Market Gardeners Limited Annual Review 2020 - MG Marketing
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Market Gardeners Limited Annual Review 2020
Annual Review 2020
®
Together. Stronger.
CONTENTS
Financial Highlights 02
Chairman's & CEO's Review 04
Income & Cash Flow Statements 32
Balance Sheet 33
Branch Register, Bank & Advisors 36
1
Annual Review 2020
Annual Review 2020
Together. Stronger.
®
Together. Stronger.
Financial Highlights Shareholder distributions
®
Group gross sales under management
$934.735 million
2020 2019
$'000 $'000
Group profit before income tax
- Special Bonus Issue (November 2020)
$12.898 million • 1 for 30 on "A" shares (2019: 1 for 30) 941 772
• 2 for 5 on "B" shares (2019: 2 for 5) 3,068 3,308
• 1 for 2 on "C" shares (2019: 2 for 5) 741 399
Group profit for the year
(after income tax)
$11.370 million - Supplier shareholder rebate (issued as 2020 "C" shares)
250 250
(2019: issued as 2019 "C" shares)
- Bonus issue on supplier shareholder rebate of 3 for 1
750 1,250
(2019: 5 for 1)
Group total equity
$143.800 million - Final gross dividend on "A" share: 5 cents per share
(2019: 6 cents per share)
1,459 1,436
- "D" shares - nil (“D” Shares – March 2019 – final gross dividend:
- 66
2 cents per “D” share)
Group total assets
- Imputation credits attaching to the above distributions 2,139 2,228
$362.693 million
Total shareholder distributions in relation to the year ended 30 June 9,348 9,709
2 3
Annual Review 2020
Annual Review 2020
Chairman's & shareholders. A more detailed overview
Together. Stronger.
®
Together. Stronger.
of our financials and distributions is
outlined on page 10 of this report.
CEO's Review
This year has again shown that we are in
a good position to manage the inherent
®
volatility of our sector by adapting to
changing conditions. It also highlighted
the advantages of our strategy to have
diversity across our business offering.
This includes imports, exports, growing
It is with great pleasure that we present
operations, investment in IP as well as our
the Annual Review for the Market
core strength of marketing fresh produce
Gardeners Group on behalf of the Board
on behalf of our family of growers in New
and Management.
Zealand and Australia. Having a variety of
Despite an uncertain and at times complementary subsidiary and associate
unpredictable environment, our businesses supports our robust business
story in 2020 was again one of strong model through difficult conditions which
returns, implementation of key strategic are par-for-the-course in the horticulture
initiatives, and growing our relationships sector.
with our grower suppliers and our
While the Co-operative dealt with a myriad
customers. We achieved our goal of
of issues throughout the year, including
steadily building on the momentum
depressed New Zealand product pricing
of previous years and ensured we
in the first quarter, a number of complex
have established ourselves on a firm
border issues for our imports business and
financial footing. This is because our
a number of one-off events that adversely
fundamentals remain strong and are
affected our Australian operation,
grounded in a long history of adapting
undoubtedly the most significant challenge
and delivering, which is evident in the
was the impact of COVID-19. Given the
underlying strength of our Co-operative.
significance of the global outbreak, it is
Market Gardeners Ltd, trading as MG a theme throughout this review, as is the
Marketing, delivered a very good financial way our people responded.
result, underpinned by record domestic
Our navigation through the crisis
sales in New Zealand of $486.8m and a
highlighted that our Co-operative is as
profit after tax for our New Zealand based
resilient as it is rich in history. Throughout
businesses of $14.74m. A difficult year in
our 97 years we have remained
Australia lead to a $3.37m loss after tax
operational through wars, depressions,
which offset some of the gains achieved
natural disasters and now a global
by the Group, however, overall Group
pandemic. What has remained consistent
revenue increased by $22.2m and we
is our ability to roll up our sleeves and get
delivered a consolidated Group net profit
the job done. While the future remains
before tax of $12.8m. This is a particularly
uncertain, our simple strategy to remain
pleasing result, in what can be described
focused on delivering excellent service,
as a turbulent year, against a backdrop of
This year has again shown that we are in extreme external challenges.
working hard to support our growers,
maintain positive employee engagement
a good position to manage the inherent Based on this result the Board declared
a total distribution for the year of $9.3m.
and explore business opportunities that
will contribute to the long-term success
volatility of our sector by adapting to This underscores our commitment to of our Co-operative, is unchanged. Our
changing conditions. ensure the benefits of the Co-operative’s
growth and success are enjoyed by our
response to COVID-19 is covered in more
detail later in this review.
4 5
Annual Review 2020
Annual Review 2020
structure of the Co-operative and
The MG domestic business remains the for the benefit of our shareholders. This compliance expectations, increased drive an engagement programme with
cornerstone of our success and the most year we have again focused our resources labour costs and the requirement to shareholders to determine if there was any
Together. Stronger.
®
Together. Stronger.
significant contributor to our result. While and expertise in areas we believe will deal with the impact of COVID-19 for a appetite for change. This is not because
good values in the second half of the strengthen our relevance to key retail sustained period. the business is in any sort of difficulty –
financial year had a positive effect, the customers and growers. We have made quite the opposite. The Board felt that
What is clear is that to be successful in
overwhelming reason for our continued further investment in IP varieties that now was the right time to take a step back
the challenging and fast-paced Australian
®
success is the ongoing support from our deliver superior taste, yield and shelf- and seek the view of our shareholders with
market, LPG must be more efficient and
grower-suppliers and our ability to deliver life, including securing the rights to regard to the dollar-in, dollar-out model,
innovative, continually renewing the
a range of services to our customers that exclusively grow BerryWorld varieties the current share value in relation to the
business while maintaining high standards
add value to their business. in New Zealand. A key element to our equity value and ensure our structure is
to which they have long been committed.
growth strategy is securing supply in appropriate for the type of business MG
We have advanced the planning for a
selected categories through investment While there will still be challenging is today. The initial phase of the project
new facility on our Auckland site, having
in targeted growing operations. To this times ahead in Australia, there will has been completed. This included
committed $20m for the project which
end there has been a direct connection also be great opportunities and we are the option for shareholders to submit
will provide a much needed additional
between the volumes supplied by such committed to making the appropriate their view via a structured feedback
3600sqm of warehouse capacity and
operations, including JS Ewers and decisions, at the right time, to improve form and the promotion of dedicated
a further 450sqm of office space. The
Kaipaki Berries, and the business MG is LPG’s performance. The LPG Board communication channels for shareholders
Auckland branch has experienced
able to secure for all growers supplying endorsed an operational review and the to contribute at any time. The information
rapid growth across the past decade
into those categories. LPG management team has embarked received has been extremely useful and
and the new building will help alleviate
on a considerable programme of work helped guide the CSWG towards a set
pressure on our existing warehouse while In a diversified business like ours, some
to modify the business. However, it is of recommendations. The next phase
providing capacity for further growth. areas can be performing well while others
important to bear in mind that there is no is currently being worked through for
It has advanced to the detailed design face challenges.
short-term fix and the work underway will communication to shareholders and
and consenting stage with contractors
expected to turn soil in November 2020.
After a positive financial result in 2019,
LaManna Premier Group (LPG) was
deliver incremental changes, with the full
impact of the improvements not being The overwhelming reason for our an update will be provided to the 2020
Annual Meeting of shareholders.
We have a clear strategy to position
the Co-operative for the long-term and
impacted by a number of issues, including
difficult market conditions, weather events
realised immediately.
continued success is the ongoing At the 2019 AGM, shareholders voted in
continue to grow the overall profitability at farming operations, managing various support from our grower-suppliers favour of establishing the MG Marketing
Charitable Trust as a philanthropic arm
of the Co-operative that will focus on
charitable good within the industry and
community. Progress has been made
It is also important that the future for LPG
getting the Trust established with the
is not to be clouded by a difficult year.
charitable status application having been
Naturally, we are disappointed with the
submitted. Former Board member, and
financial result, but we have confidence
current grower-shareholder, John Clarke
in the people leading the business and in
has been appointed as Chair of the Trust
the direction it is heading.
and a process is underway to finalise the
The MG Board has a shared desire to final additional Trustees.
ensure the Co-operative’s strategic
Looking ahead, shareholders can expect
business objectives are met at all times,
steady growth through continued
while acting in the best interests of the
diversification in New Zealand, and
shareholders as a whole. The Board has
continued improvements in our Australian
been focused on a number of projects
business. The 2021 financial year will
aimed at creating greater value for
no doubt provide more challenges and
shareholders.
opportunities, but our business is strong
The Board initiated the formation of and we have a clear strategy that will
the Co-operative Structure Working position us to continue to grow.
Group (CSWG) to reflect on the current
6 7
Annual Review 2020
Annual Review 2020
Together. Stronger.
®
Together. Stronger.
RESPONDING TO COVID-19
The final months of the financial year were impacted
®
by the serious health and economic consequences of
COVID-19. Our Co-operative took swift action across our
business in response to the unfolding crisis.
We introduced measures to ensure are the men and women in branches
the safety of our people, support our who turned up day-in and day-out to
MG and all of our subsidiary and
growers, customers and communities, make sure we were able to support our
associate businesses remain com-
while also taking the necessary steps growers and our customers. They were mitted to support government
for the continuity of our operations. flexible, often undertaking new tasks, and community efforts to limit the
This included restricting access to our working in different teams, all without spread of COVID-19.
sites and implementing a large number interruption to their standard of work or
At the time of finalising this
Across the Co-operative we continue to build on of new operating procedures. We also
invested in measures such as face
level of service. The response from our
growers and customers was equally as
Annual Review, we are closely
our already strong relationships with our growers masks, additional intensive cleaning committed, and together we’ve all helped
monitoring the status and impact
of COVID-19 and remain focused
and customers and thank them for their support and hand sanitiser stations to protect
the health and safety of everyone who
New Zealand through the crisis.
As an organisation, we worked hard on
on staying operational during this
challenging time.
during the year. enters our facilities.
ensuring we communicated clearly and Lastly, our thoughts are with the
We are proud of the way in which our consistently with all of our stakeholders individuals and families whose
teams across our Co-operative flexed our throughout this crisis and that we kept lives have been impacted by
operations to deal with dramatic market people connected. COVID-19. We would also wish
volatility while adapting to the new way to express our appreciation of
Given it’s a rapidly changing the healthcare professionals who
of working.
Across the Co-operative we continue to Within this review, you can read more situation, we enhanced our Board and continue to work tirelessly to look
build on our already strong relationships about the different businesses that We would like to make special mention of Management oversight during the after and protect people through-
with our growers and customers and make up our Co-operative, and the our people in operational roles who work crisis by meeting regularly using video out this crisis.
thank them all for their support during initiatives that are taking place to at the coalface of our business. These conferencing technology.
the year. support our growers, customers and the
communities in which we operate, as In summary, our response was anchored by three priorities:
We would like to commend the well as more detail about our response
entire team across our Co-operative. to the COVID-19 pandemic.
The business showed tenacity and
commitment to produce a positive set of Lastly, we would like to thank all of our
results. We would also like to thank the shareholders for their ongoing support.
Board for their strategic contributions Together, we are creating a better future
during the year and unwavering for our Co-operative.
commitment and dedication. Together. Stronger.® 1. Protecting our teams 2. Playing an essential role 3. Supporting those affected
Ensuring we communicated Ensuring our Co-operative remained Using our expertise and resources
effectively and had the right safety operational throughout this period so to provide guidance and support to
measures in place to keep our people we could continue to support growers, growers and customers challenged by
safe and healthy. customers and the communities in the pandemic, while also contributing
which we operate by ensuring there was to the communities and wider society.
Peter Hendry a continual supply of fresh produce.
Bruce Irvine
Chief Executive Officer
Chairman
8 9
Annual Review 2020
Annual Review 2020
1000 934.7 160
918.1 143.8
894.3
862.3
133.9
129.6
Together. Stronger.
®
Together. Stronger.
750 120
107.1
500 80
®
250 40
2020
2020
2019
2018
2017
2019
2018
2017
0 0
Group gross sales under Group total equity ($M)
management ($M)
28 400
362.6
24.7
21 300 277.1 279.0
260.2
16.0
13.6
14 12.8 200
7 100
2020
2020
2019
2018
2017
2019
2018
2017
0 0
Group profit before income tax ($M) Group total assets ($M)
FINANCIAL OVERVIEW 20
17.1
10 9.70
9.34
16
11.6 7.14
11.3 8
12
The Group’s financial highlights are the challenges that were faced by our result of the new lease liability totalling 7.14
Australian business. $46.8m. The new lease accounting, 8
detailed on page 2 of this report. 6.51
2020
2019
6
2017
as required by IFRS 16, is more fully 4
For the year to 30 June 2020 Group Gross
It is pleasing to note the growth in the explained in notes B1 and C6 of the full 0
Sales under Management amounted to
Group’s total equity which now stands financial statements. 4
$934.7m.
at $143.8m compared to the prior year’s
Cashflows from operations have remained
For the same period net profit before tax $133.9m. Our total assets have now grown
strong and amounted to $22.6m for the 2
2018
2020
amounted to $12.8m compared to $24.7m to over $362.6m, however this includes
2019
2018
2017
year which allowed the Group to invest
in 2019. The 2019 result included the the new asset category of “right-of-use”
in the underlying assets which the Co- 19.5 0
$9.4m one-off sale of a Sydney warehouse assets relating to the new accounting
operative relies upon. Group profit/(loss) for the year after
Group distributions ($M)
property. This result is a reflection of the treatment of leases which amounted to income tax ($M)
strength of our New Zealand operations $46.4m at 30 June 2020. Similarly, Group
and diversity of our business, offset by liabilities have increased to $218.8m as a
10 11
Annual Review 2020
Together. Stronger.
®
DISTRIBUTIONS • Supplier shareholder rebate – a The above distributions will be made
taxable rebate of $250,000 to be only to those shareholders entered on
applied by the Company in paying up the share register at 30 June 2020 who
in full “C” shares of the Company to be continue to hold, at the date of the 2020
Given the Co-operative’s solid financial
issued at $1.00 each and made in such Annual Meeting, the shares held at 30
result, coupled with the goal to continue
manner as the Directors determine to June 2020.
rewarding shareholders, the MG Board
those shareholders that are Current
of Directors has resolved to return to its The above special bonus issue, rebate,
Producers that have supplied on a
shareholders significant distributions bonus issue and dividends represent
consignment basis during the financial
totalling $9.3m (2019: $9.7m) by way $9.3m being distributed back to MG’s loyal
year ended 30 June 2020.
of rebate shares, bonus issues and and supportive shareholders. Not only
dividends. This is the sixth consecutive • Bonus issue – a three for one fully is this a significant distribution of wealth
year that shareholders have received a imputed taxable bonus issue on the “C” to the shareholders, it represents the
special bonus issue. shares issued out of the above rebate. strength of the Co-operative as a whole.
This amounts to 750,000 worth of “C”
In addition, and as has occurred for many
shares being issued (Shareholders
On 5 August 2020 the Board declared the years now, we are pleased to note the
that are Current Producers receive
following distributions in relation to the support of the shareholders through
three further “C” shares for every
year ended 30 June 2020: their high level of reinvestment of their
one “C” share they receive from the
dividends back into more MG “A” shares.
• Special bonus issue – a fully imputed above rebate). As imputation credits
taxable special bonus issue of: have been attached to the bonus issue
- One new “A” share for every thirty shares they are mostly tax paid in the
existing “A” shares; and hands of the shareholder.
- Two new “B” shares for every five • Final dividend – a fully imputed
existing “B” shares; and taxable gross dividend of five cents
- One new “C” shares for every two on every “A” share. Once again
existing “C” shares. imputation credits are attached to
this dividend.
12
Annual Review 2020
Annual Review 2020
DIRECTORS &
Together. Stronger.
®
Together. Stronger.
MANAGEMENT
The Board and Management remain
®
focused on growing value for our
shareholders, implementing our strategy
and continuing to strengthen the loyalty
of our shareholders by creating longer
term shareholder value.
Our Management team has done a
great job achieving a strong financial
performance for the year and have also
helped put the business on a firm footing
to capitalise on the benefits that will
come from future growth.
We continue to support the MG Associate
Director programme which aims to
improve the pipeline of talent coming into
governance. The success of the initiative
is highlighted by the appointment of
Trudi Webb to the Board in 2019 following
her successful internship. This year we Robyn Wickenden Andrew Fenton
welcome Robyn Wickenden to the role. Associate Director Elected Director
(appointed January 2020) (retires on 24 November 2020)
In accordance with the constitution,
Robyn Wickenden joined as an We would like to take the opportunity He has always been an outstanding
Mark O’Connor and Andrew Fenton
Associate Director to the Board in to specifically acknowledge the advocate for the Co-operative and a
retire by rotation. Mark O’Connor has
January 2020. The MG Associate significant contribution Andrew tireless champion for the role the Board
put himself forward for re-election
Director programme is designed for Fenton has made to the MG Board has in representing the interests of our
while Andrew Fenton is not seeking
those who aspire to director-level over the past 18 years. During his time, shareholders. He has done an excellent
re-election. A further four nominees
roles and have an interest in corporate he has chaired our Remuneration & job in his role as a Director and leaves
have put themselves forward for the two
governance. The role has a non-voting Nomination Committee, held the role the Co-operative in a significantly
vacant positions. Voting instructions
seat at the board table normally of Deputy Chairman, represented MG stronger position than when he started.
for the ballot will be sent by post in
for approximately 12 months. Due on the board of LaManna Premier and
mid-October as well as electronically to The Board and Management wish
to the COVID-19 disruption Robyn’s contributed his time to a number of
those shareholders who have confirmed / Andrew all the best in retirement.
appointment has been extended other committees.
provided their email addresses.
through to 30 June 2021. Andrew decided not to seek re-election
→ MG Board of Directors. Robyn is currently a co-director of Mya at the end of his term and will retire on
From left to right, top to bottom. Bruce Irvine; 24 November 2020 at the conclusion of
Andrew Fenton; Mark O'Connor; Joanna Lim; Lynn
Enterprises Ltd, a Tamarillo orchard
Crozier; Trudi Webb; Trevor Burt; Mike Russell; Robyn in Poroti, Northland, and is a supplier the Annual Meeting.
Wickenden (Associate Director); *Peter Hendry
(Chief Executive Officer); *Kerry Wells (International
to MG Marketing. She brings specialist He has spent a large part of his
Business Manager); *Duncan Pryor (Company industry skills and networks from her working life committed to different
Secretary & Chief Financial Officer).
experience as a grower as well as her roles in the horticulture industry
*Executive Management attendees.
role, initially as secretary and from and provided the Board with unique
March 2020, as Chairperson of the New knowledge and insights.
Zealand Tamarillo Growers Association.
Member of the IOD*.
14 15
Annual Review 2020
Bruce Irvine Trevor Burt Mark O’Connor
Chairman, Appointed Special Director. Appointed Special Director. Elected Director.
Together. Stronger.
Bruce joined the Board in 1994. He has Trevor has a high level of experience in Mark is serving his second term as a MG
an extensive business background and the strategic leadership of large and Director having originally joined the MG
previously held the position of Managing complex corporate organisations, and a Marketing Board in November 2014. He
Partner of the Christchurch office of proven record of implementing change is a Director and shareholder of Appleby
Chartered Accountants, Deloitte, between and achieving results. As an experienced Fresh Ltd, a family-owned market
®
1995 and 2007; and is past Chairman of professional director, Trevor has held a gardening business in Nelson on the
Christchurch City Holdings Limited. Bruce number of previous roles including Chair Waimea Plains.
is currently Chairman of Heartland Bank, of Ngai Tahu Holdings Corporation Ltd Member of the Co-operative Structure
House of Travel Holdings, Rakon and Skope and Lyttelton Port Company Ltd, and Working Group.
Industries and director of a number of Deputy Chair of PGG Wrightson Ltd and a Member of the IOD*.
other public and private companies. Bruce director of Silver Fern Farms Ltd. Trevor is
is MG’s Chairman, Chair of the LaManna currently Chair of the New Zealand Lamb
Premier Group’s Audit Committee and Company Ltd, MHM Automation Ltd and
a Director of LaManna Premier Group Rua Bioscience Ltd and is a Director of Joanna Lim
Pty Ltd. Bruce is also a member of MG’s Landpower NZ Ltd and Hossack Station Elected Director.
Remuneration & Nomination Committee, Ltd. He is also a trustee of the Māia Joanna (Jo) was elected to the Board in
Audit Committee and Co-operative Health Foundation. Chairman of the MG 2018. She and her husband have a market
Structure Working Group. Audit Committee and member of the Co- garden business (Jade Garden Produce)
operative Structure Working Group. and a share in a cucumber glasshouse
Chartered Fellow of the IOD* and
Accredited Fellow of the Chartered Chartered fellow of the IOD*. operation (Island Horticulture Limited),
Accountants Australia and New Zealand. both in the Christchurch area. Jo is
also a Senior Associate at national law
firm Simpson Grierson and specialises
Andrew Fenton in financial markets / services and
Lynn Crozier
Deputy Chairman, Elected Director. corporate advice. She also has expertise
Elected Director.
Andrew joined the Board in 2002. He has Lynn joined the Board in 2012. Today
in climate change issues and the New
Zealand emissions trading scheme.
ANNUAL MEETING OF
more than 35 years in the avocado and Lynn, through a family-owned and SHAREHOLDERS
kiwifruit industries through the Bay of operated business since the 1960’s, is Chair of the Co-operative Structure
Plenty-based Phoenix Partnership and Working Group and a member of MG’s All shareholders are invited to attend
a major grower of potatoes, onions and
Beresford Orchards Ltd. carrots in Central Canterbury. Audit Committee. MG’s Annual Meeting of shareholders.
He has extensive commercial and Member of the IOD*. This year the event will be held at the
Member of the MG Audit Committee.
governance experience in businesses and Member of the IOD*. Napier Conference Centre, 48 Marine
industry groups. Parade, on Tuesday 24 November 2020,
Andrew is currently a director of New Trudi Webb commencing at 5.00pm. Shareholders
Zealand Horticultural Export Authority Elected Director. are welcome to join MG directors,
Mike Russell
and Kiwifruit New Zealand, President Elected Director. Trudi is part of a fourth-generation management and staff to formally or
of the NZ Fruitgrowers’ Federation, family growing enterprise, Webb’s Fruit,
Mike was appointed to the Board in informally discuss topics of interest.
Chairman of the NZ Fruitgrowers’ near Cromwell in Central Otago. Trudi
Charitable Trust, a Member of NZ Kiwifruit November 2016.
holds a first-class honours Bachelor of There will be a dinner following on from
Growers Inc. and Chairman of Huddart Mike is a first-generation Hawkes Bay Applied Science (Horticulture) degree the meeting at approximately 7.30 pm
Parker Building Co. Ltd. grower with 35 years’ experience, and is Chairperson of the Central Otago and all shareholders and their partners
Andrew was previously the President of in partnership with his wife Julie, Fruit Growers Association and director
specialising in plums. are warmly welcome to attend – details
Horticulture NZ and Chairman of Satara of Summerfruit NZ. Trudi completed the
MG Director Internship programme (now are included in the notice of the meeting.
Co-operative Group Ltd. Member of the MG Remuneration &
Associate Director programme) in 2019 RSVPs are required for catering purposes
MG Deputy Chairman, Chairman of Nomination Committee.
Member of the IOD*. and became an elected director in the – please contact our Assistant Company
the MG Remuneration & Nomination
same year. Secretary Trudy Lewis (email: tlewis@
Committee, member of the Co-operative
Structure Working Group and a Director Member of the Remuneration & Nomination mgmarketing.co.nz) by 9 November 2020.
of LaManna Premier Group Pty Ltd. Committee.
If COVID-19 restricts our ability to
Chartered Fellow of the IOD*. Member of the IOD*.
proceed with the meeting as planned, we
will advise of alternative arrangements
closer to the time.
* Institute of Directors in New Zealand
16JINKY ACCHENI REJAIL ADILOVSKI OPETAIA AFUIE DHRUV AGGARWAL HEMALOTO AHOFONO VAL AHOMANA ALIPA ALAPATI CHUN-CHIA LU DICKSON LUPO TUSIGA LUTAU BRUCE LYON LUKE MACEY ROSS MADAFFERI BAL MAGAR MANGAL MAGAR YAM MAGAR TK MAH
CATERINA ALESSANDRINI ABID ALI VERDENE ALI PIFALATI ALOFAKI VINCENT ALOI ANNUNZIATO ANASTASIO PRANESH GUPTA ANDHYALA BRADLEY MAHAR BRENT MAHAR JITH MAHJI AJAY MAJHI SHAQUILLE MAKIHA JAMES MALONEY JOSEPH MANARITI ROCCO MANARITI
SHAJI ANTONY MAJA ARLOV VISHANT ARORA JAIPALA ARPORN JOSHUA ATKINSON CHARLIE ATTANA MAREE AUCKLAND USOALI AVIIVII DIL KUMAR MANGAR GAURI MANGAR TIL MANGAR UNTI MANGAR DHAN MANGER FUSIPALA MANOA DAYAL MANU LOINISENI MANUMUA
MATAHIKI BABBINGTON ERROL BAIN KERRY BAIRD AMANDA BAKER LUKE BAKER-GARTERS QUINN BAKER-GARTERS NATHAN BALSILLIE SAM MARSON IAN MARTIN PATRICK MARZANO HAMISH MASON SCOTT MASON SHANNON MASON FALCO MASTROCOLA LUKE MASTROCOLA
ADEEP BARAILI RACHEL BARKER TROY BARR PETER BARRETT DAVID BARRIE BLAIR BARWICK JAMES BATEMAN JEGATHEESWARY BATHMANATHAN
LISA BEATON JAMES BELL DIANA BELLAIZAC GUEVARA CAROLYN BELOE CAROLINE BENDALL FRANCESCO BENVENUTO LAURENCE BENVENUTO
MARK BENVENUTO JACK BESWICK AJESH BHAI BEENA BHANA FAZLI BIN MASRI STACEY BLANCHARD MICHELLE BLIGHT ANDREW BODY
BERNARD MATAELE ABBEY MATHEW TAUELI MAUGA TIMOTHY MAWSON AARON MAYNE DANIEL MAZENGIA VICTOR MAZUTTI SAID
ALLAN MAZZOLA MURRAY MCBRIDE JANET MCCLUSKIE-SUBLETT SARAH MCCORMACK LOUISE MCDONALD STORM MCDOWELL BRETT MCGUIRE
LYNN MCKAY ANDREW MCKENZIE MARGARET MCKENZIE MITCHELL MCKEOWEN LUKE MCKEOWN DEREK MCKINNEL FERGUS MCKINNON
MG's core purpose is to grow the overall
TIMETHY BOGIDUA JAY BOLSTAD SENDRU PRANATA BONG CAROL BONHAM KAINE BOOTE TODD BOOTH CHRISTOPHER BORSATO
JOSEPHINE BORSATO SHAUN BOWIE TONY BOYD EAMMON BOYLE MARIE BRAID BREV BRAK CHRISTOPHER BRAMMALL GREISI BRAVO
MICHAEL BREITMEYER ANNA BRENMUHL NIGEL BRIDGE NEIL BRIDGENS KALEB BRIGHT JACK BROADBRIDGE GRANT BROUGHTON
PHIL MCLEAN GREGORY MEIBUSCH REECE MERRETT RUEBEN MERRICK DALE METCALF MATTHEW METCALF MARK MIDDLETON
SALVATORE MILANESE RANGI MILLAN JACQUELINE MILLAR STEPHEN MILLAR DON MILLER IAN MILNE JO MINTON-CONNELL LAR MIT
MALACHI MITCHELL ROSNAH BINTI MOHD HASHIM NURUL HANA MOHD SHOKERI PURNA MONGAR DANIEL MOOR MICHAEL MOORE
wealth and profitability of the Co-operative,
KATELYN BROWN TONY BROWN FIONA BROWNE SHARLENE BROWNE BRIAN BUCHANAN AARON BUDD HUYEN (CATHY) BUI
RAHUL BUKSH DANIELA BUNN LUKE BURGESS TREVOR BURT PETER BUTCHER JOHN BUTTERS DARREN CACHIA GRANT CADDIGAN
RUFINO MORALES STEVEN MORICE HEKI SUVA MOUNGA KIM MOUNSEY ROB MULHOLLAND KEVIN MUNROE SRINIVAS MUPPAVARAM
LOGAN MURPHY ALLAN MURRAY VINCE MUSICO SOJAN MUTHUNNY WHITNEY MUTU CON MYDARAS FLORA MYDARAS CON MYLONOPOULOS its shareholders and growers, through
relevant initiatives while maintaining
DOMINGO CAICEDO VALENCIA ANGUS CALDER FRASER CALDER MARK CALLEGARI SHAUN CALVI CHRISTINE CAMPBELL KIERAN CAMPBELL TIMEA NANASI MAHES NARAN SUSAN NEALE HOLLY NEENAN DANIEL NEUMANN JEFF NEUMANN COREY NGAIA PATIENCE NGUGI SY NGUON
MICHAEL CAMPBELL ALLAN CANLAS JEANETTE CANNISTRA CAITLYN CASEY MICHELLE CASIM PAUL CASIMIRO FRASER CASTLE TIN LIAN CEM HRANG LIEM NGUYEN JASON NOBLE MOE NOI WASUNTARA NOINACHOT COURTNEY NORMAN TIMOTHY NORTH PETER NORTHERN CIA NUAI
Our vision is to be a NU-CHIN CEN HRANG ALBERT CHALMERS ADITYA CHAND THI KIEU DIEM CHAU KIMBERLY CHAVEZ EDUARDO CHAVEZ VARELA YAQING CHEN CESAR NUNEZ TORO STEVEN OAKES SAM O’CONNELL MARK O’CONNOR URSULA O’DONOHUE WAYNE O’HALLORAN BRAD O’KANE
co-operative principles.
YUMENG CHEN ROBERT CHRISTY HELENA CHUNG SAMUEL COFFEY MATTHEW COLLIER NICKI COLLIER AARON C CONDON GUISEPPE CORRONE GRAEME OLDHAM BRENDAN O’NEILL SEAN O’NEILL CHRISTOPHER O’ROURKE NICHOLAS O’SULLIVAN ROGER O’SULLIVAN RICHARD OTT
ROCCO CORRONE GAVIN COSGRIFF MARK COSSAR OLIVER COSSENS BRIDGET CRAIK JOSHUA CRAIK JAMIE CRAWFORD GIUSEPPE CREA NOEL OWEN FRANZ PABLO SHAJU PADAYATTY HORMMIES ISMAEL PAGE SENITU PAKOME KIRAN PANT DIMITRIOS PAPAGIANNIS
leader in the horticulture JAMES CREED GRANT CREIGHTON ALISTAIR CRETNEY ANDREW CROSS LYNN CROZIER DIANA CUERO PORTOCARRERO DESDA CULLEARN
JACQUELINE CUMMING CHRISTOPHER DAGNALL MELISSA DAMPIER DAHVY DAO LAWRENCE DARLING MARK DAUNT PIA-MARIA DAVIDSON
SAMUEL DAVIES COLIN DAVIS MICHAEL DEBONO AARON DEKKER MICHELLE DENSLOW SAMANTHA DEVINE MANDEEP DHILLON
GRACE PAQUERA HAN NA PARK TRACY PARKER MARCUS PARLATO JAMES PARRY JUSTIN PARSONS MONIKA PATEL SUNIL PATEL ALONE PATIA
DEVON PATRIX CRAIG PERRY DARRYL PETERSON LAR PHAN THUY PHAN HOON PHAT SUZANNE PHIBBS FRANK PICCOLO GIOVANNI PILATI
ROBERT PITOITUA MARK PLYMIN ROCHELLE POGSON KAUSHIK POKKULA TIM POORTER ADELLE PORTER BLANCA PORTILLO ACOSTA
industry, preferred ANTHONY DI PIETRO FRANK DI PIETRO SCOTT DICKEY NU THANH DIEP JONATHAN DILLON JAMES DIMECH THI THI HAO DINH
THWANG SWE DO RU ANIKA DOBBIE GOLDIE DODDS LEON DODDS DAVID DOHNT RAMON DONES CHRISTOPHER DONEY PHILLIPA DUNN
CHANDRA PRADHAN BHIM PRASAD DHUNGANA JERRY PRENDERGAST DAVID PRICE LIAN PRICE STEPHEN PRIOR CRAIG PRITCHARD
SAMUEL PROUTING DUNCAN PRYOR GREIG PULLAR LUKE RADAN KAREN RADWAY ASHOK RAI JONASH RAI JERIN RAJU AMIT RAM
partner for growers and
DERRICK DYSON GEORGE EAGLES DAVID EDMONDS JACOB EDWARDS SHARLENE EDWARDS MIRUNALINI ELANGO KENT ELFORD IAKOPO ELISARA TONY RANALLI RUSSELL RANGI RANGI ABDUL RASHID JOSHUA RATIMA GIOVANNI RATIMA-MITA JAKOB RAUHIHI JITHENDRA REDDY BATTULA
EPATI ELISARA SOLI ALLAN ELLIOTT NAW ELLIS SHIRLEY ELVY JOSH ELY DAVID ERICSON ANN-KATHRIN ESSER ALAN EVANS JADE REEVES MICHAEL REGAN BEH REH DAY REH NAY REH PLEH REH POE REH PREH REH SAY REH SHAR REH BRETT REID SHARON REID
PETER EVANS JOANNE EVERINGHAM JIM EVGENIADIS JOVIN FABIC MATTHEW FAIRCLOUGH ELISARA FALO KEVIN FARR WAYNE FARROW HOWARD REILLY COREY RHEA JOHN RHEA MICAH RICHARDS WENDY RICHARDS SHANE RICKIT MASELINO RISATI JASON ROBERTS
RESILIENCE CO-OPERATIVE BEHAVIOUR
customers and a great TANSWELL FELIX LAURIE FEMIA ANDREW FENTON INGO FENUKITAU STUART FERGUSON CHRISTIAN FETU MELASA FETUU
ERIC FIELD BLAIR FISHER GWENDA FOLEY JAMIE FOLEY MURRAY FORBES JOSHUA FOSTER ANGELA FRANCIS GEORGE FRANCIS
LINDSAY FRANCIS LUKE FRANKLYN FRANK FRAPPA DAVID FREEMAN AARON FRIEND CAMERON FRIEND MARIA FROOME TUAMAFA FRUEAN
JILLIAN ROBERTSON LANCE ROBERTSON RUSSELL ROBINSON KAREN ROBSON JOHN RODERICK LIGIA RODRIGUES TEDDY RODRIGUEZ
MERY ROJAS ORTEGA CLARISSA ROMANO CARLOS ROSALES SERRANO DAMIEN ROSELLA PAULINE ROSELLA BENJAMIN ROSS HORI ROSS
FRANK RUGGIERO A RUNG RUNG NATASHA RUS JAMIE RUSS MICHAEL RUSSELL NICHOLAS RYAN DANIEL SALAU JIAH ARLETTE SALLEY
Show true leadership to grow the Work hard together to make sure the
place to work. NENIASI FUAPAU TOMU FUAPAU BAILEY GALL DEAN GALL FRANCESCO GALLICCHIO DAVID GANNON ROMEO GARCIA FLOYD GARDINER
JESSICA GARDNER BRIAN GARGIULO DOMINIC GARGIULO JAMES GARGIULO MARCUS GARGIULO PIERRE GARGIULO ABRAHAM GARZA
COLIN GASS ROGER GEORGIEFF BRENDAN GIBBONS IVAN GILBERT RYAN GILBERT CLAUDIA GIORNO JOHN GIUFFRE
GLENN SALT MARY SAMPIERI MUANI SANGI LOVISH SAPRA DAVID SAVILLE ROCCO SCARFO NATALIE SCARGALL PAUL SCHEFFER
PAOLO SCIANCALEPORE DIANE SCOTT ELIZA SCOTT SHANE SCOTT STEVEN SERCIA BRUCE SHEED REBECCA SHEED ANDREW SHIRLEY
CURTLY SHRIMPTON KAMALKANT SHUKLA ANGUS SILVESTER TRISH SIMAILE AMANDEEP SINGH ARSHDEEP SINGH ASHNOTI SINGH
business and overcome challenges
by making decisions that protect the
benefits of our Co-operative model drive
growth, value, trust and a willingness to
BENJAMIN GLANVILLE MARCUS GOBALD LA GOE JIMMY GOMEZ CRUZ LUKE GOODWIN MATTHEW GORDON SAMANTHA GORDON DILDAR SINGH HARVINDER SINGH HARWINDER SINGH KULDEEP SINGH PARMJIT SINGH PRANEEL SINGH RACHHPAL SINGH SATNAM SINGH future of our grower Co-operative and work closely alongside each other.
BRENT GRAHAM DAVID GRASSO ELIZABETH GREENWOOD ADAM GROVE MARTIN GRUNDLINGH ABBAS HAIDER CHRIS HAJOS ARSHDEEP SINGH SIDHU JOHN SIOZIOS STEVEN SKRUZNY NATHAN SMART MARK SMITH TAFUNAI SOLI TREVOR SOLOMONA KIM OUN SOUNG make sure the benefits are enjoyed by
DEAN HAMILL NALEEN HARAKH SIMON HARDIE JOSHUA HARDING MARK HARDING ALICE HARRIS LIAM HART BRUCE HARVEY SCOTT HARVEY DAVID SPEDDING MELISSA SPENCER RHETT SPENCER STEPHEN SPENCER JOSEPH SPITERI BRENDAN SPITTLES HARSIMRAN (SIMI) SINGH SRAN
ERROL HATTERSLEY SOSAIA HAVEA AARON HAYWARD JAMES HAYWARD DANIELSON HEATHER KINGSTON HEMI-WHAREKAWA KELLIE STAM PETER STAM NUNZIO STARVAGGI JAY STEEDMAN BELLA STEHLIN MICHAEL STEVENS OWEN STOTTS SIMONE STRATHAIRN
generations to come.
MALCOLM HENDERSON ALEX HENDRY PETER HENDRY ADAM HEREMAIA CHRIS HIBBERT SIMON HICKEY WING HIEW GRANT STUMBLES DHAN SUNWAR WAYNE SWIFT GEORGE SYMEONAKIS JEROME TAEFU AARON TAHI RICHARD TAIAROA MURRAY TAIT
IAIN HIGGINS MOHAMMAD HIJAZI TRUCE-ANNE HILLARY CORAZON HINCHCLIFFE TJ HIRINI ALEX HIRSLER GRAEME HIRST MOSESE TALANOA CEM TALAWNG DAR TALAWNG BRONSON TALOA AJITH TAMANG BRINDA TAMANY TRAN NGUYEN TAN KHOA SUN TANG
CUNG UK HLICHAL ANDREW HOARE MARK HOBBS ROB HOLLIER BLAKE HOOKHAM RAFAEL HORMIGO HAMANA HOUIA SAIMONE TANGATAEVAHA PIERRE TANNOURI FA’AILOGA TANUVASA ELLERY TAPPIN KELEKOLIO TAPUELUELU ANGELO TARANTO
We thank all of our staff for their dedication, MATTHEW HOUSE ROSS HOWARD JYE HOWSON MARTIC HRABANOV YUAN YUAN HU QUI YING HUANG COLIN HUDGSON
ANDREW HUESSER BENJAMIN HUME WAYNE HUME NIDA HUOT PIO HURINUI PETER HURRING PHUONG TAY HUYNH CHANTELLE INA
MARIO TARANTO APITANGA TAUFA OTO TAUSINGA CAMERON TAYLOR GORDON TAYLOR EVAN TE HIKO SETH TE HORE-GARDINER BLING THACH
HENG THACH KIEN THACH SADRY THACH TANE THACH THUON THACH BIJENDRA THAPALIYA DEP THI OANH THI UT KIM THI
VALUE GROWTH
hard work and loyal service to our growers, GRANT INWOOD SALA IOANE MICHAEL IOPPOLO BRUCE IRVINE KAORI ISHIKAWA JEREMY JAMES BEATA JANKO SALOTE JEBREEL ELANGO THIYAGAARAJAN BEN THOMAS EMMA THOMAS ANNE THOMSON WILLIAM THRUSSELL LAR THU SHANE TIDY MICHAEL TIERNEY Keep reviewing the benefits our grower Diversify and expand produce lines
customers and to our Co-operative. We proudly CHARLOTTE JEFFORD DEBORAH JENKINS RYAN JENKINS KYOHUN JEONG MATTHEW JEWELL NARENDRA JINA MAXWELL JOHANSSON SUNG TLUANG NEH ALFRED TOAILOA BERNARD TOAILOA MATTHAN TOAILOA RIAAN TOAILOA ROMERO TOAILOA SHAOLIN TOAILOA
shareholders receive while finding new locally as well as make our Co-operative
PAUL JOHNSON ABBY JONES YULI JURADO JURADO TATSUYA KAKEMOTO TRIIN KALMUS YOGENTHIRAM KANDIAH DIMITRIOS KAPETANIOS MAREE TOKOLAHI PENISIMANI TONGA PETERU TOPETO CYRIL TORRANCE MU TOY NUM TRAM DAO TRAN THISIDA TRAN TRAI TRAN VE TRAN
acknowledge this contribution by featuring their JONATHAN KARANTGIS PARDEEP KATARIA PENISONI KATOA RAMINDER KAUR SIOSAIA KAVA KELEMETE KELEMETE RORTHA KEO JAN KERR THI TRANG DOUG TRASK JOSEPH TRIMBOLI HENRY TROTT NATASHA TROVATO ALAN TSAI JERMAINE TUHI TOLOVAE TUILAEPA and relevant ways to add value. attractive to off-shore markets so we can
names in this publication. IRSHAD KHAN SAY MOY KHEE RAKSMEY KHUN RITHIPOLMOLY KHUN GORDANA KILIBARDA HYEMIN KIM PAUL KING TUITI-ANGELAS TUITI-TAHI BOBBY TUPOU FILIMONE TUPOU CARL TURNER TAMANGO UARUTA MAI UNG BRANDON UTIA PENG VAN PENG
DODINA KISONA ADAM KNAPP WAI YOU KOON NEELAM KOUR JAYAPRAKASH KRISHNAMOORTHY CHARLIE KUMAR IRINA VASSILIEVA KELEPI VAVE CON VELONIAS PATRICK VENA ADAM VUNIPOLA APOLLO VUNIPOLA JOHN WADDINGTON
grow our export activity.
GAURAV KUMAR MANDEEP KUMAR DAVID LADARU PANAPA LAFOA LATA LALONI PAEKINAHELOTU LALONI SIONE LALONI SHANE WADSWORTH MICHAEL WAGNER SHERYL WAGNER ALAN WAKE PHIL WALLIS XINYI WAN MURRAY WARD
TEVITA LALONI CHIN WING LAM INOKE LAMA LILO LAMA SIFA LAMA TIUETI LAMA GEOFF LAMONT DAVID LANDY SHAYNA WARD WAYNE WATKINS BAXTER WATSON KATE WATSON ROSS WATSON TRUDI WEBB HARRY WEBLEY WAYNE WEBLEY
PETER LANGE MU LAR LAWRENCE LAVERY HUMPHREY LAWRENCE SOLOMON JR LEAUPEPE FROST HAZEL LEES ERONI LEILUA JAMES WEBSTER KERRY WELLS KELLY WETERE LA WI ROBYN WICKENDEN JOANNE WILLETTS KEN WILLEY ELLIOT WILLIAMS
RICCARDO LE’MONT CHRISTOPHER LEONE GAVIN LEVY TRUDY LEWIS MICHAEL LIA SEFTON LIA JOANNA LIM BIMALA LIMBU KAREN LINDSAY DIANA WILSON ANDREW WILTON CORRINEKE WINDLE WING WONG JARED WOODCOCK ETHAN WOODMASS ALEX YE
CAROL LISSINGTON DANIEL LITTLE GRACE LITTLE WILLIAM LITTLE LEI LIU XIUGE LIU ANDREW LOCKYER MARK LOGIUDICE PETER LOPES JONGHO YEO CHENGMING YI JIAN YU ANTONIO ZANNINO CA TIN TIAL ZATHANG ANTHONY ZECCHINATI WENDY ZHOU PARTNERSHIP CAPABILITY
Expand the level of communication to Continue to have the best people, doing
keep our grower shareholders up-to-date the right job, with the right tools to
and support a positive delivery of our support the wide range of needs of our
shared vision, direction and values. grower network.Annual Review 2020
Annual Review 2020
MG PEOPLE
Thanks to the unique skills, knowledge
Together. Stronger.
®
and passion of our people, and our
Together. Stronger.
dedication to helping support growers
and customers, MG continues to deliver a
level of service unmatched in the market.
®
It is our belief that everyone working for
the Co-operative has a role to play in
delivering on our strategic pillars and
makes a positive difference in our business.
Our culture is one of support, opportunity
and on-going development, as well as
providing a workplace that ensures our
people go home safe and well each day.
To that point, the well-being, health and
safety of our people is front-of-mind at a
Board, Management and operational level.
During the year, we introduced a number
On behalf of the Board and Management, we
of safety initiatives through our Together.
Safer.® programme to educate our
people about risks which exist and their
responsibilities with regards to keeping
would like to thank all of our employees for their
themselves and their colleagues safe. Our tremendous efforts and contributions during a
online reporting system, Ecoportal, is
now implemented and providing improved year with unexpected challenges.
reporting for incidents and near misses.
Our goals for the future are to increase
engagement in safety and further develop GRADUATE PROGRAMME SALES ACADEMY
the culture of shared responsibility across
We are pleased to again build on our The MG Sales Academy, launched in
our entire workforce.
successful MG Graduate Programme 2017, is a programme focused on training
Our response to COVID-19, detailed earlier which is now in its fifth year. The and mentoring current employees to
in this document, highlighted the benefits programme was introduced to attract strengthen their skills in sales roles. The
of our investment in our people, who and retain talented young people into the programme forms part of the overall
showed adaptability and resilience as we business. The graduates are not required strategy which includes staff retention,
navigated the impacts of the pandemic. to have any previous industry experience increasing our depth in key roles and is
and are provided with an opportunity part of our succession plan for the future,
On behalf of the Board and Management,
to learn about key areas of the business to retain, develop, and grow our people.
we would like to thank all of our
before launching their career with MG.
employees for their tremendous efforts A further six employees benefited
and contributions during a year with The success of the programme is from the development opportunity
unexpected challenges. The results our highlighted by the number of employees by completing the Sales Academy
Co-operative has been able to achieve, who started as graduates and have programme this year.
and continues to achieve, are testament ↑ MG Executive Management Team progressed through the business to now
to their energy, hard work and dedication From left to right: Peter Hendry (Chief Executive Officer);
Duncan Pryor (Company Secretary & Chief Financial
hold key roles in various departments.
to the business. Officer); Chris Hibbert (Chief Information Officer); After five years we have retained 95% of
Roger Georgieff (National Procurement Manager);
the graduates.
Once again, we acknowledge our people Ellery Tappin (General Manager Communications and
Sustainability); Greig Pullar (National Operations
by publishing their names in the Annual Manager); Kerry Wells (International Business Manager); The 2021 programme will be extended
Review. Jerry Prendergast (National Key Account Manager); to build depth in other areas of the
Kimberly Chavez (Internal Audit & Risk Manager); Jade
Reeves (Imports Manager); Iain Higgins (IT Manager business, including IT and finance,
International). warehousing and logistics.
20 21Annual Review 2020
Annual Review 2020
Tree Company and Zee Sweet Ltd is also The greenfield investment in Kaipaki also support growers in those same
an important investment in this area, Berryfruits Ltd, in which MG owns categories. This strategy has enabled
as it gives MG better access to high 100% of the property & infrastructure MG to establish a leading position in key
Together. Stronger.
®
Together. Stronger.
quality IP varieties that have enhanced company and 50% of the berry fruit categories, which in-turn allows us to
consumer appeal. growing operation, made a solid start go to market with more influence and
to its first season. The Cambridge secure high-value programmes with key
The MG Direct model is now well
based operation started strawberry customers for our growers.
established in the North and South
®
production in January 2020 and
Islands and has proven to be a valuable Originally planned for June 2020,
continued through to June. Further
part of the business. It has delivered our major project to roll-out a new IT
development is underway on the west-
consistent year-on-year gains while not system, M3, was delayed by COVID-19.
side of the berry farm and raspberries
having a significant impact on branch This was mainly because resources
are being planted and expected to be
sales. This growth has been primarily were redeployed to support day-to-day
harvested in February 2021. This is a
driven by increasing market share and operations during the lockdown period.
long-term investment and it has made a
delivering efficient service to growers The MG IT team are now refocused on
very promising start, confirming it’s the
and customers. delivering the project and have entered
right approach to invest in industry best
the testing and deployment phase. The
Our diversity strategy includes our practice infrastructure.
new system will be implemented branch-
investments in farming operations. JS
As mentioned earlier, MG has also by-branch, in 2021. This is a significant
Ewers again performed well, despite the
secured the exclusive growing and investment and we are determined to
period of low values at the start of the
market rights for BerryWorld varieties, a take the time to get it right. This new
financial year. A significant achievement
significant global player in the breeding system is essential for us to provide the
for JS Ewers was the completion of a
of berries which are widely acknowledged tools to increase business productivity,
project to modernise the glasshouse
NEW ZEALAND OPERATIONS heating system to generate energy more
as some of the best in the world. This provide greater efficiency and enhance
is an exciting opportunity to strengthen our service levels.
efficiently while significantly reducing
our position in the berry category by
In a year of extraordinary global on-hand. This reflected the challenges the crisis to support New Zealand the impact on the environment. JS We want to emphasise though, that
contracting Kaipaki Berryfruits and other
events, MG’s domestic business has faced by our key customers and the through the pandemic and continue to Ewers’ commitment to sustainability was while technology is becoming more and
growers to produce the new varieties that
strengthened its commercial position. unpredictability of consumer habits deliver exceptional service - we are proud further highlighted by a major project more important, the fundamentals of
are renowned for their superior yield,
This has been achieved through a keen during the crisis. to say this was achieved. to retrofit glasshouses with thermal putting people first won’t change. We
taste and quality.
focus on fostering grower and customer screens to protect produce crops from remain absolutely committed to giving
During the period of enforced lock-down It is the diversity of our New Zealand
relationships, together with a continued overheating on hot days, to minimise heat Alignment of interests is a longstanding our growers and customers the best
we suffered a sudden drop in business operations and our branches' ability to
focus on managing costs. loss during cold periods, and to trap heat feature of our New Zealand business, experience we can, both personally and
from independent fruit and vegetable align with local markets, combined with
in when temperatures drop significantly demonstrated by our willingness to through the use of new digital systems.
Following a record financial result in retailers, who were not deemed our strategy to remain relevant to retail
overnight. Work was also completed on both invest in growing operations
2019, our New Zealand operation grew its essential, and a sharp decline in demand customers, that contributed to significant
the improved use of recycled water. that are of value to customers and
revenue a further $16.6m to $486.8m for from our customers who service the uplift in sales through the second half of
the 2020 financial year. This is despite a hospitality sector. the year.
year that started with a sustained period
We quickly adapted to these changing We continue to run a lean operation of
of depressed pricing that was initiated
circumstances by supporting our highly capable people whose focus is
by soft consumer demand and further
customers who were under enormous on great service. A great deal of our
exacerbated by oversupply in a number
pressure. In some locations this included overall success can also be traced back
of key categories. It was a challenging
acting as the main distribution centre, to the work undertaken by our sales team
combination of trading conditions that
storing fruit and vegetables on their who work tirelessly to align supply and
continued through to December 2019.
behalf, and delivering directly to stores. demand, our procurement team, who
Then the business was forced to navigate In other locations we worked closely with collaborate with growers to support
through the COVID-19 environment for retailers who modified their business to supply programmes, as well as our key
the final months of the financial year. Our sell fruit and vegetable boxes by assisting accounts team who work closely with our
branch network suffered huge surges with contactless supply and distribution customers to support category planning
in demand which required our teams and, in some instances, used our and promotions.
to deliver under enormous pressure, branches resources to pack on site. Our
We have also continued to invest in the
followed by dramatic dips, presenting the teams across the country had a shared
development of IP varieties. Our 33%
challenge of finding a home for stock- goal to remain operational throughout
shareholding in the New Zealand Fruit
22 23Annual Review 2020
Annual Review 2020
Together. Stronger.
®
Together. Stronger.
®
↑ LaManna Premier Group Board of Directors.
From left to right, top to bottom. Brian Gargiulo, MBE (Chair); Mark LoGiudice;
Andrew Fenton; Bruce Irvine; Peter Hendry; Anthony Di Pietro (Group CEO);
*Dean Gall (Chief Operating Officer); *Jo Minton-Connell (GM Human Resources);
*Mark Plymin (Chief Financial Officer); *Simon Hardie (Chief Commerical Officer);
*Duncan Pryor (Secretary to the Board);
*Executive Management attendees.
LPG has established a direct-to- the business, there is also a focus on compliance standards, with industry
AUSTRALIAN OPERATIONS – distribution-centre strategy, similar to the optimising the ability to grow revenue. leading systems related to responsible
LAMANNA PREMIER GROUP PTY LTD (LPG) MG Direct model, that facilitates a closer LPG has directed key resources towards sourcing and food safety. Further
working relationship with growers and strengthening its core position across investment in this area has provided LPG
adds value to the services provided to key the banana, tomato, soft vegetable, with a point-of-difference from other
While the 12 months reviewed have been a A strategic decision was made to demand for fresh produce was largely customers. It has already started living up melon and pumpkin categories. suppliers and has made the business more
period of challenge for LPG, the company discontinue certain product lines in an offset by the investment required in to its promise of driving efficiency into the relevant to key supermarket customers.
associate’s farming operations in order business continuity. This included further These projects, and others in the journey
continues its business improvements and sales and marketing process.
to best position the LPG Group for the development of IT systems, establishing towards reshaping the business, will There is still more work to be done over
growth strategy to underpin the long-
future. safe work practices and the need to run LPG’s Board and its CEO have made require determination, focus, and capital the next 12 months, and further into the
term future.
multiple shifts, all of which contributed significant decisions to better position investment to achieve the long-term future, on reducing LPG’s costs through
LPG’s financial results are due to a mix of In addition to the one-off cost outlined the business for the future and are financial rewards. an ongoing programme of continuous
to increased operating costs. COVID-19
one-off costs incurred this year including above, a severe hailstorm and ongoing relentless in their ambition to drive LPG improvement while maintaining prudent
is also significantly affecting service The year presented its share of good
additional provisions for doubtful debts poor weather had a major impact on the forward. This includes taking steps capital and financial management.
provider customers, reducing growers' news stories, including winning the
(as a result of COVID-19), along with some outdoor tomato crop at the joint-venture towards reducing operating costs
ability to sell their full crop, which in- Metcash Produce Supplier of the Year The 2021 year will be characterised
significant farming challenges. farming operation, Mercuri Farms, in through the consolidation of facilities
turn is depressing the overall category for 2019 award at an annual event that by continued volatility and some
Victoria. The Innisfail Banana Farming in key cities, streamlining the business,
Following the ongoing review of facilities, pricing. It has been a very difficult period acknowledges the best sales, support and uncertainty. LPG has a clear strategy to
Company endured a period of high-winds improving productivity, and development
the process to consolidate operations for staff. The people across LPG have innovation from Australian businesses in continue as a sustainable and successful
that damaged plants and impacted the of smart systems and technology to
and rationalise the number of sites demonstrated commitment above and the produce sector. business over the long-term with the
quantity and quality of bananas available support the operations.
continues this year. This includes the beyond all reasonable expectations infrastructure, the scale, the diversity of
for harvest. The year also saw LPG further enhance its
permanent closure of four warehouses, in supporting the business through a While work is underway internally people and thinking available to do this.
The future focus for growing is to reputation as having some of the highest
and while this will greatly reduce the turbulent period. to drive improvements throughout
mitigate the risks associated with
long-term operating costs, there is a The wholesale business was steady and
variable weather and climatic conditions
requirement to incur immediate costs gained momentum throughout the year
where possible. This strategy is reflected
while LPG exits the facilities. in an increasingly competitive Australian
in the proposed expansion plans
market. Customers are increasing
Being an integrated business has become for the tomato growing operation in
their own service provision facilities,
a critical element to ensure LPG remains Lancaster, Victoria, where crops will
refining their supply chain, and focusing
relevant to our key customers. However, grow in a controlled environment and be
on wholesalers that provide genuine
being involved in horticultural farming, protected from the elements.
relevance to their business. LPG is
the business is always exposed to climatic COVID-19 continues to have a significant ensuring it provides efficiencies and an
conditions and other vagaries - this year impact on LPG’s business operations. integrated offering that is of real value to
was no exception. The benefit from the initial surge in key retail partners.
24 25You can also read
