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Dairy Diversification into Raw and Pasteurised Farm Milk Sales

Executive summary

This report, developed as part of the Kellogg Rural Leadership Programme, investigates the feasibility and future potential for New Zealand dairy farmers to diversify into raw and pasteurized milk sales directly from the farm gate. In an era marked by volatile international dairy markets, increased regulatory pressures, environmental accountability, and shifting consumer expectations, the traditional reliance on milk payouts alone is becoming increasingly unsustainable for many farmers. As such, exploring alternative income streams is both timely and necessary.

The study employs a mixed-methods approach, including in-depth interviews with seven onfarm milk producers and industry experts, a consumer survey, and a comprehensive literature review. It aims to provide a practical, evidence-based overview of how direct-to-consumer milk sales can supplement farm income, enhance resilience, and support a values-driven food system.

Key findings reveal that while on-farm milk sales are still a niche sector in New Zealand, there is growing consumer appetite for local, traceable, minimally processed dairy products. Consumers purchasing directly from farms are motivated by a combination of taste, health perceptions, sustainability concerns, and a desire to support local agriculture. Products like raw milk and A2 pasteurized milk in reusable packaging appeal especially to healthconscious families and environmentally aware buyers. Many farmers report strong brand loyalty, repeat purchasing, and willingness among consumers to pay a premium for these products.

However, the report identifies significant barriers to entry, especially regarding compliance with New Zealand’s regulatory frameworks. The 2015 Raw Milk for Sale to Consumers Regulations and the Animal Products Act impose substantial financial and administrative burdens on small-scale producers. Farmers selling raw milk must register under a Regulated Control Scheme (RCS), undertake rigorous microbial testing, and restrict sales to direct, nonretail channels. For those processing pasteurized milk on-farm, compliance involves establishing a Risk Management Programme (RMP), meeting stringent facility design and hygiene requirements, and undergoing ongoing audits.

Operational demands are also considerable. Farmers must invest in fit-for-purpose infrastructure, including pasteurizers, bottling lines, cold storage, and delivery vehicles. They must also manage customer relationships, logistics, marketing, and compliance records— often requiring a shift in mindset from solely farming to running a multi-faceted small business. Many interviewees emphasized that these ventures are not “side hustles” but second full-time jobs requiring dedication, adaptability, and business acumen.

Through case studies, the report highlights a range of successful on-farm milk ventures, from Village Milk’s raw milk vending model to Canterbury’s Choice pasteurized milk delivery service, and Happy Cow Milk’s modular, tech-enabled processing concept. These case studies illustrate that success in this space depends on innovation, regulatory navigation, and strong consumer engagement. Farmers who succeed often possess an entrepreneurial mindset, a deep connection to their customer base, and the ability to differentiate their product through ethical branding and storytelling.

The study concludes that on-farm milk sales are financially viable and socially valuable, but only for farmers who can access capital, manage compliance, and build consumer trust. For broader adoption, structural support is needed. This includes more scalable and riskproportionate regulation, access to appropriate small-scale processing equipment, shared infrastructure models, and extension services or mentorship networks to reduce the steep learning curve.

Recommendations are grouped into three categories:

  1. For farmers: Start with feasibility assessments and pilot models; seek peer mentorship; invest in fit-for-purpose infrastructure; and plan for intensive customer engagement.
  2. For industry and policymakers: Introduce more flexible compliance models for small operators; support innovation through funding or co-design; and develop regional networks to share knowledge and infrastructure.
  3. For future research: Investigate modular processing solutions, test consumer willingness-to-pay at scale, and assess the long-term sustainability and environmental impacts of on-farm milk ventures.

Ultimately, on-farm milk diversification is not a universal solution—but for the right farmer, in the right place, with the right support, it offers a compelling pathway toward financial resilience, consumer connection, and sustainable food production.

Kurt Harmer

Building Diversity in New Zealand Dairy Export Markets for Independent Manufacturers

Executive summary

New Zealand has a milk pool which is no longer growing, which means that all exporters must extract as much value from each drop of milk as possible. It is imperative that independent dairy manufacturers find customers willing to pay premium prices for products to optimise the value they generate from their decreasing (and increasingly subject to poaching) milk pool. Large dairy co-operatives can change the nature of their portfolio to meet market trends and make volume to satisfy significant customers to ensure their success. Meanwhile, independent dairy manufacturers are more likely to be significantly impacted by market changes or trends, without the operational means to adapt their business model dynamically in line with market or consumer behaviour.

New Zealand’s dairy export industry has historically been heavily reliant on large, single markets to consume the volume of dairy produced. While New Zealand produces only 3% of the total dairy in the world, it comprises approximately one third of the dairy exports globally, making our nation a key, trusted player in the global dairy trade despite our relatively small size and distance from key markets.

This report will investigate how small independent dairy manufacturers in New Zealand, with limited financial resources and inability to flex production in line with market behaviour can best future proof themselves for f inancial sustainability and build reliable trade relationships.

My research method has been a combination of literature review as well as conducting semi-structured interviews with industry experts from a variety of backgrounds. From my interview data I prepared a thematic analysis to compare key outputs from my interviews, with key themes from my literature review.

Through my research I discovered that New Zealand’s independent dairy manufacturers are in a good position to attract capital investment from external investors. Māori owned companies are in a particularly favourable position, with the current government’s prominent drive for supporting the Māori economy. However, independent dairy manufacturers need to be able to maintain strong relationships throughout the value chain to ensure their products are truly valued at all points, for both the food quality and nutritional value it provides, as well as the intrinsic values that the company upholds, such as sustainability.

Developing nations are more are more likely to place a higher value on “credence attributes” such as sustainability and animal welfare. This suggests that independent dairy manufacturers who wish to extract value from these attributes should concentrate their market development in these areas. Within these developing nations, where there are indigenous peoples, Māori owned businesses who apply te ao Māori principles in their business interactions may more easily find alignment, as these values are commonly understood and respected.

Alternative methods of market access should be investigated both to circumvent tariA barriers, as well as combatting the “tyranny of distance” that New Zealand exports face. This can be a deterrent both due to cost of shipping as well as time to market. If co-manufacturing or establishing operations within target markets is economically feasible it can be a successful means to combat this diAiculty.

Strong and well sustained relationships are key to mitigating geopolitical risk, as well as ensuring value is realised for New Zealand’s independent dairy manufacturers.

Malinda Wynyard

From Seed to Success: Transitioning Farm Ownership in New Zealand and The Ownership Equation: Exiting with Value. Entering with Vision.

Executive summary

This report examines the challenges and opportunities surrounding farm ownership in New Zealand, with a focus on financial accessibility, succession planning, and emerging ownership models. Traditional pathways such as sharemilking are declining in viability, while high land prices, poor returns, and slow equity growth continue to hinder new entrants.

Farmers are adapting by employing diverse equity building strategies. Aspiring owners rely on financial discipline (43%), surplus animal rearing (41%), off-farm income (41%), and investments (35%). Established farmers favour sharemilking (61%), cost control (44%), and surplus stock rearing (30%). Despite these efforts, access to capital remains a critical barrier, with Tier 1 banks (89%) and family loans (38%) being the primary funding sources.

Alternative models such as equity partnerships, vendor financing, and lease-to-own offer flexible pathways but require strong governance and alignment. Generational shifts are also reshaping ownership expectations, with younger farmers prioritising sustainability, work-life balance, and purpose driven business.

A key concern is the projected capital shortfall: by 2050, the sector faces a gap of $110–$125 billion between available and required capital. Addressing this will require coordinated industry and policy action, including improved financial education, succession planning, and innovative ownership structures.

Case studies confirm that with strategic planning and support; farm ownership remains achievable. However, broader sector challenges such as environmental regulation, climate variability, and market volatility must be addressed to ensure long-term resilience and locally owned agricultural enterprises.

On a personal level, this subject resonates profoundly with my own experiences and upbringing. Having grown up within a male dominated family structure, it became apparent to me from an early age that family succession in rural enterprises was often regarded as an expectation reserved for male members. This was not merely a passive assumption; rather, it was a firmly established norm shaped by generational attitudes and societal frameworks. Decisions pertaining to succession were frequently made in a manner that could only be described as authoritarian, reflecting a regime that operated more as a dictatorship than a collaborative or egalitarian process.

Key Findings

This study identifies a range of critical factors influencing the accessibility and sustainability of farm ownership in New Zealand. One of the most significant barriers is the high cost of land, which, alongside poor returns and slow equity growth, has made traditional pathways to ownership such as sharemilking less viable for many aspiring farmers. Access to capital remains a persistent challenge, particularly for new entrants who often lack the financial backing or collateral required by conventional lenders.

To overcome these barriers, both aspiring and established farmers employ a variety of equity building strategies. Aspiring owners frequently rely on personal financial discipline, rearing surplus animals, off-farm income, and diversified investments. In contrast, established farmers often leverage sharemilking, cost management, and surplus stock rearing to strengthen their financial positions. These strategies reflect the adaptability of New Zealand farmers and underscore the importance of tailored approaches to equity growth at different stages of the ownership journey.

The report also highlights the growing relevance of alternative ownership models, such as equity partnerships, vendor financing, and lease-to-own arrangements. These models offer more flexible and inclusive pathways to ownership, though they require clear governance structures and alignment of values among stakeholders to be successful. The emergence of these models is particularly important considering generational and cultural shifts within the farming community. Millennials and Generation Z, who represent the future of farm ownership, place a high value on worklife balance, sustainability, and purpose driven work. Their digital fluency and preference for collaborative, values-based business models are reshaping the expectations and structures of farm ownership.

Current farm owners play a pivotal role in supporting the next generation by initiating succession planning early, offering flexible ownership arrangements, and providing mentorship. The report emphasizes the need for industry-wide and policy level support to facilitate these transitions. Recommendations include enabling the use of KiwiSaver funds for farm investment, introducing tax exempt savings schemes for farm purchases, and expanding financial literacy and mentorship programs.

Case studies included in the report validate the effectiveness of these strategies, demonstrating that with strategic planning, financial discipline, and strong support networks, farm ownership remains an achievable goal. These real-life examples also reveal that equity growth is the most rapid in the early years of a farmer’s progression and tends to stabilize over time.

Finally, the report underscores the broader challenges facing the sector, including environmental regulations, climate variability, and market volatility. These pressures necessitate coordinated action across industry bodies, government agencies, and farming communities to ensure the long-term resilience and sustainability of New Zealand’s agricultural sector.

As an industry, we must respond to a growing headwind that we all acknowledge is upon us. It’s time to take decisive action by:

  • Addressing financial barriers that hinder farm ownership and growth.
  • Supporting equity-building strategies for both aspiring and established farmers.
  • Promoting alternative ownership models that offer flexibility and inclusivity.
  • Adapting to generational shifts, embracing values like sustainability and work-life balance.
  • Empowering current farm owners to mentor and support the next generation.
  • Securing policy and industry support to build resilience across the sector.

Michele Cranefield

Factors Driving High Value Client Relationships: A Rural Banking Perspective

Executive summary

Background

The food and fibre sector represents a cornerstone of the New Zealand economy and our rural communities. It is confronted with unprecedented and interlinked challenges; environmental and regulatory change, consumer driven climate pressures, volatile global markets, geopolitical instability and rising demands to demonstrate sustainable practices.

Rural managers play a critical role in supporting farmers, specifically in achieving goals, business resilience and financial wellbeing. However recent evidence points to challenges in farmer-bank relationships. This leads to the question; how do we enable trusted, high value relationships between rural managers and clients?

This report is directed at rural banking leaders, rural managers, and rural professional organisations concerned with the future of New Zealand’s food and fibre sector.

Aims and Objectives

The aim of this research project is to identify key factors that enable high-performing rural managers to build trusted, high value relationships with their clients.

Methodology

The methodology comprises of a literature review to understand the key elements in establishing strong, trusted relationships. Semi-structured interviews were then conducted with the aim to explore the perspectives of three distinct groups: clients, rural managers and external stakeholders. The data was then analysed to identify common themes.

Key Findings

Thematic analysis of semi-structured interviews, combined with insights from the literature review, resulted in these findings.

Key attributes of high-performing rural managers:

  • Build trust first – they listen, show genuine curiosity, and invest time on farm
  • Blend technical insight with strong interpersonal skills
  • Are proactive, prepare well, bring solutions and anticipate needs
  • Understand growth mindset, owning their learning and resilience
  • Collaborate and share knowledge.

Factors enabling high performance:

  • Leaders who recruit for empathy, curiosity, integrity and ability to collaborate
  • A performance framework that links clear competencies to remuneration, progression and retention
  • Consistent coaching, feedback, and accountability
  • Supportive culture that values training, autonomy and empowerment.

Recommendations for Rural Managers:

  • Build trust through demonstrated understanding, consistent follow-through and clear, empathic communication.
  • Prepare thoroughly and turn data and information into proactive, client-specific insights.
  • Seek feedback, reflect regularly, be visible, use and share best practice.
  • Use internal tools, and team expertise to deliver fast, coordinated client support.
  • Schedule time for self-care, planning, learning, and relationship building.
  • Maintain a growth mindset.

Recommendations for Leaders:

  • Actively role model values and desired behaviours.
  • Provide targeted training in storytelling, structured communication, courageous conversations, and interpersonal skills.
  • Complete regular one on one sessions, including field based feedback to embed training into business as usual activities. Ensure two-way communication.
  • Be consistently courageous in identifying and addressing underperformance.
  • Celebrate success.

Recommendations for Organisations:

  • Recruit for empathy, curiosity, character and collaborative mindset.
  • Define excellence with a clear evidence based three tier matrix, and link remuneration accordingly.
  • Embed growth mindset training covering resilience, change management, and learning from setbacks.
  • Hold leaders to account.
  • Recognise that high performance is supported by physical and mental wellbeing.

Michele Findlay

Guardians or Executioners – Navigating the Ethics of Deer Control

Executive summary

This report investigates the ethical, ecological, and cultural complexities surrounding wild deer control in Aotearoa New Zealand. Using an autoethnographic method integrated with policy analysis and a wide-ranging literature review, it explores why deer control remains so persistently contested, despite clear evidence of the environmental damage caused by expanding feral deer populations. Framed around the central question, Guardians or executioners? Navigating the ethics of deer control, the report critically examines how ethical frameworks shape, constrain, or enable management decisions in a settler-colonial context.

Introduced in the 19th and 20th centuries, deer have shifted from protected game species to pervasive pests. Today, they occupy more than 44 percent of the country’s land area, contributing to the decline of indigenous biodiversity, impeding native forest regeneration, and affecting productive land use (Mason & Allen, 2020). Although successive governments and agencies have undertaken control efforts, reinvasion, fragmented governance, and inconsistent investment have allowed deer populations to persist or expand in many regions.

This report weaves personal experience with academic critique to expose the moral tensions at the heart of contemporary deer control. Managing sentient animals through lethal means raises discomfort, resistance, and conflict, especially in rural and Māori communities. These tensions are not just policy obstacles; they reveal deeper misalignments between dominant control paradigms and the ethical, cultural, and ecological conditions in which they are applied.

Key themes include:

  • The enduring influence of settler-colonial narratives that frame deer as either invasive threats or charismatic game animals.
  • The emotional ambivalence and cultural complexity deer represent for many communities.
  • The fragmented statutory environment that contributes to inconsistent and ineffective management across land types and jurisdictions.

Chapters 7 and 8 assess historical and contemporary control strategies, including iwi-led restoration projects, community-based catchment programmes, and commercial harvesting through Wild Animal Recovery (WARO). Chapter 9 introduces relational ethics, ecological justice, and kaitiakitanga as alternative frameworks for understanding and guiding decision-making. Chapter 10 presents six future-oriented models for deer control, each grounded in collaborative, context-sensitive practice. These chapters collectively argue for a pluralistic and adaptive strategy that reflects the diversity of New Zealand’s landscapes and communities.

Key Findings and Recommendations

The report identifies several key findings that inform a new approach to deer management in Aotearoa New Zealand. First, ethical tensions are not peripheral but foundational. For deer control to maintain public legitimacy and long-term support, it must be conducted in ways that are humane, transparent, and culturally appropriate. Public discomfort and resistance are not merely obstacles to overcome but signals of deeper ethical concerns that must be addressed through inclusive practices.

Second, co-design with Māori and rural communities is essential. Initiatives such as the Raukūmara Pae Maunga Project illustrate the potential of place-based governance that aligns with Te Tiriti o Waitangi and incorporates local knowledge, values, and aspirations. These models offer powerful alternatives to top-down approaches and help ensure that management strategies are both socially legitimate and ecologically grounded.

Third, the complexity of deer management demands multiple concurrent approaches. No single model is sufficient. Effective outcomes will require a combination of landscapescale coordination, iwi-led governance, catchment-level collaboration, and adaptive management hubs. These approaches must be responsive to different ecological conditions, land-use priorities, and community relationships.

Fourth, the way deer control is framed in public discourse has real consequences. Moving away from militaristic and adversarial metaphors toward a language of care and responsibility can create space for more constructive, pluralistic dialogue. This shift in narrative can reduce polarisation and foster broader public engagement with the ethical dimensions of environmental stewardship.

Finally, there is an urgent need for a coherent national deer strategy. Such a strategy should provide integrated direction that balances biodiversity outcomes, ethical responsibility, and Treaty obligations. Without national coordination, efforts will remain fragmented and inconsistent, limiting their long-term impact.

Ultimately, this report calls for a paradigm shift in how deer management is conceptualised and enacted. Rather than viewing it solely as a technical challenge, it must be recognised as an ongoing ethical practice rooted in care, cultural legitimacy, and ecological responsibility. Through this reframing, Aotearoa New Zealand can develop deer control systems that are not only effective but also just and enduring.

Phil Holland, 

How can we Maximize Production in our Decreasing Ewe Flock?

Executive summary

New Zealand’s sheep population has experienced a significant decline, decreasing by 21% over the past decade to reach 23.6 million as of June 2024. This trend is driven by a combination of environmental pressures, suboptimal wool returns, elevated input costs, and a transition towards a more beef-dominant system. However, the most influential factor has been the expansion of Carbon Forestry, facilitated by the Emissions Trading Scheme (ETS) policies, which has resulted in the conversion of 260,000 hectares of sheep and beef farmland into pine plantations. Since the inception of the ETS in 2007, the national sheep flock has shrunk by 40%. As lamb exports continue to generate $3.18 billion annually, optimising productivity from the remaining ewe flock is of utmost importance.

This report focuses on the significance of terminal sires, particularly emphasising the utilisation of heterosis to improve lamb carcass weights and support the industry’s sustainability in the future. This report aims to investigate the current use and effectiveness of terminal sires within New Zealand’s sheep farming systems, with an emphasis on enhancing productivity from the declining ewe flock. Acknowledging the industry’s diversity in adaptability, this report is designed to influence the middle 60% of farmers, specifically those receptive to pragmatic, evidence-based transformations. Through the implementation of a relatable Mock Farm Model and accessible analysis, this research aspires to equip this group with the knowledge to make informed, production-optimising decisions regarding terminal sire usage.

The methodology employed in this research comprised a national farmer survey, semistructured interviews, and the implementation of a Mock Farm Model. The survey collected regional and on-farm data from sheep farmers throughout New Zealand, with a particular emphasis on terminal sire usage, lamb slaughter performance, and the perceptions held by farmers. Comprehensive telephone interviews were conducted with a geneticist, a diverse group of sheep farmers, and a lamb trader to investigate the practical and commercial aspects of terminal sire application. Lastly, a Gross Margin analysis, based on a mock farm scenario, was utilised to evaluate the economic implications of heightened terminal sire adoption.

The survey findings indicate that farmers utilising higher rates of terminal sires exhibited a significantly higher percentage of lambs killed off mum at weaning. However, the insufficient availability of quality maternal ewe lambs for replacements continues to pose a primary barrier to the increased adoption of terminal sires. Apprehensions regarding lower lambing percentages and the limited integration of Breeding Values in the selection of terminal sires compound this issue.

Interviewees highlighted strategic flock selection, grouping ewes into ‘A’ and ‘B’ mobs, which enables the targeted utilisation of maternal rams for replacements and terminal rams for production enhancements. The lamb trader confirmed a premium for terminal lambs before Christmas, which contradicts certain perceptions held by some farmers. Furthermore, participants stressed the necessity to enhance the quality of terminal sires to maximise performance and improve industry outcomes.

The Mock Farm Model indicated that through increasing the utilisation of terminal sires from 10% to 50% resulted in a significant feed surplus in mid to late summer and advanced the average kill date by 13 days. This feed surplus may be allocated for baleage production, enhancing the Body Condition Scores of ewes for improved scanning results, or for fattening lambs to heavier carcass weights. Scenario modelling proposed an enhancement in Gross Margin, thereby affirming the economic viability of the strategic use of terminal sires.

To optimise production within the declining population of ewes in New Zealand, this report presents the following recommendations:

  • The flock on farm is to be segregated into two distinct groups:
    • An ‘A’ flock comprised of high-performing or younger ewes intended for breeding replacements, limited according to actual replacement requirements
    • A ‘B’ flock consisting of older or less productive ewes, which will be mated to terminal sires to leverage hybrid vigour for the production of heavier, more market-ready lambs at the time of weaning.
  • Align sire selection with breeding goals, focusing more on rams with high genetic merit. Investing in quality terminal sires is a cost-effective decision due to their considerable effect on production.

Matt Ward, Matthew

How do we Develop Financial Literacy in Rural New Zealand?

Executive summary

With constant changes in rural New Zealand, particularly when it comes to owning or operating a business, it is clear there is a fundamental shortfall in financial literacy education (McHutchon, 2021). In order to develop strong financial literacy and therefore resilient rural businesses there needs to be a refocus on priorities within rural communities.

This report examines the current levels of financial literacy in rural New Zealand and how best to develop them in a manner geared towards the learning styles of typical rural New Zealanders. The purpose of this report was to identify implementable strategies to bring financial literacy education to everyone involved rurally including farmers, growers, and rural professionals.

In order to complete this report, a survey was conducted of sixty-three participants to get an understanding of the state of financial literacy in New Zealand currently. The survey was supported by a literature review of financial literacy and financial literacy education in rural communities on a wider scale. The report shows the results of the survey as well as analysis of the themes found from a combination of the survey and the literature review.

The themes identified in the report were:

  1. Financial literacy education
    1. What education needs to be offered
    2. How best to deliver it
  2. Access to education rurally
  3. Socio-economic factors impacting ability to access financial literacy education
  4. Financial literacy paradox

Recommended actions to address the issues identified in the report were:

  1. One-to-one education
    Fleming (2020) shows that farmers and growers learn best in a one-to-one environment free from judgement and social stigmas. This means that providing farmers and growers with financial literacy education would likely fall to rural professionals who are already meeting with rural businesses at the kitchen table.
  2. Gamification
    There is an opportunity to make the education accessible to all through gamification (Czech et al., 2024). It will allow rural New Zealanders to be educated effectively and on a wider scale at times convenient to them.
  3. Making an education paper compulsory for students studying agriculture degrees If we are expecting rural professionals to step in as educators in this arena, it makes sense to give them a foundation on how best to educate people. Adding a compulsory paper to agriculture degrees and perhaps to law and finance degrees would allow new rural professionals to enter the industry with confidence to support farmers and growers effectively.

Morgan Jones

Navigating Sheep and Beef Manager Retention

Executive summary

A Challenge for the NZ Sheep and Beef Industry: Retaining Skilled Farm Managers

Attracting and retaining skilled sheep and beef farm managers is a critical challenge for New Zealand farm owners. Despite high demand, many experienced managers are leaving the sector, driven not only by better pay elsewhere but also by limited ownership opportunities, unclear career progression and unsupportive workplace dynamics.

Through an interview process conducted with farm owners, current farm managers and former farm managers that have left the industry, this report investigates the core retention issues, focusing on the difficulty of farm ownership, misaligned employer-employee expectations and the need to understand current farm manager motivations. While there are several themes obtained from these interviews, three main and interconnected themes were sighted:

  1. It is clear from the interviews that participants believe wages in sheep and beef management are lower than in other industries, making it hard for managers to build savings and secure their financial future. This, combined with a lack of clear career progression, inconsistent job titles and pay expectations, contribute to discontent.
  2. Workplace dynamics significantly impact job satisfaction. The demanding nature of farming often leads to a poor work-life balance, with long and often inflexible hours being a major source of frustration for the majority of managers, especially those with families. A positive work environment, built on trust, clear communication and feeling valued, is crucial. The absence of this was a key reason former managers left.
  3. The sharp rise in land price makes traditional farm ownership almost impossible for new entrants. While alternative equity models are proposed, they often lack clear, repeatable structures and have been met with scepticism in the sheep and beef sector, unlike in dairy.

Despite these challenges, a successful case study demonstrates that separating land ownership from the farm’s operating business can create viable equity partnerships, allowing managers to buy into the operating business directly. Crucially it addresses the entry and exit concerns around fluctuating livestock prices, the livestock buy-in prices are set at market value but the exit prices are set using the previous five-year average, reducing the risk of one of the partners strategically exiting when prices are high.

To address these issues within the sheep and beef sector, this report recommends that farm owners proactively invest time into their staff, understand their goals and help improve financial literacy, while planning for succession with innovative equity partnership models. Additionally, understand the benefits of workforce stability, as it reduces the significant costs associated with high staff turnover.

Farm managers should more clearly communicate their aspirations to farm owners and financial lenders, seek roles with clear progression, prioritise work-life balance and strategically build personal wealth.

Finally, the industry must establish clearer employment standards (like defined job titles and pay scales), as well as actively promoting well-structured equity partnerships. Consideration should be given by government to support equity partnerships through government-backed loan guarantees or tax incentives. Implementing these changes is vital for ensuring a stable and rewarding future for the managers within New Zealand’s sheep and beef sector.

Richard Cameron, Richie, Ritchie

The Soils Gap: Interactions Between Science, Commerce and Culture

Executive summary

Soils lay the foundation of al farming productivity. Whether the farm is managed conventionaly or holisticaly; it al starts with soil.

How farmers manage their soil is influenced by multiple factors. Overarching al of them is our scientific space which affects farmers’ perceptions both culturally and technically.

Linear, cause and effect, output focused, studies suit fertiliser research and fit well with our commercialised scientific frameworks. This product based mentality has extended into our shift towards environmental research with productive environmental science providing solutions through this lens. Meanwhile studies on soil function have been limited, and studies on soil function relating to productivity are non-existent. With baseline biological data missing, soil biology studies related to fertiliser usage have used inconsistent rudimentary measures that have not been built on over time.

The major players within our commercialised scientific frameworks have been driven by market incentives in a way that flies by soil biology and function without stopping to investigate. Public funding is limited, private funding won’t receive a product from it and our scientists have entire careers within this framework that encourages short term thinking. So the long game of soil, unwinding its complexity and variation, falls by the wayside in spite of the possibilities it can bring.

Farmers, in an effort to do the best they can, take advice based on these scientific outputs. The science technically supports fertiliser and culturally supports linear thinking. There is no scientific basis for holistic management, because the studies have not been conducted.

Combined with political and media portrayals, an unnecessary cultural gap is created between conventional and holistic farmers. A gap that limits what conventional farmers see as viable options and leaves holistic farmers to do their own experimentation.

This paper does not make arguments for or against either strategy, but rather highlights how different farmers consider soils within their systems and the challenges they experience in managing them. Combined with the views of advisors and scientists, it tries to explain the drivers behind these challenges and perceptions.

Daniel Judd

Partnerships within the Food and Fiber Sector: Do They Return Value to The Farm Gate?

Executive summary

Background

Highly productive soils are a precious and finite resource, critical for food production but also highly valued for climate regulation, water cycling, biodiversity, cultural significance, and recreation. However, research suggests that up to 75 percent (source FAO, 2020) of soils globally, are already degraded. Now more than ever, stakeholders needs to take actions that will firstly, halt further loss of highly productive soil to city expansion, and secondly protect and enhance remaining productive soils.

Methodology

A literature review was completed to understand recent research undertaken both in New Zealand and overseas that addresses the topic of soil health and specifically the importance of soil health as a measure of sustainability. Where possible, direct references to horticulture or fruit production were sought.

A series of semi-structured interviews were carried out to gather a range of perspectives from a diverse, but relatively small group of stakeholders. Thematic analysis was carried out to identify key themes.

Objectives and scope

The main objectives of this research project are to:

  • Understand the drivers that influence soil health outcomes in New Zealand
  • Understand how growers, industry bodies, researchers and government currently evaluate or manage soil health
  • Identify opportunities to improve soil health outcomes in New Zealand and how these may differ from the rest of the world

Key Findings:

Although participants in this project all recognised that soil health is important, their approach toward the management of soil varied widely.

Additional support in the form of education and extension will help to increase further adoption of sustainable practices that enhance soil health

Change in some parts of the sector is slow due to a combination of mindset and economic, or business-related headwinds that must be overcome.

Market demands and industry-led initiatives will increasingly influence grower practices and elevate the importance of soil health.

Recommendations:

  • With support, most growers will be capable of making changes to enhance soil health without increasing business risk.
  • Industry bodies and product groups should have strategies that elevate awareness of soil health.
  • Governments need to place equal emphasis on the protection of productive soils, as well as the enhancement of soil health.
  • Policy settings need to include clearly defined soil health objectives and allow local government to set regionally specific goals.

Sam Connor