In recent times there has been a lot for business owners to deal with from the pandemic, weather events and labour challenges to navigating inflation and more recently it’s been rising operational costs and an increase in the cost of living.

We’re in a period of market uncertainty which leads to consumers tightening their purse strings. This is understandable, as families want to shore up their finances because they don’t know what might be around the corner.

Generally good growing conditions in recent months have also contributed to higher volumes in the market which has added fuel to the fire, putting pressure on returns across a wide range of categories. This has been particularly acute in the past three months, with good post-Christmas trading quickly turning into a challenging market.

Despite recent strong supply and fresh produce representing good value, soft demand is certainly contributing to the conditions with a strain on the basket of everyday Kiwis.

The MG Group is not immune, as we incur additional costs associated with more stock moving through the business for less value. We are also grappling with how to manage operational expenditure and deliver the same high level of service while being even more efficient.

Rising costs and difficult market conditions are exactly the reasons that the teams across MG are committed to delivering the best service we can and believe that working closely together is the logical response in such a market. The ability to realise fair returns relies on good planning, on-farm execution and prompt delivery. Our sales representatives, key account managers and procurement staff are committed to working more closely to provide advice related to business planning and growers are encouraged to reach out at any time.

MG also continues to contribute to industry messaging, including media commentary about the benefits of fresh produce and local value by focusing on seasonal fruit and vegetables.

However, the best thing we can do for growers is to remain focused on execution every single day and that is what we intend to do.

® Together.Stronger.

Peter Hendry

CEO