2026 Nuffield NZ Farming Scholarship. Apply by 17 August 2025. Read More...

Apply for 2026 Nuffield NZ Farming Scholarship by 17 August 2025. More details...

2015

The current and future impact of machine to machine technology on the dairy industry in New Zealand.

Executive summary

This paper and the associated research sought to answer the following research question:

What is the impact of machine to machine (M2M) communication on the dairy industry in New Zealand, and what is the likely impact in the future?

Information and communication technology (ICT) plays a significant role in the information flow across the dairy value chain. M2M communication is a critical component of this information flow. For the dairy industry to move from where it is today, to where the benefits that can be achieved from the adoption of ICT’s are maximised will take significant advances in thinking.

There were three components to the research that was undertaken for this paper. These were; a thorough literature review to identify key concepts, a survey of 64 dairy farmers, and four interviews with providers of solutions that utilise M2M communications.

A key finding from the research was that, M2M communication is currently having a limited impact on the dairy industry in New Zealand. The potential impact is much greater than what is currently being experienced. Attempts should be made to accelerate the rate of adoption in order t o increase the impact.

The information flow that M2M communication enables will help add value and ensure sustainability in the increasingly competitive, and volatile dairy industry. This paper recommends that an increase in the impact of the solutions that utilise M2M communication, can be achieved by:

  • Gaining a greater understanding of why and how technological change occurs.
  • Increasing the level of understanding of the technologies behind the solutions.
  • Prioritising the solutions that are going to give the greatest return on investment.
  • Industry collaboration around the direction of M2M communication.

M2M communication presents a great opportunity to be able to gain significant control of the dairy value chain. Today the technology is emerging and its impact is limited. This relative immaturity of M2M communication in the dairy industry, will eventually be overcome by time. It is the responsibility of all stakeholders in the dairy industry to play a role in maximising what is such a large opportunity, through the acceleration of its uptake.

Jeremy Anderson

Are there opportunities for faster innovation in the kiwifruit industry.

Executive summary

New Zealand is well known for being heavily involved in the primary sector and exports of horticultural crops are a significant part of the New Zealand economy. In particular the kiwifruit industry is of significant export value, contributing around $930 million towards a total horticultural export value of $3,901 million in 2014 (Statistics New Zealand, 2014). The area of land in kiwifruit production currently stands at around 12,000 hectares and is predicted to continue growing. The industry is looking forward to a promising future as it recovers from the bacterial disease Pseudomonas syringae pv. actinidiae (Psa) and experiences improvements in productivity and orchard gate returns (Zespri, 2014). 

Increasing returns to growers and increasing value of the industry is largely attributable to the premium pricing that New Zealand kiwifruit can achieve overseas. New Zealand kiwifruit is well recognised for consistent high quality and much of this is associated with the values associated with the Zespri brand, under which New Zealand kiwifruit is marketed. Zespri are grower owned and are focussed on the export and marketing of kiwifruit. Zespri do not export any other commodities. Further they are not directly involved in fruit production or post-harvest handling and storage of kiwifruit. Zespri kiwifruit are primarily sourced from New Zealand growers, however, as the company moves to provide a 12 month supply of fruit, sourcing from other kiwifruit producing countries has begun.

The kiwifruit industry in New Zealand is already relatively innovative in comparison with other primary sector industries. The different sectors of the supply chain all demonstrate an innovative side. Examples include, growers exploring tools like trunk girdling for improving fruit quality and plastic coverings for reducing disease impacts. Examples for the post-harvest sector include the implementation of controlled atmosphere storage for extending storage periods as well as research into and a move by some into using plastic rather than wooden picking bins. Zespri also have a strong focus on innovation, with innovation as one of the businesses four strategic pillars, a dedicated innovation team and an annual innovation budget that currently stands at around 1.5% of annual revenue. An example of Zespri’s innovation success includes outputs from the new cultivar development programme. This programme is ran in close collaboration with a key research partner. The kiwifruit industry has historically relied on the production of the green kiwifruit variety, ‘Hayward’, until a new, gold fleshed fruit was released as a result of the new cultivar development programme and following years of R&D effort. This variety extended Zespri’s product portfolio and it’s unique, sweet taste was highly desirable to customers, resulting in improved sales and in turn improved returns to growers.

The kiwifruit industry is not without its challenges. As kiwifruit production continues to increase in other countries, New Zealand kiwifruit and Zespri must stay ahead of competitors by maintaining strong brand positioning. A strong focus on innovation is recognised as helping businesses to remain competitive. Therefore Zespri and the wider kiwifruit industry need to maintain a focus on innovation and look for ways to improve the rate of innovation and the rate of innovation adoption.

The aim of this project was to explore how other successful companies utilise innovation to maintain competitive advantage and brand positioning and to see if there are lessons that can be learnt and adopted by Zespri to enable a faster rate of innovation and innovation adoption.

Mary Black

Antibiotics and dry cow therapy: What’s the problem.

Executive summary

There is global concern about food safety and the effect antibiotic use in animal production has on our ability to treat human infections in high profile “superbugs” such as MRSA. Antibiotic use in animals has come under significant scrutiny, with a call to reduce their use. Global consumer brands have increased the profile of this issue by announcing their desire to reduce antibiotic use in their supply chains. This has further fuelled public perception of the potential implications of antibiotic resistance.

New Zealand is a recognised leader in food production, particularly in dairy products, and it is the aim of this project to review how the use of antibiotics in this economically important sector may create both risks and opportunities.

Antibiotics are an important tool for treating disease and have a critical role in food production systems. By volume and importance, the greatest use of antibiotics in the dairy industry is for dairy cow mastitis (mammary gland infection) and in particular the treatment of cows finishing their milking season, known as dry cow therapy (DCT). In many cases whole herds are treated prophylactically with these antibiotics. In a competitive marketplace where many trade partners are seeking barriers to prevent imports and protect local business, this prophylactic, or blanket use, creates a potential market access risk.

After reviewing the literature and interviewing a cross section of stakeholders in the use of DCT, several conclusions were drawn.

Put simply, there are two ways to reduce the use of antibiotics and mitigate risk. The first is to reduce the number of animals needing treatment with antibiotics through improved integrated herd management, disease prevention and alternative treatment approaches. The second is the more judicious use of antibiotics, targeting known disease only and not treating the herd prophylactically. Both strategies reduce the volume of antibiotics used.

The management of disease in a production environment is complicated , creating a range of barriers to reduced and more judicious use of antibiotics. Broadly these are related to people, economics, technology and information.

To overcome these barriers and set the standard to which others aspire will require strong leadership. Education, science & innovation, and importantly, a focus on the principles of stewardship and a prioritisation of “food safety”, will be enabling. It will require support for our farmers and veterinarians and courage by industry leaders to question the status quo and be willing to continually set new standards for improvement.

This paper recommends that a national strategy is developed by industry leaders. This strategy should be inclusive, aspirational and bind stakeholders throughout the value chain, from producers to consumers. Regulation should be seen as a tool to be used sparingly to influence change. It is a change in culture that will create the sustainable leadership position desired. Most importantly the strategy and its leadership should aspire to position New Zealand product as t he gold standard for food safety.

Duncan Mackintosh

Red meat career pathway.

Executive summary

Currently the red meat sector does not have a clearly defined and documented pathway for young people to build a business to increase equity to pursue the goal of land ownership. Succession in the industry is a challenge as the average age of land owners is high beyond 55+.

The purpose of this research is to understand the current successful pathways selected entrants have followed to enter the industry. This was conducted by interviewing 12 farmers around the country who are currently in a process to build their equity. A range of questions were asked to gain an understanding of both how they got to where they are and where they are heading in the future.

There were three common pathways that were found through the report including Equity Partnerships, leasing land and buying undeveloped land.

The Equity Partnerships arrangements varied but they all had the common underlying goal to build equity. The options included investing in the operating entity or investing in the land owning entity and the operating entity . All young people managed the farms and either received a profit share which could be reinvested into the business or the profits were used to reduce debt or were invested back into the business through development.

The second option was the traditional leasing method. This method evolved from leasing one property to taking on more leases which gave the ability to create wealth. The disadvantage is that leases are usually passed on through word and mouth and are usually only the more run down properties available.

The third option was to invest in land that was undeveloped and not attractive to many people which gave the option to develop it while leasing other land to create cash flow to do so.

Primary ITO has developed a flow chart of the pathway through shepherding and farm management with the different training available at each stage which is a great pathway to learn the ropes of the industry.

The red meat sector is not the only industry that does not have a clear pathway. For example it is also difficult to invest in commercial property until you have enough equity to do so in which there is currently no clear pathway of how to get there in the industry.

The advice that was given by the 12 farmers interviewed included; the importance of networking and building relationships with key people, involving a team of people to support you, seeking opportunities, working hard, diversifying your income, getting the governance right before you enter the arrangement and taking the opportunities that present themselves.

In conclusion, there are currently people out there building equity to get to their goals but there is not always one pathway that fits all. The pathways vary depending on the opportunity that you get and the availability of support around you. But most importantly it can be done if that is what you want to achieve.

Kirsty Stratton

Success of rural cooperatives.

Executive summary

This report looks at co-operatives as a whole. To gain experienced insight into the rural sector co-operatives a number of high level management and directors involved with co-ops have been interviewed. Essentially looking to define the mechanisms operating within co-operatives to ensure their long term success in the rural community.

The Co-operatives section covers what they are, differences between a co-operative and a traditional privately owned company, types of co-ops and why belong to a co-op. Then we discuss the success of co-ops and look at definitions from references and also individual co-ops. The ratios of shareholder vs cash buyer/suppliers of co-ops that were interviewed are shown in a graph. Asking them to define success firstly and then to express ways they measure success and how often these measurements are consulted. Innovation, markets and technology are forever changing and to keep business sustainable co-ops need to embrace these changes.

Co-ops don’t exist without the loyalty of their shareholders and it is one thing to join a co-op initially but what keeps a shareholder loyal and what measures do co-ops take when that loyalty is waivering? Also covered is the two way mechanism of co-op loyalty to the shareholder as that is often questioned by shareholders of producer co-ops when concerned about receiving income for their stock. The power of the individual versus the power of the co-op can be a very powerful factor and has been expressed time and again and can come from any section of the company. Some co-ops have said they place emphasis on it while others have less regard for this factor.

The decisions made by co-ops can be a turning point for them so it is important to understand how they are made, the process used and then also the accountability of those making the decisions. Finally the warning signs of co-op failure are covered. The interviewees have experience with co-ops both as shareholders and as management or directors so know the warning signs to watch for if their co-op is starting to struggle.

Sarah Heddell

Success for the Maori primary sector is success for all New Zealand.

Executive Summary

The present National Government has identified policy and priorities relative to the New Zealand’s economic outputs and opportunities. Within the set of priorities they further determined that the ‘Maori economy’ in particular has the ability to contribute significantly more to the overall economic strategy for New Zealand, both domestic and export. This view is reiterated and presented through government policy and subsequently by the various ministries including Treasury. This focus on the Maori economy is not new, however there is an increasing emphasis by this government and its political allies to ‘grow’ the Maori sector at a faster and improved rate to whatever other sectors it sits alongside.

Further to this the Government has set an ambitious goal for New Zealand; to increase the ratio of exports to GDP from the current 30% to 40% by 2025. This will require a concentrated effort to encourage investors to develop more internationally competitive businesses, in both the commodity and high-value technology-based sectors. Setting this goal ensures the Government remains focused on supporting the confidence and growth of our high productivity export firms (Hon. Ministers Joyce & English, The Business Growth Agenda, 2012).

The present National government instigated a Maori Economic Development Panel in 2012 . This panel is mandated to seek to improve Maori GDP per capita to equal that of the average GDP per capita by 2040. GDP contribution by Maori needs to be proportionate to the Maori population, ~ 15%, at the very least (Strategy 2040, Maori Economic Development Panel, 2012).

Research Question:

This report will attempt to answer the question: “Is the Maori contribution to regional GDP through agribusiness appropriately understood and quantified?”

For the purposes of this report it is necessary to first define the Maori Economy. The literature does not give a single definition however New Zealand’s Treasury have identified some clear parameters they use as defining the Maori economy through the Maori Asset Base. They state:

The Maori economy and asset base has grown significantly over the last 100 years. As such Maori and Iwi increasingly contribute and play a key role in New Zealand ‘s economy. Maori contribution to the New Zealand economy is multi-faceted and includes the primary sector, natural resources, small and medium enterprises and tourism.

…the government’s lead economic advisor is working with agencies across the public sector to support the growth and development of the Maori economy.

In 2001 the asset base of the Maori economy was estimated to be worth $9.4 billion, this figure rose to $16.5 billion by 2006, and we now estimate it was worth at least $36.9 billion in 2010. The Maori asset base includes:

  • Businesses of employers $20.8 billion
  • Other Maori entities $6.7 billion
  • Businesses of self – employed Maori $5.4 billion
  • Trust and incorporations $4 billion. (BERL (2010), The Asset Base, Income , Expenditure and GDP of the 2010 Maori Economy)

It should be noted that this definition of the ‘Maori’ economy specifically is drawn from political interests and does not necessarily meet the definition of those who identify as Maori and may or may not participate in the economy in the way policy and academics define. The Western worldview is somewhat reductionist and uses definitions to support a very specific understanding of terms and activities. Indigenous interpretations are generally more holistic in their definition, and, as an example, Maori would likely expect any definition of a Maori economy to somehow align to a cultural association ahead of any other factor. The policy definition of the Maori economy above will be held for this report.

2015 Nuffield Scholars

Nuffield New Zealand and Primary Industries Minister Nathan Guy have announced the scholarships at a function in Wellington.

From West Coast dairy farmer Bede O’Connor.

Woodville dairy farmer Ben Allomes.

Rotorua-based DairyNZ regional leader Sharon Morrell.

Whanganui farmer, entrepreneur and conservationist Dan Steele.

And Fonterra employee Satwant Singh from Morrinsville.

The five new Scholars join more than 145 others who have been awarded Nuffield Scholarships in the past 60 years, which has been a substantial investment in New Zealand agriculture’s past, current and future leaders, says Nuffield NZ chairman Julian Raine.

“Only a handful are awarded each year so a Nuffield Scholarship is one of rural New Zealand’s most valuable and prestigious awards. To be a Scholar is a life-changing experience.”

The Nuffield NZ Scholarship offers the opportunity for overseas travel, study of the latest developments in a number of leading agricultural countries and provides an introduction to leaders and decision makers not accessible to the ordinary traveller.

One of the current 2014 Scholars is Palmerston North potato grower, agricultural contractor and equity dairy farmer Paul Olsen.

“It has been a brilliant experience for me, seeing other countries and a variety of cultures, mind boggling but also eye opening. New Zealand has a huge opening for the future, in terms of things like food proteins and niche products, it’s there for the taking. It’s a massive opportunity for us to take on the challenge.”

Olsen says the Nuffield name opened many doors. “I visited some massive operations – people wouldn’t hold back. It was 100 per cent nuts and bolts business information you wouldn’t get any other way.”

He says the contacts made and networks formed will last a lifetime.
“I made some very strong contacts and friendships, especially through the UK, Ireland and Scotland. Many of them are coming to stay here in the next 18 months or so as well, either travelling individually or finishing their own Nuffield Scholarship travels.”

Nuffield Scholars travel internationally for at least four months in their Scholarship year (not necessarily consecutively), participate in a Contemporary Scholars conference with 60 Nuffield Scholars from around the world and attend a six-week Global Focus Programme with an organised itinerary through several countries with other scholars. They also have their own individual study programme with a research report due at the end of their travels.

The 2015 research topics are likely to cover issues such as

  • the internal growth potential of China;
  • recognising and utilising New Zealand’s greatest asset – its people;
  • farming communities’ responses to changes in environmental regulations or other constraints;
  • the potential of “Brand New Zealand” and how having communities involved in conservation will show value in looking after the environment;
  • farmer understanding of their financial and overall business health focusing around budgeting, risk management, stress levels for farmers, suicide levels and farming pressure.

More about the five 2015 Nuffiled Scholars.

Bede O’Connor, West Coast

West Coast dairy farmer Bede O’Connor is milking 340 cows on 170 hectares near Westport and is an elected director of the Westland Dairy Co-op.

O’Connor, 43, has achieved a 25 per cent increase in production over the past three seasons after purchasing his family’s farm in 2011.

He would like to develop a self-sufficient farming system to combat the influences of more frequently occurring climatic events. He is a member of the West Coast TB Free Committee, West Coast Rural Support Trust and the West Coast Focus Farm Trust.

He was a regional judge for the Dairy Industry Awards Trainee of the year and is an active member of West Coast Federated Farmers.


Sharon Morrell, Rotorua

Sharon Morrell is a regional leader with DairyNZ in Rotorua. Her role is a mixture of direct farmer interaction and leading a small team running discussion groups, field days and workshops. She also works alongside strategic partners, including the BOP Dairy Stakeholders Group.

After gaining a Bachelor of Agricultural Science Morrell worked as a MAF farm advisor. With husband Ross she has worked on farm and raised four children.

She did some supervisory and consultancy work before moving to DairyNZ in 2010. She attended the Kellogg Rural Leadership programme in 2011.

Dan Steele, Whanganui

Dan Steele is a farmer and conservationist living and working on Blue Duck Station – a 1460 hectare sheep and beef station and conservation project at Whakahoro, surrounded by Whanganui National Park.

After working with his parents on the neighbouring Retaruke Station for seven years, Steele built Blue Duck Lodge in 2005, started Blue Duck Station in 2006 and founded the Wild Journeys commercial jet boats partnership in 2010.

Steele is involved with the Ruapehu Regional Tourism Organisation (Visit Ruapehu), Ducks Unlimited, NZ Wetland Care and the Whanganui National Park Conservation and Historic Preservation Trust.

Satwant Singh, Morrinsville/Auckland

Satwant Singh works for Fonterra during the week and on the family dairy farm near Morrinsville at the weekends.

Singh, 30 and her husband Sunil Krishna live in Auckland – during the week she is part of the Fonterra Commodity Risk and Trading team as an Originator. One of her achievements is the Guaranteed Milk Price programme for farmers.

She became an area manager for Fonterra in Morrinsville (2008-2012) after working as a Service Specialist for Fonterra (2006-2008).

Singh has a Bachelor of Management Studies with Honours (Majoring in Marketing and Human Resources) and a Graduate Diploma in Accounting from the University of Waikato.

Ben Allomes, Woodville

Dairy farmer Ben Allomes and wife Nicky own a half share in an 850-cow farm at Woodville; are 50/50 sharemilkers on a 400-cow farm at Woodville and a 215-cow property at Ruawhata; and also lease two other properties.

Allomes is a farmer-elected DairyNZ director and on their local school Board of Trustees. He has been heavily involved with NZ Young Farmers, Primary ITO, Dairy Industry Awards, Fonterra Network and DairyNZ.

While president of Young Farmers, 2007-2009, he helped to restructure and reposition the organisation and jointly led the development of the NZYF leadership “Pipeline” programme now adopted by industry “Generate” Steering Committee.

How can self-awareness and self-reflection ignite a farmer’s motivation to engage in leadership.

Executive Summary

Changing economic and social pressures in the rural sector mean farmers need to change the way they act and react to challenges if they want to survive and thrive. Strengthening rural leadership has been identified as a key opportunity to help famers to respond and adapt to their changing environment both on-farm and with in their wider sector. From the findings of my research, self-awareness and self-reflection are two recognised traits that show strongly in farmers who are performing well in leadership positions. The link between self-awareness and leadership is strong (Musselwhite, 2007), but the understanding of this link by farmers is limited.

By understanding their past, their experiences and actions, and connecting that with their personality type and leadership style, farmers will be more empowered and prepared to step into the leadership roles that are required to ensure the agriculture sector remains vibrant and adaptable in the future. When a farmer makes time to learn about and reflect on their past experiences, it creates a lightbulb moment.

This lightbulb moment creates an ignition of thought which stimulates them to seek what they need to learn about their leadership style and where they are best suited to contribute their leadership skills. Everyone has the potential to be a leader, whether in their own personal business or the wider sector. To understand this and make a conscious decision to place themselves in an area that is best suited to them, farmers then ensure their effort will provide the biggest benefit to themselves and those around them.

How can self-awareness and self-reflection ignite a farmer’s motivation to engage in Leadership – Ben Allomes

Why being true to brand New Zealand is the best option for New Zealand agriculture.

Executive Summary

We have inherited a brand. New Zealand was the last major land mass on earth to be colonised by humans, it is distant from most of the world’s population and has beautiful scenery and biodiversity. This brand is about a safe, unspoiled last paradise, or to quote a Rudyard Kipling poem: the “last, loneliest, loveliest, exquisite apart — ”. Brand New Zealand has been used for many years to sell our products and services around the world and in recent times Tourism New Zealand has built a marketing strategy around it, 100% Pure.

This study has come about because of a genuine belief that New Zealand is the greatest country to live in on earth. We are however regressing in some critical ways. The author believes we can stop the regression and build a robust and resilient economy without significant environmental loss. People are realising more and more the interconnectivity of all things on earth, human health with environmental health, our actions on environmental health and at the same time becoming globally connected within an instant by modern media. We are still perceived as clean and green by most of the world, and compared to many countries we are. Because of our position in the world, our brand and our demonstrated conservation leadership, we have a huge opportunity to leverage our economy into a higher value sustainable space that could be the envy of the rest of the world.

A Nuffield Scholarship has enabled the author to investigate this vision – including two international research tours, a study of international visitors and a survey of business and environmental leaders. It has helped him to learn, grow and gain a perspective, and now he can share what he has learnt This report studies the reasons why being true to Brand New Zealand is the best option for New Zealand agriculture. The aim of this study is to show that New Zealand, and particularly our farmers, need to be ahead of the game, stay relevant and have products in high demand in order to survive in a rapidly changing and sophisticated global marketplace. This report looks at the advantages as well as possible pitfalls this approach could entail.

The author was raised in backcountry New Zealand, travelled the world as a young man and learnt how lucky we are to live in this country. He built an eco-tourism farm in the backcountry and realised that we need to unite to look after New Zealand. Individual conservation efforts will never achieve as much as a combined and collaborative strategy will. From the world study and surveys conducted we know that New Zealand’s environment is hugely important to everyone; it is in fact the backbone of our economy.

Based on all that has been learnt or gleaned from the scholarship study, the following recommendations are made to help kiwis build a healthier, wealthier, more sustainable future:

  1. New Zealand should develop a positive and engaging environmental vision that consolidates the aspirations of multiple key industries and the public in protecting what makes us famous.
  2. New Zealand’s 100% pure image is our competitive advantage . As a nation we must strongly question any thing that is counter – productive to our brand.
  3. The world is not short of food but healthy, quality products are in demand. New Zealand must align with what the world wants.
  4. We can adopt and adapt best practices from other parts of the world. A more formal study should be completed of nations that are managing their environments well and strengthening their brands.
  5. We need strong industry leadership to build some collaborative goals between agriculture and tourism. For example Federated Farmers and Tourism Industry Association could build a co m bined strategy that is mutually beneficial to the New Zealand story.
  6. An economic shift towards value – add food and beverage production and visitor experi ences should be developed.
  7. As international tourism to New Zealand continues to grow, we need to ensure that these visitors become customers of our produce and then go onto become ambassadors telling our story on our behalf .
  8. Agriculture needs an education plan showing farmers what the affluent of the world are demanding: traceable, higher quality products with a story.
  9. Educate New Zealand to realise that complacency is the biggest threat to t he future health and prosperity of our nation. Every farm needs a conservation strategy that is being put into action.
  10. As a nation, we need to find innovative ways to increase our environmental spend by exploring more diverse sources of revenue for conserv ation.
  11. New Zealand should implement visionary conservation programmes such as Predator Free New Zealand that will demonstrate our commitment to safeguarding our natural assets and engage people from all walks of life.

In summary we have a huge opportunity to lead the world in clean green living and to leverage serious economic benefit from this. The author believes these recommendations would strengthen our brand and start steering us in the right direction to supplying affluent consumers healthy products and experiences. The world is waiting for leadership around global issues such as climate change, resource use and safety. New Zealand can do it, let’s pull our socks up!

 Why being true to brand New Zealand is the best option for New Zealand Agriculture – Dan Steele

Accepting Price Volatility or Managing for Price Stability is a choice.

Executive Summary

NZ dairy farmers are directly exposed to uncertainty and fluctuations in commodity pricing. Over the past ten years external factors have had a significant impact on dairy farming businesses, leading to increased financial pressure, delayed investment plans and solvency issues.

New Zealand (NZ) dairy farmers have been left behind. Sophisticated and diverse price risk management (PRM) tools are a vailable to our competitor farmers in the USA and Europe. This will impact NZ’s industries competitive advantage on the global market in the years to come. Farmers need to be prepared with a plan and strategies to manage price risk.

PRM tools are well advanced and diverse for farmers in parts of Europe and USA compared to tools available to NZ farmers. These tools vary from simple forward fixed prices in Europe to a variety of flexible hedging tools in USA. Processors, milk marketing companies, cooperatives, and/or financial brokers provide ease of accessibility to the tools and in depth information to help farmers utilise the tools, thus providing key competitive countries with an advantage.

These PRM solutions enable farmers to transfer the price risk to someone else via a processor or a futures exchange and experience the benefits of a stable profit margin. The choice to have stable or volatile profit margins has provided some farmers with different advantages. These include enabling new farmers to enter the industry with confidence, helping some farmers to grow their businesses with certainty and others to have the ability to manage debt and achieve their goals.

The introduction of PRM tools is relatively new to the NZ dairy scene and options are not readily available. PRM is a developing area and the availability and flexibility of the tools will depend on farmers understanding of the tools, demand for the tools and adoption of PRM. Further support by the industry is essential. Areas of support include more PRM tools, risk management decision making tools, margin calculators and or information that will help farmers understand their price risk and make an informed PRM plan suitable for their individual situation.

 Accepting Price Volatility or Managing for Price Stability is a choice – Satwant Singh