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Rural Leaders News

Opportunity to lift our game: leadership in employment standards

Jason Rolfe, 2017 Nuffield Scholar

 

Travelling around the world as part of my Nuffield experience it was clear that the other dairy producing countries hold New Zealand as world leaders in pasture fed milk production which is something we pride ourselves on. However, we can’t become complacent and as I have identified there are areas that we need to improve. One of these areas for is our on-farm leadership, particularly when it concerns our interactions with employees and how we motivate and keep them engaged.

A large number of New Zealand on-farm leaders have got to their position of leadership through long hours working on farms or up through the sharemilking system then, purchasing a farm or taking over the family farm. Often they have had no formal training around leadership styles that get the best results out of their staff or any experience managing a team prior to this.

There is also an expectation that staff will work as many hours as they did, despite not having a financial interest in the business or the same goal of one day owning a farm. Many of the next generation have a lot more opportunities as careers available to them and don’t see the current structure as a worthy career.

Research has shown that many New Zealand farm workers average between 60-80 hours a week and the most common roster is having 12 days’ work before two days off. It is no wonder that nearly 1 in 3 employees is leaving their jobs each year in the sector compared to 1 in 7 employees across most other industries (source: Statistics NZ).

Many of the farms I visited overseas had more employees per number of cows, each working on average 40-45 hours per week. Some of this was driven by legislation. This had not always led to increased wage cost as staff were paid for the time they were working and the overall number of hours worked by the entire team in a week was similar to a NZ system during the calving period.

“I found also that staff were more productive as they were rested, more engaged in their job, and had a work-life balance. With larger teams also came a fantastic culture within the business, morale seemed high and they had very low to average staff turnover. “

There were also businesses that were using their employment record and practices as branding on their products with slogans like ‘employer of choice’ and ‘great employer certified’ attracting a premium locally.

Dairy NZ’s recently launched strategy includes building a great workplace for our talented workforce. The goals relate to attracting talent and getting employment best practice standards across the industry. This is a great start and having goals in place will make this measurable.

However, we need to take this further and really focus on providing leadership training on farm for managers and owners. This training shouldn’t be aimed at meeting legislation minimum standards but more at the individuals own leadership styles, so they can make changes to their own behaviour. Research shows that higher engaged work forces are more productive and create more value making fewer mistakes, which at the end of the day is most producers’ goal.

Much emphasis gets put onto the environmental issues or animal welfare concerns when it comes to the dairy industry as it directly relates to our social licence to farm in New Zealand and the perceived value in our products globally.

However, many global brands have their reputation as a good employer ranked just as high a priority, as getting this wrong often does more brand damage as consumers can relate more directly to the human element. Recent examples of this are big brands like Adidas and their customer fight back around illegal and underage labour.

We don’t want to just be an industry that is proud to be meeting employment legislation standards with good on farm conditions. Let’s be leading employment standards globally and be the recognised employer of choice for someone looking for a new career.

Obtaining Premium Prices with Business-to-Business Model

Ryan O’Sullivan, 2017 Scholar

Somewhat unsurprisingly, common themes have definitely emerged during the past year of travelling the globe and discussing agriculture with our fellow Scholars.

The pastoral New Zealand agriculture sector has long been criticized for operating at the bulk commodity end of the market, be it frozen carcasses or brown bags of milk powder. The solution it is said, is a business-direct to-consumer-sales model- value add, fast moving goods with a high volume, high value and greater export returns and more on-shore jobs.

The reality of this is strategy is somewhat different.  In the consumer goods dairy category for example, a company operating in this space will release on average 8 products, with just one surviving more than three weeks on a supermarket shelf.  The other seven are a sunk cost in terms of research, innovation, manufacture, packaging and promotion.  The one champion product may provide a great return, but is needs to in order to offset the sunk cost of the other seven.  In the fullness of time, the champion product then becomes crowded by ‘me too’ products seeking to emulate the lucrative position in the particular category.

This strategy, while successfully executed by the Nestles of the world, requires massive scale of investment and significant brand equity, neither of which is strong in New Zealand, downstream of the farmgate.

The other challenge is year round supply of the raw product. Our pastoral industries have been developed to follow the growth curve for good reason but it does present some challenges for year round supply of consistent fresh product.

It is for these reasons the pastoral industries in the New Zealand agriculture sector have tended to evolve selling business-to-business: commodities, ingredients, food service. Given the challenges mentioned above and the fact New Zealand pastoral farmers have enjoyed the comparative advantage of lowest cost producer, this has worked reasonably well…we are quite good at it.

We cannot however not sit in this space forever as consumer demands change, competition is arriving and our low production cost base is being challenged by others.  It is not a case a major shift away from business-to-business, it’s just doing it better, higher value opportunities within the segment and competing on quality, leveraging the different functionality of grass fed and telling the story behind the product.

Livestock in New Zealand, in a pastoral system, lead a charmed life relative to most other places in the world so this is one example where we can leverage a comparative advantage with our customers.

Some of our challenges as an industry therefore going forward would be:

  • Coming up with a unique brand proposition around grass fed/free range/happy lifestyle livestock

  • Look to initiate a standard for grass or pasture fed similar to that of organic standards. Can we defend it and set it aside from other label claims around the world?

  • Can we ensure our environmental footprint from farming livestock outdoors is sustainable and aligned with consumer expectations?


The Nuffield journey so far has highlighted that we do have a unique point of difference in our livestock industries that is sought by today’s consumers. Our challenge is to deliver that story and create the premium.


2017 Nuffield Scholars Announced

The latest crop of primary sector emerging leaders have been revealed with six 2017 Nuffield Scholars announced by Primary Industries Minister Nathan Guy at Parliament.

They are Mid-Canterbury rural journalist and artisan food producer Nadine Porter, Manawatu dairy farmer and farming advocate Mat Hocken and Oxford-based Rebecca Hyde, who works for Ballance Agri-Nutrients and has strong skills in environmental management and sustainable farming.

Joining them are Taranaki’s Jason Rolfe, who is an area manager for FMG, farmer and former winner of the Young Farmer of the Year contest David Kidd and South Canterbury dairy farmer Ryan O’Sullivan.

The six new scholars join more than 140 of New Zealand’s emerging agricultural leaders to have been awarded Nuffield Scholarships over more than 60 years.

The scholarships are one of the most respected and prestigious awards available in the primary sector and offer a life-changing opportunity for overseas travel, study of the latest developments in a number of leading agricultural countries and an introduction to leaders and decision-makers not accessible to ordinary travellers.

Nuffield Scholars travel internationally for at least four months in their scholarship year (not necessarily consecutively) and participate in a Contemporary Scholars Conference with 60 Nuffield Scholars from around the world.

They will also attend a six-week Global Focus Programme with an organised itinerary through several countries with other scholars.

Finally, they will have their own individual study programme with a research report due at the end of their travels.

Topics this year are likely to include how we innovate in this country and how we can improve our innovation in the agriculture sector, how improved collaboration between industry and sectors can help achieve better environmental outcomes, improving/stabilising onfarm returns to attract more talent and reduce turnover in the primary industries, exploring how other countries are turning the protection of the environment into a value-added revenue stream and how irrigation schemes can deliver water, not just for agriculture or economic benefit, but for achieving environmental and social outcomes as well.

Nadine Porter

New Nuffield scholar Nadine Porter is a committed primary industry advocate and believes the agriculture sector is at an exciting crossroads. With a long career in agricultural journalism and artisan food ventures, Nadine is now working as communications manager for NZ Young Farmers.

Mathew Hocken

New Nuffield scholar Mathew Hocken is carrying on the family legacy, farming the Manawatu property that has been in his family for over 125 years and acting as an advocate for farmers through his roles with Federated Farmers. He returned to the family property, Grassmere, in 2013 after a successful career studying law and politics and working overseas in consultancy roles covering areas like climate change and energy.

Rebecca Hyde

New Nuffield scholar Rebecca Hyde believes improved collaboration between sectors and industry can help achieve better environmental outcomes and she plans to research this topic further as part of her scholarship. Oxford-based Rebecca’s passion for the environment extends to her work with Ballance Agri-Nutrients, where she is South Island team leader of farm sustainability services.

Jason Rolfe

Improving employment conditions and promoting the primary industries as an attractive career option are key to securing talented young people in the industry, new Nuffield scholar Jason Rolfe believes. Living in New Plymouth with his new wife Christina, Jason is the Taranaki area manager for FMG Insurance, a role he has held for the last year.

David Kidd

Third-generation farmer David Kidd, who won the Young Farmer of the Year contest in 2014 and has a strong background in the finance industry, is one of six new Nuffield scholars for 2017. David manages a 550ha beef finishing property at Shelly Beach, South Kaipara Head Peninsula.  He and his wife Janine have spent the past four and a half years developing the property, gradually improving its carrying capacity and productivity. Before becoming a farmer, David spent six years working in the finance industry in New Zealand and Australia.

Ryan O’Sullivan

South Canterbury dairy farmer Ryan O’Sullivan has been named as a Nuffield scholar for 2017. Ryan is married to Tina and the couple have three children, aged from five to nine. The O’Sullivans are equity managers of a large-scale farming operation near Fairlie, South Canterbury, comprising a 1200-cow, irrigated dairy unit run in conjunction with 550ha of dairy support. Previously, Ryan attended Lincoln University then began a 10-year career in rural banking.

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For further information and photographs please contact: Anne Hindson on 027 431 7575

Detailed news releases on each scholar are available on request.

 

Taranaki Nuffield Evening

This is an opportunity for potential applicants to learn more about the Nuffield scholarship experience and have an informal face-to-face discussion with some of those who have already undertaken the programme.
 
We are keen to broaden the pipeline of Nuffield scholarship applicants (particularly farmers/growers/producers) and to have a strong pool of candidates from the region.
 
We hope that through this meeting we will provide new applicants with more information about the nature of the programme and the commitment, so they are well prepared to put a strong application in front of our panel.
 
Please RSVP at your earliest convenience, by emailing us at  nuffield@nuffield.org.nz along with your contact information and the names of the people attending. 2018 Scholarship applications close on Sunday, 13 August.

No bull behind record milking attempt

“The record-setting exercise is the brain-child of healthy farming campaigner Ian Handcock who was responsible for the Farmstrong initiative, aimed to improve farmers’ mental and physical health.

In 2013 Handcock’s Kellogg rural leadership project on dairy farmer health highlighted how sedentary the job had become, and its effect on farmers’ fitness.”

https://farmersweekly.co.nz/section/dairy/view/no-bull-behind-record-milking-attempt

Kellogg looks forward and back

“The first ever gathering of Kellogg Alumni is being organised for May but it also notes the retirement of programme leader Dr Patrick Aldwell who has been involved in 21 courses since 1999.
The former Dean of Commerce at Lincoln University, Aldwell has been replaced by former Beef and Lamb NZ chief executive Scott Champion.”

https://farmersweekly.co.nz/section/other/view/kellogg-looks-forward-and-back

Giving back drives award winner

Jessie Chan-Dorman is a Kellogg Rural Leadership scholar, has completed a Fonterra governance programme and was the recipient of Canterbury’s Institute of Directors aspiring director award in 2014. And she was named 2017 Fonterra Dairy Woman of the Year at the Dairy Women’s Network annual conference in Queenstown.

https://farmersweekly.co.nz/section/dairy/view/giving-back-drives-award-winner

Africa Global Focus Programme 2017: Nadine Porter

Nadine Porter, 2017 Nuffield Scholar

The Global Focus Programme is transformational – not only in personal development but also in the way you come to view New Zealand’s agri-food sector.

USA

For me my Africa GFP began in the United States in Delaware where we were shown what a cataclysmic mistake it has been to devalue food in the way American society has. With only 8 per cent of household income spent on food, and the average citizen eating 50 per cent of their meals in restaurants and takeaway outlets, it has been a frantic scrabbling to the bottom by meat producers.

One large egg farmer we visited had increasingly expanded his operation and was automating as fast as capital access would allow. Why? Because Americans want cheap food. It could almost be part of their constitution. Their pride in ‘producing the cheapest food in the world’ as one farmer put it is evident, not only in the continuing cheapening of products but also in the waistlines and wastage of citizens.

That devaluation of food is spreading through-out the developed world –  but may be arrested with the younger consumers coming through – especially with the rapidly developing social conscience among them. But, in the meantime it will lead to a quicker expansion into automation, and increased unemployment – something one Senator shared, he was at a loss to know how to handle the fallout from.

All farmers we spoke to, voted for Trump purely because they were tired of what they termed ‘over regulation’ from Obama’s regime.  And there were some ugly conversations had, where many prejudices were displayed by farmers, who seemingly feel his victory gives them license to express them freely – even to our fascinated Nuffield group!

Perhaps most disappointing to me about some of the farmers we visited, was the level of apathy in their businesses. One dairy farm had 100 million consumers living within a 100-mile radius. His operation was not economical or efficient, but because of his customer base, he had willing consumers on his front doorstep. His answer was to make ice cream and within a year had a $1 million US turnover from his diversification. It wasn’t particularly good ice cream and the shop on the farm was not overly enticing. And therein lies the issue…where a density of population can lead to laziness in business strategy. I found myself wishing more than once that New Zealand had access to that kind of consumer base on their doorstep!

The United States also began a consistent theme I was to see repeated over the next eight weeks. The ascent of Australia over and above us is real and is frustrating. In the United States Australia has 44 per cent of sheep meat market while New Zealand has just 15 percent. Their products were clever, well considered and marketed sophisticatedly. Vegetarian fed was one such example of clever messaging!

New Zealand as a brand was not significant, and with Australia also working in that space of branding their country of origin as a safe, clean, environmentally sustainable product, my fears increased for the positioning of NZ Inc in the global market.

Eastern Europe

Eastern Europe gave me an insight to regionalism – and how this is going to be an incredibly serious mega-trend that has vast implications to our food sectors. Even in developing countries like the Ukraine we witnessed the consumers desire to shop locally. We learnt not to assume in an under developed country that the consumer isn’t educated on sustainability. In Kenya, even the poorest villagers had a phone. Those devices give every consumer a ticket to the world of food production. And we can never take that for-granted.

So what then is our plan B with 95 per cent of our produce exported? What happens if tomorrow’s consumer outright rejects New Zealand products based on sustainability? How then do we fight that? And are we prepared for it?
And during our Czech Republic visit we were told that German supermarket giant, Lidyl, intends to implement regional policies by buying within a local radius only. 

Kenya

In Kenya, I was to understand subsistence farming and how those farmers far surpass in terms of numbers the large corporate farms we were to see in the likes of Eastern Europe.  This really put the constant message we are hearing globally about the need to feed the world in context.

Simple technical farming advice could significantly increase production and quality of lives for subsistence farmers worldwide. Take that increase in production and the disappointing amount of food wastage in the world and you have an answer to those that cry wolf on needing to increase food production.

I struggled to be comfortable in Kenya with businesses, such as a large Dutch flower operation we visited, that were overseas owned, and making money because they had the advantage of cheap labour and less Government regulation.

Yes, these businesses were clever, but I struggled because the feeling that was imparted to me, particularly after talking to a supermarket buyer in South Africa, was that ethics in business will increasingly be looked at and scrutinized by the new generation of consumers.

South Africa

South Africa gives me great hope for the future of Africa. At present it is corrupt, and difficult to do business in. But the new generation coming through are entrepreneurial, educated and determined to oust their parents’ regimes. It is an innovative disrupters dream and will be a powerhouse in the future.

So, I’ve come back experiencing conflicting emotions about New Zealand’s place in agri-business globally. Our domestic issues seem less relevant than they did to me and I often see them now as being somewhat of a sideshow that distracts us from what must always be our number one focus – our overseas consumer.

As you read this I will be travelling in the United Kingdom, Ireland, Holland and Belgium on the first leg of my personal studies where I’m investigating consumer mega trends, the science of perception and learning about successful long-term messaging.

Before the end of the year I will be heading back to the United States and travelling a little in Canada as well as Mexico before touching base in Asia early next year.

I cannot thank Nuffield International and our wonderful team in Nuffield New Zealand enough for this incredible opportunity. That hunger to learn is a powerful driver and I look forward to meeting up with you in November.

In the meantime, if you are interested in further expanding upon some of the issues I’ve written about please see my blog at farmjourno.wordpress.com.