‘Oldboy network’ taken on abroad
AUCKLAND: A New Zealand software company is helping disrupt the multibilliondollar US markets for primary products.
North American giants such as Tyson Foods have been using phone calls, fax machines and spreadsheets to move everything from pigs’ ears and chicken parts from farms to vendors.
‘‘There are several layers of middlemen and fees,’’ Nui Markets vicepresident Ashley Honey said.
‘‘It’s an archaic industry that relies on an oldboy network, a bit like foreign exchange in the 1980s — we are trying to cut the fat out.
‘‘Our technology ultimately streamlines this process and reduces costs and gets the best price.’’
Auckland firm Nui is part of a wave of startups dragging the process into the 21st century with automated, online trading platforms, and recently scored a profile in The Wall Street Journal for its efforts.
‘‘Companies like Nui, populated with former traders, are seeking to build streaming platforms that centralise supply and give access to smaller players at better prices,’’ the newspaper reported.
Mr Honey said he was a former Wall Street screen jockey; he moved from Auckland to New York in 2007 to trade foreign exchange and commodities.
In 2019, he joined Nui, cofounded by chief executive Kevin O’Sullivan — also a former foreign exchange trader — in 2012 (when it was initially known as Full Cream).
Nui had already had undertheradar success, creating what had become the largest online dairy trading platform in Europe, which launched three years ago and is now used by Scandinavian giants Danish Crown, Arla Foods and Valio Group, and Ireland’s Glanbia.
Mr O’Sullivan said Nui had just launched its first US trading platform, for Hilmar Cheese, a large cheese, whey protein and lactose manufacturer which primarily targets the businesstobusiness and food service markets (it sells cheese in 20kg or 300kg blocks).
Forbes says it is one of the largest cheese manufacturers in the US, and puts its annual revenue at $US2.7 billion ($NZ3.7 billion).
Mr O’Sullivan said Nui should have two or three more US deals to announce shortly.
He would not reveal details, but he has become well versed in the $US70 billion chicken parts market. It is huge, but with lowtech trading — so ripe for Nui.
Mr Honey said that, in a way, the pandemic had helped Nui to break through in the US.
‘‘It was initially difficult to sign new clients; everyone was just fighting fires during the first nine months [of the outbreak].
‘‘But I think since the start of 2021 the move to digital in not just agri but all B2B [businesstobusiness] has accelerated.
‘‘Large organisations are more receptive and understand the need to move digital.’’
When facing resistance, the question he usually asked was ‘‘how do you think tomatoes/ poultry, etc will be transacted in five years’ time?’’.
Asked why there had been hostility to change over the past two decades in so many primary commodity sectors, Mr O’Sullivan blamed a ‘‘pale, stale, male’’ hierarchy.
While Nui had landed deals via Zoom, the best way to prod along a culture change was facetoface, he said.
On whether that was ironic for a firm pushing a digital, selfservice way of doing business, he said, ‘‘we’re not selling technology, we’re selling change’’.
Before Covid19, Mr O’Sullivan spent 150 days a year travelling.
He and Nui cofounder Bruce Maunder still own a majority of Nui, which has expanded under its own power — though Mr O’Sullivan said there might be a ‘‘small’’ raise later this year.
Nui now has eight live platforms across three sectors (dairy, meat and produce), collectively supporting 400 firms in 55 countries, with 1000 users.
‘‘We’re little known at home,’’ Mr O’Sullivan said.
A key focus for Nui this year was bringing New Zealand companies on to the platform. — The