MVM VOICE A QUARTERLY DIGEST BY MATAURA VALLEY MILK
March 2019 - issue #01
First Milk
9:41am on the 20th August 2018 marked a very special milestone for Mataura Valley Milk.
Opening Ceremony
November 22nd 2018 opening ceremony with over 450 guests.
Global Sales Report
Champak Mehta provides a market insight in sales report.
Supplier Profile
Featuring Clydevale farmer Pete Benny.
Creating Tomorrow’s Nutrition mataura.com
CREATING TOMORROW’S NUTRITION
issue #01 March 2019
GM report in a seamless supply chain to engage our global nutrition customers and consumers. To achieve this, we will require everyone in our business, directors, shareholders, farmer shareholders, employees and suppliers to be aligned with a single purpose of “Creating Tomorrows Nutrition for a Growing World” and to deliver this through a strategic roadmap executed with passion and precision. Over the next four weeks, management and the board will be reviewing this strategic roadmap, once reviewed it will be shared across the business for everyone’s input and understanding. Before Christmas, I travelled to China to visit key nutritional
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customers; this visit was supported by CAHG with Dr.Xue (Mataura Valley Milk Chair) and his team, it was great to see the relationships CAHG has within China. These relationships were key in allowing us access to the most senior people within these business’s which in turn allowed us to introduce Mataura Valley Millk and discuss further opportunities for mutual co-operation. This now provides a great platform for us to revisit customers at FIC (Food Ingredients China) in Bernard May, General Manager
Having recently returned from the Christmas holidays which allowed me to spend time with family and friends. I want to take this opportunity to recognise and thank all the people across our business who continued to work during this period whether at Mataura Valley Milk or on our shareholder’s farms. Being away from the business has given me time to reflect on the many achievements of the last few years; there have been many, some outlined in this newsletter. As a business it is important we recognise and celebrate what we’ve achieved, learn from the past, but as Louis L’Amour said, “A ship does not sail with yesterday’s wind.” With that, we need to look to the future and enjoy the opportunities and challenges ahead.
March and also host some key nutritional customers here on site during March and April. I would also like to make a special mention to everyone involved in the successful nutritional commissioning and the China market registration. Nutritional trials were completed before Christmas, and we are now in the process of compiling the quality and technical data. Further commercial production is likely to begin in March/April of this year. Feedback from customers and suppliers has been extremely positive, our quality data and results have been exceptional, and I am confident that we are well placed for a successful future as a supplier of choice across the global nutritional market.
2019 opens another chapter in our business, which builds on the previous chapters and a will be focused on delivering great quality, with exceptional service, packaged
Bernard May General Manager
CREATING TOMORROW’S NUTRITION
issue #01 March 2019
First milk 9:41am on the 20th August 2018
marked a very special milestone for Mataura Valley Milk. This was the exact time that the first tanker full of milk pulled onto site in readiness to put the first milk into the plant. Ahead of this very special delivery staff, contracts, shareholders and guests congregated around the milk reception area in anticipation, many using the time to share their memories of the project with the newer members of the team. For many this was the moment that signified the end of a successful project whilst for others the event marked the start of something new and exciting, as first milk meant that first production was not far behind. Following a few words from Bernard, Ian Tulloch spoke about his personal journey and his immense pride in seeing his vision finally becoming reality, he then had the honour of cutting the ribbon and formally welcoming the first tanker into the unloading bay. During the peak season, an average of 23 tankers unloaded milk into the two storage silos. Each raw milk silo is capable of holding 250,000 litres, enough milk to produce 205,000 litres of skim milk and 22,000 litres of cream, or to put it another way enough milk to convert to 35,000kg of whole milk powder or 62,000kg of nutritional powder.
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CREATING TOMORROW’S NUTRITION
issue #01 March 2019
Opening ceremony On the 22nd November, we welcomed over 450 invited guests to the official opening of the plant. After a week of rain and floods, the weather finally broke and the day dawned dry and bright, much to the relief of the organising committee. For some, this was the first opportunity to visit the plant, whilst for others, this was the culmination of many years of work either as an employee or as a contractor.
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Guests were given the opportunity to have a guided walk through the viewing gallery and also take a narrated bus tour around the site.
CREATING TOMORROW’S NUTRITION
issue #01 March 2019
The official ribbon cutting and the unveiling of the commemorative plaque.
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Caption
Caption
CREATING TOMORROW’S NUTRITION
issue #01 March 2019
Grant O’Connor from GEA presenting Bernard and the project team with a replica of the dryer they installed. 06
The day was completed by a gala dinner hosted in the beautifully decorated MLT Event Centre where staff welcomed guests with celebratory drinks and canapes prior to dinner being served.
CREATING TOMORROW’S NUTRITION
issue #01 March 2019
Mark Sainsbury, our MC for the day, sharing his insights into partnerships between businesses, their local communities and the value that our primary industries play in supporting regional development. He then finished up with an entertaining but intimate story involving Sir Edmond Hillary, himself and an empty tin of Edmonds baking powder!
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For many the highlight of the evening was Steven and Rhonda Bamford sharing the story of their journey to becoming Mataura Valley Milk milk suppliers and shareholders.
Brent Robinson spoke on behalf of Mataura Valley Milk staff and shared some of the milestones, challenges and triumphs encountered during the last two years. His speech certainly highlighted just how much effort has gone into bringing the plant to life.
CREATING TOMORROW’S NUTRITION
issue #01 March 2019
Site news FIRST PRODUCT - 21 AUGUST 2018
After years of planning and construction and over 800,000 labour hours, we have produced our first 25kg bag of Whole Milk Powder. Our packing machine enables us to safely and reliably pack high-quality dairy and nutritional products into 25kg (55lb) bags at up to 10MT/hr. 08
The packer features an integrated bag loading and filling system for accurate, dust-free filling. The filled bag is compacted and presented to the integrated heat sealing system without releasing the top of the bag and thereby ensuring the most reliable bag handling operation possible
CREATING TOMORROW’S NUTRITION
issue #01 March 2019
Infant Formula Stage 3 Trials December 2018 The first of our Infant Trials were conducted from the 3rd - 12th December. During this time our systems and procedures were tested. The teams were introduced to operational manufacturing techniques to produce IF in all areas from ERP/MES, Depal, Opti tip, Macro tipping of different powders, dispensing and tipping of micros, batching using oils, and the challenges that come with evaporating/drying and packing the first product.
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Throughout the 10 day period we witnessed steady improvement in all areas as processes and parameters were adjusted along the way to improve final product functionalities. The campaign was successful and the team is looking forward to the next phase of IF production to build on knowledge and practical skills learned throughout this process. Thank you to all involved over this challenging time.
CREATING TOMORROW’S NUTRITION
issue #01 March 2019
Quality
Steve Smith, General Manager Quality and Compliance
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Steve Smith, our general manager quality and compliance
Grading data for key quality criteria has been summarised for the first 100 days of production. This shows
Spec. Max. Protein
Spec. Min.
# Results
Max.
Min.
Avg.
Std. Dev.
-
34
120
37.2
34.9
36.21
0.5535
Varies
26
332
28.7
25.55
27.38
0.5673
4
-
330
3.25
2.17
2.73
0.1592
that the product produced to date
Fat
is of exceptional quality with very
Moisture
consistent results.
Ash
TBR
TBR
119
5.5
4.6
5.144
0.1690
Bulk Density
0.62
0.52
112
0.61
0.49
0.59
0.0150
Titratable Acidity
0.15
-
115
0.10
0.065
0.09
0.0064
Insolubility Index
1.0
0
109
0.70
0.1
0.18
0.0822
WPNI
5.99
1.51
118
2.80
1
2.11
0.3207
For a new plant, this is a phenomenal achievement. The site quality and food safety systems have now been audited six times by AsureQuality on behalf of MPI. All audits have resulted in an “Acceptable” outcome, and the site has now moved up to the next tier of audit frequency, and the most recent audit was at “Step 4” (eight weekly audits).
Aerobic Plate Count
1000
Thermophiles
TBR
Thermo Spores
500
250
0
TBR
395
20
0
TBR
TBR
395
10
0
Mesophillic Spores
TBR
TBR
400
75
0
Enterobacteriaceae
TBR
TBR
424
ND
Listeria
ND
83
ND
Salmonella
ND
83
ND
CREATING TOMORROW’S NUTRITION
issue #01 March 2019
The project to validate that the controls implemented across
to be managed to very exacting regulatory standards,
the manufacturing plant are robust and repeatably produce
and the control of Master Data that defines every aspect
the product intended at the quality required has progressed
of our product and raw material specifications and how
to the point where Mataura Valley Milk has received
those materials are analysed and the testing limits they
clearance from MPI to allow the sale of the powders
have to meet. Both projects are at an early stage where
produced for human consumption. This has allowed the
the framework on which the data will be placed is being
first sales and export of products from the site. This is
designed. Once this is completed our project teams will then
another significant milestone for the site as it brings cash
be tasked with converting the existing data from sources
back into the business.
into the new systems, both of which will act to provide a “single source of truth� for the business moving forward.
Projects have been initiated to implement software systems that will enhance the effectiveness of two key areas of the business: control of documentation across site that needs
Steve Smith, General Manager Quality and Compliance
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CREATING TOMORROW’S NUTRITION
issue #01 March 2019
Sales and Marketing
Champak Mehta, our global sales manager Born and bred in Taranaki with formal
Zealand, where I worked briefly in
training in the medical sciences,
a senior management role at The
economics and business, I’m a former
University of Auckland before re-
physiology lecturer and New Zealand
entering the primary sector as the
Army officer.
inaugural CEO of Potatoes New Zealand Inc. in January 2013.
I joined Fonterra in early 2003 and spent nearly 9 years with them, gaining
Before joining Mataura Valley Milk,
extensive experience in strategy,
I was the co-owner of a large multi-office
business development and general
real estate business in Auckland with a
management in a variety of roles in
former Fonterra colleague of mine.
New Zealand, the US and Singapore. 12
Champak Mehta General Manager – Global Sales
I finished up in Singapore as the
We’ve had a very successful plant
Regional Manager, Asia-Pacific
commissioning in August and as
for DFE, the joint venture between
we develop our nutritional powders
Fonterra and Friesland Campina
programme and bring all our technical
in the pharmaceutical lactose space.
capabilities online, we’re currently focussing on producing Whole Milk
As the General Manager – Global Sales, I manage Mataura Valley Milk’s
In mid-2011, after having spent the
Powder. This allows us to bed in the plant
global customer relationships to deliver
bulk of my Fonterra career offshore,
as well as deliver the best stream returns
its strategic sales and profit targets.
my wife and I returned to New
in the current market environment.
Global Dairy Trade (GDT) prices for Whole Milk Powder (WMP) and Skim Milk Powder (SMP) have dropped away from their highs in April, due in part to a number of reasons:
1
The Europeans have large
2
New Zealand milk production
3
Some of the larger dairy
quantities of SMP stockpiled, some
has increased as the result of
manufacturers in this part of the
of which is approaching 2 years of
warm, dry weather in our major
world have sold large quantities
age. As they sell those volumes
milk producing regions, with milk
of WMP into the market as the
down its driven a softening global
production predicted to grow
Chinese buy up prior to 1 Jan,
SMP price.
4-5% compared to last season.
after which the duty on imports will
Most of this additional milk will be
increase another 10%.
processed into WMP.
CREATING TOMORROW’S NUTRITION
issue #01 March 2019
However, low volume, high quality manufacturers like
Sales are going well with customers approving our samples
Mataura Valley Milk can identify and exploit niches that others
(check out our bright green sample bags, all lined up ready
might not pursue. Low spore Whole Milk Powder for UHT as
to head into market) without any issues. Confirmed orders
well as fat filled powders (currently highly sought after in the
received to date account for over 10,000MT and the first
Middle East) and niche instant / fortified grades represent
shipped product has already reached its destination markets.
opportunities for Mataura Valley Milk to establish itself as a
Feedback from customers has been very positive with
manufacturer of high quality nutritional base powders.
regards to quality and customer service via our distribution
We’re actively following a portfolio approach, planning to split our first year’s production between general trade Whole Milk Powder (WMP), niche commodity grades like Low Spore and instant / fortified WMP and some off the shelf infant formula base powder.
channels. I’ve also just got back from two visits into Asia on October and November, where we see a lot of future demand for our nutritional powders coming from.
Market visits
resulted in opportunities for Mataura Valley Milk to engage. The key takeaway from both these visits is that once we get approved as a supplier, even if it’s for commodity, SMP/WMP, we’ll have the opportunity to demonstrate our capabilities and be able to participate in larger upstream opportunities in the nutritional and infant formula base powder space. Bernard and Dr Xue, our Chairman,
In October, I talked to the regional
Then in early November, Bernard
offices of our distribution partners as
and I attended the inaugural China
well as some large Tier 1 nutritional
International Import Expo in Shanghai.
companies in Singapore and Kuala
The size and scale of this exhibition
Lumpur, who were very impressed with
was staggering with the Exhibition
our plant’s capabilities. As a result of
Centre in Shanghai having over
this trip, we’ve been asked to participate
500,000 sq m of exhibition space.
in tenders for both commodity and
We also headed out of Shanghai
nutritional powders, which we are
to visit two major infant formula
working through as we speak.
customers, both of which have
are recently back from a visit into China to progress discussions with opportunities at a senior level. We’re quietly confident that Mataura Valley Milk is off to a great start on its journey to be the world’s best nutritional business. Champak Mehta, General Manager – Global Sales
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CREATING TOMORROW’S NUTRITION
issue #01 March 2019
Farm update 3 columns
Udo Fuehrer, our milk supply manager Infant formula (IF) stage three trials
The South45°Milk Programme was
were complete before Christmas,
also discussed, and some excellent
the first production of our nutritional
suggestions have been made on
products is expected to start the first
how we can improve some of the
week in April.
conditions and requirements.
We are still having the odd difficulty
Dave and I have been busy recruiting
getting milk temperatures down to the
milk for 2019/2020 supply and have
required levels on some farms although
had great interest. We are now in an
this is getting a lot better than it was,
excellent position of being able to
thanks to some of you who have spent
select the best farms that are most in
a considerable amount of time and
line with our principles and beliefs and
Udo Fuehrer, Milk Supply Manager
money to achieve this.
will add value to our supply base. Final
Hi All,
Grading has been very low with only
It was great to see you all at this
the odd slip up marring what is, in
months Farmer Shareholder update.
general, an excellent overall result.
As you know, last week was Dave’s
What a fantastic turnout!
Thermoduric grades and freezing
final week with Mataura Valley Milk.
points seem to be the main issue.
We wish both Pam and him all the
Production is starting to drop off now
We are now confident that sampling
very best for their future projects
with cows in calf, and the pasture quality
is accurate and will be grading for
and look forward to their continued
is showing signs of more maturity and
freezing point grades from February
involvement with Mataura Valley Milk
seed heads. The lack of rain has seen
onwards. We will continue to monitor
as Supplying Shareholders.
some of our farms go to 16-hour milking,
these results. Please ensure that the
and some have even put the odd herd
wash processes that you have in place
I am looking forward to catching up
onto once-a-day milking.
are correct, ensuring that no water can
with you all on-farm soon. Please
get into the system.
do not hesitate to contact me should
014 14
approval for all new suppliers will be given at our March board meeting.
you have any questions or need any
All the AsureQuality Dairy shed audits are now complete, as are
We held our first Farmer Forum
assistance with our programmes as I
the South45°Milk Programme
meeting in February and covered
am only too happy to help.
assessments. It is pleasing to see the
a number of topics including the
effort some of our farmers have gone
Supplier App. We have a couple of our
to ensure that all relevant information
members doing a beta test on this and
was on hand at these assessments.
once happy we will roll out the changes
This effort was much appreciated and
to everyone. In addition to this, we went
made the process far easier and more
through the FarmScope program and
efficient for everyone involved.
the updated version that is coming out.
Udo Fuehrer, Milk Supply Manager
CREATING TOMORROW’S NUTRITION
issue #01 March 2019
South45ºMilk Programme Quality and Compliance
South45°Milk Programme South45°Milk | Quality & Compliance| Programme 300000
300000
SCC - Monthly Total
250000 200000
200000
170000 127000
100000
50000
50000 Aug-18
12 10
0
6 109000
117000 4 2 2
0 Aug-18
Sep-18 Oct-18
c Grades Per Month 12
5
1 Dec-18
8
6
Sep-18
Nov-18
109000
120000 117000
118000
120000
Dec-18 Oct-18
Jan-19 Nov-18
Dec-18
Jan-19
15
12
10
2
ct-18
Nov-18 Sep-18
12
SCC - Monthly Total 12
6 127000 4
2
0 Oct-18 Aug-18
Sep-18
14
8
Aug-18
117000 127000 118000
Quality & Compliance Thermoduric Grades Per Month Thermoduric Grades Per Month 14
170000
170000
150000 109000
100000
0
|
SCC - Monthly Total
250000
150000
me
Quality & Compliance
Jan-19
Oct-18 Nov-18
6
5 118000 0
1
5 120000 2
0 Nov-18Aug-18 Dec-18Sep-18 Jan-19 Oct-18 Dec-18
Jan-19
1 Nov-18
Dec-18
Jan-19
CREATING TOMORROW’S NUTRITION
issue #01 March 2019
Supplier profile
The chance to sign up as a Mataura Valley Milk supplier shareholder presented the perfect opportunity for Clydevale farmer Pete Benny.
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Pete Benny and partner Anna, Mataura Valley Milk Supplier shareholders
“We were always looking for something a bit different, a bit niche, and this was the perfect opportunity.” Benny and his family milk 950 cows on Camp Hill Farm,
The team put together by Mataura Valley Milk General
and the family also own nearby Kildare Farm, with 620 cows.
Manager Bernard May is of a very high calibre - and are also a down to earth bunch of people, Pete says.
Pete, 34, says they saw the nutrition plant rising at
“It’s all going pretty well,” he says.
McNab and quickly worked out it was a business model he, partner Anna, father David and stepmother Christine,
When Pete is not hard at work on the farm, he enjoys
wanted to be part of.
coaching rowing in Dunedin and Twizel.
CREATING TOMORROW’S NUTRITION
issue #01 March 2019
People Welcome to: Pauline Dore – Export Co-Ordinator Helen Sidler – Administration Assistant Aidan Johnstone – Interim CFO Febbie Sangkop – Assistant Accountant Ray Hannah – Site Services Engineer Hamish Johnstone – Warehouse Operative Jonathan Wang – Nutritional Technician
Farewell to: Dave Yardley – Outgoing Milk Supply Manager We wish Dave and Pam all the best and look forward to their continued involvement with Mataura Valley Milk as Supplying Farmer Shareholders. Mark Burtenshaw – Quality Systems Manager Mark is moving back to Christchurch where he will be closer to his family. Huge thanks to Mark for all the work he has done to date, we wish both Mark and wife Jane all the very best for the future.
Congratulations to: Malcolm and Melissa Wright on their new arrival – Kevin Lee Wright Colin Oliver and Gemma McGarry on their new arrival – Banagher Oliver
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CREATING TOMORROW’S NUTRITION
issue #01 March 2019
Workplace wellness Thank you to everyone who participated in our first round of social sports. 18
Mataura Valley Milk certainly made its presence known with
As a first step, we have recently launched an Employee
teams taking part in squash, tennis and netball. The great
Assistance programme with Eapservices. This is a 24/7
thing about the social format is that it is not just a great way
helpline for employees and their families and offers
of getting to know your colleagues outside of work but as it
professional counselling support for both work-related and
is very informal, gives novices a chance to give it a go and
personal issues.
above all, it is a fantastic way to unwind and have some fun! For more information check out their website or even Please let me know if there are any other sports or activities
download their new app at: www.eapservices.co.nz
that you are particularly interested in, and I can see if we can get enough like-minded people together and arrange something.
I look forward to updating you with the official launch date in the new year!
Looking into the new year, we will be launching our Staff Wellness Programme. This is a very exciting project and will benefit all. The programme will incorporate all aspects of wellness including, movement, mental health, financial support and social interactions.
Paige Harris Reception / Administration Assistant
CREATING TOMORROW’S NUTRITION
issue #01 March 2019
Calendar of events 2019 18-20 MARCH
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MARCH
F.I.C (FOOD INGREDIENTS CHINA) Shanghai
MATAURA VALLEY MILK BOARD MEETING Shanghai
DATE TBC MAY/JUNE
DATE TBC JULY
MATAURA VALLEY MILK AGM
FARMERS SHAREHOLDER UPDATE
3-5
APRIL FEEDING THE FUTURE CONFERENCE 2019 Melbourne
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Contacts Bernard May General Manager E bernard.may@mataura.com P 027 495 2632
David Ward Hilton Haulage Transport Manager E davidw@hiltons.co.nz P 027 232 4900
Udo Fuehrer Milk Supply Manager E udo.fuehrer@mataura.com P 027 6455 269
Sonia Morrison Executive Assistant E sonia.morrison@mataura.com P 027 6455 001
Aaron Moody Farmer Shareholder Director E aaron.moody@moody.co.nz P 027 577 6098
Mataura Valley Milk Limited 19 Pease Street, McNab, Gore 9771, New Zealand PO Box 42, Gore 9740, New Zealand P 0800 686 455 - mataura.com