1 00:00:00,040 --> 00:00:01,280 Speaker 1: Well in a week, we spent quite a bit of 2 00:00:01,280 --> 00:00:03,320 Speaker 1: time in the old smoke Salmond issue. Are having discovered 3 00:00:03,320 --> 00:00:05,240 Speaker 1: you're paying well and excess of one hundred dollars a kilo. 4 00:00:05,320 --> 00:00:07,760 Speaker 1: Sandford come to the party, as you heard before, having 5 00:00:07,760 --> 00:00:10,119 Speaker 1: more than doubled their half year profits. They're making big 6 00:00:10,119 --> 00:00:12,240 Speaker 1: gains sales wise and places like China and the States, 7 00:00:12,280 --> 00:00:14,880 Speaker 1: which is good. David Mayor, Sandford's managing director, and is 8 00:00:14,920 --> 00:00:18,239 Speaker 1: with us. David morning, Good morning, Mike. How are you 9 00:00:18,320 --> 00:00:20,279 Speaker 1: very well? And as Andrew alluded to a couple of 10 00:00:20,280 --> 00:00:22,119 Speaker 1: moments ago, you knew wish to the company, are you 11 00:00:22,280 --> 00:00:25,840 Speaker 1: enjoying it? And is it a good company? 12 00:00:26,560 --> 00:00:30,040 Speaker 2: I'm enjoying it. I've been there just over twelve months, 13 00:00:30,360 --> 00:00:33,800 Speaker 2: and yes I am enjoying it. And is it a 14 00:00:33,800 --> 00:00:35,960 Speaker 2: good company? It will become a great company soon. 15 00:00:36,240 --> 00:00:37,320 Speaker 1: Okay, what are you doing? 16 00:00:38,760 --> 00:00:42,440 Speaker 2: What am I doing? I'm reviewer. I'm reviewing almost every 17 00:00:42,479 --> 00:00:46,239 Speaker 2: process within the business. So I think it's fair that, 18 00:00:47,120 --> 00:00:49,760 Speaker 2: like a lot of New Zealand companies, centered went down 19 00:00:49,800 --> 00:00:53,000 Speaker 2: a path of trying to add value. And that's interesting, 20 00:00:53,080 --> 00:00:55,160 Speaker 2: but you have to be very clear that you're adding 21 00:00:55,360 --> 00:00:59,080 Speaker 2: more value than you're adding cost. So for many many years, 22 00:00:59,120 --> 00:01:02,920 Speaker 2: more than probably nine years, I think, and many companies 23 00:01:02,960 --> 00:01:04,880 Speaker 2: have done this, particularly in the meat industry and things 24 00:01:04,920 --> 00:01:07,840 Speaker 2: like that. We're told we have to add value. It's 25 00:01:07,959 --> 00:01:11,200 Speaker 2: near it it's I think centered's products. They're great products, 26 00:01:11,240 --> 00:01:14,200 Speaker 2: like you mentioned salmon. Our products are fantastic when you 27 00:01:14,240 --> 00:01:17,440 Speaker 2: see them. But the reality is it's near commodity where 28 00:01:17,520 --> 00:01:20,040 Speaker 2: price takers people don't like to hear. That is, if 29 00:01:20,080 --> 00:01:23,319 Speaker 2: there's something wrong with a commodity business run well, they 30 00:01:23,319 --> 00:01:26,160 Speaker 2: can be very profitable, they can be very good for employees, 31 00:01:26,280 --> 00:01:27,800 Speaker 2: they can be very good for shareholders. 32 00:01:28,360 --> 00:01:32,520 Speaker 1: How competitive is the market, Well. 33 00:01:32,319 --> 00:01:35,280 Speaker 2: If you're a price, the market decides your price, and 34 00:01:35,319 --> 00:01:38,680 Speaker 2: price drucks straight through the EBIT. So price is incredibly important. 35 00:01:38,720 --> 00:01:41,800 Speaker 2: So often as I go through these processes with teams, 36 00:01:41,840 --> 00:01:44,920 Speaker 2: I remind them that really there's no such thing as revenue. 37 00:01:45,080 --> 00:01:48,680 Speaker 2: This price times the volume for each for each item 38 00:01:48,760 --> 00:01:51,920 Speaker 2: that you sell. So it's really important to understand. You know, 39 00:01:51,920 --> 00:01:54,240 Speaker 2: if there's a five percent change up or down in price, 40 00:01:54,560 --> 00:01:57,160 Speaker 2: it drops through as soon as the invoices go out. 41 00:01:57,200 --> 00:02:00,120 Speaker 2: Five a plus one is five percent on volume. You 42 00:02:00,200 --> 00:02:03,640 Speaker 2: don't know it depends on your cost structure. Most companies 43 00:02:03,680 --> 00:02:07,880 Speaker 2: do not have a Sorry, most companies do not have 44 00:02:07,960 --> 00:02:11,440 Speaker 2: a plan to improve productivity. We argue about what we 45 00:02:11,480 --> 00:02:13,800 Speaker 2: should be paying. We've got this living wage stuff and 46 00:02:13,880 --> 00:02:16,679 Speaker 2: everything going on. If you pay people more money, but 47 00:02:16,720 --> 00:02:19,640 Speaker 2: there's no productivity, there's a natural into that. 48 00:02:20,000 --> 00:02:24,000 Speaker 1: Correct, right? Is there a story to be told around 49 00:02:24,120 --> 00:02:27,960 Speaker 1: one New Zealand as the producer of this product and 50 00:02:28,080 --> 00:02:32,519 Speaker 1: two the health bit to fish. 51 00:02:32,720 --> 00:02:35,600 Speaker 2: I think there is so again, you know, I'm sure 52 00:02:35,600 --> 00:02:37,240 Speaker 2: you know. I worked at scalar Up for a number 53 00:02:37,240 --> 00:02:39,679 Speaker 2: of years, since twenty eleven. I was managing directive there. 54 00:02:39,800 --> 00:02:43,040 Speaker 2: So my sort of view is New Zealand's tiny in 55 00:02:43,120 --> 00:02:45,880 Speaker 2: the scheme of things, and there's one thing they want 56 00:02:45,919 --> 00:02:48,919 Speaker 2: from us, and it's high quality protein. And so when 57 00:02:48,960 --> 00:02:50,680 Speaker 2: I was at scalar Up, I thought a lot about milk. 58 00:02:50,720 --> 00:02:52,079 Speaker 2: I was on the board of a two milk from 59 00:02:52,080 --> 00:02:54,840 Speaker 2: two thousand and eight to two O one five. To me, 60 00:02:55,240 --> 00:02:57,200 Speaker 2: that's something we just need to get our head around. 61 00:02:57,240 --> 00:03:00,679 Speaker 2: It's not about branding our fish necessarily. I mean, the 62 00:03:01,480 --> 00:03:05,960 Speaker 2: King salmon is fantastic product, but it's competed the volumes 63 00:03:05,960 --> 00:03:09,480 Speaker 2: of Atlantic sem it's almost nothing. You're talking about health benefits. 64 00:03:09,520 --> 00:03:12,600 Speaker 2: I think there are health benefits. But you can't rush 65 00:03:12,600 --> 00:03:14,440 Speaker 2: and spend a lot of money and suddenly think you're 66 00:03:14,440 --> 00:03:17,440 Speaker 2: going to sell the benefits of health products into China. 67 00:03:17,440 --> 00:03:20,480 Speaker 2: It's just thought wherever. It's just very, very difficult, and 68 00:03:21,200 --> 00:03:22,720 Speaker 2: you know, a game with health products, you've got to 69 00:03:22,720 --> 00:03:25,079 Speaker 2: be careful about claims. So you know, the A two 70 00:03:25,120 --> 00:03:29,760 Speaker 2: experience was good, good learning there. But I think one 71 00:03:29,760 --> 00:03:32,440 Speaker 2: thing I should say is I when I took on 72 00:03:32,560 --> 00:03:36,280 Speaker 2: this role, I agreed with Sirob that year and one 73 00:03:36,320 --> 00:03:40,000 Speaker 2: other director that this is at least a two year turnaround. 74 00:03:40,760 --> 00:03:43,720 Speaker 2: So the results are pleasing, and I hope our team 75 00:03:44,040 --> 00:03:46,640 Speaker 2: feel proud of what they've achieved. But at the same time, 76 00:03:46,680 --> 00:03:48,880 Speaker 2: this is just the start. That's what I meant. 77 00:03:48,920 --> 00:03:51,800 Speaker 1: That soon good Well. I wish you based with it, 78 00:03:51,880 --> 00:03:54,080 Speaker 1: and we'll talk more about it as the turnaround continues. 79 00:03:54,080 --> 00:03:57,080 Speaker 1: Appreciate your time. Congratulations David Meham, who's the same Ford 80 00:03:57,080 --> 00:03:57,880 Speaker 1: Managing Director. 81 00:03:58,560 --> 00:04:01,440 Speaker 2: For more from the Mic Hosking Breakfast, listen live to 82 00:04:01,560 --> 00:04:04,640 Speaker 2: News Talks at b from six am weekdays, or follow 83 00:04:04,680 --> 00:04:06,240 Speaker 2: the podcast on iHeartRadio.