Column by Raewyn Bleakley, Chief Executive, NZ Food & Grocery Council.
We expected 2023 was going to be a significant year for the food and grocery industry, and unexpected events in January confirmed this beyond a shadow of a doubt. With the change in Prime Minister and the flooding in the northern part of the North Island, both the political and economic environments are already being impacted in ways we didn’t predict.
The shutdown for health and safety reasons of Todd Energy’s Kapuni plant and the exacerbating of the already fragile supply of carbon dioxide, along with the egg shortage and further increases to food prices, has put our industry in the media and on people’s minds.
The weather events wreaked havoc in many ways. Tragically, lives were lost, and homes, businesses, and amenities damaged. The emotional impact of such an event can’t be underestimated. It’s been heartening to see our industry pull together so well, and that’s a testament to the type of people who make up the food and grocery sector. I’ve heard stories of suppliers helping retailers, retailers offering support to competitors, and people really digging in to get done what needs to be done.
Having worked at Waka Kotahi and Fire and Emergency NZ during other significant events, I know the processes that kick in to keep the vital transport network operating and to protect life and property.
The interdependencies within our industry are very clear when something like this happens. We’ve also been reminded of the importance of leadership and effective, timely communications. No doubt, many businesses will have learnt lessons from initiating their business continuity plans.
The assaults on infrastructure and property in our long, skinny country seem relentless, and the bounds of what we should be prepared for keeps shifting. This is what living with climate change means, and if we learn nothing else, surely it must be the value of being prepared, working together, and making sure we’re all doing everything we can to slow it.
On that note, the NZ Food and Grocery Council (FGC) will be communicating more regularly on the substantial work programme of our Sustainability Working Group. An example of this is a briefing of industry leaders on the Plastic Packing Product Stewardship scheme (PPPS) co-design project, which will take place in mid-February.
Environment Minister David Parker announced last September that The Packaging Forum and FGC is leading the co-design of a regulated scheme, with funding from the Waste Minimisation Fund, the Forum, and FGC. The briefing will provide an update on progress.
The Government’s reforms of the grocery industry have progressed as expected, with the select committee hearing submissions into the Grocery Industry Competition Bill starting in January in order to meet their report-back date in March. The appointment of Dr Duncan Webb as Minister of Commerce and Consumer Affairs gives us certainty as to who will lead these important changes through the next phase. We also have an election date of October 14 to shape the year further.
FGC has welcomed the reforms and is now working on how we can support our members and the wider industry to be ready for the new legislation, and in particular, the Code of Conduct. We’re considering options for what training, guidance, and legal support our members would benefit from so they can enter the new environment understanding what has changed and what hasn’t in terms of how they interact and negotiate with retailers under the new Code. This is high-priority work to make sure our members and consumers see benefits from the reforms as early as possible.
