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Sharemilkers’ and contract Milkers’ relationship between financial literacy and health and well-being.

Executive Summary

An exploratory study was completed that builds on prior research, in particular work that was completed on distress and burnout among NZ dairy farmers (Botha and White, 2013).  Also relevant to this project is a Kellogg project on financial literacy. (Wayne Berry, 2009).  My motivation in this research work is for it to be a catalyst for change in the financial literacy, and mental health spaces.

The objectives of this report are:

  1. To explore the relationship between financial literacy and health and wellbeing for sharemilkers.
  2. To highlight to the dairy industry that the health and wellbeing of sharemilkers is still a big issue; and that steps need to be taken to improve support mechanisms for those farmers.
  3. That for contract milkers especially financial literacy is weak and education opportunities need to be improved to increase their financial management abilities.
  4. To make recommendations to the industry about improving and promoting courses relevant to sharemilkers that will improve their financial literacy.

There is general acceptance that within the dairy industry the level of financial literacy of dairy farmers is low.  Emotional health and wellbeing has dropped to unacceptable levels where farmers are battling depression and contemplating suicide.  The emotional health and wellbeing of farmers is critical to the individuals and families involved, and also has a big impact on local communities and the wider New Zealand economy.

After discussions with Mark Paine (ex DairyNZ/Currently a Consultant) it was decided to focus in this report on sharemilkers. We agreed they are the group who are the most vulnerable now.  There are also farm owners, managers, immigrants and young people just starting out that face multiple challenges.  Many of the findings and discussion in this report will be relevant to people right across the dairy industry.

The method of completing this work was a series of semi-structured interviews with both rural professionals and sharemilkers.  Primarily the approach was qualitative.  A key part of the process was for the participants to complete a self-assessment test for both financial literacy and health and wellbeing.

The key findings from the rural professionals interviewed were:

  • That farm ownership as the end goal for sharemilkers has become even more challenging
  • By improving your financial literacy there will be many positive impacts on the farm business
  • That the health and wellbeing of sharemilkers has deteriorated over the last ten years due to a multitude of factors such as volatility of payout, relationship with farm owners, physical workload, staff issues, environmental compliance and public perception.

The key findings from the sharemilkers interviewed were:

  • That the most important support networks are family and friends.
  • That there was a strong correlation between high levels of financial literacy and positive health and wellbeing results.
  • That it is often a combination of factors which cause health and wellbeing issues.
  • That the relationship with farm owners is the leading issue in the study that causes health and wellbeing issues.

The key recommendations are:

  • For a pan-industry meeting to occur to bring the right people and organisations together to discuss the issues in regards to health and wellbeing, and put our case to government for further funding.
  • To increase the industry good levy so more funding is available for health and wellbeing.
  • An upskilling of rural professionals with the Oldenberg Burnout Inventory test and health and wellbeing training.
  • To instigate discussions with education providers to ensure there are courses available for contract milkers and managers to improve their financial literacy.

Virtual fencing: Leading the digital transformation of New Zealand pastoral farming.

Executive Summary

The first settlers were recognised for establishing farms and runs by breaking in land, building boundary fences, establishing key farm infrastructure, processing facilities and forging development of new distribution channels. Pastoral farming[1] rapidly became the mainstay of the New Zealand economy, creating the fabric of rural communities, provincial towns and provided the opportunity for urban citizens to flourish. The last 20 – 30 years has witnessed exponential change globally in land use, ownership, labour supply, technology and urbanisation. As the resulting global expansion puts pressure on natural resources measures of value, priorities and political points of view, the need for change is being realised and vocalised.

In this research there is an exploration of digital transformation forming the convergence of the physical and biological world, with the digital and virtual world in the context of pastoral farming and virtual fencing. Readers will be familiarised with the establishment and use of fences, the associated legislation, a foundation of livestock and pasture management and the art of livestock grazing to formulate the basis of fencing today. This holistic view provides the backdrop to understand the opportunity virtual fencing has for digitally transforming existing farming practices and assessment against industry priorities and political policies driven by voters, consumers and shareholders.

The research provides the following broad conclusions:

  • The uses of fences on pastoral farms are proven through history and fundamentally aren’t expected to change despite the introduction of virtual fencing technology.
  • Other than pest or wild animal control virtual fencing has the potential to be a foundation technology and catalyst for digital transformation of New Zealand pastoral farming.
  • Virtual fencing will resolve or enable the resolution of many of the items represented in the contextual overview by Hon. Damien O’Connor, the Grassroots Roundtable, the industry priorities and political policies.
  • Most importantly, to achieve digital transformation and therefore large-scale change will require strong leadership from the pastoral industry, technology innovation and regulatory changes from government to shift from the status quo.

The following smooth the way for adoption and to capitalise on the opportunities presented for virtual fencing:

  • Monitor New Zealand trials of virtual fencing technologies.
  • Review research relating to environmental exclusion zones and perform detailed cost benefit analysis.
  • Appoint industry lead working group/s to drive legislation reviews and changes.
  • Investment in digital transformation strategies for pastoral farming.

Disruption of New Zealand pastoral farming will be determined by voters and the industry stakeholders as masters of New Zealand’s destiny on the supply side or by international business and consumers on the demand side to reach new value. Leaders need to inspire pastoral farming beyond the status quo in order to capitalise on Fourth Industrial Revolution technologies, like virtual fencing, to improve national productivity and move the value web into the global frontier position across food and fibre production, processing and products.

[1] Pastoral farming is a form of agriculture aimed at producing livestock, rather than growing crops. Examples include dairy farming, raising beef cattle, and raising sheep for wool (Wikipedia, 2018).

Collaboration of the primary sectors to educate tomorrows consumers.

Executive Summary

Our world in 2018, is one where perception is reality and the new industry buzz word is consumer-centric.  In a world where primary industries need be obsessed with their consumer it begs the question, what is the customer’s perception of their food and its production?  Highlighted to me two years ago when hosting a group of children on farm, I was asked if my cows’ poo in the river.  Very confidentially I was able to take them to our pristinely planted, fully fenced wetland area and explain that there was absolutely no way our cows could get into or poo in any water.  That six year old’s perception was then dispelled and she got to see the truth, the reality.  It got me thinking that if a child from my local city had that perception, what did children understand in relation to their food and its production?  Where did that perception come from at this age?  How can primary food producers educate children in the truth so they become well informed consumers of tomorrow?  To be consumer-centric and future focused, primary sectors need to understand their future consumers, to be able to educate them so they are less likely to be influenced by mistruths and negative hype.

To start a survey was completed by 80 students (aged five and six) to gauge their understanding of food and where it comes from.  Questions were also asked on their lunch box items, who cooked their evening meal and what that usually contained.  The findings suggested that overall children knew most dairy, fruit and vegetable foods but meat was not overly known.  Low levels of understanding in where the foods came from particularly in the meat, protein, root vegetable and fruit food groups.  Mothers were generally the most influential in regards to cooking in the home and protein food was the most consumed dinner food.  Interestingly vegetable consumption at dinner overall was only 46% which is also what the health statistics for our children are nationwide.

The current health statistics for New Zealand’s five to nine year olds are sad reading with only 74% of children aged five to nine consuming the recommended daily amount of fruit and 45% the recommended intake of vegetables.  The other major concern is that 32% of these children are either overweight or obese.  Other statistics state that one in four New Zealand children are living without the basics and because of this there are many organisations that provide food into schools, most of these are not government funded but volunteer or corporate funded.  In a country where we produce some of the most nutritious food in the world why is this the case?  Why are some New Zealand children going to school hungry and not reaching their full academic potential?  As a nation we need all children to be educated, healthy functioning members of society.

From challenges come opportunities, the first is for primary sectors to come together and collaborate or cooperate to create a New Zealand food board, were primary sectors can all learn about each other’s primary industries to shape the New Zealand food story.   Education of tomorrow’s consumers will be a vital part in providing a future where our consumers are healthy, well educated, and food knowledgeable with that perception being reality.

Carbon neutral red meat brand.

Executive Summary

This paper examines whether there is demand for a carbon neutral attribute on a red meat brand offering.

The vision for how supply criteria of this product would need to be met is modelled on milk and wool supplier criteria from added value brands. The certification of the carbon neutral status of the product would be determined by an external auditor, in this case, carboNZero administered by EnviroMark.

In order to establish demand for this product attribute, Google Trends and BuzzSumo were searched for relevant interest levels from worldwide consumers. These searches showed that little interest existed in carbon neutral food, let alone red meat products. Consumers were more likely to link red meat to climate change in a negative association, than to be seeking out products that could be carbon neutral.

Domestic, New Zealand-based demand for this type of product offering was measured using a Minimum Viable Product Approach. This researcher used a website landing page complete with email address catcher, a Facebook business page and a series of targeted Facebook and Instagram advertisements that reached over 22,000 individuals measured the response and interest from kiwi consumers. The result of this testing generated some strong emails of interest, but broadly little traction or active interest.

Finally, a literature survey was used to assess the idea of creating and marketing a carbon neutral red meat product to send offshore. Pivotal to this research was a Beef + Lamb study of consumer preferences in California, USA and Shanghai, China. Further studies had looked at the concept of carbon labelling, with the assumption that this will be widespread in the medium term. This research highlighted that while a segment of consumers are interested in buying carbon neutral or low carbon food, they may not be interested enough to spend more to buy it, and also that on its own the carbon neutral attribute does not meet enough consumer needs to be an attractive offering and needs to be combined with other attributes that consumers are demanding.

So the recommendations are for market testing to continue to overseas and domestic markets to gauge the moment that consumers are looking for this type of product offering. New Zealand needs to make sure that our companies are adopting internationally recognised standards for determining carbon neutrality. As this awareness matures, it could quickly affect our access to overseas markets.

Is there a need for an information platform to collaborate primary sector events.

Executive Summary

This report synthesises communication, connection and collaboration into one solution-based idea, an information platform for events. I needed to identify if there was a need for an information platform.  Looking at the user/farmer not being able to attend the events from the inadequate lead in time, to missing events. For industry, understanding what the main hurdles were from their perspective, and could these be resolved with having their events in one place.  This would take the form of a centralised information platform for events for all Primary Industry.

The information platform is a tool that can be used as a lever for communication, connection and collaboration. The platform can be used as a meeting place for both the user (farmer/grower) and industry or business.  Creating connection from all industry, it can be a place to initiate cross-sector collaboration.  For the farmer/grower it can be a place where they can filter events in every region, in every industry at a time that suits them.  Barriers to communication diminish as the benefits of using technology in business are realised.

In chapter 1 is a literature review which focuses on the importance of events and the new ways businesses disseminate information through events. I wanted to look at what new event types that Primary Industry could use. There is a look at technology for collaboration in the form of the information platform, the definition of a platform, platform types and benefits.  Key learnings from using an information platform are the benefits of convenience – having information in one place, transparency, and engagement.  How collective impact for collaboration could be used as a strategy for industry. This strategy would result in better use of limited resources from joining with others, unify with ease – saving time and money.

Chapter 2 reports on the survey to the user (farmer/grower). This was conducted to understand their needs associated with events. The questions were divided into four areas: value, industry, events and technology. Under these areas respondents were asked the value of events from their perspective, how they find information on events currently, if they have missed events and how this has affected them, their thoughts on technology and what they wanted to use in the future. It was found that 81% of respondents miss out on events due to not knowing they were on.  To qualify this response, they were asked “what are some ways we could help you to prevent missing an event?” The top four themes were: Centralised event calendar, increase reminders, increased advertising and lead in time.

Detail of the findings from the survey to industry participants are in Chapter 3. The main findings of the survey were the having a limited budget for funding the event, then having a low attendance and deciding on a location that would suit their target audience.  This is a direct correlation to the farmer missing events.  If there is a limited budget for the event, then how will it be promoted? – if it’s not promoted how will the farmer know it’s on? Then through low attendance, the value of the event is diminished.  The key objective was to discover what the industry does now and if there a need for an information platform with centralised information.  Questions were asked about how the industry participant values events, their biggest hurdle, how they assess customer needs, current and future uses of technology.

The main recommendation is to explore an information platform in greater depth with industry leaders.  The benefits of strategically collaborating on a greater scale is to utilise resources with efficiency. Having audience in one place where both the user and industry can meet and have a place to exchange would save time and money.

Young people today.

Executive Summary

The conversation about “young people” in the New Zealand primary industries is one that we have all mulled over for a numerous years now. Of major concern to many agribusinesses is the transient nature of the young people they employ – it seems that holding on to a millennial staff member for more than five years is now rare, and this creates significant disruption for businesses, as well as hesitancy to invest in staff development.

Why do young people move on to new jobs so frequently? Is there something that we can do to minimise this? There comes no easy answer as the challenge of managing people – their perceptions, ambitions, cultures, family situations and career expectations – is a dynamic that is constantly changing, and perhaps changing faster than we can understand it. But opportunities do exist for agribusinesses who are seriously looking to better retain their millennial staff. We must begin by looking beyond the all-too-common stereotypes corresponding to this generation.

As New Zealand primary industries continue to grow and we enter a period where export value takes all priority over volume, the need for more highly skilled employees has never been more important to agri-sector support services. Millennials will soon make up the majority of the New Zealand workforce and their skills offer the key to the primary sector’s strategy being a success.

In order to rise up to the challenge of better retaining millennials in our agribusinesses, data collection on New Zealand millennials, specifically those involved in the rural industries, is required to understand their unique cultural differences and how they may affect their behaviours. Almost all of the data currently publicly available on “millennials” is North American.

A guide and tool kit for New Zealand agribusinesses needs to be produced that could detail practical methods to improve retention of young staff in agribusinesses. This guide could offer techniques on how to provide a stronger “people strategy” within their businesses; techniques to understand the strengths and needs of their staff; to cope with staff travel or other sabbaticals; and to ensure that a business’s training and orientation resources are adequate to minimise business disruption caused by employee’s extended leave or turnover. The guide could also offer methods that will help businesses meet millennial expectations of regular feedback and recognition, and methods to meet millennials’ high need for “empowerment”. Millennials crave opportunities to dedicate their skills and abilities to make an impact on the business they work for.

Relevant job flexibility options could be trialed in agribusinesses and showcased. Job flexibility and “temp” options will become even more valued by millennials as many are travelling overseas or pursuing other development opportunities more-often; they are beginning families later in their careers (and in many cases both millennial parents are working); and Baby Boomer parents are soon-to-be retiring and will soon require more care by their millennial children. More flexible work options need to be explored that better harness technology and correspond to all millennial (and agribusiness) needs. Crosssector human capital sharing viability could also be investigated further to find how it might add value to all primary industries.

We now have an opportunity to change the nature of work in New Zealand agribusinesses in a way that will promote millennial participation and engagement. If agribusinesses are not proactive in this space, we will lose these young people to other industries, and lose a great deal of potential for growth in our sector.

Potential threats to New Zealand deer pet food from international wild deer supplies.

Executive Summary

“The large-scale commercial farming of deer started in New Zealand, and New Zealand remains the world’s largest and most advanced deer farming industry” (DINZ, n.d.).

Recently, a significant increase in demand for pet food products has developed. This has been fuelled by American and European customers buying for pets which are now so highly regarded they are seen as members of the family. This is leading to greater importance being placed upon nutrition, taste and overall wellbeing of the animal, driving the customer to invest in high quality and novelty pet foods.

Venison has been counted as a novelty meat in the pet food ingredient classification. “Venison is seen as a natural, high-quality, lean snack in the pet industry which appeals not only for its nutritional values but because dog owners in particular think it’s something their animal’s ancestors might have eaten” (NZ Farm Life Media, 2016).

Mechanically Deboned Meat (MDM) is the product produced from the crushing and separating of bone from meat. As well as MDM, the organs from deer are able to be added to pet food products in small quantities, enabling labelling claims which indicate to customers that venison is present in the product but also enables a relatively high return per kilogram back to the New Zealand exporter who in turn can pass these benefits to the New Zealand farmer in the form of higher schedule prices for their livestock.

International pet food manufacturers have signalled however that they are dissatisfied with the cost per kilogram and are therefore searching the globe for alternative sources of venison. It appears that Spain and potentially Australia are able to meet a proportion of this demand, with more investigation required to determine if other nations are able to meet this demand.

What becomes apparent in this is that the disease status of the supplier country plays a significant part in market access. Freedom from Foot and Mouth Disease, Chronic Wasting Disease and BSE prevent the United States of America (US) and in some areas of the European Union (EU) from utilising their own deer population to meet this demand. The key suppliers of venison to the pet food market are at present left to Spain and New Zealand and some internal EU countries.

This poses a threat of substitution, rivalry in the industry and a new entrant threat to the New Zealand farmed-deer industry.

Building mental wellness in the rural sector.

Executive Summary

The topic of mental wellness has become more mainstream in New Zealand due to suicide rates continuing to climb and as more and more people suffer from stress, depression and anxiety in an ever evolving busy society. Unfortunately the rural sector is not immune. In fact the rural sector has a higher suicide rate per capita then the urban sector.

This report explores depression, anxiety and suicide to further understand how to recognize the signs and what to do when the signs appear in your life or others around you. How do we ensure that as a society we can live in a calm, relaxed state of mind even with the reality of a fast world filled with social media and a “keeping up with the Jones” attitude.

In New Zealand one in ten adults are on antidepressants, this is an eight-fold increase in total prescription numbers since 1998. 14.3% of New Zealand adults have been diagnosed with depression at some time in their lives and 6.1% with anxiety disorders. There are many reasons for these figures. What are we as New Zealanders doing to ensure these statistics do not continue to rise? Ask yourself: Are my daily routines sustainable and do I live in a way that will keep myself and others around me mentally well?

This report involved a literature review, thematic analysis and interviews. My focus was to find trends around what triggered mental wellness issues as well as what daily, weekly and monthly techniques people use to make their mind and body feel better.

The research uncovered the main influencing factors in our rural industry causing mental wellness issues. Main factors included isolation, long hours, not enough time off farm, lack of exercise, poor eating habits and lack of sleep.

As New Zealand’s suicide rate increases, now is the perfect time for us to be talking through these issues with an opportunity to make a real difference within our communities. Implementing simple daily mindfulness activities will help you to look after yourself and then others around you.

The research has been pulled mainly from New Zealand to provide a real sense of what is going on within rural New Zealand. This work will not only be vital for the Primary sector but also our urban neighbours as depression does not stop at the farm gate, it can easily find its way into your life at any age or stage.

There are four personal stories throughout this report. The aim here is to give the reader a chance to reflect on their own circumstances while reading about challenges others have been through. We all have a story, tell someone yours, it just might make all the difference to your mental wellbeing and possibly theirs.

Seasonal labour shortage in the kiwifruit sector.

Executive Summary

The kiwifruit sector has a serious labour shortage.  What is the extent of the shortages, why has the industry got to this problem and how can we address the shortages?

The aims for me in doing this project was to get an understanding of the labour problems facing the kiwifruit industry.  I wanted to see what was driving the labour shortages with an aim to consider how we could overcome the problems to create a desirable workplace and attract plentiful and reliable workforce.

New Zealand kiwifruit sector is currently producing 143 million trays, this is projected to reach 190m trays by 2027.  The sector is set to contribute $6 billion to New Zealand’s GDP by 2030.  The kiwifruit industry currently employs 15,000 FTE seasonal workers.  An additional 7,000 workers will be required if projected growth is to be achieved so the extent of the labour shortages is critical to the industry.

Kiwifruit together with all sectors, are struggling to employ sufficient workers.  In 2018 a labour shortage was declared in the Bay of Plenty with 1,200 vacancies and still 70% of the crop remaining to be picked.  The reasons why these shortages have come about are multiple.  The current labour market is very tight with a nine-year unemployment low of 4.5%, projected growth for the industry of 67m trays by 2027, the diversion of working holiday visa workers to other sectors and poor uptake of the local seasonal labour pool, this being due to poor reputation around pay and conditions.

As an industry, labour constraints are a real challenge in meeting future growth.  Many of these challenges are around the nature of seasonal work being inconsistent hours, physically demanding but other challenges are around compliance with employment law.  How the industry participants respond to the situation will impact on future growth.  The constrained labour market will require owners and employers reconnecting directly with employees.

Inconsistency of seasonal work is a significant deterrent to new employees; the industry could address this with centralised labour coordination to facilitate year-round employment and alternative employment arrangements and agreed hours. Employees are also looking for greater range of flexible working options with different shifts, staggered hours and job sharing.

How the industry engages with our employees, ensuring the pay is structured to provide certainty as well as incentives for efficient high performance.  Allowances should be considered to address travel waiting times, and availability allowance to acknowledge employees being on hold and available to work and not redirecting to other sectors.

Investment into accommodation and transport options for the seasonal workforce will contribute to attractiveness as well as motivation and performance.  Innovation is the way of the future and investment is needed now however it is not the immediate solution we are needing.

The attraction of all the seasonal workers available within New Zealand will not meet projected demands, the Recognised Seasonal Employer (RSE) scheme needs the full support of the industry and government, however employment standards, accommodation and transportation investments are required.

The growth of NZ Horticulture, including Kiwifruit, is a great economic success story for our country. People are or most important and scarce resource, coordinated, committed and compliant efforts are required by all.

The benefits of red-meat farmers opening the gate to agri-tourism.

Executive Summary

Tourism is now New Zealand’s biggest export earner which is rapidly growing, with close to five million tourists expected in 2023.  A large draw-card attracting tourists to New Zealand is the rolling hills, farming persona and pristine environment.  If New Zealand farmers can leverage off international tourists, and provide each of the five million a positive on farm experience, what are the benefits on farm, to the tourism and agriculture sectors, and beyond?

This research outlines the benefits that occur because of agritourism.  Firstly, the benefits that occur on farm are explored.  These include the benefits to the farming family, and also include positive outcomes from a tourist perspective.  Secondly, benefits are explored from the agricultural sector and the tourism sector.  Lastly, the benefits on a global scale are defined.

The most important benefit, and motivator, for a farmer venturing into to agritourism is the social aspect.  Farmers also benefit financially from utilising accommodation on farm and from the creation of employment.  Agritourism is also an opportunity for farmers to engage directly with their consumers and educate the urban population about food production.

This was also one of the main benefits and motivators from the tourist’s point of view; the ability to connect with food production and the environment. These trends are already visible in New Zealand with over a quarter of international tourists visiting a farm or orchard while on holiday here in 2016.  The rising number of Free and Independent Travellers are also creating a spread from tourist hot-spots to the regions.

Because of the spread in tourists, and interest in New Zealand’s farming culture, both the agricultural and tourism sectors benefit from agritourism.  Local food production provides regionalised distinctiveness to tourists, while simultaneously offering farming groups an opportunity to connect with their consumers and ‘tell their story’ of ethical, sustainable and clean green food production directly.

Globally, there are benefits of opening the farm-gate to agritourism by showcasing, from the source, exactly what farming in New Zealand entails.  Consumers will continue to ‘tell the story’ for New Zealand producers, which in turn, has the potential to reach an untapped community of consumers currently oblivious to our farming systems.