Dairying and Popcorn

August 2010

A supplementary crop has grown into a multi-million dollar popcorn enterprise

1984 was big year for Paul Davies he started dairy farming in his own right and ventured into planting a popcorn crop to supplement a poor milk payout. Twenty years later he still has the diary farm but hes also running a factory which supplies popcorn in to around 81% of New Zealands popcorn market and 58% of the ready to eat market.

Paul is an Open Country supplier. By releasing his Fonterra shares hes been able to invest back into the farm business with a feed pad etc.

It is a split herd. Theyre autumn calving - so theres milking going on although Paul has a contract milker.

It has been a hard season for many in the Waikato most are feeding out supplements and the Davies farm is no exception. They feed out straight after milking (0700am) and also around 1.30pm in the afternoon.

Paul started in the dairy industry from the ground up. He was a lower order milker and moved on to sharemilker before buying the property they are on now.

The company was started in 1984 (Paul and Donna also got married that year) after a downturn in the dairy farming sector prompted the Davies to contract-grow popcorn on their Te Awamutu dairy farm.

The contract apparently fell over - leaving them with a crop they didnt know how to use. Early experimentation was in the kitchen of their home.

Now, 25 years on, business is booming as the recession hits consumers in the pocket and forces them to entertain themselves at home and cook their own popcorn.

Pop'n'Good's Te Awamutu-based factory employs 20 staff. It supplies ready-to-eat corn and microwave popcorn (imported from the US).

The Davies stayed with growing their own crop in the district for several years but these days contract grow it largely in Hawkes Bay.

Some care has to go into selecting varieties that will grow well. Growers have to be careful not to have other types of corn crops nearby so as to avoid cross pollination. There seem to be two basic varieties white and yellow those with kernels pointed at the ends and others with grain of an ordinary shape. Some types suit eating as fresh the other type suits confectionary.

Popcorn seed germinates more slowly that other types of corn and seedling growth is slower. This means that at least offshore, coarser textured soils which warm faster are ideal.

Weed control is the same for other corn crops the popcorn has similar disease issues.

The moisture level for the crop is critical too much moisture and they wont pop correctly and will taste chewy. In the US field moisture levels are recommended at between 14 and 18%. The crop is harvested by combine but the machine has to be adjusted to suit it.

Popcorn is different from sweet corn and maize. It has usually smaller kernels than maize or sweetcorn.

It has a soft starchy centre surrounded by a very hard exterior shell. The idea is that when popcorn is heated the natural moisture inside the kernel turns to steam that builds up enough pressure for the kernel to explode. This presumably means that one of the key ingredients of good popping corn is a strong kernel.

When the kernel explodes the white starchy mass that you like to eat forms. All types of corn will pop to some degree, but they won't necessarily have enough starch to turn inside out, or an outside layer that will create enough pressure to explode

While popcorn continues to be the Paul and Donnas biggest seller, the business they started has continued to diversify its product range in the convenience snack food sector.

The diversification is being led Paul Nolan, who Paul and Donna invited to join the company in 2005.

This month Davies Foods is rolling out its newest product, Pop Chips, which will compete against the traditional potato chip market. Pop Chips are air-puffed chips that are popped. They are made in the Te Awamutu factory using the same machine which pops Pop'n'Good popcorn in its modest-sized factory. Mr Davies said it followed a two-year drive to develop a potato chip that tasted good and was also healthy.

The company also has imported chicken and tuna lines which are beyond the scope of this story.