BG: Now, you’ve had a more recent Rural Leaders experience. You were on the Value Chain Innovation Programme this year. What was that all about?
EC: Yeah. So my lane, probably, in the past year has been a lot around the environmental stuff – freshwater, irrigation. But as a sheep and beef farmer, we are doing so much behind the farm gate in terms of how we farm and environmental gains on-farm. For us, because we are main point of production is lamb and finishing lambs, we’ve seen a lot of disruption within the supply chain over the past few years, especially since COVID.
Then we had another one more recently this year, where some of the guys we’ve worked really closely with over the past few years to develop our lamb supply programme. We went to them eight years ago, probably a little bit frustrated at the time, we wanted to supply a product that worked with our lamb, our supply chain, and what was actually needed within that, so we could add more value.
So they came back to us. We said to them, ‘how can we better support what you’re trying to do so we can add value to what we’re trying to do?’ They came back and they said, we need to know when your lambs are coming three to four months ahead. We need all year-round supply, and we need to have a consistent hook weight. And we went ‘righto’ and took that away. Then over the next few years, we worked really hard to actually schedule three to four months out and supply 11 to 12 months of the year and build a system around that, but then also target those specific hook rates and get it right. So, it worked really well.
Then when we had a bit of disruption within our meat company, probably three or four months ago, it blew a bit of that away. It blew away those trusted relationships, and it’s a bit of an ‘aha’ moment for me, and I realised how vulnerable we are to what happens in that supply chain and what we do. Because when your main part of your business is producing lambs and something happens in the supply chain, that’s a big issue.
I’d looked at the Value Chain Innovation Programme last year and I thought it was probably not really in my lane. And then I was like, well, actually, it really is in my lane, because if we’re doing all this other environmental stuff and trying to add value on-farm, we need a supply chain that actually supports what we’re trying to do.
So we, as farmers with our increasing costs, our sheep and beef farmers, especially the catchment limits that you’re trying to farm within, you can’t just produce your way out of it anymore. So, the real important thing that I’m seeing is, how can we value-add?
I applied for the Value Chain Innovation Programme with Hamish (Gow) and Phil (Morrison) to look at all the different value chain examples through the North Island. We got on a bus in Auckland and went down to Hamilton, explored the Fonterra markets with the Fonterra value chain around there, going to a dairy farm and then into the Fonterra factory, and also looking at LIC and DairyNZ and how those operations also support the dairy industry.
Then we investigated kiwifruit, and we also went to Robotics Plus in Tauranga. That was pretty amazing, seeing some of the tech that and the robots that they can pull in to support different production systems.
From there, we went down to Taupo and went to Pamu, and also sheep and beef there. I’m probably missing one, but over to Hawkes Bay to look at the apples as well, and also First Light Foods and a couple of others in there, just investigating what all these systems are trying to target. From there, I figured out that we are…yeah, I feel like we are lacking a little bit in leadership to support innovating the value chain to create value for what we do.
A lot of us are also limited in the land use change that we can actually do to add value. So it’s really important to me to start thinking about how we do add value through the supply chain.
BG: It seems to be like the Holy Grail. A lot of the feedback I get at the newspaper about various regulations and environmental and sustainable goals, people just go, well, we were promised it was value-add, and we’re not seeing it. We’re still slave to the schedule, that sort of thing. And so that’s a real hard nut to crack.
EC: And it’s never going to be easy. People will probably listen and say, she’s crazy. You can’t do that. But what options do we actually have in some cases? It’s like saying, well, okay, it’s hard, but what else are we going to do? Because in New Zealand, we’re actually not… I don’t know, we’re passionate about what we do, we have an amazing industry in sheep and beef.
I guess the other thing is we’ve also…when I think about, I’m very much Ag right through my life. Everything that I see as sheep and beef farmer supports what I can do behind the farm gate and creating efficiencies within the farm gate. There’s not a lot that actually looks at how we create value through the supply chain.
So I think that was probably a bit of an ‘aha’ for me throughout the (Value Chain Programme) trip, is actually realising that, yeah, we are actually stuck. There’s been amazing work done, but it’s like, how do we realise that, yes, a lot of what we do, even with our industry bodies, is focused on production, and behind the farm gate, but there’s not a lot on added value.
BG: Well, the cool thing is, I guess, that the product is amazing already, so it’s a good launching pad.
EC: Yeah, 100 %
BG: It sounds like your experience with Rural Leaders has been pretty rewarding. Is that something you’d recommend to others.
EC: Yeah, absolutely. I don’t know where we would be in New Zealand’s primary sector without Rural Leaders – there’s some great options of different programmes you can get involved with, and there’s always stuff to learn. I think even if I went back and did either of those courses again, you’d still pick up something new.
The people you meet along the way as well and I guess the networks. And I guess when I’m thinking about something and I know I don’t know the answer from those networks, I have a fairly good idea that I will know someone that will. And if they don’t, they’ll know someone that will. It’s a small, small place, the New Zealand primary sector, and there’s a lot of power and networks as well.
BG: Thanks for listening to Ideas that Grow, a Rural Leaders podcast in partnership with Massey and Lincoln Universities, AGMARDT, and FoodHQ. This podcast was presented by Farmers Weekly.
