Sam Lewis
Chairman AFFCO

Background information and achievements:

Mr Lewis has been a Director in AFFCO since 1990. He became Chairman in 1999 and Executive Chairman in 2000. Interestingly his father was also Chairman of AFFCO. He has held various Federated Farmers’ industry posts, and is a Director of Farmers Mutual Insurance Association. He also has interests in a number of farming properties and in a number of non-farm related enterprises.

QBE Insurance Chairperson of the Year 2005
Winner of the Marsh Most Improved Performance Award

An insight into AFFCO

AFFCO is leading meat processing and exporting enterprise, which provides premium meat cuts to their customers. The company has been operating in New Zealand since 1904 and became publicly listed on the New Zealand Stock Exchange in 1995, at which point Mr Lewis believes it evolved into a more “conventional company”. Many of their shareholders are actually the farmers that supply their livestock. Currently AFFCO employs over 3000 staff and has a turnover of over $90m. AFFCO exports more than 150,000 tonnes of meat products and by products every year to over 74 countries around the world, as well as being a major player in the domestic market. As a company they strive to maintain their outstanding reputation for innovation, quality, and adaptability.

Presentation

Mr Lewis discussed a venture AFFCO had in China starting a processing plant around 1998. The project ran far over budget and the plant only processed 2000 animals, less than half of what AFFCO in NZ would currently process in a week, before it was shut down after only two years of being in operation. Some of the difficulties of operating a business in China that he identified were the different licences, systems and standards that exist. He stated that the failure rate of companies in China was 98%.

Despite this he and his eldest son started a fitness centre in the CBD of Beijing, which has become profitable. They have opened a second centre and own 82% of the company. Essentially the company is run by locals, which overcomes the language barriers. “Pearls of wisdom” he had for us were the importance of recognising that it takes time to be recognised as an entity, staff selection and motivation are critical and one must know the systems and language to be successful.

Advice and quotes

“We should concentrate on our domestic situation”

Qualities a director needs to possess: -know the business –have an inquiring mind – an ability to respect people in the workplace, while still keeping some distance.

“China is for the Chinese”

“You need to work hard and respect the rules”

“You need to get the cost structures right!”

By Jane Exeter