Waikato University’s professor of agribusiness, Jacqueline Rowarth, says too many NZ dairy companies simply don’t appreciate the value of the product before it leaves the farmgate, which means they’re not promoting it to its full advantage.
“They’re missing the point of what happens before the farmgate,” she says. “Why aren’t we marketing on this basis?
“Westland has certainly made some gains in this area, but we need to go further. We’re the third-lowest user of antibiotics in the world and we don’t use growth hormones. We have some of the best water quality in the world, so it’s really irritating that a whole heap of people go on about our water quality when it’s so good.
“What NZ already does, is what everybody wants. But we haven’t been marketing it well.”
Westland’s chief executive, Rod Quin, gave notice of his resignation in February after seven years in the role. In that time the company has added a new drier at Hokitika to produce high-value nutritional products and a new UHT plant at Rolleston is about to get under way. He has been asked to remain as chief executive until his replacement has been found.
West Coast Federated Farmers’ dairy chairwoman Renee Rooney says Quin’s replacement will need to show clear, strong leadership to move the company forward. Everyone has an expiry date, she says, and while Quin has overseen the development of the new drier and UHT plant, maybe it was time for fresh eyes.
“It’s always hard to know the best time for a change of leadership and it’s never a good time, especially when you’re taking a company through growth and change.
“At heart we’re a small co-operative with really strong values and so many loyal suppliers that need a leader who can engage with them on the ground. A leader needs to have the whole team on board and that includes the dairy farmers.”
At one of the West Coast monitor farm field days recently, farmers generally agreed seven years was probably long enough in the role of chief executive and fresh ideas were good for any company. However, they questioned the timing, when the industry was wallowing in poor returns.
Their criteria for a new boss of their company centered around someone who related well with farmers and kept them informed, honestly, about what was happening. Some said that hadn’t been done well enough in the past.
While Quin had introduced added-value avenues to the company, farmers wanted more and A2 milk was one aspect that had been squashed since he took over the role.
Rowarth says a whole organic marketing approach would be faster and simpler than A2, which requires a shift in the herd. NZ dairy farming is already meeting the criteria for what consumers want organically, she says, companies just aren’t using it to market their product.
The organic market is expected to grow by 12% through to 2019 and she says the NZ dairy industry has the product that meets the general understanding of what is organic.
She points to the kiwifruit industry, where Zespri has done “a tremendous job” marketing Kiwi Green, which uses integrated pest management and meets customers’ requirements for a safe, green product.
So when it comes to appointing a new chief executive, Rowarth says Westland – or any dairy company – needs someone with integrity who understands NZ farming and can engage with the shareholders.
“A chief executive sets the culture and the NZ culture is different to any other place in the world. Farmers want to know what’s happening. They’re always adapting and adopting things and they want their company to defend them.
“Someone who is thinking ahead – to get out there and do the talking and see what the farmers are thinking.”
Since Westland was performing “relatively okay”, Rowarth says there might be a suitable person within the company. Otherwise it could be 2ICs from other dairy companies or beef companies – back to someone who understands the NZ farming system, she says.
Criteria for a dairy company boss
- An understanding of the New Zealand farming system
- Appreciates what NZ farming can offer customers
- Engages well with shareholders
- Integrity
- Experience in running a company
