From mid-2016 Bay of Plenty businesses have a new voice, Bay of Plenty Business News. This new publication reflects the region’s growth and importance as part of the wider central North Island economy.
MARCH 2020 VOLUME 4: ISSUE 3 WWW.BOPBUSINESSNEWS.CO.NZ FACEBOOK.COM/BOPBUSINESSNEWS
BALLANCE RESPONDS
TO ON-FARM CHALLENGES
Ballance Agri-Nutrients is a major Bay employer at
its Mount Maunganui headquarters. (Main picture).
Phosphate from Boucra; a key ingredient for New
Zealand superphosphate. (Inset) Photos/Supplied.
BY DAVID PORTER
Bay of Plenty-based fertiliser
giant Ballance
Agri-Nutrients is sometimes
in the news for what it
sees as the wrong reasons.
Mainly, that is because of
Ballance’s preference for the
specific qualities of the phosphate
rock supplied from the
Western Sahara area in the
south of Morocco categorised
by the UN as a non self-governing
territory.
Morocco contains some 75
percent of the world’s finite
reserves of phosphate. Details
of the differing views on the
phosphate story can be read
in our accompanying story on
page 5.
But chief executive Mark
Wynne told the Bay of Plenty
Business News that the big
challenge for the farmer owned
co-operative was to help its
19,000 farmer members-owners
become future ready.
“That’s primarily it in a
nutshell,” he said, adding that
farmers felt almost under attack
at the moment.
Changing attitudes
towards farming
It had been a reasonably rapid
change from the days when
shepherds and their dogs were
revered, and Footrot Flats and
Fred Dagg were cultural icons,
he said. Farmers had woken up
to the fact that they were in a
Continued on page 3
economy
Central Banks likely to
keep rates down.
P6
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Zespri officially opens
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Hort funding tightens despite
demand for produce.
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COVER STORY
March 2020 BAY OF PLENTY BUSINESS NEWS 3
Ballance
responds to onfarm
challenges
From page 1
new era when people were letting
them know they didn’t like
everything they were doing.
“People talk about the
urban rural divide. I don’t
think there is that big a divide.
But there is frustration around
certain areas where we know
we’ve got to fix the rivers, and
get it together.”
Ballance’s role was not just
to manufacture effective fertilisers,
he said.
“Essentially we need to get
right the four ‘rs’ – the right
product, in the right place, in
the right amount, at the right
time,” he said.
Ballance has about 45
percent of the fertiliser market,
with main competitor
and similarly farmer-owned
cooperative Ravensdown accounting
for about 35 percent,
said Wynne. The market was
highly competitive, with a
total of around 40 importers
making up the remainder of
supply, he said.
The company – which has
around 260 of its 800 New Zealand
staff based in the Mount,
a fertiliser manufacturing plant
at Awarua in the South Island,
and three pelletised feed
operations in Morrinsville,
Wanganui and Ashburton, and
contributes “10s of millions of
dollars” to Bay GDP.
Ballance also runs the urea/
ammonia plant in Taranaki –
site of a fascinating new partnership
with Hiringa Energy
to use alternative energy-produced
hydrogen for fuel.
Creating efficiencies
Wynne emphasised that its
key concern was to do the best
it could to make its farmer
members more efficient and
effective.
“Our innovation programme
essentially wraps
around that mind set,” he said.
“For example, late last year
we launched a new, world
first product, called Sure-
Phos – a low water-soluble
superphosphate,”
SurePhos can reduce the
phosphate solubility (or runoff
into rivers) by up to 75 percent,
said Wynne.
“Everyone talks about Nitrogen
in rivers, but phosphate
is just as bad,” he said
With the new product, the
water soluble element can
be washed off the land in the
event of a major rain event and
Essentially we need
to get right the
four ‘rs’ – the right
product, in the right
place, in the right
amount, at the right
time.” – Mark Wynne
reduce leaching into waterways,
he said.
The new product, which is
currently only being manufactured
in the Mount, had been
getting an excellent market response,
he said.
Wynne said he believed
Ballance’s major tool was its
nutrient specialists.
“We have about 100 people
on the road who are advising
farmers,” he said.
“Now everyone thinks
they are there to flog fertiliser,
but they are actually there
to talk about their farms and
make sure they can help them
achieve their objectives.
“How do nutrients fit into
that farm system? We spend
a lot of time training them
so they understand nutrients,
they understand farm systems
and they know how to tease
out from the farmer their real
issues.”
Building digital capability
Wynne said the company’s
biggest changes in the Bay had
been around digital capability
and innovation, including
tools such as Mitigator. This
allows the creation of an aerial
3D map of a farm taking in all
available information on nutrients
use, stock, farm systems,
contours and soil types.
It operates on the basis of
finding where the majority of
phosphate leaching, nitrate
leaching, your sediment runoff,
and e coli buildup and
ranks the farm in terms of how
best to mitigate the unwanted
side effects.
“I think we’re making
progress.”
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4 BAY OF PLENTY BUSINESS NEWS March 2020
From the editor
CONTACT
INFORMATION
PUBLISHER
Alan Neben
Ph: (07) 838 1333
Mob: 021 733 536
Email: alan@bopbusinessnews.co.nz
EDITOR
David Porter
Mob: 021 884 858
Email: david@bopbusinessnews.co.nz
PRODUCTION
Copy/Proofs/Graphic Design
Times Media – Clare McGillivray
Ph: (09) 271 8067
Email: clare@times.co.nz
ADVERTISING
INQUIRIES
www.bopbusinessnews.co.nz
ELECTRONIC
FORWARDING
EDITORIAL:
News releases/Photos/Letters:
david@bopbusinessnews.co.nz
GENERAL INQUIRIES:
info@bopbusinessnews.co.nz
Bay of Plenty Business News has
a circulation of 8000, distributed
throughout Bay of Plenty between
Waihi and Opotiki including
Rotorua and Taupo, and to a
subscription base.
www.bopbusinessnews.co.nz
Bay of Plenty Business Publications
210/424 Maunganui Road,
Mount Maunganui, 3116
This month’s cover story
takes an in-depth look
at major Bay of Plenty
company Ballance Agri-Nutrients,
which contributes millions
to the Bay’s GDP and has
260 of its 800 New Zealand
staff based in the Mount. Although
in the media because it
sources phosphate from a disputed
area in the Western Sahara
– an issue we also cover
– chief executive Mark Wynne
says the big challenge for the
farmer owned co-operative is
to help its 19,000 farmer members-owners
become future
ready.
“That’s primarily it in a
nutshell,” he said, adding that
farmers felt almost under attack
at the moment.
“People talk about the
urban rural divide. I don’t
think there is that big a divide.
But there is frustration around
certain areas where we know
we’ve got to fix the rivers, and
get it together.”
Ballance’s role was not just
to manufacture effective fertilisers,
he said.
“Essentially we need to get
right the four ‘rs’ – the right
product, in the right place, in
the right amount, at the right
time,” he said.
Meanwhile, the dairy sector
is not alone in struggling for
bank finance, with the horticultural
sector also finding funding
tougher to come by since
the New Year.
Mike Chapman, chief executive
of Horticulture New
Zealand, said he is hearing
anecdotally from growers in
every sector of horticulture -
including kiwifruit - that banks
are proving tight fisted over
funding options for the sector.
“Banks demand security
and they have increased the
security that they demand to
reduce their risk,” he says. “As
a result, the opportunity for the
rural sector to expand has been
reduced. This situation is for
new loans, as well as for the
renewal of existing loans.”
Chapman said the funding
limitations also come off the
back of the new Reserve Bank
capital requirements coming
into play. “It also seems that
if you are going to plant a forest,
there is plenty of support
there, but that is very much a
one trick pony policy,” he said.
And finally, some good
news for the Bay from China.
In our Special Focus on
Zespri’s formal opening of its
new headquarters, we report
that it has also just received
welcome key trademark protection
status against copyright
infringements in mainland
David Porter
China.
The trademark protection
will deliver a boost to Zespri’s
in-market protection through
significantly stronger legal and
administrative powers open to
it for pursuing breaches of its
intellectual property.
Zespri now shares this reinforced
protection with such
high profile companies as Disney
and Ferrero Rocher, and
is the first New Zealand company
to be offered it.
The protection has been issued
by the Shanghai government,
but it is being circulated
throughout China to other
provinces, ensuring it receives
national priority for brand
protection.
Meanwhile, here in New
Zealand, Zespri has been
awarded $15 million in damages
in a civil court case
against an individual who
allegedly sent SunGold G3
plants to China.
BUSINESS DIRECTOR
Pete Wales
Mob: 022 495 9248
Email: pete@bopbusinessnews.co.nz
Bay of Plenty Business
Publications specialises in
business publishing, advertising,
design and print media services.
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COVER STORY
March 2020 BAY OF PLENTY BUSINESS NEWS 5
Phosphate
dispute’s
colonial roots
Ballance Agri-Nutrients recently hosted a delegation of officials from
Morocco’s OCP. The visit was one of several regular visits to New
Zealand aimed at countering the campaign by representatives of
Polisario, the organisation that claims to reflect the views of those
Saharawi people largely living in refugee camps in Algeria.
Hajbouha Zoubeir and M’barka Bouaida, president of the Regional Council of
Guelmim Oued Noun, with Tauranga mayor Tenby Powell during OCP’s recent
visit to New Zealand. Photos/Supplied. (Main picture, Boucra phosphate)
BY DAVID PORTER
Representatives of OCP
– the world’s biggest
phosphate mining company
– spoke to Bay of Plenty
Business News. The Boucra
mine OCP controls is in the
disputed Western Sahara region,
which is regarded by the
UN as a non self-governing
territory under the legal administrative
authority of Spain, but
under de-facto Moroccan civil
and military occupation.
The OCP representatives
emphasized that the Boucra
mine was a key source of social
development for approximately
500,000 Sahawaris living
in the disputed region, and
the 2100 directly employed by
the mine.
The mine supplies approximately
70 percent of the
phosphate imported by New
Zealand. But according to the
OCP officials, the Western
Saharan phosphate represents
only two percent of Morocco’s
total phosphate reserves, most
of which are in the north in undisputed
territory.
Small portion of exports
to NZ
Last year Boucra sent approximately
22 percent of its output
to New Zealand, the balance
going to other countries
worldwide.
Between them Ballance
Agri-Nutrients and its main
competitor, fellow farmers
cooperative Ravensdown, import
about $30 million worth
of phosphate a year from the
disputed territory.
Hajbouha Zoubeir, president,
Phosboucra Foundation,
OCP, said the total Boucra
exports were approximately
“We’ve been visiting
the region for 20
years now and seen
huge development of
infrastructure over
that time.”
– Mark Wynne
400,000 tonnes, compared to
the 11 million tonnes OCP
produced.
“That is nothing to what
we sell around the world,” she
said.
Zoubeir, whose father originally
worked in the mine, is
a Sahawari. She said families
in the region benefit from
OCP’s massive investment
in the community, including
schools, hospitals and social
programmes.
Major phosphate source
Morocco holds around 75
percent of known worldwide
deposits, only around two percent
of which are in the Western
Sahara.
Boucra was originally
owned by a Spanish company
and the regional dispute has its
origins four decades ago when
Spain left its former colony.
Polisaro regards Morocco as
having invaded the region in
1976 when Spain withdrew as
an occupying power, driving
out many Sahawaris into refugee
camps on the Algerian side
of the border.
OCP took over the mine
in 2002, when, according to
Zoubeir, it was not producing
any income.
According to Zoubeir, Boucra
did not make a profit until
2008 and the parent company
still did not receive any income
from it, instead reinvesting it
in the development projects in
the region.
“People say the mine
doesn’t benefit local people,”
she said.
“What I can say is it does.
They say it is the biggest mine
in Morocco – but it is actually
the smallest. They say
the money goes to the north,
whereas none goes to the
north.”
The trade was completely
in conformity of international
rules, she said.
Ballance chief executive
Mark Wynne told Bay of
Plenty Business News that its
superphosphate was made up
of approximately 70 percent
from Boucra, with the remainder
from South Africa, Vietnam
and some from Christmas
Island. The Boucra phosphate
is low in cadmium, and high in
carbonate, making it particularly
suitable for application to
New Zealand’s soils, he said.
According to Ballance,
without phosphate fertilisers,
New Zealand rural production
would fall at least 50 percent,
which equates to a $10 billion
per year hit to the economy.
“We’ve been visiting the
region for 20 years now and
seen huge development of infrastructure
over that time,” he
said.
“We have met many of the
employees who have directly
benefited from the social,
health and educational programmes
that OCP continues
to deliver.”
But ultimately, it was
something the UN needed to
resolve, said Wynne.
6 BAY OF PLENTY BUSINESS NEWS March 2020
Optimistic start for investment markets
Investment Market Update, quarter ended 31 January, 2020
Inflation remains subdued, central banks remain committed
to low interest rates, and trade tensions between the US and
China have de-escalated (for now) with the signing of a Phase 1
trade agreement in mid-January.
WHAT TO DO WITH YOUR MONEY
> BY BRETT BELL-BOOTH
Investment Adviser with Forsyth Barr Limited in Tauranga, and
an Authorised Financial Adviser. Phone (07) 577 5725 or
email brett.bell-booth@forsythbarr.co.nz.
The progress in trade negotiations
between the
world’s two largest economies
appeared to have helped
stimulate improved economic
activity highlighted by improved
commodity prices and
better manufacturing data.
Consumers remain an economic
strength in most developed
markets. Jobs are plentiful,
and real wages and salaries
are rising. Low interest rates
have reduced debt servicing
costs, and strong asset prices,
including for housing, have
made consumers feel wealthier.
Consumers will continue
to spend (outside of coronavirus
fears), and housing construction
is buoyant.
But then came along
coronavirus
Markets don’t like uncertainty,
and coronavirus was an unanticipated
risk.
Health-scares impact economic
activity through factors
such as people spending and
travelling less. If it becomes
significant enough – such as
the coronavirus – quarantine
measures are put into effect
and places of work are closed.
China has quarantined an
estimated 60 million people
and extended the annual Lunar
New Year holiday beyond the
traditional one-to-two week
celebration period. Because
coronavirus is centred in China
where so much of the world’s
manufacturing is based, work
closures can disrupt global
supply chains meaning companies
around the world are
not able to obtain products
and services essential to their
businesses.
No one knows how far
and wide the coronavirus may
spread, and therefore what the
impact on global markets may
be. Other recent series viral epidemics
include SARS (2003),
MERS (2012), Zika (2015-
2016), and Ebola (2018).
The most comparable to the
Wuhan coronavirus is SARS,
which infected thousands
across the Asia Pacific region.
At the start of that epidemic,
the regional global equity
index (MSCI Pacific ex Japan)
dropped -13 percent. In the
US, equities dropped as much
as minus five percent. Markets
did not fully recover until the
virus was contained. China is
now a far larger contributor to
the global economy than it was
in 2003, so the threat the virus
represents is more significant
today. However, if the coronavirus
follows the pattern of
previous epidemics, then the
economic impact will be relatively
short-lived.
Investors still need
returns
The dominant influence on
markets since the beginning
of 2019 has been the world’s
central banks’ commitment to
low interest rates. Last year
the markets climbed a wall of
worry to deliver exceptional
returns despite headline-grabbing
risks such as trade wars,
Brexit, Hong Kong protests,
and US-Iran tensions.
In a world of ultra-low interest
rates, we suspect equities
will likely continue to be
supported by the “TINA” effect.
For many investors “there
is no alternative” (TINA) to
equities to generate an acceptable
investment return. Meaning,
as we have seen in early
February, any pullback in equity
prices will likely be met
with good buyer demand.
Mergers and
acquisitions remain a
feature of the market
An additional consequence of
low interest rates has been a
sharp resurgence in corporate
merger and acquisition (M&A)
activity. 2019 saw a number of
companies acquired and delisted
from the NZX, including
TradeMe, Methven, Orion
Healthcare, and SLI Systems.
Late last year the boards of
both Abano Healthcare and
Metlifecare recommended
takeover offers, which are
pending shareholder approval.
And this year Augusta Capital
has followed suit.
Conditions remain ripe for
M&A activity to continue.
High stock prices provide
companies with a strong takeover
“currency”, interest rates
and funding costs are low, and
private equity funds around
the world have record levels
of cash they are looking to
deploy.
Diversification is the
best risk management
tool
Equity markets finished 2019
very strongly and that momentum
carried on into 2020. The
recent volatility due to coronavirus
concerns should be
taken in that context. Interest
rates remain historically low
and central banks are expected
to provide further support to
markets if needed this year.
The outlook for global corporate
earnings remains positive
although we expect companies
will now be more conservative
around their outlooks.
The future is inherently
uncertain, and markets can always
face unexpected shocks.
Diversification remains the
key risk management tool. We
recommend clients maintain a
balanced approach with diversified
exposure to both equities
(across a range of geographies
and industries) and high-quality
fixed income. This helps
cushion short-term volatility
while also offering the potential
to capture long-term capital
growth.
This column is general in nature
and is not personalised investment
advice. This column has been prepared
in good faith based on information
obtained from sources believed
to be reliable and accurate.
Disclosure Statements for Forsyth
Barr Authorised Financial Advisers
are available on request and
free of charge.
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8 BAY OF PLENTY BUSINESS NEWS March 2020
If you don’t know where you are
going, then any road will do
Although it sounds complex,
an IP Strategy is
simply a plan detailing
how a business will use IP
rights and knowledge to help
achieve its objectives, by developing
its intangible assets
and reducing risk.
Managed well, IP can be a
powerful tool.
For instance, it can help
with attracting and retaining
customers, improving margins,
increasing productivity,
competing more effectively in
the market, or securing a deal
with a partner or distributor.
Is IP Strategy relevant
to me?
IP Strategy is relevant for all
businesses because it secures
and leverages your intangible
INTELLECTUAL PROPERTY ISSUES
> BY DAVID MACASKILL
David Macaskill is a Senior Associate at James & Wells with expertise
in all areas of intellectual property and a particular focus on Intellectual
Property Strategy. He can be contacted at 07 957 5660 (Hamilton) or
07 928 4470 (Tauranga), and davidmacaskill@jamesandwells.com.
The competitive and fast-changing business environment is posing
new challenges for all businesses. An effective tool in combating these
challenges is the development of an intellectual property (IP) strategy.
assets, ensuring that you can
continue to enjoy the benefits
of your competitive advantage.
Many businesses have
never considered how IP
rights are relevant to them and
whether better outcomes could
be achieved by controlling and
leveraging those rights.
The process of developing
an IP Strategy is also an opportunity
to reassess your existing
assumptions and critically
evaluate your business.
Businesses that will find an
IP strategy particularly beneficial
include:
• Existing businesses investing
in R&D and new product
development. These
businesses need to be able
to identify their outputs and
make informed decisions.
• Established or emerging
exporters. These businesses
are exposed to new and
variable threats as they encounter
new markets, unfamiliar
legal considerations
and different competitors.
• Businesses commercialising
a new product or innovation.
These businesses
are often creating a new
market segment, disrupting
an existing market, or competing
with an established
market leader. This can
bring them onto the radar
of the incumbents, who are
only too willing to leverage
their market dominance to
squeeze out the new player.
• Businesses that are raising
money to help start or
grow a business. Investors
want assurance that a business
can operate without
infringement risk, and that
they own the assets critical
to the business’s growth.
• Businesses looking to generate
passive income by
licensing their innovations
to third parties for commercialisation.
These businesses
must have control
and ownership of their IP
rights in order to leverage
them in licensing deals.
• Businesses looking to pivot
or redefine themselves to
compete in a changing
environment.
Basically, any business
looking to maximise return
on investment and improve its
chance of success.
What does an IP
Strategy involve?
The scope and scale of an IP
Strategy is limited only by a
business’s goals and its willingness
to commit.
There’s no one-size-fits all
approach, but that means that
you can easily and cost effectively
develop an IP Strategy
to meet your business’s needs.
An IP strategy may include:
• Integrating and embedding
IP thinking into your overarching
business strategy.
• Identifying early what IP
is owned or generated in
your organisation and how
it will sustain or grow your
business.
• Identifying and capturing
your IP in a timely and systematic
way. This will help
with identifying and controlling
your IP.
• Considering timing of disclosure
of innovations and
when to make decisions.
Confidentiality can mean
the difference between securing
certain IP rights or
not.
How do I develop an IP
Strategy?
Knowing how to start is
often the hardest part of the
process.
Initially it pays to talk to
someone with experience developing
and implementing an
IP Strategy, who can answer
your questions and reassure
you that the investment of time
and effort is justified.
This may be other business
owners and leaders, or an IP
advisor with proven strategic
experience.
The Innovation IP ® program
is a useful tool for getting
started with IP Strategy.
An IP professional will
start by gaining an understanding
of your business perhaps
by talking with key team
members, learning about the
business’s history and growth,
understanding future business
plans and goals, and touring
premises.
What is Innovation IP ® ?
Innovation IP ® , is a two-stage
programme that Callaghan Innovation
part-funds in which
businesses work with an IP
professional to create and implement
a bespoke IP Strategy.
During Stage one, businesses
build on their knowledge
of IP rights and learn
how they can be managed to
achieve the defined business
goals. They identify their key
IP assets and develop an IP
strategy that aligns with their
business strategy. During
Stage two, businesses implement
the strategy.
Where can I find out
more?
James & Wells is an approved
provider for both Stage 1 and
Stage 2 provider of the Innovation
IP ® programme – see our
website www.jamesandwells.
com for more details.
The importance of walking the talk
I am continually
amazed at what
appears to me to
be a growing gap
between what
people say and what
they actually do.
In the business world one
would expect it to be relativity
simple, be clear on what
you are offering, and deliver
on that. Walk the talk – or just
do what you say you are going
to do. In other words, deliver.
These gaping holes appear
everywhere. From how long
it takes to get a cup of coffee
and the quality or lack of said
coffee, through to having supposedly
customer-centric large
companies address customers’
issues.
What’s this got to do with
franchising? I believe the
franchise business model can
address the delivery of walk
the talk in a number of unique
ways.
Franchise systems
provide frameworks
Franchising involves the systemisation
and documentation
of a business process, service
or product.
To be successful as a brand,
a franchise system needs to be
not only be good at, but able
to reproduce the process, and
train others to do it. Reproduce,
refine, develop.
A franchise is also more
likely to monitor feedback
and use it as a proxy measure
of customer delivery versus
solely revenue. Whatever it is,
chances are that it will evolve
over time and benefit from
group learnings.
The franchise mind set
As a business model, franchising
is not for everyone, but a
successful franchisee will be
one that is able to follow a
model or process.
This starts at the beginning
when they apply for or
examine a franchise business.
The franchisor is able to see
quickly whether or not the
franchisee can follow an application
process. If they can
follow the systems here they
are more likely to follow the
systems that are designed to
walk the talk in the business
itself. The franchisee picks up
the system, and one supports
the other.
Human nature helps. As
competitive individuals, franchisees
often share and compare
information on performance,
which leads, no great
surprise, to improved performance.
Corporates may have
similar benchmarking, but for
franchisees it’s far more personal,
which leads us to the last
area where they have a great
incentive to walk the talk.
Everyone has skin in the
game
Here’s the big kicker and it’s a
factor that is very difficult for a
corporate model to emulate. A
franchisee has a personal and
vested interest to deliver.
FRANCHISING
> BY NATHAN BONNEY
Nathan Bonney is a director of Iridium Partners. He can be
reached at nathan@iridium.net.nz or 0275-393-022
Incentive programs, KPI’s
and the like cannot reproduce
for an employee what the personal
skin in the game provides
for a franchisee. It’s personal
– their livelihoods depend on it.
They are closer to the customer
interaction and as such more
motivated to walk the talk.
Add the next layer to this.
A good franchisor will ensure
that the franchisee is walking
the talk. They will receive
coaching, training and if ultimately,
they are unable to walk
the talk, the franchisor will assist
them in walking along.
I am not saying that a franchise
business is going to deliver
the goods each and every
time, because obviously there
are multiple factors involved.
However, starting with
a systemised approach for
a business that has already
proven that it works, delivered
by an individual that has a
personal interest in delivering
well on the business offering,
sounds promising to me.
March 2020 BAY OF PLENTY BUSINESS NEWS 9
Tell ’im he’s
dreaming
A few of you may remember the 1997
Australian movie, The Castle. It was a
comedy classic about a family in Melbourne
whose home was being compulsorily
acquired by the airport – and the family’s
efforts to fight this. A few times in the movie
one of the sons, Steve, reads the local
trading newspaper (two years pre TradeMe)
– and after telling the dad Darryl about an
advert, he responds with the now timeless
line “tell ’im he’s dreaming.”
Now here is where I tell
you what this has to do
with buying a business.
I suggest it is not uncommon
for a prospective business
buyer to go to an accountant all
excited to tell them about the
potential business they have
found to buy. And sometimes
the response is effectively “tell
’im he’s dreaming.”
Now of course at times this
is absolutely the right thing
to say. There are vendors out
there who want moonbeams
for their business – and it is
our job to advise our clients
that that price is too high in
that case.
However, I believe there
are other occasions where we
risk pouring cold water on
an idea – without necessarily
holding all the facts.
It’s not just about the
money
Generally, accountants see a
lot of businesses across many
industries – which means we
see success, but also failure.
We want to protect our clients
from poor decisions. But
what we do not see as often as
business brokers, is what businesses
sell for.
Most of the time when a
client brings us a business to
consider, they do not want to
pay for us to do our own valuation.
They just ask us for our
views on whether it is worth
the price. We must watch out
that we give advice based on
facts – and not any inherent
bias that a value should not be
over say a 3x multiple etc.
There is a risk that if we do
not take the time to understand
the opportunity, the motivations
and plans of the buyer
and the reasons why the business
is asking for a particular
sum, we may do our clients a
disservice.
People buy businesses for
many reasons – and money is
just one of them. Sometimes
it is for lifestyle and location
reasons. Sometimes it is just
to have the opportunity to be
self-employed. Often it is a bit
of all the above.
Now accountants are not
taught what to do about any
of the touchy-feely reasons,
so we gravitate to the numbers
by nature. Sometimes that can
risk souring a buyer on an idea
they were previously excited
about – and that might not be
in their best interest.
As a rule, I think it is fair
to say that most asking prices
bear some relationship to the
valuation the broker has done
on the business. That appraisal
BETTER BUSINESS BUYING
> BY TOM BESWICK
Director at Ingham Mora Chartered Accountants in Tauranga, is a
business advisor who specialises in buying and selling businesses.
He can be contacted on 027-5744- 019 or tom@inghammora.co.nz
should reflect what other people
have paid in recent times
for similar businesses. So, it
should (for the most part) be
a reasonable starting point in a
negotiation.
Overall, I believe the accountant’s
role is to understand
why the vendor is asking
for what they are, and then to
help the prospective buyer
understand the wider opportunities
and risks of the acquisition
– not just the multiple of
profits being asked.
I think this is more valuable
advice then a default setting of
“tell ’im he’s dreaming.”
SELLING
YOUR
BUSINESS IS
A ONCE IN A
LIFETIME
VOYAGE
THE MOST IMPORTANT FINANCIAL DECISION
A BUSINESS OWNER WILL EVER MAKE.
ENSURE IT’S ALL PLAIN
SAILING FROM HERE
As a busy business owner, you may not have had time
to consider what will happen when you want to exit
your business.
That’s where Tabak can help.
A successful sale and smooth transition out of
business ownership depends on achieving a clear
understanding of market conditions and the potential
sale value of your business.
Our team of business brokers are experts in guiding
business owners through this process.
So if you are looking for expert, tailored advice on how
to prepare your business for sale we want to hear from
you.
Contact us today!
203503AA
tauranga@tabak.co.nz
07 578 6329
www.tabak.co.nz
Tabak Limited. Licensed REA (2008)
10 BAY OF PLENTY BUSINESS NEWS March 2020
International gymnastics likely to be a proving
ground for the Olympics. Photos/Supplied.
Trustpower Baypark – the Hub of
Entertainment in the Bay of Plenty
Recognised as the Bay of Plenty’s Hub of Entertainment, 2020 is
keeping up the tradition and is shaping up to be extremely busy.
The calendar of upcoming events is jam- packed full of a diverse
range of things to do and see.
Speedway
Speedway season is in full
swing, with many more action-packed
nights of racing
for the whole family still to
come including February 8 &
22, and March 7 & 21.
If you are interested in
watching the races from the
comfort of one of our Corporate
Boxes contact events@
bayvenues.co.nz us for more
information. Check out www.
bayparkspeedway.co.nz for
further race details.
Tattoo and Art
Extravaganza
The NZ Tattoo and Art Extravaganza
is back again on 14 &
15 March.
Prepare yourself for the best
international and local tattoo
artists festival, indoor and outdoor
zones, live entertainment,
Wearable Art Show, Creative
Village, caravan street art
exhibition, bike stunts, live
bands, ‘The Island’ – with a
variety of food and drinks and
more. Come along to celebrate
creativity & celebrate life.
Netball
Waikato Bay of Plenty Magic
Netball Team play against
the Otago Northern Stars in
Round 2 of the ANZ Premiership
competition on 23 March
at Baypark. The ANZ Premiership
is the premier domestic
netball league in New Zealand.
The new domestic league
was launched by Netball
New Zealand as a successor
to the ANZ Championship, a
Trans-Tasman netball competition
that was contested by
five Australian teams and five
New Zealand teams starting
from 2008.
The ANZ Championship
saw netball reach the status of a
semi-professional sport in both
countries, with players making
significantly higher salaries
than in previous competitions.
Seniors and Travel Expo
The Seniors and Travel Expo
2020 is on March 28 & 29
from 10am to 3pm. The Expo
has expanded to many more
exhibits offering many more
options from Ocean Cruising,
River Cruising, travel within
New Zealand destinations, in
fact, 50 plus destinations to
learn about.
There will be caravans
on show for tripping around,
and lots more options to suit
all tastes and budgets. Colin
explains “The purpose of the
Expo is to provide seniors
with first-hand opportunities to
discuss products and services
usually advertised in magazines
and newspapers alone.”
The Expo is showcasing
a vast range of services and
products for seniors in one
convenient location and it’s all
for free. This year Ray Woolf
entertains us, live at 1pm,
both days, singing 60s and 70s
hits, including songs by Matt
Munro, such as Walk Away,
Born Free, Portrait of my
Love, etc. An event not to be
missed, loads of information
and entertainment, and tastings
for all.
Pacific Rim Gymnastics
Tauranga has secured hosting
rights for the 2020 Pacific Rim
Gymnastics Championships
which will take place 17 to 19
April.
The biennial international
event gathers the best of men’s
and women’s artistic, rhythmic
and trampoline gymnastics
from the 21 eligible Pacific
Rim nations, including traditional
power houses. The US,
Russia, Canada, Australia, Argentina,
Chile and Mexico are
among the countries already
registered.
The Pacific Rim Championships
is one of only three
events on the international
calendar that competes all four
Olympic sports under one roof.
As in other Olympic years,
the event is expected to continue
to play a key lead-in for
Tokyo 2020 Olympians.
The 2016 Pacific Rim
Championships saw several
subsequent Rio Olympians
take the floor including world
gymnastics phenomenon Simone
Biles, alongside New
Zealand’s own Olympians
Dylan Schmidt and Courtney
McGregor.
Schmidt is no stranger
to the Pacific Rim Championships
having won bronze
in 2016 in the lead-up to his
Olympic debut in Rio. In
2012, he gained recognition
on the world stage by winning
gold in the junior division.
2020 will be Schmidt’s fifth
championships.
Trustpower Baypark offer
a complete package for any
event with state of the art conference
and meeting rooms,
full Professional Conference
Organiser (PCO) event management
services, in-house
catering, audio visual services
and marketing/promotions.
Meet at Baypark for your next
event.
For more information on any events, enquiries for Baypark venues, BayStation activities or service on/off site from BayCatering, BayAudioVisual visit
www.trustpowerbaypark.co.nz, email events@bayvenues.co.nz or call 07 577 8560.
SPECIAL FOCUS
March 2020 BAY OF PLENTY BUSINESS NEWS 11
Cutting the ribbon: Craig Greenlees, Doug Voss, Peter McBride, John Palmer and
Dan Mathieson. Photo/Jamie Troughton, Dscribe Media.
Zespri officially opens
new Mount Maunganui head office
Zespri officially opened its Mount Maunganui head office in February as
part of the kiwifruit industry’s marquee Momentum 2020 conference.
With phase one of the
new building complex
completed in
April 2019, phase two has
seen the completion of a new
meeting wing featuring an additional
486 sqm space, five
meeting rooms and a demonstration
kitchen. The building
project saw Zespri work with
a range of construction partners
including Beca, Hawkins,
Rider Levett Bucknall and
Warren and Mahoney.
The office was officially
opened by Minister of Agriculture
Damien O’Connor, with
four previous Zespri Chairmen
– Craig Greenlees, Peter Mc-
Bride, John Palmer and Doug
Voss – cutting a commemorative
ribbon in front of around
500 growers, Zespri customers,
representatives from NZKGI,
KVH and the post-harvest
sector.
Zespri Chair Bruce Cameron
said the completion of the
complex represented a significant
milestone for the kiwifruit
industry.
“We’re very proud of our
story and the contributions
our industry has been able to
make to growers and our local
communities.
“This building was always
designed to be a hub for the industry
and to celebrate its completion
with so many of our industry
stalwarts and customers
during Momentum 2020 is a
fitting way for us to start what
we hope will be another successful
year for our industry.
“With the building’s completion
and our recent brand refresh,
Zespri now has an excellent
platform for its next phase
of growth which we hope will
enable us to create continued
strong returns for our growers
and help people, communities
and the environment around
the world thrive through the
goodness of kiwifruit.”
Multi-functional centre
The total office complex is
now 5264 sqm, with the meeting
wing’s demonstration
kitchen designed to enable the
industry to host tour groups
and provide a multi-functional
space for significant events.
“Last year alone we hosted
nearly 800 visitors and the new
meeting wing provides not
only a stunning space to host
them, but also educate them
about our industry’s history,”
said Cameron.
“The meeting rooms all
carry names of significance
to our industry, recognising
people like Alexander Allison,
Isabel Fraser or Hayward
Wright, and important locations
around the world.”
Within the complex there is
also a redeveloped greenspace
which Cameron said would
provide a fantastic spot for
both the Zespri team and the
We hope that being able to enjoy a fantastic
open green space in the heart of Mount
Maunganui might encourage some of the
next generation to think about a future career
in our industry.” – Bruce Cameron
wider public to enjoy.
“We hope that being able
to enjoy a fantastic open green
space in the heart of Mount
Maunganui might encourage
some of the next generation to
think about a future career in
our industry.”
Reflecting the commitments
announced during Momentum
2020, the building
also features a number of sustainable
design features.
“Embracing sustainable design
principles was certainly a
focus for us in this build,” said
Cameron.
“The complex features
solar roof panels, energy efficient
sensor lighting, grey
water storage, electric vehicle
charging stations, ability to
charge 16 electric bikes and
improved recycling options.
We’ve already seen some efficiencies
and we’re looking
forward to that continuing with
the new wing now in action.”
HAWKINS
is proud to have built
the new head office
for Zespri
12 BAY OF PLENTY BUSINESS NEWS March 2020
SPECIAL FOCUS
Growers urged
to yell louder on
produce benefits
Kiwifruit growers have been urged to sing their own praises louder in
the market to their consumers, as plant-based foods risk stealing the
limelight after several years of phenomenal growth.
Cathy Burns heads up
the Produce Marketing
Association (PMA), a
global trade organisation representing
more than 2000 floral
and produce producers and
accounting for several billion
dollars of global produce trade.
Addressing delegates at the
recent Zespri Momentum conference
in Tauranga, she said
one of the biggest emerging
trends in consumer behaviour
in six regions surveyed globally
was “healthy living”.
“This includes a desire to
shed things from the diet that
are not good for me, and it has
become a proxy term for ‘intelligence’
and ‘social acceptance’,”
she said.
“There are two main pathways
are been seen in behaviour
to achieve that outcome, choosing
organics and plant-based
foods in the diet.”
Organic produce accounted
for 36 percent of total organic
spend in the US, with dairy
products next accounting for
about 18 percent in a sector that
has enjoyed almost 10 percent
per annum growth for the past
10 years.
“For the first time we have
seen the US organics market
break the US$50 billion mark
for sales in 2018 and we do not
see that slowing down at all.”
Obviously, PMA members
got to enjoy the growth organic
produce has experienced
in recent years. But it was the
growth in plant-based foods
and the claims those foods were
making that gave Burns and her
executive most concern.
“We are the original plantbased
food [as produce growers],
and someone else is going
out and talking our story.”
This sector was now at
US$19 billion and expected to
be valued at US$85 billion by
2030.
Stronger messaging
needed
Claims of low environmental
footprint and good health
benefits were already well
substantiated by the fresh produce
sector, but simply telling
people “eating fruit and vegies
is healthy for you” was not
enough, she said.
The kiwifruit sector had already
made major advances by
validating its gut health claim
several years ago.
This had in turn been linked
to a product supported with
strong marketing and connections
to growers, something
consumers were seeking more
of when considering purchases.
The use of videos to tell
product stories on the internet
was a valuable plank for promotion,
given this year videos
are estimated to form 80
percent of all global internet
traffic.
Worldwide, people were
spending 84 minutes a day
watching video on line and 50
percent of video watched on
line is on a mobile device, with
90 percent shared with friends.
Add in the most popular social
media platform of choice,
which is now Instagram, 89
Produce Marketing Association CEO Cathy
Burns: Kiwifruit companies should sing
their own raises louder. Photo/Supplied
percent of users were aged
under 35.
“I cannot think of a better
time to capitalise on what you
are already doing.”
The message about fresh
produce’s health benefits was
one increasingly easy for growers
to back up with evidence.
Burns pointed to health
practitioners in the United
States who “prescribed” fruit
and vegetables to their patients.
A programme in Connecticut,
“Wholesome Wave,” had
55.3 percent of participants reporting
an increase in their fruit
and vegetable consumption.
Over one-third of child participants
showed a decreased
Body Mass Index, the metric
used for measuring obesity,
since enrolling in the program.
Sustainability policy
ramping up
Zespri also used the Momentum
conference to announce its
sustainability policy for heading
towards 2025, by which
time all products used for packaging
would be reusable, recyclable
or compostable.
It has committed to reduce
its packaging footprint by 25
percent per kg of fruit produced
by 2030, building on a
track record of consistent packaging
improvements.
Burns said PMA had identified
consumer concerns over
environmental footprint, and
plastic waste in particular was
a key area influencing consumption
decisions.
In the US, 72 percent of
We are the original
plant-based food [as
produce growers],
and someone else is
going out and talking
our story.”
– Cathy Burns
consumers expected grocery
chains to have a sustainability
policy, and 62 percent expected
the same from their
restaurants.
But recent research out of
Holland had also highlighted
how much of an issue food
waste was. Researchers now
maintain food waste may actually
be almost double the
1.3 billion tonnes a year estimated
by the United Nations at
present.
Zespri chief innovation and
sustainability officer Carol
Ward said the packaging announcements
were based on
the company’s belief in respecting
and enhancing the
natural environment, optimising
natural resources and fostering
health and wellbeing.
Zespri already had 95 percent
of its packaging used
to transport our kiwifruit to
market as cardboard, but realised
there was more to do,
she said. “Today’s consumers
care about what their food is
wrapped in, want to know more
about where it comes from and
are seeking reassurance that
it’s been grown in a way that
enhances the environment and
supports livelihoods.”
We have been a tiny part of
your huge success, from the
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We have been tiny part of
We your have huge been success, a tiny from part the of
their huge very success, begining. from the
very beginning.
Congratulations Zespri International! Beca is proud to support
this great Kiwi brand with a sustainable and resilient HQ that
will be part of a thriving Bay of Plenty business community.
We have been a tiny part of
Jenkins is
your
proud
huge
to be
success,
supplying
from
the kiwifruit
the
industry
with the worlds first fully certified food grade,
very begining.
compostable fruit label.
www.beca.com
Jenkins is proud to be supplying the kiwifruit industry
with the worlds first fully certified food grade,
compostable fruit label.
SPECIAL FOCUS
March 2020 BAY OF PLENTY BUSINESS NEWS 13
Zespri boost to
Chinese trademark
protection
As Zespri works to identify plots of illegally grown kiwifruit in China,
it has also just received welcome key trademark protection status
against copyright infringements in mainland China.
By RICHARD RENNIE
The trademark protection
will deliver a boost to
Zespri’s in-market protection
through significantly
stronger legal and administrative
powers open to it for pursuing
breaches of its intellectual
property.
Zespri now shares this reinforced
protection with such
high profile companies as Disney
and Ferrero Rocher, and
is the first New Zealand company
to be offered it.
Zespri’s general manager
for greater China, Michael
Jiang, said there was significant
kudos for the company to
be awarded such protection. It
was a conscious acknowledgement
of the high profile it held
as a foreign brand in China, he
added.
To be circulated
throughout China
The protection has been issued
by the Shanghai government,
but it is being circulated
throughout China to other
provinces, ensuring it receives
national priority for brand
protection.
Jiang said having the
boosted protection meant
Zespri will be able to act on
companies using the brand for
products other than just fresh
fruit, something it was unable
to do before.
Meanwhile, here in New
The recognition
also reflects the
challenges Zespri
is facing with
counterfeiting in
China, including with
the unauthorised
growing of our
Zespri SunGold
kiwifruit variety
there.”
– Michael Jiang
Fake “Zespri” lookalikes could be a less of a problem, following
Chinese support in curbing counterfeits. Photo/Supplied.
Zealand, Zespri has been
awarded $15 million in damages
in a civil court case
against an individual who
allegedly sent SunGold G3
plants to China. (see accompanying
story)
The trademark protection
afforded Zespri, marks moves
by Chinese authorities to
clamp down on the notoriously
high level of counterfeiting
that has blighted most aspects
of Chinese commerce in the
past.
New trademark protection
laws came into effect from 1
November last year, with the
maximum penalty doubled to
just over US$700,000.
Two years ago, the sale of
more than a million pieces of
fake Dole, Zespri and Sunkist
labels resulted in a company’s
directors and staff being sentenced,
including a two-year
jail term.
Over 100 trays of fake
Zespri fruit were also intercepted
by government officials
in the Xiamen province.
Food fraud is becoming an
increasing focus for Chinese
authorities, with a 40 percent
increase in the number
of food-related cases heard
by Shanghai courts between
2015-17.
Zespri staff have fought an
ongoing battle with companies
duplicating company logos
and packaging, often with only
minor detectable variances
from legal versions.
“The recognition also reflects
the challenges Zespri
is facing with counterfeiting
in China, including with the
unauthorised growing of our
Zespri SunGold kiwifruit variety
there,” said Jiang. “And
is another demonstration of the
support we have received from
Chinese authorities.”
Zespri welcomes successful defence of IP rights
By DAVID PORTER
Zespri has welcomed the successful
result of legal action
taken against a forrmer kiwifruit
grower who took Zespri’s
protected plant material to China,
where it has continued to spread.
The court awarded Zespri almost
$15 million in damages. Zespri will
now consider its options in China in
relation to Gao and his associates,
as well as seek to collect the damages
awarded.
The civil action was launched
in 2018 against kiwifruit grower
Haoyu Gao, his wife Xia Xue and
their company Smiling Face Limited,
after Zespri discovered that
two of Zespri’s protected kiwifruit
varieties had been taken from New
Zealand to China and propagated
by Gao and his associates.
Efforts by Zespri to work with
Chinese authorities to identify and
prosecute owners of the illegally
grown fruit make it the first fruit
company to dispute such an instance
on Chinese soil.
The Court found that Gao had
fraudulently offered to sell Zespri’s
varieties as well as the right to licence
them to parties in China – a
right exclusively retained by Zespri.
It had also facilitated the planting
of Zespri’s varieties on Chinese orchards
and breached his contractual
obligation to notify Zespri of any
infringement that they were aware
of.
Important decision for
growers
Zespri’s chief grower and alliances
officer Dave Courtney said it was
an important decision for New Zealand’s
kiwifruit growers, as well as
for other New Zealand horticultural
businesses. It gave them the confidence
that if they continued to invest
in research and development
to create value for New Zealand,
they would have protections against
New refreshed branding for
Zespri. Photo/Supplied.
those who seek to undermine that,
he said.
“Gao’s actions, along with those
of his associates, put at risk the
livelihoods of New Zealand’s 2,800
growers, directly contributing to
the unauthorised spread of Zespri’s
SunGold Kiwifruit in China which
has the potential to cost New Zealand
communities significantly.
“Zespri has been investigating
the spread of unauthorised plantings
of its varieties in China and has
identified parties associated with
Gao, as well as others who were
involved in the establishment of
SunGold in China and who knowingly
misled Chinese investors and
growers to plant Zespri’s varieties
without authorisation.”
Courtney said the Chinese Government
had strong Plant Variety
Right (PVR) legislation, which it
is in the process of strengthening
further, alongside enforcement
provisions.
Encouraging development
“We’re very encouraged by that, as
well as by China’s broader commitment
and efforts to clamp down on
other types of intellectual property
infringement in China and we hope
to work alongside Chinese officials
to strengthen the protections of investors
and IP holders further. “
“New Zealand and China are
both in the process of bringing their
PVR legislation into line with the
latest UPOV [International Union
for the Protection of New Varieties
of Plants] standards. This decision
is a clear recognition of the importance
of governments continuing
to progress multi-lateral protection
mechanisms for innovation and intangible
assets.”
Courtney said investment in new
plant varieties was becoming an increasingly
important way of creating
value around the world and the
sector needed to protect intellectual
property rights to encourage that investment
and to feed the world.
“Zespri is talking to other plant
variety rights owners in New Zealand
and around the world about
how we can work together to protect
those rights for the benefit of growers
and consumers who receive the
benefit of the extensive quality and
food safety innovation and practices
that plant variety owners place
around their protected varieties.”
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14 BAY OF PLENTY BUSINESS NEWS March 2020
SPECIAL FOCUS
New sustainability
commitments
Medal awarded to
Ian Greaves
Zespri has announced a new commitment to make all of its
packaging 100% reusable, recyclable or compostable by 2025.
By DAVID PORTER
The announcement is one
of a suite of sustainability
commitments
shared recently with growers,
consumers and suppliers at
the New Zealand kiwifruit industry’s
marquee conference
– Momentum 2020: Standing
Up and Standing Out.
Zespri also revealed commitments
that by 2025, any
plastic packaging will be
made from at least 30 percent
recycled plastic, and
that it will reduce its packaging
footprint by 25 percent
per kg of fruit produced by
2030, building on a track record
of consistent packaging
improvements.
Chief Innovation and
Sustainability Officer Carol
Ward says the packaging announcements
are based on the
company’s belief in respecting
and enhancing our natural
environment, optimising natural
resources and fostering
health and wellbeing.
“While we are already one
of the lowest impact foods
produced, we can do even
better,” she said.
“Today’s consumers
care about what their food
is wrapped in, want to know
more about where it comes
from and are seeking reassurance
that it’s been grown
in a way that enhances the
environment and supports
livelihoods.
Zespri already had 95 percent
of its packaging used
to transport our kiwifruit to
market as cardboard, but realise
there was more to do,
she said.
New Plastic Economy
commitment
The announcements follow
Zespri joining some of the
world’s biggest brands in
2019 to sign up to the Ellen
MacArthur Foundation’s
New Plastics Economy
Global Commitment and
working with its industry
partners to create a circular
economy for plastics.
Ward said a dedicated
work programme focusing
on sustainable packaging
had been established to
build on actions already
undertaken by Zespri, including
reducing the weight
of liners used in cardboard
transport packs, trialling fibre-based
solutions for pocket-packs,
implementing improved
recycling options, and
eliminating all unnecessary
packaging.
Ward said this was a
time of great opportunity for
Zespri, and the commitments
were designed to enable the
industry to succeed in the
right way, helping to both lift
people up and take better care
of our environment.
“We’re confident these
commitments reflect what
matters most to our customers
and industry partners, and
will allow us to deliver better
value to our consumers.”
Other Zespri sustainability commitments
• Carbon positive by 2035
• Zespri will disclose its climate risks and opportunities
by August 2021 and develop an industry-wide climate
change adaptation plan by December 2022
• By 2025, the industry will more effectively monitor nutrient
inputs and losses as well as its impact on water.
The kiwifruit industry’s Fresh Carriers Hayward
Medal recognising outstanding contributions
has this year been awarded to Ian Greaves,
for the life-saving pastoral care he provided
the industry during the Psa outbreak.
Kiwifruit Industry Advisory
Committee chair
and Zespri director Tony
Hawken presented the medal
to Greaves at the industry’s
Momentum 2020 conference
dinner, recognising the efforts
he put in to caring for the
health and wellbeing of growers
during the Psa outbreak
through his Grower Support
Network.
“The judging panel unanimously
awarded Ian this
year’s Fresh Carriers Hayward
Medal,” said Hawken.
“The outbreak of Psa was
truly distressing for our kiwifruit
growers and the wider industry,
and an event that would
forever change the trajectory
of our industry, putting those
involved in the industry at the
time under real pressure.
“However, as a grower himself
during the outbreak, Ian
stood up to advocate for mental
health awareness and suicide
prevention within the kiwifruit
industry. He established a
support system that previously
didn’t exist, and which ultimately
saved lives.”
Hawken said Greaves
clearly met the judging panel’s
criteria, which assessed
the nominee’s length of service,
the benefits from their
contributions, their leadership
within the industry, their selflessness
and the legacy they
had created.
During the Psa outbreak,
Greaves brought together a
team of volunteers and created
a pastoral care plan which
provided a variety of services
to support growers. Under
his Grower Support Network
which launched early in the Psa
outbreak, he helped arrange industry-wide
seminars, counselling,
grower discussion groups
and other support avenues in
growing regions across New
Zealand.
These services not only
empowered growers to ask for
help but supported the collaboration
of the wider industry
during a stressful and unprecedented
situation.
His work is now used as an
example for other rural industries,
and Greaves was the recipient
of the Kiwibank Local
Hero Award in 2013 and also
awarded the inaugural HortNZ
Hayward Media winner Ian
Greaves. Photo/ Dscribe
Media Jamie Troughton.
President’s Award in 2015 for
his life-saving pastoral support.
“The Hayward Medal was
established in 2012 to honour
the dedication, knowledge, excellence
and passion of the kiwifruit
industry’s world-class
leaders, and Ian has truly been
a leader in our kiwifruit industry,”
said Hawken
“Ian showed true leadership
and selflessness during the Psa
outbreak,” said Hawken.
“Our wellbeing is so important,
but often in times,
rarely considered or talked
about. Ian understood the anguish
our people were feeling,
and he was motivated to step
up, even though he was an affected
grower too.”
Hawken noted Greaves’
compassion extended outside
of kiwifruit and included funding
and establishing micro-enterprises
in India that employ
people out of poverty, and acting
as chairman and trustee of
The Life Foundation.
Congratulating Zespri for another successful
Momentum conference and the opening of
their new global head office.
www.dms4kiwi.co.nz Ph 07 578 9107
Photo/Sam Hartnett
Rider Levett Bucknall is proud to have
provided Quantity Surveying services on
Zespri’s new
Mount Maunganui
head office
The development, which embraces sustainable design
principles, will provide Zespri an excellent base for growth
and also a place for the wider public to enjoy and learn
about the Kiwifruit industry.
A thousand
little
decisions
create big
wins.
RLB.COM Tauranga 07 579 5873
March 2020 BAY OF PLENTY BUSINESS NEWS 15
Hort sector finds funding tight
The dairy sector is not alone in struggling for bank finance,
with the horticultural sector also finding funding tougher to
come by since the New Year.
Mike Chapman, chief
executive of Horticulture
New Zealand,
said he is hearing anecdotally
from growers in every sector
of horticulture – including kiwifruit
– that banks are proving
tight fisted over funding
options for the sector.
“Banks demand security
and they have increased the
security that they demand to
reduce their risk,” he told Bay
of Plenty Business News.
“As a result, the opportunity
for the rural sector to expand
has been reduced. This
situation is for new loans, as
well as for the renewal of existing
loans.”
Chapman said the funding
limitations also come off the
back of the new Reserve Bank
capital requirements coming
into play.
“It also seems that if you
are going to plant a forest,
there is plenty of support there,
but that is very much a one
trick pony policy,” he said.
All funding aspects
getting tighter
Chapman noted all aspects of
financing for orchardists have
got tighter, whether for seasonal
financing or for orchard
projects.
“It may not be a silly idea
to have a conversation with
banks about the fact the sector
is very positive, and there is
plenty of opportunity there to
do more with it.”
In the Ministry for Primary
Industries Situation and
Outlook for Primary Industries
Report, released prior to
Christmas, apple exports were
expected to be up 7.2 percent
to almost 1 billion dollars this
year, kiwifruit to be up 8.6 percent
and approaching $2.5 billion,
and wine up 1.8 percent
to $1.8 billion.
Chapman said there was a
sense in the horticultural sector
that growers were being
treated like their more indebted
dairy farming colleagues when
it came to securing finance.
The dairy sector accounts
for two thirds of the $61 billion
agricultural debt market, compared
to less than 10 percent
for horticulture.
Debt per dollar of exports
equates to $2.79 for dairying,
compared to only 68c for
horticulture.
Dairy debt averages $2.9
million per dairy farm business,
compared to $523,000
per horticultural business.
Kiwi demand still strong
MyFarm investment syndication
company received an unprecedented
40 enquiries for
its latest kiwifruit orchard syndication
project, located near
Edgecumbe.
Con Williams, MyFarm
head of investment research,
said the level of enquiry was
unprecedented, and indicated
there was a strong appetite
among investors to put funds
into a promising sector.
He said it was an unusual
point in time in the sector,
when predictions were positive
across almost all crop types
for strong market returns, but
money was hard to get.
“It would not be as hard
to raise the funds as it is in
dairying right now, but it is
definitely harder than it should
be.”
Williams said funding for
new green field projects was
particularly hard to come by,
with banks spooked by the delays
in cash flow new projects
inevitably involve.
He agreed restrictions
around foreign land ownership
in New Zealand were only further
constricting the availability
of capital here.
It is only possible for foreigners
to purchase up to 24.9
percent of farm or orchard land
greater than 5ha by gaining
regulatory approval.
Investors getting more
innovative
Banks demand
security and they have
increased the security
that they demand to
reduce their risk.” –
Mike Chapman
Hort NZ CEO Mike Chapman: All funding aspects for
orchardists have got tighter. Photo/Supplied.
Syndication or private purchases
were often becoming
the main vehicle for orchard
purchases, outside of iwi deals,
and investors were having to
get more innovative about how
they structured deals.
MyFarm’s latest syndication
incorporates lease income
and orchard profit.
Williams said leasing was a
common income stream for kiwifruit
and viticultural operations.
His company was trying
to take more of a commercial
property approach to earning
streams from orchard operations,
something that worked
better for some operations than
others.
He said shortages in root
stock plants for establishing
apples and cherries can push
development times and costs
out further in new developments,
making bankers less
likely to lend on those longer
time frames.
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16 BAY OF PLENTY BUSINESS NEWS March 2020
Production for export
While there’s unprecedented demand around the country for
industrial property from logistics, warehousing and distribution
companies, there’s also increasing need for industrial space to
cater to food and beverage processing, and the production of
complementary medicines, cosmeceuticals and nutraceuticals.
According to Plant &
Food Research, a
New Zealand government-owned
Crown Research
Institute, the international food
and beverage industry is growing
at around five percent a
year and global expenditure on
food products by consumers is
expected to reach US$20 trillion
by 2030.
It says key trends for new
product development are in
health, convenience, naturality
and sustainability with the intrinsic
“health halo” of natural
produce meaning products derived
from fruits and vegetables
are highly sought-after in
the global marketplace.
Manuka honey led the way,
but “functional foods” – that
is, foods that offer benefits beyond
basic nutrition – is one of
the fastest growing segments
of the global food industry and
it’s taking off in New Zealand.
There’s a lot of talk about
mussel derivatives to help
combat inflammation, cherry
concentrates deemed to assist
with sleep, probiotics said to
improve gut health, trending
superfoods like blackcurrants
said to aid exercise recovery
and post-exercise immune
function, along with extracts
from seaweed, kelp – even native
tree ferns with health-giving
claims.
New Zealand is also jumping
on the “nootropics” train.
These are plant-based supplements,
and other substances
that may improve cognitive
function, particularly executive
functions, memory, creativity,
or motivation, in healthy
individuals.
And then there’s plant-derived
protein products which
are starting to make waves.
Agri-food exports
expected to grow
Plant & Food Research says
the broad category of agri-food
exports from New Zealand are
predicted to treble by 2025, to
around NZ$58 billion. This is
primarily due to the production
of new high-value food and
beverage products, combined
with value chains that enhance
the delivery of New Zealand
products to its premium
customers.
An example of a business
with a consolidated presence
within an industrial estate, is
Hamilton-based dairy biotech
company Quantec which operates
from the Waikato Innovation
Park.
Quantec has received multiple
awards, including the
Cawthron Institute Innovation
Award, for its specialist approach
to extracting high-value
bioactives from natural ingredients
which are then developed
into proprietary
ingredient formulations
for use in human and animal
products.
One of Quantec’s main
business growth areas is within
the gut health and immune
health sector in China. Quantec
is combining omega-3 oil
with an aqueous milk protein
powder to produce a high-end
innovative nutraceutical product
to be marketed to the mother-baby
supplement market.
Natural Health Products
NZ, a national industry organisation
representing the natural
products, functional foods,
complementary medicines,
cosmeceuticals, and nutraceuticals
industries, says New
Zealand’s natural products industry
is worth NZ$1.4 billion
annually and growing. Major
markets are already established
in Asia and North America,
and there’s a developing presence
in Europe.
A report released by research
and consulting group
Coriolis in conjunction with
the Ministry for Business, Innovation
and Enterprise, The
Investor’s Guide to the New
Zealand Processed Food Industry
2017, says New Zealand
has robust credentials to attract
new investment in food-related
industries and the potential to
drive strong export growth.
It says as a country, we have
significant untapped potential
to generate more product, to
add value to large volume of
raw material ingredients which
at present are exported as unprocessed
commodities, and
to bring a distinct and unique
edge to the sector.
This signals that there will
be increasing demand for industrial
space to accommodate
this growing sector and
it is likely that location will be
pinned to areas with good distribution
links for export.
www.bayleys.co.nz/workplace/industrial/insights/
production-for-export
At Bayleys, we believe relationships are what businesses are built on and how they
succeed. We understand that to maximise the return on your property you need:
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A business partner that understands your views and goals
Contact the Bayleys Tauranga Commercial Property Management team today.
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07 579 0609
jan.cooney@bayleystauranga.co.nz
SUCCESS REALTY LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008
ALTOGETHER BETTER
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March 2020 BAY OF PLENTY BUSINESS NEWS 17
Prepare your
business for
the minimum
wage increase
The Government has announced that from 1 April 2020, the
minimum wage is going to increase from $17.70 to $18.90 per
hour. This is an increase of 7.27 percent or $1.20 per hour. It
will mean an extra $48 per week before tax for employees on
minimum wage working a 40-hour week.
MONEY MATTERS
> BY STEPHEN GRAHAM
Stephen Graham is a Director and Managing Partner at BDO
Rotorua, Chartered Accountants and Advisers. To find out more
visit bdorotorua.co.nz or email rotorua@bdo.co.nz
The training/starting out
wage also sees an increase
from the current
rate of $14.16 to $15.12 per
hour on the same date. The
training/starting out wage rate
is set at 80 percent of the adult
minimum wage rate.
The Government has indicated
a likely further increase
to lift the minimum wage to
$20 per hour in 2021. So, what
can you do to prepare your
business for this change? Here
are some practical tips to help.
Update your payroll
system
Most payroll systems should
either automatically update or
provide you with instructions
on how to adjust settings to
manage the increase from 1
April. We recommend that you
confirm well in advance if any
action is required to ensure
compliance.
Consider moving to a
cloud system
If you are currently using a
manual or desktop payroll system,
it is timely to consider the
benefits of moving to a cloudbased
solution. There are many
options available to suit the
needs of your business.
Cloud-based means you
can access payroll from anywhere
with an internet connection,
ensures that you are always
using the most up to date
version of the software, and
means you are not reliant on
in-house backup procedures.
You may also be able to link
with time sheeting and finance
systems to reduce the opportunity
for data input error.
Prepare an annual
budget
Understanding the financial
impact of the increase is vital
so you can plan and make adjustments
as necessary. Preparing
an annual budget on a
month by month basis with the
help of your accountant will
highlight the effect of the increase
both on wage cost and
holiday pay liability.
Using tools such as Spotlight
or Futrli can help you
visualise the impact in a user-friendly
format.
Review other employees’
wages
The minimum wage increase
is likely to have a bearing on
Preparing an annual budget on a month by
month basis with the help of your accountant
will highlight the effect of the increase both
on wage cost and holiday pay liability.
wage expectations from those
employees who are currently
receiving more than minimum
wage because of their skills/
loyalty.
You may wish to consider
whether to maintain wage
parity across your employees
by offering increases to those
above the current minimum
wage.
As this increase is not required
by law (provided they
are already on or above $18.90
per hour), you could stagger
these.
There may also be other
non-financial benefits, such
as flexitime or training, that
you could offer to those more
skilled employees in order
to keep them motivated and
engaged.
Review your pricing
strategy
All other things being equal,
the cost of operating your business
will increase on 1 April
2020. Just as you would look
at your options if any other
supplier passed on increased
costs, the increased wage cost
should prompt a review of
your current customer pricing,
if this has not been carried out
recently.
Is your market such that
you could raise prices across
the board incrementally? Or
should you focus on increasing
selected product/service pricing
only? Other ways to look
at pricing include reviewing
discounts offered and how you
bundle goods/services.
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18 BAY OF PLENTY BUSINESS NEWS March 2020
CONNECTING
BUYERS AND
SELLERS OF
QUALITY
BUSINESSES
First on the scene
Photos from the Tauranga Chamber of Commerce’s BA5 networking event hosted by
BlueOcean at the Tauranga Club.
Photos by Laval Photo & Video
When is the right time to sell
your business? Right now.
At TABAK, we promise to guide
you through the sales process
with focus, integrity and
complete confidentiality.
1 2
1 Henrik Arlund, BlueOcean. 2 Fiona Lysaght, Lysaght Consultants, Dale Koerner, BlueOcean, Leanne Elder, and Lee Hunter
and Roland Leemans, BlueOcean.
FOCUS • INTEGRITY
CONFIDENTIALITY
3
4 5
3 Sam Tabac, HOBEC and Aaron Fitchett, Design Clad. 4 Sam Williamson, Business Networks International (BNI) and Mark
Collins, n-Gon Group. 5 Jacqui Wren-Hilton, Wharf42 and Matt Cowley, Tauranga Chamber of Commerce.
WHY TABAK
INDUSTRY EXPERIENCE
REALISTIC APPRAISALS
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7
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p. 07 578 6329
e. tauranga@tabak.co.nz
w. tabak.co.nz
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9 10
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Ramage, The Artistry Online. 10 Kate Taitimu and Nicole Langton, Alignz Recruitment.
March 2020 BAY OF PLENTY BUSINESS NEWS 19
All category winners from last year’s Bay of Plenty Export Awards: (from left) Dan Meade and Hemi Coates, Manaaki Adventures;
Brian Smith, Automation & Electronics NZ; Murray Denyer, Cooney Lees Morgan; Ruby Grant, Heilala Vanilla, and Greg Jarvis, Bluelab.
Bay Export awards open
for nominations
Entries are now open for this year’s Bay of Plenty ExportNZ Awards 2020,
sponsored by Zespri International, in early March, says ExportNZ Bay of
Plenty executive officer Joanna Hall.
The organisers of the
Bay of Plenty ExportNZ
Awards are
encouraging local businesses
to nominate companies and
people in their networks
that deserve showcasing for
their contribution to the export
sector for what will be
the 30th anniversary of the
awards, to be held on 19
June.
“We welcome exporting
companies who’d like to get
recognition for their hard
work, objective feedback
from experienced judges,
and boost their staff morale
to enter the 2020 awards,”
said Hall.
The theme for this year’s
awards will be announced in
early March and Hall said
the event was sure to be ‘out
of this world”, said Hall.
Entries close Friday, 8
May, 5pm so ExportNZ
BOP is encouraging early
nominations.
For further information,
please contact Joanna Hall at
joanna@exportnz.org.nz
THE CATEGORIES THIS YEAR ARE:
• Best Emerging
Business – sponsored by
You Travel
Recognising success for exporting
businesses with up to
five years’ history of international
operations with growth.
• Excellence in
Innovation – sponsored
by Page Macrae
Engineering
Recognising success in developing
and commercialising innovation
in international markets,
incorporating intellectual
property, strategy, processes,
and monitoring.
• Best Medium-Large
Business – sponsored by
Sharp Tudhope Lawyers
Recognising success for exporting
businesses with total
annual revenue over $5
million.
• Export Achievement –
sponsored by Beca
Recognising a particular individual
within a business who
has made a material contribution
to their export success
through processes, products or
technologies, team dynamics,
ultimately resulting in export
growth and profitability.
New co-working space at The Lakes aims
to support contemporary working styles
A drive to support small businesses
in the local community has resulted in
the opening this month of Bloom Co,
Tauranga’s newest concept in shared
work, meeting and event space.
Founders Jade Maddox
and Sheree Merrick said
that Bloom Co provided
a workplace home. In fact, it is
located in a former show home
in The Lakes.
The Bay had become a real
magnet for entrepreneurs doing
wonderful things, but many
were also feeling the limitations
and isolation of their
working space, they said.
Bloom Co is a space to support
them, a place where they
can thrive individually and in
the company of others, and an
alternative to more traditional
leased offices, they added.
“Bloom Co draws inspiration
from the need for connection
and collaboration amongst
independent businesses,” said
Jade Maddox. “It also fills a
local need for small, beautiful
spaces for events, workshops
and classes.”
Bloom Co provides options
for full time, part time or casual
office and meeting space, with
all the expected professional
resources included.
From glass whiteboards and
ultra-fast internet to ergonomic
chairs and standing desks,
Bloom Co is fitted out to high
standards, but it looks less like
an office and more like a beautifully
crafted day spa, according
to Maddox.
Ideal for different
businesses
The founders said the space is
ideal for different businesses,
community groups, and ventures
to coexist and gain the
benefits of collaboration. The
workspaces range from individual
rooms or offices
through to open plan co-working
spaces.
The larger break-out spaces
are ideal for groups, catering
for more than 30 people for
meetings, seminars or community
events.
“What makes Bloom Co
unique is the unexpected – a
zen garden surrounded by
bamboo and a waterfall, indoor
plants, essential oil diffusers,
Bloom Co co-founder Jade Maddox: offering a new
approach to the co-working environment. Photo/Supplied
contemporary art and comfy
chairs to sink into,” she said.
Bloom Co’s location in The
Lakes, a community-focused
suburb, was a deliberate move,
said Maddox, in order to offer
an environment that reflected
the more serene, laid-back vibe
of the region.
“The feel of this suburb,
designed with the community
in mind, completely fits our
ethos. We are away from the
hustle and bustle of the city,
surrounded by homes, cafes,
small businesses, and a whole
lot of greenery.”
Jade Maddox said that
Bloom Co is committed to
making a positive difference
in the community, supporting,
mentoring and collaborating.
“Supporting local charities
is also an important part of
our culture,” she said. “When
a new member joins, we plant
a tree locally through Trees
That Count, and have already
funded the planting of over 100
trees.”
Bloom Co will be at the
Smarter Business Event on 18
March, and can be contacted
directly at: hello@BloomCo.
nz, or Jade Maddox on 021
0616961.
20 BAY OF PLENTY BUSINESS NEWS March 2020
Beware of ‘bad credit’ loans
CREDIT MANAGEMENT
> BY NICK KERR
Nick Kerr is Area Manager BOP for EC Credit Control NZ Ltd.
He is also a director of International Private Investigations Ltd.
Nick can be reached at nick.kerr@eccreditcontrol.co.nz
In the responsible lending code (June 2017) it is suggested that one
role of a responsible lender is to “assess whether a borrower will
make repayments without substantial hardship, the lender should
conduct more detailed inquiries for products or borrowers where the
consequences of default are serious or there is a greater risk of default”.
Unfortunately this seems
to be at odds with a
great deal of the lender
behaviour displayed by information
that is in the market as
of writing this article.
Just this evening while
scrolling through Facebook’s
marketplace looking at cars
that my wife will never let me
buy, I have seen three posts advertising
“quick and easy” auto
loans specifically encouraging
“beneficiaries with bad credit”
to apply for loans – and that
was over a 30 minute period.
In the past I would have
thought that these “Bad
Credit” loans would be for
small amounts. And surely
they would not have been for
people with really bad credit,
ie outstanding debts. But after
being involved in more than
300 repossessions, hundreds of
investigations and consulting
to numerous financial institutions,
the things I have seen
have proven that assumption is
untrue.
I have seen $10,000-plus
loans given to applicants with
no job, numerous outstanding
loans and in several cases court
judgments for fraud involving
accessing credit. When I say
bad credit, I am talking about
credit scores of 180 out of
1000. To put that in perspective,
such a rating gives an
approximate 18 percent likelihood
of the applicant paying
the debt based on their fiveyear
credit history.
Now I know that this looks
bad from the lender’s perspective.
But it can be just as bad or
worse from the borrower’s perspective
and can lead to severe
hardship.
You are considered insolvent
when you are unable to
pay your debts when they fall
due. The very fact that applicants
have unpaid debts when
they are granted additional
credit means, in my opinion,
that a current insolvency is
being made worse and the
chances of the applicant becoming
debt free is once again
reduced.
Although many reputable
lending institutions have software
and strict processes for
determining affordability ratios,
there are quite a few lenders
that rely on the applicants’
own supplied information or
the information passed on to
the lender via a finance broker
who receives a fee for each
successful loan drawn down.
Readers may think it
doesn’t really matter because
if the loan is secured against a
car, then the lender can simply
repossess it and sell it to recoup
their money.
Not so. The following is
a real situation that proves
why this is not always the
case. A debtor financed a car
for $10,000 from a yard with
a $200 loan establishment fee,
plus a $1200 mechanical warranty.
The debtor made none
of the agreed $193 weekly
payments, damaged the car
while drink driving, and after
three months the car was repossessed,
incurring around
$1500 in repossession, storage,
default and admin fees.
The car was auctioned and
sold for $3450 (the word repossessed
in an auction or listing
generally halves the value
to a buyer) minus a $500 +
GST commission to the auction
house giving a net result
of $1375 from an outlay of
$11,400 paid by the lender.
The debtor is technically liable
for the $10,025 but in this
case the debtor applied for a
NAP (no asset procedure) and
the debt was legally wiped,
leaving the lender out of pocket
with absolutely no chance of
ever being paid.
We are also seeing a resurgence
in debt consolidation
loans that promise to get people
“debt free faster”. These
are great when the original
contracts allow for an early repayment
without penalty or a
low early repayment fee.
If not, the applicants can
often find themselves paying
back a good portion of the interest
payable on the original
loan as well as the interest on
the consolidation loan, in addition
to any loan establishment
fees.
As with any agreement, the
Devil is in the detail, but having
one payment rather than
several looks so attractive to
people that may be struggling,
that they compound the problem
rather than alleviating it.
Just a thought.
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March 2020 BAY OF PLENTY BUSINESS NEWS 21
Keys to small business
marketing success
Successfully getting a new business off the ground is a feat of prioritisation. There are
myriad ways to spend your time and energy, not to mention your starting capital.
One of the questions I’m
often asked by people
starting a business is
“what marketing efforts should
I prioritise?” These business
owners all grasp the importance
of marketing, but with so
many options available, many
find it difficult to know where
to start.
The good news is that there
are some obvious areas any
starting business should invest
in if it wants to maximise its
chances of success. Developing
a plan, creating a powerful
brand and establishing a solid
web presence are three critical
foundations for growth.
Have a plan
So you’ve come up with that
business idea and decided it’s
a winner. Maybe you’ve done
your market research or even
gone as far as outlaying some
cash for your first production
run or to lease a store.
Before you book advertising
across all New Zealand
radio stations or lock yourself
in to attending every trade
show in the country, it’s worth
developing a marketing plan.
That way you can ensure your
marketing spend is contributing
to your objectives and
reaching the right people, in
the right place, at the right
time.
A good marketing plan
will identify your objectives,
the audiences you are trying
to reach, your unique selling
point, and the avenues you can
use to best reach those audiences.
It’s worth timelining
each of your planned activities
so you can hold yourself
or your team to account, and
including measures you will
use to determine whether your
plan is working.
Create a strong brand
THE LAST WORD
> BY JAMES HEFFIELD
Director of Bay of Plenty marketing and PR consultancy Last
Word. To find out more visit lastwordmedia.co.nz or email
james@lastwordmedia.co.nz.
A strong brand is critical to
any new business. This is
much more than a logo – it’s
what you say about yourself in
your marketing messages and
how you and your team conduct
yourselves when you do
business. Ultimately, it’s how
others perceive you.
Creating a strong brand is
about knowing what you stand
for and knowing what really
drives your prospective customers.
It needs to be authentic
too. If it’s based purely on
what you think your customers
want to hear, and not reflective
of the way you and your team
behave, it will fall flat. That’s
not to say your brand can’t be
aspirational but make sure the
values and story you are telling
are demonstrated in the
way you do business now, or
at least the way you want to do
business in future.
Develop a web presence
These days, the first tangible
marketing output most new
businesses should make is a
website. This doesn’t need to
be perfect in its first iteration
– websites are forever evolving
– but it should portray your
brand and business in a positive
light.
It’s particularly important
that your site is easy to navigate
and makes it easy for
customers to find what they
are looking for. Ensure the
written content reads well and
that the overall look and feel –
including the photos you use –
reflects your brand as well as
the values your target audience
holds dear.
It’s also worth taking steps
to ensure your website will be
easy to find in a Google search
as – other than word of mouth
– this is the most likely way
people will find your business
in the early days. With this in
mind, it’s worth researching
search engine optimisation or
enlisting the help of an expert
in this area.
Last, but not least, a strong
web presence should typically
include social media. There
will be some rare cases where
this isn’t the way to go, but for
most businesses, getting on
board the social bandwagon
is worth the money. Facebook
is particularly well used
in New Zealand, but others
worth consideration are Instagram,
LinkedIn and possibly
TikTok and Twitter. Keep in
mind that it’s better to build a
community and following well
on one or two of the platforms
that reach your target audience
well, than to run accounts
across all social channels in a
mediocre way.
There’s much you can do
outside of these three areas and
what will work best will vary
wildly by business and industry.
Once you have these foundational
elements in place, you
can explore the many other
channels available. That might
be digital advertising, print
advertising, public relations,
attendance at trade shows and
events, or something else.
Getting the mix right requires
regular investment and experimentation
– the key is measuring
progress and being willing
to adapt your approach based
on what’s working best.
Business continuity and contingency
planning
HUMAN RESOURCES
As the world and New Zealand react to the threat of the
Coronavirus Virus, employers are finding themselves wondering
how this may affect our own businesses and what we can do to
plan for what may eventuate.
> BY KELLIE HAMLETT
Kellie Hamlett is Director and Recruitment & HR Specialist, Talent
ID Recruitment Ltd. She can be contacted on kellie@talentid.co.nz
We are already seeing
the effects of this in
crucial sectors here
– such as tourism – with some
devastating consequences.
Time to dust off the Business
Continuity Plan – a revisit
and refresh to ensure we are
ready for what may lie ahead.
As a business who provides
advice to employers, and also
as an employer of my own
staff, I’m finding it is timely to
revisit the planning around the
possible interruption of business
operations.
Over the past few years we
have seen issues arise from
earthquakes in the South,
businesses who have suffered
losses through fire and flooding,
as we as SARS and the
Bird Flu scare.
Planning for business continuity
will help you to identify
the most important aspects of
your business and the critical
risks in these areas. The aim
is to help you to recover as
quickly as possible.
Think about the following
aspects: what are your specific
risks if something were to go
wrong? And it doesn’t need to
be a pandemic or natural disaster.
How would you get back
to a business as usual state?
What options should you consider
if you couldn’t return to
business as usual.
To start your business
continuity plan you’ll need to
identify your key products or
services, the most profitable,
least profitable and what are
the essentials you need to carry
out these activities.
Who are the key people
within your business? And
this won’t always be limited to
employees. What about your
vital business connections –
for example suppliers, service
providers, regular customers,
etc.
Plant and equipment – what
do you need in order to do
what you do? What is essential
and what would you do if
you didn’t have access to your
usual equipment? In terms
of location, where could you
work from if you didn’t have
access to your usual work
premises?
When planning for the unexpected,
think outside the
square in terms of where your
business could potentially operate
from.
For example, if your premises
were damaged or unavailable,
could your staff work
from home or another location
and how easily could company
information and data be accessed
in order to do so? How
would your customers know
how to find you or contact
you?
Do you have appropriate
insurance cover in place to
protect you against losses?
Business interruption insurance
can help cover businesses
with their normal operating
expenses and this will likely
include covering wages for a
period of time while your business
may not be generating an
income.
If you couldn’t run your
business, who could? Have
you identified key roles within
the business and their roles in
helping your business operate?
It might even be a good idea
to talk to your bank manager
about managing cash-flow
should a disaster occur.
In terms of managing your
staff, employers have obligations
to their employees under
the Employment Relations
Act. Business interruption can
present itself in many forms
– not necessarily through a
national disaster. Businesses
can’t rely upon outside assistance
as a given.
An important factor when
dealing with any interruption
in your business and then subsequent
decisions around running
the business and negotiating
with your staff, is to keep
communication lines open and
active.
It’s a stressful time for all
concerned and a flexible and
common-sense approach is
needed to get businesses up
and running and staff back on
board.
There is a general obligation
for employers to pay salaried
and wage workers who are
fit, willing and able to work,
but can’t because their place
of employment is closed or
damaged.
There are other options,
which include the negotiation
of using annual leave for a period
of time, negotiating a reduction
in wages, unpaid leave
or the offering of alternative
work.
Planning and communication
are key in times of adversity
and we can take practical
steps to minimise the impact
such an event could have on
our own situations.
22 BAY OF PLENTY BUSINESS NEWS March 2020
Learn from great business leaders.
Over 100 businesses attending.
ONE
DAY
ONLY!
Don’t miss out - Bookings close - 5pm, 11th March.
LEADERSHIP
DIRECTORSHIP
& GOVERNANCE
SOCIAL MEDIA/
CONTENT MARKETING
KEY NOTE SPEAKER
Craig Hudson
Managing Director
New Zealand &
Pacific Islands, Xero
GUEST SPEAKER
Kirsten Patterson
Chief Executive,
Institute of Directors
GUEST SPEAKER
Brent Ireland
Director, Collab Digital
Smarter Business Event
The National Business Network – Smarter Business Event 2020
will bring together hundreds of businesses from corporates to
SME’s in one location for one day across all business categories
attracting business owners, decision makers, managers and staff.
The purpose of the event is to bring Bay of Plenty wide businesses
together annually at one location for a day to hear from leaders
and well-respected business people to network, make contacts,
build new relationships, find new business partners, contractors,
suppliers and clients to do business.
The event is designed to provide every business that attends with
a return on their investment by offering fantastic value at a very
competitive price. This is a ticketed only event with all businesses
attending being paid attendees.
Format
B2B ticketed only event.
Each business gets a 1m x 1m table with entry
for 2 people from that business.
Please bring a pull up banner, business cards
and other collateral to promote your business.
Location
Queen Elizabeth Youth Centre (QEYC)
Cnr Devonport Rd & 11th Ave, Tauranga
PULL
UP
BANNER
Pricing
PER BUSINESS,
INCLUDES
2 X PEOPLE FROM
YOUR BUSINESS AND
A 1M X 1M TABLE.
$349 + GST
10% OFF
PRIORITY ONE MEMBER DISCOUNT
Extra individual tickets available per business upon request
at $80 + GST each after purchase of main business ticket
DON’T DELAY, BOOK TODAY
PRINCIPAL SPONSOR
Promotional Partners
SUPPORT SPONSOR
SUPPORT PARTNER
For great deals on the following services leading up to and on the event day please see
the event website for great deals/special offers from our promotional partners.
BOOK ONLINE
www.eventspronto.co.nz/tnbn
FOR MORE EVENT INFORMATION
www.businessnetwork.co.nz
PRINTING
GRAPHIC DESIGN
SOCIAL MEDIA
WEB DESIGN, HOSTING
AND MARKETING
BANNER / SIGNAGE
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@TheNationalBusinessNetwork
FOR MORE EVENT INFORMATION
www.businessnetwork.co.nz
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PRODUCED BY
March 2020 BAY OF PLENTY BUSINESS NEWS 23
Consider this
before signing a
commercial lease
If you are about to lease a
commercial property to run
your business from, it’s not
just the real estate agent you
need to talk to. Commercial
leases come in different shapes
and sizes and before you sign,
there are several things to consider.
Make sure to do your
homework and don’t forget to
consult your lawyer before you
commit to anything.
Whether it’s a showroom,
retail space or hospitality business,
or even just an area to
park your company vehicles,
it’s important to have a lease
which ensures that both you
and your landlord have a clear
understanding of each other’s
rights and obligations.
Paula Lines, director of The
Law Shop, says that the Auckland
District Law Society has
Paula Lines, Commercial
Lawyer at The Law Shop.
a standard form Deed of Lease
that can be used. She says it
is the easiest option because
the terms are well known,
tested in other cases, and fully
unambiguous.
Paula explains that many
people settle for an Agreement
to Lease, often prepared by
the real estate agent who has
marketed the premises, and
while the Agreement to Lease
does say that the terms of the
current Deed of Lease apply,
she points out that it is still important
to also follow up with a
formal Deed of Lease.
“One of the reasons for
this is that an Agreement to
Lease doesn’t contain all the
terms and conditions you need
to be aware of. If you haven’t
seen the Deed of Lease, you
may not be fully informed of
what you are agreeing to,” she
clarifies.
“The Agreement says
you’re bound by the Deed of
Lease that is used at the time,
but as that Deed is updated
Commercial leases come in different shapes
and sizes and before you sign, there are
several things to consider. Make sure to do
your homework and don’t forget to consult
your lawyer before you commit to anything.”
from time to time, you need
to know which version applies
to you. Some significant
changes have been made after
the Christchurch earthquakes
for instance, so it’s important
to know whether it’s an earlier
or latter one that applies.”
Signing a commercial
lease is a big commitment,
and you’ll have to make sure
you’ve addressed every aspect
and issue before you sign. Renegotiating
a lease is much
more difficult once the terms
have been agreed and the lease
is signed.
The team at The Law Shop
is highly experienced in Business
Law and happy to help if
you require guidance on your
commercial lease. They can
explain the ins and outs in a
no-nonsense manner and help
finalise the documents to make
sure they suit your business
needs and goals.
“No matter if you’re starting
out in business or if you’re
expanding your existing venture,
you are welcome to book
in a meeting with me or one of
our other business lawyers to
make sure you’ve thought of
everything on the legal side of
things,” Paula says.
“In most cases, we can
quickly asses what you need
to suitably protect your business
as well as your personal
assets.”
The Law Shop works from
a virtual space in Tauranga
and in Rotorua, the office can
be found at 1268 Arawa Street.
Call 0800 LAW SHOP or
email team@thelawshop.co.nz
to get in touch.
PAULA LINES
LL.B | Director
ROTORUA
1268 Arawa St
Rotorua
TAURANGA
Virtual Office
24 BAY OF PLENTY BUSINESS NEWS March 2020
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