10th September 2021 By Staff Reporter | email@example.com | @foodtickernz
New Zealand food firms loom large in a list of the top 30 co-operatives in New Zealand, which collectively generate annual revenue of nearly $42bn, according to a new report.
The New Zealand Co-operative Economy report, compiled by PwC, found that around 72% of the country’s co-operatives were in the agri-food sector, and have together achieved increased revenues of around 10% since 2015.
They group was led by the country’s largest co-op, dairy company Fonterra, which booked revenue of $20.3bn in 2020 – up 7.6% from five years earlier.
Other notable food sector businesses included Kiwifruit exporter Zespri, which in 2020 had revenue of $3.3bn – up 129% in five years.
Meat companies such as Alliance Group and Silver Fern Farms also made a significant contribution, with revenue of $1.8bn and $1.2bn respectively last year.
“These agri-food co-operatives have been performing well with strong growth in revenue and assets, indicating a resistance and strong response to the economic impacts of covid-19,” Cooperative Business New Zealand chief executive Roz Henry said.
Co-ops classified as wholesale and retail were found to comprise almost 22% of the country’s top 30 co-ops, with grocery retailer Foodstuffs dominating the category.
Foodstuffs North Island was the largest with revenue of $3.5bn in 2020, down more than 40% since 2015 as a result of changed revenue reporting standard but without any corresponding impact on profit.
Its South Island supermarket compatriot had revenue of $3.2bn, up 17% in since 2015.
In terms of a top 30 ranking by revenue across all assets classes, Fonterra was in the number one spot followed by FSNI, Zespri, and then FSSI.
These top 30 co-operatives contributed 13% of New Zealand’s GDP by revenue, earning nearly $42bn revenue in 2020. They had 1.5 million members, with a combined workforce of 41,000 employees.
The research said the key challenges facing the co-op sector included raising capital, labour shortages, and reducing emissions to comply with the Climate Change Response Act 2002.
Click here for the full report.
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