Issue 59 | June/July 2010
GAME Gordon’s
Creating a winning culture
Does dairying deserve government intervention? Making the most of a recovering economy The rising rate of loan payment failure Knowing when to cut your losses
Mystery Creek National Fieldays revamps its act
News | Initiatives | Interviews | Personalities | Information | Agribusiness | Finance | Property | Sustainability | Export | Transport | Retail | Solutions | ISSN 1174-9520
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Issue 59 | June/July 2010
GAME Gordon’s
Creating a winning culture
Does dairying deserve government intervention? Making the most of a recovering economy The rising rate of loan payment failure Knowing when to cut your losses
Mystery Creek National Fieldays revamps its act
News | Initiatives | Interviews | Personalities | Information | Agribusiness | Finance | Property | Sustainability | Export | Transport | Retail | Solutions | ISSN 1174-9520
Central Today
Issue 59
18,763 ABC circulation as at 31/12/09
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www.academy.net.nz 4 | Central Today | June/July 2010
9
12
16
Are you ready for the rebound?
State of default
Cover story
Agribusiness
The rising rate of loan payment failure
If achievement is a journey, and the longer the path and the harder its steps, the more brightly it shines — then Gordon Tietjens’ career glitters
A fresh look at Fieldays, the effects of drought, whether or not it is time for the government to regulate the dairy industry and the battle for international market share
How to ensure you make the most of a recovering economy
General manager Rebecca Harris
production Virginia Breitmeyer Carolynne Brown Hannah Walters Samara Thomson Camilla Josephs Melanie Stanbury CJ McKay Hayley Brocket Ryan Carter Ian Knott Kirsty Opie
8
32
32
The property chop
Test drive When it comes to 4WD workhorses, the Mitsubishi Triton has always been a thoroughbred, but in a crowded paddock in 2010, does it still stand out?
Things you need to know about subdividing property
News
Agribusiness
6 Arguing ETS for and against an Emissions Trading Scheme
16 Food hubs the recipe to improve food industry performance
7 The bottom line increasing the mimum wage is a multi-million dollar equation
16 Dry times fighting the effects of drought
11 A world of choice offshore markets where you can make money
17 Mystery Creek with an eye to the future, Fieldays revamps itself
14 Cutting your losses when too much tenacity hurts you
18 Behave or Beehive is it time government steps in and regulates the dairy industry?
14 Events diary where to arm yourself with information
19 Danger looming on the horizon emerging threats muscling in on international market share
30 Lifestyles a top drop, GPS tracker, unique jewellery, fab furniture and why Phuket is paradise found 31 Products 4U techno treats to add a little pizazz to your office and daily life routines
Viewpoints 15 Leadership • questions of power • creating a positive work environment
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Business 20 Agribusiness — The essential elements Hansa Products, Totalspan, Milfos International, Don Chapman Builders and James & Son 28 Business at a glance Adobe Homes 29 Sustainability in business Transpacific Technical Services 34 Export NZ Sawn Products 36 Property & Construction Downer EDi, Waiotahi Contractors, Taupo District Council and the East Taupo Arterial project, Strata Precision Plastics and Tootill Electrical 44 Solutions Advanced Sheetmetals and Mouldings Unlimited
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!TTENTION PET LOVERS did you know?
7HAT YOU FEED YOUR CAT OR DOG DIRECTLY AFFECTS HOW LONG THEY LIVE AND THE QUALITY OF THEIR LIFE .OT ALL FOODS ARE CREATED EQUAL 4HERE IS ONLY ONE WAY TO ESTABLISH WHAT YOU´RE REALLY FEEDING YOUR PET READ THE INGREDIENTS )F YOU WOULD LIKE TO DISCUSS ANYTHING WE´VE MENTIONED OR WOULD LIKE TO GET SENT SOME INFO AND TESTIMONIALS PLEASE GIVE US A CALL OR GO TO OUR WEBSITE TO SEE THE DOZENS OF RAVING TESTIMONIALS AVAILABLE )N FACT A LARGE NUMBER OF CLIENTS ARE BREEDERS WHICH IS TESTAMENT IN ITSELF AS THESE PEOPLE TAKE FEEDING THEIR PETS THEIR BUSINESS VERY SERIOUSLY 4HESE PEOPLE NORMALLY SPEND A LOT OF TIME RESEARCHING ALL OPTIONS AVAILABLE AND WE´RE PLEASED TO SAY THEY´RE MASSIVE FANS OF OUR PRODUCT
)N TODAY´S COMPETITIVE PET FOOD INDUSTRY IT´S HARD TO BELIEVE WHAT MAY GO INTO YOUR PET FOOD -ANY COMPANIES OWNED BY MULTI NATIONAL CORPORATIONS HAVE EXTENSIVE MARKETING BUDGETS THAT PORTRAY A HEALTHY PET JUMPING AROUND ALL THANKS TO THEIR FANTASTIC PET FOOD (OWEVER THEY SELDOM TALK ABOUT INGREDIENTS !ND TO BE FRANK THAT IS THE MOST IMPORTANT ELEMENT FOLLOWED CLOSELY BY TASTE "ECAUSE LET´S FACE IT IF YOUR PET DOESN´T LIKE THE TASTE THEY SIMPLY WON´T EAT IT 5NLESS IT´S A ,ABRADOR (ERE´S THE MOST IMPORTANT BIT 4HE INGREDIENTS )´M NOT GOING TO TELL YOU HOW HAPPY YOUR PET WILL BE OR HOW HIGH THEY WILL JUMP BY USING OUR PET FOOD )´M SIMPLY GOING TO GIVE YOU A QUICK LESSON ABOUT INGREDIENTS AND WHAT TO LOOK FOR AND WHAT TO AVOID 4HE WAY INGREDIENTS ARE LISTED ON PACKAGING IS THE ORDER THAT THEY ARE ACCORDING TO THE PERCENTAGE OF FOOD SO THE ½RST INGREDIENT LISTED IS THE PRIMARY INGREDIENT AND SO ON DOWN THE LIST 3OME LIST ±BY PRODUCTS² AS THE ½RST INGREDIENT USUALLY CHICKEN OR BEEF .OW THIS DOESN´T HAVE TO BE A BAD THING /NE OF THE MANY PROBLEMS WITH BY PRODUCTS IS WHAT CAN GO INTO THE MIX 3O FOR COWS THIS CAN MEAN BONES HOOVES HIDES HAIR INTESTINES OR WITH POULTRY BY PRODUCTS IT CAN MEAN FEET BEAKS FEATHERS BONES INTESTINES AS WELL AS THE SMALL TRIMMINGS THAT ARE LEFT BEHIND AFTER THEY HAVE BEEN BONED OUT FOR HUMAN CONSUMPTION
interesting fact!
"Y LAW BY PRODUCTS DON´T HAVE TO INCLUDE ANY MEAT AT ALL IN ORDER TO BE CALLED CHICKEN OR BEEF BY PRODUCTS
0RODUCTS WITH BY PRODUCTS WILL OF COURSE LOOK LIKE ANY OTHER PET FOOD BISCUIT 4HE ORGANIC CHEMICALS THAT MAKE UP THE MUSH THAT REMAINS WILL STILL REGISTER AS AMINO ACIDS AND PROTEINS ETC YET THE FACT IS THAT A LARGE PERCENTAGE OF IT WILL BE COMPLETELY INDIGESTIBLE TO YOUR PET´S DIGESTIVE SYSTEM 4HIS MEANS YOUR PET WILL BE UNABLE TO HARVEST GOODNESS FOR ITS BODY OUT OF MUCH OF ITS FOOD 4HIS RESULTS IN TWO THINGS &IRST YOU WILL HAVE TO FEED MORE OF THE PRODUCT TO YOUR PET TO SATISFY ITS NUTRITIONAL REQUIREMENTS 3ECOND THERE WILL BE MORE ±UNHARVESTED REMAINS² LEFT TO BE PICKED UP OFF YOUR LAWNS /NE OF THE HUGE BENE½TS OF FEEDING YOUR PET A FOOD THAT USES HIGH QUALITY INGREDIENTS IS THAT THERE IS LESS STOOL VOLUME BECAUSE THE ANIMAL IS ABLE TO DIGEST MORE OF IT !NOTHER NOTABLE BENE½T
(ERE ARE RESULTS FROM THREE INDEPENDENT STUDIES 4HE #ON½DENTIAL $OG &OOD 2EPORT ANALYSED OVER PET FOODS AND CAME UP WITH THE BEST NINE #ANIDAE WAS ONE OF THEM 4HE FOLLOWING DOG FOODS AVAILABLE IN .EW :EALAND WEREN´T ON THE LIST "ENEFUL %UKANUBA )AMS 0EDIGREE 0URINA /NE 0URINA 0RO 0LAN 0URINA $OG #HOW AND 3CIENCE $IET %ACH YEAR 4HE 7HOLE $OG *OURNAL ARGUABLY THE BEST DOG JOURNAL IN THE WORLD RATES DOG FOODS FROM AROUND THE WORLD AND CREATES AN ±APPROVED LIST² WHICH INCLUDES APPROXIMATELY FOODS &OR MORE THAN YEARS #ANIDAE HAS FEATURED 4HE FOLLOWING
IS THAT YOUR ANIMAL´S STOOLS WILL SMELL A LOT BETTER WHEN THEY ARE FED A HIGH QUALITY NATURAL HIGHLY DIGESTIBLE FOOD THAT DOESN´T HAVE RANCID MEATS AND FATS IN IT #ANIDAE LISTS CHICKEN AND TURKEY MEAL AS THEIR ½RST INGREDIENTS #HICKEN TURKEY AND LAMB MEALS ARE DRY AND ARE LESS THAN MOISTURE AND CONTAIN MEAT PROTEINS #ANIDAE AND &ELIDAE CONTAIN 10 SKIN AND COAT CONDITIONERS WITH BALANCED /MEGA AND /MEGA FATTY !CIDS CHICKEN FAT ½SH MEAL ¾AX SEED SUN¾OWER OIL LECITHIN LINOLEIC ACID ROSEMARY SAGE VITAMIN % AND BIOTIN 0LEASE GO TO OUR WEBSITE OR GIVE US A CALL FOR THE FULL $ECLARATION OF )NGREDIENTS 7ITHOUT A DECLARATION OF INGREDIENTS HOW DO YOU REALLY KNOW WHAT´S GOING INTO YOUR PET´S FOOD 7HY HAVEN´T YOU HEARD OF US 3IMPLY BECAUSE WE´RE RELATIVELY NEW INTO .EW :EALAND 7E HAVE HUNDREDS OF SATIS½ED CLIENTS AND THIS YEAR WE´VE DOUBLED THE NUMBER OF CLIENTS FROM LAST YEAR AND THIS IS LITERALLY GROWING DAILY (OWEVER #ANIDAE FOR DOGS AND &ELIDAE FOR CATS HAVE BEEN SELLING IN !MERICA FOR MANY YEARS AND ARE CONSISTENTLY RANKED IN THE TOP FEW BY LEADING PET JOURNALS AND PUBLICATIONS INCLUDING 4HE 7HOLE $OG *OURNAL 7E ALSO DON´T HAVE THE MARKETING BUDGET OF THE HUGE CORPORATIONS )N FACT WE HAVE RELIED HEAVILY ON WORD OF MOUTH WHICH WORKS WELL BUT WE ARE NOW STARTING TO DO PRINT AND RADIO
DOG FOODS AVAILABLE IN .EW :EALAND AREN´T ON THE LIST "ENEFUL %UKANUBA )AMS 0EDIGREE 0URINA /NE 0URINA 0RO 0LAN 0URINA $OG #HOW AND 3CIENCE $IET 0ETSUMER 2EPORT ALSO DOES AN INDEPENDENT STUDY AND RANKS PET FOOD OUT OF ½VE WITH ½VE BEING THE ABSOLUTE BEST (ERE´S SOME OF THE RESULTS "ENEFUL #!.)$!% %UKANUBA )AMS 0EDIGREE 0URINA /NE 0URINA 0RO 0LAN 0URINA $OG #HOW 3CIENCE $IET
(ERE IS A QUOTE THAT ) RECENTLY READ IN 4HE 7HOLE $OG *OURNAL ARGUABLY THE BEST INDEPENDENT DOG JOURNAL IN THE WORLD ±)´D LIKE TO QUICKLY DISMISS THE IDEA THAT ANY OF THE GIANTS ¯ )AMS AND %UKANUBA 0URINA 3CIENCE $IET COULD POSSIBLY MAKE DRY DOG FOODS THAT ARE AS GOOD AS THE FOODS THAT HAVE A REGULAR PRESENCE ON 7$*´S ±APPROVED FOODS² LIST SUCH AS #ANIDAE 4HE FACT IS THOUGH OF COURSE THEY COULD THEY HAVE ALL THE RESOURCES NEEDED TO DO SO 4HEY COULD BURY MOST OF THE COMPETITION IN THE ±NATURAL AND HOLISTIC² NICHE IF THEY FOLLOWED THROUGH AND USED ONLY THE SAME HIGH QUALITY INGREDIENTS TYPICALLY USED BY THE SMALLER BOUTIQUE BRANDS "UT THEY GENERALLY STOP SHORT ¯ PERHAPS BECAUSE THEY ARE UNACCUSTOMED TO PAYING A LOT FOR THEIR RAW MATERIALS OR MARKETING THE PRODUCTS AT A CORRESPONDINGLY HIGH SALES PRICE ² .ANCY +ERNS 3AVE YOU TIME AND MONEY !S MENTIONED THIS IS A PREMIUM PRODUCT AND IF WE SOLD IN PET STORES OR VETS IT WOULD COMMAND A HUGE PRICE TAG (OWEVER AS WE DON´T HAVE A ±MIDDLE MAN² WE CAN SELL IT AT A PRICE COMPARABLE TO OTHER ±PREMIUM² PRODUCTS )N ADDITION TO THIS YOUR PET WILL ACTUALLY REQUIRE LESS AS HE SHE WILL ACTUALLY BE ABLE TO DIGEST AND UTILISE MORE OF THE FOOD WHICH ALSO CREATES LESS STOOLS )N ADDITION TO THIS WE WILL TAKE THE HASSLE OUT OF DRIVING TO YOUR PET STORE LUGGING THE FOOD INTO AND OUT OF YOUR BOOT AS WE WILL DELIVER TO YOUR DOOR FREE OF CHARGE 9OUR SATISFACTION IS ASSURED EVERY TIME YOU DEAL WITH US THROUGH OUR -AKE 9OU (APPY 'UARANTEE )F WE EVER LET YOU DOWN WE´LL ASK ±WHAT CAN WE DO TO MAKE YOU HAPPY ² 3O FAR WE´VE NEVER REFUSED A CUSTOMER´S REQUEST !ND OF COURSE THERE´S A FULL MONEY BACK GUARANTEE ON THE PRODUCT IF YOUR PET DOESN´T LIKE IT
re
r anywhe P.s We delive in NZ free 'ARY #OLLINS /WNER
#ALL FOR A &2%% SAMPLE AND MORE INFORMATION OR CALL NOW TO PLACE AN ORDER )F YOU PLACE AN ORDER THIS MONTH 7%´,, 4!+% /&& 9/52 &)234 /2$%2 WHEN YOU MENTION THIS ADVERT 9OU´RE PROBABLY WONDERING WHAT´S THE CATCH 7ELL WE KNOW THAT ALMOST EVERYONE WHO BUYS FROM US ONCE BUYS AGAIN AND AGAIN AND AGAIN
0H WWW CANIDAE CO NZ
Central Today | June/July 2010 | 5
News
Arguing By Bridget Gourlay
ETS
Global warming is a scientific theory that has only become widely accepted in the last decade. Whether or not it’s man-made is still being debated by some, but the United Nations, the heads of state of most countries and all major New Zealand political parties other than ACT, believe it is and want to stop its potentially detrimental effects. The thorny issue of how to tackle it is what’s coming under fire at the moment. Emissions trading is a financial, market-based approach to global warming that introduces a price on greenhouse gas emissions to provide an incentive for people to reduce them. The former Labour Government originally designed an Emissions Trading Scheme (ETS) for New Zealand in 2008, but the current National Government amended and watered it down. It will come into place on July 1.
So if climate change is real, why shouldn’t we have an ETS? Firstly, and most importantly, say ETS opponents, is because Australia and the United States are not coming to the party. Despite Kevin Rudd and Barack Obama previously campaigning for and having good track records on environmental issues and carbon trading, neither leader has been able to get the support to turn ETS legislation into law. So without Australia and the USA backing an ETS, there are fears New Zealand’s efforts, (as a small country, we are not a major polluter) will just be a drop in the bucket. Then there is the financial equation. ACT spokesperson John Boscawen says the economy will suffer and it’s Kiwi families who will be hit in the wallet. He calculates the cost of electricity will increase five percent from July 1, 2010 and extra four cents of tax per litre will be added to petrol, which will go up to eight cents in 2013.
and there is the risk of drought and the spreading of pests and diseases in agriculture. Rising sea levels will increase the risk of erosion and saltwater intrusion. Snowlines and glaciers are expected to retreat and change water flows in major South Island rivers. New Zealand has a clean and green image, which is traded on commercially to attract tourists, to sell our agricultural products and politically in international diplomacy. Not being seen to tackle climate change could put a dent in our 100% Pure brand. Minister of Environment Dr Nick Smith also points out that backing out now would be too late. “There would be real instability and uncertainty in deferring the emission trading scheme’s introduction at this late stage. I have been contacted by a number of businesses who are making substantial investments or have entered into significant contracts that would be severely disadvantaged by change.”
Problems never get solved if everybody waits for others to act. Proponents say New Zealand needs to play its part in tackling a crucial issue that might affect us in a myriad of ways.
And even if Australia and the USA are stalling now, other countries are still behind climate change solutions. “Claims that New Zealand is the first in the world to have an ETS is incorrect. Three-quarters of countries facing Kyoto commitments, 29 out of 38, already have an ETS,” Dr Smith adds.
If global warming continues, our native ecosystems could be invaded by exotic species
The National Government has scheduled a review of the ETS for 2011.
So why should the government push this through then?
6 | Central Today | June/July 2010
Showing what we’re made of By Kate Pierson
ministerial or regional delegation, there are already 175 functions booked to date.
Between May 1 and October 31, 2010 Shanghai will come alive with cultural colour, innovation, inspiration and imagination.
Sponsors of the New Zealand Pavilion include Air New Zealand, ANZ, Fonterra and Solid Energy. One of the world’s leading marketers of kiwifruit, Mount Maunganui based Zespri will also represent New Zealand at the World Expo. Its ties with China date back to more than 100 years.
Business minds from all walks of professional life will congregate to exhibit products, services and share industrial knowledge in what is a tailor made time for New Zealand businesses to show what they’re made of. The event is the World Expo and in keeping with what seems modern China’s modus operandi, this will be largest Expo in history. Enticed by the opportunity to be a part of this milestone, more than 160 of New Zealand’s most reputable businesses, including 7000 guests, have seized the opportunity. As a senior diplomat and the New Zealand ambassador to Indonesia, Phillip Gibson is the New Zealand commissioner general for the World Expo. Originally appointed to this position for the World Expo in Aichi, Japan in 2005, Gibson has extensive experience in the Asian region, having been ambassador to Thailand, Laos, Vietnam, Myanmar, Cambodia and Japan. “The World Expo and the New Zealand pavilion offers New Zealand businesses the opportunity to develop and built international relationships in China and host their guests in an environment that features a unique showcase of New Zealand culture, innovation and technology,” he says.
“China is the home of kiwifruit, which was originally called the Chinese goosebury and commonly known in New Zealand by that name well into the 1970s,” Zespri chief executive Lain Jager says. “Zespri is a sponsor because of the growth prospects in China and the World Expo will provide an opportunity to have our brand and imagery associated with this landmark international event, with the potential for exposure to over seven million visitors to the pavilion over the six months. Zespri has partnered with pavilion host, New Zealand Trade and Enterprise, to incorporate a Chinese grown Hayward kiwifruit vine into the pavilion’s rooftop garden. Pumpkin Patch general manager of business development Mike Arand says, “The World Expo is a fantastic opportunity to cement New Zealand’s position as one of the most desirable places to visit and as one of the best sources of great products and services.
“It is fantastic to see new businesses take up the opportunity to be involved with such a historic event. Some 70 million visitors are expected over the six months of the expo and we are expecting that more than seven million visitors will experience the New Zealand pavilion.”
“As we have just launched in China, we plan to use the New Zealand pavilion at the Expo to promote the Pumpkin Patch brand to potential key clients in the market. We see this as an opportunity to strengthen and further build on the branding of Pumpkin Patch by hosting in a uniquely New Zealand environment in China.”
With more than 160 companies and businesses participating in activities at the New Zealand pavilion through individual,
For more information on World Expo 2010 in Shanghai, visit www.nzte.govt.nz and search using the keywords World Expo.
90 days…
and counting
By Bridget Gourlay
Barely a year has passed since the controversial 90 day employee trial period was enacted — and government is already floating extension suggestions.
National campaigned on changing the Employment Act so that businesses with fewer than 19 staff could fire someone after three months. The legislation came into effect in March 2009 with protections remaining for sexual and racial discrimination.
The move was fought by unions and the opposition who claimed employees could be fired without warning and reason — and that the system was open for abuse. Now the suggestion is being floated in a grievance procedure discussion document that the trial period could be extended.
So why extend it? Because hiring the wrong person can be seriously expensive. If a small business hires on an unsuitable staff member it can be potentially disastrous. Research conducted by the Department of Labour in 2007 found that the median direct cost to SME employers involved in employment relationship problems was between $3000 to $4000. This includes payouts to employees, legal representation and advice, investigation costs and replacement staff, but not lost wages. Employers with fewer than 20 staff make up 97 percent of New Zealand businesses, accounting for three in 10 workers. Research in 2007 found the incidence of cases per 100 workers was higher in these companies than larger ones.
The bottom line By Kate Pierson
Although we may not openly articulate the fact, many of us believe we are of more value to our employers than they give us credit for — financially speaking. Perhaps we’re right, or perhaps our professional egos are slightly inflated. Nevertheless, wage bargaining, salary reviews, pay rises and unfortunately pay cuts are all part and parcel of being employed. But beyond the usual challenges involved with work and pay, adding fuel to the employment fire is the “to raise or not to raise the minimum wage” debate. And in context of what a wage increase could cost our employers and economy, it really is the multi-million dollar question. While they may be lobbying on opposite sides of the finance fence, New Zealand’s pro and anti minimum wage increase campaigners are working towards the same cause — protecting employees. Yet each is determined to achieve this result through contrasting methodologies. ACT MP Sir Roger Douglas says we only need to look at the skyrocketing figures in youth unemployment since the abolition of youth rates in early 2008, to see the domino affect that occurs when employers are put under financial strain with wage payment.
News
“Since youth rates were abolished in early 2008, the unemployment rate for 15-19 year olds has almost doubled.” Maintaining that there is a balancing act to be drawn, Business New Zealand chief executive Phill O’Reilly reasons that if the minimum wage is too high it creates a concertina effect. “An excessive minimum wage denies young people the opportunity to get a job, as employers cannot afford to hire them. When unemployed, they can’t gain work experience, don’t receive job training and never develop a work ethic,” he says. With an average hourly wage of $22.96 in New Zealand, O’Reilly says there is no denying many are earning less than this but that people earning minimum wage are an exception as opposed to the rule. “Most are not on the minimum wage for long. Minimum wage earners are generally those who are episodically in the workforce or unskilled at first.” O’Reilly says it is also important to take into consideration the social protection low wage earners are afforded. On the pro pay increase side of the spectrum, thousands are saying it loud and proud — ‘pay up’. Using protests, petitions and pickets, they won’t be silenced by the critics and one of the strongest voices of all belongs to Living Wage. The Living Wage campaign established by Unite Union is led by organiser Joe Carolan and attests
that New Zealand’s overwhelming support for an increase in the minimum wage is palpable. “The New Zealand Herald poll (January 2010) found that 61 percent of New Zealand supports raising the minimum wage… it still underestimates the support we are getting from thousands of people every week,” Carolan says.
The discussion document says these employers often lack the resources to deal with employment procedures and suggests extending the 90 day trial to deal with the issue. Labour Minister Kate Wilkinson says the Government is simply seeking feedback. At the time of the law change, she said the law would actually benefit employees. “The new legislation will be a real boost for people on the margins of the workforce who simply need an employer to give them a chance in a new job,” Wilkinson says.
So why not extend this trial period? Because being on trial for an extended period of time is tough on employees, financially and emotionally. Employees on trial cannot afford to make major financial decisions until they have job security. This means they certainly cannot buy a house, or may even worry about planning a holiday, putting down the bond on a flat or deciding whether or not to contribute two or four percent into KiwiSaver. The pressure and stress of possibly losing their new job might cause on-trial employees to feel uncomfortable in the workplace. Making friends, attending staff social functions and staying focused on the job is tough on employees who have to bear in mind that they could be fired without reason and need to keep an eye on the job market. The Engineering, Printing and Manufacturing Union (EPMU) says it will co-operate with the review, but will fight any attempts to lengthen the trial process. “The ability to take away someone’s economic livelihood is a huge amount of power,” EPMU national secretary Andrew Little says. “It’s a basic democratic right that employees have access to natural justice.” The discussion document is closed for consultation and will be released later this year.
Beyond securing an increased minimum wage for youth, Living Wage is advocating for adults who fall into the minimum wage category. “The working poor are not stupid and if the Government continues to attack us (Unite Union), National MPs shouldn’t be surprised they’ll be targeted for public shaming and ridicule in their local communities.” The Maori, Green and Labour parties have also added their voices to this cause and Labour MP Trevor Mallard and Maori Party co-leader Dr Pita Sharples have both spoken out in their support of a minimum wage increase. “We believe an increase to $15 per hour could be phased in incrementally if necessary, to provide immediate relief, along with the promise of a brighter future,” Dr Sharples says. It seems everyone is willing to put their two cents in when it comes to the minimum wage controversy. But as we continue to watch wage increase activists cashing in on the media spotlight, whether their vocal demands actually buy a wage increase from the government, still remains to be seen.
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Order Hotline 0800 477 624 www.specialistcleaningsupplies.co.nz Central Today | June/July 2010 | 7
News
Are you ready for the
rebound?
By Melinda Collins
Before the economic crisis, strained cashflow, poor customer service and a lack of essential business skills were shrouded by the blanket of consumerism. Business was booming, so we assumed all was well. How very wrong we were. When the credit crunch hit, even flourishing companies got a rude awakening. Consumer belts tightened and flaws in business operating models were more than just exposed; they’d become liabilities.
3
Be accessible
What defines excellent customer service? Accessibility to someone who can provide a solution, not someone who can just listen. There is nothing more infuriating than when you vent your frustrations to someone who then has to refer it on for resolution. Provide an instant solution. If you want to separate yourself from your competition, structure a customer care conduit that allows instant access and ability to provide solutions to your customer problems.
4
Invest in development
Now the economy is warming, it’s time to implement lessons learned during the past 18 months to not only make the most of a recovering economy, but be better prepared to navigate future economic fluctuations. New Zealand Institute of Chartered Accountants Auckland branch chair Michael Prasad gives us his top 10 tips.
What happens to old buildings that are not constantly renovated? They become worthless, they get knocked down and replaced by modern up to date, more valuable structures. Experts are the world’s best learners. They never stop learning and developing themselves. As soon as they stop acquiring knowledge, they lose their edge and someone overtakes them. If you don’t want to be knocked down and replaced, keep developing and continuously upgrade your knowledge to remain at the edge of your game.
1
5
Have economic crisis overheads
Structure your overheads as though you are always in a crisis. When business becomes easier, there is a natural complacency for overheads to pick up. Trimmer, fitter athletes win consistently. Make sure you run a healthy, lean machine.
2
Review your processes
Pre-economic crisis business was so good, it did not matter if customers got upset or had issues, there was always a queue behind them. But when the river runs dry, every drop becomes precious. Review your processes. Are your customers experiencing exceptional service from you? Are your company processes or policies getting in the way of great customer service?
Spend your time on growth
As a business owner you should be spending 85 percent of your time and energy on growing your business. Sales, marketing, growth strategies, joint ventures, exploring opportunities. These are the things that should take up 85 percent of your day. If you have cashflow issues, low sales or slow growth, I can almost guarantee you are spending most of your time on nonrevenue generating tasks.
6
Understand the value of your clients
Do you understand the difference between the value of a transaction occurring at the moment versus the life value of that customer? If you own the company and you don’t know, how will your staff know? They won’t, and this can be costly. So many businesses get this wrong. They will fight with their customers to preserve the profit of the transaction and in doing so, lose the life value of that customer.
7
Build a relationship with your database Is your database a list of names with zero value or is it a healthy, living entity
8 | Central Today | June/July 2010
that you consistently communicate with and market to? Your database has zero value unless you have an effective communication strategy that is designed to strengthen relationships with every name on the list. No relationship = no value!
8
Strive for consistency
If your customers enjoy an experience with you, they will come back to relive the experience. How often do you go to a restaurant or get your car fixed and you have an amazing experience however, the experience that motivated you to return is not relived the next time around? So many businesses have no systems in place to provide a consistent customer experience. If you want to keep customers coming back, structure your business to be consistently good.
9
Spend with cash, not hope
One of the greatest reasons for businesses failing is spending before the cash is in the bank. The big deal is done, all the ducks seem lined up, we have shook on the deal....let’s buy that machinery we need, let’s invest in the resource to cater for the expansion....and then the wheels fall off and the deal never happens. Sound familiar? Don’t spend your cash on hope, spend it once you have the cash in hand.
10
Use a sounding board
Why do safe motorists have wide angle side mirrors? To help highlight blind spots. One of the biggest expenses and causes of business failure is making bad decisions. Bad decisions are made because blind spots hide the real danger. How do you prevent this? Get another perceptive — a wide angle mirror for your business. A sounding board made up of other experienced business owners can shed light and opinions on your decisions and prevent you a lot of expense and pain. Michael Prasad is chair of the Auckland Branch of the New Zealand Institute of Chartered Accountants and can be contacted at michael@mpg.co.nz or visit www.mpg.co.nz
News
State of
default
By Sandy Galland
The toughest of times might be over for many, but latest figures on loan defaults show a marked rise in the number of businesses failing to meet financial commitments. Recent data from leading credit bureau Veda Advantage shows the number of commercial defaults increased by 38.46 percent in 2009, compared to 2008. By comparison, consumer defaults were up by only 8.86 percent. Reserve Bank Governor Dr Alan Bollard believes these figures are to be expected and are likely to rise in the coming months. “We think that overall these defaults are going to peak around the middle of this year, they are not too far away from doing that now.” Dr Bollard says some sectors will be hit harder than others as the defaults continue to occur. “Some will be later, some will pick up earlier, so that’s a broad generalisation. We think we can see the worst of it and it’s not going to be too much worse than you are seeing now.”
What can I do to avoid a loan default? The best way to avoid loan or line of credit defaulting is to pinpoint the pitfalls of bad loans and avoid them at all costs. To avoid loan defaults, remember the following best practices: Seek professional advice as soon as you see potential for a possible default Have a concrete payment plan before you decide to borrow Do not offer collateral and property in your contract that you cannot afford to lose Read the fine print and thoroughly understand the terms of the contract.
What does a loan default mean for the future of my business? Difficulty finding new loans. After you default on one loan, it will make it much more difficult to find a new loan. If loans are the chief means of financing your business, then you will be running into some difficult hurdles. You may want to start looking into other methods of funding your business.
Bankruptcy If your business cannot repay its loans, you may need to file for bankruptcy.
Any financial downturn places pressures on individuals and institutions’ ability to pay their debts. The business sector defaults occur later than those in the private sector, as the flow on effect of reduced spending begins to catch up with commercial entities. “You do see loan defaults increasing very significantly in a downturn and this has been a very nasty downturn. So we have been monitoring, not just defaults but past due repayments, impaired assets and the banks’ various provisioning for their expected future defaults very carefully,” Dr Bollard says. While the numbers are up and obviously many are feeling the squeeze — the figures are nowhere as high as they were in the 1990-1991 downturn. “In many respects it wasn’t as bad as this one, but actually businesses weren’t prepared for it and they had much weaker balance sheets and much bigger borrowings,” Dr Bollard explains. “So this time from the banks point of view, impairment looks to be around two to three percent of their assets. Back in 1991 it was something as high as six, seven or eight percent of their assets. So, actually, we do think that despite the fact there are a number of failures, a number of bad loans and there is some bad news for individuals in that, it’s still a lot healthier situation than we had 15 years ago,” he says. Meanwhile, Veda Advantage managing director John Roberts says the tough economic times are far from over, with significant numbers of individuals and businesses still failing to pay their debts.
“Business always lags about 18 months behind consumers when it comes to a downturn in the economy.” Roberts expects commercial defaults to get worse before they get better. “The recession may be technically over, but the bad times will still feed through the economy and businesses will be feeling it well into this year. The tough times aren’t over yet.” These numbers explain, in part, why the government’s tax take is down, he says. “Businesses are experiencing tough trading conditions and now we are seeing the end result — businesses can’t pay their bills. This means they are paying less tax and for some — businesses closing down, shops empty and people losing their jobs.” Another piece of positive news from the latest round of financial reporting sees many large banks reporting increased demand on borrowing and a fall in impairment charges; an indicator that confidence is returning. More positivity from ratings agency Moody’s Investors Service as it predicts New Zealand’s non-performing loans have peaked and has boosted its outlook on the country’s banking sector to stable as the economy dragged itself out of its worst recession in 18 years.
Fraud surges Also on the rise is the alarming figure in defrauding, which rose to more than $100 million last year. The increase of high level managers committing fraud has also risen dramatically. The total amount defrauded was $76 million in the six months to December 2009 according to the recently released KPMG Fraud Barometer report. This compares with $22 million in the first half of 2009, making a total of $100 million being defrauded for the 2009 year. In 2008 there were approximately $70 million of large frauds in New Zealand. A PricewaterhouseCoopers Global Economic Crime Survey, released late last year revealed that during 2009 a total of 42 percent of New Zealand organisations were the victims of fraud. The global average was 30 percent. Asset misappropriation (theft) was the most common form of fraud, cited by 86 percent of New Zealand respondents. This was followed by financial statement fraud, cited by 36 percent, and intellectual property theft at 17 percent. In 72 percent of all cases the fraud was committed by someone inside the organisation says PricewaterhouseCoopers Forensic Services partner Eric Lucas. “The high level of fraud committed by internal staff was a figure we expected and reflects our own experiences in fraud investigations. What was alarming was the shift in the profile of the internal fraudster.
“This shift is a cause for concern, as senior staff have the ability to override internal controls and can potentially cause greater financial loss to organisations.” KPMG Forensics partner, Mark Leishman says the large jump in frauds in the second half of 2009 is mainly because of a number of large cases involving multimillion dollar frauds. “These figures confirm that fraud is a constant and serious threat to all sectors of the New Zealand economy, including business, governments, non-profit organisations and individuals. “The results of the Fraud Barometer are evidence there are significant levels of fraud prompted by, or uncovered during, the economic crisis. What is being disclosed now is primarily long term pre-existing frauds. We are still yet to see the full impact of the current economic situation,” Leishman says. For a second consecutive period, the KPMG barometer also found those in management tend to be more likely to commit fraud than lower level employees. And when they do commit fraud, they generally steal far higher amounts due to their access to information, authorisation capabilities and ability to understand and override internal controls. The financial crisis had created an environment with greater incentive or pressure for fraud. Most common reasons for committing fraud were that it was increasingly difficult for staff to achieve their performance targets and people were afraid of losing their jobs.
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1
#
sport & community
safety & health
youth & education
culture & environment
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News
A world of
choice
By Sandy Galland
It would be true that for the majority of companies to grow they need to sell more. The New Zealand market place is small and to achieve bottom line acceleration, the obvious place to look is offshore. There are tremendous growth opportunities in many regions of the world and as our government and the various trade arms and agencies work to open up easier access with increasing numbers of international neighbours, both near and far, the export opportunities for our home grown companies expand.
Knowing how to get your foot in the door is often the hardest part of the process and over a series of features in Central Today, we will look at what is happening in the international trade sector, and how you can jump on the band wagon. Prime Minister John Key has identified increased trade opportunities as a priority for 2010. In the trade mix, he has identified working towards free trade agreements (FTA) with the United States, India and Korea, the hope for conclusion of the WTO Doha Round and the continued push for the single economic market with Australia.
ASEAN Other trade highlights of 2010 include the Association of Southeast Asian Nations (ASEAN) free trade agreement with Australia and New Zealand which entered into force on January 1. This opens up trade to and between Australia, New Zealand, Brunei, Malaysia, Myanmar, the Philippines, Singapore and Vietnam. This is our third largest export market, growing by 110 percent since 2003, with two-way trade in goods worth $12.2 billion in 2008. Globally ASEAN represents a market of more than 566 million people and accounts for more than US$1,400 billion in trade, according to the New Zealand Ministry of Foreign Affairs and Trade (MTFA). Unfortunately, other key markets — Indonesia and Thailand — were unable to complete the pre-entry into force steps and during the early stages of the year, the MFTA
will work closely with Australia to help both those countries to complete the required steps. The Malaysia-New Zealand Free Trade Agreement is expected to enter into force in May 2010, according to New Zealand Trade and Enterprise (NZTE).
China On October 1, 2008 New Zealand became the first developed country to enter a free trade agreement with China. NZTE cites securing preferential access to China’s economy as having the potential to deliver significant gains to our exporters. As our fourth largest trading partner, taking more than $1.6 billion of New Zealand’s merchandise exports and more than $1 billion of services, China is the planet’s fastest growing major economy, currently growing at 9.5 percent per annum. Its middle class is now estimated to be more than 100 million people and growing — which will fuel the demand for New Zealand’s agricultural products. There should also be gains for manufacturers and services operators.
India India’s economic ascendance is undeniable and this is acknowledged by John Key saying our relationship with India is a priority. “Its leading position in the region and internationally, and its economic significance, makes it strategically important to New Zealand.” New Zealand Trade Minister Tim Groser and Indian Commerce Minister Anand Sharma announced on January 31, that all approvals had been secured for FTA negotiations to commence. Meanwhile, a recent visit by an Indian Member of Parliament helped to strengthen ties between the two nations. India is one of New Zealand’s fastest growing markets, with our exports having tripled over the last decade. The start of negotiations offers significant opportunities for businesses in both countries. New Zealand’s exports to India were valued at NZ$630 million in 2009, a 280 percent increase on our 2001 exports and overall bilateral trade between India and New Zealand grew 180 percent between 2001 and 2009, from NZ$353 million to NZ$985 million.
Gulf nations It’s anticipated the long awaited FTA with the Gulf Co-operation Council (GCC) will be signed in April, with details of the agreement being made public upon signing, the MTFA says. This will ease trade between us and six Arab nations — United Arab Emirates, Kuwait, Bahrain, Saudi Arabia, Oman and Qatar.
The FTA is a significant achievement for New Zealand and secures new and improved access into some of our most important Middle East markets. Exports to GCC totaled NZ$1.3 billion in the year to June 2009, an increase of 218 percent since 2000. The group now ranks as our seventh largest trading partner with bilateral trade worth $3.85 billion. Christchurch-based Innovative Travel managing director Robyn Galloway has been doing business in the Gulf since 1987. She believes this agreement gives us a huge advantage over Australia, who are nowhere near concluding negotiations. New Zealand is only the third country in the world to sign a FTA with the GCC. “Politically, we also have a huge advantage over Australia. There is a lot of recognition in the Gulf of our more neutral political stance and, as a country, we are very well received over there.” Galloway, a member of the NZ Middle Eastern Business Council, adds many Kiwi businesses think of the Gulf and look at the bad press and failed investments in Dubai recently, but the United Arab Emirates are only a small blip on the map in the region, she explains. “There is so much growth and wealth across this area and people shouldn’t be influenced by Dubai alone.”
It is well recognised the Gulf is generally made up of conservative societies, and Galloway recognises there is a degree of nervousness among potential Kiwi exporters, but encourages anyone interested in expanding into this region to seek more information. The work, over the years, by New Zealand delegations and businesses already exporting goods and services to the region, has paved a smooth road to significantly increased potential in these Arab countries. “We are seen as a good place to do business with and this gives more impetus to the agreement,” Galloway adds.
Japan
New Zealand and Japan are establishing a joint Officials Group to examine ways to further develop our bilateral trade and investment relationship. The MFTA hopes to see advancement in the bilateral relationship and expects the process will provide both governments with information they need to decide whether to move to FTA negotiations in the future.
Korea The first rounds of FTA negotiations between New Zealand and the Republic of Korea took place during 2009. It is our sixth largest market, taking goods worth nearly NZ$1.4 billion in 2008, while over the same period New Zealand imported NZ$1.3 billion worth of merchandise from Korea. New Zealand’s exports are dominated by primary products, food and wood products in particular, while main imports from Korea are automobiles and electrical goods. It is our sixth largest source of overseas visitors, with almost 80,000 Koreans visiting New Zealand in 2008. Korea is also the second largest source of overseas students. For further information, statistics and assistance on the existing and pending FTAs New Zealand has in place visit mtfa.govt.nz and nzte.govt.nz
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The objective of an FTA with the GCC would be to move towards deeper economic integration between New Zealand and the GCC countries. The aim of the FTA, at this stage, would be to substantially cover all trade, including goods, services and investment, and other issues including trade and labour, trade and environment, government procurement and intellectual property. According to the MFAT there are currently three broad benefits accruing to New Zealand; the removal of tariff barriers to maintain our competitive edge, a platform to develop trade in services and investment and reducing non-tariff barriers to trade.
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Order Hotline 0800 477 624 www.specialistcleaningsupplies.co.nz Central Today | June/July 2010 | 11
Profile | Gordon Tietjens
GAME Gordon’s
12 | Central Today | June/July 2010
Profile | Gordon Tietjens
Creating
a winning concept By Kate Pierson
The greatest quest in contemporary science is a search for the indivisible and the reason for this is simple — because pretty much everything is a collection of smaller pieces. And the deeper you dig, the smaller the pieces get. Take people for example; physically and behaviourally we are all just the sum of our parts. Add human endeavour to this and again it’s the same thing — an achievement is a collection of steps down a particular path. The longer the path and the harder the steps, the more brightly this achievement shines. And for those who have forged a profession from their passion, their career can burn the brightest of all. As the New Zealand Sevens coach, Gordon Tietjens’ career has been an incandescent light, burning brighter than perhaps he himself could have even imagined. It has guided him on an incredible journey where the light of his own personality has shown others the way forward. The people whose lives he has helped shape and enrich would undoubtedly agree. And while it’s said ‘don’t let your job define you’, Tietjens wouldn’t have it any other way. In fact, he defines his job. Tietjens is a living and breathing rugby radar; detecting talent with his expert eyes and intuitive senses. Christian Cullen, Jonah Lomu, Joe Rokocoko and many more — the professional portfolio of talent he has scouted reads like the who’s-who of world-class sportsmen. But while Tietjens’ name may be synonymous with sporting success, as a mark of his innate modesty, his legendary status and personality remain strangers, meaning you’ll never hear him indulge his ego. Humility aside however, the verbal applause that echoes in the public sphere indicates his gift certainly hasn’t escaped the attention of New Zealanders. Ask any man interested in running rugby if he knows who Gordon Tietjens is and their quickfire response indicates it’s a no-brainer. And it is really. Because how could the name that has gone hand-in-hand with countless sevens victories be anything other than revered? Tietjens may not want to list his own praises, but the facts do it for him. His New Zealand squads took all three gold medals in the sevens tournaments at the Commonwealth Games in Manchester in 1998, Kuala Lumpur 2002 and Melbourne 2006. Since the inception of the IRB Sevens World Series in 1999, the New Zealand Sevens rugby team won the title every year with the exclusion of 2006 and 2009. Tietjens is uncompromising in his demand of excellence — the results don’t lie and he’s arguably revolutionised the way rugby is played. In short, he’s a sports specialist, but his words of wisdom are rich in logic, so they can be applied to your world as you see fit.
We all know that there’s no “I” in team, but team is also an acronym for “together everyone achieves more”. It’s a philosophy that Tietjens lives by and a mantra for every team of players he works with. Committed to fostering a synchronised network of players who grow physically, emotionally and psychologically as an integrated force, Tietjens knows a win is not just about how the players have played on the day or how effectively the learned tactics and strategies have been applied. Winning is a multi-faceted process that starts with the creation of a culture. “You’ve got to create a culture and to create a culture that is second to none in terms of success, there have to be four qualities that make up this culture,” he says. “The first quality is the team itself and then there’s team unity; this is about the team becoming a family and it is the physical and mental pressures and driving through these pressures that really brings them together. “Thirdly, it’s about passion — because with passion comes enjoyment and then finally, discipline — this relates to having strong work ethics.” Creating a culture in rugby is also about setting standards, Tietjens says, because when you’ve experienced success you have set a benchmark for the future. “A big part of the New Zealand Sevens is setting standards because the game is a launch pad for future careers — the first part of their professional era. “Standards in sevens rugby are physical and mental; they’re not just about one thing. Nutrition, work ethic and application all come into play. And while I do set the standards and put the protocol in place, the players have to buy into it themselves.”
Get your head in the game… If you have ever watched a game of rugby with bated breath, or felt the adrenalin rush yourself as a stampede of opposition closes in demanding an impulsive but calculated decision be made, you’ll know and appreciate that rugby is not just about physical strength. It’s an analytical game. A competition that demands intuition, strategy, logic and mental toughness. “My philosophy is, ‘you play what’s in front of you, you read what’s in front of you’,” Tietjens says of the strategy involved. “You can go in with a game plan, but you have to be prepared for this strategy to dramatically change because sevens is about expressing yourself,” he adds. Getting your head in the game of sevens is not just about how well you play the game, but how well you play the part of a true professional player. This means being the player not only on the field but in mind, body and motivational drive. “With motivation you do have to grow it, but it also has to be there from the start,” Tietjens says. “Players have to have a hunger for it and
the black jersey is always a motivation for them, because every time they put it on they have to say to themselves, ‘this might be the last time I wear it’. “While the commitment to this sport is a massive adjustment for the players’ lifestyle, there is no real alternative if they want to be there. It’s an agreement between us all and when we assemble as a team for the first time, we give players the opportunity to have input. “We create a document for them where they can outline their expectations of themselves and the expectations they have of us (management) — it’s a two way thing.”
… and keep your feet on the ground The aim of the game in rugby may be to stay off the ground, but in the social sphere, staying grounded is everything. Because while confidence is key in professional sport, there is no room for ego on Tietjens’ teams.
The New Zealand Sevens team attended a school camp in Ohope and a meet and greet session at Whakatane Intermediate, and Tietjens says these events are all about being socially and emotionally available to the people who have given them their unequivocal support. “Humility, that is ‘the’ top quality for us all. It’s true our teams have had a lot of success, but humility and being level-headed are real qualities, as is integrity. Our teams mix and mingle with whoever— we go out to different school districts and visit the schools who would not usually get to meet professional players. It’s about remembering who we are.” Tietjens himself says that even through all of the success, the taste of victory is savoured with as much vigour every time. “Some of my proudest moments have been standing behind the boys as they are accepting the gold medal, when our New Zealand flag is flying high and the national anthem is playing. “This is us truly representing New Zealand and there is nothing better than that. ” Central Today | June/July 2010 | 13
News
Events | Diary Grow your business
|
events
Tuesday, June 8
GST Workshop — Inland Revenue Tauranga
A workshop for people new to GST and wanting to learn more. It covers GST basics, keeping a cashbook, expenses, invoices, how to complete GST returns and filing online. From 9.30am to noon. To register contact Denise Balloch (07) 927 5217 or email advisory.tauranga@ird.govt.nz
Wednesday, June 9 The Trustpower Quality Customer Service Seminar — Rotorua Chamber of Commerce
Customer relations and satisfaction are vital elements of business. Develop your skills and knowledge on how best to achieve excellent customer service. To register contact Rotorua Chamber of Commerce (07) 349 8365
Thursday June 10 Introduction to Business Seminar —Inland Revenue Whakatane
A workshop designed for people thinking about starting their own business, or who are new to business. The course covers all the basics of record keeping, income and expenses, budgeting for income tax payments and more. From 9.30am to noon. To register contact Ian Bushett (07) 921 3810 or email advisory.rotorua@ird.govt.nz
Tuesday, June 15 Coach or Referee — EMA Central Masterton
Coaching and refereeing are smart managing and leadership skills. Effective and timely coaching and refereeing will assist employees to reach their performance goals. To register visit www.emacentral.org.nz or email training@emacentral.org.nz
Friday, June 18 Rural Bachelor of the Year — NZ National Agricultural Fieldays Hamilton
With incredible prizes up for grabs, now is your chance to compete in the Rural Bachelor of the Year competition, the Rural Good Keen Girl competition, or just check out the talent on display at Fieldays. Enter online www.fieldays.co.nz or contact Jacqui Cooper (07) 843 4497
Thursday, June 17 Employer Workshop — Inland Revenue Rotorua
A workshop for people who have recently starting employing staff and those who need to know more about employing staff and the legalities of doing so. From 9.30am to noon. To register contact Ian Bushett (07) 921 3810 or email advisory.rotorua@ird.govt.nz
your losses By Kate Pierson
We have all heard and offered others the advice ‘just cut your losses.’ But like most social idioms of this nature, it’s always easier said than done. Although persistence is an admirable trait, our quintessential Kiwi determination to never give up can also blind our better judgement. In many cases, our commitment to holding, when folding is the logical answer, can be detrimental not only to our dignity but the livelihood of our businesses The notion of ‘fast failure’ is a conceptual sibling to the ‘cut your losses’ analogy. And while the denotative meaning of the word failure is enough to make anybody’s professional pulse race, this phrase is ironically being offered as a key recommendation to New Zealand. Coined by a high-powered panel that emerged from the 2009 Entrepreneurial Summit, the definition of fast failure is offered by panel member and Designindustry Limited’s managing director, Dorenda Britten. “Fast failure is being brave enough and ego-free enough to let go of ideas,” she says. “It is about embracing rigorous evaluation of ideas at all stages of a product or service development. Sometimes this can mean throwing out an idea in its entirety and sometimes it may be the goal is good, but the delivery is wrong.” So is fast failure something New Zealand needs to do more of? “We think so!” Britten says. “New Zealanders admire tenacity above all things, but what’s the point of tenaciously venturing down the wrong path?” In New Zealand, there is a societal tendency to take criticism personally, Britten says. Therefore, “what is most most needed, is for people to be able to stand back and welcome diverse inputs whether it be favourable or unfavourable. 14 | Central Today | June/July 2010
“If the idea is strong enough, it will come through even stronger. The best ideas are often amalgams of many ideas that couldn’t make the cut on their own. “Killing an idea can be very empowering for a person or an organisation. Ideas are plentiful and cheap; we have no shortage of them. Pinpointing those that have an even chance of meeting future market needs and backing them will, we believe, provide a better return on investment for both public and private funders and contribute significantly to New Zealanders future success.” Britten says that in the pursuit of long term success, businesses need to have an evaluative process in place which involves measuring the validity of a product against existing or potential consumer demand for it. “What we are suggesting — and that organisations who regularly develop new products do have in place — is a process for evaluating customer and community needs and balancing that against company resources and vision.
Strategic thinking “Decisions therefore, should be based on diverse and wide knowledge brought to the table early by various stakeholders and measured against mid to long term strategic vision through the use of known and trusted criteria.” As the director of Designindustry in Christchurch, Britten has a wealth of knowledge and experience in conceptualising strategies and developing skills for success. Working in a panel alliance with members including former 3M boss Maurice Boland, Britten says it is time for New Zealanders to step back from the action to see the bigger picture. “Too often we are simply in love with our ideas and schemes and this can make us blind to changes in the market and we can become increasingly divorced from notions of risk and return. It is vital that we keep abreast of changing contexts.”
Tuesday, June 22 Creatively Managing the Workforce — EMA Northern Tauranga
Learn about employment arrangements that cater for people who want to work part time, casual or flexible hours and gain deeper understanding of employment options. To register contact Bill Butler (09) 367 9071 or email bill.butler@ema.co.nz
Wednesday, June 23 Business Excellence — New Zealand Institute of Chartered Accountants Hamilton This conference aims to provide attendees with a greater understanding of business excellence. Discover tools and techniques to ensure your business is continually improving while still carrying out day-to-day operations. To register visit www.nzica.com
Tuesday, June 29 Improving Profit in Turbulent Times — New Zealand Institute of Chartered Accountants Masterton
This course offers a comprehensive look at how a management team can explore, analyse and implement strategies to improve profit and cope in a rapidly changing environment. To register visit www.nzica.com
Wednesday, June 30 Opportunities to Grow and Develop — EMA Central New Plymouth
This course is designed to explore options for developing a workplace which accommodates the work/life balance, career development and flexible working arrangements employees seek. Members $330+GST, non-members $414+GST. To register visit www.emacentral.org.nz or email training@emacentral.org.nz
Tuesday, July 6 Strategy Formulation — EMA Northern Hamilton
Learn an effective, step by step process to formulate your organisation’s strategy, via a range of business tools that work through the key factors needing to be considered. Members $440+GST, non-members $525+GST. To register contact Deborah Law-Curruthers (09) 367 9047 or email deborah.lawcurruthers@ema.co.nz
Sunday, July 11 to Friday, July 16 Company Directors’ Course — Institute of Directors Tauranga
This week long residential course provides a comprehensive understanding of the roles, duties, skills and knowledge required for competent directorship. From 8.30am to 5pm each day. To register contact Lisa McMillan at the Wellington office (04) 474 7651
Tuesday, July 13 Retaining and Attracting Good People — EMA Central Napier
This course explores the topics that enable employers to attract people with the appropriate talents and potential for their organisation. Members $330 + GST, non-members $414 + GST. To register visit www.emacentral.org.nz or email training@emacentral.org.nz
Thursday, July 17 2010 Primary Sector Conference — New Zealand Institute of Chartered Accountants Rotorua
A programme designed to keep you in the know about the latest industry happenings and hot topics in the primary sector, such as emissions trading and succession planning. To register visit www.nzica.com
Wednesday, July 28 Payroll Legislation Essentials — EMA Northern Hamilton
In this seminar you will gain a comprehensive working knowledge of wage related law applicable to the wage function. Members $390+GST, non-members $525+GST. To register contact Bill Butler phone (09) 367 1971 or email bill.butler@ema.co.nz
If you have events you would like featured in the Events Diary, email newsroom@academy.net.nz at least two months before the date of the event. Or, if you have held an event and would like to supply photos for the Been Seen section (along with 100 words about the event and a caption for each image), send to newsroom@academy.net.nz
Viewpoints | Management
Creating a positive
work environment By Greg Watson
I believe four elements help to create and maintain a positive working environment. These elements are: Showing interest in your team members Creating an encouraging working environment Recognising and rewarding good performance Having fun. Show your team that you are interested in them by asking their opinions, complimenting their work and offering help.
Questions of
I recommend “MBWA” — Management By Walking Around. Get among your team, discuss their work, be available and chat or share a laugh. If each team member feels valued they will work positively towards the common cause, or their individual task. A team which feels ignored will also feel unappreciated, could head off task and lose respect for management due to the leader’s unavailability and inability to direct. Most people would agree that an encouraging working environment is one where ideas are valued and rewarded, fun and laughter is par for the course, you are thanked for your contributions and you feel like part of a team.
By Ngahihi o t era Bidois
During my last business trip my family and I arrived at Heathrow airport, England at the early hour of 5am. We met our driver who had come from our destination — about one and a half hours away. Some 20 minutes into our journey my daughter started expressing her concern (in the Maori language) that our driver was falling asleep. Presuming the driver knew what he was doing we did not act immediately on her concerns. After all, she was just a 12-yearold child questioning the expertise and professionalism of our experienced driver. In his book The Outliers, Malcom Gladwell points out that prior to the year 2000, Korean Airlines had a very poor safety record. In fact their record was so poor that the US Army, who had thousands of troops based in South Korea, forbade its people from flying with that airline. So audits were conducted and very interesting discoveries were made. One of the measurements used with the airline was called the Power Distance Index (PDI). PDI is concerned with the attitudes towards hierarchy and how particular cultures value and respect authority. The audit discovered that the PDI between captains and first officers was very high, meaning the first officers did not question the actions of their captains piloting the aircraft, even when the aircraft was in serious danger. Like me in that taxi, first officers presumed the captains knew what they were doing and dared not challenge their expertise.
However, when first officers did nothing — planes crashed. Changes were made to equal out the bases of power. First officers were taught to be more assertive to the extent of taking control of the plane if required and were also put in charge of flights — and planes stopped crashing. Incidentally, the country with the lowest and best pilot PDI is New Zealand. So when was the last time you questioned someone in a position of authority in your life or business? How many times have you presumed others knew what they were doing, only to see it end in tears or business profit losses? Do you expect and accept an unequal balance of power in your life or do you feel you can safely question the decisions of others that affect your wellbeing? My 12-year-old daughter did not know about PDI and the safety record of airlines, but she did know a person in authority over our family was very tired. She persisted with her questions which led to me strongly suggest we stop to get something to eat. During the break we apologised to our daughter for not acting sooner and the journey continued without incident.
My team is encouraged to come up with new ideas and improvements and are rewarded by seeing them put in place. An encouraging environment benefits employees and they tend to contribute more ideas, feel more committed, look forward to coming to work, are more productive and have an increased self esteem. Benefits to management include reduced staff turnover, greater loyalty, increasing ease of attracting new employees and higher overall productivity. Recognising and rewarding good performance should increase greatly the chances that similar performance will continue in future. Getting to know your staff will help you decide what drives them. Most of my team are not motivated primarily by money. Some will prefer rewards such a compliments, saying “thank you” or applause at a meeting. Others may be driven by time off with family, a promotion, tickets to an event, or public recognition of their achievements. Having clearly defined expectations of your team will help with setting goals and setting rewards. The most successful rewards can
be those that employees have chosen for themselves, as this increases the ‘buy-in’ factor of your team. By the nature of it, going to work each day means you do need to work. However, creating a fun environment really helps to foster happiness, a good team spirit and can put a little positive unpredictability into the day. Happy employees are productive employees. Find reasons to celebrate together, such as birthdays, a new child, a small milestone and have a morning tea or cake to celebrate. On the board in the break room write up “Today we are celebrating… ”, and this will help connect the entire staff. Encourage your team to see the funny side of the day-to-day events that may otherwise drag them down. It’s much better to laugh than cry! Create events such as an end of month gettogether for employees and friends, outings like go-karting or playing ambrose golf. Recently, my staff thought they were going on a training field trip and we ended up having a departmental mini golf challenge. Imagine their delight when they discovered learning about law had been replaced with learning to master the lawn! So go out there and have some fun, take your team with you and the rewards will follow. Greg Watson recently won the Manawatu Chamber of Commerce Individual Award for Best Business Manager. He runs the multiple national award winning property management company Watson Real Estate Ltd — www.watsonproperty.co.nz — based in Palmerston North.
My daughter taught me an important lesson during that taxi trip. “Ahakoa he iti he pounamu” — small gifts are often precious. Our questions may seem small and insignificant, but are precious gifts. I encourage you to ask questions of people in authority in your situations. You may find life-giving answers await you too. Ngahihi o te ra Bidois is an international speaker and consultant. Visit his website www.ngahibidois.com Central Today | June/July 2010 | 15
Agribusiness | Down on the Farm
By Melinda Collins
Food hubs
Is a pinch of talent, a dash of government funding and a dollop of Kiwi ingenuity the recipe to improve New Zealand’s innovation performance? Seems it is.
New Zealand’s exports of processed foods have experienced strong compound annual growth of 18 percent over the last decade and now accounts for $2.1 billion of exports. This has the potential to at least double in the next few years with the assistance of initiatives such as the FINNZ, Brownlee says.
New Zealand has been failing abysmally in the innovation stakes during the past decade. But for our food and beverage companies, it has not been for lack of trying, Economic Minister Gerry Brownlee says.
Massey University vice-chancellor Steve Maharey has been pushing for the move for some time and is pleased with the outcome for both New Zealand and the central North Island region. “We are very pleased the Government is backing the food and beverage industry, a
“The absense of open-access facilities in New Zealand to enable product development and testing is a significant gap in our food and beverage industry and a constraint to growth. Such facilities exist in most OECD countries.” Now with the government stumping up as much as $21 million to establish a food innovation network across the country, small and medium sized companies will have access to state of the art research and development facilities. Food Innovation Network New Zealand (FINNZ) will be a collaboration between national and local government, industry, research and education providers, with four regional hubs in Manukau, Waikato, Palmerston North and Canterbury. Brownlee says New Zealand’s export base is reliant on its food and beverage industries and by providing the infrastructure, these firms can add value to products, allowing the industry to develop more rapidly and improve our economy, he adds. “The food and beverage sector is responsible for over half of export earnings. Directly or indirectly, the sector employs one in five of the working population. “Given its importance, maintaining and improving the performance of the sector is essential to achieving the government’s economic growth agenda.” 16 | Central Today | June/July 2010
sector Massey has been supporting since the 1920s and one that is crucial to New Zealand.”
will be a significant resource for the industry, encouraging more product development.
“As the leading university in the food and food technology sector we are involved in two of the four regional hubs, Manukau and Palmerston North. Our expertise both from the Albany and Manawatu campuses has been employed in development of both these propositions, so we are delighted the Government has seen the potential and chosen to back them,” he says.
“New product development is the lifeblood but many New Zealand food companies are not of a size to warrant an in-house product development resource. These open-access facilities will shorten the time it takes to get products to market and reduce the risk and cost to small and medium sized food companies.
New Zealand Food and Grocery Council (FGC) chief executive Katherine Rich says the network
Dry times By Melinda Collins A kaleidoscope of colour embraces New Zealand in autumn with golds and warm reds splashing the landscape. But the colours may seem less appealing to our embattled dairy farmers as they fight to mitigate the effects of drought in our upper regions.
which have been affected by soil moisture deficits, then we’re pushing close to half of New Zealand’s dairy herd.”
The harsh reality is there’s no quick fix for our biggest export earner with Federated Farmers warning the effects of the drought may be felt for several seasons.
Drought has evaporated Northland’s daily milk production by nearly 30 percent from last season and McKenzie says this number would be worse if the previous season wasn’t also below average. The Waikato isn’t fairing much better with daily production also taking a tumble through lack of rain. The region, which lays claim to being Fonterra’s milk collection capital, is producing 6.5 percent less daily production, McKenzie says.
Federated Farmers dairy chairperson Lachlan McKenzie says dairy farmers need to make provisions for recovery plans. “Experience tells us that it can take several seasons before our full productive potential is resumed, so planning for pasture renewal and cow condition recovery is important.”
Federated Farmers has welcomed measures to battle the effects and reduce a doubledip recession adverse events, spokesperson David Rose says. “The 2007-2008 drought cost the economy $2.8 billion and was a major recessionary factor. The decision to widen drought programmes is essential.”
The numbers speak for themselves. “Some 40 percent of New Zealand’s dairy herds are now in drought declared zones. Yet if we add in regions like the Bay of Plenty and Otago,
These measures are not “cash in hand” to farmers. “These programmes are really about advice that speeds recovery back to full production. The relevant Rural Support Trusts
“FGC gives its wholehearted support of these centres and encourages all food companies to see them as a valuable industry resource.”
are funded to bring in expertise to plan and advise on everything from farm management and budgeting through to counselling, given this is a fairly stressful time.” He warns however, that a large swathe of New Zealand’s dairy herd and an increasing number of our beef and fibre farmers are being effected by what will soon become a “green drought”. “Impending rains will come too late for effective pasture growth or renewal, so the drought’s effect will be felt into next season and possibly the one beyond that. It will have an economic cost, but the advice that’s now on offer will speed up recovery. “That’s why drought assistance is vital as the economy turns of its farmers, who generate 64 percent of everything we sell to the rest of the world. It’s why water storage infrastructure must now become a national priority too,” Rose concludes. For drought advice and assistance phone 0800 DROUGHT (376 844)
Agribusiness | Down on the Farm
Looking to the future By Kate Pierson
We may cringe or chuckle at the ‘more sheep than people’ cliché attached to our country, but lest we forget these sheep are part of an industry which is the backbone to our economy.
“New Zealand farmers have always been innovators and with their “can-do” attitude tend to lead the world with new farming methods.
As a world leader in agricultural and pastoral farming, New Zealand plays a central role in these respective world markets and is recognised for its innovative and progressive approach to enhancing productivity in the sectors.
For more information on the 2010 New Zealand National Agricultural Fieldays, visit www.fieldays.co.nz
An investment in the future of these industries is also on the cards because it’s nearing that time again; the time of year when pioneers congregate with fellow pioneers to trade industrial knowledge and expertise at the largest agricultural event in Australasia — the New Zealand National Agricultural Fieldays. Since its inception in 1968, National Fieldays has been equipping local and international farmers and agriculturalists with innovative tools for their trade. At the helm is the New Zealand National Fieldays Society, a non-profit charitable organisation. Comprised of a committee of volunteers and a team of more than 30 staff members, the Fieldays society co-ordinates and oversees the logistics of the event. Located right in the heart of the Waikato, National Fieldays is only 10 minutes from Hamilton, Te Awamutu and Cambridge. From June 16-19, 2010 this premier agribusiness event will provide a hypermarket of consumable knowledge, products and technology.
Melting pot For four days Mystery Creek will become a cultural melting pot with more than 130,000 national and international visitors expected from 38 countries across the globe. With more than 1000 exhibitors registered for 2010, National Fieldays is a networking opportunity and a chance for farmers and agricultural agents to get their hands on emerging trends and developments in these industries. Hamilton based automation specialist Dairy Automation Limited (DAL) and biological fertiliser expert, Outgro Bio-Agricultural Limited are the sponsors for 2010. National Fieldays general manager Barry Quayle expressed his appreciation about their involvement. “DAL and Outgro personify Kiwi innovation by supporting the rural sector productively through their efficient systems and technologies. We are delighted to be involved with industry leaders.” DAL general manager Simon Thompson elaborates on their sponsorship, “National Fieldays is always high on our list of events to attend with many leads being generated over the four days. This year’s premier feature theme ‘Innovation for Future Profit’ very much reiterates the message DAL has been promoting to farmers since its inception in 2007; that of using cost effective technology to improve on farm profits.”
“Outgro shares this philosophy and has developed a system that enables farmers to improve farm profitability and productivity. The opportunity to co-sponsor this year’s event was an obvious choice.”
National Fieldays June 16-19, 2010
Fieldays revamps its act It might be located in Mystery Creek but there is nothing elusive about the National Agricultural Fieldays. In fact, it’s recognised as the largest agribusiness event in the southern hemisphere and this year it’s in for a structural makeover. Supported by strategic partners the National Bank and University of Waikato, National Fieldays is not only a platform for personal exhibition on the professional and playful front (think ”good girls” and “bachelor blokes” fighting for legendary golden gummies), but a significant financial injection into the local economy. According to the University of Waikato Management Research Centre, the 2009 National Fieldays netted $129 million for the Waikato economy with a National economic impact of $529 million. For Fieldays 2010, the times they are a-changin’. Because after a comprehensive survey and review, Fieldays is retaining its inherent and definitive agri-business identity but will be dressed in a new theme ‘Innovation for Future Profit’ and have new avenues for exploration. Programme it into your memory bank; the Fieldays Innovation Centre is on the move to outside the Mystery Creek Pavilion for 2010
and the International Pavilion, renamed the International Exhibition Area, will be relocated to the Mystery Creek Pavilion — a 8064 square metre exhibition and the largest indoor area at Fieldays. This pavilion will showcase world leading agricultural companies and offer information on trade potential, global trends and international business opportunities. National Fieldays general manager Barry Quayle discusses some of the other fundamental changes and the motivation behind this operational overhaul. “We (the Fieldays Society) undertook a survey through group meetings. In the feedback, there was a lot of commentary about improving the roads and having a higher standard of access. “Aside from improving the roads, we have also looked at a number of things that relate to accessing the Fielday sites. For 2010, we want to improve traffic flow and this is about conveying relevant information to people in their cars and providing them with improved directional information.” A major outcome of the survey also resulted in a new initiative for 2010 — the Bluepass. Essentially a VIP pass for farmers, sharemilkers, chief executives and agricultural firm owners, the pass recognises that potential buyers are generally time poor and need to maximise what time they do have.
“Our job is to make things easier for people whose time is limited and the valet parking we have established is a primary attribute of the Bluepass. Valet parking means potential buyers are presented with a hassle free situation and exhibitors have the potential to identify buyers more easily,” Quayle says. New to this year’s Fieldays will also be ‘meeting places,’ which have been established for buyers and exhibitors to do business one on one. There will also be private demonstration compounds for buyers to have a more hands-on interaction with prospective assets to their businesses. “In the past, we have only had a public demonstration area,” Quayle says. “In the feedback we received, buyers and exhibitors expressed the need for a range of options which they could look at in a series of small compounds.” For 2010, the Fieldays marketplace will reverberate with foreign accents as the involvement of Belgian and French participants marks a Fieldays first. America, Italy and New Caledonia will also have a presence at the event which will see the first Rural Good Girl Competition emerge as the female version of the annual Fieldays Rural Bachelor of the Year contest.
Variable speed water booster sets with wide range of 2, 3 and 4 multistage vertical electric pumps. Pump controlled by pressure switches with constant or variable speed operation. The range has been designed to supply water to users on an intermittent or variable basis using electric motors controlled by an electric panel. The wide range of available products includes fixed-speed single phase and three phase units. Water Supply Irrigation Heating, Ventilation & Air-conditioning Water supply for washing & heatig systems General Industry Fire-fighting systems
Outgro general manager Simon Barnes reiterated the sentiment expressed by Thompson adding, “Outgro Bio-Agricultural Limited is thrilled to be closely involved with this year’s New Zealand National Fieldays. Central Today | June/July 2010 | 17
Agribusiness | Down on the Farm
Behave or Beehive By Bridget Gourlay
Chemically ridden streams, dirty rivers and poisoned fish are threatening New Zealand’s clean and green image and the finger is being pointed squarely at the dairy industry.
The Green Party and other environmental groups are urging the government to start regulating dairy farmers after a report released in March revealed that 15 percent do not comply with the voluntary targets to minimise dairy farming’s effect on the environment. Accusations are also being levelled at the industry for meddling with statistics and not presenting the full picture. But Federated Farmers has hit back, saying the dairy industry is open and accountable and has never been more committed to reducing their impact on the environment. So the question is; Is it time for the government to regulate the dairy industry? And if so, how? Currently, a charter between Fonterra, the Ministers of Agriculture and the Environment and regional councils, called the ‘Dairying and Clean Streams Accord’ exists. It aims to minimise the negative impact of dairying on New Zealand’s water. It specifies voluntary targets to keep dairy cattle out of waterways, to treat farm effluent and to manage the use of fertilisers and other nutrients.
Damning report A damning snapshot report from the Dairying and Clean Streams Accord released in March showed 15 percent of dairy farmers did not comply with the voluntary targets in 2008-09, up from 12 percent in 2007-08. Forest and Bird Advocacy manager Kevin Hackwell says poor environmental management of dairy farms is a huge problem. He says discharge of dairy effluent and run-off nutrients from dairy farms has led to rivers and lakes that are not safe to swim in, clogged waterways due to flourishing algae levels and the destruction of some fish and other other freshwater species. The Agriculture Minister, David Carter says the March report was “unacceptable” and immediately issued a press release saying he was putting non-compliant dairy farmers on notice. “Regardless of whether this is because farmers don’t have the right tools, don’t know how to comply, or simply don’t care, behaviour has to change. Once we have supported the farmers who want to comply, we can look at whether existing regulation needs to be strengthened to target those remaining farmers who blatantly pollute.”
Is it time for the government to regulate the dairy industry? And if so, how?
Carter has not said whether he will be changing the standards from voluntary to compulsory. Green party co-leader Dr Russell Norman says Carter told the public last year the Government’s preference is for voluntary industry-led environmental management, but if the sector was not responsive, they would act. “It’s time for the Minister to make good on his promise. He is talking tough, but this means nothing without action. “It’s time for the Government to regulate the impact of dairy pollution with enforceable water quality standards. Voluntary measures, which rely on individual farmers to make improvements to their practices and report their own progress, are simply not enough of an incentive.” Forest and Bird is also calling for the Dairying and Clean Streams Accord to be tougher. It wants clearly defined timelines, targets and
18 | Central Today | June/July 2010
outcomes for improved water quality and established nation-wide benchmarks for assessing progress. The environmental group also want to strengthen enforcements so that poor performers face sanctions.
Non-compliance rise Federated Farmers Dairy chairperson Lachlan McKenzie says he’s also disappointed with the recent rise in non-compliance. “Yet while our news is disappointing, the dairy industry is fronting it publicly. Disclosing our environmental footprint, good or bad, is all about being open and accountable because our performance is out there for all to see. “Wouldn’t it be encouraging, for once, if the vast majority of dairy farmers actually got positive reinforcement for the big strides we’ve made. “We have one or two percent of recidivist bad fellas, those are the guys that need to be taught a lesson. You’ll always have one or two bad people in any community unfortunately.” The Greens and Forest and Bird say they are also concerned the dairy industry is damaging the environment to a larger extent than it is claimed. Norman says an earlier Clean Streams report claimed, based on self-reporting from farmers, that dairy cattle had been excluded from 70 percent of waterways in the Auckland region, when a report from the Auckland Regional Council, which randomly surveyed stream sites in the same area, found only 26 percent of dairying sites had an effective fence on both sides. Forest and Bird has also questioned the statistics used in the the report and believe the figures are unreliable as a benchmark of the dairy industry’s environmental performance. Lachlan McKenzie says there’s no need for central government to regulate the industry; improvements simply need to be made in the system that currently exists. He says some areas of the country had high compliance rates and others had low ones, and that largely comes down to regional councils. “One area where the compliance rate was high was where the service and the attitudes were good and where they worked through issues. The area where they have a focus on straight out prosecution without dialogue has a low compliance. They have a complete lack of understanding of what’s good, bad and ugly.”
Switched on McKenzie says environmental regulations being presented to farmers in clear, concise language would also help matters, but generally the industry is switched onto the problem. “The dairy industry is working hard as we speak on the very issue of standard and code on effluent management. In collaboration with DairyNZ, scientists, technical people, we’re all looking at developing solutions. The dairy industry has never been more focused or more co-ordinated in its endeavours to reduce their environmental footprint.” However, McKenzie says New Zealanders need to understand water quality will always be compromised to some degree by agriculture. “We need to look at what is achievable given that we want to have food production as the primary income for New Zealand.”
Agribusiness | Down on the Farm
looming on the horizon
By Melinda Collins
The nature of a competitive global market dictates that expecting a better result from doing what you’ve always done is a sure fire path to failure. Yet, according to a report by accounting business KPMG, our agriculture industry is in peril of doing exactly that. The KPMG Agribusiness Agenda report says New Zealand agriculture has as little as five years before large-scale intensive farming in South America, western China and central Asia will erode our cost competitiveness, undercutting our farm exports. “For many years the New Zealand agribusiness sector has traded on a belief that our commercial advantages were cheap land, abundant grass and plenty of water, making this the lowest cost place to grow food in the world,” the report says. “This is no longer true. Farm prices have risen significantly over the last 20 years, making land in New Zealand among the most expensive in the world.” The report observes the lower-cost land and labour, less complex regulatory regimes and geographic location of competing nations as capable of producing bulk commodity products in significant volumes at prices New Zealand couldn’t hope to compete with.
What’s on the horizon for New Zealand agriculture? In as little as five years will we still be reaping rewards or will we be reduced to chasing rainbows?
KPMG lead agribusiness partner Ian Proudfoot says this means now is the time to start revising industry structures, pratices and products to ensure the industry moves up the value chain in advance of commodity products from these nations hitting the international market. The report says New Zealand needs to invest heavily in science, technology and infrastructure to gain competitive advantage and government policy needs to be prioritised toward better investment, management and use of water resources. “Water is New Zealand’s liquid gold. Development of a policy framework that provides certainty over the access, quality and cost of water to agribusiness is important if the industry is to have the confidence to make long term investments in improving productivity and increasing its contribution to the New Zealand economy,” Proudfoot says. National co-ordination of water management strategy and investing in connected rural communities would also be essential to placing New Zealand at the forefront of the global agribusiness stage. Proudfoot noted that only 1.6 percent of the government’s proposed investment in broadband and fibre networks was targeted towards the 13.8 percent of the population living in rural communities. “Yet this group grows, processes and exports 66 percent of New Zealand’s merchandise exports.”
The report also says companies need to communicate with international clients to understand their future needs so they can adapt to them ahead of competitors. The report says this may mean New Zealand needs to adopt a national identification scheme to keep up with market demand. However, Federated Farmers associate spokesperson for water, Lachlan McKenzie says the report fails to illustrate details affecting farming on an individual scale. “We welcome KPMG’s statement that ‘farm businesses must be viable and profitable if farmers and growers are to continue to invest’, but this is another strategic helicopter overview.” While the report suggests the objective for New Zealand must be to protect our clean, green, “golden goose,” McKenzie says this is at odds with recent research done for New Zealand Trade and Enterprise in the United States.
Varied responses “We know Americans don’t respond to ‘clean green’ or sustainability, but do respond to quality, local craftmanship and community responsibility. Telling that story to our end consumers is what we need, instead of a hollow but lofty sounding slogan.” McKenzie says Federated Farmers would like to see similar research done in the markets KPMG correctly identifies as becoming increasingly important for our exporters. He says the report takes a Eurocentric view of the proposed National Animal Identification and Tracing Scheme, but says it fails to illustrate how this will enhance profitability with such a sizeable cost input necessary. While McKenzie agrees with KPMG that the Emissions Trading Scheme will increase the volatility and costs of agribusinesses, he says the report gives few indications on how to improve profitability on an individual farm scale. “Over the past decade, inflation on farms has been well ahead of the Consumer Price Index. A Ministry of Agriculture and Forestry report (Situation and Outlook for New Zealand Agriculture and Forestry) shows that farmers retain just 6.2 cents out of every dollar generated from New Zealand agricultural exports. Unfortunately KPMG isn’t providing many practical hints on how that will lift.” But there are points on which the pair agree. “Where I think KPMG is spot on, is in their support for our push to get a larger slice of the funding package for rural broadband and the need to future proof the economy by way of water storage. We have the annualised rainfall but we don’t store it to use over drier months,” McKenzie says. “Similarly with research and development (R&D), it is Federated Farmers policy for New Zealand to have an R&D spend equivalent to three percent of gross domestic product by 2029,” he concludes. Central Today | June/July 2010 | 19
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Agribusiness | Hansa Products
A R S
Green chip If you take a man with vision, drive and industrial expertise and put him in a honey shed, he will grow a business. This is exactly the case with Manfred Vogel, co-owner and operator of Hansa Products. Designing and manufacturing brush chippers for garden enthusiasts, lifestyle block owners, arborists, councils, contractors and the New Zealand market in general, Hansa Products was born from humble beginnings. Today, its precision engineered brush chippers are among those heralded as the best in the business.
The Hansa Products team (from left), Manfred, Richard, Craig, Simon and Martin, standing by a C60 model Right: Hansa brush chippers and shredders, on display at a trade show
Living by its motto “Born to chip; built to last,” Hansa Products is celebrating 30 years in 2010.
A chip off the old block It was a sweet beginning for Hansa Products. Founded in a honey shed on the outskirts of Hamilton in 1980, the business has undoubtedly outgrown the confines of its original place of establishment, but has retained the core values and specialist expertise which gave it life in the first place. A German immigrant’s response to the growing need for mulching machinery in the 1980s, Hansa Products has been built on a foundation of industrial knowledge. After settling here in 1977, Manfred Vogel drew on his ingenuity and mechanical engineering expertise to formulate suitable machinery for gardeners and orchardists
who were recognising the organic value of recycling waste. While much has changed for the business since its inception with regard to its professional capacity and premise, the company’s core asset, its owner, still remains. New lifeblood has also been introduced into the business mix with Manfred Vogel’s son, Martin Vogel, succeeding his father as managing director. It’s an “M&M” combo, you could say of the Vogel team. Following in the footsteps of his father and earning a mechanical engineering degree, Martin Vogel has a natural gift of the gab for business management and a pre-disposition for the trade inherited from his father. Hansa Products is a business where the theory “looks can be deceiving” is more than apt. Because while the business is a highly capable and competitive entity, the Vogel’s are in the company of just a small team of welders, assemblers and subcontractors who supply specific material when required. “We’re a small team, but we’re efficient,” Martin Vogel says.
The Hansa difference As a small business participating in a niche market, Hansa Products has gained professional momentum with the growing consumer trend to engage more environmentally friendly practises. “In the past, burning and dumping rubbish was the general way of thinking, but this has changed over the course of time as more people become conscious about the environmental effects of these practises,” Vogel explains.
“C9 Chipper was delivered today in top condition – well packed, assembled fine and started without any problems. I have to say I am more than highly impressed with the standard of construction and engineering. The intention was to purchase a machine that was built to do the job properly without stuff breaking and it looks like we have more than succeeded!” Ross, Otaki Hansa C9s, ready for delivery to Hirepool
19 Grasslands Pl, Hamilton Ph: 07 8476768 www.hansaproducts.co.nz 20 | Central Today | June/July 2010
Agribusiness | Hansa Products
investment Throughout its operation, Hansa Products has endeavoured to keep pace with evolving consumer wants and needs. It has developed a simple and logical cutting principle which Vogel credits as a key ingredient to the efficiency of the machinery. “It’s like a big bean slicer,” he offers as a humourous simplification of the process. This innovative cutting system is part of the company’s commitment to manufacturing the best quality and functioning machinery. “Manufacturing the best is particularly important when you are in competition with mass produced products and market importers.” On the research and development front, Manfred Vogel is still actively involved in the conceptualisation of new generation machinery and Martin Vogel says the small structure of the company is advantageous because innovation can be brought to market rapidly. “Developing new products is a continuous process for us and our business size is an advantage in this respect, because once we think of something, we can set about getting it into the market very quickly,” he explains. Working with the best technology and industry experts including reputable steel fabrication firm Stainless Design, Vogel says the benefits attached to Hansa Product’s smaller machinery lies in their unmatched features, which are a hybrid of Hansa and sub-contracted expertise. Vogel says high discharge and self-feeding attributes integrated into the brush chippers offer a combination of functionality and quality for consumers. In addition, the company only utilises reputable Honda engines in its machinery and sources quality wheels, pulleys and bearings for the machinery construction.
“This is the best chipper for its size, initial purchase price, weight, day to day running cost, that we have ever used — bar none.... You’ve made a terrific contribution to our business and our customers. We look forward to continued business for years to come.” Brett Soutar, director Short Back n Sides Limited
With smaller products sold to dealerships and larger machines generally sold direct to the public, Hansa Products also has machinery manufactured under licence in Australia. But no matter the manufacture location, Hansa products are precision engineered and built to specification.
The big 30 Although Vogel and his father are humble about the success and resilience of the business, their attitude is that customer testimonials do the talking, along with the operation’s longevity. This year marks 30 years of Hansa Products serving the New Zealand market and despite the company having no concrete plans for celebration, the year will be event-filled. Hansa Products will be releasing a new generation of machinery in 2010 and while these products will retain the fundamental
TRANSDIESEL
The C16 in action, and being assembled at the Hamilton premises
features of former models, they will have new aesthetic appeal and be manufactured more cost efficiently. “It’s about keeping ahead in design and having a fresh start with intellectual property — something which is really important in our market,” Vogel says. This new generation machinery will include a new 12 inch log capacity, 108 horsepower diesel-powered brush chipper, which will eclipse Hansa’s existing nine inch machinery. “We are looking to have this on the market in the next 6-12 months,” Vogel says. “When you are developing a new product like this you have to build a prototype first
and test it for several months before you can look at marketing it. We are in this stage at the moment.” The 2010 New Zealand National Agricultural Fieldays event will also be a significant marketing opportunity for the business. Running from June 16-19 at Mystery Creek, the event will give Hansa Products the opportunity to exhibit its range. “Because all of our competitors are there, customers can actually directly compare our products and make a decision that’s right for them. It is a great opportunity for customers to see our product in the flesh.” Feature continues on next page >>
Waikato Bearings Limited LTD
®
Diesel engines and transmission specialists Proud to be associated with Hansa Products and Congratulate them on their 30th Anniversary 533 Halswell Junction Road, Christchurch | Ph. 03 349 8738 Fax. 03 349 8384 Email. markk@transdiesel.co.nz | www.transdiesel.co.nz
Waikato Bearings Ltd, based in Hamilton, are bearing specialists and offer a wide range of products and services.
• Bearings • Oil Seals • Lubrication
• Power Transmission • Maintenance Tools • Industrial adhesives
Waikato Bearings Ltd are pleased to be associated with Hansa Products and congratulate them on their 30th Anniversary. Phone 07 850 6155. 11 Northway Street, Te Rapa, Hamilton
www.waikatobearings.co.nz
Central Today | June/July 2010 | 21
Agribusiness | Hansa Products
Two domestic models (left), the C9 and the C6, set up and ready to go in the home garden, plus the commercial model C30 (right), ready for delivery
domestic
commercial
C4 Brush Chipper with 4HP Honda engine
This machine has been designed and priced to suit domestic gardens. Features: Easy starting Capacity of 40mm branch diameter Discharge out the side directly back to your garden or stockpile Easy to transport 12 month warranty
C6 Brush Chipper with 6.5HP Honda engine
This machine has been designed and priced to suit large domestic gardens and lifestyle blocks. Features: One in-feed chute with large opening at convenient operating height Self-feeding action, capacity of 70mm branches Easy starting with manual clutch and twin belt drive Easy to transport, well balanced on large pneumatic wheels 12 month warranty
C9 Brush Chipper with 9HP Honda engine
This machine is ideal for lifestyle block owners, small to medium horticultural businesses, orchards, nurseries, farms, hire centres, school grounds and parks. Features: Self-feeding action, 80-90mm capacity Easy starting with manual clutch and twin belt drive High discharge into trailer, wheelbarrow or stockpile Petrol powered or tractor mounted PTO driven 12 month warranty
C16 Brush Chipper This model is suitable for contractors, parks and reserves, local bodies, orchards, lifestyle blocks and farms. Features: Road towable or tractor mounted PTO driven Beltdrive for smooth running and protection against shock load Self-feeding cutting action Rotating outlet chute for 360 degree discharge with deflector 12 month warranty
C30 Brush Chipper
Designed for professional use by arborists, parks and reserves, local bodies, orchards and hire centres. Features: Wide infeed opening (6 x 12) Diesel, petrol or tractor mounted options Powerful hydraulic feed Auto sensor feed controls feedroller to suit engine RPM 12 month warranty
C60 Brush Chipper
Designed for professional use by arborists, parks and reserves, local bodies, orchards and hire centres. Features: Wide infeed opening (9 x 15) Outlet 360 degree rotating chute with deflector and positive locking system Powered by 65HP Lombardini diesel Hydraulic feed with automatic feed including auto reverse to clear blockages 12 month warranty
Hansa’s key products
AUTO TRAIL LTD Wholesale Supplies of ALL AUTOMOTIVE PARTS Specialists in TRAILER COMPONENTS TOOLS AUTO ELECTRICAL TRACTOR SPARES TOTAL OILS AND LUBRICANTS
Ph 07 847 8908 Fax 07 847 1478
admin@autotrail.co.nz www.autotrail.co.nz 22 | Central Today | June/July 2010
Surface COATINGS Celebrating 65 years
POWDER COATING Electroplating Electro Galvanising Metal Polishing
Proud to be associated with Hansa Products and Congratulate them on their 30th Anniversary
“In its (the Hansa’s) first trial, it fulfilled its promise admirably and feels and operates like a quality product.” Chris, Waikanae
Choose Hansa So, besides the innovative nature of the machinery, why choose Hansa Products? “Because they are made very, very well,” Vogel says with pride. Thirty years of solid operation is certainly testament to that. In fact, Vogel jokes that their durability and quality is almost a double-edged sword, because the machinery lasts so long and does not often need replacing, means repeat business can be a case of few and far between. Vogel says most business sales are through customer referrals, which confirms that people trust the Hansa Product brand. “Most of our sales are through word-of-mouth and of course, in time, machinery becomes obsolete, so people will replace what they have. “A lot of repeat business is also through commercial businesses like Hirepool.” With its 30th birthday on the horizon, Vogel says he and his father’s appreciation of how far the business has come is not taken for granted. “We have enjoyed seeing the business grow and to watch it move in the direction it is going. There is so much satisfaction for us as we do the whole process ourselves from the development to the manufacturing, sales and receipt of feedback. “For the future, we will continue to focus on core quality which is so important when you are competing in a world market. “It’s not about getting all the customers because you won’t always be able to. It’s about retaining a marketshare and playing your part in what is really a niche market.”
Ph. 07 849 2676
Fax 07 849 4387 24-26 Vickery Street, Hamilton Email: admin@fmsc.co.nz www.fmsc.co.nz
FORLONG & MAISEY GROUP
Hansa Products PO Box 16-037, Glenview Hamilton 3245 T (07) 847 6768 F (07) 847 6768 E martin@hansaproducts.co.nz www.hansaproducts.co.nz
— Advertising Feature
Agribusiness | Totalspan Manawatu
The
TOTALSPAN commercial range Totalspan, a national leader in high quality, durable steel buildings, offers a wide range of commercial designs created for Kiwi businesses. The unique structure of Totalspan’s open-plan design, coupled with the strength of New Zealand steel, provides unparalleled functionality, flexibility and style. Tailored specifically to the needs of any business, these buildings offer a nearly limitless range of options — and every Totalspan building comes with a 25-year structural guarantee.
Working with Totalspan in Manawatu In Totalspan Manawatu, owner Warwick Dunn says his team can manage every stage of the development process, from planning, design and consents, to the full build and fit-out process. “Our local representatives also provide comprehensive after-care service for every building and can advise on the development or upgrade of existing buildings.” Totalspan Manawatu has a network of experienced builders and project managers, expert in developing to local conditions. He says the company services the whole of the Manawatu, as well as Dannevirke and Waiouru areas.
With an extensive series of designs and sizes — up to and beyond a massive 24-metre span — Totalspan offers real choice for commercial buildings. Whether it’s a workshop, showroom, offices, warehousing or an aircraft hanger, the unique design and structure of the Totalspan open-span frame provides maximum workspace and total flexibility for any kind of operation. Each design can be tailored to any demand, with a wide variety of stud heights, door
options and partitions, as well as choices of display windows, lighting, ventilation and cabling to create a full fit-out package.
Built-in strength Totalspan’s expert project team can also create a total building design, specifically tailored to individual needs. The strength and value of the Totalspan range is built into the fabric of every commercial building. Made from high-quality galvanised steel, Totalspan’s unique framing structure offers not only more space, but also more strength, in a long-lasting and good looking building. Greater durability comes from the top down in Totalspan buildings, with a 15-degree roof pitch giving increased structural strength, as well as more usable height. Construction is quick and easy, with surface mounted frames and wide roll-formed roof and wall cladding making the process efficient and cost effective. Every fitting and design feature has been carefully designed to stand up to New Zealand conditions — making Totalspan’s commercial buildings the complete high-performance package in any working environment.
Made right here Each Totalspan commercial building is made using locally sourced materials. Every structural building component, as well as steel cladding and roofing, is engineered to precise specifications at Totalspan’s Christchurch factory. Totalspan’s in-house experts continuously test and refine its buildings, ensuring every product meets its rigorous quality standards. To choose the building that’s right for your business, or create the design that suits your operation, contact the Totalspan Manawatu team. Totalspan Manawatu 155 Flygers Lines RD5 Palmerston North 4478 T (06) 355 5119 F (06) 355 5319 E manawatu@totalspan.co.nz www.totalspan.co.nz — Advertising Feature
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Suppliers to Totalspan Manawatu Central Today | June/July 2010 | 23
Agribusiness | Milfos International
Smart A bit of old-fashioned, quickfire Q&A is a tried and tested methodology for ascertaining whether a business has its finger right on the professional pulse. Milfos International is a privately owned, independently operated, leading New Zealand company designing and manufacturing its own proprietary product range for the primary sector. The Milfos responses to the quick questions are like the organisation itself — smart, sharp and solution oriented. Q: How do you ensure quality? A: You make it your own priority Q: How do you make life easier? A: Surround yourself with the right team Q: How do you achieve your goals? A: Plan for success, adopt new thinking and push the boundaries Q: How do you achieve better milking performance? A: Engineer innovative solutions From its in-house training programme for staff, to extensive research and development and after-sales support, Milfos is a company
that meshes expertise with efficiency to deliver tangible results to clients. With core competencies including stainless steel, mild steel, electronics and plastics, Milfos’ diverse range is distributed throughout New Zealand and markets worldwide, including Asia, America, Europe and Africa. Delivering clients arguably the best “end to end” solution on the market today, Milfos offers a comprehensive range of milking, stalling, dairy automation and cooling solutions, along with service and scheduled maintenance options to compliment its product programme. Led by longstanding managing director Jamie Mikkelson, the company is in the hands of five directors in total — one is independent and the other four are actively involved with all elements of the business. Milfos opened in 1987 and grew from a business which employed seven staff. The company today stands tall in a competitive industry and the staff numbers have climbed to a network of 90 intensively trained and dedicated employees. The Milfos vision is: “To be the essential partner enabling sustainable value creation through innovation and reliability.”
• Automotive • Agriculture
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The Leading Plastics Supplier to the Dairy Industry.
24 | Central Today | June/July 2010
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Proud to support Milfos International
Agribusiness | Milfos International
A smart move As a company that is unwavering in its commitment to improving services and products, the completion of new premises on Quail Place, sitting off Kahikatea Drive, has marked an important milestone for Milfos. “Our original site was limiting our production capacity and we we were having to subcontract a lot of componentry work out, which means quality standards were taken out of our control. To maintain our high level of efficiency and standards, we knew we needed new premises to increase our capacity and streamline our operation,” Mikkelson explains. While looking for a potentially bigger site, Milfos identified the best location in a vacant block of land. And while the directors originally had the intention to lease a pre-constructed facility, finding a building that was the right size and could fit the existing disciplines proved difficult. In 2008, Milfos purchased the land and commenced the design and construction of a manufacturing operation which could accommodate its diversity and growth. Included in the completed design is a unique training facility for upskilling dealers and technicians and the new sites covers all warehousing, logistics and manufacturing operations.
“The new premises represent a multimillion dollar investment by stakeholders and a significant investment in the future of Agritech in New Zealand,” Mikkelson says. As a core systematic element of the Milfos operation, the lean manufacturing processes implemented by the business are supported by these new facilities. “Lean manufacturing is critical to our business, particularly as we are working on between seven and ten projects each week. Everything has to be finely tuned and what we have set up systematically is very efficient,” Mikkelson says.
The Milfos way Milfos operates according to the mission statement: “Our goal is to improve productivity and profits for our customers. We do this as a team by delivering superior solutions using innovative technologies, engineering excellence and providing quality service.” Support and servicing is at the heart of its customers’ plant efficiency and Milfos works to uphold and employ a distinct set of values: We listen to our customers and strive to offer them real value by providing innovative solutions
We believe winning is important and have a passion for excellence We have self confidence, work as a team, embrace change and new thinking We act with loyalty, honesty and always with absolute integrity. In its recognition of the importance of offering integrated and long-term solutions, Milfos has created a scheduled maintenance plan and programme called iCare, for the timely service and replacement of parts in clients’ systems. The programme incorporates seasonal ISO tests, platform checks if applicable, hygiene checks, cooler inspections, plant washes and the replacement of parts in accordance with guidelines. Aside from its iCare plans, Milfos can provide specialised supply and service agreements and for corporate farming groups and bulk buying
syndicates, develop a customised solution to streamline purchasing and supply requirements.
Unlocking potential One key to unlocking a business’ potential is through the art of communication. Milfos recognises and understands the importance of maintaining dialogue between management and staff and has an inclusive policy in place to ensure staff remain fully informed and the relevant communication channels are observed. “In business it is critical to have a very efficient communication platform which starts right back at the daily function level,” Mikkelson maintains. “At Milfos, we have daily start-up meetings and cross-functional meetings where divisions meet to talk about daily production, health and safety or parts shortage issues. Communication is all about making sure your system is well lubricated and working well.” Feature continues on next page >>
Proudly supporting Milfos International and the
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MILFOS choose to use Stainless Design to benefit from our wide variety of ‘state-of-the-art’ processes. It’s an association we’re grateful for and very proud of. Congratulations on the opening of your exciting new facility.
Central Today | June/July 2010 | 25
Agribusiness | Milfos International
Participating in a competitive environment, Milfos is constantly striving to maintain effective communication relationships, as well as optimising its products and process. In recognition of ever-changing industrial requirements, Milfos places significant emphasis on research and development (R&D) activity. “We have a very active R&D programme at Milfos and we always have. Each of our four directors, myself included, are very focused on investing back into the business. We understand the importance of networking well with our solution providers and have very good customers who are involved with our product development programmes through focus groups,” Mikkelson says.
Fieldays The New Zealand National Agricultural Fieldays is the largest agribusiness event in the southern hemisphere. With 130,000 national and international visitors expected from 38 countries across the globe for 2010, Fieldays is a significant networking opportunity and has a regular spot on the Milfos event calendar. While Mikkelson concedes last year’s enquiries generated from the Milfos presence were lighter in comparison to previous years, he says the company did transact some of these enquiries
and will be looking forward to establishing new business connections this year. “From a brand perspective and in terms of showcasing your product, it’s important to be at Fieldays. Farmers are very good at retaining information, so it is important to be there because they will remember you and your products. “I also really enjoy this event because I only talk to many of our customers over the phone, but Fieldays gives me the opportunity to meet them in person. For familiarity with our clients, we take the same site each year at Fieldays.” At Fieldays 2010, Milfos will be introducing a new and innovative product to consumers — the iMessageboard. This system has been designed for farmers when they are milking cows. When a cow comes in for milking, the iMessageBoard provides the operator feedback, letting them know if the cow has any particular ailments or health complications.
Proud supplier of Corporate Signage for
Allfast Solutions are New Zealand Owned and Operated.
MILFOS INTERNATIONAL LTD
Over 80 years of experience in the Fastener Industry. For further information about Allfast Solutions, contact www.allfastsolutions.co.nz • Bolts & Nuts • Screws • Hinges • Nails • Rivets • Drills • Threaded Rod • Construction Fasteners • Washers • Stainless Fasteners
• • • • • • •
Labels Vehicle Graphics Digital Printing Screen Printing Corporate imaging Project management Point of Sale
Future visions While Mikkelson acknowledges 2009 was a very challenging year for many businesses, Milfos included, he says as a point of irony, the first six months of the financial year for Milfos were actually a record. “Although the first six months were a record, in the second half of 2009, things were definitely slower for us. But we took this time to achieve some of the goals we had and from our perspective, the timing was perfect because we relocated during the quiet period.” With the economy in recovery mode, Mikkelson says Milfos will be looking to keep pace with the evolving technological market in the farming sector and educating consumers on the potential of this technology. Emphasis on technological education is essential if farmers are to unlock the value of existing and emerging technology.
www.admarkprint.co.nz
Proud to be associated with Milfos International
A collar is worn by the cow and continually records the cow’s activity and how much she is eating which is also displayed on the imessageBoard. “This is valuable information to have, as it all links up to the production of the cow,” Mikkelson explains. For Fieldays 2010, Milfos will also be ranging pre-existing products with technological improvements and extensions to existing product programmes will also be available.
Proud suppliers to
Milfos International After more than 50 years servicing the trade, J. A. Russell Ltd have the people, the knowledge and the experience to provide you with what you want, when you want it and at the most competitive rate. 37 conveniently placed branches from Kaitaia to Taupo plus 18 branches trading in the South Island as Radcliffe Electrical.
“At Milfos, we will be very focused on not only selling our products, but training and educating our customers on how to use these products and unlock their entire value. Where our focus has been and will be for the future, is creating devices for farms which collect data for a whole farm view.” Milfos International PO Box 5578, Frankton Hamilton 3242 T (07) 843 1780 F (07) 843 1779 E hannah.paterson@milfos.com www.milfos.com — Advertising Feature
www.jarussell.co.nz
Commercial & Residential Building
Brevini NZ Ltd - leaders in hydraulic and electric power transmission, would like to congratulate Milfos for their success to date, that warrants investment in such a fine new building for the future. We are proud to call ourselves a business partner to Milfos and look forward to continuing to power the platforms.
developments ltd building beyond
Ph. 07 849 9997 Fax. 07 849 9996 | Mobile 021 823 653
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Proud to be associated with Milfos 26 | Central Today | June/July 2010
9 Bishop Croke Place East Tamaki, Auckland - 09 250 0050 Waikato - 027 438 5638 BOP - 027 440 5000 Lower N.I 027 448 8492 Christchurch - 03 338 3916 Web.www.brevini.co.nz Email. info@brevini.co.nz
Agribusiness | Don Chapman Builders
Rural move reaps rewards Many hold on to ambitions until the moment for action has passed them by, leaving them wondering what could have been. This isn’t the story of Don Chapman though, because when he saw his opportunity to achieve professional autonomy in 1988, he unrelentingly went in pursuit of it. As the owner and operator of Don Chapman Builders Limited and its subsidiary Chapman Dairy, formed in 2008, Chapman is every bit the self-made man; hard working, humble, humorous and grounded. Don Chapman Builders provides a wide range of ancillary services including design and plan drawing for residential, industrial and commercial projects. Its dairy division also specialises in the construction of a wide range of farm dairy parlours and farm buildings. Having been involved in dairy farm construction throughout his early career, Chapman says his business’ gravitation towards this type of work has been a natural transition from his professional background. Working from Morrinsville and serving the Waikato and neighbouring areas, Don Chapman Builders will often have six or seven projects running simultaneously at any given time. In 2009, the Chapman Dairy division completed the construction of 40 farm dairies, including a major dairy conversion for Carter Holt Harvey. This project included the construction of 22 dairies for Carter Holt, including herringbone milking sheds and rotary milking parlours. The same year, AgResearch, New Zealand’s
largest Crown Research Institute, contracted the business to complete a research dairy parlour which included rotary platforms, a specialist animal handling area and a sampling area. At present, Don Chapman Builders is nearing the completion of two 54-bale rotary shed projects. The company also has several herringbone dairies under way and is finishing initial construction for a 50-bale rotary and feed pad. Aside from its commitment to the dairy industry, the company also undertakes various residential projects and is currently building a three bedroom, double garage bungalow on two acres in a rural-subdivision. Broadening its business horizons, the company also has an offshore presence. In alliance with a company in Ireland, four dairy farms have been built under the Chapman Dairy design and there is also a licenced agent representing the company in the United Kingdom.
In response to questions about his company’s enduring success, Chapman stays true to his humble roots, chuckling “I’m not sure what the key is. We’ve got good staff employed to help us and our planning, time and quality service is also very important to our business.”
Don Chapman Builders Limited PO Box 309 Morrinsville 3304 T (07) 889 6168 F (07) 889 7983
— Advertising Feature
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As a Registered Master Builder with 40 years of building under its business belt, Don Chapman Builders is renowned for its attention to detail and uncompromising commitment to quality. Priding itself on unrivalled workmanship, this is a company that has the right experience, staff and skill to provide customers with a costeffective and professional construction job.
PROUD SUPPLIERS OF ROLLER AND ROLLER SHUTTER DOORS TO DON CHAPMAN BUILDERS LTD ROLLER DOORS NORTHERN LTD PH: 09 297-7714 FAX:09 297-7715 E-MAIL: info@rdn.co.nz www.rdn.co.nz
Specialising in Metal Roofing Commercial and Domestic Specialising in Metal Roofing Owen Barlow Roofing Limited Commercial and Domestic
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L E A D I N G M A N U FA C T U R E R S O F I N S U L AT E D PA N E L S
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D
• FARM DAIRIES • RESIDENTIAL HOUSING • ALTERATIONS
57 Anderson Street, P. O Box 309, Morrinsville Ph: (07) 889 - 6168 Fax: (07) 889 - 7983 dcb@ihug.co.nz
• COMMERCIAL BUILDINGS • COOLSTORES Central Today | June/July 2010 | 27
Agribusiness | James & Son NZ
At A Glance | Adobe Homes
Healthy homes If you want a new home or renovation that combines a lower carbon footprint with savings on energy bills, look no further than Adobe Homes. Adobe Homes offers a range of green options with its showhome a perfect example of what the company can do to your house or building.
he insulation is taken all the way to the outside footing and contains 70 percent recycled glass wool silencer. Adobe Homes project manager Pete Pearson says the small size and the passion of the Adobe Homes staff is what sets the compay apart from other building businesses. “Too many people believe a building project is stressful and takes a lot of time out of your day. “We try to make the process as easy as possible, part of our philosophy is getting the customer to buy into project,” he says.
?
The way they do that is by making sure the customer always knows what’s going on. “Communication is the big key. We have a lot more
Need feed Trawling the breweries of Victorian London asking for barley cast-offs might sound like a strange start for a stock feeding company now operating in New Zealand, but those humble beginnings will be celebrated in December when James & Son commemorates its 160th anniversary. In the UK in 1850, Mr James and his son began supplying farmers with brewer grain for their livestock, and the company has grown exponentially from there. A New Zealand branch was opened in Hastings in 2003 and now has 10 employees. These days, in the UK and in New Zealand, James & Son is well known for its diverse range of natural, co-product stock-feeds. Livestock farmers throughout the country use co-products from James & Son as succulent nutritious supplements to their grazed pasture. In New Zealand, James & Son use brewers grains from DB and Lion breweries, as well as products from vegetable markets and table manufacturing plants to create its stock-feeds.
Chief operating officer Greg Pillar says the mixes available are very diverse, ranging from barley, to sunflower oils to soyabeans and they are all extremely good for the health of the farmer’s livestock. “We complement the New Zealand farming system very well. A lot of our products will fill the gap nutritionally when grass in short supply.” Pillar says the company’s size and history makes it a reliable business partner to its customers.
“We’re able to supply any stock feed you can imagine, we can source just about anything. With our contacts in Argentina, Australia, the U.K, our long history and our great resources of information, we really do have a great supplier base for our clients.”
The showhome uses plantation-grown New Zealand pine, which is hardened and impregnated with 100 percent organic colour. This means that the wood isn’t virgin timber and its processing helped the local economy.
James & Son in New Zealand plan on continually expanding in the foreseeable future. The company is setting up a new mixing site in Woodville and is working on bringing more complete mixes to the market.
A 2000 litre rainwater collection tank with an automatic irrigation sprinkler system is another environmentally friendly feature. The collected water goes to the garden, reducing water usage from the mains supply.
James & Son NZ PO Box 863 Hastings T 0800 673 333 F (06) 873 3665 E greg@jamesandson.co.nz www.jamesandson.co.nz
Proper insulation is another must-have for a warm home. In many houses only the main living areas and master bedroom are insulated. In the showhome all rooms, including the garage and the floor between the two storeys is insulated.
communication with the guys on site and the customer, instead of the customer just talking to someone from the office who doesn’t really know what’s going on. “The feedback we’ve received from clients has been phenomenal, we’ve built a lot of trust because of that it.”
Adobe Homes PO Box 11240 Palm Beach Papamoa 3003 T (07) 542 0094 F (07) 542 0296 E p@adobehomes.co.nz www.adobehomes.co.nz
— Advertising Feature
— Advertising Feature
Mt. Maunganui
Engineering 2000 • Nationwide Service with 80 Truck & Trailer Units • Professional service by friendly qualified staff and drivers • Experienced carriers of Palm Kernel, Brewers Grain, Stockfood, Grain, Fertiliser, Lime, Aggregate, Sand • Proud to be James & Son’s North Island preferred carrier For personal friendly assistance and enquiries, please phone Peter on (027) 499 3370 or Fiona on (027) 471 4350
Ph. 07 856 9149 | E. sales@regalhaulage.co.nz | W. www.regalhaulage.co.nz 28 | Central Today | June/July 2010
LTD
• Manufacturing • Tank Fabrication • Maintenance
• Structural • Fitting • Pipework
Phone. 07 575 9339 | Fax. 07 575 2022 | Mobile. 0274 987 021 Email. rick@mounteng.co.nz | www.mounteng.co.nz
Proud to be associated with Adobe Homes
Sustainability in Business | Transpacific
Transpacific Industries Group is one of the leading providers of comprehensive waste and environmental services in Australia and New Zealand.
specialised treatment systems. Each system is carefully monitored with the treated waste independently tested for compliance to strict international standards before final disposal.
Transpacific Technical Services accepts a wide range of wastes for treatment and disposal, including:
Specialising in liquid, hazardous and solid waste management markets, the comprehensive services offered by Transpacific are built on a platform of resource recovery, responsible waste management and transport solutions and providing complete waste management solutions to customers.
Environment Initiative: Transpacific Technical Services Plamerston North manages customers and feed-stock for the Palmerston North City Council (PNCC) Biodigesters, selecting suitable waste for methane production which runs the PNCC’s electricity co-generation plant.
• Acids/Alkalis • Oil/water mixes • Inorganic chemicals and compounds • Spent caustic waste • Metal bearing wastes • Organic and food waste (grease traps) • Sewerage and septic waste • Dairy effluent • Pesticide disposal and intractable waste export • Wash waters/ sumps • Photographic chemical wastes • Organic chemicals • Laboratory chemicals • Contaminated soils • Solvent refining and sales • Waste solvents • Vacuum tanker transfers • Paint waste • Expired and customs product destruction
Transpacific is acknowledged as a market leader and has established a strong presence in Australia and New Zealand.
Transpacific Industries Group In New Zealand, Transpacific Industries Group (NZ) Limited specialises in solid waste management and recycling, liquid waste collection and treatment, industrial cleaning, used oil collection and recycling and environmental services Transpacific’s competitive advantage lies in its wide range of packaged sustainable environmental solutions to support client recommendations. Transpacific will work with you to develop cost-effective solutions and to ensure services are provided in a manner that supports your professional integrity. Transpacific has the ability to tailor its services accordingly to meet the needs of each customer group and will provide a wide range of services aligned to the requirements of integrated total waste management and facility management services. Transpacific is responsible for six primary operating divisions which constitute an integrated business network. These divisions are: • • • • • •
Liquid and Hazardous Waste Solid Waste Recycling Services Industrial Services Energy Commercial Vehicles
Transpacific Technical Services Transpacific Technical Services specialises in the responsible disposal of all waste not acceptable to landfill or trade-waste. With an emphasis on providing the best environmental practise, Transpacific Technical Services offers the most comprehensive treatment and disposal facilities and services for liquid and hazardous waste in New Zealand. Transpacific Technical Services provides uncompromising attention to detail regarding the safe handling, transportation and disposal of liquid and hazardous materials. Transpacific Technical Services has bulk and
Transpacific Technical Services include: • Liquid and hazardous waste treatment and disposal - Comprehensive treatment and disposal facilities. Total hazardous waste management service • Transport - Specialised vacuum tanker and packaged collection vehicles with dangerous goods documentation and labeling • Confined space work and tank cleaning - Specialised cleaning services for confined spaces • Recycling - Solvent toll refining and oil recycling • Solvent sales - Pure blended virgin solvents, recycled solvent blends • Laboratory chemicals • Pesticide/intractable material disposal • Safety and quality documentation - Waste audits, procedure advice and destruction certificates
Don’t know how to dispose of these?
Transpacific Technical Services specialises in the collection of: • • • • • • • • • • • •
Laboratory chemicals Bulk industrial waste Drum and packaged waste Flammable solvent waste Contaminated material Spent acid and caustic Used oils and grease Heavy sludges, including oil and tar Heavy metals Contaminated soils Batteries Agricultural chemicals
The inspection and servicing of: • • • • •
Drains and pits Septic tanks Grease traps Tanks and in-ground pits Interceptors
The recycling of: • Paints • Solvents and thinners • Waste oils
Transpacific Technical Services target industries include: • Printing and lithographic industry suppliers and manufacturers • Metal treatment and metal protection • Timber treatment, timber/wood processing and wood products manufacture • Petroleum industry • Protective coatings, paint, resins and emulsion manufacture and usage • Liquid organic waste (food, sewage, grease, fat, proteins, debris and grit) • Chemical manufacturing, packaging and usage • Computers and electronics • Food ingredients, food processing, packaging and distribution • Customs controlled destruction • Laboratories, schools, universities and medical institutions • Marine
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Transpacific Technical Services T 0800 835 645 Transpacific Industries Group (NZ) Ltd. T 0800 697 329 W www.transpac.co.nz — Advertising Feature
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Central Today | June/July 2010 | 29
Living | Today
Travel style Known as the pearl of the Andaman Sea, Phuket is what you picture when you think of a tropical holiday paradise — white sand beaches, emerald bays and swaying palm trees. Awaken to an island sea view as the light spills into your room and across your bed.
new style icons
lifestyles
Perched on a secluded headland at the southern corner of Patong, Phuket’s most popular beach and surrounded by 28 hectares of forest, is Amari Coral Beach, where you can start each day immersed in the natural beauty of Phuket. With first-class restaurants, affordable luxury accommodation and a quiet private beach, this island resort hotel offers a holiday experience like no other. Indulge in some well-deserved relaxation at the renowned Sivara Spa, offering a wide range of spa treatments and massages. Live it up with some of the best scuba diving and snorkelling in the Gulf of Thailand as well as the most happening nightlife. The superb service and idyllic setting of this luxurious resort will provide guests with a truly unforgettable holiday experience. Available: For more information, www. amari.com RRP: From $NZ270 a day
Relax in style Noosa chair Kiwis enjoy a relaxed attitude to living, spending time chilling out on the deck or in the garden so why not create an outdoor space as inviting and comfortable as your living room? This ultimate pool-side lounger lets you feel like you’re on holiday at home. The large 1.8 metre wide Noosa daybed by Coastal Design features a unique solid woven canopy hood that reclines back when you want the full sun, or leave it up for shelter, privacy and UV protection. It is available in dark chocolate or beige rattan, fully weatherproof with rust resistant powder coated aluminium frames, designed and guaranteed for the New Zealand outdoors all year round. Available: Coastal Design Co, order online at www.coastaldesign.co.nz, phone (09) 300 7250. RRP: $4990, includes Sunbrella marine squabs, throw cushions and canopy top
Wine style Sacred Hill 2008 Halo ’Hawke’s Bay Chardonnay Sacred Hill has released its 2008 Halo Hawke’s Bay Chardonnay to an exciting response. It delivers captivating aromas of peach and rock melon with subtle nuances of nutty oak. The palate is mineral and tight with generous stone fruit flavours confined with a fine chalky texture. This is an elegant and long drop with ripe peach flavours which linger on to a clean and dry finish. Only a limited number of each varietal of the Halo range is produced each year. Available: From premium wine outlets, restaurants and bars. RRP: $25.90
Designer style Phoenix Pendant When it comes to exquisite baubles of captivating beauty, the name on everyone’s lips is Robinson Designer Goldsmith on Auckland’s North Shore. The jeweller was personally invited to show his wares at a Hollywood pre-Oscar party with all the big names. Each year the company designs and creates around 200 unique one-off pieces, the heirlooms of the future, like this Phoenix Pendant, handmade in 18ct gold with purple, pink, yellow and orange sapphires and hand carved mother of pearl clouds. Each concept is sketched in detail with some designs completed in water colour. After sourcing the best materials at home and from overseas, the dream becomes a reality. In-store you can view one of New Zealand’s largest range of quality handmade diamond rings and jewellery, or plan your own unique creation in conjunction with Robinson Designer Goldsmith. Available: www.rdg.co.nz, phone (09) 489 9948, email info@rdg.co.nz RRP: Phoenix Pendant $6500
30 | Central Today | June/July 2010
Techno style GPS-600 Asset Tracker ‘Peace of mind for your loved ones’ is the catchcry from the innovative company behind this asset tracker — and the peace of mind it would give you while trying to keep tabs on an errant golfing hubby would be invaluable.
Spy Pen
The magnet mounting GPS tracker can locate and monitor any remote target by SMS (by cunningly attaching it to a golf bag perhaps). It can transmit the longitutde and latitude co-ordinates to your cell phone or you can find its location on the internet for free. The tracking devices from GPStracking4u come in all forms from wristwatches to products which can also listen to the sound around the tracker.
Indulge your inner spy next time you’re taking part in a business meeting — all you need is this special gadget. It looks like a pen, feels like a pen, even writes like a pen but — just like something out of the movies — this pen takes photos and digital videos with full voice recording. It is the ultimate device for recording important notes in business meetings, or for catching up with what really happens “on tour”.
Available: www.gpstracking4u.co.nz email info@gpstracking4u.co.nz, phone (03) 382 4459 RRP: $525
Available: www.e-gadgets.co.nz phone (09) 948 2090 RRP: $89.99
Living | Today
techno treats
products
Life is a network of challenges. The social, physical and emotional obstacles presented don’t discriminate; at any age, being well equipped goes a long way if you want to live life to the full. And because every moment is precious, irrespective of the distance you have walked through life, there are always ‘things’ that can make the journey a little more fun — so here are some of life’s little techno treats to make sure your path is one well travelled. Tomtom Start In-Car GPS navigator
Logitech Marathon Mouse M705
Our world today is alive with the sights and sounds of change. We have archived the vintage days of horse and cart and penny farthing bicycles and now our streets are explored by the latest modes of transportation. And with motorcycles, mopeds and super mini cars of every breed on the road, it is no wonder many of us find it hard to get a sense of direction in the midst of the hustle and bustle.
It’s a mighty little mouse and no doubt you’ll want to trap it. But that’s where the similarities end between the mammal and mechanical siblings, because unlike its furry counterpart, the Logitech Marathon Mouse M705 is a designer breed. A no mess, no fuss, ultra-portable asset to your computer, it’ll be a welcome resident in your home.
In the game of on-road orientation, The Tomtom Start in-car GPS Navigator will help you find your bearings. Featuring a 3.5 inch touchscreen, the latest GeoSmart New Zealand map and preinstalled speed and red light camera information, it has an inbuilt help guide and EasyPort Mount for hassle free installation. This portable pathfinder will be your on-road intuition; talking you through the ups and downs and ins and outs of the world around you, to help map out your life and get street smart. Available: Order online from www.ascent.co.nz RRP: $299.99
Eco Reader Getting lost in the world of literature feeds the imagination, promotes intellectual curiosity and offers the best form of escapism. So take yourself to a different destination every day with Eco Reader. This electronic book reader has revolutionised a nostalgic practise, but is still as small and lightweight as a paperback book.
The laser tracking technology delivers smooth cursor control on virtually any surface and this model can run for up to three years on one set of batteries. Featuring advanced 2.4 GHz wireless connectivity, the Marathon Mouse’s itty bitty plug inand-forget unifying receiver means your mouse is always at the ready. You can take document scrolling to the next generation of speed with the nearly frictionless alloy scroll wheel. A new concept in PC navigation, this feature will revolutionise the way you work. Available: Bond and Bond, www.bondandbond.co.nz RRP: $129.99
The model features a six inch screen which is viewable in most lighting conditions, including direct sunlight. With a 512 MB storage memory, which is expandable to 4GB via a secure digital card, the Eco Reader sorts files by name and the longevity of the battery means your mind and imagination can travel to the world of fantasy, romance, science fiction or history for days on end.
iPhone Who knew that the infinite wisdom of technology could be consolidated into a telecommunication tool that fits right in your palm? With an innovative essence that knows no bounds, the world is in your hands with the third generation (3GS) 32GB Apple iPhone. Beyond its integration of bread and butter phone features, the iPhone is anything but basic. With a longer life battery, a high quality three megapixel camera and hands free voice control, its countless creative companions can also be yours. With iPhone applications aka ‘apps,’ you can take the earth with you wherever you go. Travel to the stars, map out the sea, explore the planet and let your iPhone do the navigating. The 3GS iPhone can be whatever you want it to be; your memory, your brain, your culinary inspiration or your conscience. The iPhone lets you decide. After its launch, more than one million 3GS iPhones were sold in the first three days. But we’re not bragging on its behalf. Find out for yourself, get lost in the magic of iPhone and explore your world from top to bottom.
And because this technology supports multiple file formats, you can download and read eBooks from pay sites the world over as well as sourcing thousands of free books through online institutional and educational libraries.
Available: Order online at www.vodafone.co.nz RRP: $1379
Elite Regatta 300
Available: Order online from vicbooks.co.nz RRP: $599
Cisco FLIP Mino HD 60M Video We are taught to live for the future, but it is our past that has made us who we are today. To thread self definitive moments into our lifetime quilt, we need to preserve them just as they are. And to preserve the memories which have become part of our human fabric, we have to entrust their existence into the memory of another.
Life’s too short to resist indulgence, yet exercise is at the heart of every healthy person and that age old adage ‘a moment on the lips, forever on the hips,’ should be incentive enough for us all to get moving. It’s also the key to spiritual and emotional wellbeing, thanks to those cheerful little compounds we know as endorphins. It’s scientifically proven that exercise gets the jolly juices flowing and better yet, endorphins work as natural pain relievers.
And with this ultra small, super sleek camcorder in your possession, the power of time is in your hands. You can revisit your past, relive your memories and make time stand still. It has been said that good things come in small packages and the Cisco Flip video recorder is no exception.
To sustain a healthy body and happy mentality, the Elite Regatta 300 rowing machine from Elite Fitness can help you help yourself. Featuring a foldaway body, transport wheels for maximum convenience and a contoured polyurethane seat for comfort, this model will get your muscles warmed up while cooling you down with its resistance building fan wheel. The Elite Regatta 300 is a smooth operator, which means you can row your way to health central, any time, any day, anywhere.
Available: Order online at www.noelleeming.co.nz RRP: $279.99
Available: www.elitefitness.co.nz, phone 0800 2 GET FIT RRP: $799
The Cisco Flip Mino video recorder is your memory bank. As a master of producing unspoiled memories, it has made the impossible, possible.
Central Today | June/July 2010 | 31
News
The property
chop
Ten things you need to know about subdividing your property… So, you would like to subdivide your property. Well, before you launch in and find yourself delayed and frustrated by hold-ups, you need to know some vital facts. Here’s a brief overview of the entire subdivision process from start to finish, that just might help you avoid some pitfalls and save you time and money.
Ascertain from the District Plan whether you are allowed to subdivide The District Plan is the principal document that governs development and subdivision of land. The ability to further develop or subdivide a property is regulated by the rules within your particular zone. Before even beginning to plan a subdivision you need to ensure you can actually do it. You’d be surprised how many people neglect to check this vital fact, only to discover part way into the planning their entire project is flawed by one key fact — zoning rules. So check first, plan second. The council staff or a Registered Professional Surveyor can provide valuable advice at this point.
Establish feasibility, costs and timing
Providing you are able to subdivide you now need to ascertain some key facts. A surveyor will undertake a property data search of Council and Land Information New Zealand files, along with an assessment of any servicing issues. A site visit will also be undertaken and any potential issues identified. These may include things like potential flooding, subsidence or unstable ground, contamination or other hazards. At this stage advice can be given about feasibility, costs and timing for a specific proposal. It may also pay to talk to your solicitor and accountant to get their thoughts on the implications of subdividing.
32 | Central Today | June/July 2010
Now you need a plan
Your surveyor will now have sufficient information and data to draw you up a subdivision scheme plan. This plan will show the current site details and indentify proposed new boundaries and servicing requirements.
Let’s go to council for subdivision consent
As well as the subdivision scheme plan a subdivision report and an assessment of the effects on the environment will be prepared. This report and plan forms the application which is lodged with council for subdivision consent. Normally a council takes 20 working days to consider and approve the application.
Once approved the subdivision consent lasts for five years
Once subdivision approval is obtained it is valid for five years and legally binding sale and purchase agreements can then be entered into. By the end of the five year period the Land Transfer Surveys (see next step) must be complete and the plan submitted back to Council for Section 223 approval. This five year life can be used to market the proposed lot(s) and get someone signed up to buy before you carry on and finish the subdivision process.
Land Transfer Surveys
At this point Land Transfer Surveys can be undertaken. This essential survey work includes finding old survey marks, the placement of new boundary marks, calculation of new boundaries and areas and the drawing of the Land Transfer Plans. Your solicitor will also need to prepare the necessary legal documentation.
An aerial photograph of Papamoa and surrounding hills (top), and a typical large scale subdivision layout (above)
Completing the council conditions of consent
When council give their approval to the subdivision they often ask that certain works be carried out to service the proposed lot(s). This can mean completing physical works relating to providing a connection to the sewer, storm water and water mains and/or making provision for access, power or telephone. It may also include the payment of the Development and/or Financial Contributions. These matters are usually dealt with at the same time as the completion of the Land Transfer Surveys.
Don’t attempt a subdivision project with an unrealistic timeline In terms of timing, a straightforward subdivision usually takes a minimum of 7-10 months to obtain new Certificates of Title, and longer for more complex or staged developments. Make sure you have allowed for some reasonable time overruns. You can’t control the weather, unforeseen land or environment issues and general hold-ups. By approaching your project from the start with a realistic attitude to the possible time frames you will find the process less stressful.
You’re now ready for final sign off
Once the conditions of consent are satisfied a request is made to Council for the final “sign off” or Section 224(c) consent. This step can be fraught with last minute pitfalls, delays and costs ‘if’ you have not covered all the bases. Upon final sign off from Council the Land Transfer Plans are lodged together with legal documentation (prepared by your solicitor) with Land Information New Zealand for processing. Certificates of Title are then issued for the new lots which are then available to be transferred to other parties.
What are the costs to subdivide?
The cost of a subdivision will vary depending on size and complexity. The Council conditions of consent (and the cost to complete them) will also vary depending on the design and location of your subdivision. It is also a good idea to discuss the potential legal costs with your solicitor and any possible tax implications with your accountant.
This article has been prepared by MTEC Consultants. Professional advice should always be obtained on any specific subdivision or development matter, so to find out more about the subdivision process and how it might apply to your property, contact a reputable Registered Professional Surveyor or land development consultancy. MTEC Consultants is a leading land and property consultant with offices throughout the Bay of Plenty region. To contact them or find out more visit www.mtec.co.nz
Transport and Motoring | Test Drive
When it comes to 4WD workhorses the Mitsubishi Triton has always been a thoroughbred, but in a crowded paddock in 2010 does it still stand out? Tim Grey finds out in time for the National Fieldays.
One beaut ute Mitsubishi Triton
The 4WD ute market is a verdant green pasture for the farmer with a lease deal and a tradein on his mind, thanks to the quality output coming from virtually all corners. In fact, with the Hilux still riding high, a new Navarra on the horizon and even Holden’s badge-engineered Korean attracting a following, he’s spoilt for choice. I’m not going to pretend for even one minute that in this market, price, and of course a good Fieldays special, isn’t going to be the defining factor of any purchase. After all, there’s brand loyalty out there, but unlike the Aussie V8 admirer your average dairy farmer isn’t going to let a badge get in the way of the bottom line. So in such a market, what, if anything, sets the recently-released 2010 Triton apart from the rest? Well, for starters, if we’re sticking with that bottom line, Mitsubishi’s Diamond Advantage standard warranty on all of its new car range is significant. Mitsubishi is renowned for two things — its skills with 4WD systems and the often market-topping cost of fixing them if they go wrong — but now the company is putting its money where its mouth is. Compared to the standard three year warranties from the competition (and Toyota’s current five year warranty special), Diamond Advantage gives all new Mitsi purchasers 10 years/160,000km of coverage on the powertrain, five years/130,000km of coverage on the whole beast and five years/130,000km of free roadside assistance. This, according to the dealer I spoke to, is standard across the board on new car purchases from now on, however don’t let
that “10 year” figure on the engine distract you from the fact the bit covering the 4WD system is actually better at the moment with Toyota by an extra 20,000km of coverage, by virtue of the current promotion (at the time of writing). But for what its worth, the demo model Tritons I tested were screwed in so tight they could have threaded a phillips head at 20 paces. They also boasted, to my mind, more substantial materials inside than a Hilux and a nicer cabin environment to boot. The Triton 4WD comes in as many guises as a Hilux as well, from the Single Cab Chassis manual starting at $41,990 to the rangetopping Double Cab Wellside auto (GLS) at $54,990. What they all have in common is a beaut 2.5L common rail intercooled turbo diesel, providing a whopping 407Nm of torque in the workhorse manuals and “just” 356Nm in the two more urbanite autos. The engine peaks at a no-nonsense 2000rpm, so it doesn’t make as short work of obstacles as the Hilux’s older 3.0L turbo chugger, which peaks at 343Nm but delivers it at an early plateau from 1400rpm to 3400rpm. Both Tritons I tested did feel like it was a bit of an effort getting off the mark compared to a “sheep shagger”, but it benefitted off the road from a nice eagerness to turn-in and bite with loose surfaces which said a lot about the underpinnings of the whole package.
when slippage is detected in the rear. You still have to stop, of course, to engage the low 4WD gear (4L), but again Super Select comes up trumps with a 4LLC gear for that extra degree of low-speed high-revving alongside a locked 4WD mode. At the same time, while the GLS models enjoy Super Select 4WD, they miss out on the heavy duty rear suspension of the lower models, which Mitsubishi presumably regard as the real workhorses. Away from the mechanics, a ute is judged by how much it can load and pull, and it is here where the bigger Triton really muscles in. The equivalent Triton is almost 10cm longer than a Hilux doublecab, boasts a maximum rear axle load of 1800kg and can tow (braked)
2700 to 3000kg compared to the Hilux range’s uniform 2500kg. The Hilux wins on ground clearance, but only by a whisker of millimetres, and if you’re thinking to go with the one which will take you further, be aware there’s not much in that either. A manual double cab Hilux consumes 8.3L/100km on a 76 litre tank, while the equivalent Triton does the same from a 75 litre tank. With little to differentiate between the traditional market leader and the newer model it all comes down to that bottom line again. Seeing as 4WD Hiluxs begin at $48,830 and end at $58,570, though, I don’t think the Triton has much to worry about there either.
Which brings me to probably the biggest differentiator in the Triton stable, the 4WD transmission choice. Most of the range features Easy Select 4WD, while the top dog GLS models feature Super Select 4WD. What’s the difference? Well, while the former allows you to shift from the 2WD (2H) setting to the 4WD one (4H) while moving at up to 100km/h, Super Select automates the process with a bit more logic thanks to a system which engages the front wheels
Central Today | June/July 2010 | 33
Export | NZ Sawn Products
Sawing into the
The magic of wood lies in its versatility, as shown by the myriad of applications it has been used for over the years. But underneath this versatility is a hidden characteristic. Far from being a silent witness to history, the rings on the inside of a tree trunk not only give away its age, but when radiocarbon dated, they provide a glimpse of certain aspects of historic events. With clues about climate and evidence of disturbance around the tree from fire to flood, the rings of a tree tell a story. With 6.4 million hectares of indigenous forest and 1.8 million hectares of planted forest, forestry plays an increasingly important role in New Zealand’s economy. The rings of New Zealand’s plentiful trees tell the story of a booming industry, one that has stood the test of time and one whose products also stand the test of time, many centuries after manufacture. NZ Sawn Products produces highly sought after timber and, much like the rings of trees, is crafting its own story in the history books — that of an iconic small town business making a significant impact on the local economy.
the upper ranges of the timber market. “A large proportion of our logs come from a 75-100 kilometre radius so we are able to support local growers.”
Small community, big impact Established in the 1960s and known then as Fielding Lumber, NZ Sawn Products started life as a native log mill, general manager David Lewis says. “Over time, as the resource was depleted and became increasingly difficult to secure, the business moved into cutting macrocarpa, douglas fir and pine. In recent years we have moved completely into radiata pine.” Today NZ Sawn Products produces top quality timber from radiata pine, sourced from the lower North Island. “We cut 100 percent pruned log, the high value butt log of the tree,” he says.
But it’s not the only way NZ Sawn Products is supporting the local community. All waste products from the operation are sold locally; the sawdust is sold to a local business which blends it with freezing works animal waste for compost production, the bark mulch is sold to local businesses for a variety of farming, landscaping and playground uses and the wood chips are sent to the Bay of Plenty to be made into paper.
In the early phases of a tree’s growth the lower six metres of the branches are pruned. This method produces the high quality timber with no knots which the company purchases from local growers and allows the company to service
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Proud to support and provide NZ Sawn Products with their materials handling equipment
34 | Central Today | June/July 2010
Export | NZ Sawn Products
“As you can imagine, running an operation like this there are so many machines and moving parts. We also support the local community through the employment of subcontractors within the service industry and the employment of a strong workforce of locals.
and more recently Africa. Today 70 percent of the sawmill’s products are exporting with the balance going to the domestic market via ITM, Mega Mitre 10, Carters and Placemakers outlets. While the challenges faced by the company are equal to those of any New Zealand manufacturing business, as a large-scale exporting company, a fluctuating foreign exchange rate is an ongoing challenge and a risk to profitability. “It’s something which has a significant impact on the operation, yet something we have absolutely no control over,” Lewis says.
“We’re a big, little business. While we are heavily exporting we are extremely supportive of local businesses and make a significant contribution to the local economy.”
It’s seen the demise of lesser known competitors, along with the economic tidal wave which has seen many in the industry swept away. “We’re still around because of the effort we put into developing new markets, the innovations we’ve brought to our operation and the long term vision of our owners.”
Its Feilding location also has significant benefits for the organisation. “We are strategically well located to forest resources,” he says of the sawmill’s proximity to Manawatu Gorge. “This allows us to economically source timber from both sides of the North Island, which is very important.
Operational developments A sawmill’s basic operation is much like those of hundreds of years ago; a log enters one end and dimensional timber exits on the other end. But there is a little more to it than that, Lewis says of the introduction of electricity and advanced technology which has furthered the milling process. “The sawmill takes logs and cuts them into dimensioned timber. From that point it has to go through kilns where we dry the timber down to moisture content suitable for export.
“Being placed two kilometres from the residential area means our unavoidable noise, dust and logging trucks are not affecting anyone. But also being attached to the Feilding township we have access to an excellent workforce. Forest resources and labour are the two integral pieces to a sawmill operation and we’re in a superb location for both.”
“From there the timber is either exported in that state or goes to the planer department for further processing, including to the treatment plant for treating timber.”
Branching out New Zealand’s timber products are now telling their story throughout the world as NZ Sawn Products branches out to a global marketplace.
NZ Sawn Products is constantly upgrading plant and machinery to meet the needs of today and increase production capabilities. While the company has significant growth plans, increased production is not as easy as it sounds in the case of sawmills, Lewis says. “It’s not as simple as cutting more timber. Increased production in timber requires a significant investment in downstream processing machinery. Between the drying, treating and planing of timber, there is no cheap development in sawmilling.”
The company’s foray into the exporting arena developed after 2002 when a new partnership was formed. New Zealand logging organisation Ribbonwood joined forces with United States business Green Crow to purchase NZ Sawn Products, opening the door for US bound exports. Products are now enjoyed by the United States, a number of Asian markets, Europe, Australia
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NZ Sawn Products has plans to install two new kilns to double drying capacity. The two kilns are driven by gas which heats water to create the steam which dries the timber, but new developments allow new methods. “As part of the kiln development we hope to have completed and commissioned by the end of the year, there will be a wood burner which will burn sawdust to drive the kilns. The development of the operation is ongoing and we are continually investing heavily in upgrading and increasing production.” Before the new partnership in 2002, the mill operation was cutting 45 cubic metres of finished timber a day. Production has since increased to 100 cubic metres a day and the objective in the next few years is to increase the production by a further 40 percent. While the figures may seem optimistic, the company’s record proves that to reach high requires aiming high. The small town business, which has developed into a large-scale exporting company, stands as testament to this and as NZ Sawn Products continues to etch its name on the bark of the industry, the global marketplace will continue to enjoy the products that come from our little South Pacific nation. NZ Sawn Products Lethbridge Road Maewa Fielding T (06) 323 6622 E david@nzsawnproducts.co.nz — Advertising Feature
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Central Today | June/July 2010 | 35
Property and Construction | Downer EDI Works
An advantageous alliance Breaking new ground in contract management via New Zealand’s first alliance model is producing exceptional results. The Wanganui Road Maintenance Alliance between Downer EDI and the Wanganui District Council (WDC) is returning cost savings of around 20 percent, since it came into force in 2008.
The contract scope includes full management and maintenance of 578 kilometres of sealed and 288 kilometres of unsealed roads and includes routine and periodic maintenance, emergency works and pedestrian and cycle amenities. Valued at $50 million plus emergency work, the holistic asset management approach was recently independently audited and the results were glowing, says Downer EDI area manager Quentin McCarthy. “Our observations would be that the WDC Alliance maintains world class best-practice standards with respect to recording and reporting of financial and non-financial information. “In particular we would like to make mention of the processes used to capture and report on the non-financial aspects of the project including the tracking of KPIs and KRAs. These are leadingedge initiatives which could provide a template for industry wide adoption in the years ahead,” states an extract from the audit. Traditionally local authority maintenance contracts are managed by a New Zealand Transport Authority consultant, who facilitates communications between the client and contractor; in this situation Downer EDI works directly with WDC in an embedded team. “The test of a true alliance is trust. We are committed to working with the WDC team on a ‘no surprises basis’, which is one of the basic tenants of an alliance arrangement. “An alliance is essentially a project delivery strategy where the sponsors and commercial participant’s objectives are aligned to maximise performance, manage risk, reduce costs and achieve outstanding results. While maintenance alliances are still new to New Zealand, project alliances are commonly and successfully used internationally,” McCarthy says. Cost efficiencies aside, another key benefit of the alliance is to achieve breakthrough performance and an example of this is to improve customer response times. McCarthy says that using the traditional model, customer requests can take up to seven days from the lodgement to action. Under the alliance model, this has been reduced to 1.5 days.
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36 | Central Today | June/July 2010
Property and Construction | Downer EDI Works
The alliance motto is to: do the right thing, in the right place, at the right time, for the right price. “This is our mantra,” says McCarthy. “And we’re proud to say we’re achieving on all aspects. The basis of the entire alliance is bringing like minded people into the mix.” On this front the company employed several people, not just for their technical abilities, but the emotional intelligence and integrity, to represent Downer EDI on the embedded team. The alliance works because of the people that are involved in it. “Everyone has a ‘best for project’ approach.” McCarthy explains the relationship as based on the handshake ethos of years past. “That was all about trust, mutual admiration and a nosurprises approach with open communication, high expectations and a risk sharing approach. “This concept has wrapped all these attributes up and put a bow on it and called it an alliance and it is working exceptionally well. We are all pleased with the outcomes.”
Downer EDI at a glance Downer EDI Works is a national leader in civil engineering and infrastructure. The organisation has a proud history dating back almost 140 years and today employs around 3300 people.
Downer EDI Works operated as the Ministry of Works until the early 1990s, when it was privatised and developed into one of the two major players in the New Zealand infrastructure market.
Downer EDI Works offers many different products and services, primarily specialising in roading and civil engineering work. While providing design, products and services for the development, asset management and maintenance of public and private infrastructure assets for water, waste water and electricity services, roads, tunnels, bridges and hydro schemes, Downer EDI Works also has capabilities through its specialist laboratory services, bitumen supply, drilling, avalanche control programmes and much more.
Purchased by the Australian publicly listed Downer Group in 1996, the company rapidly expanded through the acquisition of more than 30 companies during the next few years.
An expanding part of business involves Facilities Maintenance and Open Space Management divisions, providing comprehensive outdoor maintenance and facilities management services.
It has 80 branches and depots throughout New Zealand and operates independently of its international sister companies, generating more than $750 million in sales annually, with significant representation in almost every New Zealand community.
Downer EDI Works Railway Road Palmerston North T (06) 355 2535 E info@works.co.nz www.works.co.nz — Advertising Feature
Downer EDI Works has grown with the market and has built and maintained a large percentage of the infrastructure assets that now sustain local communities.
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Experts in civil construction, design and build projects, roading, earthworks, drainage, concrete, subdivisions and rail maintenance. P 09 256 9810 | 09 256 9811 | info@works.co.nz | www.works.co.nz Central Today | June/July 2010 | 37
Property and Construction | Waiotahi Contractors
Growing with Considering the high failure rate of start-up businesses, for any to survive further than corporate infancy pays tribute to both the business model and its founders. Through hard work, determination and an extensive portfolio spanning 50 years, Waiotahi Contractors has done just this. The company has evolved from a small farm drainage operation into a large engineering, contracting and transport company and now finds itself one of the big players in the eastern Bay of Plenty.
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Established in 1957 by general manager Richard Claydon’s three uncles — Dick, George and Buddy Bennett— the company earned its name from the family farm in Waiotahi. “They could never get the local drainage contractors when they needed them, so they decided to form a company and buy a dragline (excavator), which they did,” Claydon says of his enterprising uncles. “The fourth person, Len Gordon, was the driver. Everybody wanted the machine and they couldn’t do the work on their farm, so the company grew from there.” Claydon became involved in 1961, after returning from an overseas banking position, when he realised he wanted to work outside. “It went from there and we ended up with four draglines by 1965. We purchased AE McDonald Limited in 1965, got three draglines from them and ended up with seven.” Soon after, Claydon read about the first hydraulic machine in New Zealand. He went to Palmerston North to view it and ordered one immediately. But government regulations at the time saw him wait two years to get it.
Another new machine was purchased in 1966, along with Waiotahi Contractors’ first big dragline in 1967. “We immediately went to work for the Bay of Plenty Catchment Commission on stop-banking work,” Claydon says.
operating out of Whakatane, Kawerau and Opotiki. Its next move was to begin construction and civil engineering. Today, the company’s main location is Valley Road, Whakatane, together with depots in Opotiki and Kawerau.
“When the hydraulic machine came it took 12 months before farmers would accept it. They wanted the draglines. But after that 12 months they wanted the hydraulic machine and not the draglines. Keeping the first hydraulic machine going meant canvassing every day from Waihi Beach, Tauranga, Whakatane and Opotiki.”
Waiotahi evolution
The company established a branch in Tauranga in 1972, as well as purchasing several businesses, including local Whakatane company, Bay Bulldozing. “We did a lot of sewage work in Tauranga and Mt Maunganui. It got too busy and we couldn’t get good staff, so we concentrated on the Whakatane area,” Claydon says. “We moved into quarrying and metal base course production in 1979 and now we have three quarries and numerous river pits.” Waiotahi Contractors later began its trucking operation, which today involves a fleet of trucks
Waiotahi Contractors is well known throughout the eastern Bay of Plenty as a highly competent, customer oriented business providing quality civil engineering services and transport needs to a diverse customer base. The company’s civil engineering work evolved from stopbanking on the Rangitaiki River, its sewer reticulation at Tauranga and Mt Maunganui and subdivision work got under way in the early 1970s. Waiotahi operates within the contracting industry, with associated divisions in transport, metal supply and concrete manufacturing. Its key activities include road construction, agricultural contracting, site works, subdivisions, maintenance, metal supplies and specialised cartage services developed for the forestry, dairy, grain and fertiliser industries.
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Property and Construction | Waiotahi Contractors
the region contracting division operates a quality management system in compliance with AS/NZS ISO 9002:1994.
Adaptable trucking fleet Waiotahi has an adaptable trucking fleet operating from its three North Island depots. The company runs 16 trucks from its Whakatane depot, 12 from Opotiki and three from Kawerau. The trucking division services not only Waiotahi’s needs, but also a wide range of clients throughout the upper North Island.
Waiotahi Contractors’ mission is to be the provider of essential engineering, contracting and transport services of such quality that it becomes the first choice of customers and communities. Claydon says while the company’s original farm drainage work is still important, it has become a smaller part. “Today, the general contracting would be the largest part of the business, followed by transport and haulage. However, while a large part of our workload is through local council and Transit New Zealand work, we still pride ourselves in providing good quality services to our local businesses and farmers.” The contracting division has grown to encompass a wide range of abilities and skills: Environmental work — river bank protection, specialised waste treatment facilities and erosion control Agricultural contracting — farm drainage, feed pads, tree pulling, culverts, race rehabilitation and contouring Roading work — shape correction, overlays, seal widening/extensions, driveways, subdivisions, kerbs and channels Gabion construction — gabion basket retaining walls, reno mattress, reinforced earth walls and rock rip rap
The company takes pride in having the trucks to do the job, regardless of what the requirements might be — from farm jobs to bulk cartage. Its transport services include bulk liquids, bulk maize, kiwifruit, bulk and bagged fertiliser, lime and compost, aggregates, sealing chip and pumice, and timber and posts.
Waiotahi Contractors expresses this gratitude by giving back to the greater community through sponsorship of Life Education Trust New Zealand, Surf Lifesaving New Zealand and Opotiki Sports Rugby Club. In an age where it is increasingly difficult to find good staff, Waiotahi Contractors is proud to have many long serving members. “Robbie Petersen, also a shareholder of Waiotahi, has been with us since 1965 and now Spike, his son, is also a company director. Many of our staff members have in excess of 30 years’ employment with us.” Claydon himself has four sons involved in Waiotahi Contractors; Henry as an engineer, Stephen as an accountant, Phillip in estimating and Andrew as a machine operator. The company is experiencing steady growth and is ready to develop with the market. “We will look at things with a beady eye and if we think there’s something worthwhile we’ll look at it.
Claydon says the company operates a variety of different vehicles and carts mainly around its depot areas, although trucks do travel from the Waikato north to Auckland.
“We always look at new ventures and expansion with an open mind and we have the flexibility to develop and change with the times.”
Ongoing success
Waiotahi Contractors Valley Road Whakatane T (07) 308 8098 E waiotahi@xtra.co.nz www.waiotahi.co.nz
Company development has been a key ingredient in the Waiotahi recipe of success. It has been producing top quality aggregates and base course since 1972, working hard to ensure its product is the best around. This dedication to perfection has resulted in Waiotahi’s metal products continuing to be recognised as the region’s finest. Claydon says the company operates three quarries and various river metal pits, producing aggregate that complies with strict technical specifications.
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Waiotahi Contractors can supply the following products: basecourse, sand fill, chip fines, sealing chip, crusher dust, rotten rock, washed aggregates, screened river run, concrete builders’ mix, No 2 sand, silt, quarry run, drainage metal, pumice and top soil. But it’s the dedication and hard work of its loyal directors, suppliers and employees which Claydon attributes the overall success to. The company employs about 130 staff across its three depots.
Siteworks — carparks, house sites, commercial sites, pipework and drainage and subdivisions.
“The development of the company has been built on the efforts and dedication of a lot of our staff over quite a few years and continues today,” Claydon says.
Waiotahi Contractors also operates a readymix concrete plant in Opotiki. Concrete is delivered to the customer’s site using the company’s box pour and finish options. The company’s
“We thank past and present employees as well as the local businesses and people of the eastern bay for supporting us over the years.”
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Property and Construction | Taupo District Council/East Taupo Arterial
Life on t he
lakeside “Because of all our events, like Iron Man, we’re being There’s no other way to say it promoted on the world stage via the media,” Cooper — Taupo is thriving — and the says. “For next year’s Rugby World Cup, we’ve been trend comes as no surprise to the given Wales, Ireland and South Africa to host — you can’t get any more crème de la crème than that.” city’s Mayor, Rick Cooper. “Taupo is going gang-busters and has been for Beautifying Taupo the last 18 months,” he says. “We really The Taupo District Council is doing a “refresh, reconnect and reinvigorate” programme on the lake front. haven’t seen the downturn like other “That involves a makeover for our commercial business people said we would.” Cooper says Taupo is benefiting significantly from the changing nature of New Zealand holidays and the tourism industry. “People are more into their walking and biking, tramping and fishing and all the things that families can do together. It’s about exercise outdoors and where better than Taupo to promote these activities? We’ve got a lake that’s bigger than Singapore and we have hiking and biking tracks for Africa.” Cooper says in addition to the region’s significant overseas visitors, New Zealanders are more conscious about the way they holiday now too. “It’s very expensive to go overseas now and it’s better to holiday on your own back door. Thirty seven percent of our houses in Taupo are holiday homes. People come here to holiday and a lot of it’s to do with hiking and biking. We’ve had articles in London magazines on the biking tracks around Taupo.”
Beautiful Lake Taupo is the ideal spot for pleasure seekers, now promoted as a holiday destination, with 37 percent of its houses being holiday homes
International tourism destination Taupo promotes itself actively overseas as a tourist destination, particularly within Australia.
Right: Taupo’s town centre is continuing to thrive
“It’s a known fact that people from Europe and New Zealand only travel to each other’s country 0.3 times per lifetime, but New Zealanders and Australians travel to each other six times in each lifetime,” Cooper says. “We now have a trans-Tasman airport 50 minutes away — that’s quicker than it is to drive from Auckland Airport to Queen Street. There are a lot of things happening here and the place is fizzing. The Huka Jet Boat Company has had a marvellous summer and we’re the biggest drop zone in the southern hemisphere for tandem skydiving etc. Things have been, and continue to be, pretty vibrant.” New Zealand’s second Hilton Hotel recently opened in Taupo and booked in 7000 visitors in its first 90 days.
district and plans to initiate an industrial/commercial growth mode, including significant, newly zoned industrial greenfield land.
“Our nearly completed $100 million highway, the Eastern Taupo Arterial, will provide opportunities to vehicle calm our lake-front streets, as well as looking at how we can beautify the place,” Cooper says. “We have an iconic boat harbour but we’re not really connected to it. We want to get people down there drinking lattes and eating Caesar salads.”
On track with a new track Taupo has recently been approved for a new track around the Western Bays as part of Prime Minister John Key’s walking/biking strategy. “We’ll come out of that with flying colours. It will take us right around the western side of the lake and will involve putting in another 60km of walking and biking tracks, camp sites and a network of boat taxis to service the public. We’ve gained approval for that and hope to have it open within a year.” Cooper says Taupo is going ahead in many different ways. While the Taupo district already has a number of geothermal power stations located within its boundaries, Contact Energy is currently working through resource consent processes for a massive new geothermal power station called Tauhara II, which will produce up to 230 megawatts of electricity, in addition to the proposed plant at Te Mihi. “When one adds this to the geothermal investments that are under way with Mighty River Power and their partners, there are billions of dollars being invested in this renewable, sustainable, clean green energy in the region,” he says. “One power plant alone will employ over 200 people. The resource consent is in now and should hopefully be done by August.”
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40 | Central Today | June/July 2010
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Property and Construction | Taupo District Council/East Taupo Arterial
The East Taupo Arterial road, under construction and well ahead of schedule
Taupo’s new east arterial bypass is going to give residents their town back. Taupo Mayor Rick Cooper says the road will divert all heavy traffic away from Taupo’s waterfront and town centre. “At the moment any trucks travelling from Auckland to Wellington go through our main street and along our lake front. That includes big trucks with stinky stock in them,” he says. “The main street of Taupo and lake front is currently a main highway because it belongs to the New Zealand Transport Agency (Transit). When the road goes through they are going to give us the existing State Highway back. We’re getting our town back. It’s going to be fantastic when the trucks are gone and there’s also the opportunity to put a big truck stop in along the new arterial route.” The East Taupo Arterial road is well under way, with construction expected to be completed by October this year. The 16km highway will run along the eastern outskirts of Taupo (from Wairakei to Taupo Airport) and includes a bridge over the Waikato River.
This year Fulton Hogan has progressed the physical works significantly with the major earthworks completed, two of the four bridges in place and construction of the pavement underway. Work will continue on the two remaining bridges, the Waikato River Bridge and the Wairakei Steam Field Bridge, as well as three major roundabouts.
Cooper says the new road will completely alter Taupo’s waterfront and CBD area.
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“We want to be the most cycle and walkingfriendly town in New Zealand. We’re going to change our waterfront to reduce speed and put bends in it. At the moment it can be pretty scary for elderly people and mothers with children when there are big trucks roaring past.” Cooper says the construction of the arterial road has resulted in the development of new large residential and industrial areas. During the past few years the Taupo District Council has been developing residential sections on
Rick Cooper, Mayor of Taupo District Council
Initial discussions on an alternative route for State Highway 1 were being held as far back as 1960. Construction works commenced in October 2008 with the removal of trees and the installation of fencing on the site. In 2009 more than a million cubic metres of earthworks were completed, along with the installation of all the large culvert pipes.
“I would like to welcome anyone to come and join with the awesome forces that are at work in the Central North Island.”
Taupo District Council PO Box 865, Taupo 3351 T (07) 376 0899 F (07) 378 0118 E general@taupo.govt.nz — Advertising Feature www.taupodc.govt.nz
“The bypass road was originally programmed to open in March next year,” Cooper says. “Local body elections are on October 13 and I promise it will open before then — we’re six months ahead of our programmed time frame.”
When the road goes through they (Transit) are going to give us the existing State Highway back. We’re getting our town back. The objective of the arterial road is to reduce the number of heavy vehicles travelling through the Taupo CBD and along the lakefront and to reduce traffic congestion during holiday seasons and events.
business wanting to be in the centre of New Zealand now has opportunities to move in.
190 hectares of severance land purchased in the mid-to-late 1990s for the East Taupo Arterial route on the south eastern outskirts of town. An industry-leading master-planned urban design development, comprising 2200 lots, is approved, so there are exciting times ahead. The primary aim of this development is to create vibrant, safe and interactive communities through proven urban design principles and quality healthy homes through sustainable development.
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“We’re also currently rezoning 142 hectares of Greenfield land into industrial sites, so any Central Today | June/July 2010 | 41
Property and Construction | Strata Precision Plastics
Precision In the heart of Mooloo country (the Waikato), a mix of what Strata Precision Plastics describe as “weird and wonderful things” have been devised. These ‘fairly’ weird and wonderful things are part of the diverse and accommodating project range offered by Strata. As a member of the New Zealand Contractors’ Federation, Strata is a privately owned and operated entity based in Hamilton and the
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South Island. Committed to providing effective precision plastic solutions, Strata is becoming progressively involved with work opportunities in the South Island and has maintained a national presence, having been involved with many small and major projects around New Zealand, including the Bay of Plenty, Palmerston North and the West Coast. Taking industrial knowledge and amalgamating it with practical experience has earned the company an unrivalled set of professional qualifications and Strata also boasts a workforce with a combined total of 200 years experience in the drainage industry. Categorising its services into civil and infrastructure, rural, slotting and specials, general manager Paul Dale says planning, development, quality and customer relations are professional priorities. “Effectively what it comes down to is providing excellent products, solutions and services and looking after our relationships with both our suppliers and customers.”
Industry specialist As an industry specialist in the manufacture of products for the civil and infrastructure market, Strata produces high quality and lightweight alternatives such as PVC or polyethylene materials. These civil and infrastructure products include stormwater and wastewater fittings, non-return valves, nonentry access chambers, manhole connections, formed bends and grease traps. In 1996, the company purchased its first 315mm butt welding machine and it has been involved in on-site butt fusion, electrofusion and extrusion welding of polyethylene ever since. Recent purchases have included a 1200mm and 630mm machine which has brought the total of onsite machines to 11.
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The acquisition of these machines was Strata’s response to the demand for large bore polyethylene in New Zealand. The 1200mm machine which arrived in New Zealand via Australia, is one of few in the country and has “opened a new market that we haven’t been able to tap into yet,” Dale says.
“With this type of machine, it allows us to be more mobile with our service which will translate into more cost effective options for our contractors. It is also a way for us to grow our project opportunities and our marketshare and offer the best services to our customers.”
With the purchase of these latest machines we are pleased to be able
“We still see opportunity for growth and in the future we will be looking to tap into new offshore technology and attend trade fairs in Europe, Australia and America so we can keep up with the latest and greatest.”
Strata Precision Plastics PO Box 5135 Frankton Hamilton, 3204 T (07) 846 7239 F (07) 843 9539 E paul@strataplastics.co.nz www.strataplastics.co.nz — Advertising Feature
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With the intention of growing the business, Dale says Strata’s future lies in optimising its services and maximising marketshare.
Christchurch – 03 982 4355
www.strataplastics.co.nz
Property and Construction | Tootill Electrical
25
An
ersary niv
Y E A R S
Tootill Electrical’s services include: Electrical services from design Temporary power supplies to pricing and installation Security alarm sales and service Commercial laundry sales and service Power tool sales and service Commercial kitchens Household specials equipment sales and service Anti-condensation Generator sales and services control systems
Keeping current Since its inception, electrical technology has tranformed industry and society. Its versatility as an energy source means it can be put to an almost limitless set of applications. And almost as equally diverse as the range of applications electricity is applied to, are the points of difference which sets Tootill Electrical aside from competitors. Established in 1985 by managing director Mark Tootill, the business developed from a general electrical contractor, to the specialised commercial equipment servicing company it is today. But it’s a story which has been 25 years in the making, encompassing a diverse portfolio of contracts for an equally diverse range of industries. By the completion of his apprenticeship, Tootill had developed a broad skillset within the parameters of the electrical industry. Noticing the need for quality electrical servicing, he set the wheels in motion for what is now a successful enterprise servicing territory from Wellington up to Wanganui and across to the Hawkes Bay. “I started as a one man band in an Escort van with a bag of tools,” Tootill laughs. Today the business has developed from those humble beginnings, to now employing 10 staff whose sole focus is delivering that same high quality service Tootill himself became known for. “It’s all about delivering the best possible service and the highest quality workmanship for the most competitive price.” This quality is ensured by the company’s heavy investment in staff training. Every three years Tootill Electrical brings in a junior apprentice. “It’s our way of giving back to the industry while also allowing us to build wellrounded electricians — it’s a two-way street. “We have built up an amazing breadth of knowledge across all the areas we work in. I have very high praise for our staff, from the office through to the senior servicemen — they’re what make this company work. “In this line of work you need to be able to go the extra mile for the customer and be
Tootill Electrical at a glance Tootill Electrical is a privately-owned company which was established in 1985 and has steadily grown ever since. It is a leading commercial equipment service company in Palmerston North and covers territory from Wellington to Wanganui and Hawkes Bay.
and is constantly evaluating and updating this inventory in conjunction with its customers. But that’s not the only way the company ensures customer convenience. “We will go out of our way to service our clients’ machinery at night, because if their machines are out of action during the day for maintenance, they’re not making any money. “We think our commitment to customers is unparalleled,” Toothill says. “We work a lot of hours to ensure our customers’ convenience. Couple that with
our quality workmanship and 25 years of experience and you’ve got an electrical contractor which is pretty hard to beat.”
Tootill Electrical 158 Fairs Road Palmerston North T (06) 357 8146 E joce@tootillelectrical.co.nz www.tootillelectrical.co.nz — Advertising Feature
As general electrical contractors Tootill carry out electrical installation and service work in both the domestic and commercial sectors. The company also installs security alarm products and provide alarm monitoring services. As members of ECANZ, all Tootill work is covered by the ECANZ $10,000 workmanship guarantee. incredibly interested in what you’re doing — it’s not a job, it’s a career and these people are the only reason we are successful as a company.” Tootill Electrical carries an extensive range of spare parts for the equipment it services
SPECIALISING IN FLEET MANAGEMENT SOLUTIONS
Proud to be responsible for keeping Tootill Electrical’s vehicles on the road. Phone 06-353 3473
GRANT ANTHONY : 0274 498 438 Commercial & Industrial Refrigeration • Service / Installation •Preventative Maintenance • 24 Hour Service Specialist in Supermarket Service / Maintenance Air Conditioning - Service Maintenance Supplier & Installation of Daikin Heat Pumps
Fax 06-353 3782 PO Box 4204 Palmerston North
Proud to be associated with Tootill Electrical Ltd and the electrical Industry in New Zealand Electrical Supplies Ph 0800 006 006
Est 1945
www.stewarts.co.nz Central Today | June/July 2010 | 43
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Solutions | Advanced Sheetmetals
A R S
A business built on
relationships After a period of sustained growth, the Wall Street market in New York dropped sharply in October 1987. The shockwave was felt globally — in New Zealand interest rates exceeded 20 percent and commercial activity declined substantially. From the wake of this economic turmoil rose Advanced Sheetmetals. Established in 1990, as the country still battled ongoing effects of economic disarray, John Mullinger and Darian deRidder discovered a gap in the sheetmetal industry. “Most of the sheetmetal companies were busy servicing the dairy industry, but most companies were neglecting the needs of other local businesses,” Mullinger says.
The pair formed a partnership dedicated to providing local Manawatu businesses with quality service. Today, with a reputation spanning two decades, that service incorporates the manufacture of industrial brackets and plastic rotational moulds, robotic welding (a method of producing multiple components with a high degree of accuracy), and general engineering work. Mullinger says the services the company provides haven’t changed since the early years and the focus for the business remains servicing customers’ needs with quality products. “While the business itself is a commercial entity, there’s more in it for us. We’re not just a business,” he says with regards to the relationships the pair develop with their clients.
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“Many of our customers have been with us since day one, 20 years ago. To us they aren’t our clients, they’re our friends. We go hunting, fishing and race cars together,” he laughs.
tight-knit team of six with extra contractors who come in when required. Advanced Sheetmetals also takes pride in training apprentices, allowing the company to breed well-rounded engineers.
But the relationships the company forms are also much closer to home. Mullinger says deRidder and himself met when doing their apprecticeship together and they have known many of the staff since those days. “We’ve all grown up in the industry together.”
“The industry can be pretty cut-throat with companies undercutting each other,” Mullinger says. “It’s not all about the price, particularly when someone wants something that lasts and does the job properly. Our ability to develop strong long term relationships with both clients and suppliers allows us to get past that.”
Operating from large, modern premises with state-of-the-art equipment, the staff is a
DeRidder agrees. “We’re working with great suppliers and customers who serve us well. We have a common goal. It’s like a marriage; even if you are completely different people, if you’re going in the same direction it works out.” But it’s not just relationships that has led to the company’s success. “Our services are spread over a pretty diverse range of industries. When one is struggling, there’s generally work in another field,” Mullinger says. “While we’re reliant on the customer, as opposed to manufacturing a product to sell ourselves, we can’t go and make things happen, it all comes back to the strength of our relationships and the quality of our workmanship. “You wouldn’t be around for 20 years if you didn’t enjoy what you were doing. Conversely, you wouldn’t be around for as long if you didn’t have quality workmanship behind you.” Advanced Sheetmetals 18 Downing Street Palmerston North T (06) 355 9107 E info@advancedsheetmetals.co.nz www.advancedsheetmetals.co.nz — Advertising Feature
ULLRICH ALUMINIUM Proud suppliers of Aluminium Plate, Extrusion, Fasteners & Sealant to ADVANCED SHEETMETALS LTD
8 Railway Road, Palmerston North Phone Ray 06 356 2007 | Fax 06 356 8539 Email pnthsls@uacl.co.nz www.ullrich-aluminium.co.nz
44 | Central Today | June/July 2010
Solutions | Mouldings Unlimited
Staying true to
form
Its factory in Ashhurst features five bi-axel ovens and two shuttle ovens and is a specialist in small part production, able to produce more than 40 cycles per day. The group also has manufacturing plants in Ashburton and Auckland, which complement the Ashhurst factory’s abilities. “We’re all part of a group and we work as a group — we work as one company with three factories. Between the three companies we can share knowledge and resources which will benefit customers,” King says. “We have equal manufacturing in both the North Island and the South Island and can manufacture products to overcome logistics issues.” Mouldings Unlimited can spread its work across the three factories, if required, depending on capacity and plant size.
Mouldings Unlimited in Ashhurst is a leader in plastic rotational moulding and is able to offer a complete service to customers throughout New Zealand. As part of the McLaren Ross Holdings group of companies and in particular, Plastic Rotational Moulding Co Ltd (PRM), Mouldings Unlimited has access to a full range of resources and technical capabilities to service clients from concept to finished product. With origins dating back 15 years, the company is able to provide plastic moulding solutions for a wide variety of customers. Mouldings Unlimited (originally Ashhurst Rota Plastics) can project manage the entire design and mould-making process, manufacture to strict specifications, assemble, package and even co-ordinate freight directly to the end customer if required. General manager Gary King says the company specialises in the creation of large hollow structures or components, focused primarily on the agricultural sector, but also servicing other markets such as furniture and marine industries. “We make a lot of tanks — chemical tanks and water tanks of various shapes and sizes.”
problems. Its moulding experience, knowledge of plastics and commitment to quality has put the company at the forefront of New Zealand’s rotational moulding industry.
As part of the McLaren Ross Holdings Group (MRH), Mouldings Unlimited is one of three manufacturing facilities in New Zealand.
Mouldings Unlimited Limited 141 Mulgrave Street Ashhurst Palmerston North 4810 T (06) 326 8888 F (06) 326 8840 www.mouldingsunlimited.co.nz — Advertising Feature
“Our company’s strength lies in its attention to detail and investment in quality. For example, between the group we share new generation computer monitoring equipment which measures key process control parameters to ensure a perfectly moulded part,” King says. “Our philosophy also involves forming strong client relationships and strong business relationships. We have a very good understanding of marketing and sales principles and can work in with customers to determine if a project is viable and question what is required from a marketing and manufacturing perspective to make it work.”
Advanced Sheetmetals are proud to manufacture quality rotational moulds for Moulding Unlimited.
www.advancedsheetmetals.co.nz
) Associates (Back ry Davis Sheena Mason, Ca , ing pp Ho vid Da Directors n Eglinton Ross Hadwin, Ro
E: manawatu@bdo.co.nz • T: +64 6 358 4163 PO Box 1242 Palmerston Nth • www.bdo.co.nz BDO MANAWATU LTD Chartered Accountants & Advisers
As a contract manufacturer, Mouldings Unlimited does not mould any of its own products, and is entirely focused on creating custom-made products to suit customers’ exact requirements. Staff work closely with product designers and mould makers to ensure every concept is turned into reality with speed. They then mould the product in the polymer best suited for the finish quality and strength performance required, with its central location ensuring cost-effective distribution across the country. Mouldings Unlimited’s point of difference is developing a deep understanding of its clients’ requirements and offering solutions to their
Shaping plastics beyond the obvious Call Gary on 06 326 8888 to discuss what’s possible Central Today | June/July 2010 | 45
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Invest $395+gst and get as many great staff as you want for an entire year - guaranteed! Sounds like one of those unbelievable tabloid headlines like;
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Imagine how easy your life would be with great staff. Imagine if you were able to promote yourself and your company so people can actually see what it would be like to work at your place. We are the first in New Zealand to provide this technology. We can actually load video clips of your business showing how great it is to work there, some of the staff and all the amenities you provide. Imagine if you were actually able to view CVs, and actual work wanted ads, so you could see what job hunters want. This way you know when you employ them that you’ve got someone who wants to work in your environment. You’re not squeezing a round peg into a square hole, as many of us do, only to find they move on after a few months. Our revolutionary job site only began the end of 2006 and is growing rapidly. We also have more than 1500 businesses registered as employers, including some of the biggest companies in NZ with more than 9000 employees, right through to some of the smallest companies with only a couple of staff. ..............................................................................................
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Noho ora mai Paula Parkin HR Manager — Te Whanau o Waipareira Trust .............................................................................................. But our major benefit to you is that we only charge $395+gst per year for unlimited use. I’ll repeat that because it does sound too cheap. $395+gst for an entire year to advertise as many jobs as you like. Your next question is no doubt; how can we do it so cheaply? We prefer the expression “cost effective.” Because we don’t need to pay huge overheads or the over-the-top salaries. In fact there’s only a handful of full time staff, and the rest are part time. Just shows you how much the foreign owned corporations are over-charging. To give you a comparison, if you were to run five ads over a year and have a company profile next to your ad it would cost you a minimum of $3225 on one of these sites. On our site it is $395+gst. If you’re not happy with any part of our service, we’ll refund you in full. There’s absolutely no risk! So we’ll at least make one expense low, constant and risk free. ..............................................................................................
“Through an interest in advertising my new home based business and with previous business dealings in the New Zealand property market, I found the site My Job Space NZ. From my first contact with Zack Foreman and his team at My Job Space, I knew that I had made the right decision in spending my advertising dollars with them. Zack is articulate, friendly, reliable, extremely helpful and patient, given that I had minimal
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