PLEASE GO
ORGANIC
New Zealand’s organic winegrowers
are pleading with grape
growers to convert to organic
production to meet soaring
international demand. With a
worrying shortage of organic
wine grapes produced by this
country, industry experts are
concerned that pressure from
established wine companies
and those new entities wanting
to purchase organic fruit
for overseas demand will be
turned away. BioGro NZ senior
auditor Jared White says the
organisation – which certifies
the majority of organic vineyards
in New Zealand - regularly
receives queries about the
availability of organic grapes for
sale, and the shortfall should
be enticing more growers to
become organic. “It takes 36
months to convert a vineyard
to organic production,” he says.
“If you think organic growing
may be your future, ensure that
no non-organic products are applied
to your vineyard as the harvest
approaches. After vintage,
you can register with an organic
certifier, and work towards full
organic status in 2021.” The
organic certification process
takes three years once the last
conventional spray is applied to
a property. Therefore, it is common
for growers to record their
last conventional product use
just before harvest, so that in
three years’ time, their harvest
can be fully certified organic.
The thirst for organic grapes in
New Zealand is being driven
by international demand, with
some organic growers now having
waiting lists wanting their
fruit. Organic grape growers
tend to focus on quality rather
than quantity – opting to grow
high-quality fruit rather than
aiming for maximum yields –
which has proven a successful
business strategy for many. According
to International Federation
of Agriculture Movements
statistics, organic markets are
continuing to grow worldwide,
growing to nearly US$90 billion
in 2016.
SPIERINGS GOES
Fonterra’s chief executive Theo Spierings has announced he
will step down from his role later this year, as the company
reels from its Beingmate loss, but says he will stay temporarily
as a strategist focusing on China. Spierings has led the
company for seven years, and his resignation came on the
same day that Fonterra announced a first-half loss of $348m
after taking a large write-down on its Beingmate investment
in addition to damages paid to its rival Danone. Fonterra board
chairman John Wilson says the search has already started to
find Spiering’s replacement, but an announcement on who
will lead the co-operative into the future could take some
time. “The board is currently in the process of shortlisting a
replacement for Theo,” he says. “It is absolutely clear that
Theo will continue in the meantime to drive the corporate
strategy and business with special emphasis on China.” Spierings
was in the spotlight late last year when it was revealed
he was the country’s highest paid worker on $8.3m in the
2016/17 year. He has been dogged by rumours over the years
that he was wanting to leave the dairy giant, and an Australian
newspaper in 2016 reported that his replacement could be
Air New Zealand head Christopher Luxon. Spierings says the
time is right for both him and the co-operative to move on. “I
look forward to new challenges, but right now my focus is on
Fonterra. That will be the case until I finish with the co-operative.”
He says the loss – exacerbated by the payment to
Danone and the Beingmate impairment – is a one-off event,
with the company’s normalised net profit after tax adding up
to $248m. Wilson says the board has assessed the carrying
value of Beingmate – in which it holds a 49% stake – at
$244m, therefore taking an impairment of $405m. “While
we appreciate the substantial opportunity and privilege of
our business in China, our shareholders and unitholders will
be rightfully disappointed with this outcome,” Wilson says.
Fonterra paid the French conglomerate Danone $183 million
to cover recall costs following a 2013 incident when Fonterra
recalled baby formula due to fears of contamination. At the
time, Fonterra reported that it was “later confirmed that there
had been no food safety risk to the public.”
WINE AWARDS GET PARTNERS
The NZ Organic Wine Awards have welcomed Vintec and Electrolux as partners
for 2018. Vintec (distributed by Electrolux NZ) are New Zealand’s leading specialist
in wine storage and refrigeration solutions, and will be providing a
wine fridge for use throughout the awards and tasting season, ensuring
that the wine is stored adequately during judging. The company will also
be the naming sponsor for one of the trophies. The partnership represents
the growing maturity of the wine awards, which have allowed
the industry to grow its audience whilst retaining independence and
stance on organic wine. The 2018 awards – the fifth competition to
be held – was launched on February 20, with results published on
May 2. For more information see www.organicwinewards.co.nz or
for more information on Vintec visit http://www.vintec.co.nz/
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