Friday, March 29, 2024

Local contract a big arable win

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A big multi-year supply contract to Countdown supermarkets for local wheat and grain is regarded by the arable industry as a breakthrough. Until this year the in-house bakeries of the more than 180 Countdown supermarkets used premixed ingredients produced here and imported from Australia.
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But in a deal Christchurch-based Champion Flour Milling business innovation manager Garth Gillam said is the culmination of years of effort, the supermarkets’ bakeries have switched entirely to premixes made using locally-grown products for all in-store baking of loaves, rolls, buns and scones.

And having won that slice of business from Australian mills with their strategic partner Goodman Fielder, Gillam said Champion is now exploring with Goodman Fielder the very real potential to sell the Kiwi-made premixes to bakeries across the ditch.

“I’ve been working on this project for nigh on five years and there’s been excellent support from the likes of (Federated Farmers grains and United Wheat Growers chairman) Brian Leadley and a few of his team before that to build up to this first stage.”

Champion is a big player (its parent company is the sixth biggest miller in the world) and the contract with Countdown has boosted its total local milling grains volume substantially, increasing the 140,000 tonnes already grown in New Zealand to a possible 150,000 tonnes, with growth potential in the coming years.

“With supermarket chains, being price competitive is just a given.

“It was the grain quality and the innovation that we brought to the table that sealed it,” Gillam said.

“The innovation is what we can put into those premixes that makes it simple for the bakers and delivers what the consumers like. 

“We’ve just developed in the last month, on top of this NZ grains concept, a low GI break mix and it’s going gangbusters as well.”

Gillam said he can’t overemphasise the importance of collaboration between the firm, agronomists and the growing fraternity breeding the cultivars for the future. 

“Those years of work we’ve done, such as the coloured grains project, the rye corns, it’s all part of the offering we put in those premixes.”

Leadley said “This is a breakthrough, a real positive, winning back market share that had been filled by imported grain and flour.”

Before deregulation in 1987 NZ was self-sufficient in flour and grain but now as much as 70% is imported.

“If it’s grown here, transported here, milled here, goes to domestic bakers to wind up as a staple food – well, that’s a good story for employment and for NZ,” Leadley said.

“While we’re a wee way off standardising views on Country of Origin Labelling here I think it is true that not a lot of the population know so much of the grain and flour used in goods here is imported.”

The 2018 NZ Arable Farmer of the Year Syd Worsfold said “We grow good stuff here. We have a robust quality assurance programme.

“I’ve always been a great fan of origin labelling.

“We probably couldn’t produce enough wheat and grain for the entire country but the more we can do and the more consumer recognition of that, the better.”

Gillam said with Countdown embracing NZ grain and moving so quickly to change the firm has challenges sourcing enough grain. 

“It’s not about getting the cheapest grain. I know we’ve got to be competitive but we need quality and continuous supply or there’s a risk all the good work we’ve done could be ruined.”

Gillam wants growers to take a long-term view when making their planting and contract supply decisions. 

It grates a bit with him the hectares being devoted to feed wheat dominate.

“Growers here are very astute and they’re autonomous as well. 

“Brian, myself and others have been signalling these opportunities for a while now. 

“We’re really keen for growers to understand the long-term opportunities. 

“I know growers will think ‘oh, I’ve heard this story before’ but now we have the evidence. 

“It’s in the supermarkets. You couldn’t get it more visual if you tried.”

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