Bay of Plenty Business News - September/October 2020

More documents

Info

6 BAY OF PLENTY BUSINESS NEWS September/October 2020 COVER STORY – KIWIFRUIT IN THE BAY Rabobank report identifies need for new kiwifruit capital From page 5 Apata chief executive Stu Weston said Rabobank’s estimates were accurate, and the burden of expansion was shared by all processors. Apata processes about 12 percent of total fruit harvested. Weston said calculating growth in fruit was a relatively straightforward mathematical equation, compared to estimating volume growth in some other primary sectors, such as dairy production. “This is particularly the case with SunGold – it has less winter chill reliance and pollinates well, and it is easy to see five years out where we will be.” On average, every additional 750ha of new licenced land sold by Zespri results in an increase of 10-12 million trays of SunGold fruit. Debt not a bottomless pit While debt was the easiest source of finance for the sector it was not a bottomless pit, said Weston. He noted a conflict between orchardists who may be prepared to put money into the sector to expand infrastructure, and those who may not. “Those larger younger growers would like to, but already have committed to The sensible thing is for growers to own the post-harvest processing as they do the marketer, and I expect the majority of investment will come from growers. They won’t be that keen to give it to outside interests.” – Stu Weston investment in their orchards, while the older mum and dad investors have the funds, but don’t want to at that stage of their life.” However, all orchardists had one thing in common and that was a reluctance to see an injection of external capital from large outside shareholders. “The sensible thing is for growers to own the post-harvest processing as they do the marketer, and I expect the majority of investment will come from growers,” said Weston. “They won’t be that keen to give it to outside interests.” One solution could be for post-harvest companies to have one class of share open to all investors, both growers and non-growers, with processors charging a higher service fee for processing fruit. The additional revenue would feed through to higher dividends, encouraging more share purchases and with that more capital available for expansion. “There is no free lunch, the service pricing on processing will have to become higher.” The Rabobank report maintains that in theory growers could fund the entire $750 million, an amount Weston said was not unsurmountable when compared to the capital value of orchards. But Rabobank estimates the post-harvest sector will probably need to source about a third, or $250 million as equity funding. “But by hook or by crook, the fruit cannot be left on the vine and we have to figure out a way to fund the expansion that all post-harvest operators face,” said Weston. Rabobank’s Hayden Higgins: Encouraged by the healthy balance sheets of most postharvest processors. Photo/Supplied. Bay iwi refinery to extract value from hort waste A refinery to distill high value bioactive molecules will be built in Bay of Plenty in conjunction with iwiowned Te Awanui Huka Pak to capitalise on a rapidly growing segment of the food ingredients industry. By RICHARD RENNIE Ligar’s Nigel Slaughter: The Bay makes good sense as a location. Photo/Supplied Te Wahi Ao, a Te Awanui Huka Pak subsidiary, has signed a partnership with Waikato biotech firm Ligar to provide waste-stream organic material from its kiwifruit and avocado operations as a source for molecule extraction. Bioactives are specific molecules extracted from organic matter for specific purposes, which can be for their taste profiles, nutraceutical value and nutritional value. The molecules were often higher in the skin of fruit, something frequently otherwise disposed of with no value extracted. The global bioactives industry has been identified as having a value of US$51 billion by 2024 and knowledge about the molecule’s potential is expanding rapidly. Recent examples include utilising bioactives extracted from hemp cannabis plants in replenishment drinks. The technology developed by Ligar enables greater volumes of the molecules to be extracted, helping lower the cost of what has typically been a high cost exercise yielding low volumes of molecular product. Excellent opportunity Te Awanui Huka Pak chief executive Te Horipo Karaitiana said the venture was an excellent opportunity to put iwi at the front of a rapidly developing high value sector, similar to what the company’s early involvement and decision to stick with kiwifruit meant. With its ready supply of kiwifruit and avocado material, Te Awanui Huka Pak could see an ample supply of material available, aided by access to material from major post harvest operator Seeka, in which the group has a significant shareholder stake. Ligar founding chief executive Nigel Slaughter said early stage “bio-prospecting” has already identified some potentially useful organic compounds in kiwifruit. Because of the location to a good waste-stream source on iwi land, he said the Bay of Plenty made good sense as a This initiative has potential to grow a new generation of great jobs for Maori.” – Te Horipo Karaitiana location for the refinery. The company hoped to develop a bio-refinery network around the country, all located in the vicinity of other sources, including vegetable waste in Hawke’s Bay and Gisborne. The refinery would be the focus for what Slaughter said would be the world’s first indigenous innovation park. Iwi are also excited by the possibility of employing Ligar’s technology to help extract molecules with a uniquely New Zealand content, utilising native flora that may contain medicinal and nutritional properties. Karaitiana said the initiative was a perfect fit for the Te Wahi Ao subsidiary as an innovation company, focused on growing revenue by expanding and deepening the impact of horticultural activities, and growing Maori enterprise ability. “This initiative has potential to grow a new generation of great jobs for Maori,” he said. Hurry, Almost SOLD OUT! LEADERSHIP KEY NOTE SPEAKER Craig Hudson DIRECTORSHIP & GOVERNANCE GUEST SPEAKER Kirsten Patterson SOCIAL MEDIA/ CONTENT MARKETING GUEST SPEAKER Brent Ireland only 20 SPOTS Left! PER BUSINESS, INCLUDES 2 X PEOPLE FROM YOUR BUSINESS AND A 1M X 1M TABLE. $349 + GST For more event information and to book online: www.businessnetwork.co.nz
Thanks to our donors, Acorn has contributed over Join us in building a stronger community together. www.acornfoundation.org.nz 07 579 9839 September/October 2020 BAY OF PLENTY BUSINESS NEWS 7 Acorn’s financial self-sufficiency means more money for local charities The significant growth in Acorn Foundation distributions over the past year to more than $1.7 million has been driven primarily by the resettlements of trusts and an increase in local business support for charitable organisations, says general manager Lori Luke. By DAVID PORTER Including the latest contributions, Acorn donors have now cumulatively distributed more than $8.3 million since 2003 to causes in the region. Luke said 157 charitable organisations across New Zealand – with a strong focus in the WBOP – have received grants throughout the year. Distributions outside the Western Bay of Plenty have been specified in donor wishes. “These community contributions come from estates, living gifts, trust resettlements, Community Group funds, Giving Circles and Workplace Giving programmes,” said Luke. “Our team truly appreciates the opportunity to make these distributions on behalf of our donors who have such a big heart for our community. The recipients that have been selected this year provide essential services to our region, and we are delighted that we can help our donors contribute to their efforts.” This year, the addition of seven Bob and Joy Owens Scholarships that have moved to Acorn via the resettlement of the Owens Charitable Trust and two new scholarships for students at the University of Waikato Tauranga campus, means that over $310,000 will be paid out via scholarship and award programmes. Over the years, 266 charities have been supported by Acorn donors. Notable recipients this year include Omanu Surf Livesaving Club, which has received over $43,000 from the Karen Pensabene Fund, and Waipuna Hospice, which has received more than $104,000 from the contributions of 11 different donor funds. With local charitable organisations impacted by the effects of Covid-19, both from a reduction in funding available and in an increase in service demand, Acorn say they appreciate donors more than than ever. The Salvation Army’s Wendy Lobb said the organisation continued to be humbled and grateful for the funds, which she said were vital in assisting in its frontline work. “And in particular this year, knowing these funds provide us with the opportunity to add The recipients that have been selected this year provide essential services to our region, and we are delighted that we can help our donors contribute to their efforts.” – Lori Luke the much-needed resource of dedicated peer support to our team working in the addictions space in Tauranga,” she said. Varied donor support Although Acorn is well-known for receiving gifts via endowment funds in wills, there are With such a strong increase in distributions relative to a year ago, we know that the Acorn Foundation is making a significant difference to the lives of people here in the Western Bay of Plenty.” – Lesley Jensen also a number of other ways that their donors support the community. Craigs Investment Partners donated $150,000 last Christmas, which Acorn distributed to organisations across New Zealand on their behalf, and Craigs, KPMG and BOP Regional Council have all established Workplace Giving programmes for their staff. Other local contributions this year included: employees and partners at Cooney Lees Morgan have long raised money for their corporate fund; ASB Tauranga contributed money to help Good Neighbour buy new equipment; TECT beneficiaries have donated rebates worth more than $68,000 to the Acorn Vital Impact Fund over the past two years; and many local supporters contributed to the Covid-19 Rapid Response Fund to help organisations providing vital support during the lockdown. In addition, dozens of regular givers donate to the more than 40 Community Group funds Generosity. Encouraging Corporate Giving programmes & Giving Workplace new Our increase community Acorn helped have support by 50%. care about? you do What managed by Acorn, helping those organisations move towards sustainable long-term funding. Acorn Foundation chair Lesley Jensen said Acorn appreciated the support from donors. “With such a strong increase in distributions relative to a year ago, we know that the Acorn Foundation is making a significant difference to the lives of people here in the Western Bay of Plenty. We are honoured to represent our donors.” Acorn has contributed over donors, our to Thanks $1.75M to our region this year. community together. building a stronger in us Join 07 579 9839 www.acornfoundation.org.nz ADVERTORIAL Acorn Foundation distributions increase 50% this year The Acorn Foundation recently announced a record $1.75M in distributions for the past year, up more than 50% over the previous year. With the Acorn fund reaching $36.4M more individuals, trusts, community groups and businesses have played a role in supporting the Western Bay of Plenty community than ever before. Although Acorn is well-known as the organisation where you can leave a gift in a Will, there is no one-size fits all when it comes to supporting our region. Additional ways to contribute include: • Corporate Funds • Workplace Giving via employee payroll donations • Regular giving to a favourite cause in one of the many Community Group Funds • Giving Circles that bring together a group of friends or colleagues to give collectively • TECT rebate donations to the Acorn Vital Impact Fund, distributing to organisations who work locally in the areas of greatest need • Trust resettlements of family or community trusts Several local businesses and councils are involved in giving back to the community through Acorn. Craigs Investment Partners gives nationally to communities in which it maintains Encouraging Generosity. Our new Workplace Giving & Corporate Giving programmes have helped Acorn increase community support by 50%. Thanks to our donors, Acorn has contributed over $1.75M to our region this year. Join us in building a stronger community together. www.acornfoundation.org.nz 07 579 9839 offices through Acorn, while the KPMG Tauranga office has both a Corporate Fund for perpetuity and is involved with pass-through Workplace Giving for staff and partners. The local NumberWords’n Works office has established a Corporate Fund, while the executive team at the BOP Regional Council have recently started a Workplace Giving programme that will contribute to causes across the region. Consider joining Acorn to build a stronger community together. www.acornfoundation.org.nz What do you care about? Generosity. Encouraging Corporate Giving programmes & Giving Workplace new Our have helped Acorn increase community support by 50%. What do you care about? Lesley Jensen and Lori Luke (L-R) – Acorn Foundation $1.75M to our region this year.
Page 1 and 2: SEPTEMBER/OCTOBER 2020 VOLUME 4: IS
Page 3 and 4: COVER STORY - KIWIFRUIT IN THE BAY
Page 5: COVER STORY - KIWIFRUIT IN THE BAY
Page 9 and 10: September/October 2020 BAY OF PLENT
Page 15 and 16: SPECIAL FEATURE - CORESTEEL BUILDIN

Bay of Plenty Business News - September/October 2020

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?