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Kellogg RT

Ka Tipu Ka Ora – A Whanganui Regenerative and Resilient Sustainable Food System.

Executive summary

Te Tiriti o Waitangi as a Founding document

The research report is committed to being responsive to Māori as Tangata Whenua and recognises the Tiriti o Waitangi as Aotearoa New Zealand’s founding document. The principles of Te Tiriti o Waitangi as articulated by the Waitangi Tribunal, and the New Zealand Courts provides a framework for how we are to fulfil our obligations under the Te Tiriti daily.

More recently as outlined by the Ministry of Health, in 2019, “The Hauora Report” 1articulated five principles for primary care that are applicable to not only the wider health care system, but also to any person, organisation or Crown Agency working with Māori in our communities.

These principles are articulated as:

  • Tino Rangatiratanga: The guarantee of tino rangatiratanga, which provides for Māori self-determination and mana Motuhake in the design, deliver and monitoring of community services.

  • Equity: The principle of equity, which requires the Crown to commit to achieving equitable outcomes for Māori. This is achieved though breaking down barriers and enabling equity of access to ensure quality of outcomes.

  • Active protection: The principle of active protection, which requires the Crown to act, to the fullest extent practicable to achieve equitable outcomes for Māori. This includes that it, its agents, and its Treaty partner are well informed on the extent and nature of both Māori wellbeing outcomes and efforts to achieve Māori wellbeing equity.

  • Options: The principle of options which requires the Crown to provide for and properly resource kaupapa Māori services such as Ka Tipu Ka Ora. Also, the Crown is obliged to ensure that all services are provided in a culturally appropriate manner that recognises and supports the expression of Te Ao Māori models of service delivery.

  • Partnership: The principle of Partnership which requires the Crown and Māori to work in partnership in the governance, design, delivery, and monitoring of community services. This includes enabling Māori to express tino rangatiratanga over participation in governance, design, delivery, and monitoring of community services.

For this research project and to understand the importance for Māori, it was important for me as the writer to enable the principles to guide my mahi.

It was also important to provide community level and grassroots level insights and intelligence to enable communities to partner on the development of services to create positive impacts for people throughout the community.

These services should focus on addressing equity of access to services in a manner that is consistent with tino rangatiratanga, active protection in the co-design, provide options to ensure culturally appropriate services and developed through a solutions focussed community led partnership approach with the Treaty always at the forefront.

Executive Summary

Everyone should have access to affordable, healthy food. However, across Aotearoa New Zealand a rapidly growing number of people are experiencing severe food insecurity – which means that they don’t know where their next meal is coming from, or if it will be nutritious enough to lead a healthy, active life.

This research report will focus on answering the question of; How everyone, through a kaupapa Māori lens can move toward Sustainable Food Systems which are regenerative and resilient; prioritise locally grown and affordable kai; and uphold mātauranga (indigenous knowledge), kaitiakitanga (guardianship) and rangatiratanga (leadership) within this system.

This research also aims to help develop and establish sustainable local food systems, so all individuals and whānau have access to good food to improve community health and wellbeing; where “sustainable local food system” is a collaborative network that integrates sustainable food production, processing, distribution, consumption, and waste management to enhance the environmental, economic, and social health of a place, ensuring food security and nutrition.

This research supports the vision that everyone in Aotearoa New Zealand should be able to access good food at all times; where “good food” is food and beverages that are affordable, nourishing, appetising, sustainable, locally produced and culturally appropriate.

Key Findings

  • Kai (food) is all about whakapapa (genealogy). It is the great connector that joins us to our tupuna (ancestors), our mokopuna (descendants), our whānau (families), te taiao (environment), and each other. Through kai we are connected to the plants, the animals, the waterways, the oceans, the forests, and the atua (deities). The recipes of our ancestors get pulled out in modern kitchens, linking us across time and bringing us together around the table to love and learn.

  • Kai is central to Māori concepts of wellness and for generations it has brought whānau, hapū and iwi together. Kai is medicinal. When it is nutritionally dense and healthy, it feeds and heals our body and mind. When it is grown by our people, in our place, it feeds and heals our spirit. When it is prepared and eaten together, full of love, it feeds and heals our families and communities.

  • Kai is the glue that holds so many of our communities together, and it is the sustenance that keeps our people well in body, mind, and spirit. However, for most people today our food system is not medicinal. Our current food system negatively affects our physical wellbeing, mental health, and community resilience. At the same time, the food system is causing environmental damage and degrading mana atua (spiritual integrity).

  • Māori have solutions to regenerative and resilient food systems based on Mātauranga Māori.

  • Many suburbs in Whanganui are food swamps and/or food deserts. This means residents and their population have good access to bad food and bad access to good food.

  • Individuals and whānau in Whanganui are suffering from diet-related chronic diseases.

  • One in five deaths can be associated with a bad diet. The leading diseases associated with diet-related deaths in New Zealand are coronary heart disease, stroke, colon, and rectum cancer.

  • Those who live with diet-related diseases are more likely to experience poorer mental, social, and educational outcomes.

  • Community, non-governmental, and non-profit organisations deliver several initiatives tackling the food system, particularly around urban production, and food environments. However, many of these initiatives face obstacles including policy constraints, funding constraints and lack of influence or access to decision-makers.

  • There are also significant and complex underlying systemic issues that cannot be addressed by the community alone e.g., loss of productive land, unsustainable business practices, waste reduction, regulations that can lead to commercial interests favoured over community wellbeing, fragmented approaches to addressing the food system e.g., multiple stakeholders with shared interests working independently.

  • The COVID-19 pandemic has seen growing discussion around the critical resource of food. And while New Zealand has an abundance of food produced from its land and seas, like many nations it still struggles with food security within its communities. The lockdown period had highlighted the need for resilient local food systems that can deliver food security and food sovereignty back to our communities.

Supporting older farmers to adapt to the rapidly changing food and fibre sector.

Executive summary

To this day New Zealand’s food and fibre sector continues to lead economic recovery through the Covid-19 response. This sector thrives on challenges and makes the most of opportunities to further develop.

With an increase in success, there is also an increase in challenges. Some of these challenges are supply chain disruptions, rising costs of fuel and fertiliser, workforce challenges, floods, drought, and the increase in new regulations.

This report aims to better understand how the food and fibre sector can better support older farmers. I aim to better understand the changes and challenges older farmers are currently facing.

To produce recommendations, this report will further research into adopting change, farmer mindset, reverse mentoring, learning preferences, key drivers, and challenges they face as older farmers.

Older farmers enjoy the farming lifestyle and make their systems work for them. As farmers age, they start to show less desire and ability to be as productive and innovative as they were at mid-age. They focus on looking after their health by adopting new smarter ways of working.

Older farmers are feeling frustrated and confused about the new policy that is being brought out with little consultation and feedback opportunities.

From my findings, there is a great opportunity to further educate older farmers through a reverse mentoring model. This system provides an opportunity for both older farmers and younger farmers to communicate through generations.

This system will increase the sharing of perspectives and skill sets. And it can also promote more innovative and act as a cost-effective professional development tool that capitalizes on building bridges between generations.

Recommendations:

  • Establish a reverse mentoring system where younger farmers help educate older farmers on the usage of technology or other methods on farm.
    This method will help to increase the level of communication between different generations to help increase the level of change.
    There is great potential for the food and fibre sector to adopt this method into businesses to create more success.

  • Industry support organisations should develop more one-on-one and small-group support workshops. These workshops need to be consistent, as education is never a once-off. Little to no charge for this workshop as older farmers rarely invest in their education. Learning methods should be targeted at the audience.

  • Encourage older farmers to participate in a community catchment group. This is a great chance for older farmers to share knowledge and learn from others. Community catchment groups are local, low cost and farmer led.

  • Close the gap between farmers and the government. Farmers need more trust from the government to implement change that is driven by the government. The government needs to be clearer about its intentions for policy and put more time and effort into the consultation process.
    I recommend that with the consultation process, there should be more time spent going out to farmers in their community.
    This will show more effort from the government and simply give the farmers the best opportunity to attend the consultation process and provide feedback.

  • Improve connectivity of cell phone coverage and faster internet for rural communities. Central government should provide more resources to help achieve this, as poor connectivity to this infrastructure is a barrier to farmers’ uptake of technology and change.

Farming Lessons from Te Ao Māori.

Executive summary

The aim of this report is to provide an understanding of te ao Māori (the Māori world view) and mātauranga Māori (Māori knowledge) in an agricultural context and to explore how some of the concepts within this area can be utilised in a way that benefits both individual farms and the wider industry.

The methodology used to do so includes a literature review on these two areas as well as the key trends and challenges in the agricultural industry.

This is followed by semi-structured interviews with four farming organisations implementing some or all of the concepts reviewed. The interviews explored their core drivers and aims and the benefits and challenges of in incorporating these concepts and practices. Thematic analysis of the responses from interviewees was utilised to assess the qualitative data.

Key Findings:

Utilisation of the “quadruple bottom line” approach (environmental stewardship, social responsibility, intergenerational wealth creation, and cultural revitalisation), taking an intergenerational perspective, Kaitiakitanga (stewardship) and the relationship between whakapapa (genealogy) and whenua (land) are key areas of te ao Māori and mātauranga Māori where great value for agriculture can be achieved.

These areas have particular importance and relevance when used as potential solutions for the key challenges and trends in Aotearoa’s agricultural sector. The most significant of these are agriculture’s environmental impact and the rise of the conscious consumer as well as export market volatility and uncertainty in the current global context.

Within an agricultural context there are numerous practices, knowledge, concepts, and approaches are present in mātauranga Māori and te ao Māori that have significant potential value. There is also a clear alignment as they are all focused on the natural world and society which are the fundamental components of both te ao Māori and agriculture.

The most commonly incorporated aspects of mātauranga Māori were the use of kaupapa (principles and ideas which act as a base or foundation for action) to guide decision making, embracing a wider view of success and a holistic view of farming practices and the importance placed on relationships and connections through whanaungatanga (relationship, kinship, sense of family connection).

Recommendations:

  • Have patience and persistence in understanding the perspectives of Mana Whenua at all levels and involve them in governance and decision-making processes to ensure the best long-term outcomes are achieved on a consistent basis for communities and the environment.

  • Creation of think tanks or collaborative projects focused on the agricultural sector with individuals from diverse backgrounds encouraging open thinking and interpretation of ideas.

  • Encourage the uptake of new and novel approaches within farming and agricultural businesses as well as experimentation and trialling both on-farm and within business models.

  • Cultivate a culture in agriculture of combined and cross-cultural thought processes where utilising western technological advancements within te ao Māori frameworks is celebrated and encouraged.

  • Facilitate the development of kaupapa for farming businesses utilising te ao Māori to embrace wider definitions of success.

  • Create a platform for meaningful and genuine engagement between iwi, hapū and industry to take a collaborative approach to the generation of solutions for the multitude of wicked problems facing both the agricultural industry and the communities it is present in.

Farm System Influence on Dairy Workforce Retention.

Executive summary

There is significant difficulty faced by dairy farmers and the NZ dairy sector, particularly when attracting and retaining quality employees (Rolfe, 2017). The challenge of retaining talent and passion on NZ dairy farms is familiar for many.

A surveyed 49% of farm assistants on NZ dairy farms leave their employment in less than one year from starting (Federated Farmers & Rabobank, 2022). This is not sustainable for the dairy sector moving forward due to the associated financial burden and wellbeing concerns generated from high turnover on NZ dairy farms.

There is an abundance of literature and findings recognising the “soft skills” and human resources (“HR”) that can be altered to improve job satisfaction and retention in the NZ dairy sector. However, there is limited progress made on reducing overall turnover in the dairy sector over the last 10 years.

There is a gap in the literature, for the NZ dairy sector, among other sectors, considering how aspects of a farm system may influence employee job satisfaction and retention, why this may be the case and how valid solutions can be implemented.

This research is important given the current unsustainable turnover in the NZ dairy sector and the lack of progress seen at sector level in improving turnover statistics over the past decade.

To answer these research questions qualitative data was collected via a review of literature and 13 semi structured interviews. Each interviewee was unique as they either had a different role or set of responsibilities.

They were from different nationalities or backgrounds, had a wide range of farming experiences and were working on very different farm systems to one-another. As a farm systems consultant I have also been able to draw on my experience working with a range of farm businesses to inform the development of research questions as well as associated research and solutions.

A thematic analysis was then conducted between the literature review and the interview findings. Common and contrasting themes were evaluated and conclusions were made from these findings. Some of the findings included:

  • Various difficulties within a system build on one another having more of a multiplied, rather than summative, influence on job satisfaction and retention of NZ dairy farm employees.

  • Actual tasks required to be completed are not necessarily what influences an employee’s job satisfaction and retention. There may be more effective improvements in job satisfaction and retention on NZ dairy farms if focusing on the internal task efficiencies, performance factors related to these tasks and ensuring the purpose of tasks are well understood by employees to then be able to include them in successive decision making.

  • Understanding an individual’s strengths and passions before employing, or at the early stage of employment, will guide specific responsibilities best to provide this individual to improve their job satisfaction and chance of staying within the farm team.


Recommendations were then formed from these conclusions for individual farmers and the NZ dairy sector and are as follows:

For Farmers:

  • Consider examining each part of your specific farm system with all team members separately to gain understanding of the potential.

  • Investigate job preferences of your farm team members and specifically any solutions they may have to the difficulties found within the system.

  • Examine each individual’s strengths and passions before employing to guide their most suitable responsibilities and improve their job satisfaction and retention in your farm team.

  • Commit to explaining the purpose (the “why”) of all aspects of the farm system and policies implemented on farm to employees to improve their engagement and satisfaction in the business and improve the chance of retaining them in your business.

  • Complete and understand your specific farm’s total investment return and cash flow implications of any proposed change in your farm system.

For the NZ dairy sector:

  • Showcase the “top performing farmers” as case studies online to inform the rest of the sector what system adjustments have helped, how they have been implemented and how they are continuously managed to improve staff satisfaction and retention.

  • Commit to investigating more independent farm case studies to uncover further solutions and connections between farm systems and employee retention.

  • Investigate the investment return and other benefits of various technologies discussed in this research along with other technologies or procedures available.

  • Develop further farmer decision-support tools to be created to evaluate the economics of adopting new technologies on farms and allow for comparison with other technologies.

Forests or Fleece.

Executive summary

The North Island’s marginal country is undergoing a change in land use at a pace it hasn’t seen since the wool boom of the 1950s. This is being driven in large part by afforestation with exotic trees, primarily Pinus radiata being planted for traditional timber harvest as well as for carbon farming purposes.

This report seeks to understand the reasoning behind, and effects of, this change from an economic, environmental, and cultural perspective, and to look out 30 years to establish longer term viability of traditional farming, rotational and permanent forestry and Manuka plantation for the purpose of honey production and carbon sequestration.

Key Findings

  • Afforestation of marginal land provides significant economic advantage over traditional grazing in all its forms. The benefit varies from 346% (Manuka) to 974% (Permanent forestry) of the average profit from hard hill country over the last decade. This disparity is likely to increase in the next 30 years as carbon prices rise.
  • Afforestation is not going to slow down in the medium term with projections suggesting another 1.5million hectares of planting will be required to achieve New Zealand’s carbon targets.
  • Currently the cost of establishing native forests is prohibitive and the carbon benefits are not competitive with exotic forests, primarily radiata. As such radiata will continue to be the tree of choice until substantial subsidies are provided or changes are made to the legislation.
  • All afforestation options are superior in their environmental impact if managed properly. Manuka plantation is the most environmentally friendly option followed by permanent forestry, although this does have long-term risks if radiata is used.
  • Both permanent forestry and Manuka plantation have negative effects on labour FTE’s in rural communities compared to grazing on marginal land. Rotational forestry is significantly higher in both FTE and value chain than grazing but the location of these benefits is unknown, they may not be truly beneficial to the local community. This problem will only increase over the next 30 years as more marginal land is converted into permanent forest.
  • Maoridom are generally pro exotic forestry establishment while being aware of the environmental risk and native forestry being the best option for them. This is due to historical marginalisation leaving Māori with significant areas of landholding where afforestation is the only profitable option.

Recommendations

  • Central and local government need to support the establishment of native forests with the benefits that they entail. Significant subsidies need to be put in place to incentivise this form of afforestation.
  • Government support of permanent exotic forestry via subsidies and entry into the ETS needs to be limited to class 6 & 7 land only, and proper site analysis undertaken to ensure soil types and contour are suitable for this purpose to slow the change of productive land from pasture into permanent forests.
  • MPI should increase the threshold for land that is registerable under the MPI lookup table to a minimum of 200ha to streamline the process of registering land for entry into the Emissions Trading Scheme and the allocating of subsequent units, and minimise the cost for landowners looking to establish forestry on class 6 & 7 land.
  • Landowners on marginal land need to isolate and establish accurate profitability information regarding their class 6 & 7 land and confirm a baseline, then environmental and cultural considerations need to be carried out by the landowner. This will help in establishing the best option for them.
  • Investigation into potential afforestation options needs to occur on a case-by-case basis via communication with commercial rotational, permanent and Manuka forestry providers. Afforestation of marginal country is in most cases the most sensible outcome in any of its current forms. Landowners need to establish what options are available in their circumstance and establish a cost/benefit model for each of these.

Investment Management meets Agriculture.

Emily Walker_Investment management Decision making_Kellogg report image
Emily Walker_Investment management Decision making_Kellogg report image

Executive summary

The traditional model of primary production in New Zealand is facing significant challenges from internal and external forces, which are only expected to increase over the coming years. These include water security and quality, climate change, carbon emissions, labour availability, market forces and biodiversity. To continue in business and remain sustainable for future generations, transformational change will be needed requiring sector wide strategic and capital investment programmes.

This research report attempts to provide specific support for agri-business leaders. It focuses on answering the question: Does an evidence-based approach to decision making improve outcomes for small agri-businesses in New Zealand?

Research was undertaken using an inductive approach to thematic analysis, allowing the data to determine the themes, rather than be driven by the researcher’s theoretical interest or specific questions (Braun & Clarke, 2006). The data corpus was constructed through a literature review and semi structured interviews. The outcome of the analysis was a thematic map, showing two themes: the decision maker and decision framework.

Key Findings

  • There is significant opportunity to support agri-businesses through a decision-making approach that uses evidence to consider the environmental, social, cultural, and economic impacts of their actions.

Decision Maker

  • Whilst maintaining an understanding of the current operating environment can be challenging (for decision makers), it allows business leaders to be agile and take advantage of opportunity early. The key is in knowing what topics you must be informed of, then focusing efforts on those domains.

  • Decisions must be aligned to an organisation’s purpose, else there is potential for mismatched decision making, detracting from the business’s momentum, diluting leader and team focus, and ultimately, diminishing the purpose the business is working to achieve.

  • Decision makers need to be more ambitious. The interviews found that many organisations were simply ‘playing not to lose, rather than to win.’ The case studies revealed that this could lead to the continual investment in tried and tested solutions.

Decision Framework

  • Robust analysis of the problem ensures the issue itself is being solved, rather than only managing symptoms. This avoids unintended consequences and rework, increasing the likelihood of developing an enduring solution.

  • Decision-making process matters six times more than analysis to producing impactful decisions (Health & Health, 2013). However, process should be flexible, allowing for the idiosyncrasies of individual agri-businesses, and is improved through collaboration.

  • In addition, the inclusion of testing into the decision-making process reduces risk through proof of concept, testing assumptions and bias, checking decision makers haven’t inadvertently jumped to a solution, and provides awareness of different perspectives to enable continual improvement.

  • Analysis of two options rather than just one also improves likelihood of success by a factor of six (Health & Health, 2013). Widening the set of options evaluated improves discussion and debate, increasing the probability of strategic decision making occurring.


Implementation

  • Evolutionary implementation, the compounding effects of numerous small changes, has a higher probability of creating successful, enduring change.

  • Development of a strategic plan to support implementation of the investment across the business can support accountability for action, prepare for opportunity, understand risk, measure results, and build credibility with stakeholders.

Recommendations

As a result of the findings and discussion presented in this report, the following recommendations are made to the leaders of small agri-businesses:

  • Develop and maintain an understanding of the operating environment in which the reader is acting.

  • Align all decisions with the business’s purpose and principles/values.

  • Engage a multi-skilled advisory board to collaborate on and support decision making. This board may include professional advisors, accountant, banker, lawyer, and an independent member.

  • Utilise structured processes and evidence to support decision making.

  • Prepare a strategic plan to create accountability for action, prepare for opportunity, understand risk, measure results, and build credibility with stakeholders.

Red meat traceability with blockchain.

William Halliday Kelogg report image
William Halliday Kelogg report image

Executive summary

New Zealand’s agricultural industry has a reputation for being at the forefront of technological innovation.

Challenges such as nutrient deficient soils and distance to market have been met with novel fertilisers and refrigerated shipping. World renowned animal welfare standards and freedom from significant agricultural pests and diseases give our farmers significant advantages compared to their overseas counterparts.

It may be a surprise to learn, therefore, that the means of certifying products and providing assurance to global markets continues to rely on a paper-based system.

Importers must trust the paperwork provided by the exporter. Exporters must trust the paperwork provided by the producer. Producers must trust the paperwork provided by the supplier, and so on. This “one up, one down” traceability is becoming less acceptable to the global market, especially when it comes to food safety and claims of provenance.

A potential solution is to adopt blockchain technology, where a decentralised ledger allows supply-chain-wide visibility of product flows and immutable proof of claims.

While blockchain was developed for, and is still chiefly used in, the field of cryptocurrencies, it has found utility in other sectors including finance and supply chain management. The global diamond trade demands absolute proof of provenance to avoid stones mined using forced labour or where proceeds fund violence – it has found a solution to this using blockchain.

Blockchain has become a technological buzzword which has garnered plenty of attention, confusion, and misunderstanding. The purpose of this research report is to understand what a blockchain is, what it can (and cannot) do, what barriers exist to its adoption in red meat traceability, and what opportunities it presents.

Analysis of the literature and interviews with industry stakeholders leads to the general conclusion that while blockchain has some significant advantages over traditional, centralised databases, there is doubt as its maturity as a technology.

This represents significant risk to those interested in adopting it, and, coupled with the cost of replacing or upgrading systems across the supply chain, it is widely held that existing systems are fit for purpose and to make a shift to blockchain would represent an unnecessary disruption to the industry.

That said, there are potential drivers for blockchain adoption to consider. Government regulations regarding food safety and animal traceability are updated continually and can require the adoption of new technologies (the NAIT Act 2012 for example).

Import requirements are subject to change, especially in the face of food fraud and the global spread of animal and human diseases. Then there is the industry itself, which has an impressive track record of adopting and adapting technologies for the improvement of sustainability and productivity.

The convergence of blockchain with technologies such as the Internet of Things and machine learning could change the way farmers go about their business altogether.

It is therefore recommended that stakeholders in the New Zealand red meat sector keep an open mind to the possibility of adopting blockchain technology and be prepared to invest in further technological innovation as more demands are placed on existing systems. Being “blockchain-ready” will undoubtedly leave the sector better prepared for the future of global red-meat trade.

How does a dwindling mohair industry in New Zealand learn to play the infinite game?

Susie Woodward Kellogg report image
Susie Woodward Kellogg report image

Executive summary

With conscious consumerism (Nguyen, 2020) on the rise, natural fibres are making a comeback. The rise in awareness of the damage which is caused by synthetic materials on the environment has led to the growth of natural materials, including growth of natural fibres like mohair (Data Bridge Market Research, n.d.).

Mohair fibre, produced by the Angora goat is one of those natural luxury fibres that has seen a resurgence in popularity in recent years.

Unfortunately, the New Zealand Mohair Industry has been rapidly declining along with the world production of mohair fibre. New Zealand mohair production peaked in the late 1980’s, producing up to 0.6 million kilograms of greasy mohair (2.4% of world production), dropping to current levels of 0.03 million kilograms or just under 1% of world mohair production (Hunter, 2020).

This decline in production is not the basis for this report, but instead the reason for finding out how the industry can be helped to stay alive and relevant, taking advantage of the increase in demand for more natural fibres over the use of synthetic materials.

The New Zealand mohair industry is not in a place to capitalise on the global trend of increasing use of natural fibres in its current state. The industry has seen an ageing base to its producer group form. The lack of new entrants coming into the industry has meant it has struggled to remain relevant and viable.

Despite the global mohair production decline, the demand has remained very strong, especially for top-end quality fibre and prices for mohair have remained high as demand continues to exceed supply (J. Woodward, personal communication, February 10, 2022).

With this global trend playing in favour of the mohair industry, the purpose of this research project was to identify what the New Zealand Mohair Industry organisation could do to help the industry stay relevant and thriving long into the future.

Research was conducted to explore what makes other organisations and businesses successful. Interviews were conducted with leading innovators to identify the reasons for their success and how the learnings could be adapted to help the New Zealand Mohair Industry.

For the New Zealand Mohair producer’s organisation to be successful, there were several key factors identified. They included the following:

  • Leadership – having the right person(s) guiding the organisation with a meaningful vision and empowering its members to create change.
  • Innovation – finding solutions to existing problems by challenging the status quo.
  • Resilience – learning how to adapt to change and analysing past failures to be stronger in the future.
  • Collaboration – successful businesses work effectively with others both inside and outside their organisations to develop their ideas or processes.

Another key element that was identified was having the right people on board, who demonstrated courageous leadership, adopted an infinite mindset, who were able to share their vision with others and whose behaviours reflect their values.

Together, with these key factors, several recommendations were made to assist the New Zealand Mohair Industry going forward.

The recommendations from this project include:

  • Utilise the findings from the Mohair New Zealand Incorporated SWOT analysis conducted in 2018 to help guide the strategy for the organisation going forward.
  • Adopt an infinite mindset; a mindset where the members of the Mohair New Zealand Incorporated organisation challenge the status quo, looking beyond the present to remain relevant long into the future. This will improve the levels of trust, cooperation, and innovation among the members of the mohair producer’s organisation and its leaders.
  • Undertake a step change and guide Mohair New Zealand Incorporated members through that process by following John Kotter’s (2012) proven eight-step process for leading change. The three phases of the step change are as follows:

– Phase 1: Create a Climate for Change
– Phase 2: Engage and Enable the Organisation
– Phase 3: Implement and Sustain the Change

By adopting the above recommendations, the New Zealand Mohair Industry can successfully implement a step change and help turn themselves from a declining industry, into something that’s innovative and relevant long into the future.

Achieving successful family farm succession in the New Zealand dairy industry.

Ross Neal Kellogg Succession planning in the dairy industry_eport image
Ross Neal Kellogg Succession planning in the dairy industry_eport image

Executive summary

Family farm businesses are the backbone of the New Zealand dairy industry, with many farms being handed down generation after generation to be retained under family ownership today.

The dairy farming landscape, however, is changing. Dairy businesses are increasing in size, scale, and value.

There are also many challenges looming in the sector as the country navigates towards being more environmentally sustainable, and the consumer demands more sustainably produced food. These challenges will largely need to be handled by the next generation of farmers. To ensure family farm businesses, and the New Zealand dairy industry, can continue to thrive it is important that succession is done well.

The aim of this report is to understand the key challenges that farming families face when trying to navigate through the succession process and identify solutions to these challenges.

The methodology includes a literature review, followed by semi structured interviews to gain insights from farmers and experts on their experiences. Interview responses were thematically analysed with key themes then critically analysed to gather findings.

Key challenges to succession were found to be poor communication, incorrect legal structure, a reluctance from farmers to start the process, and a lack of clarity.

Solutions to these challenges were identified as improving family communication, getting the legal structure right, reading literature to improve understanding, putting a plan in place, and engaging the help of an independent facilitator.

Recommendations for farming families:

  • Start discussions early regarding succession with your children and trusted advisors. Know that the succession process takes time. Early discussions help establish clarity for parents on potential successors, and clarity for children on how they may organise their lives.

  • Plan for succession. Parents to establish what the desired outcome for succession is. It is important that this plan comes from the parents. It is also important that this is a formal and written plan and is followed up on regularly.

  • Look to establish good family communication habits from a young age. For families who struggle to communicate effectively, all family members should be encouraged to read two books which provide great insight into effective family communication. These books are ‘The Secrets of Happy Families’ by Bruce Feiler and ‘The 7 Habits of Highly Effective Families: Building a Beautiful Family Culture in a Turbulent World’ by Stephen Covey.

  • Establish a company/trust structure:

– When first setting up the farming business with a solicitor or accountant, the company/trust structure should be put in place. This should be right at the beginning of the farming journey and well before succession is thought of.

– If the farming business is not currently in a company/trust structure it is important that this structure is set up and assets are transferred to this structure before proceeding with succession.

  • Engage with an experienced succession facilitator who is an expert in their field. The facilitator will help to start the process, lead the process and, along with a support team of trusted advisors, help the family to achieve success. A facilitator can also help to improve family communication and the formation of a written succession plan. Funding is available through MBIE and your Regional Business Partner under the Management Capability Development Fund.

  • Read the 2nd Edition of ‘Keeping Farming in the Family’ written by Ian Blackman. This is a well-thought-out book that has been specifically written to help New Zealand farming families through the succession process.

Recommendations for the dairy industry:

  • Industry bodies to engage with accountants and solicitors who deal with farming families to help them better understand:

– The implications of setting up partnership and trust structures for family farming businesses and the subsequent challenges that arise with these structures when the succession process begins.

– The importance of the company/trust structure for family farm succession and the all-around benefits that this structure provides to family farm businesses.

  • Industry bodies to create awareness about independent facilitators. Specifically:

– That there is a number of experienced succession facilitators available.

– There are significant benefits that independent facilitators can provide to make the succession process easier.

– That there is funding available through MBIE to help cover the cost of this service.

Escaping low value supply chains.

Richard Sim_Escaping Low Value Supply Chains_ellogg report image
Richard Sim_Escaping Low Value Supply Chains_ellogg report image

Executive summary

New Zealand farmers are being asked to change how they operate their farming businesses. The sectors that are more likely to thrive in this new world are those which not only adapt to change but, become the drivers of change.

The Fit for a Better World roadmap offers a vision where production-oriented goals of the past will be realigned with core values shared by farmers, society and our overseas consumers.

This vision can be a catalyst for the creation of end-to-end value chains to take food and fibre products to markets in New Zealand and around the world. While the ‘volume to value’ mantra is not new, it is not clear how, or who will build these value chains for the arable industry.

Value chains differ from supply chains in that the product or service generates value as it flows between the participants to the final buyer.

This report aims to offer insights into how the utilisation of value chains by arable growers will enable them to create and capture more value from their products.

The research methodology was comprised of a literature review, semi-formal interviews and case studies across the entire supply chain to gain insights into their experiences.

Key Findings

Growers are trapped in low value supply chains. As a grower, if you cannot identify the other participants in the supply chain through to the end consumer, then it is likely you do not hold significant power. As a result, you will be a price taker.

Value is created by consumers. Therefore, the shift for growers from competing on price to optimising customer experience requires the alignment of the values of participants in the supply chain to those of the consumer.

Value can be created via innovation or branding. Irrespective of the pathway taken, growers will need to contribute time and capital to the co-creation of value chains for future food products.

Recommendations

This report proposes that for the arable sector to thrive, a mindset change from the good of the individual to the collective is required. This new mindset will foster the co-creation of value chains for new food products that create and capture greater value for all growers.

Specific recommendations include:

Define arable sector values. The shift from operational excellence and competing on price requires a new business strategy. The transition to customer intimacy requires the alignment of values of the participants of the supply chain to those of the consumer. The Fit for a Better World vision and the principles of Te Taiao could offer a worldview and a starting point for an industry discussion.

Foster a culture of innovation and value-add at the sector level. Develop a pathway to value-add through encouraging a ‘prototype – iterate – test’ culture in a start-up environment for future food products. This could be funded by the current levy body.

Take collective ownership of value chains. To disrupt existing supply chains a new grower-led investment model is proposed. This will overcome some of the current barriers to investing in value-add beyond the farm gate.