Miles Hurrell: NZ has goodness in spades

Fonterra CEO Miles Hurrell. Photo / Peter Meecham

Herald: What score would you give New Zealand in its handling of Covid-19?

I haven't got a school-teacher bone in my body, so I'm not going to land on a grade. But I would say, I believe the overall health response has been effective, and the immediate economic response, fair. I think the opportunity from here lies in being able prioritise quality thinking on the right longer-term economic recovery initiatives and of course, continued discipline, and balance, required to manage health risk at the border.

Herald: As CEO of Fonterra, how do you see business playing a role in the recovery?

Kiwi businesses rely on thriving regions and economies across the country. As an export nation, customers around the world are relying on us, too — so I think we can, and absolutely should, be keeping New Zealand's Covid-19 recovery top of mind in business planning. As a food export business (and country), I do see some leverage developing for New Zealand in the wake of how we've managed Covid-19.

As a Kiwi co-op through and through, it's important to me that we create some advantage for New Zealand in the climb ahead.

Herald: Not exactly like for like, but can you share any learnings from your own recovery? Fonterra has made quite a come-back over the last year.

I have been reflecting on this. I agree it's not like for like by any means, but I'll apply some of the same general thinking around what's required for a successful business turnaround or recovery.

I'll rattle you through the main things that are working for us.

It comes down to us focusing on our strengths. For us, that's our unique pasture-based farming systems here in New Zealand and the nearly 150 years of dairy knowhow of our people. These together are capable of producing and making some of the highest quality and most nutritious food in the world.

We are pretty happy with what we have right here at home. Our scale and efficiency and global customer relationships have proved their resilience. When we're facing disruption, like with Covid-19, they enable flexibility to keep us productive at home and agile around in-market hotspots.

Another lesson is the importance of managing debt. Major discipline and tough calls around paying down debt sure have put us in a better position to weather any storms, and by getting onto this early, it has allowed us to focus on managing Covid-19.

Regarding the strengths we leveraged in our business reset, they're not unique to Fonterra.

Much of New Zealand's primary food sector has these attributes. Think about horticulture, red meat and the wine industry for example — we all share the same provenance story.

Covid-19 has built currency in the New Zealand food brand. On the world stage, with the exception of the odd critic, the Government's handling of Covid-19 has highlighted we're a safe and responsible country, which is good for export businesses. In terms of international recognition of New Zealand's unique provenance story, I reckon we've fast-forwarded a good few years.

It's an example of the accelerated prosperity that can come when business and Government are singing from the same song sheet.

New Zealand export businesses are out there every day promoting New Zealand's unique offering to world. That same message needs to be echoed from here domestically, for it to be credible and to translate into export revenue.

Yes, the country has some areas to improve, but let's focus just as much on what we have going for us — there's goodness in spades.

Herald: What are your hopes for the relationship between business and Government following the election? Does business have any reason to feel confident?

If I take anything out of this year, it is the value of people coming together around a challenge, good partnerships and the need for aligned goals between New Zealand owned business and Government, to support and grow a successful and more productive country.

We've come together pretty well over the health response to Covid-19, now we need the same determination and alignment on the economic response, so we as a country can harness any opportunities and come out of this thriving.

Ultimately, we want the same thing — New Zealand's success.

Miles Hurrell's top issues

Top 3 issues facing the nation
1.The post-Covid economic recovery — Government and industry should work hand in hand to stimulate investment, jobs and growth.
2. Ensuring exporters have access to markets and customers — working with industry and like-minded governments to keep supply chains open and promote open markets.
3. Maintaining a strong & proud New Zealand. Leverage the NZ Brand and provenence credentials, including strong sustainability positioning and progress. Get everyone on the same page and promote NZ's unique place in the world.

Top 3 business priorities
1. Keeping our people safe and supported in the broadest sense
2. Navigating the uncertain global outlook, staying close to our customers, and keeping focused on delivering our business targets and performance promises in the short & long term.
3. Playing our part to support New Zealand — taking care of communities and the environment.
On the world stage, with the exception of the odd critic, the Government's handling of Covid-19 has highlighted we're a safe and responsible country.