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New Zealand manufacturers leaving value on the table in functional foods

As global markets shift toward science-led, high-margin nutrition, New Zealand risks missing a significant opportunity in functional foods, reflecting a sector that has been slow to move beyond its traditional commodity mindset, writes Mark Devlin, director of Impact PR and NZ Manufacturer business advisor. New Zealand is sitting on a high-value food innovation opportunity that it continues to under develop, as global food markets move away from commodity nutrition and toward targeted, function-driven products. Much of the sector still exports raw ingredients, while higher-value product development, branding and margin are captured offshore. Reports out of the US suggest that up to one-third of people may have low levels of a specific dairy-derived fatty acid should be viewed in that context – as an example of a potential opportunity for New Zealand manufacturers looking to take advantage of a broader shift in how food is understood, valued and commercialised. The compound in question, C15:0 or pentadecanoic acid, is naturally present in dairy fat and certain fish and was historically overlooked in favour of broad classifications of dietary fat. Current research is examining how individual fatty acids behave in the body, with studies linking higher circulating levels of odd-chain fatty acids to improved metabolic outcomes and lower risk of conditions such as type 2 diabetes and cardiovascular disease. At the centre of that shift is Dr Stephanie Venn-Watson, a veterinary epidemiologist who previously served with the World Health Organization and the US Navy and has spent much of her career advancing understanding of this nutrient. Her research, including long-term analysis of ageing dolphin populations, identified C15:0 as one of the strongest markers associated with healthier metabolic profiles, lower inflammation and reduced metabolic dysfunction. Those findings are directly relevant in New Zealand, where dairy consumption is shifting at the same time as rates […]

Focus on: Quanton

Garry Green, Managing Director and Founder Tell readers what your company does Quanton is an AI, automation and operational excellence business founded in 2016 with a clear purpose: empowering humanity for tomorrow’s technology, today. We help ANZ organisations navigate digital transformation by making AI and automation work for people, not replace them. Our approach is pragmatic and technology-agnostic – we partner with Microsoft, Google Cloud and leading ai and automation platforms to deliver solutions that generate real business value. We’ve delivered over 120 intelligent automation and AI programmes, releasing more than five million hours of benefits for our customers. Our expertise spans financial services, manufacturing, infrastructure, utilities, government and logistics – anywhere organisations need to drive growth, productivity and profitability through smarter ways of working. How are you currently seeing the transformation of business? Business transformation today requires a layered approach. We see value delivered at three distinct levels: individual productivity, team performance and organisational capability. At the individual level, AI tools are transforming how professionals work – meeting capture, document preparation, research and analysis. At the team level, we’re seeing AI turbocharge sales performance, customer service and operational processes. At the organisational level, AI enables enterprise-wide compliance, quality assurance and strategic capability. The organisations succeeding are those treating AI as business transformation, not just technology implementation. The technology rarely fails – it’s strategy, governance, change management and skills development where projects stall. We consistently see that 70% of success comes from people, process and cultures with data foundations and technology accounting for 30%. AI – how will it change what we do? 2026 is the year AI agents move from experimentation to production. Gartner predicts 40% of enterprise applications will embed AI agents by year-end, up from less than 5% in 2025. These aren’t chatbots – they’re systems that […]

From pillars to performance: How Vitaco is building capability at scale

Adam Harvey, Business Performance Partner – Manufacturing ,The Learning Wave Walk into most manufacturers, and you’ll see the same thing. Clear strategy. Strong systems. Well-defined KPIs. And then…a gap. Not everyone on the floor can see how they contribute. The gap is where performance is won or lost. Vitaco recognised this early. A strategy only works if people can see themselves in it For over a decade, Vitaco has built around six clear priorities: People, Quality, Cost, Speed, Health & Safety, and Innovation. The Six Pillars. Simple. Powerful. Like many manufacturers, the challenge wasn’t defining them. It was bringing them to life. Not as posters to ignore, but as decisions in the moment. On the floor, people aren’t thinking about strategy documents. They’re thinking, “What does good look like right now?” As GM Operations Roger Scott explains, “what truly matters is how consistently the pillars show up in daily decisions.” That’s where capability comes in. Building the capability behind the pillars Vitaco has invested in its people through the Six Pillar Fundamentals programme since 2015. In 2025, they made a deliberate decision. Refresh it. Raise the bar. Not because it wasn’t working, but because expectations had changed. Together, we redesigned the programme to do something very specific: Connect the Six Pillar Fundamentals programme to how people need to think and act every day. Because knowing the pillars wasn’t enough. They needed the skills and confidence to live them. As Scott puts it, “The programme is fundamental in how we translate our annual operations plan into performance.” From awareness to ownership The refreshed programme is now the cornerstone of how Vitaco onboards and grows its people. A shared starting point. A common language. Learners didn’t just learn about the pillars. They built the capability to act on them: Understanding how their […]

The emotional reality of a business exit

Mike Warmington, Director, Platform 1 Letting go of your business is often like letting go a piece of yourself. It’s been your life and you have been the business. Your identity is wrapped up in, and your confidence and self-worth are linked to its success. Staff feel like family and have shared the journey with you and your clients trust you. It embodies the sacrifices you have made including long hours, missed family time and sometimes financial and emotional stress. Exiting also means releasing control and direction of something you have built. For some it also involves grieving. It’s emotional as much as a financial transaction. The emotional side to an exit can often be the reason for delaying the process as you come to terms with the upcoming change you are not sure you are ready for. “The fact you will exit your business at some stage is inevitable” How can you lessen the impact? Firstly, it’s important to have a plan for your next phase of life before the exit regardless of the exit option you pursue. Prepare emotionally as well as financially. Not every business owner wants to go “cold turkey” and make a clean break. You can start the process well before you are ready to step out completely. An option is to start removing founder dependency over time, by bringing in a talented Business Partner who can free up some of your time and allow you to prepare emotionally for the shift. This person acquires shares over time and can give you the ability to emotionally exit at a timeframe of your choosing while protecting your legacy. Exiting your business is emotional because it’s not a transaction it’s a transition.

Has the manufacturing sector fallen off the regulatory radar – or is relief quietly on its way?

Hanna Tevita, Senior Associate, Buddle Findlay In July 2025, Workplace Relations and Safety Minister Brooke van Velden signalled a welcome commitment to the manufacturing sector – consultation aimed at “simplifying machine guarding rules and reviewing exposure standards to reduce complexity and improve consistency.” Since that consultation, the sector has seen no changes to machine guarding rules or exposure standards. It’s no secret that Minister van Velden has had her hands full with a number of changes across the employment and health and safety sectors – but manufacturers could be forgiven for wondering whether their concerns have slipped down the priority list. On 9 February 2026, Minister van Velden introduced the Health and Safety at Work Amendment Bill (Bill). The Bill aims to give both large and small PCBUs (persons conducting a business or undertaking) greater clarity, particularly around the management of critical risks. Some of these changes may be the first steps in creating clarity for the manufacturing sector. Critical risks Machinery capable of causing serious injury – or death – is, without question, a critical risk for PCBUs to manage. Under the Bill, ‘critical risks’ will be formally defined, with hazards listed in a new Schedule A. Notably, machine-related risks are explicitly included. Under this new critical risk framework, PCBUs will be expected to place greater emphasis on identifying and managing risks that could cause serious harm, rather than attempting to address every conceivable risk across the workplace. For manufacturers, this represents a meaningful – if partial – step forward. The framework formally validates what most manufacturers are already doing: focusing resources on the risks that matter most. That said, it does not yet address the underlying complexity of machine guarding rules or the inconsistencies in exposure standards that prompted the 2025 consultation in the first place. Industry-led codes […]

The cost of Deindustrialisation: How New Zealand’s manufacturing decline threatens our economic future

NZ Manufacturer magazine includes expert comment and analysis from Sean Doherty, Ian Walsh, Geerten Lengkeek, Dr. Megan Woods, and soon, the new Minister for Small Business and Manufacturing, Cameron Brewer. In this election year, we welcome feedback from you, the reader, on the issues you would like the incoming government to focus on and do something about (productivity – energy costs – the cost of living – housing etc). This article is by Sean Doherty, Manufacturing Commentator | NZ Industry Trends Manufacturing is not just another sector in New Zealand; it is one of the core systems that keeps regional communities alive and anchors our standard of living. When factories close in Whakatāne, or the outer suburbs of Christchurch, we do not seamlessly “move up the value chain.” We lose well‑paid careers, technical capability, and the dense network of firms and supply chains that make an economy resilient. The signs of deindustrialisation are already all around us Long‑standing manufacturing plants shutting, production shifting offshore, and investment decisions quietly goes against New Zealand. The immediate impact is job loss, but the deeper damage is structural. Manufacturing has long provided thousands of solid, mid‑skill, mid‑wage jobs for people who are prepared to learn a trade, run complex processes, and take responsibility for quality and output. As these roles disappear, the labour market splits into a small group of high‑income professionals and a growing pool of low‑paid service jobs in areas like tourism and hospitality. That mix locks in stagnant wages, weakens social mobility, and drives up fiscal pressure as more households rely on government support to close the income gap. For regions, the consequences are even more personal. A single plant in a provincial town can support hundreds of families directly and many more through suppliers—maintenance firms, transport operators, engineering workshops, automation […]

New Zealand still makes things, but for how much longer?

By Hon Dr Megan Woods, Labour spokesperson for Manufacturing and Industry The workers losing their jobs at the McCain’s Hastings vegetable processing factory don’t need economists to tell them that the economy isn’t working for them. They already know it. So do the workers at Heinz Wattie’s, at Kinleith Mill, at Winstone Pulp, at Sealord, and at the many businesses that have shut their doors in the last two years. New Zealand’s manufacturing sector has faced headwinds for a long time, but the past year has seen flash points that will be much harder to recover from. Under this Government, we’ve seen output fall sharply, and the economy weaken. High interest rates and cheap imported goods produced with low-cost labour are squeezing our domestic market. Internationally, our distance from major markets makes it harder to compete. Low productivity growth and a tax system that has consistently rewarded property speculation over productive enterprise have left our industrial base more fragile than it should be. No one party owns that history, but a government that understood the problem would have come in with a plan to turn it around. Since National took office, 36,000 New Zealanders have lost their jobs. Business liquidations have hit a fifteen-year high. Each closure, each lost shift, each production line that goes quiet hits suppliers, communities, and regional economies in ways that ripple outward for years. The recent closures of regional manufacturing plants – particularly in timber, pulp, and food processing – show how exposed some of our communities are to single employers. And in places like Hawke’s Bay, losing McCain’s doesn’t just impact the workers and their families, it impacts everyone in New Zealand. It impacts growers, who now have fewer places to sell their produce; consumers, who will face even higher food prices; and regions […]

Kauricone enhances InterfaceOS

NZ-developed operating system to reduce costs and boost productivity Kauricone has announced significant enhancements to InterfaceOS, its lightweight, productivity-focused operating system designed to help organisations and individuals reduce IT costs while improving performance on both new and older desktop and laptop computers. InterfaceOS simplifies computing environments by reducing system complexity, extending hardware life, and delivering a fully integrated suite of productivity tools — all under a single perpetual license. Users can purchase an InterfaceOS Suite Perpetual License for $162 (including GST), which activates one Parent License and five Child Licenses and includes all bundled application software — providing immediate value without ongoing subscription costs. Designed for performance and efficiency InterfaceOS is engineered to deliver fast, responsive computing: Lightweight Architecture — Quick start-up times and smooth operation Low Resource Requirements — Runs efficiently on as little as 4GB RAM and 256GB storage Optimised 64-bit Processing — Fast execution of everyday tasks Extended Hardware Life — Enables older computers to run modern applications without lag Simplified user experience InterfaceOS reduces complexity to improve productivity: Intuitive Interface Design — Easy to learn and navigate Integrated File Management — Consistent folder and file manager across browser and applications No Right-Click Design — Streamlined interactions for faster workflows Custom Window Sizing — Optimised screen real estate for multitasking Multiple Monitor Support — Portrait or extended display modes Pre-Installed productivity suite InterfaceOS includes a complete set of professional tools: Office Suite — LibreOffice Writer, Calc, and Impress Opens Microsoft Office files directly Save in Microsoft formats or OpenDocument (.odt, .ods, .odp) Creative Tools — GIMP image editor and VLC media player Developer Tools — Geany text editor and command-line interface Task Management — Interface Active Programs for fast switching and recovery Seamless connectivity InterfaceOS supports modern work environments: Smartphone file transfer integration Simplified Wi-Fi, wired, and […]

Marshall Industries celebrates ninety years of roofing in Southland

Manufacturing from 1938 and still going strong. A Southland business that has spent generations working on the region’s homes, farms, and businesses is marking a major milestone, with a legacy that has quietly helped shape the way New Zealand builds. Marshall Industries is celebrating ninety years in business, a journey that has seen the company become a familiar and trusted name across Southland and Otago, while also playing a pioneering role in the country’s roofing industry. Originally established in 1938 as Owen Marshall Plumbing Ltd, the business was responsible for a major innovation in New Zealand construction. The company was the first in the country to develop and produce continuous long-run corrugated roofing iron, designing and building its own machinery in Invercargill using local tradespeople. It was a breakthrough that changed how roofing was manufactured and installed across New Zealand, setting a new standard that is still widely used today. The company also led another national first, developing continuous spouting systems and manufacturing twenty machines locally, in the 1940s, which were then distributed across New Zealand, Australia and the Pacific Islands. Managing Director Tom Marshall says these milestones reflect a long history of practical innovation driven by the needs of the industry. “There has always been a strong focus on finding better ways to do the job,” Marshall says. “That early innovation came from local knowledge and skilled tradespeople right here in Southland, and it is something we are incredibly proud of.” Alongside this legacy of innovation, the business has continued to deliver roofing solutions across the region, protecting homes, farm buildings and commercial properties through decades of growth, change and Southland weather. Marshall says reaching ninety years is something the whole team is proud of, but it is also a reflection of the community that has supported the business […]

Fonterra’s real turnaround was productivity

From April issue of NZ Manufacturer magazine Geerten Lengkeek, Managing Director, Productivity People Miles Hurrell’s resignation marks the end of a significant chapter for Fonterra, and in many ways, for New Zealand. Fonterra isn’t just another company. It’s our largest business, a global-scale manufacturer, and the commercial engine behind a big part of our primary sector. When Fonterra performs, New Zealand performs. What stands out to me about the Hurrell era is this:the real turnaround wasn’t about growth, it was about productivity. He inherited a business that had achieved global scale, but not always strong returns. Revenue was high, but capital wasn’t working as hard as it could. Over the past six to seven years, that has fundamentally shifted. Return on capital has moved from around 5–6% to consistently around 11–12%, without a material increase in milk supply. That tells you something important. This wasn’t a volume story. It was a conversion story, and that’s what productivity really is. Better conversion of milk into value. Better use of assets to drive throughput and margin. Better deployment of capital into earnings. A big part of that has been strategic focus. Simplifying the portfolio, exiting lower-return businesses, and refocusing on Ingredients and Foodservice where Fonterra has real advantage. But just as important is what’s happened inside the system. This is a manufacturing business at scale. Productivity is won or lost in how well you manage flow, yield, and asset utilisation: from farm through to processing and export. Many years ago, my colleague Nick Brownsword and I were involved in the early operational excellence work in Fonterra. Even then, it was clear how much opportunity existed in improving flow, reducing waste, and aligning the system end-to-end. What’s been encouraging is seeing how those ideas have evolved and matured, and how this is […]

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doug

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