Fonterra's opportunities, risks
At Fonterra's recent annual meeting in New Plymouth, chair Peter McBride spoke on the co-op's changing global operating context and how to manage risk. Here's some of what he said.
Chief executive Jon Calder says the event has “a strong dairy bias” and moves are underway to connect more with the red meat, horticulture and arable sectors.
Nearly half (42%) of the visitors to the annual four-day event are related to dairy, according to a survey by the National Fieldays; about 32% of visitors are either sheep or beef-related or both.
Calder says while the dairy and sheep/beef balance is “not massively out of kilter, there is a strong dairy bias, partly because of our history and geographical location,” he told Rural News. “So we’re looking to connect a lot more with horticulture and red meat sectors, and with the arable sector.”
Meat Industry Association chairman Bill Falconer is now on the National Fieldays Society board.
Calder says there are no plans to have a separate event for the red meat sector; it will start as an extension of Fieldays.
The 2015 National Fieldays starts June 10 and Calder expects “business as usual” despite the downturn in milk payouts.
“Hopefully we can bring the customers; with the current economic climate and low dairy payout perhaps there could be a reduction in spending. But the three regional field days leading up to the National Fieldays [have shown] some positive signs.
“Our farmers are running large businesses and there’s a lot of forward planning. Look at the advancement in technology and systems over the last five years: our farmers are keeping up with that, so if they are not here to buy they are certainly here to learn and look at products they are looking to procure over the next 12 months.”
A lot of sales leads are generated at Fieldays, Calder points out. Sales are made in the weeks and months following.
He is hoping for 130,000 visitors but points out that visitor numbers fluctuate; weather has a greater impact on turnout.
Calder says visitor numbers is just one matrix, “certainly not the most important one”.
“We have 980 companies exhibiting with us and we make sure we design and build the best event for them to be successful. That’s our main focus, plus a great experience for the people who visit us during the Fieldays.
“Getting 130,000 people would be nice; it means we would have a whole lot in the kitty.”
All exhibitor sites were sold out by January; the challenge now is to bring people to the exhibitors.
Last year the National Fieldays Society put at least $200,000 back into the agricultural sector via scholarships, grants and donations. The board wants to grow that amount, Calder says. “The financial success of Fieldays isn’t just for turning a surplus, it’s to give us more for good work.”
This year the society has spent $1.6 million on improvements to Mystery Creek including, notably, filling in the lake beside the main pavilion, taking nearly 90,000m3 of earth. This has added 34 sites t0 that area. Another 70 sites have been created in the tractor and machinery area.
Calder believes the event will look and feel different. “Our physical footprint has expanded.
“Traditionally about 94% of the event’s footprint has been agricultural and 6% rural living; but the new layout has shifted agriculture up to 95% and 5% is for rural living. This is an important step; we are conscious that while lifestyle products appeal to everybody, we are an agricultural event.”
The Fieldays will also have new seminar rooms. National Fieldays Society and Federated Farmers are teaming up to hold seminars there on topics “exciting and relevant to what’s going on in the agriculture sector now,” Calder says.
Prime Minister John Key is expected to be the chief guest at the official opening on June 10. Calder refuses to confirm this but says support from the Government has been “fantastic”.
“Last year we had seven or eight cabinet ministers in addition to the PM, he says.
