Programme: Kellogg

This report addresses the incorporation of biopesticides and integrated pest management (IPM) strategies into the horticultural sector in New Zealand. A combination of a literature review and semi-structured interviews were undertaken and analysed using PESTLE analysis.

The New Zealand horticultural sector is diverse and export-focused. Each crop sector has different crop strategies to control pests and diseases to meet export market requirements. Globally, consumers are more connected to the source of their food with each market focusing on different components. This is complex for growers to meet most market demands. Biopesticides and IPM is investigated to determine if these are viable options for crop protection.

The final recommendations were split into People and Mechanics.

People

People do not like change which is a large barrier to the use of biopesticides and IPM. Change often occurs when market requirements are altered or in a ‘crisis’. Many growers have been misinformed on IPM or biopesticides before putting them into practise, which can result in a false sense of perception and a lack of trust. This results in many not willing to try again and spreading misinformation. Biopesticides are often more expensive with less efficacy than synthetic chemicals. There is little incentive for growers to change with no perceived economic value.

IPM is more welcomed within the industry. Knowledge was also identified as a barrier. There is more motivation toward this approach as there is a perceived view that there may be less chemical costs.

Knowledge domestically is lacking in IPM and biopesticides. Key experts in these fields must be identified. Clear messaging is important. Experts must collaborate to produce a strategic approach to build a network of knowledgeable and trustworthy industry leaders. The use of international tools and other experts should be seriously considered to reduce costs and accelerate learning. Science-based decisions on crop protection are important to set growers expectations to reduce mistrust. Growers will need considerable support and industry must be ready to provide this.

Currently, there is no formal training for people who provide agronomic advice to growers. These people hold a large influence. Agricultural retailers and agronomists should collaborate and set a formal standard incorporating the entire ‘toolbox’ to build consistency within this sector and build confidence in growers.

NZ growers need to be adaptive to obtain market access with more markets aligning with a whole farm holistic approach. Ethical, sustainability and low residues in food are likely to trend with markets. IPM and biopesticides fit well for this market.

Chemical resistance management was one of the largest concerns. There is high reliance on chemicals and different controls should be integrated to build adaptability. The need to educate the entire industry is critical to protecting the current chemical controls. Slow regulatory agencies have a negative compounding effect on chemical resistance.

Mechanics

Regulatory agencies are a considerable barrier to crop protection. The current cost recovery strategy is low and ecotox models are outdated. Increasing the cost recovery for new products to enter New Zealand per application is advised to enable more funds to be utilised to upgrade internal risk assessment tools such as the ecotox models. Participants in this study were open to this recommendation if the timeframes were quicker and more reliable. This hinders both chemical and biopesticides entry to the New Zealand market.

Technology was a key tool identified to compliment IPM and biopesticides. The use of technology to predict pest pressure will enable growers to make informed decisions. These tools can also justify crop protection decisions to export markets. Research farms with demonstration abilities can help growers make crop protection decisions when they are particularly risk-averse before investing. They also ensure methods can be implemented practically before reaching growers.

Implementation of biopesticides and IPM will not be easy with the largest hurdles being the knowledge gap and the regulation of products. As an industry, it is important to move toward these approaches to maintain a strong future market share.

This research project explores the balance between profitability and environmental sustainability in New Zealand’s top-performing dairy farms. By analysing DairyBase data and conducting qualitative interviews with leading farmers, this report identifies key management practices, values, and philosophies that contribute to both economic and environmental success. The study highlights that profitability and sustainability are not mutually exclusive. The top-performing farms don’t have to choose between making a profit and looking after the environment. The best farmers show that smart choices and caring for the land can go hand-in-hand. But it’s not all straightforward. Farmers still face plenty of hurdles like changing rules, unpredictable weather, and tight budgets.

The findings reveal that efficient pasture management, attention to animal health and welfare, detailed monitoring, and data-driven decision-making are common practices among high-performing farms. These farms also prioritise financial prudence, keeping farm working expenses low and focusing on profitability. Core values such as integrity, honesty, hard work, and family involvement play a significant role in their success. Community and knowledge sharing through participation in discussion groups and industry organisations foster continuous improvement.

Environmental sustainability practices, such as reducing nitrogen use, maintaining soil health, and minimising environmental impact, are crucial for the long-term viability of dairy farms. The study emphasises the importance of a balanced approach that integrates profitability with sustainability. The research highlights the need for ongoing education and support for farmers to adopt best practices, highlighting the role of community and social interactions in shaping farmers’ decisions.

The interviews provide practical examples of how farmers implement these practices, such as adopting organic farming methods or low input systems, which align with the literature’s emphasis on environmental sustainability. Farmers use tools like DairyBase and Overseer to track performance and make informed decisions, ensuring that their practices are both economically viable and environmentally responsible. The focus on reducing nitrogen use and maintaining soil health is evident in the interviews, aligning with the literature’s emphasis on sustainability indicators.

By adopting best practices and leveraging shared knowledge, farmers can achieve a balance between profitability and sustainability, ensuring the long-term success of their farming operations. This holistic approach not only benefits the environment but also enhances the resilience and economic viability of dairy farms. The collective effort of farmers, industry leaders, and policymakers will be essential in achieving a resilient and prosperous dairy sector in New Zealand.

This report explores the critical yet underutilised role of nutrition in New Zealand’s pasture-based dairy systems. Despite its foundational importance to animal health, productivity, and environmental sustainability, dairy cow nutrition remains inconsistently applied and poorly integrated into broader farm decision-making. The project investigates the current state of dairy nutrition through a combination of semi-structured interviews with 18 key stakeholders—including nutritionists, educators, industry professionals, and rural advisors, and a comprehensive literature review.

The research identifies six core themes that represent both challenges and opportunities for the sector: (1) education and training, (2) young stock rearing, (3) precision feeding and technology integration, (4) holistic farm management, (5) financial and economic analysis, and (6) the development of new initiatives and programs. Across these themes, the report highlights significant gaps in practical training, credentialing, and the translation of scientific knowledge into on-farm practice.

Key findings include the need for standardised, modular training programs that blend theoretical and practical knowledge; the critical importance of early-life nutrition for long-term productivity of livestock; the underutilisation of wearable technologies and data tools in decision-making around nutrition; and the lack of integration between financial and nutritional advice. The report also emphasises the need for a systems-thinking approach that aligns nutrition with environmental goals, farm infrastructure, and economic viability.

Recommendations are targeted at multiple stakeholder groups. Farmers are encouraged to build foundational nutrition knowledge and adopt data-informed practices. Rural professionals should pursue micro-credentials and collaborate across disciplines. Education providers are urged to revise curricula to include more applied, pasture-based nutrition content. Industry bodies are called upon to revive and modernise the FeedRight equivalent programs, support credentialing pathways, and foster collaboration to unify messaging and improve knowledge transfer.

Ultimately, this report calls for a cultural and structural shift in how nutrition is valued and applied within the dairy sector. By investing in capability, collaboration, and evidence-based practice, New Zealand can build a more resilient, productive, and sustainable dairy industry, one where smart nutrition is not just a technical input, but a strategic cornerstone of success.

Strong relationships between farmers and rural advisors, in particular veterinarians, lead to better implementation of advice and adoption of recommendations. Farmers value evidence-based advice from their veterinarians, but veterinarians are often criticised by farmers for not thinking about the big picture. For veterinarians, strong relationships with farmers can contribute to job satisfaction and retention. However, there is limited research on the key attributes of a successful farmer-rural advisor relationship from the perspective of both farmer and veterinarian. The aims of this project were to identify the key attributes of successful farmer-veterinary advisor relationships from both perspectives, specifically for female veterinarians who are in a paid advisory relationship with a dairy farmer.

A review of the literature revealed that a successful advisory relationship between a dairy farmer and veterinarian had benefits both from management and business perspectives and from a well-being and job satisfaction perspective, for farmers and veterinarians alike. For the farmer, a successful advisory relationship may lead to improvements in management of farm operations, animal health, and profitability. For the veterinary advisor and business, successful advisory relationships may be seen as beneficial for job satisfaction, retention of veterinarians and improved client loyalty.

Semi-structured interviews were conducted separately with seven dairy farmerfemale veterinary advisor pairs, that were self-reported as successful relationships by both parties. Five owners or senior managers of these veterinary businesses were also interviewed. Open-ended questions were asked to understand the positive components of a thriving and flourishing farmer-veterinarian relationship. Thematic analysis was used to identify core themes and sub-themes, commonalities, and differences between the farmers, advisors, and business owners/managers.

Key findings from these interviews:

• Personal connection was highlighted as the most important theme contributing to the successful relationship between the veterinarian and farmer for all interviewees. This connection was created over time by mutual trust and respect, honoured by open and honest communication between the veterinary advisor and farmer, with a genuine understanding of the farmer and their business by the veterinarian.
• Value is provided by the veterinarian to the farmer in the form of support, expertise, growth and development, and accountability. Furthermore this value provision is not all one way; in order for the partnership to thrive, growth and development, and accountability go both ways.
• A strong understanding of personality characteristics (self-awareness) by both the veterinarian and farmer, and awareness of what was needed by the farmer to complement their strengths, was part of the success.
• Veterinary businesses clearly saw the value in supporting their veterinarians to work with farmers as advisors, citing benefits to the veterinary business, the veterinarians, and the farmer clients. The factors that need to be considered for veterinary businesses to be successful encouraging the development of these flourishing advisory relationships are time, support, interpersonal skills, building of trust, monetisation of the work, emotional and personal investment, and gender.

Recommendations:

• Communicate to the veterinary industry the importance of personal connection as the pillar of flourishing advisory relationships. Clearly describe how the value in these partnerships is provided to (and from) the farmer by the advisor.
• Improve the emotional intelligence of veterinarians wanting to work as advisors through training and education.
• Communicate to the veterinary profession the complexity of the advisory role, and the different skillset required by veterinarians that are successful in this space.
• Veterinary businesses need to provide a range of resources to support their veterinarians to develop as advisors including time allocation, a structure to the advisory service but also the flexibility to adapt with each relationship.
• Identify farmer-veterinary advisory relationships that are not flourishing and make recommendations for changes based on the findings from this project.

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.

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.

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.

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.

Background

Farmers are facing challenges such as environmental regulations, inflation, and price volatility, leading many to seek land use changes and diversification. Agritourism has emerged as a popular option, integrating tourism into farming and providing opportunities for experiencing real farming life in New Zealand and re-connecting with nature.

Aims & Objectives

The research aimed to understand why farmers diversify into agritourism and what opportunities exist in this sector. The question addressed was, “What opportunities lie in New Zealand agritourism?” The goal was to provide information for farmers considering agritourism to diversify their farming businesses and investigate how the agritourism sector could grow.

Methodology

A literature review established definitions, drivers, benefits, and challenges of agritourism globally and compared them to New Zealand. Qualitative interviews with agritourism operators and stakeholders identified motivations, benefits, challenges, and success factors in the sector.

Key Findings

• Agritourism diversification is driven by financial and social factors.
• Diversified income and resource optimization enhance business resilience and facilitate business growth.
• Agritourism provides opportunities for non-farming partners and family members, enabling personal growth and offering flexibility.
• Challenges include operational considerations such as balancing farming and tourism activities, health and safety, weather implications and staffing requirements.
• Authenticity is the key to success in the agritourism sector. Providing experiences unique to individual businesses and the resources they have available.
• Agritourism helps bridge the rural-urban divide and helps educate urban people on the primary sector.
• Agritourism can also help promote New Zealand farming and products on an international scale.
• New Zealand lacks agritourism leadership compared to countries like Australia and Scotland. No national strategy exists to support sustainable growth of agritourism.

Recommendations For Farmers

• Investigate agritourism as an option to optimise land use, improve profitability and create a role for non-farming partners or other family members.
• Undertake robust business planning and market research to and develop products that suit the land, region and people in the business.
• Ensure offerings are unique and authentic to avoid “cookie cutter” experiences.
• Consider the effects on your local community, both positive and negative. Minimise any negative impacts to maintain social license.
• Connect with Regional Tourism Organisations for local tourism information and collaboration opportunities.

Recommendations to stakeholders

• New Zealand government needs to recognise the opportunity within agritourism and develop an agritourism strategy for sustainable growth. Pulling inspiration from existing international strategies such as the Australian “Agritourism 2030” national framework.
• Tourism New Zealand needs to redirect funding from marketing to destination management and infrastructure development in the regions to support sustainable growth of agritourism.

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.