At a time when many companies in Papua New Guinea are cutting back, Goodman Fielder is looking to ramp up its operations. Jean-Michel Lejeune, General Manager at Goodman Fielder PNG, tells Business Advantage PNG how the PNG subsidiary is looking to expand.

Jean-Michel Lejeune. Source: Goodman Fielder

The 100-year-old Australasian company Goodman Fielder was acquired last year by the Singapore-based edible oils company Wilmar International, and Hong-Kong based investment company First Pacific, for $1.3 billion (K3.02 billion). It signalled a shift to integrate the company more into the Asian region.

Lejeune, who was formerly General Manager of Nestle PNG based in Lae, has been in the new role for nine months. He claims that the new owners of the company are taking a long term view of the business.

‘The biggest challenge is managing growth.’

The new owners appear to have the size to adopt the long view. Wilmar claims to be the largest agribusiness group in Asia, with interests in edible oils, sugar milling and refining, grain processing and consumer foods. First Pacific owns 50 per cent of Indonesia’s largest food company, Indofood.

Counter cyclical

In a counter-cyclical strategy Wilmar has committed to a major investment in PNG, despite the current economic challenges. The company says once plans have been finalised, construction will begin on a large, modern Buhler-designed flour mill in Lae.

The multi-million kina project will increase capacity, enabling the company to produce enough high-quality flour per day to keep up with demand from PNG’s growing population. A more modern stock feed mill is also planned.

Goodman Fielder first established operations in PNG in 1975.

‘The biggest challenge is managing growth; for example catering to the need for additional storage capacity,’ says Lejeune.

Goodman Fielder operations in the 1980s. Source: Goodman Fielder

Products

Goodman Fielder first established operations in PNG in 1975 through Associated Mills Limited, producing flour and stockfeed. It currently has a flour mill in Lae and a second mill in Port Moresby along with a bakery.

The company presently produces Flame Flour, Twisties and Pops Snacks, Flame Stock Feed, Bilas Bread and Cakes and Arthurs Pies in PNG.

Goodman Fielder PNG also sells other products such as MeadowLea, Praise, Cornwells, White Wings and Meadow Fresh long-life milk, which are produced in Australia and New Zealand.

Lejeune’s background has been in the global fast moving consumer goods.

Lejeune says that some new products are being introduced this year, most of which will be produced in PNG.

Momentum

‘The takeover has energised Goodman Fielder PNG and our challenge now is to maintain that momentum,’ says Lejeune. ‘The company really believes in PNG and is currently increasing its management capacity by recruiting the top experts in a range of fields.’

The new owners’ intention (is) to take Goodman Fielder from the premier Australasian food company to a leading Asian and Pacific Islands food company.

Lejeune’s background has been in the global fast moving consumer goods (FMCG) industry, largely in developing countries including Africa, Indian Ocean islands, South East Asia and the Pacific Ocean islands.

He believes his global experience aligns with the new owners’ intention to take Goodman Fielder from the premier Australasian food company to a leading Asian and Pacific Islands food company, largely by utilising its scale and distribution advantages.