Market Gardeners Limited Annual Review 2018 - MG Marketing
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Market Gardeners Limited
Annual Review 2018
MG’s core purpose is to Contents
Annual Review 2018
grow the overall wealth and
profitability of the Co-operative, Chairman & CEO's Review 02
its shareholders and growers Financial Highlights 06
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Together. Stronger.
Income & Cash Flow Statements 28
through relevant initiatives Balance Sheet
Branch Register, Bank & Advisors
29
31
while maintaining
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co-operative
principles. Together. Stronger.
RESILIENCE VALUE CO-OPERATIVE
Show true leadership to grow
the business and overcome
Keep reviewing the benefits our BEHAVIOUR
grower shareholders receive
Work hard together to make
challenges by making decisions while finding new and relevant
sure the benefits of our
that protect the future of our ways to add value.
Co-operative model drive
grower Co-operative and make
growth, value, trust and a
sure the benefits are enjoyed by
willingness to work closely
generations to come.
alongside each other.
PARTNERSHIPS GROWTH CAPABILITY
Expand the level of Diversify and expand produce Continue to have the best
communication to keep our lines locally as well as make our people, doing the right job,
grower shareholders up-to-date Co-operative attractive to off- with the right tools to support
and support a positive delivery shore markets so we can grow the wide range of needs of our
of our shared vision, direction our export activity. grower network.
and values.
1
We entered the 2018 financial year
Chairman &
CEO’s Review
Annual Review 2018
Annual Review 2018
full of anticipation that we could
build on a great 2017. However,
the year has presented unforeseen
challenges to the business to
which we have needed to adapt. impairment (reduction in the value
®
Together. Stronger.
Together. Stronger.
The year has therefore ended with recorded for the brand and goodwill) and
does not impact on our debt facilities or
mixed results - a record result for compliance with banking covenants. This
New Zealand but a disappointing is explained in more detail in the financial
®
section later in this review.
outcome for Australia. We remain The combined trading profit, before
confident that the strategic tax and impairment, and including the
gain on acquisition, was $13.667 million
initiatives of recent years well for the year, down from $16.018 million for
positions your Co-operative for a the previous year.
The vagaries of climate and other
sound and sustainable future. disruptions are becoming the norm for
the horticulture industry. We witness
first-hand the vulnerability of growers and
marketers, alike, to these variables and
The New Zealand trading operations the need to develop sustainable farming
recorded another strong performance practices in the long-term interest of
with record turnover and profitability. the industry. These industry challenges
Market share gains and generally good demonstrate, once again, the benefits
values across a broad product range, of working together to meet the ever-
together with tight management of discerning needs of our customers and
expenses, have assisted in achieving this consumers – as a co-operative we are
Bruce Irvine result. Our associates also performed ® Together. Stronger. It also demonstrates
Chairman
well and are in a good position for future the value of diversification across
growth and profitability gains. countries and key categories.
The Australian market suffered from Today’s consumer is defining our
depressed pricing with many product business like never before. They seek
lines undervalued because of weak what were seasonal products on an
demand, over production or, in some all year-round basis and continually
cases, both. This impacted not only our look for better eating experiences.
farming operations but the marketing Given traditional growing models, the
divisions, resulting in a reduction of impact of the weather and the lead
Peter Hendry revenue and a significant loss for the year. times associated with new varietal
Chief Executive Officer The LaManna Premier Group (LPG) board development, this becomes a challenging
and management teams recognised the proposition to deliver on. Our focus
ongoing effect of weak market conditions remains on ensuring we are assisting
and pricing throughout the year, and while our growers in meeting these consumer
merger synergies had already assisted, demands by being an integrated part of
further business improvements were their business, providing the necessary
necessary. While these improvements support around planning to meet
will take time to bed in, the Company is demand expectations, supporting with
confident that an enhanced performance marketing insight on buying behaviour,
will be achieved. The specifics of this meeting customer expectations and
strategy are discussed in the LPG section the further enhancement through the
of this review. use of Intellectual Property rights (IP).
Given the difficult trading environment Successfully delivering on these key
and trading loss in Australia, the board priorities creates competitive advantages
has decided to take a $32.330 million that assist with the sustainability of
←P
eter Collinge from Conifer Pete's impairment of the brand and goodwill our grower suppliers, our customer
and Rob Hollier from MG Marketing. related to the business. This is a non-cash relationships and our Co-operative.
2 3
Our people are vital to delivering Co-operative, its shareholders and
We remain confident that the
Annual Review 2018
Annual Review 2018
on these priorities. We continue to growers through relevant initiatives.
work on attracting the right people Despite the setback this year, there strategic initiatives of recent years
into our business and developing have been significant positives. Our well positions your Co-operative for
their capabilities within our cultural New Zealand operations continue to
boundaries. It is essential that they are perform strongly and we are well placed a sound and sustainable future.
philosophically aligned with the grower, for further growth. LPG is working hard
understand and deliver on customer on its business remodelling and the early
®
Together. Stronger.
Together. Stronger.
expectations, and have the skills to signs of improving performance
create game-changing innovation. To this are encouraging.
end, our capability to support this wide The Board remains focused on
range of demands is a core focus of ‘our strategically positioning the company
people’ strategies. for future success and we thank the
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Information technology is also a Board members for their governance and
critical component of our business leadership in the face of some significant
success. Our current IT platform has industry-wide challenges. The Board’s
served the business extremely well and engagement on the health, safety and
will be phased out over the following wellbeing of our people is paramount and
year with the new system currently our culture of care strategies are under
under development. This will greatly constant review to achieve this goal.
assist with further efficiency gains and We pay tribute to our prior Chairman
improved flexibility to adopt new Brian Gargiulo’s service to the company
digital technologies. later in this review - on behalf of the
The use of smart technology and Board and management we thank Brian
digital responses for business are also for his outstanding contribution to the
necessary for efficiency gains, improved success of the Co-operative.
communication and decision making. And finally, on behalf of the Board and
A good example of this is MG’s Grower management team, we acknowledge and
Delivery Advice (GDA) web portal which thank the support of all our stakeholders
is now well established in the business, – our suppliers, customers and fellow
with close to 60% of all growers using staff - as we work together to grow our
the system and over 75% of all produce Co-operative for a stronger future.
currently supplied now being pre- MG has operated now for 95 years and
receipted online. has a proud history. We will continue to
We will continue to strategically be creative, identifying new opportunities
review and invest in growing operations, for our shareholders, grower suppliers
joint ventures, partnerships and provide and customers, take controlled risks and
grower financial assistance where this remain passionate about what we do. We
strengthens the Co-operative and is in look forward to working with you all on
line with our Co-operative principles, this endeavour in 2019.
to grow the overall wealth of the ® Together. Stronger.
Bruce Irvine Peter Hendry
Chairman Chief Executive Officer
4 5
Financial Highlights
Annual Review 2018
Annual Review 2018
Group gross sales under
management $862.391 million
900 130.0 129.6
894.3 862.3
Group profit before income tax
and impairment (including gain $13.667 million 800 120.0
700 110.0
on acquisition) 107.1
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Together. Stronger.
Together. Stronger.
103.1
600 590.3 588.7 100.0
Impairment of intangible asset
(goodwill and brand) ($32.330 million) 500 90.0
93.1
400 80.0
®
2016
2016
2018
2018
2015
2015
2017
2017
Group (loss) before income tax
($18.663 million) Group gross sales under
Group total equity ($M)
management ($M)
Group (loss) for the year (after
income tax and impairment) ($19.502 million)
Group total equity
$107.147 million 18
16 16.0
280
260
277.1
262.7
14 240
Group total assets
$262.749 million 12
13.6
220
10 9.7 8.6 200
197.3
8 180 180.1
6 160
2016
2016
2018
2018
2015
2015
2017
2017
Shareholder distributions 2018 2017
Group profit before income tax
and impairment (including gain on Group total assets ($M)
$’000 $’000 acquisition) ($M)
– Special Bonus Issue (November 2018)
• 1 for 20 on “A” shares (2017: 1 for 15) 976 1,172
• 1 for 5 on “B” shares (2017: 1 for 3) 1,666 2,518 12 11.6 7.5
• 1 for 2 on “C” shares (2017: 1 for 3) 442 331 6 7.2 6.87
6.51
5.8 6.0
5.59
• 1 for 20 on “D” shares (2017: 1 for 15) 155 190 0
5.53
4.5
– Supplier shareholder rebate (issued as 2018 250 250 (6)
2015
2016
2018
2017
“C” shares) (2017: issued as 2017 “C” shares) 3.0
(12)
– Bonus issue on supplier shareholder rebate 750 750
1.5
of 3 for 1 (2017: 3 for 1) (18)
(19.5)
– Final gross dividend on “A” shares : 1,171 1,125 (24) 0.0
2016
2018
2015
2017
6 cents per share (2017: 6 cents per share)
Group (loss)/profit
– November 2018 - final gross dividend on 186 182
for the year (after income tax Group distributions ($M)
“D” shares: 6 cents per share (November and impairment) ($M)
2017: 6 cents per “D” share)
Total shareholder distributions in relation to 5,596 6,518
the year ended 30 June
6 7
DISTRIBUTIONS
Annual Review 2018
Annual Review 2018
Given the strength of the Company and that are Current Producers receive
the strong results that have come from three further “C” shares for every one
the NZ operations, the MG Board of “C” share they receive from the above
Directors has resolved to return to its rebate). As imputation credits have
shareholders significant distributions been attached to the bonus issue shares
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totalling $5.596 million (2017: $6.518 they are mostly tax paid in the hands of
Together. Stronger.
Together. Stronger.
million) by way of rebate shares, bonus the shareholder.
issues and dividends. This is the fourth • Final dividend – a fully imputed taxable
consecutive year that shareholders have gross dividend of six cents on every “A”
received a special bonus issue. share and six cents on every “D” share.
®
On 7 September 2018 the Board Once again imputation credits are
declared the following distributions in attached to this dividend.
relation to the year ended 30 June 2018: The above distributions will be made
• Special bonus issue – a fully imputed only to those shareholders entered on
taxable special bonus issue of: the share register at 30 June 2018 who
• One new “A” share for every twenty continue to hold, at the date of the 2018
existing “A” shares; and Annual Meeting, the shares held at 30
• One new “B” share for every five June 2018.
existing “B” shares; and The above special bonus issue,
• One new “C” share for every two rebate, bonus issue and dividends
existing “C” shares; and represent $5.596 million being distributed
• One new “D” share for every twenty back to MG’s loyal and supportive
↑G
eorge Gibb from Greendale Mushrooms existing “D” shares. shareholders. Not only is this a significant
and Michael Breitmeyer from MG Marketing. • Supplier shareholder rebate – a taxable distribution of wealth to the shareholders
rebate of $250,000 to be applied by it represents the strength of the
the Company in paying up in full “C” Co-operative as a whole.
FINANCIAL OVERVIEW & DISTRIBUTIONS shares of the Company to be issued at In addition, and as has occurred for
$1.00 each and made in such manner many years now, we are pleased to note
as the Directors determine to those the support of the shareholders through
The Group’s financial highlights are in value. Details around the assessment As announced at the November shareholders that are Current Producers their high level of reinvestment of their
reported on page 6 and 7 of this review. process and the variables used in this 2017 Annual Meeting of Shareholders, that have supplied on a consignment dividends back into more MG shares
For the year to 30 June 2018 Group calculation are more fully set out in note MG exercised the option to purchase basis during the financial year ended 30 (“A” and “D” shares). If you would like to
Gross Sales under Management amounted 9 of the financial statements (refer to the the JS Ewers Ltd business, effective 1 June 2018. participate in the dividend reinvestment
to $862 million ($894 million in 2017). full Annual Report). December 2017. The 7 months results (to • Bonus issue – a three for one fully plan please contact our Company
For the same period net profit before tax MG invested in LaManna Bananas Pty 30 June) for this business are reflected imputed taxable bonus issue on the “C” Secretary, Duncan Pryor, at MG’s Support
and impairment, including the gain on Ltd (LMB) in July 2003 with an initial 25% in the Group results for the year. shares issued out of the above rebate. Office for further information on email
acquisition amounted to $13.667 million shareholding which grew to 50% in 2004 In addition to this Annual Review, MG This amounts to $750,000 worth of dpryor@mgmarketing.co.nz or phone
compared to $16.018 million in 2017. This and eventually became 100% in 2005. Over presents an Annual Report inclusive of “C” shares being issued (Shareholders (03) 343 1794.
result came from the strength of both the years, the percentage shareholding full financial statements. If you would
the NZ market and the business, offset has varied as a result of share issues, like a copy of the Annual Report visit
by the challenges that were faced in the acquisitions and mergers and currently the website, www.mgmarketing.co.nz, →B
en Scott from Scottfresh
Australian market. stands at 69.3%. The last significant event or contact the Company Secretary, and Andrew Body from
MG Marketing.
As is noted above, this year there has was the merger with Premier Fruits Group Duncan Pryor, on (03) 343 1794 or email
been a partial impairment of the Group’s in 2016 – this saw LMB rebrand as LaManna dpryor@mgmarketing.co.nz
intangible assets, amounting to $32.330 Premier Group (LPG).
million. Each year MG is required to The Group net (loss) after tax, the gain
Group Profitability Net profit/
undertake an assessment of the carrying on acquisition and the impairment expense
year ended 30 June 2018 (loss) after
value of its various investments and amounted to ($19.502) million compared tax
intangible assets against the assessed to a profit of $11.609 million in 2017. $’000
ongoing value. If the carrying value is At a Group level, MG remains strong MG Group excluding Australia 10,788
higher than the ongoing value, then there with equity standing at $107.147 million
Gain on acquisition 6,568
is an impairment. The investment, or (2017 $129,678) and total assets of
intangible asset, is written down in value $262.749 million (2017 $277.127 million). Australia (4,528)
and this represents an expense in the The reduction between years is primarily Impairment expense (32,330)
profit and loss. It is important to note that as a result of the impairment expense as
(Loss) for the year (19,502)
this is a non-cash write down/reduction discussed above.
8 9
Annual Review 2018
Annual Review 2018
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Together. Stronger.
Together. Stronger.
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Bruce R Irvine Alan G Franklin Lynn T Crozier
Chairman, Appointed Special Director Elected Director Elected Director
Bruce joined the MG Marketing Board Alan was appointed to the MG Marketing Lynn joined the MG Marketing Board in
in 1994. He comes with an extensive Board in 2010. Alan’s family has been 2012. Today Lynn, through a family-owned
business background and previously growing for five generations in Auckland and operated business since the 1960’s, is
held the position of Managing Partner since 1906. a grower of potatoes, onions and carrots
of the Christchurch office of Chartered Member of the IOD*. in Central Canterbury. Lynn is a member
Accountants, Deloitte, between 1995 and of the MG Audit Committee.
2007; and is past Chairman of Christchurch Alan D Thompson Member of the IOD*.
City Holdings Limited. Bruce is currently Elected Director
a director of Heartland Bank, PGG Alan was appointed to the MG Marketing Mike J Russell
Wrightson and a number of other public Board in November 2016. Alan has a long Elected Director
and private companies. Bruce is Chairman history and background in the growing of Mike was appointed to the MG Marketing
of the Company, Chair of the LaManna many crops for the domestic market and Board in November 2016. Mike is a first-
Premier Group’s Audit Committee, a export, and is an experienced exporter generation Hawkes Bay grower with 35
Director of LaManna Premier Group Pty in his own right. The family business, years’ experience, in partnership with
Ltd and member of MG’s Remuneration & Kainui Pack & Cool, is involved in the his wife Julie, specialising in plums. Mike
Nomination Committee. growing and packing of citrus, kiwifruit, is a member of the MG Remuneration &
Chartered Fellow of the IOD* and avocados and melons, with pack house Nomination Committee.
Accredited Fellow of the CAANZ**. and cool stores in Kerikeri. Alan’s family
business holds a 25% shareholding in Te Mark R O’Connor
Andrew G Fenton Mata Exports 2012 Ltd and Alan is both Elected Director
↑ MG Board of Directors from
left to right:
DIRECTORATE AND MANAGEMENT Deputy Chairman, Elected Director
Andrew joined the Board in 2002. He has
a Director and finance director of that
business. Alan is a member of MG’s
Mark is serving a second term having
originally joined the MG Marketing Board
Peter Hendry (Chief Executive
more than 35 years in the avocado and Audit Committee. in November 2014. He is a Director and
Officer)*; Bruce Irvine; Alan
Thompson; Kerry Wells (International Change is inevitable and with it comes of this is regularly reviewing the Board’s kiwifruit industries through the Bay of shareholder of a family-owned market
Business Manager)*; Alan Franklin; new faces and new thinking to the collective skill set and evaluating the Plenty-based Phoenix Partnership and Trevor J Burt gardening business in Nelson on the
Trevor Burt; Mark O'Connor; Lynn
business. The Board is no exception to best mix of skills required to continue to Beresford Orchards Ltd. He has extensive Appointed Special Director Waimea Plains.
Crozier; Mike Russell; Trudi Webb
(Director Intern); Andrew Fenton; this. As featured later in this review, Brian take the company forward. This resulted commercial and governance experience Trevor has high level experience in Member of the IOD*.
Duncan Pryor (Company Secretary & Gargiulo handed over the Chairmanship in the Board Capability Framework being in businesses and industry groups. the strategic leadership of large and
Chief Financial Officer)*. to Bruce Irvine after last year’s election. developed and subsequently published. Andrew is currently a director of New complex corporate organisations,
*Executive Management Attendees.
Mark O’Connor re-joined the Board In accordance with the company’s Zealand Horticultural Export Authority and and a proven record of implementing
after last year’s election and Trevor Burt constitution, Alan Franklin and Lynn Kiwifruit New Zealand, President of the NZ change and achieving results. Trevor
joined the Board as a special director Crozier retire by rotation and, being Fruitgrowers’ Federation, Chairman of the holds Chair roles of Ngai Tahu Holdings
earlier in 2017. In addition, following eligible, have put themselves forward NZ Fruitgrowers’ Charitable Trust, a Member Corporation Ltd, Lyttelton Port of
the introduction in 2015 of the Director for re-election. Two other nominees, of NZ Kiwifruit Growers Inc. and Chairman Christchurch Ltd, and New Zealand
Internship Programme, Trudi Webb was Diana Baird and Joanna Lim, have been of Huddart Parker Building Co. Ltd. Andrew Lamb Company Ltd. He is Deputy Chair
appointed as the second Director Intern. nominated and put themselves forward is Deputy Chairman, Chairman of the MG of PGG Wrightson Ltd and a Director
As a Board, your directors maintain for election. As there are four candidates Remuneration & Nomination Committee of Silver Fern Farms Ltd, Landpower
their focus on strategic issues affecting for two positions on the Board, an election and Director of LaManna Premier Group Pty NZ Ltd, as well as a former member of
our industry and your Co-operative. is being held by postal ballot. Voting Ltd. Andrew was previously the President the Executive Board of the Linde Group
The Board continued with its review and papers for the postal ballot will be sent to of Horticulture NZ and Chairman of Satara based in Munich. Trevor is Chairman of
updates to the Charter, code of conduct shareholders together with the Notice of Co-operative Group Ltd. the MG Audit Committee. * Institute of Directors in New Zealand.
and policies during the year. A key part Meeting on or around 19 October 2018. Chartered Fellow of the IOD*. Chartered fellow of the IOD*. ** Chartered Accountants Australia and New Zealand.
10 11
Annual Review 2018
Annual Review 2018
THE END OF ONE CHAPTER SIGNALS THE
BEGINNING OF ANOTHER – A TRIBUTE TO
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Together. Stronger.
Together. Stronger.
BRIAN GARGIULO (MBE)
Brian Gargiulo is well acknowledged during Brian’s tenure as Chairman that
®
for his standing within the horticultural the Co-operative flourished and became a
industry, and for good reason. It is only substantial organisation.
but appropriate to reflect on the role The son of a grower and a grower
he has played in the industry during his himself, Brian’s ability to identify an
40-plus years of service to the industry opportunity and then find a pathway
and, most particularly, the part he has to commercialise that opportunity has
played in securing the profitability and been to the benefit of many. There are
sustainability of New Zealand’s largest many milestones during his tenure on
fresh produce co-operative. the MG Board that secured real and
Awarded an MBE for services to sustainable growth for the company and
horticulture and New Zealand, Brian has shareholder wealth, not the least of which
been relentless in his commitment to are the Dole partnership that changed
developing the industry as a commercial the game for the banana category in
proposition. He has championed
innovation, lobbied for change when
New Zealand, the expansion of the MG
branch network, establishment of MG
MG PEOPLE
change was clearly long overdue and Direct to provide growers with a direct
represented growers when they felt ill- distribution channel to key customers, In order to stay ahead of the field, and to highlighted repeatedly as a key factor in ↑ MG Executive
equipped to represent themselves. the acquisition of the Australian LaManna continuously meet the changing needs our commercial success as a business. As Management Team
Brian was a key player in the Group of companies and the merger of of our diverse customer base, we must we to look to the future and recognise the From left to right: Chris Hibbert
establishment of Horticulture New Zealand LaManna Group with the Premier Fruits focus on our people - ensuring we have challenges of change and succession, we (Chief Information Officer);
and held the role of Vice-president for nine Group to form the LaManna Premier the best people working with us and that are committed to developing tomorrow’s Kerry Wells; (International Business
Manager); Greig Pullar (National
years (2005-2014); he served as President Group. Brian’s continuation as Chair of the we continually build their capabilities. In leaders from within the Co-operative. To
Operations Manager); Roger
on the Board of New Zealand Vegetable LaManna Premier Board is testimony to doing so, we strengthen you, our business this end, leadership forms a key part of Georgieff (National Procurement
and Potato Growers’ Federation (1998 - the regard in which he is also held across and the Co-operative. our of people programmes. Manager); Peter Hendry (Chief
Executive Officer); Jade Reeves
2015) and on the Board of MG for 36 years the Tasman. Our aim is to provide a work The well-being, health and safety of all
(Wellington Branch Manager); Jerry
(1981-2017) – 25 as Chairman. Brian’s years around the MG environment where our people are safe our people comes before anything. It is, Prendergast (National Key Account
Brian’s achievements within the boardroom table will be remembered not and have the opportunity to grow and of course, a never-ending journey but the & Brand Development Manager);
industry have been well documented only for his business acumen, but for the develop. We work in a very competitive ‘culture of care’ framework that has been Peter Lange (Imports Manager);
Kimberly Chavez (Internal Audit
but his contribution to the growth and value he placed on people and the things and constantly-changing environment. established within the business is the & Risk Manager); Duncan Pryor
success of the grower co-operative, MG, that they valued. The impact that his We understand that for MG to meet essential foundation of our ® Together. (Company Secretary & Chief
is less well published. inclusiveness and collaborative approach these challenges, we continually need to Safer. programme. The Co-operative’s Financial Officer).
Established in 1923 by a small band has had on the culture of the company attract outstanding people who are also emphasis on the importance of keeping
of resolute and like-minded growers, MG is evident, both in terms of the team culturally aligned with our business. safe is also populated throughout
today stands as a leading supplier of fresh culture within the Group and the strength The MG Graduate Programme and the entire supply chain, with ongoing
produce to New Zealand, Australia and of relationships that have been built with Sales Academy have been tremendously engagement with our suppliers and our
the Asia-pacific region. The success of the growers and customers alike. successful in this regard. Both initiatives growers through SupplyLine and the
Co-operative is testimony to the vision, the While Brian has handed over the are being further developed, not only to grower ‘shed’ meetings.
leadership and the tenacity of a few and reins to Bruce Irvine to lead MG into the support development opportunities for On behalf of the Board and
the commitment of many. Brian Gargiulo is next decade, he will continue to focus our people, but to invest in the long-term Management, we thank our staff for their
one of the few – a leader, a visionary and on resolving the challenges facing the capability of our industry. dedication, hard work and loyal service
an individual who was keenly focused on LaManna Premier Group and leading a Whilst new talent is essential to all to our growers, customers and to our
building resilience in the business, first strategic programme of growth in the organisations MG has also developed business. We proudly acknowledge this
and foremost, from which opportunities Australian market for the long-term a culture of long-serving staff. This contribution by featuring their names in
could be successfully leveraged. It was benefit of the Co-operative. stability and wealth of knowledge is this publication.
12 13
DEEPIKA ADHIKARI REJAIL ADILOVSKI OPE AFUIE DHRUV AGGARWAL VIHANG AHLAWAT JASON ALABAKIS MARIA ALAMEDA ALIPA ALAPATI MANGAL MAGAR RADHIKA MAGAR YAM MAGAR BJ MAGELE TK MAH BRADLEY MAHAR BRENT MAHAR SIMONE MAHAR AJAY MAJHI SHAQUILLE MAKIHA
Annual Review 2018
Annual Review 2018
CATHY ALESSANDRINI JENNIFFER ALEXANDER JOHNNY ALI ABID ALI VERDENE ALI HUSSEIN ALNABULSI PIFALATI ALOFAKI DOMINIC ALOI VINCENT ALOI JAMES MALONEY JOE MANARITI ROCCO MANARITI DHAN MANGAR ARULKUMAR MANI FUSIPALA MANOA DAYAL MANU RUZA MAROS SAM MARSON IAN MARTIN
ANNUNZIATO ANASTASIO ANASTASIA ANTONIOU SHAJI ANTONY JOSIAH ARCHER VISHANT ARORA JAIPALA ARPORN ADAM ATTANA CHARLIE ATTANA ROBERT MARTIN FRANK MARZANO PATRICK MARZANO HAMISH MASON SCOTT MASON FALCO MASTROCOLA LUKE MASTROCOLA BERNARD MATAELE
USO AVIIVII PUA AYYAR KAUSHIK BABU NATALIA BAHATI KERRY BAIRD MANDY BAKER LUKE BAKER-GARTERS MICHAEL BALDWIN MU BAR ADEEP BARAILI ELISE MATHEWS-HERRMANN TOLUWANIMI MATTHEWS SUZANNE MATTINGLY TAUELI MAUGA TIMOTHY MAWSON DANIEL MAZENGIA ALLAN MAZZOLA
BENJAMIN BARBARA BRUNO BARBARA JONATHON BARBARA JOE BARBARA SAM BARBARA VINCE BARBARA RACHEL BARKER TROY BARR PETER BARRETT MURRAY MCBRIDE ALEX MCCALLUM CHARLES MCCASKILL FREDERICK MCDONALD RYAN MCDOUGALL STORM MCDOWELL YVONNE MCILWAIN
DAVID BARRIE JACK BARRIE BLAIR BARWICK JAMES BATEMAN JEGATHEESWARY BATHMANATHAN LISA BEATON ANTHONY BEKKER HARRY BELL LYNN MCKAY MARGARET MCKENZIE ANDREW MCKENZIE MITCH MCKEOWEN DEREK MCKINNEL PHILIP MCLEAN REBECCA MCNAMARA JUSTIN MCVEIGH
CAROLYN BELOE CAROLINE BENDALL COLIN BENNETT FRANCESCO BENVENUTO LAURENCE BENVENUTO MARK BENVENUTO JACK BESWICK AJESH BHAI ADAM MEEHAN GREGORY MEEHAN GREGORY MEIBUSCH LIVIO MENEGAZZO REECE MERRETT DALE METCALF MATTHEW METCALF MARK MIDDLETON
BEENA BHANA DHRUV BHATIA JASDEEP BHATIA PETER BHOLAN RAJ BHOLAN DAVID BINKS STACEY BLANCHARD ANDREW BODY ROBERT BOLGE SEMISI MIKA SALVATORE MILANESE JACKIE MILLAR WANDA MILLS DAVID MILNE GEORGE MILTIADOU JO MINTON-CONNELL LAR MIT GIOVANI MOLINARI
CAROL BONHAM KAINE BOOTE CHRIS BORSATO JOSEPHINE BORSATO KIM BOUSTRIDGE SHAUN BOWIE TONY BOYD EAMMON BOYLE BREV BRAK PRADIP MONGAR PURNA MONGAR SHANE MOON DANIEL MOOR MICHAEL MOORE RUFINO MORALES JORDYN MORGAN-DENS'E STEVEN MORICE
CHRIS BRAMMALL SAMUEL BRAY MICHAEL BREITMEYER ANNA BRENMUHL NEIL BRIDGENS GRANT BROUGHTON TONY BROWN FIONA BROWNE SAMANTHA MOULD SAY MOY KHEE ROB MULHOLLAND KEVIN MUNROE SRINIVAS MUPPAVARAM ALLAN MURRAY GEORGE MURRAY VINCE MUSICO
BRIAN BUCHANAN HAYDEN BUCKLAND CATHY BUI RAHUL BUKSH LEDEGONDA BUKURU DYLAN BULZOMI DANIELA BUNN LUKE BURGESS TREVOR BURT SOJAN MUTHUNNY JUDITH MWALIAHA THI MY TO VUU CON MYDARAS FLORA MYDARAS CON MYLONOPOULOS VICKY NAND MAHES NARAN JOE NATI
PETER BUTCHER DAMIEN BYNG GRANT CADDIGAN DOMINGO CAICEDO VALENCIA ANGUS CALDER FRASER CALDER MARK CALLEGARI ROSS CALTABIANO FETUIAKI NAU ALLISON NELSON DANIEL NEUMANN JEFF NEUMANN WALTER NGATOKO PATIENCE NGUGI SY NGUON NARY NGUON LIEM NGUYEN
®
Together. Stronger.
Together. Stronger.
SHAUN CALVI MIKE CAMPBELL KIERAN CAMPBELL CHRISTINE CAMPBELL WAYNE CAMPBELL ALLAN CANLAS JEANETTE CANNISTRA JOHN CARESWELL PHUONG NGUYEN SANH NGUYEN TRAN NGUYEN TWEE NGUYEN INDRA NIRAULA JASON NOBLE TIMOTHY NORTH PETER NORTHERN STEVEN OAKES
ALEX CARTWRIGHT LIAM CARTWRIGHT GORDON CARUANA CARLA CASIMIRO PAUL CASIMIRO VICKY CASSISI GERARDO CASTRO VERGARA ALDO CATALANO SAM O'CONNELL MARK O'CONNOR TAYLOR O'DONNELL URSULA O'DONOHUE WAYNE O'HALLORAN GRAEME OLDHAM BRENDAN O'NEILL CONNOR O'NEILL
ALBERT CHALMERS ROSHIL CHAND SHAUN CHAND PAO-KUEI CHANG CALEB CHAPMAN OWEN CHARLESTON ANTHONY CHARLTON JASON CHARTRES SEAN O'NEILL ANTHONY ORD CHRISTOPHER O'ROURKE AMERIGO ORTADO ROGER O'SULLIVAN RICHARD OTT KIM OUN SOUNG NOEL OWEN FRANZ PABLO
CHANDRIKABEN CHAUDHARI KIMBERLY CHAVEZ BOPHEA CHEA HUAPING CHEN YAQING CHEN YUMENG CHEN RAVI CHINTALA VICHEKA CHIV SHAJU PADAYATTY HORMMIES ALEX PAICE SENITU PAKOME ATINDER PAL SINGH PAUL PALAZZOLO SAROJ PANDEY KIRAN PANT DIMITRIOS PAPAGIANNIS
HELENA CHUNG MARIE CICERO SAMUEL COFFEY TED COLEMAN NICOLA COLLIER JACK COLLISS JOSHUA CONDLIFFE AARON CONDON GEORGE CONDON HANNA PARK JAMES PARRY JUSTIN PARSONS MONIKA PATEL SUNIL PATEL ALPABEN PATEL DIXIT PATEL NGA PATIA PRADEEP PAUDEL MEFIPOSETA PEI
GUISEPPE CORRONE ROCCO CORRONE GAVIN COSGRIFF MARK COSSAR LEON COX JOSHUA CRAIK JAMIE CRAWFORD GIUSEPPE CREA CRAIG PERRY KEITH PETERS DARRYL PETERSON GIUSEPPE PETRORO MICHAEL PETRORO LAR PHAN THUY PHAN HOON PHAT SUZANNE PHIBBS
®
JAMES CREED GRANT CREIGHTON ANDREW CROSS LYNN CROZIER DESDA CULLEARN JACQUELINE CUMMING BRIAN DALE MELISSA DAMPIER JORDON PHILLIPS FRANK PICCOLO GIOVANNI PILATI LAURA PIO ROBERT PITOITUA SIATHAN PLIANSATJA MARK PLYMIN ROCHELLE POGSON PRABHAKARAN PONNUVEL
PETER DANIELS DAHVY DAO MARK DAUNT CRAIG DAVENPORT COLIN DAVIS NERISSA DAVIS CAMERON DAVISON SHARNEI DAWSON MICHELLE DE BRINCAT TIM POORTER ADELLE PORTER BLANCA PORTILLO ACOSTA SKYE POWELL-JONES ANUP PRAKASH BHIM PRASAD DHUNGANA DEREK PREGL
MICHAEL DEBONO CHENEL DEHAR MARK DENTON LORETA DERRAMAS JOSTI DEVI SAMANTHA DEVINE JOE DEVLIN ANTHONY DI PIETRO FRANK DI PIETRO JERRY PRENDERGAST DAVID PRICE LIAN PRICE STEPHEN PRIOR SAMUEL PROUTING DUNCAN PRYOR GREIG PULLAR JAMIE PULLEINE KARTIK PURI
JOE DI PIETRO JOSE DIAZ BENITEZ KILIMO DIDIER MAZAMBI PETER DILKES JONATHAN DILLON ADRIAN DIONISIO ASHLEY DJU GOLDIE DODDS LEON DODDS TULA PUWAR MAGAR GHANA PYAKUREL EILEEN QUIMQUE LUKE RADAN KAREN RADWAY ASHOK RAI BUDHA RAI DUNCAN RAINES AMIT RAM TONY RANALLI
DAVID DOHNT RAMON DONES CHRISTOPHER DONEY PHILLIPA DUNN DERRICK DYSON GEORGE EAGLES DAVID EDMONDS REBECCA EDWARDS RUSSELL RANGI RANGI ABDUL RASHID JOSHUA RATIMA GIOVANNI RATIMA-MITA JITHENDRA REDDY SHOW REDDY YERUVA JADE REEVES MIKE REGAN
JACOB EDWARDS SHARLENE EDWARDS MIRUNALINI ELANGO KENT ELFORD IAKOPO ELISARA EPATI ELISARA SOLI ALLAN ELLIOTT NAW ELLIS BEH REH KO REH NEH REH POE REH POE REH PREH REH SHARON REID BRETT REID HOWARD REILLY IAN REISIMA MARGARETA RELIA COREY RHEA JOHN RHEA
SHIRLEY ELVY ALAN EVANS PETE EVANS JOANNE EVERINGHAM JIM EVGENIADIS MALCOLM EXTON JOVIN FABIC MATTHEW FAIRCLOUGH GREGORY RICH MICAH RICHARDS WENDY RICHARDS SHANE RICKIT CATHY RIDDEN NJIGNYA RITA JASON ROBERTS LANCE ROBERTSON JOHN RODERICK
AHMAD FAIZAL ABDUL HADI ELISARA FALO THA IANG FAMCUN MADONNA FARAG WAYNE FARROW LAURIE FEMIA ANDREW FENTON ERIC FIELD LIGIA RODRIGUES BRADLEY ROSENDAHL BEN ROSS MARTHA RUDKEN FRANK RUGGIERO NI RUNG NATASHA RUS JAMIE RUSS MICHAEL RUSSELL
VICENTE FIGUEROA GASCA BLAIR FISHER DOUG FISHER ASHLEY FLEGLER BRAD FLEMING WAYNE FLETCHER GWENDA FOLEY MURRAY FORBES TEMA THOMAS FORTES MIKE RUSSELL MATHEW RYAN NICHOLAS RYAN THI SA LUONG MARIAM SAFAR DANIEL SALAU ASRUTHA SALIBINDLA JIAH SALLEY ADELINE SALLEY-GLOBIO
INGE FOUNTAINE ANGELA FRANCIS LINDSAY FRANCIS GEORGE FRANCIS ROBERTO FRANCO ALAN FRANKLIN FRANK FRAPPA DAVID FREEMAN GLENN SALT MARY SAMPIERI KULWINDER SANDHU LAL SANGI IVANNA SANTARELLI DAVID SAVILLE REON SAYER ROCCO SCARFO KYLE SCHINS
AARON FRIEND CAMERON FRIEND AUGUSTINO GAE'E BAILEY GALL DEAN GALL TRENT GALL FRANCESCO GALLICCHIO DAVID GANNON ROMEO GARCIA MICHAEL SCHRAPEL EVELYN SCHWEIGHOFER PAOLO SCIANCALEPORE SHANE SCOTT DIANE SCOTT AUKILANI SEGAUEA SAMSOTHEA SEK SIDDHARTH SHARMA
FLOYD GARDINER JESSICA GARDNER DOMINIC GARGIULO BRIAN GARGIULO JAMES GARGIULO PIERRE GARGIULO MARCUS GARGIULO ABE GARZA ANISHA SHARMA LIN SHATE HO BRUCE SHEED REBECCA SHEED CURTLY SHRIMPTON KAMALKANT SHUKLA INOKE SIALE GAJAY SINGH
COLIN GASS JHANAK GAUTAM ROGER GEORGIEFF WARRICK GIBSON IVAN GILBERT HARPREET GILL CLAUDIA GIORNO JOHN GIUFFRE MARC GIUFFRE HARDEEP SINGH PRANEEL SINGH AMANDEEP SINGH AMRITPAL SINGH ARSHDEEP SINGH DILDAR SINGH GURNOOR SINGH GURTEJ SINGH GARY SINGH
BEN GLANVILLE MARCUS GOBALD SAMEH GOBRIALL PAUL GODDARD ALEX GODFREY MATTHEW GORDON SAMANTHA GORDON BRENT GRAHAM HARJOT SINGH SIMI SINGH HARVINDER SINGH HARRY SINGH JAGDEEP SINGH JAGPREET SINGH JASPAL SINGH KAWALJEET SINGH KULDEEP SINGH
DAVID GRASSO JANET GRASSO LIZ GREENWOOD SUZANNA GREGORY MERCEDITA GREISING MARPA GRIEKSPOOR DANUTA GROBELSKI ADAM GROVE PARMJIT SINGH RACHHPAL SINGH SATNAM SINGH TAJINDER SINGH ANDREW SINNOTT INDIANA SINNOTT JOHN SIOZIOS GAJENDRAN SITHAMPARANATHAN
MARTIN GRUNDLINGH PRANESH GUPTA ANDHYALA ABBAS HAIDER CHRIS HAJOS DEAN HAMILL KATE HANDS NALEEN HARAKH SIMON HARDIE THOMAS SIU SUGANYA SIVASATHTHY TIMEA SIVERTSEN STEVEN SKRUZNY ANTON SKVORTCOV NATHAN SMART GLENN SMITH GLEN SMITH MARK SMITH
JAMIE HARDING MARK HARDING DANYEN HARROD LIAM HART BRUCE HARVEY SCOTT HARVEY MAARA HASAN CONNOR HAUSMANN ADRIAN HEINRICHS DAVINDER SOHI TREVOR SOLOMONA HEUNG SOO PARK GEMMA SORENSEN ANUSHA SOTHIRATNAM ANTHONY SPANO DIMIETRA SPANO
ALEX HENDRY PETER HENDRY VANNAK HENG LUKE HENLEY MARIA HENRY ADAM HEREMAIA CHRIS HIBBERT SIMON HICKEY WING HIEW IAIN HIGGINS DAVID SPEDDING MELISSA SPENCER RHETT SPENCER STEPHEN SPENCER EDWIN SPITERI BRENDAN SPITTLES LACHLAN SPRINGFORD BEN SQUADRITO
MOHAMMAD HIJAZI TRUCE-ANNE HILLARY CORAZON HINCHCLIFFE TJ HIRINI ALEX HIRSLER GRAEME HIRST DAWT HLAWNCEU CEU HLAWNCHING KANYAKORN SRICHANDEE KELLIE STAM PETER STAM WILLIAM STAM MARC STANTON NUNZIO STARVAGGI BAILEY STEVENS MIKE STEVENS ANTHONY STONE
CUNG HLICHAL ANDREW HOARE MARK HOBBS WENDY HODSON ROB HOLLIER CARA HONEYSETT RAFAEL HORMIGO SHANE HOU MATT HOUSE OWEN STOTTS SIMONE STRATHAIRN GRANT STUMBLES NENGAH SUJAINI KENNY SUMOOK RODERICK SWEENEY WAYNE SWIFT DANIELA TAGLIAMONTE
ROSS HOWARD JYE HOWSON MARTIC HRABANOV YUAN YUAN HU COLIN HUDGSON ANDREW HUESSER BEN HUME WAYNE HUME NIDA HUOT DAR RIA TALAWNG CEM TALAWNG AJITH TAMANG LASANG TAMANG BONNIE TAMATEA SOKLY TANG SUN TANG PIERRE TANNOURI NICO TANUVASA
MAEANA HURINUI PIO HURINUI JACOB HURRING PETER HURRING MOHAMMAD HUSSAINI BRADLEY HYDE AMAL IBRAHIM GRANT INWOOD SALA IOANE KELEKOLIO TAPUELUELU ANGELO TARANTO MARIO TARANTO NATHAN TARANTO PHUONG TAY HUYNH CAMERON TAYLOR EVAN TE HIKO KAIREWA TEPANIA
MICHAEL IOPPOLO BRUCE IRVINE KAORI ISHIKAWA JEREMY JAMES SALOTE JEBREEL CHARLOTTE JEFFORD BRIAN JEONG MATTHEW JEWELL JAI JIANG GREG TESESE HENG KIM THACH KIEN NGOC THACH SAROS THACH SOVANN THACH THANH NI THACH NU THANH DIEP DHIRENDRA THAPA SAMESH THAPA
NARENDRA JINA MAXWELL JOHANSSON CARYL JOHNSON PAUL JOHNSON ABBY JONES MANICKATHAN JOSEPH KAMAL KAAKOUR MANASE KAILEA DEP DANH THI UT KIM THI THI THI HAO DINGH ELANGO THIYAGAARAJAN EMMA THOMAS BEN THOMAS ALAN THOMPSON LAR THU MICHAEL TIERNEY
YOGENTHIRAM KANDIAH DE KANG DING MADI KANJULA CARMEN KANNIS JONATHAN KARANTGIS UTHAYASEELAN KARIKOVINTHARAJA SUNG TLUANG NEH ALFRED TOAILOA BERNARD TOAILOA MATTHAN TOAILOA ROMERO TOAILOA SHAOLIN TOAILOA MARK TOBECK ROEL TOLEDO
PARDEEP KATARIA LOPASITA KATOA RAMINDER KAUR GURJEET KAUR HARJIT KAUR JASBIR KAUR JASVINDER KAUR RAVINDER KAUR SANDEEP KAUR SARINA TOMRUK PENISIMANI TONGA PETERU TOPETO JAMES TORDOFF CYRIL TORRANCE KILIMO TOUSSAINT MUKAMBA MU TOY THI HUE TRAM
SANDEEP KAUR DHANOA SIMARJIT KAUR VIRDI SIOSAIA KAVA RORTHA KEO JANETTE KERR SURENDRA KHADKA IRSHAD KHAN RITHIPOLMOLY KHUN THI XUAN DAO TRAN VE TRAN THI TRANG DOUG TRASK JEYE TRIMBOLI JOE TRIMBOLI NATASHA TROVATO ALAN TSAI JERMAINE TUHI TOLOVAE TUILAEPA
THI KIEU DIEM CHAU DJ KILDEN HYEMIN KIM PAUL KING LIGAYA KIRK JENNIFER KIRKWOOD TINO KISONA MARK KLAUSS CHARLIE KUMAR UINISE TUITAHI VINCENT TURCO CARL TURNER TAMANGO UARUTA LIAM UNDERWOOD MAI UNG UK LIAN VAN ANDY VAN HRAM PENG VAN PENG
MANDEEP KUMAR GAGANDEEP KUMAR GAURAV KUMAR SUDHIR KUMAR VINAY KUMAR ROSS LAIDLAW SIULAATI LAKALAKA SAMUELA LALONI ANDREW VASSALLO IRINA VASSILIEVA NAU VAVE KONDAL VEERANNAGARI CON VELONIAS VIWARTH VORNG ELIZABETH WADDINGHAM JOHN WADDINGTON
HIEU THI NGOC LAM ANGILILO LAMA SIFA LAMA GEOFF LAMONT DAVID LANDY PETER LANGE MAKAHOKOVALU LANGI TUUNGAFASI LATU LAWRENCE LAVERY SHANE WADSWORTH SHERYL WAGNER ALAN WAKE BRETT WALKER PETER WALSHE XIAN WANG MURRAY WARD WAYNE WATKINS ROSS WATSON
HUMPHREY LAWRENCE CHAU LE FRIEDA LEE JUHEE LEE HAZEL LEES ERONI LEILUA RICCARDO LE'MONT CHRISTOPHER LEONE CHI LEUNG JENNIFER WATT BAHATI WATUTA TRUDI WEBB STEVE WEBER WAYNE WEBLEY KERRY WELLS WENQING WENG KELLY WETERE LA WI KEN WILLEY WHITNEY WILSON
GAVIN LEVY TRUDY LEWIS JIA LI JESSIE LI HONG LI MIKE LIA BINGQIN LIN HUAYU LIN QIN LIN YUNPING LIN KAREN LINDSAY CAROL LISSINGTON DIANA WILSON ANDREW WILTON MATTHEW WILTON CHIN WING LAM KAHURANGI WINIKERI WING WONG JARED WOODCOCK ETHAN WOODMASS
DANIEL LITTLE GRACE LITTLE WILLIAM LITTLE LEI LIU XIUGE LIU ZHONGYA LIU MARCUS LOGIUDICE MARK LOGIUDICE ANA LOLI PETER LOPES MUYHEANG LY KELVIN WOODMASS ROSANNE WORSFOLD I-JUI WU XIAO YAN LIN CHAOHUA YANG JALY YEN JONGHO YEO CHENGMING YI LINWAN YI QUI YING HUANG
BRUCE LYON TALIA MAAKA STUART MACDONALD BRETT MACEY FRANK MADAFFERI ROSS MADAFFERI BAL MAGAR BOM MAGAR INDRA MAGAR JONATHON YOUNG JIAN YU LIN ANTONIO ZANNINO CA TIN TIAL ZATHANG FENGYING ZHENG SHAOMEI ZHENG ANDRE ZITTERSTEIJN JOSEPH ZOFREA
14 15
→ Pierre Gargiulo from JS Ewers
Annual Review 2018
Annual Review 2018
®
Together. Stronger.
Together. Stronger.
®
NEW ZEALAND OPERATIONS INTERNATIONAL TRADING
The New Zealand operations maintained of the business, we are committed to MG has also made an investment in MG is the leading importer of fresh fruit more evident within the grape category
growth and had a record year, both in developing fresh talent. Gisborne-based First Fresh NZ Ltd. First and vegetables into New Zealand. Much where old, high cost, varieties are being
terms of gross sales under management MG continues to look for new ways of Fresh is a leading citrus supplier, both to like our domestic growing operations, replaced with high producing, lower cost
and profit before tax. adding value for the benefit of the grower domestic and export markets. Citrus is global producers have faced their and improved flavour seedless varieties.
This result is again the accumulation shareholders. The partnership with complimented by persimmons, kiwifruit challenges with weather variables during Our key category supply partners, such
of good operating performances across RuralCo, a co-operative that provides and other sub-tropical lines. The the year. Logistical challenges have also as Jasmine Vineyards in California, Dole
all divisions, improved volumes sold MG members with the ability to access investment will strengthen MG’s citrus impacted throughout the year. Despite Chile and Fruitmaster in Australia, are at
and higher values across many fruit and savings on farm supplies, fuel, power supply base and provide further growth these challenges import revenues the forefront of this evolution.
vegetable lines for much of the year. and fertilizer, has now been running opportunities for our business. This improved across all key categories, driven Convenience is also another factor
The success of different operating for over a year. If you have not had the investment was a natural extension of by both volume and value. shaping other categories and consumer
models, such as MG Direct and the opportunity to review the benefits of what had been a very successful working Our imports team is focused on shopping behaviour. Easy peel mandarins
Grower Delivery Advice (GDA) portal, this association, please contact your MG relationship over many years. maximising sales of products not grown are fast becoming the citrus category
continue to gain momentum and bring procurement representative for further Our shareholding in both New in New Zealand or out of season. As leader and close to year-round supply,
efficiency gains for all. information. Zealand Fruit Tree Company Ltd and consumers become more adventurous including domestic production, is being
MG has progressively invested in its In December 2017 MG purchased the Zee Sweet Ltd forms an integral part of with their culinary skills and the food supported by our key supply partners
branch network infrastructure throughout JS Ewers Ltd Nelson growing operations. our commitment to more sustainable service sector grows, the opportunities Sunkist and Mildura Fruit Company. The
the country, with all facilities being Prior to this, MG had been working farming and to delivering better quality for more ‘exotic’ products also show recent introduction of an innovative
temperature controlled for the optimum collaboratively with the JS Ewers business and taste for the consumer through promise. pineapple coring machine to the
storage of product. Upgrading continues through various contractual arrangements investment in IP varieties. Dole is the largest selling proprietary market demonstrates how providing
as needed to cope with growth, as was and exercised the right for the acquisition brand in the market. They continue to the consumer with a cost-effective and
the case with our Palmerston North midway through the year. This substantial deliver high quality and innovation to convenient product can drive sales
branch which was upgraded with new glasshouse and outdoor vegetable The success of different the market place. MG has now been in momentum. Store trials are underway
chiller facilities during the year. production unit continues to deliver operating models, such partnership with Dole for 25 years and throughout the country and we expect to
Our investment in human resource against MG’s core purpose of generating Dole remains the leading brand across roll out more of these machines later in
is another constant for the business. shareholder wealth and the strategic as MG Direct and the the tropical fruit range of bananas, the year.
Our capability to provide consistent pillars that support this purpose. As well Grower Delivery Advice pineapples and paw paw. Our international supply partners are
and value-added support for our as being a profitable business, the scale, Our imports division continues to leaders in their particular field and most
suppliers and customers is contingent range, quality and continuity of supply it
(GDA) portal, continue drive initiatives which deliver great have a long-standing relationship with
on our ability to deliver on our human brings creates category support from key to gain momentum and tasting fruit and vegetables that will MG. This is a key factor in our success as
enhance repeat purchases and meet the they understand our marketplace and
resource strategies. Additionally, as
the business grows, and to effectively
customers. This allows other suppliers to
support category supply initiatives and
bring efficiency gains customer’s expectations for all round help to bring innovation and competitive
manage succession planning in all areas grow their business. for all. supply and diversity of product. This is no advantage to our business.
16 17Annual Review 2018
Annual Review 2018
®
Together. Stronger.
Together. Stronger.
®
UNITED FLOWER
GROWERS LTD
MG’s joint venture flower business, UFG,
reported a record year in both sales and
profitability, up from the previous year’s
high. 2018 has been characterised by a
number of significant events which have
impacted on the business. Despite these
challenges the business has responded
and performed well.
↑M
urray Tait from Te Mata Exports
The purchase of the Floramax flower
auction business in April 2017 required the
successful merger of staff and company
cultures which has been achieved, along
with the synergy gains this acquisition
expected to realise.
TE MATA EXPORTS 2012 LTD The business has continued to expand
services with a dual auction clock being
introduced into the Auckland branch.
MG’s joint venture export partner, Te Mata International trading of perishable After some consenting delays, UFG also
Exports, consolidated on growth in recent products is a challenging environment introduced a clock auction system into
years to provide another solid trading result. to operate in – so while not without risks the Christchurch market during October
Despite industry apple export volume our business growth is being managed 2018. This will further improve service
being down on forecasts, our market share prudently. Fundamentally, this relies levels to both suppliers and customers
grew against this trend. Generally, export on partnering with quality growers and alike and deliver efficiency gains for the
apple values were lower than the previous working collaboratively to achieve the business.
year but overall our revenue showed strong best possible returns. This also extends With all the changes and disruptions
gains on the back of improved volume. to enhancing customer relationships behind us, the focus is on continued
As our apple business continues to show by providing sustainable business commitment and stabilising our services
year on year growth, other products in the partnerships. To maintain service levels to flower growers and buyers. We plan
portfolio are also showing rapid growth, as we continue our growth trajectory, to move forward from here by continuing
in particular citrus. Our diversification additional human resource is being to develop programs, resources and
strategy continues to gain momentum with employed. opportunities that best benefit everyone
non-apple product lines now representing Our export industry has enormous associated with the industry. This includes
approximately 50% of turnover. The growth potential – our ideal climate access to analytical and technical
business is now trading product from and soils, investment in R&D and new information to better assist flower growers,
New Zealand, Australia and the USA. varieties, a focus on best-practice expansion of our digital auction platforms
This continues the strategy of linking growing, our proximity to key markets and and the introduction of remote buying
global opportunities through the Group’s the global environmental consciousness (cloud auction) to the South Island, or
relationships to Te Mata Export’s reputable of consumers all have the New Zealand finding more ways to improve the demand
customer base. horticultural industry well positioned. for New Zealand grown flowers.
18 19← LaManna Premier Group
LPG Farming Operations
Annual Review 2018
Annual Review 2018
Board of Directors
From left to right: Mark Plymin (Chief LPG Warehouse and
Financial Officer)*; Andrew Fenton; Market Operations
Dean Gall (Chief Operating Officer)*;
Brian Gargiulo MBE (Chair); Anthony Di
Pietro (Group CEO); Bruce Irvine;
Jo Minton-Connell (GM Human
Resources)*; Peter Hendry; Simon
Hardie (Chief Commercial Officer)*.
®
Below left: Mark LoGiudice;
Together. Stronger.
Together. Stronger.
Below right: Duncan Pryor (Secretary to
the Board)*.
*Executive Management Attendees.
Brisbane
®
AUSTRALIAN OPERATIONS – LAMANNA PREMIER GROUP Perth
2018 was a challenging year on many The LPG business handles over 20 enablers for improvement in this area. Adelaide Sydney
fronts, weak market conditions and million cartons of produce per annum. The final stages of our network
product values across LPG’s key Product handling efficiency is therefore and systems integration is almost
categories being the most significant a critical component in capturing cost complete. Ongoing development and Melbourne
disruptor. efficiencies. A full review of our logistics implementation of business analytics
Low product values on certain lines and service provisions is well underway. tools are also underway, which will
have become the norm for an extended The business is, however, mindful of the improve the availability of information to
period now. We need to adapt to this need to balance growth opportunities support sound decision making.
Profitable sales growth initiatives
challenge and the changing market
conditions and look to new initiatives in
with a cost efficiency focus.
LPG has been working hard on are a key priority - this is underpinned
LPG FARMING OPERATIONS
order to mitigate some of the economic business improvement strategies for by building on initiatives that allow for
consequences. This may take some these disruptors and on a number of key having ‘skin in the game’ and developing Innisfail Banana Farming Company Freshway Farms LPG Lancaster Farming
time to achieve but initiatives are well priorities in the immediate future. First strategic grower partnerships and (Joint Venture with the Borsato Virginia, South Australia Lancaster, Victoria
underway. There are some early signs of and foremost, the executive team has customer relationships. Family), Innisfail, Queensland - 2.7 hectares of greenhouses - Hydroponic crops grown under
improving market conditions which are been realigned and refocused on these Significant post-merger efficiency gains - Circa 142 hectares under crop - Growing tomatoes, capsicums, a retractable roof structure
also encouraging. key priorities. They are also focused on have been implemented during 2017 and - Circa 340,000 cartons produced cucumbers, zucchini and eggplant - Stage 1 (5 hectares) of a 3 stage
Sales volume on some lines has also ensuring that the company values and 2018, with further gains initiated as we annually - Circa 160,000 cartons produced 25 hectare project complete and
deteriorated as over production has culture continued to be aligned with the enter 2019. We will take lessons from the annually under harvest
limited opportunities into key customer organisation strategies. past but have a firm focus on the future. Australian Banana Company - Initially growing gourmet tomatoes
accounts. New commitments from these Investment in resource and We remain steadfast on our commitment Innisfail, Queensland LPG Mercuri Farming - Circa 250,000 cartons to be
customers are being built on the back of infrastructure within farming to invest in our people and communities. - 2 banana packing facilities (Joint Venture with the Mercuri produced annually in Stage 1
our farming operations and by providing operations has commenced to provide Whilst there is uncertainty on the - Specialising in banana packing Family) Lancaster, Victoria
more certainty for the business across the improved stewardship on operational timing of improvement of the low-price - Circa 1.2 million cartons packed p.a. - 57 hectares of field tomatoes
core categories of bananas, tomatoes, improvements, quality and consistency environment we remain optimistic about under crop
pumpkin, melons and citrus. of supply. the future. MG and LPG are taking a long- arwin Fruit Farms
D - Circa 340,000 cartons
Consequentially, our farming operations Efficiencies across warehouse term view so that, whilst the immediate (Joint Venture with Piñata Farms)
also suffered from depressed market operations and productivity are a complex focus and priorities are to strengthen the Humpty Doo, Northern Territory Shamrock Gardens
pricing. Some categories have experienced area of the business and will take time to business to address the challenges, the - 369 hectares under crop (Joint Venture with Galwey Family),
10-year pricing lows which, to a certain come to fruition. Direct to store models, strategic focus is to continually improve - Growing bananas, pineapples and Broome, Western Australia
point, are beyond our control. As such, similar to those implemented in New the business model and associated tropical fruits (primarily mangoes) - 121 hectares of seedless
farming yields and operating efficiencies Zealand operations, along with on-farm infrastructure to take full advantage of - Circa 320,000 cartons produced watermelon and pumpkin
are the immediate focus to mitigate weak quality assurance, compliance and future opportunities and set the business annually - Circa 3 million kg's produced
market conditions where possible. technical support initiatives are all key up for long term sustainable success. annually
20 21For some time now, investment in our people,
Annual Review 2018
Annual Review 2018
growers and community has been part of
our strategic fabric, with a number of unique
initiatives being developed as a result.
®
Together. Stronger.
Together. Stronger.
®
↑ MG's Intern Director Trudi Webb
® GROWING YOU MG’S INTERN DIRECTOR – TRUDI WEBB
We have made significant investment in provide insights on topical issues The MG Marketing Board is pleased Trudi is part of a fourth-generation
the grower development programme, affecting our industry, gain feedback and to announce Trudi Webb as the family growing enterprise, Webb’s
partnering with organisations such as respond to questions. We encourage recipient of the 2017 Director Internship Fruit - arguably one of New Zealand’s
Lincoln University, to offer our growers you to participate in these meetings for MG Marketing. most successful summerfruit and
access to some of the latest thinking to enable a two-way flow of ideas and The director internship was apple producers. Alongside her
and learning within the sector – this information. introduced in 2015 as part of the husband Simon, Trudi operates the
is our Grower Development Workshop The Director Internship programme ® Growing You initiative and also original family-owned orchard that
Programme. We are currently looking was introduced in 2015 with the aim of formed part of the MG Board’s strategy was established over 100 years ago on
at additional programmes that include encouraging shareholders to grow their to broaden the knowledge and 32 hectares of land near Cromwell in
elements of the Graduate Programme knowledge and governance experience. experience base of our shareholders Central Otago.
and Sales Academy and potentially The position allows the intern to attend and their families, while giving those Trudi holds a first-class honours
extending to a growing academy. all meetings with full speaking rights, but with an interest in the governance Bachelor of Applied Science (Horticulture)
Our biennial regional grower shed no voting rights, and is supported by a of MG Marketing a taste of what is degree and is Chairperson of the Otago
meetings were conducted across the mentor from the MG Board. Trudi Webb involved. While the intern is not an Fruit Growers Association. Her wealth
country. This is our opportunity to keep has now joined the programme, being actual director, the appointment of experience in the summerfruit sector
the grower Co-operative abreast of our second Director Intern, as the Co- allows the intern to participate and underpins her vision for the industry
MG’s recent initiatives, discuss the operative's commitment to developing gain experience in MG’s corporate of environmental and economic
financial performance of the company, the governance skill set of our members. governance. sustainability for future generations.
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