Business and Commerce News

The awards are run by the industry association Organic Products Exporters of New Zealand Inc (OPENZ), with New Zealand Trade and Enterprise as principal sponsor. New Zealand’s organic exports are worth close to $80 million annually, with demand for organic product growing steadily worldwide, says OPENZ Executive Director, Jon Manhire.

While FRENZS has been named overall winner, Nelson seafood company Sealord has scooped the award for Export Product of the Year for its organic Greenshell Mussels.

Auckland-based FRENZS was formed in 1988 after founding partner Graeme Carrie sampled an egg in the United States while on a sales trip to market New Zealand wetsuits. “I realised the fresh, wholesome eggs being laid by the chickens in my back yard were much better than what I’d seen in the States.”

Graeme Carrie and partner Rob Darby ran successful trials which proved that naturally healthy hens could be economically farmed outside, 365 days of the year, without artificial intervention.

Their farming knowledge was combined with innovative production, packaging and marketing to develop a strong base for their organic eggs throughout New Zealand and to establish a niche market in California. In the United States FRENZS eggs are sold in natural food and health stores with demand now also growing from more traditional supermarkets and gourmet consumers. For example the Beverley Hills Hotel on Sunset Boulevard buys their organic New Zealand eggs to feed the celebrities who frequent its restaurants.

Since 1991 FRENZS has air freighted 10 million eggs to the United States and Hong Kong, which is emerging as another strong export market.

A total of 18 franchised farms produce the organic eggs and the company grows and harvests around 200 hectares of G.E. free organic maize in Gisborne and Waikato as a menu for the birds.

Graeme Carrie says winning the organic exporter of the year award means a lot to the company.

“We have had huge hurdles to overcome. It’s tough to start a company and learn to export and becoming organic adds an even greater challenge.”

Michael Fountaine, NZTE Senior Client Manager - Food and Beverage, and one of this year’s award judges, says FRENZS’ success comes from staying focused on its vision of selling into niche markets.

“The company developed a smart franchise model to produce eggs in a micro-climate (in the Pukekohe area), using unique technology to supply niche markets overseas. FRENZS has never taken its eye off the ball. The company is proof that the key to success is to do a few things very very well, rather than spreading limited resources over a wide area.”

Nelson-based Sealord is the largest processor and marketer of New Zealand Greenshell Mussels and its organic product, which is a world first, is currently attracting premium prices in the United Kingdom. The organic mussels, which are the fruit of years of investment in scientific research, attracted strong interest at the recent BioFach International Organic Trade Fair in Germany.

Michael Fountaine says Sealord is also reaping the benefits of seeing opportunities in a niche market.

“Its organic product is successfully leveraging off the reputation already established by the company for exporting top quality, fresh fish from the pristine waters around New Zealand.”

Jon Manhire says the quality of entries in the awards this year, which are held bi-annually, was very high.

“As well as celebrating the achievements of individual companies, the awards are a good way of demonstrating the pathways successful exporters have followed and sharing best practise.”

Forest revaluation was negative $17.298 (2003 $27.787), which includes a modest positive valuation movement of $2.348m in the second half year to 30th June, 2004.

Chairman, Peter Wilson, said the result reflected the reality of reduced NZ$ receipts for logs with the export market showing poor returns due in part to continuing high shipping costs and the strength of NZ currency.

Mr Wilson also noted that there had been significant transactions of forest- land over the last year and more in prospect as the industry ownership and cost base adjusted to changing market conditions.

With the company organisational restructure completed and non- core asset sales under consideration, Mr Wilson said the Board was actively addressing future options for the company

The provisional value of merchandise imports for July 2004 is $2,863 million, which is 2.8 percent higher than for July 2003. The main contributors to the higher value of imports for July 2004 were mechanical machinery and equipment; motor spirit, partly refined petroleum and diesel; and electrical machinery and equipment. Partly offsetting these higher values, were lower values of imported aircraft and ships.

The trend for the value of merchandise imports has risen 11.1 percent since July 2003. The value of the New Zealand dollar, as measured by the trade weighted index, has appreciated 4.5 percent since July 2003. The value of the New Zealand dollar has been relatively volatile in recent months, rising 3.5 percent from May 2004, following a fall of 7.2 percent from a peak in February 2004. An appreciating exchange rate generally has a downward influence on import prices, which may lead to an increase in the quantity of items imported.

The estimated value of merchandise exports for July 2004 is $2,490 million, which is 8.2 percent higher than for July 2003. Detailed exports information will be released on 6 September 2004.

McDonald’s Country Manager, Grainne Troute, says continuing to make nutrition information readily available is part of the company’s commitment to educate customers to help them make informed food choices.

“At McDonald’s we know it is important to offer a range of menu options to all our customers – and it is equally important to ensure information about these choices is available.”

saturated fat level in all the fried products has been significantly reduced. All menu options have since been retested, and a redesigned nutrition brochure and website are now available, offering customers comprehensive and updated information about McDonald’s menu.

“We understand the community’s concerns about health and nutrition and that people need to know what they are eating,” says Ms Troute. “Earlier this year we introduced nutrition labeling on our SaladsPlus range – now we have taken that commitment even further. Changes, such as printing nutrition information on the back of our traymats, are an example of the leadership role McDonald’s has taken.” Over the last 12 months, the company has also made significant changes to its menu. Earlier in the year, the SaladsPlus range was introduced; comprising eight items each containing less than nine grams of fat.

In addition, children’s meals have been extended with four additional drink options; children’s Anchor Mega Milk, Apple and Blackcurrant 25% Juice Drink and pump Mini water. Fruit bags containing slices of washed and ready to eat fresh apples are also available nationwide as an alternative to Happy Meal French Fries for no extra cost, or as a separate snack purchase.

Printing nutrition information on the back of traymats is one of a number of initiatives the company has planned for the next 12 months.

Auckland Region is expected to have the fastest growth over this period, with the number of households increasing by 189,000 (45 percent), from 419,000 in 2001 to 609,000 in 2021. Bay of Plenty Region (up 38 percent), Tasman Region (up 34 percent) and Nelson Region (up 28 percent) are also projected to experience growth rates above the national average of 26 percent.

A household is defined as one person usually living alone, or two or more people usually living together and sharing facilities, in a private dwelling.

About 83 percent of the growth in households is projected to occur in the North Island. Household numbers in the North Island are projected to increase by 314,000 (29 percent), from 1.07 million in 2001 to 1.38 million by 2021. In the South Island the number of households will increase by 63,000 (17 percent), from 370,000 to 433,000, over the same period.

The projections indicate that household growth is likely in most areas of New Zealand, including some areas with population decline. Although 39 territorial authorities are projected to have fewer people in 2021 compared with 2001, 23 of these areas are projected to have more households in 2021. The projections also indicate that household change will not be uniform over the 20-year period.

Queenstown-Lakes District is the territorial authority projected to experience the largest percentage increase in households between 2001 and 2021, up 74 percent from 7,000 to 12,000.

The four cities in Auckland Region are likely to experience the greatest numerical growth in households over the same period. Auckland City is projected to increase by 61,000 to 202,000, Manukau City by 44,000 to 133,000, North Shore City by 29,000 to 99,000 and Waitakere City by 28,000 to 87,000. Together, these four cities account for 43 percent of the projected national growth in households.

Average household size is projected to decrease in all territorial authorities, because of an increasing proportion of one-person households and a decrease in the average size of family households. These changes are mainly attributable to ageing of the population, with about three-quarters of people in one-person households being 45 years and over. One-person households are projected to increase in all 16 regions and 74 territorial authorities between 2001 and 2021.

For most areas, the projections indicate more ‘couple without children’ families and fewer ‘two-parent’ families. In 2001, ‘two-parent families’ were the most common family type for just over half of all territorial authorities. In 2021, ‘couple without children’ families are projected to be the most common family type for nearly all territorial authorities. The exceptions are Manukau City, where ‘two-parent’ families will still be the most common family type; and Porirua City, which is projected to have equal numbers of ‘couple without children’ families and ‘two-parent’ families.

A family is defined as a couple, with or without children, or one parent with children, usually living together in a household. ‘Couple without children’ families include couples who will never have children, couples who will have children in the future, and couples whose children have left the parental home.

Narva is a subsidiary of Australian company Brown & Watson International Pty Limited and distributes Projecta automotive accessories on its behalf to retailers in New Zealand. Repco is a nationwide retailer of automotive accessories.

The Commerce Commission laid charges against the two companies following an investigation into allegations of a misleading ‘$5 manufacturer’s cash back’ offer on Projecta battery chargers, promoted through Repco and other retail outlets between November 2002 and March 2003. The offer was promoted by a red sticker on the front of product boxes and in very small print it was stated that ‘conditions apply, details enclosed’.

Chair Paula Rebstock said when the packaging was opened, the only details enclosed consisted of a card that the customer was required to send to the Australian manufacturer, Brown & Watson.

“It was only after a letter was received back from Brown & Watson that it was clear that the

$5 refund did not apply to the item purchased at that time, but to a future purchase of a Projecta product.

“Furthermore, any customer wanting to pursue the offer was required to post items to Australia on two separate occasions, at a cost of $1.50 each, before the $5 could be received,” she said.

“In the Commission’s view, with the conditions that went with it, the offer was far less attractive than customers were led to believe.”

Ms Rebstock said that the Commission was concerned to ensure that manufacturers, suppliers and retailers alike were aware of their responsibilities under the Fair Trading Act.

“It is important that New Zealand subsidiaries of offshore companies, such as Narva, understand their obligations under local law when promoting products and services in New Zealand.

“Retailers must also understand their obligations. In this case, although Repco did not design the promotion, by passing on the offer to customers, it was also liable,” she said.

In his reserved judgment on the Repco case, Judge Deobhakta stated, “The Act has been breached by having the offending sticker displayed on boxes for sale at its outlets. The wording on the sticker was literally correct, but it was misleading by not referring to the $5 being paid on the next Projecta purchase.

He also commented that while Repco had realised the true nature of the offer by May 2002, it made no approach to the suppliers about the misleading stickers until complaints were received in February 2003.

The proposed acquisition is part of a global acquisition that will have the effect of transferring the international yeast, bakery ingredients and US herbs and spices businesses of Burns Philp to ABF Overseas.

Commission Chair Paula Rebstock said the Commission was satisfied that the proposed acquisition would not have, nor would be likely to have the effect of substantially lessening competition in the New Zealand market for the supply of fresh cream and compressed yeast, and the upper North Island, lower North Island and South Island markets for the manufacture and wholesale supply of packaged bread.

A public version of the Commission’s decision will be available shortly on the Commission’s website under Adjudication.

Background

ABF Overseas is a wholly-owned subsidiary of ABF plc, an international food, ingredients and retail group based in the United Kingdom with manufacturing operations across Europe, North America, Asia, Australia and New Zealand.

New Zealand Food Industries is involved in the manufacture of fresh and specialty dry yeast products.

Burns Philp is incorporated in Australia and is a global yeast, food ingredients and consumer-branded food products manufacturer. In February 2003, the Commission cleared Burns Philp to acquire up to 100 percent of the share capital of Goodman Fielder Limited subject to the divestment of New Zealand Food Industries.