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Home / Bay of Plenty Times

Bay man new head of Kiwi board

By Carmen Hall
NZME. regionals·
8 Oct, 2015 02:30 AM4 mins to read

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Geoff Morgan.

Geoff Morgan.

Bay businessman Geoff Morgan was recently appointed to chief executive of the New Zealand Kiwifruit Board. The Land asked the 58-year-old what challenges lay ahead for the industry and how he would tackle his new role.

Previous role?

Chief executive, ZiwiPeak Ltd, Mount Maunganui

Past experience?

I have a B.Com (Economics) from Otago University and have been involved in NZ exporting since 1980. Most of my experience has been in the meat and seafood industries but my last role at ZiwiPeak was with a fully branded FMCG/retail product.

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I have operated in all NZ's main export markets including Europe, North America, South America, Middle East, China, Korea, Japan, South East Asia and Australia. I have worked offshore representing NZ companies in London and Sydney.

This has given me a very thorough understanding of chilled food exporting from New Zealand and the distribution logistics and retail and food service networks throughout the world.

How would you describe your role and what does it involve?

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My role is to ensure KNZ has the correct information and analysis to ensure compliance with the Kiwifruit Export Regulations 1999. This involves building strategic relationships and trust with Zespri, fruit exporters, post-harvest companies, grower representative groups and key government departments.

KNZ must also manage and approve the Collaborative Marketing process that allows exporters to sell NZ kiwifruit into world markets alongside Zespri. We must have a high level of knowledge on how those markets work, and what initiatives will increase wealth to all NZ kiwifruit growers and suppliers. This will ensure long-term growth and stability of the industry.

What will be one of the first jobs on your agenda?

One of the interesting things about this job is that the KNZ board wanted to appoint someone with no connections to the kiwifruit industry. This was to ensure there were no conflicts of interest or preconceived ideas. I am new to kiwifruit and must get up to speed as quickly as possible on how the industry works, building my product knowledge of kiwifruit and orchards, and post-harvest packing and handling.

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KNZ also regulates kiwiberry exports to markets other than Australia. This is a totally new product to me.

What are you looking forward to the most?

I have always been involved in exporting and kiwifruit really is one of New Zealand's great export success stories. Here is a product that takes all the "clean green" attributes of New Zealand and puts them in a healthy, nutritious high value food, which is in big demand throughout the world.

Being part of that industry, and the unique role that KNZ plays, is exciting. I believe KNZ can really assist the industry, and all New Zealanders, to gain greater recognition and value from this wonderful export opportunity.

How would you describe the current shape of the kiwifruit industry?

I think the industry is in a very strong position. The recent Psa shock has shown that the industry can come together quickly and respond rapidly to very serious challenges. The recent Kiwifruit Industry Strategy Project (KISP) shows that over 95 per cent of growers support the current structures.

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Growth in kiwifruit production and returns are strong, thanks to a stable industry and the large investment in markets and brand made by growers and Zespri. Gold has benefited from this marketing investment and sells at a significant premium over Green fruit.

Lower fuel prices and exchange rates should continue to assist grower returns in the short and medium term, and although world economic growth projections are low for the next few years, New Zealand kiwifruit is experiencing strong demand in its category and in emerging markets.

What has been the greatest hurdle over the past 12 months for the industry?

There are always many challenges facing different parts of the industry at any one time, but I think the volatility of the NZ dollar against the US dollar has the greatest impact on OGR (Orchard Gate Returns). This exchange rate risk is well recognised and managed by Zespri but it creates uncertainty and volatility in markets, freight rates and the cost of doing business.

What is the biggest challenge heading into 2016?

Probably the biggest challenge going forward is maintaining volume growth and increasing prices in a world market where economic growth is slowing.

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Emerging markets like China have gone from double-digit growth to mid-single figures, and mature markets like Japan, Europe and USA are hovering around 1 per cent growth. This is where having a superior product at retail and great brand recognition becomes really important to maintain high value returns.

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