Weathering the storms of business

While commodities such as milk, kaimoana and timber have long been a solid platform on which Aotearoa has built its economy, being a producer of these raw materials comes with plenty of challenges.

Issues such as political upheaval, changes in legislation, natural disaster, disease pandemic or even something as simple as the weather all combine to affect the price a commodity can get in the marketplace.

“As a commodity player, it is difficult at times to dictate your future,” explains Warwick Tauwhare-George, Chief Executive Officer of Parininihi ki Waitotara. “The strength of your success can at times be determined by outside influences and that is not a comfortable place to be.”

“Essentially, as a commodity player you are a price taker, not a price maker. To overcome this, we need to develop our ability to move ourselves up the value chain, taking what we produce and turning it into something that can set its own price and position in the marketplace. This takes courage, strong leadership and a willingness to challenge the norm.”

Moving up the value chain requires the understanding that at the end of every value chain is a person, and their purchase decisions shape the direction a business takes. Knowing what the ever-evolving and changing wants and needs of these customers will be is a major challenge for food producers worldwide.

“People want to know where their food has come from, how it has been produced, how those animals have been treated,” adds Warwick. “There is also growing demand for alternative products that can offer enhanced health, taste or lifestyle benefits.”

“We are not only responding to this but also getting ahead of the game by predicting where trends will go. The innovation culture we have at PKW means that we can lead the way when it comes to finding new ways of doing business, new products and new technologies, growing our knowledge base and getting ahead of the pack.”

While succeeding in a continually changing and volatile market is a challenge, by continuing to follow its strategic plan of building partnerships, portfolio diversification and pursuing robust investment opportunities while maintaining efforts to optimise the business, PKW is forging ahead towards its goal to become a best in class investor.

“We can be confident in our ability to withstand the challenges and obstacles that stand in our path,” says Warwick.