When the time is ripe for change

Vera Murphy first planted garlic for sale at a flea market in 1965, the seedlings of what was to germinate as a family business, Murphy’s New Zealand. 

“This is our family’s 59th year planting garlic for commercial sale,” says grandson John Murphy MInstD, who now leads the business with wife Jessie. A director for more than a decade, Murphy (who also chairs the board of Vegetables New Zealand) understands the opportunities and challenges the sector faces and the robust discussion needed at the table to ensure the livelihood of growers, their families and the wider community. 

Growing up in the third-generation business, he pitched in during planting, harvesting and irrigation in the summer, and recalls being onsite with his father taking business calls on “a massive cell phone”. 

“I tagged along on a few sales trips with dad when I was a kid, and also looked after the phone a few times in my late teens when he was on marketing missions overseas,” Murphy says of gaining insights into the business operation. 

His parents never had any expectations of their son joining them, insisting he pursue his own passions. That saw “an ill-fated” short spell working in a public affairs company. “I wasn’t a good enough writer to keep up and I didn’t have the attention to detail or drive to become better when I was younger,” he says. 

What he did gain was valuable knowledge about the importance of good communication, a customer focus, corporate culture and having resilience through the day-to-day work.

“I also had a stint working for a District Health Board where I had extremely supportive bosses who nurtured my business planning and governance skills,” says Murphy of bringing this knowledge into the business. 

“I saw a business that was in a dynamic and competitive environment where there was room for innovation, an opportunity to work on the land, to travel the world and, ultimately, to work with brilliant New Zealand food,” he says. 

Now immersed in all-things garlic, Murphy has helped to shape the structure of the company, taking the risk to bring new ideas and put best practice in place. 

“What’s required is a focus on hard work and embracing change. The succession plan was to build a business that could stand in its own right. We’ve had some wonderful partners along the way, and have some fantastic staff,” he says. 

A decade ago, the company had five board members, two of them independent directors. But a need to remain profitable in the face of unpredictable weather and tighter capital, meant change was needed to survive. “It was a brutal time,” he says. 

“We had a huge amount of respect for the people who were helping us run the company. Unfortunately, when our market and growing conditions fundamentally changed, we needed to change as well.” 

Murphy says the need to aggressively rotate the land – to keep pests and disease under control and look after the soil – makes land ownership complicated and this effectively locks many growers out of the ability to earn capital gains or raise capital against land. 

“There are other ways to raise capital, but we have to be pretty sharp to make it work,” says Murphy. 

The guarantee of production can also dramatically come to a halt with unforeseen weather events. “Generally, it’s about getting enough sun and water at the right times, and then not having too much water when we’re looking to harvest,” he says. 

“Growing is a massively risky business to undertake and that’s why we need to be keenly aware of how conditions are changing – weather is probably our biggest worry. Sometimes with vegetable production, frankly, you feel silly for putting yourself at such risk. 

“We need to build in the ability to adjust what we’re doing to meet changing seasonal conditions. Growers all do things slightly differently, but we are determined to keep improving,” says Murphy. 

After what he describes as a very difficult five years, Murphy’s New Zealand brought in an advisory board to take them through to their next incarnation. Their value-add has been their ability to “cut to the chase”. 

“No one is there simply to fill a seat. They bring a fresh set of eyes with very solid financial skills, but also a wider understanding of company culture and business performance. They are tremendously supportive, while also challenging us to look at things from a different perspective,” says Murphy, adding they will look to formalise the board structure further in the future. 

The family focus of the business adds complexity in some areas: “We have generations of of experience, which is extremely valuable, but this can be an impediment to listening to advice and making change when it’s needed. 

“Identifying your strengths and weaknesses, and setting clear expectations for family members, sounds easy – but it has its challenges. Having family working in the business and on the board can mean things are very upfront – or that you have underlying issues that fester. That’s where fresh eyes are important.”