Brisbane jobs on way to Tamaki

By DITA DE BONI

Transtasman baker Goodman Fielder is to transfer operations worth $10 million from Australia to East Tamaki.

Parts of the company's edible oils business formerly based in Brisbane will come to the company's local Meadow Lea plant, adding eight jobs to the present staff of 150.

The transfer has meant a "small number" of redundancies in Australia, the company says, but brings its dairy blend business closer to "dairy contacts and expertise in New Zealand".

The move has been considered within the company since Goodman Fielder New Zealand bought the remainder of margarine maker Aspak Foods from the dairy industry in 1998, using the boosted business to improve sales from $21.7 million to $76 million in 2001 - representing around 10 per cent of total sales.

Producing more than 40,000 tonnes of product such as Olivani, Gold'n Canola and Slimarine spread each year, the East Tamaki business originally broadened its portfolio by acquiring the rights to process related products such as bottled oil for retail, as well as the right to market and sell the Paul Newman range of sauces from the US.

It has outperformed Australia consistently since being bought out, pushing up margarine volumes 8 per cent and gaining record market share of 51 per cent in the local "yellow fats" market against the traditional favourite, butter.

The Australian operation, however, has had a rocky time. In the first half-year of 2001, the business had a mixed performance stemming from lower commodity costs, which reduced commercial sales and generated poor results from the food services division.

It is understood that the East Tamaki plant could be in line to absorb more production as the company cuts more costs. Goodman Fielder has pledged to skim $A50 million from group-wide operations each year for three years, partly through eliminating production line duplication.

But the cost-cutting exercise has come too late for some Goodman Fielder shareholders.

The Australian Shareholders Association is understood to be planning to call for directors' heads to roll at the company's annual meeting in November.

One director singled out by the potential mutineers is New Zealander Sir Dryden Spring.

Prompted by news of the group's recent $A78.3 million loss, shareholders including key institutional stakeholder Perpetual Trustees have become more strident in their criticism of Goodman Fielder's languishing share price, although the company claims to have regained some of its reputation with the appointment of new chief executive Tom Park.

Mr Park - former head of Southcorp and Asia Pacific head of Kraft foods - replaces Goodman Fielder's present chief executive, David Hearn, next month.