Rural round-up

March 4, 2015

Water refusal ‘will have wide imapct':

Federated Farmers says the Canterbury Regional Council’s refusal to allow some farmers to exceed their groundwater limits this year will have a widespread impact on farming there, as the drought bites deeper.

Some farmers with seasonal restrictions on their ground water allocation have asked the council if they can increase the amount of water they can take, because they say they’ll need more to get them through the irrigation season.

Environment Canterbury turned them down because it said limits were set for each zone for environmental reasons.

It said groundwater levels were now very low, particularly in the southern half of the region, where some wells have dropped to record levels. . .

Improvements to food traceability on agenda:

Food Safety Minister Jo Goodhew has welcomed the release of the Dairy Traceability Working Group’s reports, which make recommendations on food supply chain traceability.

“The group was formed following a recommendation from the Government Inquiry into the Whey Protein Concentrate Contamination Incident, with a mandate to investigate dairy traceability,” Mrs Goodhew says.

“However traceability is critical for all foods exported from New Zealand, and the government is now considering applying the report’s recommendations across all food sectors. . .

Magnetic milk – the lure of dairy investment down under:

In 2014 there was a flurry of inbound investment activity by Asian dairy companies, mostly from China, into the New Zealand and Australian dairy sectors. However Rabobank warns that ongoing growth in import requirements by Chinese and wider Asian dairy companies shouldn’t be taken for granted.

In a recently-released report ‘Magnetic milk – the lure of dairy investment down under’, global agribusiness banking specialist Rabobank says a specific focus for overseas investors in New Zealand dairy has been on securing access to liquid milk and ingredients for infant formula.

Report co-author, Rabobank director of Dairy Research, New Zealand and Asia Hayley Moynihan says a quest to secure access to a high-quality, safe milk pool is driving international investment in dairy down under.

“Between 2014 and 2020 we expect China and South East Asia combined to account for almost one third of the increase in global dairy imports,” Ms Moynihan says. . .

 

 – Keith Woodford:

[This post was first published in the Fairfax NZ Sunday Star Times on 22 February 2015. It is the fourth of a series of five on Fonterra.  The earlier posts were ‘The evolution of Fonterra’, ‘Fonterra’s jouney’, and ‘Fonterra’s global reach’.]

One of the big challenges for Fonterra has been to determine its overall market position. Is it a marketer of commodities? Or is it a marketer of fast moving consumer goods (fmcgs)? Or is it a marketer of specialist ingredients? Can it be all three?

The challenge of trying to be all three is that the appropriate business culture is different for each market positioning. Commodity marketing is all about logistics, efficiency, and financial discipline. Fmcgs are all about entrepreneurship, creation of brands, being fast on one’s feet, and willingness to take risks. Specialised ingredients require a focus on science and technology. . .

 

Scholar is one to watch:

Henry Buckingham says his Beef + Lamb New Zealand scholarship is worth far more than the $5,000 per annum financial support.

“It’s the people I’ve got to meet and the information I’ve picked up from those people.”

The 19 year old is one to watch. He was the 2011 winner of the New Zealand Teen Ag award, which runs along similar lines to the national young farmer of the year competition. Henry also has a goal of competing in the Coast to Coast and is currently building up for the event. . .


Rural round-up

February 17, 2015

Agricultural cooperatives increasingly thirsty for capital – industry report:

Growing global market opportunities and the need to strengthen supply chains are creating a thirst for capital among agricultural cooperatives as they seek to invest in their future, according to a recently-released research report.

In the report Agricultural cooperatives – quenching the thirst for capital, agribusiness banking specialist Rabobank says sourcing capital is on the agenda for almost every large agricultural cooperative, and is rapidly moving up the list of priorities for many.

Report author, Rabobank research director Hayley Moynihan says the traditional source of investment capital for cooperatives – their member base and modest debt facilities – may now no longer be enough to allow coops to fully participate in an increasingly dynamic global and local food and agribusiness market.

 

Health & Safety requires a shift in attitude – Chris Lewis:

This week, Worksafe is launching a new program, funded 50/50 by WorkSafe and ACC.

As you would have read in the media health and safety is a big issue affecting the rural community, and we are taking it seriously.  Last year, Federated Farmers Waikato ran six health and safety seminars with industry organisations, with significant attendance by farmers.

In the last two years, there has been up to 40 deaths and many injuries on-farm. Most farmers would agree this has been too many. While there is no pattern, there are too many accidents occurring and we must do more to reduce these on-farm. This starts with you the farmer, the person in charge of the work place, the owner of the business, the management taking ownership and responsibility. If you don’t think this will affect you, you are wrong – the health and safety culture is here to stay. This is sinking in as throughout the country the demand from farmers for health and safety workshops has been increasing as well as sales of Federated Farmers Health & Safety Policies. . .

Milk price guarantee winner this year:

Dairy farmers who signed up for Fonterra’s guaranteed milk price scheme this season will find themselves on the right side of the ledger.

The scheme, in its second season, allows farmers supplying the co-operative to offer up to 75 percent of their milk for a guaranteed price.

About 180 farms signed up for the first offer at the start of the season in June, accepting a price of $7 a kilo of milk solids, which was the opening forecast. . .

Germans love our grass-fed beef  – Tony Benny:

German diners are warming to the taste of New Zealand grass-fed hereford beef and a high-value niche for it is growing in a market dominated by pork and poultry, says importer Christian Klughardt.

Just back in Hamburg after his annual visit here to meet supplier Silver Fern Farms, Klughardt said demand for hereford was growing thanks to its quality and consistency, which makes it stand out from beef imported from South America.

At blind tastings staged as part of marketing and promotional events, New Zealand hereford always came up tops, he said.

“We blindfold them and let them taste hereford to the other and they would always pick the hereford on a continuous basis,” Klughardt said. . .

Rugby rep revels in rural life - Anne Hughes:

Former Taranaki rugby player Carl Carmichael is loving his return to country life.

After 53 appearances for Taranaki’s ITM Cup rugby team, Carmichael and his family moved back to Matiere, the farming community west of Taumarunui where he grew up.

While the former prop misses his favourite coffee shop since leaving New Plymouth, he says the country is where he and his family want to be.

He has worked as a builder since he and wife Emma moved 12 months ago. He played rugby last season and represented King Country in the New Zealand Heartland tour.

The couple are rearing calves and running cattle on land they lease at Matiere in the hope of building their stock numbers so they can buy their own farm one day. . .

Chairman returned & new director welcomed to Silver Fern Farms’ Board:

Rob Hewett and Fiona Hancox have been elected to the Silver Fern Farms’ Board of Directors.

The results of the election which closed at 3.00pm on Friday, 13 February 2015 were:

· Rob Hewett: 41,437,912

· Fiona Hancox: 25,241,163

· Herstall Ulrich: 20,695,485 . .

 


Rural round-up

June 30, 2014

Rustling needs to be a specific offence:

Federated Farmers is asking political parties to develop policies to tackle the scourge of stock theft better known as rustling.

“We know stock theft or rustling has been estimated to cost the farming community some $120 million each year,” says Katie Milne, Federated Farmers rural security spokesperson.

“In recent weeks we’ve seen a lifestyler raided for breeding ewes in Waikato and over 200 sheep despicably shot in Otago.

“We’ve got to ask if the penalties imposed are serious enough to be a deterrent for either rustling or poaching. Based on our experience to date they are not. . .

Behaviour is the root cause of meat industry’s problems – Allan Barber:

I am not completely sure why we spend so much time and effort complaining about the meat industry or which problems we are trying to solve. However in the interests of encouraging progress and stimulating debate, I will try to define the problem: this appears to be that the meat processing and export sector is not profitable enough, whether in absolute terms or in comparison to dairy. Both may be true.

It is worth stating the unique challenges of the red meat sector up front. First, there is a market at both ends of the chain, procurement and sale of the products; second, New Zealand exports a higher percentage of its production than any other country which must travel further to reach its markets, not all of them equally buoyant; third, sheep and beef must be disassembled into multiple cuts of meat as well as many co-products, all of which are sold into a wide range of markets for variable returns; fourth the climate dictates when the grass will grow and livestock will be ready for slaughter; and last, but not least, the producer can choose when and where to send the livestock for slaughter except in a drought. . .

The recipe for future success:

Blue Sky Meats and its suppliers will be relieved the company is back in black after two challenging years.

The return to profitability – a $1.946 million after-tax profit for the year to March – came on the back of the only two losses in the Southland-based company’s 28-year history.

It has been a much better year for meat companies. Along with Blue Sky – and Lean Meats – the two big co-operatives, Alliance Group and Silver Fern Farms, who both report late in the year, have signalled profitable years. . .

Dairy recovery anticipated – by Christmas – Sally Rae:

Dairy commodity prices are predicted to stay in a trough period for another three to six months.

Speaking at the recent South Island Dairy Event in Invercargill, Rabobank’s director of dairy research for New Zealand and Asia, Hayley Moynihan, said it could be Christmas before there was a more sustained recovery in commodity prices.

It would be a ”reasonably prolonged” trough, as inventories were worked through and an additional seven billion litres of milk available on the world market in the first half of 2014 took time to ”find a home”. . .

Focus on consumers behind Pasture to Plate success – Sally Rae:

King Country farmer William Oliver’s belief in the consumer stemmed from his time studying at the University of Otago.

Mr Oliver and his wife Karen were the overall winners of the Silver Fern Farms’ Pasture to Plate Award.

Silver Fern Farms chairman Rob Hewett said the couple impressed the judges with their focus on the consumer. . . .

Simpler pesticide rules on the way:

The Environmental Protection Authority is aiming to simplify the rules covering pesticides and other hazardous substances.

The authority is marking its third anniversary as the country’s environmental regulator after being created from three agencies – the Environmental Risk Management Authority, the Ministry for the Environment and the Economic Development Ministry.

EPA chief executive Rob Forlong said one of its big achievements has been a wide ranging review of organophosphate chemicals, which resulted in controls on some pesticides being tightened and others phased out. . .

Final countdown for Ultimate Rural Challenge:

The showcase event of the rural calendar is only three days away!

The 2014 ANZ Young Farmer Contest Grand Final begins this Thursday 3 July, 4.30pm with the Official Opening at Lincoln University Library. Here, the top seven contestants will be introduced to the public and compete in their first head-to-head challenge.

The competition over the following two days is a testament to the sophistication of modern farming and level of skill and knowledge required to be successful in the field. The top seven young farmers have made it through to the Grand Final by competing in their local district competition and taking first place in their Regional Finals.  . .

Successful annual conference for Rural Contractors NZ:

More than 100 agricultural contractors from all over the country met in New Plymouth, last week, for Rural Contractors New Zealand’s (RCNZ) annual conference.

Rural Contractors New Zealand is the only national association for rural contractors in New Zealand.

Last week’s conference saw Wellsford-based Steve Levet re-elected as president of RCNZ, with Southland’s David Kean re-elected vice-president. . .

 


Farmers subsidisng NZ consumers

November 29, 2013

The question of why milk isn’t less expensive here when we produce so much is often asked.

What most people don’t know is  the retail price is well below the real cost.

. . . Chief executive Theo Spierings said the downside of strong demand for dairy commodities was increasing pressure on Fonterra’s NZ Milk Products division where profit margin remained under pressure.

To illustrate his point, Spierings said if the division were to pass on to consumers of a two litre bottle of milk in New Zealand the full price paid to farmers for their milk, the retail price would need to increase from $4 to $6 and the co-operative would be facing a media storm.

“And that would not be the worst of it…we would see the volume of dairy consumption in NZ going down very fast.”. . .

Fonterra and ultimately the farmers which supply it are subsidising consumers.

One reason for the higher cost is that we’re no longer low-cost producers.

The traditionally low-cost pasture-based dairying regions, such as New Zealand, have lost their cost advantage as input prices have risen, and now compete on the global market with a similar cost of production to producers with more intensive farming systems, according to a recently-released industry report.

In the report, No longer low-cost milk ‘down under’, agricultural banking specialist Rabobank says global milk production costs have converged between dairy-exporting countries, as the traditionally low-cost milk producers have seen their production costs rise, off the back of volatile global feed prices and the increasing use of feed in traditional pasture-based regions.

Report author, Rabobank director of dairy research, New Zealand and Asia Hayley Moynihan says New Zealand milk producers will need to structure their businesses and production systems to withstand ongoing high price volatility – for both dairy commodity prices and inputs.

Higher costs can be absorbed when the payout is higher but costs rarely drop quickly when the payout falls.

Ms Moynihan says lower-cost regions, like New Zealand, have already “largely capitalised their efficiency gains in a high milk-price environment into the price of land and other assets”.

Therefore there is a need to adapt to this loss of absolute competitive advantage in milk production as efficiency gains become more difficult to obtain.

“It is likely that optimal supply chain efficiency could at least partially mitigate this loss,” she says.

“Efficiencies achieved downstream in milk processing and marketing via a strong route to market and established supply chain relationships will likely play a greater role in differentiating competitive export companies and industries into the future.”

Ms Moynihan says to ensure that competitiveness is based on more than just the cost of producing milk, the New Zealand dairy industry will need to work hard to ensure that it stays ahead of the pack in supply chain efficiency, market access, marketing and sensible regulation. . .

We also have to safeguard our reputation for high quality, safe food.

The New Zealand dairy industry, most well-known for its low-cost production, has moved, perhaps irrevocably, to a higher cost farming system, the Rabobank report says.

Ms Moynihan says the structural increase in milk prices globally and locally has driven the quest for increased production, almost at any cost.

“The first signs were there in 2002 when , on the back of milk prices increasing 42 per cent over two seasons, farm working expenses surged 33 per cent per kilogramme of milk solids produced,” she says.

“The reality check of a 32 per cent lower milk price in 2003, which remained at a similar level over subsequent years soon saw expenses fall back into line.”

However, Ms Moynihan says the 72 per cent lift in milk prices in 2007/08, and higher prices on average in the years following, brought a steep increase in production costs Media Release November 27, 2013

that show little sign of abating without a significant change in farming systems or an economic crisis.

Farm working expenses increased 72 per cent in 2007/08 on the prior season and interest cost rose 29 per cent with both expenditure categories oscillating around these higher levels ever since, she says.

Additionally, higher interest costs per kgMS have been driven by New Zealand dairy farmers’ increased debt, not higher interest rates, Ms Moynihan says.

“The significant increase in dairy land values over the past decade combined with an increased focus on land acquisition resulted in aggregate farm debt across the dairy industry more than doubling since 2002 to almost NZD 20 per kgMS produced,” she says.

New Zealand producers are likely to experience upward pressure on milk production costs over the coming years as they are confronted by a rising interest rate market and the likely impact of future environmental regulations on farming systems and milk production levels.

“Tackling environmental issues is likely to result in a variety of measures that may include increased infrastructure on-farm, altering pasture management or decreased intensity of farming systems which all impact production cost dynamics”.

Ms Moynihan says milk producers in New Zealand should consider where the competitive advantage lies for their own operations.

“Increased exposure to the global dairy market for some milk producers and greater intensification on-farm for others has added complexity to many dairy farm businesses,” she says.

“A flexible production system at a higher average cost may still be competitive if it provides resilience during a downturn.”

With high volatility expected to continue for both milk prices and production costs, the ability to lower inputs and/or costs during periods of abundant global supply would be a distinct advantage, Ms Moynihan says.

“Southern Hemisphere producers previously survived global market downturns for prolonged periods due to the size of their absolute comparative cost advantage,” she says.

“With this cost advantage now minimal to non-existent, other strategies to survive the inevitable downturns – albeit likely short-term – will be required.”

Any dairy farmer not doing well with this season’s forecast record payout shouldn’t be in the business.

But next season’s payout will almost certainly be lower and even the best farmers have to keep a rein on costs to ensure they can cope with less money.

Businesses which service and supply farms also have to be aware that while they might be making hay under this year’s sun, next season could be cloudier.


Rural round-up

July 14, 2013

Global forces need smart response – Sally Brooker:

New Zealand dairy farmers and milk processors need robust business structures to withstand market movements, Hayley Moynihan says.

Delivering a keynote address at the South Island Dairy Event in Lincoln on June 24, the Rabobank food and agribusiness research and advisory senior dairy analyst said milk price volatility was not going away. We needed to aspire to where there was opportunity to enter more lucrative markets.

Rising consumer expectations were presenting a continuing challenge, Ms Moynihan said.  . . .

Waikato farmers set the record for Agrecovery:

Federated Farmers is applauding the way Waikato farmers have embraced Agrecovery rural recycling. A record six tonne of hazardous horticultural, agricultural and veterinary chemicals was collected during the Waikato regional collection, finishing last week.

“Farmers are choosing to dispose of their chemical waste responsibly due to the convenience of the service,” says James Houghton, Federated Farmers’ Waikato provincial president.

“It is great to see increasing numbers of farmers using Agrecovery. It is another example of farmers changing their behaviour and working for the good of the environment without the need for legislation. . .

Warm, wet weather inhibits rabbits - Ruth Grundy:

Wet and warm springs and summers are keeping rabbit numbers down across Canterbury.

Environment Canterbury biosecurity team leader Brent Glentworth said for the past two seasons warm, wet weather during the first rabbit breeding cycle had been largely responsible for keeping the population in check.

Young rabbits had a low survival rate in those conditions because they succumbed to pneumonia or coccidiosis – a liver disease ”very prevalent” in warm, wet weather, Mr Glentworth said. . .

Mounting cost to irrigation schemes – Ruth Grndy:

Irrigation companies in the Waitaki river catchment are facing significant clean up bills after last month’s flooding damaged irrigation schemes.

Waitaki residents say the rain and flooding from the storm which lashed the country was the worst seen in decades.

The Danseys Pass bridge was destroyed after about 160mm of rain fell in the space of three days.

Maerewhenua District Water Resource Company chairman Kelvin Weir said the scheme had been ”very lucky” and ”survived pretty well” considering the amount of rain and high river flow. . . .

Irrigation extending potato, onion output - Ruth Grundy:

Easier access to water in Canterbury is not only fuelling dairying production but also a significant growth in the production of potatoes and onions.

The 2012 agricultural production census, conducted by the Department of Statistics, shows the Canterbury potato harvest accounted for half the national harvested area in June 2012.

And, the land put into onions increased from 690ha in June 2007 to 1040ha in June 2012 – about a 50% increase. . .

New ASB sponsorship will improve financial literacy of dairying women:

ASB has confirmed it is a new gold sponsor of the Dairy Women’s Network (DWN). The partnership, which took effect on 1 July, will boost the work already being done by the DWN to improve the financial literacy skills of the country’s dairy farming women.

DairyNZ modelling shows there is an opportunity to improve the industry’s profitability by more than $1B per year, or approximately $1000 per hectare, by improving financial literacy and management capabilities.

The industry body has also identified there is a significant range in profitability between dairy farmers, with a contributing factor being management capability. . .


Rural round-up

June 29, 2013

Holding costs dairying’s challenge – Tim Cronshaw:

Keeping costs down could be the major challenge dairy farmers face in retaining New Zealand’s edge in global dairy markets.

Buyers had been making tougher conditions for food safety, sustainability, traceability and animal ethics and the list would grow, said Rabobank dairy research director Hayley Moynihan at the SIDE conference this week.

Milk-production costs were up “everywhere”, she said, and, with milk prices increasing to an expected $7 a kilogram of milksolids – about US50 cents a litre – other countries could be expected to want to supply this market. . .

Indian food demands might prove costly - Richard Rennie:

Pressure to comply with Indian dairy market requirements could hit farmers with higher feed costs as stock feed operators are forced to re-jig feed formulas and plant.

Dairy companies keen to get established in the growing Indian market may need to change stock-feed formulations and increase traceability around bought-in dairy farm feed.

Hindu religious leaders are pushing the dairy companies, saying imported milk products cannot contain animal tissue at any point in the process. . .

Cutting edge nitrate loss at SDF:

FOR MOST months of last year the Tomoporakau Stream leaving the Southland Demonstration Farm contained less nitrate than when it flowed onto the property.

While that finding from ground-breaking research by Lincoln University – with funding from Ravensdown – is good news for the farm and possibly the wider dairy industry, it is just a first year finding, stress the researchers involved.

“This is a really challenging but interesting project,” Lincoln University’s Prof Keith Cameron told a recent focus day held near the farm. . .

Tackling water limits in Otago:

IT’S GOING to take time and considerable investment to meet the measures Otago Regional Council is promoting to improve water quality, judging by the comments of two south Otago sheep and beef farmers to a recent Beef + Lamb New Zealand nutrient nous seminar.

However, both accept the need for change and are already taking steps to reduce their farms’ impacts.

At Taumata, Ken Campbell says he’s “pretty lucky” to have most waterways already fenced, with extensive planting, thanks to his parents’ hard work. . .

Big money for Busy Brook – Diane Bishop:

A five year-old pedigree Holstein Friesian cow is believed to have set a New Zealand record when it sold for $28,500 at the Southern Gold Medal Sale in Gore.

Taieri dairy farmers Nathan and Amanda Bayne, of the Henley Farming Company on the Taieri Plains, sold a two-third share in Holstein Friesian cow Busy Brook AP Rana for $28,500 to Australian dairy farmers Peter and Jessica Fullerton.

Sale manager Bruce Eade said it was the highest price paid for a Holstein Friesian cow this year, eclipsing the price of $24,000 paid for a Holstein Friesian cow at the Royal Presentation sale in Cambridge in June. . .

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Global food security and strong trade links key for NZ Ag

February 12, 2013

The world’s increasing focus on global food security and safety and New Zealand’s strong trade links will be key factors in the international competitiveness of New Zealand’s agriculture in 2013.

In its flagship Agriculture in Focus 2013 report – examining the outlook for New Zealand and Australian agriculture – specialist food and agribusiness bank Rabobank identifies key opportunities and challenges for the competitiveness of New Zealand agricultural commodities in the year ahead.

Overall, the report finds the outlook for New Zealand agri commodities remains generally robust, despite some ongoing challenges to competitiveness.

“Global supply and demand fundamentals indicate an increased reliance on exportable supplies from New Zealand in 2013, which should help bolster local prices, largely off-setting the currency drag (from the high dollar),” the report says.

However, the report cautions, maintaining competitiveness is vital in order to take full advantage of the opportunities.

“Enhancing the international competitiveness of New Zealand agribusiness is becoming increasingly challenging. Where possible, these challenges must be tackled in 2013 to mitigate the impacts of the elevated New Zealand dollar and to unlock the growing opportunities for the sector into the future,” it says.

Food security and safety

Chief among the opportunities for the New Zealand agricultural sector are those presented by the pressing global need to provide food security to rapidly-expanding and increasingly wealthy populations, particularly in developing Asian economies.

The report says New Zealand, like its near-neighbour Australia, is well placed to increase the volume of agricultural exports into the Asian region due to its competitive advantages, including superior product quality, developed trade linkages and geographic proximity.

“The issues of food security and food safety provide enormous opportunities for New Zealand and Australia’s agricultural sectors,” the report says. “Both countries have ample supply of high quality food and agricultural products, and comfortably sit on the doorstep of a fast-growing region.”

However, extracting and retaining maximum value for that production – along with maintaining and developing competitive advantages – will be key to ongoing growth in exports, says Rabobank senior analyst Hayley Moynihan.

“The New Zealand agribusiness sector is expected to play a major role as a reliable supplier of high-quality, safe food over the next decade, however it is not the only country eyeing the opportunities presented by the increasing food demand from a rising middle class in Asia. Maintaining competitiveness is vital to take full advantage of the opportunities,” she said.

Food safety is also an important factor identified by the report. “Plagued by local food safety issues, many trading partners are seeking the assurance of high quality imported food and agricultural products,” Ms Moynihan said. “And stringent food quality and safety frameworks already underpin production systems in New Zealand.”

Trade links

Throughout 2013, New Zealand’s strength in international trade links with key importing markets is expected to be a distinct competitive advantage for the country’s agri exporters, according to the Rabobank report.

“The inability of many, particularly developing countries, to feed growing populations through domestic production means that governments are aiming to facilitate trade flows and offshore investment in agriculture as a means of securing food supply,” Ms Moynihan said.

“Trade relationships and agreements are integral in developing and maintaining efficient access to global markets. The continued facilitation of trade flows to ensure stable food stocks globally in 2013 is expected to help support the local prices of agri commodities in New Zealand.”

For New Zealand, a key focus is the ongoing negotiations with Russia, Belarus and Kazakhstan to form a Free Trade Agreement.

The report says foreign interest in New Zealand’s agricultural assets also looks set to continue in 2013, with the country’s reputation for quality food production making it an attractive destination for investors.

Other issues

Other key issues facing the agricultural sector in 2013 identified by the Rabobank report include the strong New Zealand dollar, increasing regulatory pressures and sector employment.

The New Zealand dollar is forecast to remain elevated for at least another 12 months, challenging the competitiveness and profitability of the country’s agricultural exports, the report says.Media Release February 11, 2013 3

“The elevated currency makes the pursuit of future productivity gains in New Zealand agriculture all the more critical,” Ms Moynihan said.

In addition, increasing regulatory pressures are creating some extra headwinds across the agricultural sector adding to the cost of production, as well as creating uncertainty, limiting resource availability and driving change in farming practices.

While attracting current and future generations to agriculture is a priority for all of the farming sector, Ms Moynihan says. “The challenge is not just meeting and being able to afford immediate labour requirements to get the job done, but identifying from where the next generation of farm owners, managers and agribusiness leaders will emerge,” she said.


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