Friday, April 26, 2024

Improving customer links

Neal Wallace
Silver Fern Farms new chief executive Simon Limmer wants to take the company even closer to its customers and has started employing more staff in key markets.
Reading Time: 3 minutes

Three months into the role Limmer wants to strengthen those links, continuing a move started under previous management.

The former chief operating officer with kiwifruit marketer Zespri, Limmer said one of the biggest differences he noticed between the two sectors is that Zespri was formed to market kiwifruit and invest in research and development for the industry’s long term future.

In contrast the meat industry has not had that luxury, trading a lot of value away upfront to attract stock to their plants and having to invest heavily in supply chains and processing plants that divert funds from the market.

Kiwifruit growers have operated a single desk seller for 25 years and the Zespri brand has existed for 20 years. Limmer estimated growers have invested $1.5 billion to create a “phenomenal powerhouse that pulls value out of the market”.

He has no doubt New Zealand red meat is the best in the world but it faces extra challenges from a crowded global market supplied by multiple sources of protein and falling livestock numbers.

“It is hard to get the mechanics right so we are investing in the market and the brand.”

That means continuing to build relationships with customers and consumers supported by a brand and supply chain providing product of guaranteed quality, healthy attributes, points of difference, consistency and traceability.

“We need to invest in the brand but we need to underwrite that brand with a quality proposition which we can deliver on.”

Limmer has already moved to strengthen the marketing presence, appointing two marketing staff in North America and a refresh of its China strategy is likely to see more in-market staff employed there.

Growing demand from consumers in North America and China for quality, healthy, ethically produced meat is an opportunity for NZ meat companies but especially for Silver Fern Farms because of research it has done on eating quality and traceability.

“We all have a compelling story with a focus on NZ production but what we have done at Silver Fern Farms takes it a bit further.”

The partnership with Shanghai Maling is critical, not only for providing financial stability but opening marketing opportunities and helping Silver Fern Farms navigate the complex Chinese market.

“We are only beginning to unlock opportunities in that market and Shanghai Maling is part of that process.”

Limmer said he has not seen the degree of animosity he had heard existed in the meat industry and attributed that to the introduction of new personalities across several companies.

He believes there is a co-operative environment leading to opportunities for pan-industry and inter-company collaboration.

“Where we find areas for collaboration we absolutely need to take them such as health and safety. We need to work together to protect our people.”

There is further potential for collaboration to address challenges such as labour shortages given it is an issue affecting all companies.

Entering the meat industry with its reputation as a tough business for tough people was not taken lightly by Limmer but he saw much he likes in Silver Fern Farms.

“What attracted me was the brand, the opportunity to evolve the market and get closer to customers and consumers and extract more value from the product.”

In addition, Limmer was lured by its strong balance sheet, clear strategy, cost-effective processing and a workforce that had bought in to the direction the company was headed.

There are similarities with kiwifruit, in that both businesses are owned by growers who have invested heavily in the primary sector and are exposed to the vagaries of weather and the environment.

Limmer worked for Zespri since 2008 and in 2013 was appointed general manager for China before being appointed chief operating officer in 2014.

On graduating from Waikato University with a management, commerce and marketing degree he began his career with Ford.

Before working for Zespri he spent 14 years in management and business development with Veolia Environment, a multi-billion dollar international environmental services company reaching the position of deputy vice president- commercial director of global industrial markets.

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