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The next step: Intensification of east coast Hill country farming.

Executive summary

The meat and fibre industry is the second largest export earner for New Zealand and is a significant contributor to the local Gisborne/Wairoa economy. With the recent growth in the dairy industry and therefore requirement of dairy support land, sheep and beef farmers are being pushed back into the less productive country so intensification of this land needs to occur to maintain growth in regions like the East Coast. There is great opportunity to increase productivity and therefore improve profitability on sheep and beef properties and by doing so this may also help in a number of other important areas, such as; succession viability, attracting skilled staff into the industry and reducing the number of good pastoral farms lost to the forestry industry. 

This project sought to identify whether utilising ‘spray and pray’, as a re-grassing tool on hill country, was an option for all East Coast hill country farmers that were looking to intensify their operations. The advantages and disadvantages of such a management practice were identified, along with best practice advice and whether there was any financial gain to be had. Alternatives to ‘spray and pray’ were explored for those not willing to take such a risk. Data was collected by surveying 21 Gisborne and Wairoa hill country farmers with a range of financial performance and management abilities and from a variety of locations within the district. The data collected, highlighted some interesting results. Those farmers that currently practice ‘spray and pray’ were in general well developed, profitable farms with good fertility status and by and large had a higher carrying capacity on average than those that were not cropping/re-grassing.

The most significant finding was that ‘spray and pray’ was not for everyone. Depending on the farmer’s current position and farming ability, ‘spray and pray’ was not the best productive and profitable option when looking at intensifying some East Coast hill country – other options needs to be addressed first. From the data collected, those that are active uses of ‘spray and pray’ or those about to start a re-grassing programme through the use of ‘spray and pray’ in the next 12 – 24 months, are in general quite progressive farmers and their farms are largely well developed, with acceptable subdivision and fertility, ready to take that next intensification step.

Following the analysis, a number of recommendations for farmers were offered. It was recommended that each farmer initially utilises the resources they have available to them (i.e. AgFirst Benchmarking Database for Gisborne/Wairoa) to clearly benchmark where their business lies. Using this information and possibly some independent advice, determine what their key priorities would be from a development point of view in order of priority (i.e. starting with the lower risk, higher returning options first). If the farmer was looking to try ‘spray and pray’ as a re-grassing tool, planning and preparation, using the experts around them and learning how to manage crops and new pasture species was essential if looking to reduce some of the risk involved – and do not take short cuts, they will only increase the overall risk.

Lynda Gaukrodger

Increasing the pace of change: Barriers and motivations for adoption in the New Zealand kiwifruit industry.

Executive summary

With export sales in 2014 of over $1.6 billion, the New Zealand kiwifruit industry is one of the great horticultural success stories. However, with a target of $3 billion in export sales by 2025, the industry can’t afford to rest on its laurels. Much of the increase in revenue will be due to increase d productivity and fruit quality on-orchard, and that does not happen by default. The aim of this study is to understand how we can increase the pace of change within the industry with respect to on-orchard adoption of innovations. 

Eight Bay of Plenty kiwifruit growers were interviewed about their perceived motivations for and barriers to adoption of innovations. They identified cost, a lack of evidence, conservatism, and underlying beliefs as key barriers to adoption. The need for operational efficiencies, financial benefits, and needing a solution to a specific significant issue were key motivations to adopt.

A case study of DairyNZ highlighted the use of networks and opinion leaders as key tools for accelerating change.

Two innovations in the kiwifruit industry were studied: the pre-flowering trunk girdle, and root pruning. The attributes of these innovations have significantly impacted their rate of adoption within the industry, and serve to highlight gaps in the current research and extension programmes with respect to how innovations are “sold” to industry.

Based on the information collected in this study, the following recommendations are made:

  1. Network mapping could provide so me significant insights and gains in the targeting of messages and improve the influencing of laggards;
  2. The orchard productivity innovation portfolio should continue to use the “farmer first” model by way of the on-orchard brainstorming group, and should implement a grower review process to evaluate the success of research programmes, thereby “closing the circle”;
  3. Research trials should embrace the same model, with grower participation and collaboration actively encouraged;
  4. The OPC grower trial programme should take a more participatory approach, although this will mean a scaling back of the number of trials that are under way at any one time;
  5. The attributes of an innovation should be considered when setting up research trials and planning extension activities, to take into account the barriers these may cause in the adoption decision process.

The recommendations proposed here do not make anybody’s job easier, but will lead to a greater pace of change within the industry, and set us on the path towards the $3 billion target.

Chrissy Stokes

Kaitiakitanga.

Executive summary

What does kaitiakitanga look like in Tairawhiti? What does it mean for uri of Ngati Porou? What does it mean for uri of Te Whanau a Apanui? 

How do whanau connect to their whenua? How might we improve whanau connectivity to each other and our whenua so our whenua and our whanau are ora?!

Ngarangi Walker

Wealth creation: Building equity in the dairy industry.

Executive summary

The New Zealand dairy industry has a broad range of career opportunities for people who are focused and disciplined to work their way through the stages of success. This report examines the pathways and steps to wealth creation within the dairy industry. 

Research shows that career progression is not as clear cut in today’s environment as it has been over the last 20 years. The world is changing quickly and, we have to be aware of what has changed, the challenges that we face today and those that we will face in the future. Positioning yourself to take advantage of opportunities starts from the beginning of your career with, goal setting, good habits and building networks with positive people around you. These key steps will ensure that you are on the right pathway to success.

The traditional pathway for dairy progression has being through the 50:50 share milking model, but in recent years there has being a decrease in the number of farm owners employing sharemilkers. Sharemilking has played a significant role in the dairy industry providing a pathway of progression for people with the desire and hunger to succeed. Based on the decreasing number of farmers selecting the sharemilking model it is inevitable that this traditional pathway could be under threat, making progression through the industry more challenging.

New innovative structures such as equity partnerships or joint ventures now provide people with the opportunity to progress into farm ownership if this is their desired end goal.

In conclusion, this report suggests that to create greater wealth in the dairy industry farmers need to be clear on what their goals are, remain focused and be prepared to face the hurdles that may be encountered along the way. Understand the power of compounding equity, en sure you have a budget, learn how to save and invest your money wisely. It is vital to continue learning and educating yourself so you can adapt and develop the skills required to keep progressing, even when changes are out of your control.

Simon Van Der Heyden

Indigenous branding: Creating a point of difference to the New Zealand primary sector.

Stephen Thomson Kellogg report image

Executive summary

This is an insight to how Maori the branding of New Zealand primary sector products can help to add value to our exports.

“Maori branding is a unique cultural association stories, images, names and symbols which serves to differentiate competing products or services, and to provide with the physical and emotional trigger to create a relationship between consumers and the product”. (Harmsworth & Tahi 2008)

New Zealand has a unique selling point, the one advantage we have over the rest of the world is Maori culture.

Maori culture as a brand has lots of options to offer such as:

  • Using Maori values – rangatiratanga – integrity, manaakitanga – hospitality, kaitiakitanga – custodians or guardians, whanaunatanga – relationships, in your business and explaining to customers what they mean, how you value them and how you implement your values daily within your business .
  • There are Tohu or motifs that all tell a different story
  • Place names have existed for hundreds of years and will not change. These have a strong story to tell.

As a country we embrace and celebrate our indigenous people and culture a lot more than other countries in the world do. There should be no fear of using the culture to help add value to our product. As long as there is collaboration with local iwi, open communication and integrity with the product most iwi are proud to be able to have their unique brand and or name endorsing and promoting a quality product.

Before a company can use indigenous branding, they firstly need to know who they are. The entire company needs to know the companies vision, strategy and values. How can you tell your story if you don’t know it?

Maori brands have the ability to tell magical stories and to steal the hearts and attention of international clients , especially Asian clients who share similar values as Maori culture. The branding becomes an opportunity to tell a story and create relationships, but the product must match the story and consistently be of high value.

It is important that the farmer and the customer form close relationships. Do not allow the processor to be the story teller. The farmer and the customer talking and working together helps to build a better relationship. The customer can then pass on the story and the passion for the product to the consumer.

To grow successful indigenous brands in New Zealand, there needs to be more collaboration amongst businesses. There is a risk that there will become too many Maori brands all telling slightly different stories, but selling very similar product . All Maori have a common story, they need to work together to tell the same one.

Does Indigenous branding add value? Yes it does, but it doesn’t happen easily and there are many other aspects that need to be in line as well. A brand won’t sell a product, it will tell a story that will help the product sell itself.

Stephen Thomson, Steven

Supplying compliant beef out of season: A case study on King island, Tasmania.

Executive summary

Producing beef off grass during spring and autumn is the most common practice for King Island beef farmers. Supplying Meat Standards Australia compliant beef during winter is a common, financially rewarding and challenging system given the environment of King Island at this time of the year.

This case study looks into the supplying of compliant beef during the winter months. By lifting compliancy rates at this time of the year farm revenue will increase as a $0.20-0.40 per kilogram premium is received. Current and future production systems were looked at in an attempt to lift compliancy rates. 

Richard Sutton

Stoking secondary school students interest in agriculture.

Executive summary

The primary industry is known as the backbone of New Zealand’s economy, with large amounts of exciting and broad career opportunities. Yet as the population grows many graduates prefer to head to urban based careers in large cities, than return to heartland New Zealand and take up careers in the primary sector. 

The qualitative study reported here explores what career advice is been given to our future generations regarding the primary industry, what knowledge careers advisors have of the opportunities available, and finally what stigmas/barriers there are preventing students undertaking a primary industry career.

Most schools do promote careers in the primary sector however this could be one specific career such as vet, and most admitted they don’t do it well and could do it better. The overall feeling was careers advisors knew there were a broad range of careers opportunities available in the primary sector, however there knowledge of specific jobs was average. The main stigmas associated with the primary industry were seen as Agriculture was for ‘dummies’ and the work was too hard.

Strategies to help the promotion of primary industry jobs, include rebranding agriculture in the school curriculum to something more ‘sexy’ and to introduce a one semester taster course at year 9 & 10, followed by an NCEA paper to compliment. Also the industry needs to do better to harness social media as a career selling tool, especially in Auckland.

Jason Rolfe

Gold3: Are we driving the right behaviour.

Executive summary

The issue of low taste being a significant risk to Gold3 was highlighted to growers very early in the Gold3 journey. Zespri was transparent with Gold3 growers about the risk and the fact that the answers lay with growers in ensuring they produced high taste fruit acceptable to the markets.

Zespri research efforts aimed at highlighting new orchard technologies to improve taste have been significant. Countless studies and trials have been done in an effort to better understand what drives high taste.

Grower engagement has been excellent from day one. Led by OPC (Orchard Productivity Centre), Zespri have used a fantastic extension programme to highlight key orchard behaviours which have influence on taste. Methods used successfully include field days, Webinars, Tech Forums, Infographics, and the availability of a plethora of easy to access information.

The Zespri payment model is complex and not easily understood by the average grower. Taste payments are designed to encourage good orchard behaviour but their effect is lessened if growers don’t fully understand the implications. Further work needs to be done to determine the percentage of growers who fully under stand the payment system and the relevant payment drivers.

The Gold3 payment system at present isn’t perfect and doesn’t adequately incentivise growers to provide high taste fruit. The 2015 Zespri Taste Review, which is currently under consultation, highlights several areas of improvement including making a higher Minimum Taste Standard and changing the TZG curve to increase the amount of money which is distributed through taste payments. These measures would likely achieve the stated goals of better rewarding growers for producing fruit the consumers want, as well as removing the tail of poor tasting fruit getting into the market.

There are several other methods of adjusting the financial model that should be considered. Re-introducing a Market Delivery Premium to those growers who provide high taste fruit would be something the growers would easily identify with. Growers are more likely to change behaviours in response to what they understand. Increasing the Gold3 Maximum Taste Payment percentage would achieve similar results to amending the TZG curve by better redistributing grower payments so more weighting is placed on taste. This method is likely to be more easily understood by growers and therefore has more potential to drive better behaviour.

If you wish to know more about this report, please contact the author directly or email us at programmes@ruralleaders.co.nz.

Maintaining and enhancing biodiversity on the land and the opportunities this poses for farmers.

Executive summary

Firstly, when I talk about indigenous biodiversity, I am referring to biodiversity that is native to NZ, much of which is found nowhere else in the world. 

Despite some views to the contrary, biodiversity is very much a part of all of our lives. It is in our back yards, our farms and our native forests. Without question, we all depend on a well-functioning ecosystem to provide us with things like fresh water, productive soils, sediment and erosion control and energy. We refer to these as ecosystem services, and they provide us with a whole bunch of things that are essential for our well-being, be they environmental, economic, cultural or social.

Our native biodiversity habitat also provides valuable recreation opportunities, and is very much a part of the kiwi psyche, and the landscape that makes NZ what it is. I must confess to being one of those individuals who is passionate about our native biodiversity, and much of my spare time is spent in the outdoors with tramping boots and a raincoat. I’m a 4th generation Waikato farmer, starting my career as a 50-50 share-milker, and now currently farming a 110ha drystock farm at Cambridge, with lots of trees, and an ongoing planting programme. I’m also an elected Waikato Regional Councillor serving a 2nd term, and consequently have a good understanding of the complex challenges faced by both landowners and Councils in this space.

This study is focused on the management of terrestrial biodiversity habitat and wetlands, and by association the many streams and rivers that are on, or inextricably linked to activities on private land. It is my involvement in the many ongoing debates on how to reward and assist farmers in the work that they do to establish the riparian buffers, and maintain and enhance the many forest remnants and wetlands that are on Waikato farms today, that has led me to choose this project.

I have a particular interest in the utilisation of markets, and the application of market based mechanisms to conserve and pay for the services that the ecosystem provides. This report focuses on applying this concept to the NZ farm business, with a view to incentivising and rewarding land use activities that optimise the opportunities that our natural capital provides. This means activities that respect and recognise the need for this natural capital to provide for both current and successive generations in a fair and equitable way, enabling a range of interests and values to be catered for. I have also visited the issue of freshwater and nutrient discharge allocation polices, because both manage the access rights to ecosystem services, and the allocation concepts are relevant to this discussion. Freshwater and the environments ability to assimilate pollutants are inextricably linked to a healthy ecosystem, and are without doubt beneficiaries of native ecosystem enhancement activities.

It is not easy to come up with fair and affordable solutions, and it never will be. But hopefully this small bit of work will contribute to the thinking, and help us work towards a better way to reward the work that forward thinking farmers are doing on their own land.

Stu Kneebone

‘Prime vs. Bull’ : Making more cents out of the beef Industry.

Executive summary

The New Zealand (NZ) beef industry traces its origins back to the first European arrivals to NZ. While cattle were initially used as draught oxen to provide food and for the purpose of improving pastures, they are now a major source of export in come for NZ farmers. Today NZ exports chilled and frozen table and manufacturing beef to the major world markets, with the majority of production going to either the manufacturing market of the United States (US) or high value markets in Asia and Europe.

On-farm, farmers make a decision every year as to what class of livestock they will finish over the following 12 months. The traditional beef system has been to retain castrated male and female calves from beef breeding herds, with stock then finished and sold as ‘Prime’ beef. Since the 1970’s, farmers have developed and maintained the bull beef industry, with male calves retained from the dairy industry for finishing and export, predominantly to the US market. Given that the product from both types of animal are exported to similar markets, the report findings indicate that it is the same external market forces which impact the returns to NZ farmers.

This report explores the major challenges in supplying beef to the world market and the external forces at play. It also investigates the future market outlook for NZ beef, the challenges and opportunities that the beef market faces, and how farmers can best take advantage of these.

The main findings of the report are: 

  • NZ beef production accounts for approximately 8% of cross-border trade making NZ one of the largest beef traders in the world.
  • Approximately 50% of NZ beef production is exported to the US market as both primal cuts and manufacturing type beef, illustrating the reliance of the industry on this major market.
  • There is a significant amount of work being undertaken both by industry (Beef & Lamb), Government and processors to expand the market for NZ beef and improve prices paid to farmers for livestock. This includes generic provenance marketing, Free Trade Agreements to achieve better access for NZ beef into high value markets and specialist breed based marketing programmes.
  • Farmers elect to farm either Bulls or Prime Heifers & Steers, or a mixture of both. The report findings indicate that farmers are best to farm stock suited to their specific farming operations rather than “farming for the market”.

David Kidd