Saturday, March 30, 2024

DINZ tightens belt on expenditure

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Deer Industry New Zealand (DINZ) is trimming its budget as it prepares to manage activities in the new reality post covid-19.
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DINZ chief executive Innes Moffat said the review of the organisation’s activities is a proactive move to ensure future sustainability.

DINZ, which is funded by farmer and processor levies on venison and farmer levies on velvet, is preparing its budget for 2020-21.

“The covid-19 pandemic means we are working in extremely difficult times for levy payers, so we are looking at all activities to ensure they align with the new reality,” Moffat said. 

This is particularly true of the organisation’s market-support activities.

“We are now in discussion with venison marketers to ensure our plans align with their new priorities,” he said.

Moffat said the budget review means taking a good hard look at priorities.

“We are taking a conservative approach to income for the year ahead and will operate within our income and not run down reserves further,” he said.

“This means we will trim expenditure across most areas of the organisation.

“Across our work, we need to be more aware of possible areas for cost savings.

“Our farmers and marketers are going to be in for a tough time in the year ahead and we will be looking at all aspects of our expenditure and considering if there is a way to do it more cost-effectively.

“There are lots of services farmers will still require of the industry and we are aware of that and trimming expenses accordingly.” 

The brunt of the budget reduction will fall on the Primary Growth Partnership (PGP) Passion 2 Profit (P2P) programme.

“There’s a couple of projects we will ease back on expenditure in consultation with the venison marketing companies,” he said.

The costs to deliver farmer information will be kerbed.

“There will be change in the way we deliver information with the idea being able to integrate Advance Parties, environmental groups and regional workshops where that is feasible.

DINZ will continue to put money into long-term research and in-market development alongside venison companies.

Velvet is a winner with an increase projected for promotional activities.

“It will be a case of cutting the cloth to meet our income as we rebalance some areas of DINZ expenditure in our activities,” he said.

While the budget review will focus right across the board there will be opportunities in particular to make savings from what was learnt under lockdown.

“We know meetings are necessary, but we also know we can operate and bring people together on Zoom,” he said.

“Now that we are familiar with the efficiencies of Zoom and Google Meet, we will consider what is essential before booking flights, particularly for groups that meet regularly. We think more meetings can be done online so there will be a significant ease back on travel.”

Moffat says DINZ will be taking a good look at domestic travel and some discretionary expenditure.

“We need to travel, but airfares have increased extortionately,” he said.

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