valuing industry experience

time talking to counterparts around the world, particularly the Australian Food and Grocery Council, on how to achieve the best outcomes from the opportunities NZFGC has fought hard to achieve over the past decade. It became clear building a suite of support activities for members to equip them for operating under a Code would be critical, hence our partnership with NextGen and Matthews Law.

Sustainability remains another priority, and NZFGC has two important roles assigned by the Government in this area. First, as the co-design partner with The Packaging Forum of the Plastic Packaging Product Stewardship Scheme, and secondly in implementing the Australasian Recycling Label into New Zealand. These, along with other workstreams of our Sustainability Committee, enable us to be a key influencer and active player in what the future will look like.

The New Zealand food and grocery sector is in great shape, if the May Member Meeting and Annual General Meeting of the New Zealand Food and Grocery Council is any indication.

The around 200 delegates who attended not only heard some great speakers but also took full advantage of the opportunity to do some valuable networking that helps the sector perform well, stay connected and in good heart. It was fantastic to get a whole mix of people from across the sector –including, producers, manufacturers, supply chain experts, market analysts, salespeople, merchandisers, business advisers, food and legal experts, and recruitment specialists –in the same room chatting in an informal situation. It was hard to pull people away from their conversations to be seated for the formal proceedings.

This was my first annual general meeting, and it was as fast-paced, interesting, and productive as has each of my first seven months as Chief Executive.

Having the Minister of Commerce, Dr Duncan Webb, update members on the legislation that will bring into being the Grocery Commissioner and the Grocery Supply Code was a coup. He was the first current Minister we have had at our AGM, and his update and clarification on the Government’s thinking on the Grocery Industry Competition Bill was invaluable.

Hearing also from NextGen, NZFGC’s partner along with Matthews Law on negotiating and informing members on the Code, would have assured members they will be in expert hands when that comes into being.

I told delegates in my annual report that getting out and about to meet as many of them as quickly as I could and building relationships with key government officials was my primary focus for my first year. Interacting with members and visiting their operations increases my understanding of the industry and the challenges members face in running their businesses, and I admit I thoroughly enjoy seeing their expertise and passion. I appreciate members being candid, and value the experiences and perspectives they share. These visits have been helpful to inform me about where to prioritise my efforts and what the work programme should look like.

The reform of the grocery industry to address the issues arising from a lack of competition as identified in the Commerce Commission’s Grocery Market Study in 2022 has been a big focus for NZFGC.

In preparation for the Code, I spent

NZFGC played a key role articulating the challenges members experienced as a result of the carbon dioxide shortage caused by the unplanned shutdown of the Kapuni plant due to health and safety concerns.

Significantly more impactful was the devastation caused by the three weather events in January and February. Though they were most significant for primary producers, some of our members experienced disruptions, and we’re all aware of their impact on food prices.

Unfortunately, such increases look like being an ongoing issue well into the current year, and even beyond, and this was something our Chair, Mike Pretty, of Heinz Wattie’s, mentioned in his annual report.

He pointed out that attempts by some to paint the big increases in food and grocery prices as solely down to suppliers showed those people did not – or deliberately chose not to – understand the many underlying issues involved.

He said that for a long time following the end of lockdowns, suppliers did a fantastic job of absorbing the cost increases, but they can do that for only so long – and that’s also true for unexpected events such unplanned outages and weather events.

Staff issues and cost pressures will most likely to be with us for some time to come, making it harder to manage and deliver affordable pricing.

But after talking to many members and visiting their operations you can rest assured suppliers are very aware of what’s going on and are working very hard to find efficiencies and hold price increases in a tough environment.

I look forward to working with the Board, which has some new members as a result of the elections at the AGM, over the coming year to support and be the voice of the members of the NZFGC in what will be a dynamic year ahead. n