracting more of the right
people into our business and developing
Strategically, we continue with our their capabilities. Cultural fit is all
focus on the five key pillars - securing important. It is essential that our staff are
®
supply, the capability of our people, philosophically aligned with the grower,
communication, business growth and understand and deliver on customer
improved systems and technology. expectations, and have the skills to
create game-changing innovation. As part
Like any business of our kind, we face of our continued focus on the ‘Our People’
a number of challenges including rising strategy, we are pleased to have further
costs, scarcity of labour, compliance, evolved the already successful MG
freight, packaging and land use. Graduate Programme and Sales Academy.
Chairman's &
Amongst the obstacles, we also grapple
with water and environmental issues, With this cultural fit comes the need for
softening consumer demand and falling active and clear communication with
product values. For horticulture itself, all our stakeholders and we trust that
CEO's Review
the unpredictability of disruptions from you are seeing an improvement in this
climate and other factors are becoming area through a number of channels.
the norm. These industry challenges This extends to communication on
demonstrate, once again, the benefits relevant business matters including the
of working co-operatively to satisfy our performance, strategy and direction of the
discerning customers and consumers. business, global trends and key activities
within the Co-operative. MG’s team is
The Co-operative will continue to invest in well informed on key matters as they
On behalf of the Board and Management we are pleased the development of intellectual property relate to them with respect to delivering
to report a year of record performance for the Market and exclusive licencing agreements these messages. Equally we place high
Gardeners Group. Market Gardeners Limited, trading as on selected product categories that importance on customer service and
MG Marketing (MG), has recorded a consolidated Group provide a genuine point of difference for communication to support our growers
consumers and growers. We will continue regarding supply, product availability,
net profit before tax of $24.7 million. to strategically review and invest in quality, logistics and innovation, in a
growing operations, joint ventures and planned and consistent manner.
The 2019 results are notable for a Increased market share and mostly good to our customers, ensuring that we can partnerships and provide grower financial
record trading result from the New values across a broad range of products, supply a range of product which would assistance where this strengthens the Technology improvements come in
Zealand operations, a significant together with tight fiscal management, otherwise be unavailable to consumers – Co-operative and is in line with our Co- many forms – technology in the form of
improvement in the LaManna Premier have contributed to our excellent New we are a leading importer in this sector. operative principles. We will also continue our new operating platform (which will
Group (LPG) Australian operations Zealand result. However, values did to forge new supply channels for loyal MG be installed by the June 2020 year-end)
to post a modest profit, a solid decline across many product lines in We are particularly pleased to see growers. Investment in strategic product will be utilised to increase business
performance from associates and a the last quarter of the financial year due improvements for LPG, which is reported categories often requires significant productivity, improve employee work
substantial gain on the sale of a Sydney to increased volumes. That said, MG’s on more fully on pages 21 and 22. Like capital investment - and our primary focus quality and effectiveness of work
based property. greatest strengths lie with its active the New Zealand marketplace Australia remains to increase the overall wealth of functions, reduce operating costs and
grower-shareholders and the value of continued to suffer from depressed the Co-operative and its shareholders. enhance grower and customer service
Based on this result the Board has once their support, further complemented by product prices. However, this has been levels. This technology will extend to
again declared a substantial special our diverse customer base and ability mitigated somewhat through operational We remain committed to helping better planning capabilities and provide
bonus issue, which together with normal to market New Zealand-grown product improvements in both warehousing and our growers respond to the industry growers and customers with timely and
distributions, amounts to $9.7 million – - both of which have been critical in farms, on-going refinement of customer challenges through our people meaningful information. Other forms
this is detailed more fully on page 11. As successfully managing these additional support and channels to market, capabilities by assisting with production of artificial intelligence business tools,
a Co-operative, we continue to generate volumes. Our import programmes have cost management and other business planning, procurement, selling and automation and growing technology
consistently strong growth in revenue also supported the business well, an improvement strategies. marketing initiatives, logistics and will also be progressively utilised to
and profitability – Together. Stronger. ® important component of a full service operational efficiencies. improve efficiencies.
4 5
Annual Review 2019
Annual Review 2019
Initiatives that support business growth the Group’s capital structure. This is
are critical to our on-going success. expected to be an eighteen month to
Continually ensuring we remain two-year programme - an update will
Together. Stronger.
®
We remain committed to helping relevant to our customer and grower be provided to the 2019 AGM and fully
Together. Stronger.
shareholders is critical and is supported reported to the 2020 AGM.
our growers respond to the industry by the other key pillars explained in
this report. Once again, the tailoring of • The introduction of an Industry Trust
challenges through our people business plans at each end of the supply – The Trust Deed and initial trustees
®
chain are essential for mutual success. are being submitted to the 2019 AGM
capabilities by assisting with for shareholder approval. The Industry
production planning, procurement, The Board remains focused on
strategically positioning the Group for
Trust is intended to be a charitable
trust focussing both on industry good
selling and marketing initiatives, future success and we thank the Board (training, education, promotion and the
members for their governance and like) and on giving back to the industry
logistics and operational efficiencies. leadership in the face of some significant and communities that MG and its
industry-wide challenges. The Board’s shareholders operate in. More details
engagement on the health, safety and are included in the notice of meeting.
- Peter Hendry wellbeing of our people is paramount and
our culture of care strategies are under On behalf of the Board and management
constant review to achieve this goal. team, we acknowledge and thank all
our stakeholders – our suppliers,
In addition, the Board has been active customers and fellow staff for their
in a number of additional work streams continued support.
including:
Looking ahead, we are well positioned
• The two-year review of the and committed to creatively supporting
constitution adopted in 2016 to ensure our stakeholders in a challenging
that it is fit for purpose. Proposed commercial environment as we work to
changes are being submitted to the grow our Co-operative, together for a
2019 Annual Meeting of Shareholders stronger future.
(AGM). This work has been undertaken
by the Constitution and Capital We look forward to working with you all
Structure Review Committee (a sub- in 2020.
committee of the full Board). The
focus will now move on to the second Together. Stronger. ®
part of the project which is looking at
Bruce Irvine Peter Hendry
Chairman Chief Executive Officer
6 7
Annual Review 2019
Annual Review 2019
1000
923.6 150
894.3
862.3 133.9
129.6
800
120
107.1
Together. Stronger.
®
103.1
Together. Stronger.
588.7
600 90
400 60
®
200 30
2018
2016
2016
2019
2019
2018
2017
2017
Group gross sales under Group total equity ($M)
management ($M)
24.7
25 300
277.1 279.0
260.2
20 260
16.0
15 13.6 220
197.3
10 8.6 180
FINANCIAL OVERVIEW 5 140
2018
2016
2019
2017
2016
2018
2019
2017
The Group’s financial highlights are rezoning of the suburb to include more (which were accounted for as debt /
reported on page 3 of this review. residential buildings. It has however borrowings) were repaid. Group profit before income tax and
impairment (including any gain on Group total assets ($M)
been leased back for the short term acquisition or gain on sale of property) ($M)
For the year to 30 June 2019 Group Gross whilst alternative premises are sourced. This strong financial performance will
Sales under Management amounted to The proceeds from the sale of this allow your Co-operative to continue to
$923 million (2018: $862 million). For the property were used to strengthen the make strategic investments and create
same period Group net profit before tax Group working capital, and to repay further shareholder wealth, whilst also
was $24.7 million compared to $13.67 debt of AUD$5.0 million. This sale was continuing to distribute significant wealth 20 10 9.70
17.1
million in 2018 (before impairment of signalled in the 2018 financial statements to shareholders - the 2019 distributions 16
$32.33 million which resulted in a net loss and the property was disclosed in the are on page 11. 11.6
12 8
of $18.66 million). statement of financial position as “non- 7.14
8 5.8 6.51
current asset held for sale”. MG presents an Annual Report inclusive
4 6
2019
2016
2017
5.53
As noted earlier, the strong performance of full financial statements and an Annual
0
was made up by a record result from Also of note, total Group Equity continues Review with summarised information. If
2018
the New Zealand operations, a solid to show positive growth, at $133 million you would like a copy of either document 4 4
turnaround in Australia and good (2018: $107 million) while total assets visit, www.mgmarketing.co.nz, or contact 8
contributions from the associate have increased to more than $279 million the Company Secretary, Duncan Pryor, 12 2
2018
2016
2019
2017
companies. Also of note is the one- (2018: $260 million), reflecting the strong on (03) 343 1794 or email dpryor@ 16
off $9.4 million gain from the sale financial performance and inclusion of the mgmarketing.co.nz.
0
20 (19.5)
of our Sydney warehouse property. latest property revaluations (an increase
Group profit/(loss) for the year after Group distributions ($M)
This warehouse will not meet future of $13.5m taken to the revaluation reserve). income tax and impairment ($M)
operational requirements due to the In addition, in March 2019 the “D” shares
8 9
Annual Review 2019
Annual Review 2019
DISTRIBUTIONS
Together. Stronger.
®
•
Together. Stronger.
Following another very strong year to 30 Bonus issue – a five for one fully As noted above, the “D” shares were
June 2019, the MG Board of Directors has imputed taxable bonus issue on the repaid in March 2019. As a result, a final
resolved to return to its shareholders “C” shares issued out of the above dividend of two cents per “D” share was
significant distributions totalling $9.709 rebate. This amounts to $1.25 million paid at that time.
®
million (2018: $7.148 million) by way of worth of “C” shares being issued
rebate shares, bonus issues and dividends. (Shareholders that are Current The above special bonus issue, rebate,
This is the fifth consecutive year that Producers receive five further “C” bonus issue and dividends represent
shareholders have received a special shares for every one “C” share they $9.7 million being distributed back to
bonus issue. We note that the reported receive from the above rebate). MG’s loyal and supportive shareholders.
total now includes the value of imputation As imputation credits have been Not only is this a significant distribution
credits attached to those distributions. attached to the bonus issue shares, of wealth to the shareholder, but it
they are mostly tax paid in the hands represents the continuing strength of the
On 7 August 2019 the Board declared the of the shareholder. Co-operative as a whole.
following distributions in relation to the
year ended 30 June 2019: • Final dividend – a fully imputed taxable In addition, and as has occurred for many
gross dividend of six cents on every “A” years now, we are pleased to note the
• Special bonus issue – a fully imputed share. Once again imputation credits support of the shareholders through
taxable special bonus issue of: are attached to this dividend. their high level of reinvestment of their
- One new “A” share for every thirty dividends back into more MG “A” shares.
existing “A” shares; and The above distributions will be made If you would like to participate in the
- Two new “B” shares for every five only to those shareholders entered on dividend reinvestment plan please contact
existing “B” shares; and the share register with effect from 30 our Company Secretary, Duncan Pryor, at
June 2019 who continue to hold, at the MG’s Support Office for further information
- Two new “C” shares for every five
ANNUAL MEETING OF existing “C” shares.
date of the 2019 Annual Meeting, the - email dpryor@mgmarketing.co.nz or
SHAREHOLDERS shares held at 30 June 2019. phone (03) 343 1794.
• Supplier shareholder rebate – a
taxable rebate of $250,000 to be
All shareholders are invited to attend applied by the Company in paying up
MG’s Annual Meeting of shareholders. This in full “C” shares of the Company to be
year the event will be held at The Cellar issued at $1.00 each and made in such
Door, 143 Centennial Ave, Alexandra, manner as the Directors determine to
on Wednesday 20 November 2019, those shareholders that are Current
commencing at 5.00pm. Shareholders Producers that have supplied on a
are welcome to join MG directors, consignment basis during the financial
management and staff to formally or year ended 30 June 2019.
informally discuss matters of interest.
There will be drinks following on
from the meeting and a dinner at
approximately 7.30pm.
All shareholders and their partners
are welcome to attend (RSVPs are
required for catering purposes – details
are included in the invitations to all
shareholders distributed with the notice
of the meeting).
10 11
Annual Review 2019
Annual Review 2019
Bruce Irvine Trevor Burt Lynn Crozier
Chairman, Appointed Special Director. Appointed Special Director. Elected Director.
Bruce joined the MG Marketing Board Trevor has high level experience in the Lynn joined the MG Marketing Board in
in 1994. He has an extensive business strategic leadership of large and complex 2012. Today Lynn, through a family-owned
background and previously held corporate organisations, and a proven and operated business since the 1960’s,
the position of Managing Partner of record of implementing change and is a major grower of potatoes, onions and
Together. Stronger.
®
Together. Stronger.
the Christchurch office of Chartered achieving results. As an experienced carrots in Central Canterbury.
Accountants, Deloitte, between 1995 professional director, Trevor has held Member of the MG Audit Committee.
and 2007; and is past Chairman of a number of previous roles including
Christchurch City Holdings Limited. Chair of Ngai Tahu Holdings Corporation Member of the IOD*.
Bruce is currently Chairman of Heartland Ltd and Lyttelton Port of Christchurch
®
Bank, House of Travel Holdings, Rakon Ltd, and Deputy Chair of PGG Wrightson Joanna Lim
and Skope Industries and director of Ltd. Trevor is currently Chair of the New Elected Director.
a number of other public and private Zealand Lamb Company Ltd and Hikurangi
companies. Bruce is MG’s Chairman, Cannabis Company Ltd and is a Director Joanna (Jo) was elected to the MG board
Chair of the LaManna Premier Group’s of Silver Fern Farms Ltd, Landpower NZ in 2018. She and her husband have a
Audit Committee and a Director of Ltd and Hossack Station Ltd. He is also a market garden business (Jade Garden
LaManna Premier Group Pty Ltd. Bruce is trustee of the Māia Health Foundation. Produce) and a share in a cucumber
also a member of MG’s Remuneration & glasshouse operation (Island Horticulture
Chairman of the MG Audit Committee Limited), both in the Christchurch area.
Nomination Committee, Audit Committee and member of the Constitution & Capital
and Constitution & Capital Structure Jo is also a Senior Associate at national
Structure Review Committee. law firm Simpson Grierson and specialises
Review Committee.
Chartered fellow of the IOD*. in financial markets / services and
Chartered Fellow of the IOD* and corporate advice. She also has expertise
Accredited Fellow of the Chartered in climate change issues and the New
Accountants Australia and New Zealand. Mike Russell
Zealand emissions trading scheme. Jo
Elected Director.
involves herself in the local community
Andrew Fenton Mike was appointed to the MG Marketing as a trustee of the Selwyn Arts Trust and
Deputy Chairman, Elected Director. Board in November 2016. member of the St John Selwyn Central
Mike is a first-generation Hawkes Bay Area Committee.
Andrew joined the Board in 2002. He has
more than 35 years in the avocado and grower with 35 years’ experience, Chair of the Constitution & Capital
kiwifruit industries through the Bay of in partnership with his wife Julie, Structure Review Committee and member
Plenty-based Phoenix Partnership and specialising in plums. of MG’s Audit Committee.
↑ MG Board of Directors.
Beresford Orchards Ltd. Member of the MG Remuneration & Member of the IOD*.
From left to right, top to bottom. Bruce Irvine;
Andrew Fenton; Mark O'Connor; Lynn Crozier; He has extensive commercial and Nomination Committee.
Mike Russell; Joanna Lim; Trevor Burt; governance experience in businesses Member of the IOD*.
Trudi Webb; *Peter Hendry (Chief Executive Trudi Webb
Officer); *Duncan Pryor (Company Secretary and industry groups. Andrew is currently Board-appointed Director to fill a
& Chief Financial Officer); *Kerry Wells a director of New Zealand Horticultural Mark O’Connor casual vacancy.
(International Business Manager). Export Authority and Kiwifruit New Elected Director. Trudi is part of a fourth-generation family
*Executive Management attendees. Zealand, President of the NZ Fruitgrowers’
Federation, Chairman of the NZ Mark is serving his second term as a MG growing enterprise, Webb’s Fruit, near
Fruitgrowers’ Charitable Trust, a Member Director having originally joined the MG Cromwell in Central Otago. Trudi holds a
of NZ Kiwifruit Growers Inc. and Chairman Marketing Board in November 2014. He first-class honours Bachelor of Applied
is a Director and shareholder of Appleby Science (Horticulture) degree and is
DIRECTORS & MANAGEMENT of Huddart Parker Building Co. Ltd.
Fresh Ltd, a family-owned market Chairperson of the Otago Fruit Growers
MG Deputy Chairman, Chairman of the MG gardening business in Nelson on the Association and director of Summerfruit
Remuneration & Nomination Committee, Waimea Plains. NZ. Trudi has recently completed the
As part of the Board’s focus on strategic having a non-voting seat at the board was validly nominated to stand for member of the Constitution & Capital
Member of the Constitution & Capital MG Director Internship programme (now
issues affecting our industry and table for approximately 12 months. The election. As a result of there being two Structure Review Committee and a Director
Structure Review Committee. Associate Director programme) and has
Co-operative, we are continuing our Board’s Remuneration & Nomination people standing, both of whom were of LaManna Premier Group Pty Ltd. been appointed to the MG board to fill a
constitutional and capital review as Committee are currently in the process validly nominated for the two positions Andrew was previously the President of Member of the IOD*. casual vacancy until this year’s AGM at
discussed above. of considering candidates for the third available, Mike Russell and Trudi Webb Horticulture NZ and Chairman of Satara which time she will become an elected
Associate Director position. will, in accordance with the constitution, Co-operative Group Ltd. director (as discussed above).
During the year, MG has successfully be declared automatically re-elected / Chartered Fellow of the IOD*.
*Institute of Directors in New Zealand.
completed its second Director Internship, In accordance with the Company’s elected at the 2019 AGM and no election
now to be called Associate Directorship. constitution, Mike Russell and Alan ballot is required. In the interim period,
The Associate Director role is designed Thompson retired by rotation and, on 7 August 2019 the Board appointed
Alan Thompson
for those who have an interest in being eligible, offered themselves Trudi Webb as a director to fill the casual Elected Director (resigned 28 June 2019)
corporate governance and who aspire forward for re-election. Alan Thompson vacancy on the Board. Alan was appointed to the MG Marketing Board in November 2016.
to director level roles. It allows for the subsequently resigned as a director with
Alan has a long history and background in the growing of many crops for the domestic market and for export and
recipient to gain valuable experience by effect from 28 June 2019. Trudi Webb is an experienced exporter in his own right. The family business, Kainui Pack & Cool, is involved in the growing
and packing of citrus, kiwifruit, avocados and melons, with pack house and cool stores in Kerikeri. Alan’s family
business holds a 30% shareholding in Te Mata Exports (2012) Ltd and Alan is a director of that business.
Alan resigned as an MG director on 28 June 2019.
12 13
Annual Review 2019
Annual Review 2019
Together. Stronger.
®
Together. Stronger.
MG PEOPLE
®
Our perennial theme on the value of our
people is no less diminished as we charter
a challenging market environment. We
need to continually invest in our people
so we can stay ahead of our competition
and keep pace with the requirements of
our broad customer base. This means
employing the best people and continually
building their capabilities. By keeping
this top of mind – and following through
in practice - we strengthen them, our
business and the Co-operative.
Our priority must be creating a work
environment that values diversity,
where our people are safe and have the
opportunity to grow and develop. Ours
is a competitive and constantly changing Our priority must be creating a work environment that
environment. For MG to meet these
challenges, we have to be an attractive
values diversity, where our people are safe and have the
environment for outstanding people, who
understand and promote the culture of our
opportunity to grow and develop.
business. The MG Graduate Programme
and Sales Academy is an excellent
As much as MG does to identify new A recurring theme within our industry is
example of how we foster this alignment.
talent, we also continue to work hard on the difficulty in finding the next generation
The sales and marketing development
maintaining our legacy of long-serving staff. of growers. Succession is one of the many
programmes are not only an investment
We repeatedly hear from our customers challenges facing us all and MG is playing
in our people but also in the long-term
how valuable continuity is to the success of its part in assisting with this process with
capability of our industry.
both their and our businesses. another Growing You initiative discussed
later in this review.
← MG Executive Managament Team As we navigate continual change in
From left to right: Peter Hendry (Chief our industry, we are committed to On behalf of the Board and Management,
Executive Officer) Duncan Pryor (Company
supporting tomorrow’s leaders from we thank our staff for their dedication,
Secretary & Chief Financial Officer); Iain
Higgins (IT Manager International); Kimberly within the Co-operative. To this end, hard work and loyal service to our
Chavez (Internal Audit & Risk Manager);
leadership forms a key part of our growers, customers and to our business.
Jade Reeves (Imports Manager); Kerry Wells
(International Business Manager); Roger people development programmes. We again proudly acknowledge this
Georgieff (National Procurement Manager);
Above all else, we value the well-being, contribution by featuring their names in
Chris Hibbert (Chief Information Officer);
Jerry Prendergast (National Key Account & and health and safety of our people. The this Review.
Brand Development Manager); Greig Pullar
‘culture of care’ should never cease and
(National Operations Manager)
for MG it is the essential foundation of
our ‘Together. Safer.’® programme.
14 15
Annual Review 2019
Annual Review 2019
JINKY ACCHENI OPETAIA AFUIE DHRUV AGGARWAL MARIA ALAMEDA ALIPA ALAPATI CATERINA ALESSANDRINI ABID ALI VERDENE ALI DIL MANGAR GAURI MANGAR TIL MANGAR UNTI MANGAR FUSIPALA MANOA DAYAL MANU SAM MARSON IAN MARTIN ROBERT MARTIN
PIFALATI ALOFAKI VINCENT ALOI ANNUNZIATO ANASTASIO SHAJI ANTONY JIAH ARLETTESALLEY VISHANT ARORA JAIPALA ARPORN HAMISH MASON SCOTT MASON FALCO MASTROCOLA LUKE MASTROCOLA BERNARD MATAELE SEKONA MATAELE TOETU MATAIPULE
JOSHUA ATKINSON USOALI AVIIVII ERROL BAIN KERRY BAIRD MANDY BAKER LUKE BAKER-GARTERS NATHAN BALSILLIE ADEEP BARAILI SUZANNE MATTINGLY TAUELI MAUGA TIMOTHY MAWSON AARON MAYNE DANIEL MAZENGIA ALLAN MAZZOLA MURRAY MCBRIDE
RACHEL BARKER TROY BARR PETER BARRETT DAVID BARRIE BLAIR BARWICK JAMES BATEMAN JEGATHEESWARY BATHMANATHAN ALEX MCCALLUM JANET MCCLUSKIE-SUBLETT RYAN MCDOUGALL STORM MCDOWELL YVONNE MCILWAIN LYNN MCKAY
JAMES BELL CAROLYN BELOE CAROLINE BENDALL COLIN BENNETT FRANK BENVENUTO LAURENCE BENVENUTO MARK BENVENUTO MARGARET MCKENZIE ANDREW MCKENZIE ELLEN MCKENZIE MITCHELL MCKEOWEN LUKE MCKEOWN DEREK MCKINNEL PHILIP MCLEAN
Together. Stronger.
®
Together. Stronger.
WENDY BERKETT JACK BESWICK AJESH BHAI BEENA BHANA FAZLI BINMASRI ROSNAH BINTIMOHDHASHIM STACEY BLANCHARD JUSTIN MCVEIGH SOE MEH GREGORY MEIBUSCH REECE MERRETT DALE METCALF MATTHEW METCALF MARK MIDDLETON
MICHELLE BLIGHT ANDREW BODY JAY BOLSTAD CAROL BONHAM KAINE BOOTE CHRISTOPHER BORSATO SHAUN BOWIE TONY BOYD SALVATORE MILANESE DANIEL MILES RANGI MILLAN STEPHEN MILLAR JACQUELINE MILLAR IAN MILNE JO MINTON-CONNELL
EAMMON BOYLE BREV BRAK CHRISTOPHER BRAMMALL GREISI BRAVO MICHAEL BREITMEYER ANNA BRENMUHL NEIL BRIDGENS LAR MIT MALACHI MITCHELL JAYDEN MOLLOY PRADIP MONGAR PURNA MONGAR DANIEL MOOR MICHAEL MOORE RUFINO MORALES
KALEB BRIGHT GRANT BROUGHTON TONY BROWN BRIAN BUCHANAN HAYDEN BUCKLAND KHADGA BUDATHOKI HUYEN BUI JORDYN MORGAN-DENS'E STEVEN MORICE KIM MOUNSEY SAY MOYKHEE ROB MULHOLLAND KEVIN MUNROE SRINIVAS MUPPAVARAM
RAHUL BUKSH DYLAN BULZOMI MAREK BUNGARD DANIELA BUNN LUKE BURGESS TREVOR BURT PETER BUTCHER JOHN BUTTERS LOGAN MURPHY GEOFFREY MURRAY ALLAN MURRAY VINCE MUSICO SOJAN MUTHUNNY WHITNEY MUTU CON MYDARAS
FLORA MYDARAS CON MYLONOPOULOS HAN NAPARK MAHES NARAN VIJAY NARAYAN DANIEL NEUMANN JEFF NEUMANN
®
GABRIELA CACERESIRIBARREN DARREN CACHIA GRANT CADDIGAN DOMINGO CAICEDOVALENCIA ANGUS CALDER FRASER CALDER
MARK CALLEGARI SHAUN CALVI KIERAN CAMPBELL MICHAEL CAMPBELL ALLAN CANLAS ALEX CARTWRIGHT CARLA CASIMIRO PATIENCE NGUGI SY NGUON LIEM NGUYEN SANH NGUYEN TRAN NGUYENTANKHOA PHUONG NHI VO JASON NOBLE
PAUL CASIMIRO ALDO CATALANO NGUNDONGCHIN CEN HRANG TINLIAN CEN HRANG ALBERT CHALMERS ADITYA CHAND COURTNEY NORMAN TIMOTHY NORTH PETER NORTHERN CESAR NUNEZTORO STEVEN OAKES SAMANTHA O'CONNELL
OWEN CHARLESTON KIMBERLY CHAVEZ NELSON CHAVEZ VARELA YAQING CHEN YUMENG CHEN LINDA CHHIM HELENA CHUNG MARK O'CONNOR URSULA O'DONOHUE WAYNE O'HALLORAN GRAEME OLDHAM BRENDAN O'NEILL SEAN O'NEILL CHRISTOPHER O'ROURKE
MARIE CICERO SAMUEL COFFEY TAM COLE-HOLT NICOLA COLLIER AARON CONDON GUISEPPE CORRONE ROCCO CORRONE ROGER O'SULLIVAN RICHARD OTT KIM OUNSOUNG NOEL OWEN FRANZ PABLO SHAJU PADAYATTYHORMMIES
GAVIN COSGRIFF MARK COSSAR JOSHUA CRAIK JAMIE CRAWFORD GIUSEPPE CREA GRANT CREIGHTON ALISTAIR CRETNEY MARARNOE PAHSU SENITU PAKOME MILES PALMER KIRAN PANT DIMITRIOS PAPAGIANNIS MICHAEL PARK MARCUS PARLATO
ANDREW CROSS LYNN CROZIER JACQUELINE CUMMING CHRISTOPHER DAGNALL MELISSA DAMPIER DAHVY DAO LAWRENCE DARLING JAMES PARRY JUSTIN PARSONS MONIKA PATEL SUNIL PATEL ALONE PATIA DEVON PATRIX CRAIG PERRY DARRYL PETERSON
THUY PHAN LAR PHAN HOON PHAT SUZANNE PHIBBS JORDON PHILLIPS FRANK PICCOLO GIOVANNI PILATI LAURA PIO
MARK DAUNT CRAIG DAVENPORT PIA-MARIA DAVIDSON COLIN DAVIS CAMERON DAVISON MICHAEL DEBONO
ENZA PITITTO ROBERT PITOITUA SIATHAN PLIANSATJA MARK PLYMIN TIMOTHY POORTER ADELLE PORTER BLANCA PORTILLOACOSTA
MICHELLE DENSLOW JOSTISHNA DEVI JOSEPH DEVLIN ANTHONY DI PIETRO FRANK DI PIETRO SCOTT DICKEY JONATHAN DILLON
CHABI PRADHAN CHANDRA PRADHAN SENDRU PRANATABONG BHIM PRASADDHUNGANA JERRY PRENDERGAST LIAN PRICE
ADRIAN DIONISIO THAWNGSWE DORU GOLDIE DODDS LEON DODDS DAVID DOHNT RAMON DONES CHRISTOPHER DONEY
DAVID PRICE STEPHEN PRIOR CRAIG PRITCHARD SAMUEL PROUTING DUNCAN PRYOR GREIG PULLAR JAMIE PULLEINE
PHILLIPA DUNN ELIZABETH DUONG DERRICK DYSON GEORGE EAGLES DAVID EDMONDS SHARLENE EDWARDS JACOB EDWARDS
KARTIK PURI KRISHNA PUWARMAGAR TULA PUWARMAGAR LUKE RADAN KAREN RADWAY ASHOK RAI AMIT RAM TONY RANALLI
MIRUNALINI ELANGO KENT ELFORD OBEDA ELIA IAKOPO ELISARA EPATI ELISARA SOLI ALLAN ELLIOTT NAW ELLIS SHIRLEY ELVY
RUSSELL RANGIRANGI ABDUL RASHID JOSHUA RATIMA GIOVANNI RATIMA-MITA JITHENDRA REDDYBATTULA JADE REEVES
JOSH ELY DAVID ERICSON ALAN EVANS PETER EVANS JOANNE EVERINGHAM JIM EVGENIADIS JOVIN FABIC MATTHEW FAIRCLOUGH
MICHAEL REGAN BEH REH DAY REH KO REH NAY REH POE REH POE REH PREH REH SAY REH SHAR REH SHARON REID BRETT REID
ELISARA FALO THAIANG FAMCUN WAYNE FARROW TANSWELL FELIX LAURIE FEMIA ANDREW FENTON FOLAUHOLA FETUU
HOWARD REILLY IAN REISIMA COREY RHEA JOHN RHEA MICAH RICHARDS WENDY RICHARDS SHANE RICKIT JASON ROBERTS
SOANE FETUU ERIC FIELD BLAIR FISHER DOUGLAS FISHER GWENDA FOLEY MURRAY FORBES INGE FOUNTAINE ANGELA FRANCIS
LANCE ROBERTSON RUSSELL ROBINSON JOHN RODERICK LIGIA RODRIGUES CLARISSA ROMANO DAMIEN ROSELLA BENJAMIN ROSS
LINDSAY FRANCIS GEORGE FRANCIS FRANK FRAPPA DAVID FREEMAN CAMERON FRIEND MARIA FROOME TUAMAFA FRUEAN
FRANK RUGGIERO NI RUNG NATASHA RUS JAMIE RUSS MIKE RUSSELL MATHEW RYAN DANIEL SALAU ADELINE SALLEY-GLOBIO
BAILEY GALL DEAN GALL TRENT GALL FRANCESCO GALLICCHIO DAVID GANNON ROMEO GARCIA FLOYD GARDINER JESSICA GARDNER
GLENN SALT LAL SANGI DAVID SAVILLE ROCCO SCARFO NATALIE SCARGALL KYLE SCHINS EVELYN SCHWEIGHOFER
DOMINIC GARGIULO BRIAN GARGIULO JAMES GARGIULO MARCUS GARGIULO PIERRE GARGIULO ABRAHAM GARZA COLIN GASS PAOLO SCIANCALEPORE SHANE SCOTT DIANE SCOTT LIN SHATEHO BRUCE SHEED REBECCA SHEED CURTLY SHRIMPTON
ROGER GEORGIEFF BRENDAN GIBBONS IVAN GILBERT CLAUDIA GIORNO BENJAMIN GLANVILLE MARCUS GOBALD ALEX GODFREY KAMALKANT SHUKLA AMANDEEP SINGH ARSHDEEP SINGH ASHNOTI SINGH DILDAR SINGH HARVINDER SINGH
JIMMY GOMEZCRUZ MATTHEW GORDON BRENT GRAHAM DAVID GRASSO ELIZABETH GREENWOOD DANUTA GROBELSKI ADAM GROVE RACHHPAL SINGH SATNAM SINGH PRANEEL SINGH GURTEJ SINGHSIDHU HARSIMRAN SINGHSRAN INDIANA SINNOTT
MARTIN GRUNDLINGH PRANESH GUPTAANDHYALA ABBAS HAIDER CHRIS HAJOS DEAN HAMILL NURUL HANA MOHD SHOKERI JOHN SIOZIOS WAICHUEN SIU TIMEA SIVERTSEN STEVEN SKRUZNY ANTON SKVORTCOV NATHAN SMART MARK SMITH
THI HAODINH NALEEN HARAKH SIMON HARDIE MARK HARDING JOSHUA HARDING LIAM HART BRUCE HARVEY SCOTT HARVEY GLENN SMITH SEFETI SOANE DAVINDER SOHI TAFUNAI SOLI TREVOR SOLOMONA DAVID SPEDDING MELISSA SPENCER
ERROL HATTERSLEY VILIAMI HAVILI JAMES HAYWARD DANIELSON HEATHER ALEX HENDRY PETER HENDRY MARIA HENRY-MELSOM RHETT SPENCER STEPHEN SPENCER JOSEPH SPITERI BRENDAN SPITTLES KELLIE STAM PETER STAM NUNZIO STARVAGGI
ADAM HEREMAIA CHRIS HIBBERT SIMON HICKEY WING HIEW IAIN HIGGINS MOHAMMAD HIJAZI TRUCE-ANNE HILLARY JACK HILLIER MICHAEL STEVENS ANTHONY STONE OWEN STOTTS SIMONE STRATHAIRN GRANT STUMBLES HEKI SUVAMOUNGA WAYNE SWIFT
CORAZON HINCHCLIFFE TJ HIRINI ALEX HIRSLER GRAEME HIRST NGUNDAWTLIAN HLAWNCEU CUNG HLICHAL ANDREW HOARE GEORGE SYMEONAKIS AARON TAHI RICHARD TAIAROA ISILELI TAKAU DARRIA TALAWNG CEM TALAWNG AJITH TAMANG
MARK HOBBS ROB HOLLIER BLAKE HOOKHAM MATTHEW HOUSE ROSS HOWARD MARTIC HRABANOV YUANYUAN HU COLIN HUDGSON BONNIE TAMATEA SUN TANG SAIMONE TANGATAEVAHA PIERRE TANNOURI FA'AILOGA TANUVASA KELEKOLIO TAPUELUELU
ANDREW HUESSER WAYNE HUME BENJAMIN HUME NIDA HUOT PIO HURINUI PETER HURRING GRANT INWOOD SALA IOANE ANGELO TARANTO MARIO TARANTO TAVINA TAVINA PHUONG TAYHUYNH CAMERON TAYLOR GORDON TAYLOR EVAN TEHIKO
BRUCE IRVINE KAORI ISHIKAWA JEREMY JAMES BEATA JANKO CHARLOTTE JEFFORD KYOHUN JEONG MATTHEW JEWELL YI JIANG KAIREWA TEPANIA HENGKIM THACH KIENNGOC THACH THANHNI THACH THISADRY THACH THUON THACH NU THANH DIEP
NARENDRA JINA MAXWELL JOHANSSON PAUL JOHNSON ABBY JONES PIERRE JOUBERT TRIIN KALMUS CARMEN KANNIS BIJENDRA THAPALIYA DEP DANH THI OANH THI UTKIM THI ELANGO THIYAGAARAJAN BEN THOMAS EMMA THOMAS ALAN THOMPSON
JONATHAN KARANTGIS PARDEEP KATARIA LOPASITA KATOA PENISONI KATOA JASBIR KAUR RAMINDER KAUR SIOSAIA KAVA PAULINE THOMPSON WILLIAM THRUSSELL LAR THU MICHAEL TIERNEY SUNG TLUANG NEH ALFRED TOAILOA BERNARD TOAILOA
MATTHEW KELSALL RORTHA KEO JANETTE KERR IRSHAD KHAN RAKSMEY KHUN RIAN KIDD THI KIEU DIEM CHAU HYEMIN KIM MATTHAN TOAILOA ROMERO TOAILOA MAREE TOKOLAHI MOEAKI TOMA PENISIMANI TONGA PETERU TOPETO JAMES TORDOFF
PAUL KING JENNIFER KIRKWOOD DODINA KISONA SHARON KLEINHANS NEELAM KOUR JAYAPRAKASH KRISHNAMOORTHY CYRIL TORRANCE MU TOY THIHUE TRAM THIXUANDAO TRAN THISIDA TRAN TRAI TRAN VE TRAN THI TRANG DOUG TRASK
CHARLIE KUMAR MANDEEP KUMAR SUSHMITA KUMAR GAURAV KUMAR DAVID LADARU PANAPA LAFOA ROSS LAIDLAW JOSEPH TRIMBOLI NATASHA TROVATO ALAN TSAI JERMAINE TUHI TOLOVAE TUILAEPA TUITI-ANGELAS TUITI-TAHI BOBBY TUPOU
SIULAATI LAKALAKA SAMUELAFOTU LALONI HIEUTHINGOC LAM ANGILILO LAMA SIFA LAMA TIUETIFONUA LAMA GEOFF LAMONT CARL TURNER TAMANGO UARUTA MAI UNG BRANDON UTIA AISEA VAILEA GIUSEPPE VALLELONGA PENG VANPENG ANDREW VASSALLO
DAVID LANDY LAWRENCE LAVERY HUMPHREY LAWRENCE JUHEE LEE HAZEL LEES ERONI LEILUA RICCARDO LE'MONT CHRISTOPHER LEONE IRINA VASSILIEVA KELEPI VAVE CON VELONIAS APOLLO VUNIPOLA JOHN WADDINGTON SHANE WADSWORTH SHERYL WAGNER
CHI LEUNG GAVIN LEVY TRUDY LEWIS MICHAEL LIA JO LIM BIMALA LIMBU KAREN LINDSAY CAROL LISSINGTON DANIEL LITTLE MICHAEL WAGNER ALAN WAKE BRETT WALKER MURRAY WARD ROSS WATSON KATE WATSON JENNIFER WATT TRUDI WEBB
WILLIAM LITTLE XIUGE LIU ZHONGYA LIU LEI LIU MARK LOGIUDICE KWAI LOKNG PETER LOPES CHUN-CHIA LU DICKSON LUPO WAYNE WEBLEY KERRY WELLS KELLY WETERE LA WI KEN WILLEY ELLIOT WILLIAMS DIANA WILSON ANDREW WILTON
TUSIGA LUTAU BRUCE LYON ROSS MADAFFERI BAL MAGAR BOM MAGAR MANGAL MAGAR YAM MAGAR TK MAH BRADLEY MAHAR CHIN WINGLAM WING WONG JARED WOODCOCK ETHAN WOODMASS ROSANNE WORSFOLD ALEX YE JONGHO YEO
BRENT MAHAR AJAY MAJHI JITH MAJHI SHAQUILLE MAKIHA JAMES MALONEY JOSEPH MANARITI ROCCO MANARITI DHAN MANGAR CHENGMING YI QUI YINGHUANG JIAN YULIN YEN YU-CHENG ANTONIO ZANNINO CATINTIAL ZATHANG WENDY ZHOU
16 17Annual Review 2019
Annual Review 2019
Together. Stronger.
®
Together. Stronger.
®
We remain acutely conscious of the need to create and maintain
sustainable supply programmes with growers and customers
despite events beyond our control.
NEW ZEALAND OPERATIONS
The New Zealand operations maintained We remain acutely conscious of the progressively occur over two years. Even There is an on-going requirement for MG has made a further investment Delivery Advice portal have been recent
an upward growth curve and had need to create and maintain sustainable with new ways of facilitating business the industry to continually develop in a berry fruit joint venture, Kaipaki examples of this, but we will continue to
another record year in gross sales under supply programmes with growers and direct to customers, the continued fresh talent and improve succession Berryfruits Ltd, with a similar strategy do things smarter and more efficiently as
management and pre-tax profit. It was customers despite events beyond our growth at our Auckland operations is no planning. Ewers recognises this and is of securing supply and custom. This will costs rise and margins are squeezed.
especially pleasing to see sales increasing control. A recurring theme throughout longer supported by the current facilities. implementing a grower internship this be a substantial operation which moves
in the current market climate despite this report is the need for good Extensions and, potentially, adding a new coming December, working with several away from traditional growing methods, We are always looking at ways to make
deflated prices across many lines at times communication and planning, allied to building will allow further growth and schools to find the next generation of requiring high capital input for under work at MG more rewarding, whether
during the year, especially in the last investment in human resources. efficiency gains. growers. Our intention is to roll this out cover cropping to better manage weather it’s for long-serving staff or newcomers
quarter of the financial year. All operating to other supply regions in partnership variables, while creating labour efficiency. who we recruit through our graduate
divisions performed well, and expenses Some major capital work projects are JS Ewers Ltd (Ewers), in its second year with growers after gaining insight and The business is located in Cambridge and programme. We pay particular attention
continue to be appropriately managed. underway and will continue throughout as a fully owned MG entity, has had a learnings from the implementation of the will utilise IP varieties that will help grow to enhancing our procurement systems,
2020. A new computer operating very good performance despite the programme. category demand here and at other MG the effectiveness of our sales team and
Responding to climate variables seems system will be in place by the June 2020 lower values through the later part of supplier operations. key account management - the 2019
like a never-ending theme and is very year end – this will allow our growers the 2019 financial year. Ewers continues Ewers is a substantial glasshouse and results demonstrate that the physical,
visible through media and on the farm. and customers to access information to enhance its sustainability with capital outdoor vegetable production unit Costs continue to be well managed, but financial and emotional investment is well
The mild autumn and winter of this year seamlessly and in real time, while projects focused on heat recovery and that delivers on MG’s core purpose of we face continual inflationary pressure worthwhile. Crucially, at a broad level,
has created early and large volumes providing more efficiency and accuracy efficiencies in the glasshouse operations. generating shareholder wealth in line and we are crucially aware of the ongoing the effort also serves to strengthen us as
of crops across many products with for the business. For insurance purposes Ewers has also played its part in securing with our strategic pillars. As well as focus needed in this area. As mentioned a Co-operative.
the consequence of reduced returns. we are now retrofitting our five largest long term water supply through a being a profitable business, the scale, earlier the cost of compliance, insurance,
A softening of demand is also evident, branches with sprinkler systems. This significant investment in and support of range, quality and continuity of supply it rising minimum wage costs, fuel and
and we expect this to continue for some is a significant expense imposed on the the Waimea Dam project. brings creates category support from key many other areas of our business,
time as domestic and global financial business to ensure our major assets are customers. This allows other suppliers to requires on-going investment in
pressures shape consumer purchasing able to be insured. Auckland branch support category supply initiatives and technology, systems and people to lower
behaviour to some extent. extensions are commencing and will grow their business. the affects. Our MG Direct and Grower
18 19Annual Review 2019
Annual Review 2019
Together. Stronger.
®
Together. Stronger.
®
↑ LaManna Premier Group Board of Directors.
From left to right, top to bottom. Anthony Di Pietro (Group CEO)
*Dean Gall (Chief Operating Officer); Brian Gargiulo, MBE (Chair);
Andrew Fenton; Bruce Irvine; Mark LoGiudice; *Mark Plymin (Chief
Financial Officer); *Jo Minton-Connell (GM Human Resources); Peter
Hendry; *Simon Hardie (Chief Commerical Officer); *Duncan Pryor
(Secretary to the Board).
*Executive Management attendees.
INTERNATIONAL TRADING
The imports marketplace has been
competitive across all major import
our domestic suppliers, the ability to
build lasting relationships and a deep
and many more family run businesses.
They provide MG with the necessary
AUSTRALIAN OPERATIONS – LAMANNA PREMIER GROUP PTY. LTD (LPG)
lines. Market share on bananas remained understanding of the marketplace are supply and support to meet the
stable, with consumer consumption key factors in our success. Many of our discerning needs of our customers and The 2019 financial year shows a reduced year on year costs as well categories are the flagship of LPG,
down on the previous year, but average international supply partners have been consumers. substantial improvement on LPG’s as delivering customers and grower nationally, and are both supported by
values improved. Imports of other with MG from the early days of import 2018 trading results. This has been suppliers with industry leading our industry leading farming and packing
product lines improved in terms of deregulation in the mid ‘90s. New pest interceptions and the need encouraging progress in an environment service. An expansion of 'direct to operations. LPG also continues to evolve
market share during the year but were to protect our borders from unwanted of continued volatility and challenging distribution facilities' supply across all as an industry leader in its other key
constrained on margin in a competitive Across the key import lines of bananas, pests through new post-harvest market conditions in Australia. The Board categories is having a positive effect categories of soft vegetables (capsicum,
market - the legacy of some challenging citrus and grapes we have supply treatments are presenting some supply and Management of LPG continue to on our cost management which will zucchini and eggplant), melons,
growing seasons. Overall the Company partnerships with highly regarded challenges moving forward. MPI is focus on post-merger structural change also enable warehouse consolidation pumpkin, citrus, tropical fruits and stone
had a record year of turnover across all international suppliers such as Dole (25 currently reviewing all import health and business improvement strategies. over the medium to longer term. (summer) fruits.
import lines - MG leads the way with the years in partnership), Sunkist (19 years), standards for fruit and vegetables, All of this is aimed at underpinning The development of our business
import of domestically unavailable or Mildura Fruit Co in Australia, Jasmine which is likely to present new challenges continued growth and sustainability in all analytics tool progressed in 2019. Its Ripening and service provision to
out of season products and continues Vineyards (19 years) in California, Dole and potentially opportunities. market conditions. implementation through 2020 will third party growers and packers,
to provide the necessary resources to Chile (24 years), Fruitmaster in Australia enable close performance management particularly mangoes and avocadoes,
growing and improving this key category The 2018 depressed market conditions reporting according to activity in the key grew significantly. This was on the back
to support the Company’s overall continued early into 2019 before an revenue streams of the business in all of ripening infrastructure improvements
business proposition. Overall the company improvement halfway through the year. operating divisions. and a focus on building facilities with
Whilst supply conditions fluctuated and industry leading systems, processes and
Our ability to meet discerning customer
had a record year of impacted market conditions, several of Our investments in key categories from team expertise in ripening management.
and consumer needs is supported by
many suppliers from 17 countries who
turnover across all our initiatives helped mitigate this. farm production right through the supply
chain enabled LPG to secure strategic International sales are set to grow
are leaders in their field. Much like import lines. From a cost management perspective, sales volume commitments with major
retailers. The banana and tomato
significantly in 2020 following the
commencement of the ‘LPG Cutri Fruit
improvements in operational efficiencies
20 21Annual Review 2019
Annual Review 2019
LPG Farming Operations
LPG Warehouse and
Market Operations
Together. Stronger.
®
Together. Stronger.
Brisbane
®
Perth
We are addressing our short-term challenges head Adelaide Sydney
on in order to meet MG's and LPG’s long-term vision
of growth and sustainability. Melbourne
Global’ business in 2019. Cutri Fruit is meet and exceed requirements of the Investment in our talent programme
one of Australia’s leading stone fruit corporate ownership of major retailers. is also having a positive impact on LPG FARMING OPERATIONS
growers and packers and a trusted LPG’s performance with the third-year
partner of LPG. We are excited about Our farming operations have maintained intake of the Graduate Programme Innisfail Banana Farming Company Freshway Farms LPG Lancaster Farming
the prospect of our joint approach to an ongoing focus on improving underway. Our inaugural graduates (Joint Venture with the Borsato Virginia, South Australia Lancaster, Victoria
international sales and marketing, which operational efficiencies, yields and quality are all progressing well. Our teams Family), Innisfail, Queensland - 2.7 hectares of greenhouses - Hydroponic crops grown under
will leverage the benefits and strengths production. Our supply commitments are now investing in the “Growing You” - Circa 142 hectares under crop - Growing tomatoes, capsicums, a retractable roof structure
of both partners. with the major retailers underpin High Performance Programme, aimed - Circa 340,000 cartons produced cucumbers, zucchini and eggplant - Stage 1 (5 hectares) of a 3 stage
continued investment in growth and at accelerating the development of our annually - Circa 160,000 cartons produced 25 hectare project complete and
Volumes of non-core lines continue improvement. Maintaining product values high potential employees. annually under harvest
to be challenging with limited continues to be the most significant Australian Banana Company - Initially growing gourmet tomatoes
Innisfail, Queensland LPG Mercuri Farming - Circa 250,000 cartons to be
opportunities into major retailers and challenge for our farms. Our LPG team members continue to
- 2 banana packing facilities (Joint Venture with the Mercuri produced annually in Stage 1
most sales being through our Trading strive for excellence and are proud to
- Specialising in banana packing Family) Lancaster, Victoria
(central market) Division. We continue to invest in infrastructure be part of the Trans-Tasman Group.
- Circa 1.2 million cartons packed p.a. - 57
hectares of field tomatoes
and system improvements to drive cost We are addressing our short-term under crop
LPG is well placed to continue to grow efficiencies and revenue growth. Such challenges head on in order to meet MG arwin Fruit Farms
D - Circa
340,000 cartons
with major retailers. Our supply chain initiatives included the expansion of the and LPG’s long-term vision of growth and (Joint Venture with Piñata Farms)
model offers consistency of supply, Brisbane distribution centre with new sustainability. Humpty Doo, Northern Territory LPG Cutri Fruit Global
fully integrated quality management state of the art ripening facilities, and the - 369 hectares under crop (Joint Venture with Cutri Fruits)
systems, category management teams installation of pipe and rail infrastructure -G rowing bananas, pineapples and Woorinen, Victoria
that plan alongside retailers, along with at the Lancaster Farms greenhouse. tropical fruits (primarily mangoes) - International Sales combining LPG
compliance and ethical standards that -C irca 320,000 cartons produced and Cutri Fruit resources
annually - 384 hectares of stone fruit
(nectarines, peaches, plums)
- Circa 8 million kgs produced annually
22 23Annual Review 2019
Annual Review 2019
Together. Stronger.
®
Together. Stronger.
UNITED FLOWER
GROWERS LTD (UFG)
MG’s joint venture flower business also
®
had a challenging year of trading, with
top line sales slightly down on last year
and higher operating costs contributing
to a reduced result.
General trading conditions reflect a
weakening of consumer economic
confidence and the tightening of spend
on luxury or discretionary items. These
financial head-winds look likely to
continue for some time. Overall, the
industry is consolidating and channels to
market are evolving. UFG is monitoring
these changes and continues to adapt
accordingly. This business is no different
to fruit and vegetables, requiring the
same levels of discipline around cost
control, stakeholder service, support and
communication in order to be successful.
The business now operates from a
in this category – backed by on-going
network of five locations with auction
investment in scale, post-harvest
and wholesale facilities in Auckland,
infrastructure and new IP varieties
Wellington and Christchurch, as well
creating improved eating experiences,
as wholesale facilities in Dunedin and
TE MATA EXPORTS shelf life and grower returns.
Invercargill. The cloud auction services
2012 LTD (TE MATA) (online auction portal) through the
Sales across other traded products
Auckland and Christchurch branches
(citrus, cherries, avocado and grapes)
provide further reach beyond the
MG’s joint venture export partner, Te were more challenging due to weather
main cities.
Mata, has had mixed trading across its variables, shorter crops and some fruit
product portfolio in its financial year condition issues. Seasonal variances are
UFG is investing in a new business
ended 31 December 2018. not unusual, and we expect there to be
operating platform that will further
an improvement in future years as we
improve company performance,
Generally speaking, the apple industry continue to diversify further with scale in
efficiencies and enhance the cloud
enjoyed another strong export season these categories.
auction. The business will continue
in 2018 and this was reflected in the
to focus on investing in streamlining
company’s performance with sales The business is continuing to invest in
processes, product consistency,
volume, turnover and returns improved more internal resources to assist with
improved logistics and effective
on the previous year. We expect our additional volumes and capturing new
marketing of New Zealand cut flowers,
apple exports to continue to grow as opportunities. Te Mata will also look at
supplementing this with imported
supply partners increase their volume other strategic investments to secure
product at appropriate times.
and yields. We see a positive future supply and grow the business.
24 25Annual Review 2019
Annual Review 2019
Together. Stronger.
®
Together. Stronger.
®
FIRST FRESH NEW ZEALAND LTD (FIRST FRESH) NEW ZEALAND FRUIT TREE COMPANY LTD
MG purchased a 30% share of Gisborne the autumn and winter of 2018 meant that packs and markets over 70% of the MG now has a 33% shareholding The business has suffered setbacks
based First Fresh in December 2017. This managing quality was paramount and this national persimmon crop and with a (2018: 22%) in the New Zealand Fruit during the year but continues to perform
company was formed in 1989 to pack and is an area where First Fresh excels. strong export component this product Tree Company Ltd, along with 33% well. These setbacks were due to
market an expanding volume of locally is hugely important to the business. of Zee Sweet Ltd – these companies biosecurity issues which have delayed the
grown product, both domestically and Citrus exports, which mainly focuses on Access has recently been granted to two were established in 1996 and manage importation and commercialisation of a
offshore. First Fresh are the largest lemons, were steady in the main markets new markets (USA and China) and the intellectual property rights, representing number of new varieties – the business
citrus supplier to the domestic market, of Japan, the US and China. New Zealand company is in the process of developing a wide range of global plant breeders in (along with other affected parties)
as well as a leading exporter of both is very much a niche player on a global supply programmes to them. the New Zealand market for summer-fruit successfully contested the adverse MPI
citrus and persimmons. The investment scale but nonetheless it can exploit and pip-fruit in particular. rulings, but the commercial setback
has strengthened MG’s supply base in counter seasonal opportunities that exist. New Zealand Fruits Limited, First Fresh’s could not be reversed immediately.
these products, along with kiwifruit and postharvest service provider, completed The investment was strategically
other sub-tropical lines, for the New First Fresh has secured the exclusive a multimillion upgrade to its facility designed to strengthen MG’s position
Zealand market. right to pack Sunkist branded citrus in including the installation of the latest in as a leading domestic marketer of New
New Zealand (Meyer lemons, oranges fruit grading and sizing technology. In Zealand summer-fruit. In addition,
Overall the industry volume of citrus and mandarins) and market this fruit to time this new line will provide efficiencies MG is now at the forefront of assisting
was up for the year. Citrus is particularly Sunkist receivers in Asia. The Sunkist around packing and quality. growers with new varieties that appeal
prone to biennial bearing which led to brand is well recognised in Asian markets to consumers, along with enhancing
periods of oversupply on the domestic and offers First Fresh further scope to The addition of two new staff members farmgate returns and a more sustainable
market and this year values were develop citrus exports. in late 2018 bolstered the First Fresh future. There are a number of exciting
generally lower per kilo as a result. sales, marketing and field service teams, new apple varieties also coming to
First Fresh managed to maintain market New plantings of persimmons coming which has the company well poised for market which MG will participate in
share across all of the major varieties. on stream in Gisborne saw an overall lift future growth. through its involvement in Te Mata
Challenging weather conditions through in production of this crop. First Fresh (discussed above).
26 27You can also read
