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Lockdown fever saw many more New Zealanders turning to home baking and a desperate shortage of flour on supermarket shelves.
While this may have frustrated home bakers, it has been a boon to a Timaru-based flour mill – owned by 12 South Canterbury arable growers.
Farmers Mill says that during the lockdown it picked up new business as supermarket customer demand for flour swelled five times above normal.
“The COVID-19 pandemic has brought about wholesale change to the market make up, supply chain and consumer requirements,” Farmers Mill general manager Mark Lawrence told Rural News.
“The industry has seen a 500% increase in retail flour requirements during the lockdown, but on the flipside a significant drop in wholesale volume.”
Lawrence says there was no issue with wheat supply, but production constraints and the packaging supply chain needed addressing.
“Our two major customers – Griffins Foods and Foodstuffs South Island in-store bakeries – have both increased the use of flour. However, a significant proportion of our bakery/cake market segment had to close during the lockdown.”
Previously, Farmers Mill only had limited access to the retail flour market and had never supplied Progressive Enterprises – owners of the Countdown chain of supermarkets.
“Due to quick thinking on the part of our sales and marketing teams, the flexibility of our operations team and support from our packaging supplier, we have been able to change the focus of our production and ramp up supply of 5kg retail flour into Foodstuffs (owners of the New World and Pak and Save supermarket chains) South Island and 10kg retail flour into Foodstuffs North Island,” Lawrence says.
The company’s flexibility meant that within 24-hours of being contacted by Progressive Enterprises requesting retail flour, trucks were leaving its factory loaded with flour.
“The quick actions of the sales and operations teams in implementing a change in market focus – due to market requirements – has enabled the business to continue operating and retaining all of our 25 staff,” Lawrence says.
“The board of directors are proud of the loyalty and commitment shown by our employees in the face of a very stressful few weeks – both at work and at home.”
Farmers Mill was opened in May 2013 with Griffins Foods as its cornerstone customer.
It is 100% owned by 12 South Canterbury arable farmers and proud of the fact that it is the only major mill in New Zealand using 100% NZ wheat.
Griffins Foods, Foodstuffs South Island, as well as manufacturers and artisan bakeries across NZ make up its customer base. In July 2020, the company will also begin supplying Goodman Fielder’s three South Island manufacturing plants in Dunedin, Oamaru, and Nelson.
Lawrence anticipates flour production will slow down in May as more and more people go back to work and the demand from home bakers subsides.
Safety paramount
Lawrence says to meet the requirements of social distancing and staff safety during the Covid-19 crisis, a number of measures have been implemented.
“Within the mill, there are limits on how many staff are allowed in the cafeteria at any one time, meetings are held remotely, and shift changeovers are carried out with no face-to-face interaction,” he told Rural News.
“There is a strict policy in place that any employee feeling unwell or showing cold or flu-like symptoms is to stay at home.”
