Tātau Tātau Commercial make significant investment into iconic local landmark

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One of New Zealand’s most iconic beach-side holiday parks will continue to welcome thousands of holiday makers while remaining in local ownership.

Tātau Tātau o Te Wairoa Trust’s commercial entity today announced its purchase of the Mahia Beach Motel & Holiday Park, securing an asset that is pivotal to the Wairoa and Mahia community and local economy. This beautiful piece of land is enjoyed by both national and international holiday-goers.

Tātau Tātau Commercial Limited Partnership Kaihautū (Chief Executive) Aayden Clarke said it was important to acknowledge that the 3ha of residentially-zoned beachfront property will continue to provide affordable accommodation for holidaymakers.

“This is a slice of paradise on the east coast has been incredibly popular for generations of whānau as well as national and international tourists.

He signalled future upgrades to the property, located at 43 Moana Drive which currently is an operating business consisting of a mixture of 24 accommodation units and 150 powered and non-powered camping sites.

“This is a mokopuna investment for us, meaning we have a long term outlook to the Motel & camp ground.

“We are committed to making improvements to the holiday park and adding additional value back to the community through upgrades which will enhance the quality of stay for customers.

“At the same time we see other opportunities that complement the existing use,” Mr Clarke says.

Tātau Tātau Commercial Limited Partnership was established to protect and grow the commercial assets on behalf of its shareholder Tātau Tātau o Te Wairoa Trust and the seven Kāhui (Beneficial entities).

Lewis Ratapu, Chief Executive of Tātau Tātau o Te Wairoa Trust commented, “Tātau Tātau are thrilled to be the new custodians of the iconic property.

“It is very important that our people and all visitors can access affordable holiday accommodation, something that is getting harder to achieve as coastal land increases in popularity.

“We are always looking to support further growth in our wider community and to secure a significant site like this is exciting. This asset benefits all of our seven Kāhui, and obviously is of significant importance to one of those Kāhui, Rongomaiwahine.”

Rongomaiwahine Iwi Trust CEO Terence Maru acknowledges the collaborative mahi that has been done with the Tātau Tātau commercial organisation.

“There is so much potential to partner and deliver outcomes to our people while growing capability within our organisation,” Mr Maru said.

Former owner operator Isobel Creswell says ““whilst it was very difficult to let go of this park, I’m very happy it has gone to good hands. This campground now stays in NZ ownership and continues to be a holiday park for generations of families for years to come”

Isobel has been a key stakeholder of the Mahia community for 3.5 years providing affordable accommodation for all walks of life and attracting tourists to the small East Coast settlement.

Mr Clarke said it was important to highlight that “a key part of our Tiriti settlement is the evolution of Mana Motuhake of our whānau, hapū and Iwi o Te Wairoa, and this acquisition is part of exactly that.”

New economic development agency leader up for the challenge – Lucy Laitinen

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The Regional Economic Development agency has appointed Lucy Laitinen as chief executive. Lucy comes from a CE role at Anglican Care Waiapu and has also had several roles with World Vision.

The Regional Economic Development agency is another reincarnation of the region’s many approaches to boosting the economy, attracting and supporting businesses. It is charged with delivering on the Matariki regional economic development agency as well as having a role in the cyclone recovery. The agency is based in the business hub in Queen Street Hastings, alongside the chamber of commerce and other business support agencies.

What is your career background?
I came into my role after being CEO at Anglican Care Waiapu for the last six years, which is the social services arm of the Anglican Diocese of Waiapu.
I oversaw the organisation’s social service delivery and brought a strong focus on evidence-based interventions and social return on investment. I also drove a transformation in the way the Diocese thought about, and deployed, its financial resources for impact through its investment strategy, partnerships, and, most importantly, through its relationship with the Mihināre/Māori Anglican Church.

Prior to that I held several general management roles at World Vision NZ in Auckland and have also have experience in local government and a small amount of time in central government. I lived and worked in Finland earlier in my career (my husband is Finnish) and worked for the International Organisation for Migration, a UN agency, responsible for developing and funding projects across the Nordic and Baltic states on migration-related issues such as human trafficking, asylum, and labour migration. All of this has given me an eclectic experience and skillset but the common theme throughout my career has been a drive to make a measurable social impact.

What skills/expertise do you bring to the role?
I am comfortable working at both the strategic and operational levels, have a strong work ethic, and am known for getting things done. I am always keen to look for evidence and good practice, constantly ask the ‘’why’’ question, and will try new approaches and push boundaries where I need to. I have a strong moral compass and I am pretty unfazed by challenges. I have a lot of experience in developing relationships and working collaboratively towards common aims, which gives me a real buzz. This is important for REDA as we are going to be more of an enabler and connector, rather than an implementer. I love learning, too, which is lucky because role is so broad and there is so much to learn and so many people to meet in Hawke’s Bay.

What is your experience in economic development?
I did my Masters in Development Studies at the University of Cambridge many moons ago and that strongly informs my approach to economic development. There are a lot of strategies and approaches that can be put in place to achieve economic development outcomes but it is how those decisions are made, who makes them, for whose benefit, and how they interact with other strategies, approaches, and policy settings that is important. As an obvious example, we might want to drive the growth of our economy through building our local businesses but we will achieve little without ensuring our workforce has the appropriate skills, that there is affordable, healthy housing, good public health provision, and we manage the environment well. While I was at Anglican Care Waiapu
I led an investment strategy that prioritised environmental and social return alongside financial return. It was inspiring to work with businesses that are looking beyond just short-term profit to thinking how they can deliberately support environmental and social outcomes. We can learn a lot from a te ao Māori approach to the economy, which is by nature takes an inter-generational, inclusive approach.

What do you see as role and day to day tasks of the REDA?
To support the region to improve its productivity, performance and to support business growth, facilitate a more even distribution of economic benefits, and help get Hawke’s Bay in a position to respond to and mitigate the effects of disruptions and shocks. Right now I am working with my Board to establish our priorities and outcomes for the next year, focusing on those things that will have collective benefit to the region. REDA will largely be a connector and facilitator though over time we will likely take on a role as advocate and voice on issues related to the economy.

What is the agency presently working on?
We are a start-up so I am working on the operational nuts and bolts like setting up our IT environment, setting up a finance system, making supplier agreements, and so on. REDA has also funded the regional freight distribution strategy, which will be finalised shortly, and is leading a piece of work to explore our telecommunications resilience in light of the dramatic and unexpected loss of communications after the cyclone. We are also setting up the event and office space and are working alongside the Recovery Agency and others to ensure that we understand what is needed in the recovery from an economic perspective. Top of the very large to-do list is, of course, finalising REDA’s key foundational documents and developing a strategic framework, business plan, and budget so we can properly get underway.

HB has had has several attempts at economic development agencies – what do you think is different this time?
I can’t speak to what has been before but there are a number of factors that should help make REDA successful. Some of these include having a strong, credible board with a highly respected and experienced chair and the fact that each director is personally committed to better social and economic outcomes for the region. Our shareholder mix is also a huge factor. We have iwi represented among our shareholder group, not just as stakeholders, as well as business and local government. Their common desire for a strong, effective regional economic development agency gives it every chance of success. We are also fortunate in that we have an agreed upon set of values and aspirations as a region via the Matariki strategy. Yes it needs refreshing, particularly after the cyclone, but everyone I have spoken to is committed to a regional economy that every whānau both benefits from and contributes to. Another positive is that we can set ourselves up for what is going to work for Hawke’s Bay and our particular environment and needs. We don’t need to model ourselves on any other agency.

How will the private sector/local businesses be included/informed/involved with the agency?
Two of our shareholders directly represent the business community – the Chamber of Commerce and the new Māori Business Network. I have met with a number of local businesses in my first weeks in the role and I look forward to developing ways to ensure we have regular communication with and input from the business community as we establish ourselves.

What do you think are HB’s greatest attributes for building a strong economy?
Our economy is built on a strong food and fibre base, we have a good port and a good airport, a strong tourism offering, a growing tech/knowledge sector, and a fantastic lifestyle to help keep and attract business. We are also recovering from a destructive cyclone and face significant challenges around our roading network, water security, housing, and land use, for example. It’s vitally important that these challenges are faced together as a community with a big picture view so that decisions made it one area don’t have unintended consequences for another. I think our region’s continued commitment to sustainability and inclusivity and to working together will be absolutely key to building a strong economy that benefits everyone.

With a strong economy – what do you see as important social outcomes?
The Matariki strategy, set by our local government and iwi leaders, has set a vision for a sustainable, accessible and resilient Hawke’s Bay economy where every whānau and household benefits. REDA has offered to support Matariki to articulate outcome measures for region. For example, what is really important to us in terms of our economy, health, social, and environmental outcomes? To do that we need a good understanding of what the data is saying right now and once our outcome measures are in place as a community we can target our strategies and interventions towards those. As I said earlier, building a strong regional economy is just one part of driving better social outcomes but the types of indicators we would hope to see in time will be things like a lift to household income at all levels, more young people in employment, training, or education, less young people feeding into gangs, a stronger sense of social cohesion, and far better social and economic outcomes for Māori and Pasifika.

What future do you see for the Great Things Grow Here brand?
I think it is too early for REDA to have a view on the future of the GTGH brand. What I will say is that it is important for any region to have a strong regional brand and good, accessible information for people looking for information about the region, whether that’s investors, people considering moving here for employment, businesses looking to relocate here, tourists, and so on.

What role will REDA have with the business hub in Hastings?
REDA has been given the responsibility to set up and run a business hub in Hastings. We have office space on the ground floor of 101 Queen St East (the old Post Office building), which we share with the Chamber of Commerce, Export NZ, NZ Trade and Enterprise, Business Central, the Māori Business Network and Export NZ. We are also in the process of fitting out an events and meeting space next door to our office space. This space will include a large conference room, two board rooms, and three smaller meeting rooms, along with a kitchen and small reception area. Once the fit-out is complete and we have a pricing strategy and operating model for the space we will open it up to the public, most likely in early 2024.

What do you do in spare time?
My husband Harri and I have a twelve-year old daughter, Mila, and nine-year old son, Max, so spending time with them is a priority. We enjoy travelling and try to get to Finland every year or so to visit my husband’s family as well as old friends. This is obviously important for maintaining family and cultural connections but also to reinforce the kids’ language skills as we are a bilingual family. I am a trustee on the Connect Community Trust that runs Kuhu Mai, the integrated community hub for Hastings’ whānau pounamu (homeless). I also love to read, try and keep reasonably fit, and enjoy what Hawke’s Bay has to offer.

Local businesses tap into major water project  – Strata Group

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Strata Group was the structural engineer for the Waiaroha Discovery Centre and landscaping features, becoming involved in mid 2020.

Strata’s team led by Duncan Bruce, Nigel Grant, Fred da Silveira, Sam Stanton was responsible for the Construction Monitoring for the items it designed and also the structural elements that Stantec designed for the water treatment plant building at both Frimley and Eastbourne Street sites.  

Duncan says the final outcome is incredible and “a testament to the HDC and their commitment to educating the public about how we should respect our water supply.”

He’s proud of the role Strata as a local firm, just down the road from Waiaroha played, especially with many challenges along the way such as COVID and a cyclone.

The project had a lot of challenges along the journey and I am proud of the way our team worked with the client, other consultants and Gemco to make sure that we stuck to the brief and made sure that we stayed abreast of all of the moving parts to make sure that the structure was fully integrated with the overall design and inputs by others.

Duncan says his favourite feature of the discovery facility is the glulam structural timber portal frames that Strata designed alongside Timberlab.

“They’re a real feature of the building, as are the steel support frames to the magnificent carvings and perforated sheet metal panels over the entrance.”

Strong cultural emphasis influences design – DGSE

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When it comes to a favourite part of Waiaroha for DGSE as architectural designers, it’s the simple things that standout.

Ezra Kelly was the Project Principal from concept design onwards and he says the fins attached to the large water storage tanks are a stand out for himself and the DGSE team, which also included Alex Heperi as Cultural Lead and Project Representative and Stefania Ruiz as Documentation Lead.

“The fins to the tanks which act in part to ‘hide’ as much as you can 10 million litres of tank, but also add to the narrative by representing water/mist around the hills.”

With over 30 years in practice, Ezra says the Waiaroha project will be memorable from the overwhelming sense of collaboration across all parts of the project.

In my 30 years of practice this project represented the best experience of collaborative design, not just from within the core project design team – but amongst artists, client and most significantly mana whenua.

He adds that the most meaningful space for his team is the Mahau (the entry porch). “Seeing It in use at the opening event showed that Waiaroha had a broader use than simply education.

“Te Whare Waiaroha has been designed with whakairo, traditionally carved mahau representing the whakapapa of wai according to local iwi Ngāti Kahungunu ki Heretaunga which welcomes whānau into the whare from the marae atea.

Within the overarching narrative of the journey and Whakapapa of water – the education building was essentially the forest, given life by the water. ‘Ki Uta, Ki Tai’ from the mountains to the sea was the narrative woven through the site with the education centre representing the domain of Tane Mahuta, Atua of the forest.

The architectural design intent of the building was based on a forest canopy providing a sense of connection and transparency between the interior and exterior spaces.

Tane, also known as Tane nui a rangi was responsible from ascending to the upper most heaven to obtain the kete of knowledge which was also visually interpreted into the design of Te Whare Waiaroha.

Is your business performance meeting your plan?

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While completing a business plan clarifies and outlines your goals and objectives for the future, the key to making sure you are achieving your goals is to effectively measure and monitor your performance. We like to think all Businesses, regardless of size or industry have a Business Plan (and if you don’t then now is a great time to work on one!).

Following the disruptions experienced earlier this year, if you haven’t already then now is an ideal time to review this plan to ensure that it is still fit for purpose.

Review your Balance Sheet and Profit and Loss

By reviewing your balance sheet, you are provided with a clear overview of the current position of your business including the value of your assets and how much you owe. Consideration of your profit and loss will identify if your product/service pricing and sale volumes are providing enough gross profit to cover your overheads and provide a return to owners. This also allows you to calculate your breakeven point which is especially important in the current environment of inflation and interest rate increases. This review will also give you insight into what trading results you need to generate to reach the goals outlined in your business plan or provide you with the information necessary to alter your goals to better suit your current economic market/situation.

Utilise cashflow and forecast reports effectively Used correctly this is a great tool for breaking down exactly how you will achieve your financial business goals and will act as a check to ensure you are staying on track. In terms of the financial aspects of your business, you should be reporting regularly – for some businesses this needs to be daily, or weekly but at a minimum it should be monthly. Compare current results with your year-to-date data and review these figures against the business budget as well as previous years comparative figures, highlighting any variances or unexpected fluctuations for further investigation. Following the cyclone in February and the recession we are now officially in; we are seeing more and more businesses seeking guidance on how to rectify or account for the ‘variances’ so many are experiencing – and a cashflow forecast will allow for this.

Make Time to Reassess

Ensure you schedule regular timeslots to review the above. In our experience, we find that business owners rate strategy as hugely important (even more so in the current economic climate) but often don’t have the time, skills, or knowledge to implement meaningful strategies in their own businesses. This often stems from business owners being subject
to the ‘tyranny of urgent’ – meaning everyday tasks often take precedence over the more valuable and highly necessary big-picture requirement of taking stock of the strategic direction of the business.

Business success and future stability depends on the effective measurement and management of critical resources along with financial metrics. Once you have an overview of the financial position of your business, ask yourself how important are your different key resources to achieving your overall business goals? How strong are your existing resources and how can you possibly use them more effectively?

If your existing resources are meeting your needs, what gaps do you need to fill? Similarly, what resources have you previously relied on that are no longer required or meeting their objective? Have you considered your overall operating landscape, competitive position, benchmarks, and any market data? While these questions can seem daunting, they can often ensure that you stop and take the time to become aware of possible opportunities within your industry that you may not have otherwise been aware of.

Ultimately, this suggested process of measuring and monitoring will not only give you the necessary tools to keep on track with achieving your business goals but will more importantly allow you compete in this challenging marketplace.

About the author: Emma Cook is an Associate with BDO. She has extensive experience assisting both small and medium sized entities with a wide range of advisory services. BDO Hawke’s Bay are Chartered Accountants and Business Advisors. The firm is an independent member of BDO New Zealand and part of the global BDO network. www.bdo.nz

Addressing staffing gaps with a virtual CFO

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Staffing has been a major talking point for many of our clients in the past few months, and we know businesses right across Hawke’s Bay are having similar issues. The market is tough, and businesses are having to manage competing priorities for their time and resources.

A permanent staff member might not be a priority, or the scope of the role may not require someone permanently – or you might just be struggling to find the right person. That’s where a virtual Chief Financial Officer (CFO) or temporary resource can help.

What is a virtual CFO?

When business owners think virtual CFO, they often envision someone operating at a strategic level, directing key financial matters. And while the virtual CFO role does allow for this, the scope covered by this role can vary from business to business or project to project. A virtual CFO allows organisations to get the benefits of a CFO and dedicated finance department without the commitment of permanently employing someone in this role. They can act as a trusted partner and sounding board for key business decisions or simply keep your finance department on track. One of the key benefits of a virtual CFO is that the role is fully scalable and can be specifically customised to meet the current needs of your business. No matter what stage of business you’re at, how big your operation is, or how long you need support for, a virtual CFO solution can be tailored to you.

When might you use a virtual CFO As an interim recruitment solution

The Hawke’s Bay market is tough when it comes to attracting top talent, which means businesses can often have gaps between hires. Recruitment for a CFO role can present challenges for organisations that need day-to-day business support. A virtual CFO can address this and plug the gaps while you’re searching for the right person.

When budgets are tight

The current economic climate means many businesses just don’t have the budget to hire a full-time, permanent CFO. With a virtual CFO, you get the security and expertise of a national network along with the local relationship and insights that come with engaging a Hawke’s Bay adviser.

Experienced experts can pull from a wide range of resources that other businesses and contractors may not have on hand, from business specialists to strategic and financial analysis tools. Our scalability and flexibility mean we can take on everything from a few days’ worth of work through to much larger-scale projects, with the ability to extend should you need more support. The flexibility also extends to the level of individuals available to undergo each stage of the project, from data entry through to analysis, reporting and implementation. We can work within a pre-agreed budget or scope of work, so you’ll always know what you’re getting.

On a project basis We know not every organisation wants or needs a fulltime CFO, but there are times during the year when that level of expertise is required. You can engage a virtual CFO for specific projects or periods of time. We all know that following Cyclone Gabrielle, many businesses were struggling to collate reports required for insurance claims or were overwhelmed with trying to re-forecast their cashflow or refinance.

It is these instances that we see the virtual CFO service become a lifeline for businesses to ensure that they are best placed and informed when forward planning.

About the author: Lisa Townshend is a Business Advisory Partner with BDO. She has extensive experience assisting both small and medium sized entities with a wide range of advisory services. BDO Hawke’s Bay are Chartered Accountants and Business Advisors. The firm is an independent member of BDO New Zealand and part of the global BDO network. www.bdo.nz

Local businesses to the fore in local water masterpiece

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Hawke’s Bay businesses played a vital role in the nearly $100 million investment to ensure Hastings District residents have safe drinking water. Just seven years on from the Havelock North water crisis in 2016,

Hastings District Council has delivered a major infrastructure project that includes two major water treatment stations, four large water storage tanks and seven small community drinking water set ups. Council could have stopped there but over a Friday night after work drink, project manager Graeme Hansen and landscape architect Shannon Bray of local firm Wayfinder pushed the boat out from a typical boring infrastructure project and sow the seed for a world-first Water Education Discovery facility.

Stunning carvings are a feature of Waiaroha Council was already part way through the project, which started when local 3 waters and civils business Drainways undertook a watermain upgrade in Havelock North, which was the start of de-commissioning the drinking water bores that were compromised and over 5000 people falling sick. As director of major projects at Hastings DC Graeme said that Friday night chat went well beyond the scope of a water infrastrcuture project.

The vision of Waiaroha was a desire to reframe our thinking about water, not only from an infrastructure sense, but also in a more holistic way. “If you reflect on our current approach to 3 waters, we don’t interact with it in any significant way other than to see it come out of a tap as drinking water, push the button on your toilet as waste water and to wash it down the drain as stormwater. “We spend little time reflecting on where it came from, what we do to it on its journey from source to end use, and of more significance, where we are going in this climate changing world.”

He says blending engineering, science and Matauranga māori principles created an opportunity to make water and the process of water more visible and to Tanks and the water treatment plant encourage reflection on where we have come from, sometimes looking back to move forward.

“What we have now is a state-of-the-art water processing and treatment facility but it will be interesting to see what state of the art looks like in 10, 20 and 50 years time. “I’m confident young minds and the next generation will surprise us in this area and this project is hoping to provide that catalyst and opportunity.

Graeme admits it was also a risk that was supported by council chief executive Nigel Bickle and elected members.

“Nigel’s support was unwavering support as was that of the mayor and councillors and especially with a vision that looked to challenge the norm and encourage lateral thinking about water.”

As an engineer Graeme had to open his eyes to water being more than it flowing from the tap and better understand the principles of Atuatanga, Rangatiritanga, Kaitiakitanga and Manaakitanga, which was led by Hira Huata.

Graeme says Hira provided guidance and accountability for this project as the principal cultural advisor, ensuring the Waiaroha values were fully embedded in the development of council’s thinking, through to the tangible elements of the centre.

It has been a journey of enlightenment and awareness raising to truly work on a project of co-design and testament to what can be achieved,” he says. Graeme said the many businesses involved, should be incredibly proud of what has been delivered.

“For those involved in imagining, designing, building and delivering the Waiaroha project, it’s important to reflect on the significance of what has been achieved and be proud of your role in it. “

Innovation positions Hawke’s Bay as premium apple hotbed – PREVAR

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When you think of Apple and innovation, you’re probably thinking of Steve Jobs and the iphone, but Hawke’s Bay is the home of another apple innovator, but of the eating kind.

Prevar developed the PremA96 apple variety (cultivar) that has become a global sensation under the brand name Rockit™, a pint-sized apple that has rocked the conventional snack food category through the work of Hawke’s Bay based business Rockit Global who own the brand. Prevar, formed in 2004, is a private joint venture company owned by the apple sector between New Zealand Apples & Pears Incorporated, Plant & Food Research (New Zealand) and Apples and Pears Australia Limited.

Prevar chief executive Tony Martin has ambitions of ensuring many more premium New Zealand apple brands or “number one hits” propel New Zealand’s PREVAR chief executive Tony Martin global apple market share from around 1% to 5-10 percent. PremA96, its first international number one is now sold in over 30 countries, and grown in eight – such as New Zealand, the US, the UK – and is regarded as a premium high value apple variety, not a commodity apple such as Royal Gala.

At any point of time Prevar has around 200 new varieties in stages of R&D that are narrowed down with only the best of the crop making it into full production.

In 20 years Prevar has commercially licenced 17 varieties and entered into a total of 33 license agreements. It holds more than 170 trademark registrations across the globe. Tony says the Prevar business is centred around four core areas – consumer insights-driven innovation, a world-class breeding programme (with Plant & Food Research), customer-centred commercialisation, and industry & category Leadership.

He says that although the New Zealand industry remains at the forefront of innovation and premium quality in the global industry, it is constantly challenging its thinking and pushing the edges of innovation, to maintain and enhance its competitive advantage as a value creator.

“We are an innovation company and I think it’s important to recognise that a big chunk of our revenue is reinvested back in to R&D so that we stay at the forefront with the best products.  Each year in June, apple growers and marketers are invited to an open day to see the latest varieties on offer.

“We’re owned by the industry, so it is an open forum and everyone can try the apples and put in an expression of interest. When we see a big opportunity for an apple to be globalised then we will look at prospective licensees ambition, markets.

“We’re owned by the industry, so it is an open forum and everyone can try the apples and put in an expressions of interest. When we see a big opportunity for an apple to be globalised then we will look at prospective licensees ambition, capability and capacity to grow as we know it takes immense resources to make new varieties a big success in international markets.

“We enter into a testing arrangement and the prospective licensees get some trees to plant, which are monitored over a number of years,” he says.

Apples with the greatest chance of global success are actively promoted and agreements are reached via commercial negotiations. Groups of individual companies may get together to create a marketing entity to license the new variety or it may be licensed with larger integrated growing, marketing and export corporates so as to fully maximise the opportunity, which in-turn helps bolster ongoing investment in future varieties.

“What we don’t want to do is spend lots of money developing a great variety, get it to the start line and then it doesn’t get maximised to its full potential,” he says.

Presently several millions of dollars are invested each year with Plant & Food and its world leading breeding programme  and the more number one hits, the more money can be invested to stay ahead with the latest innovation.

“It gives us more opportunity to do different things such as look at really distinctive product characteristics and new breeding technologies to expand our reach and create more jobs across the industry and higher returns to growers in New Zealand. It gives us a chance to look at potentially replicating what we do in New Zealand in offshore markets.

Identifying a new global sensation starts with understanding what the market wants and then looking at how to create a product that appeals. So far, the success rate is about one in 50. “The product concept is primarily market driven, so we look at where we see
an opportunity for a particular type of apple.

For example, with PremA96, it was a snack apple for health conscious parents to buy for their kids instead of an unhealthy option while Dazzle™ is a sweet, crunchy red skin apple that appeals to an Asian consumer base.”

Akin to a wine maker or a craft beer brewer, the breeders mix and match genetic attributes to develop a new variety. “We review the genetic material and cross different “parents” and then we observe the performance of the tree and the fruit to determine what other tweaks or additions need to be made.”

“There is an element of crystal ball gazing too as we are developing a new product that takes many years to get into full production. What we think is popular today in terms of flavour characteristics might not be popular to a consumer in 2040.

Tony says the next generation of apples with strong consumer interest may include a greater focus on the functional health benefits. “We all know an apple a day keeps the doctor away, but how many people know why?

“We are exploring new varieties that offer a better nutritional composition that is high in the likes of fibre and vitamins, so this will be a new dimension to add to the product brief.

 

 

 

 

 

 

Imagine a ‘fit apple’ that not only keeps the doctor away but enhances your wellbeing and your performance physically and mentally. This might not be too far away.

“We want Hawke’s Bay to continue to be the premium fruit growing region and innovation hub, not only in New Zealand but in the world. We’re very fortunate to have an incredible team of scientists based right here in the Bay that are the very best in the world at what they do.

“A key driver of our business is we bring out the best innovative stuff from New Zealand and to genuinely scale the industry and to get a better returns to grower as competition around the world is fierce. For every global hit the royalties created are invested back into research and development to keep the New Zealand industry at the forefront.

The more success Prevar has in developing new apple cultivars with its shareholder partners that are then licensed to reputable growers and exporters both in New Zealand and globally, the greater the economic returns will be to Hawke’s Bay and the wider industry. We grow the best apples in the world here. Yeah.

And we wanna maintain that. And that will always be in exporting our premium varieties from New Zealand to key offshore markets and growing our some of our other varieties closer to consumers. Both of these are really important parts of our growth strategy. If we can grow from 1% market share of the global industry to 5% or 10% then we’re going to have to do things a bit differently from how we have grown the industry so far,” Tony says.

Semiconductors: The AI beneficiary

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Artificial Intelligence, or AI, is a global fixation – one that has driven the Nasdaq to outperform every other major world equity index this year.

AI is having its moment, and a knock-on effect of its popularity is that semiconductor companies have reemerged in the spotlight as one of AI’s crucial initial beneficiaries.

Semiconductors are the elements that conduct electricity voltages between that of typical conductors and insulators. These electrification properties enable semiconductors to be used in computers and other electronics to control the flow of electricity, store memory and convert energy.

This isn’t the first time semiconductors have been popularised recently. Pandemic supply constraints and lifestyle adjustments like working from home drove demand in the early years of the COVID-19 pandemic, but there was a brief period of quiet where they weren’t performing as well.

The factors that caused this initial demand have not gone away, but the demand for AI is eclipsing any other driver of semiconductor use.

So, the Nasdaq is benefiting from this upward swing, but why exactly are semiconductor companies benefiting so much from the AI boom?

Chips – Logic and memory:

To understand why semiconductors are benefiting from AI’s popularity,
it’s important to understand the role the materials have played in the advancement of technology. Computer chips are made from semiconductors and are used for calculating and storing data.

In order for AI to function, it too relies on the use of chips. The two major types of chips are logic and memory.

Logic chips, sometimes referred to as microprocessors, are the ‘brains’ of electronic devices. In this context, logic implies ‘processing’, and the chips perform instructions and tasks that the device needs to execute. Every electronic device needs a storage unit, and memory chips serve this purpose.

The process of manufacturing semiconductor chips is one of the most complex engineering and scientific feats that humans have achieved. To the untrained eye, this process seems like pure magic.

The process begins with the design of the chip, where engineers use complex software to design the circuit of transistors. Post design completion, the blueprint is sent to a foundry (a metal castings factory) for manufacturing. The ‘magic’ of semiconductors lies in their ability to scale and continually get smaller over time.

In 1965, businessman and engineer Gordon Moore proposed that the number of components on a semiconductor would double every year.

In 1975 he revised his forecast that the rate would double every two years. Since then, his prediction held, and has widely become known as Moore’s law. Some manufacturers have made their chips smaller and more efficient than others. In the world of chips, the leading-edge is a term used to describe the smallest and fastest chips produced.

Companies with the highest profit margins are the leaders of the leading-edge space, as they have access to large capital investment that in turn funds research and development costs. As the number and type of devices worldwide seems to exponentially grow, so does demand for these chips. Data centre servers, smartphones and other advanced computing devices account for a large amount of this increased demand.

AI is the newest driver of this demand.

Chip hungry Artificial Intelligence:

Artificial Intelligence models including OpenAI’s ChatGPT require vast amounts of computation, memory, and data to run.

Having always experienced high demand, leading-edge chips regularly eclipse analyst estimates. Leading-edge graphics processing units (GPUs) are used to train the world’s most advanced AI models, and as AI has developed at a significant speed, so has the demand for GPUs. The newest generation of chips are more economical than previous generations, meaning training these models is more efficient per dollar spent.

For AI to operate effectively it needs to run off chips that are efficient and economically viable. For investors looking for semiconductor-related investments they can look towards companies that are tied to leading-edge semiconductors.

This includes Nvidia and AMD in chip design, ASML and KLA Corp who provide machines that measure chips, and TSMC which manufactures chips as a contract manufacturer. Predictions for the future of the semiconductor industry are bright, with McKinsey and Company assessing a trillion-dollar valuation for the industry by 2030.

Of all the recent winners that have emerged from the AI boom – tech giants, cloud titans, even cyber-criminals – chipmakers may just be the biggest.

Tobias Taylor is Director, Wealth Management Adviser at Jarden.

The information and commentary in this article are provided for general information purposes only. It reflects views and research available at the time of publication, using external sources, systems and other data and information we believe to be accurate, complete and reliable at the time of preparation. We make no representation or warranty as to the accuracy, correctness and completeness of that information, and will not be liable or responsible for any error or omission. It is not to be relied upon as a basis for making any investment decision. Please seek specific investment advice before making any investment decision or taking any action. Jarden Securities Limited is an NZX Firm. A financial advice provider disclosure statement is available free of charge at https://www.jarden.co.nz/our-services/wealth-management/financial-advice-provider-disclosure-statement

The beauty of a well-run meeting

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Well-run meetings are an amazing thing but when poorly executed, they can be extremely frustrating. Meetings are a key touchpoint for our teams, and they provide an overt and visual display of our leadership. However, few people feel they are time well spent.

Meetings are often poorly planned and ineffective and get in the way of work done. Research suggests that 50 percent of meetings are unnecessary, so let’s look at how to get the most out of them.

The value of the meeting

Meetings are indispensable to both organisational and team success. Research shows organisations that hold meetings outperform those that don’t, and leadership teams that hold them in times of challenges or change notably outperform those that don’t. Well-run meetings increase collaboration and psychological safety. They are also correlated with general work satisfaction (likewise poor ones with dissatisfaction).

This isn’t about banning them – it’s about doing them better.

Is a meeting needed?

The first step is to decide if a meeting is needed. It is often an automatic reflex to accept a meeting invite without first checking its relevance to us. Reportedly, the worst meetings are those that purely exist to disseminate information. Rather, an email, shared documents or webinar/video should be used for status updates. Meetings should be about resolution, brainstorming, decision-making and approvals or creating ideas. Purpose Each meeting needs a purpose and outcome statement. Part of the role of leading is to let participants know why they are there – Why are you having the meeting and what do you want to achieve before attendees leave?

The purpose should refer to a result, for example, “Business Review” as a title doesn’t focus on outcomes. Add a verb/action word to the purpose – “make a decision…” or “develop a plan of action…” or “decide top three actions for …”.

Are the right people in the room?

It is suggested that 10-15% of meeting participants are not usually necessary. When considering the purpose and desired outcome, ask yourself, who needs to attend to deliver on this? You’ll save time and improve meeting performance if you only include people who need to attend. From there, a balanced contribution from all participants tends to correlate with better performance – if a topic only relates to two people, take it out of the meeting.

Is the timeframe right?

Parkinson’s Law states that work expands to the time allotted for.

If you schedule an hour, your meeting will comfortably swell out to the hour. Shortening meetings will often allow for more focused and productive meetings. This is why we have seen the rise of the 10-minute huddle, the 18-minute team meeting and 50-minute meeting (instead of the standard one hour).

Planning is key

All eyes are on you as the meeting lead and the team will clearly see if you are not prepared (including use of technology). Be purposeful, thinking beforehand about what you want to accomplish with your agenda and being careful of covering too many things. Prior assignment of certain tasks such as note-taking, chairing, sorting visuals etc is helpful. Having documents ready (not preparing them on the day!) and sending out any preparatory information helps keep things moving. Preparing questions for team engagement and active input is also useful.

The meeting

Referring to your purpose is a powerful way to calibrate the first 40 seconds: “The purpose of today’s meeting is to…”. From there, the fundamental focus is to drive discussion that leads to an action or decision. You may opt to start with a connecting chit-chat, especially if you have decided that connection is a purpose. Celebrating wins is also useful to set the tone of the meeting – it’s easy to go to the problem and miss an opportunity to allow some positive energy in the room. Thereafter you can delve into your purpose and agenda. Outcomes and ownership should be a priority, summarising all agreed-upon actions in the final 10 minutes and ensuring these are recorded. Michael Hyatt of No-Fail Meetings promotes a meeting format of AEIO – Achievement, Expectations, Issues, Outcomes, which can be useful to follow. Finally, start and end on time.

Engaging participants

The leader is responsible for creating active engagement. Tricks can include keeping meetings small (four to six participants), using open-ended questions, co-creating using flipcharts and whiteboards, engaging different senses using colour, variety and movement (sitting still moves us to a passive state), and thinking about room layout: Make the room match the process i.e. theatre vs round table. Hyatt suggests a useful strategy for leaders is to “hold your counsel” – which requires us to pause and stay quiet to get the group sharing before a leader weighs in. Distractions such as side conversations, phones and laptops should be managed from the outset by setting clear expectations. Lastly, stay on topic. As a final thought, it is good to periodically check in with your team as to how meetings are going and what would make them better. Getting your meetings right can be a work in progress, but it’s worth the time and effort.

For more advice like this, contact your local Baker Tilly Staples Rodway HR leadership specialist.