2024

The agrifood sector in New Zealand faces challenges in developing leadership among midcareer professionals, particularly those aged 30-50 who often find themselves in a “missing middle,” with initiatives aimed at early career, and insights sought from current leaders.

This study examines how leadership development opportunities can be strengthened, using the question: How can leadership development opportunities be enhanced to support Aotearoa New Zealand food and fibre professionals in the growth phase of their careers?

The objectives were to assess current development initiatives, analyse challenges, and offer strategic recommendations to better support mid-career professionals. This work is critical, as a robust, inclusive leadership pipeline ensures the sector’s adaptability and sustainability, preparing it for future challenges and innovation.

The research combined a literature review with qualitative data from a digital survey and indepth interviews involving a diverse set of sector professionals. Themes were analysed to develop comprehensive recommendations.

Key findings

Leadership gaps: Opportunities are fragmented, often inaccessible, and lack inclusivity. Without dedicated development for mid-career professionals, the sector risks a stagnated leadership pipeline, where experienced individuals lack the growth opportunities needed to step into higher leadership roles effectively.

Compounding barriers: Time, financial constraints, personal circumstances, and cultural biases hinder access to leadership development. If these barriers are not addressed, there will be ongoing inequities in leadership accessibility, potentially exacerbating talent shortages and reducing sector-wide innovation as diverse perspectives are left untapped.

Cultural shift: There is a need to redefine leadership, emphasising diversity, cross-sector collaboration, and continuous learning. Embracing more inclusive and diverse leadership approaches will improve organisational adaptability and attract a wider talent pool, fostering a more resilient and innovative food and fibre sector capable of responding to future challenges.

Recommendations

• For current leaders: champion inclusion of diverse perspectives, ensuring equitable access to opportunities and roles that leverage lived experience.
• For existing initiatives: Explore opportunities to include diverse perspectives, including the use of technology to enhance equitable access.
• For individuals: articulate your values, drivers, and “why”, and use these to identify where you can add value and feel valued.
• For myself: Investigate implementing a digitally based pan-sector mentoring programme, and investigate multimedia, multichannel storytelling of diverse leaders

Nā tō rourou, nā taku rourou, ka ora ai te iwi.

With your food basket, and my food basket, the people will thrive.

This project aims to ensure the sustainability and economic viability of mushroom growing in New Zealand by exploring and implementing alternative casing materials and mitigating the risks associated with peat reliance.

Mushroom farmers around the world have long used peat as a key ingredient in mushroom growing. Due to its unique characteristics, peat makes an excellent casing material as it is:

• Widely available, low cost, contaminant-free, low pH, and highly water-retentive
• Aerated enough to create microclimates perfect for efficient mushroom growing at a commercial scale e.g. maximises yield and minimises harvesting labour costs

This project seeks to explain the characteristics of why peat is such a great medium for growing mushrooms. It is very difficult to get an alternate product that is more sustainable and will deliver the same financial results as peat.

While much work has been done on peat alternatives, there is still no clear pathway from peat. If anything, the problem will only get more significant as demand for peat increases over the coming years. Peat mining is only coming under more pressure, with countries like Germany setting targets of 2030 to ban all peat mining. There is also the diminishing social licence and more pressure from supermarkets, especially in the UK, where they ask for peat- free mushrooms. As it stands, there is little to no pressure from the government or the supermarkets here in New Zealand. From the interaction and interviews conducted for this project, it looks like this is only a matter of time before New Zealand follows in the footsteps of other European countries.

From the research conducted, there is a lot of scepticism around peat alternatives particularly from mushroom growers who view any other medium other than peat used as a casing soil is going to be more expensive, yield less and have lower quality than peat. Farm owners and growers are under more and more pressure to manage costs and see peat replacement as just that.

From the trials conducted wood fibre blended with peat at 30% rate delivers the same results as 100% peat casing.

Wood fibre mixed with peat only makes sense for countries that rely on imported peat. It is here where the efficiency gain in the logistics of the wood fibre make it economically viable over bulk peat.

New Zealand agriculture must find innovative pathways to address climate, regulatory, and social requirements while responding to international commodities markets. This report explores key inflexion points for prioritising sustainable practices while enhancing market opportunities for the NZ primary sector. The research included a comprehensive literature review of the supply chain and mechanisms for regulating (policy), incentivising (biodiversity credits, subsidisation, supplier premiums), and creating value in the marketplace. In addition, 9 semi-structured interviews with key stakeholders generated insights and sentiment towards levers for innovation. Interview responses and literature supported market value as a fundamental driver of sustainable innovation. However, a disconnect was observed across industry stakeholders towards levers for innovation (e.g. biodiversity credits, supplier premiums, and regulation).

Farmers and consumers as opposing ends of the supply chain are points of inflexion that could drive systemic transformation but require incentivisation, regulation and support from the wider industry through a collaborative value chain (CVC). Traits inherent to a CVC include stakeholder collaboration through market intelligence, information dissemination, and stakeholder responsiveness. Independent extension helps to connect stakeholders disseminating market signals and channelling innovative ideas to early-adopter farmers. Export commodities are supported by natural capital: fertile soils, pristine landscapes, and a temperate climate to support pasture growth. While NZ is capital-poor, investment in natural capital is vital for ensuring the sector can support future generations.

Primary Recommendations

1. Adoption of a CVC by all stakeholders of the supply chain through independent market intelligence, information dissemination and responsiveness to market signals.
2. Regulation and incentivisation specific to the biophysical context (land use, region, catchment etc.) which set clear long-term boundaries.
3. Knowledge transfer through an independent extension system to glue innovative farmers with new ideas, and foster science commercialisation.
4. Farmer-led initiatives connecting early adopters/innovators with those requiring more evidence to generate volume that can be leveraged across the wider value chain.
5. Honesty in branding to tell our authentic story and emotionally connect to consumers
6. Industry-level discussion on biodiversity credits: as a verification tool using remote sensing technology, to incentivise, increase awareness and diversify income.

This research report explores Kaitiakitanga, a guiding principle rooted in Māori values of guardianship, whakapapa (genealogy), and tikanga (customs) that sustain the people and land of Te Moana a Toi (Bay of Plenty). Anchored in a Kaupapa (agenda / topic) Māori research framework, the study delves into how Māori land trusts and incorporations exercise Kaitiakitanga in their governance and land management practices to build hei taurikura (people thriving with prosperity). Drawing from both literature and kōrero kanohi ki te kanohi (face-to-face interviews), the report emphasizes the whanangatanga (kinship) responsibilities guiding the relationship between tangata whenua (people of the land) and their whenua (land), aimed at ensuring hei whakatupuranga hou (intergenerational well-being).

Key Findings:

The research highlights that Kaitiakitanga is a holistic practice deeply embedded in tapu (sacred or spiritual), Tikanga (cultural protocol), and practical actions. It emphasizes protecting and enhancing mauri (life force) and upholding mana (authority) across generations. Whakapapa and whanaungatanga form the foundation of Kaitiakitanga, creating a duty to care for the whenua and its people, not only for current needs but also for future prosperity. This connection to the land transcends physical responsibility, embodying a spiritual obligation rooted in Tikanga.

Additionally, the findings underscore the importance of daily rituals, such as karakia (prayer), which maintain spiritual balance and reinforce the sacred nature of kaitiaki roles. Integrating these practices into governance ensures decisions align with cultural and ecological values. Examples from Māori land trusts demonstrate how economic and environmental priorities can coexist. Initiatives like sustainable horticulture and conservation efforts, including native forest restoration and pest control, illustrate the successful blending of traditional knowledge with modern practices. The theme of intergenerational stewardship emphasizes prioritizing long-term sustainability over short-term economic gains for the benefit of future generations.

Recommendations:

• Embedding Kaitiakitanga in Governance: Integrate tikanga into organizational culture, making karakia, whakawhanaungatanga (to build relationships), and Te Reo Māori (Māori language) core practices. This approach enhances collective well-being and aligns cultural values with organizational success.
• Cultural Practices as Foundations: Use karakia for spiritual guidance and adopt tikanga such as whakatau (cultural greeting protocol) and manaakitanga (hospitality) to foster whanaungatanga (kinship or family like relationships) and respect, creating a culturally vibrant environment.
• Kaitiakitanga in Investment Policy: Align investment strategies with Kaitiakitanga by setting sustainable goals, balancing assets, and establishing accountability to ensure environmental stewardship.
• Mauri Compass for Ecosystem Health: Use the Mauri Compass to monitor and restore ecosystems by protecting taonga species, integrating Mātauranga Māori with science, and guiding resource management to sustain mauri.
• Cultural Impact Assessments: Conduct thorough cultural assessments to respect the spiritual significance of land and waterways, guiding decisions to uphold Kaitiakitanga values and minimize environmental impacts.

The dairy industry is a rapidly changing and challenging environment. Therefore, the industry needs to attract the best and brightest to continue to be world leading. One way to attract the best talent is to show the career pathways and opportunities available. This research project seeks to understand how young dairy farmers in Northland have got ahead and to learn from their examples and experiences.

A literature review was completed to understand how career pathways in the dairy industry have evolved and the diDerent options available; contract milking, lower order sharemilking, 50/50 sharemilking, leasing and equity partnerships.

Qualitative research was completed in the form of semi structured interviews with nine Northland dairy farmers who had either recently progressed to farm ownership or are sharemilking. Thematic analysis was completed to identify patterns within the interviews. Patterns were collated to understand the meaning behind the data.

This report confirms that the career pathway of young dairy farmer is not a straightforward one; there were multiple and varied pathways for progression. These ranged between directly from farm manager to farm owner, to using a range of diDerent operating models including equity partnerships and leases. Some interviewees had achieved the goal of farm ownership while others preferred to continue larger scale sharemilking rather than moving into farm ownership at a smaller scale.

The report also highlights six key themes important to the career progression of a dairy farmer; finding the right opportunity, equity gains from stock, access to capital, a good support team, business planning and developing leadership capabilities.

From these key themes, six recommendations are made to farmers looking to progress and three recommendations are made for the wider industry to support progression.

Recommendations for farmers:

• Build reputation to secure the right opportunities
• Get into stock as early as possible to grow equity
• Make a plan for accessing capital
• Network to create a support team
• Have a business plan
• Develop leadership capabilities

Recommendations for industry:

• Reinstate and expand the Extension 350 programme
• Support young farmers entering contracts
• Consistency and clarity needed from banks

Aotearoa’s agricultural sector plays a key role in the nation’s economy and sustainable future. It is a key driver of the country’s future economic prosperity, with exports from it projected to reach $67 billion by 2030.

However, this prosperity faces significant challenges. Access to capital is constraining the sector’s sustainability, productivity, and transition to the next generation of farmers. Traditional funding models, heavily reliant on debt, no longer fit the needs of the next farming generation. The sector needs to adapt current funding models and explore innovative funding approaches that bridge this growing capital gap, forecast to reach between $110 billion and $125 billion by 2050.

This report investigates these. The findings and recommendations offer approaches to delivering patient capital models and assisting in the development of investable and highly productive farming businesses in the face of future challenges.

Methodology

This study explores the sector’s capital constraints, why the current model is no longer fit for purpose and alternative funding models through a literature review. It supplements this with a qualitative analysis of insights from 13 semi-structured interviews. These insights are synthesised using thematic analysis, compared against the literature review, and identified opportunities to support the sector’s next phase of growth.

Key Findings

Analysis of the key themes from the literature review and interviews found that:

• Current debt-reliant capital models are not fit for -purpose, particularly given the looming climate challenges and the productivity goals we want to achieve for better standards of living.
• Regulatory and structural challenges exist in current models that would benefit from adjustment, such as loosening capital holding requirements for Agri lending and restrictiveness on foreign direct investment.
• Alternative sources of debt and capital are important to assist with the investments required.
• It is important that this capital does not just simply funnel into corporate models as it has in the past. These entities often underperform compared to the traditional owneroperator due to lack of the “love” differential, which is a key driver of profit.
• A hybrid ‘owner-occupier/corporate model’ may be a solution that retains the characteristics of individual ownership and ‘boots on the ground’ while adopting some of the processes, disciplines and financial acumen typical of larger corporate structures. This makes the placement of different forms of capital more viable while maintaining a profitable hands on approach.
• Farmers entering this model would likely need support to build deeper commercial acumen to develop bankable/investable opportunities.
• Advisors have a key role to play in this to support farmers, potentially alongside industry bodies exploring a start-up incubation-type approach.

Recommendations

For Policy Makers:

• Review capital holding regulations requiring the main banks to hold more capital on Agri loans.
• Review current Overseas Investment Office regulations that governs Foreign Direct Investment to make New Zealand less restrictive on foreign capital investment flows, focusing on greater economic benefits while protecting our unique values and world view including that of whenua Māori and Te ao Māori.

For Lenders:

• Explore alternative working capital models
• Utilise sustainable lending as a tool to incentivise all environmental improvements, not just as a tool for new lending

For Processor Partners:

• Explore the provision of working capital support to assist new entrants into the market hedged by future production.

For industry bodies:

• Explore expanding advisory support and training for growth-oriented new farmers; cross-pollination between the entrepreneurial start-up sector and models like incubation and acceleration to support entities to be “capital-ready” and innovation-led
• Support and expand on initiatives like the Dairy Graduate Programme

For Institutional Investors & Private Capital:

• Develop an Agri-investment strategy
• Collaborate with key industry advisory players to explore a model that provides a vehicle to invest in smaller transaction sizes to reduce the risk of corporate nonperformance and diversify portfolio

For Farm & Agri Advisors

• Further develop the financial advisory aspect of your practice to support farming businesses in developing their business acumen.
• Support farmers to develop an ‘Owner Operator/Corporate hybrid model’

For agritech entrepreneurs

• Explore opportunities in the development of agritech/fintech solutions both in the data aggregation space for credit and risk management as well as in retail investment models into agriculture

For Farmers:

• Develop a clear view of your goals & vision and where different forms of capital fit within this; the same model won’t fit all
• Be open to exploring different capital models to assist you in reaching your goals
• Consider exploring an ‘Owner Operator/Corporate hybrid model’ with external investment partners
• Grow your understanding of your financial and risk profile
• Work with trusted advisors on developing your farming business model and building business acumen to be able to present this to potential partners, lenders and investors.

The dairy sector is a cornerstone of New Zealand’s economy, contributing significantly to national and regional prosperity. In the year ending March 2023, dairy exports generated nearly $26 billion, making up about one in every four export dollars. The dairy sector also provides substantial value-added contributions, delivering $11.3 billion to the economy.

Dairy farming supports regional economies by creating well-paying jobs and sustaining local communities. For example, Canterbury alone generates nearly $3.75 billion from dairy and employs around 55,000 people (DairyNZ, 2023).

Although there is a strong dairy economy around New Zealand, not every farm is prospering and there can be significant differences in profit across New Zealand dairy farms and within regions. The root cause of these variances are not always clear or consistent, but there is strong evidence to suggest that it is largely driven by technical and decision making skills of the individuals making the decisions for the farms.

So what are these skills? This research paper aims to look into the skills with a high correlation with profit and explores the possible impact of strengthening these skills both on a micro and macro scale. By focusing on key skills that drive profitability, both individual farms and the sector as a whole can achieve greater economic well-being and resilience.

Objectives include comparing regional skill levels, investigating influencing factors, and developing recommendations to improve skills on less profitable farms. The study will assess the opportunities to improve farm profitability through training and education. Aiming to provide strategies for continuous education and professional development to boost profitability and support the dairy industry’s growth.

The methodology involves utilizing DairyNZ’s DairyBase system to gather comprehensive data of on farm performance across various regions in New Zealand, focusing on key performance indicators (KPIs) related to profitability. The collected data is analysed to identify high and low performing farms based on profitability metrics, categorizing them into respective groups for further analysis. Quantitative analysis is conducted to identify patterns and correlations between skill levels and farm profitability, using statistical methods to determine the significance of various factors that correlate highly with profit. Finally, the industry data is used to identify skills or areas that have the highest impact on farm profitability and the impacts this could have at individual farm, regional and national levels.

The key findings emphasize the importance of strategic business management, identifying and addressing gaps, and regional analysis for improving farm profitability. Strategic business management involves taking a step back to gain perspective through benchmarking, business planning, and financial analysis. This helps farmers pinpoint areas needing improvement and understand the economic impact of various practices and investments.

Regional analysis of DairyBase data from Waikato and Canterbury highlights that highly profitable farms excel in maximizing pasture and crop consumption per hectare, minimizing operating expenses, and achieving high labour efficiency. These areas show the most significant correlation with profit. Training opportunities should be made available to farmers to support development in these areas, as improving these skills could lead to substantial economic benefits for both individual farms and the sector as a whole. Further research into skills with a high correlation with profit is recommended to enhance the overall prosperity of the dairy industry.

Recommendations for Decision-Makers:

Training Providers: Develop and deliver targeted training programs focusing on both strategic and operational aspects of dairy farming. This includes financial management and planning, benchmarking and performance analysis, pasture and crop management, operational efficiency, and leadership development. By offering these programs as micro-credentials, formal recognition of skills and knowledge can be provided and it also allows for courses to be funded, making the training more attractive and accessible to farmers.

Industry Bodies: Support and promote these training initiatives to ensure widespread adoption. Highlight the importance of strategic planning and operational efficiency in improving farm profitability. Encourage farmers to participate in these programs by showcasing success stories and providing resources that make it easier for them to engage in continuous learning.

Farmers: Investing in training for both oneself and the workforce can significantly enhance farm operations and profitability. It’s important to understand the business and individual situations, look for opportunities to benchmark the business through systems such as Dairybase, and then consider opportunities for improvement based on the findings, whether in business, technical, or operational skill development.

Other Stakeholders: Banks, dairy processors, and other sector partners should encourage and recognize the completion of these training programs. For example, banks could offer better loan terms to farmers who have completed financial management courses, while dairy processors could link incentives with accreditation of training which supports business resilience, efficiency and sustainability practices. By fostering these partnerships, the sector can create a supportive environment that values continuous learning and improvement.

By providing targeted training programs in strategic and operational aspects of dairy farming, the sector can enhance farm operations and profitability. Industry support and incentives from stakeholders will foster continuous learning, benefiting both farmers, the sector and the NZ economy.

With a changing New Zealand climate causing more frequent and more severe dry spells, including in regions previously seen as less vulnerable, the reliability of supplying food to meet our goals and expectations is in question. As we are fortunate to have available freshwater, irrigation has been widely used in certain regions to combat the dry. If future irrigation is proposed, farmer uptake is crucial to the success of the scheme, but farmers need to understand if it can work for them or if the required change is too great.

The problem is, how does a pastoral farmer, when presented with or investigating an opportunity for irrigation water supply, know whether taking up the opportunity will provide an overall benefit? Not just to the farmer but will it be sustainable for the environment and their community hence the question of Is the Grass Greener under Irrigation?

The aim is to provide an informative resource for would-be irrigation users by firstly understanding the climate predictions, available water and current Irrigation in New Zealand, Then the known impacts and opinions of irrigation are analysed before answering the research question as to the overall benefit, or otherwise of irrigation to pastoral farmers.

Research methodology involves a literature review, to ensure context for the topic and to critically analyse existing research and studies relating to the report objectives. This is followed by a series of semi-structured interviews with professionals and a survey of existing pastoral users of irrigation with thematic analysis used to identify the key themes.

Key findings include:

New Zealand is experiencing climate change meaning the North and East of the country will experience a higher frequency of drought (National Institute of Water and Atmospheric Research, n.d.) but fortunately New Zealand has a relative abundance of freshwater at four times the global average (Business and Economic Research Ltd, 2019).

Over 900,000 hectares of land is currently irrigated in NZ (Irrigation New Zealand, n.d.). It was found that the introduction of irrigation often brings about three waves of ownership change and land use change (McCrostie Little & Taylor, 2001). The required change can have a strong impact on lifestyle and well-being.

Nitrate leaching and unsustainable water use are widely regarded as the major concerns resulting from agricultural intensification (Te Ara, 2024). It is argued that whilst irrigation enables agricultural intensification, irrigation is not the main contributing factor to poor water quality however, improved irrigation management and technology adoption can significantly reduce the overall environmental impact.

Irrigation contributes significantly to the economy with estimates that irrigation, including beyond the farm gate, adds at least $5.4 billion to NZ’s GDP (Corong et al, 2014, as cited in Irrigation New Zealand, 2018). In dryer regions, irrigated land produces three times as much produce as the equivalent area not irrigated (Heiler, 2008, as cited in Te Ara, 2024). This supports the primary purpose of irrigation in pastoral farming: Improving pasture reliability and productivity (Mcbride 1994). The additional feed produced under irrigation comes at a greater cost so ensuring a high return from that production is vital.

The recommendations to would-be irrigated pastoral farmers are to consider if adopting irrigation and potentially changing their farming system and lifestyle will align with what is important to them. Also, measuring and recording data is imperative to understand how irrigation will affect the property. Lastly, before adopting irrigation, farmers should complete a cost-benefit analysis of the many variations of their existing system and potential systems and land uses under varying proportions of areas irrigated.

New Zealand sheep and beef farmers can face volatility from multiple directions at any one time. Particularly in the form of unpredictable climatic conditions and fluctuating product values/input costs. When these occur simultaneously as many farmers have recently experienced, it puts a tremendous strain on the farmer’s businesses, and the farmers themselves.

The following report aims to analyse how high performing farm businesses reach and sustain the levels of performance, resilience and wellbeing they do. Through a literature review and semi structured interviews this could be uncovered. A thematic analysis was carried out which helped determine how performance, resilience and wellbeing could be sustained when faced with climatic extremes and reduced cashflow. The relationship between these elements could then be understood.

Key findings included:

• A clear vision and plan positively contribute to, high performance, resilience and wellbeing. A portfolio of strategies can then be developed to face challenges.
• Positive relationships and value of connection were core drivers of success in challenging times.
• ‘Sticking to their knitting’ and focusing on their most profitable enterprise ensured sustained performance. Strong awareness of their farm system and a large trading stock component allowed this.
• A growth and curiosity mindset led to a more effective response to challenges and increased performance through innovation and creativity.
• By pursing high performance and excellence, farmers also positively influenced resilience and wellbeing.

Recommendations for early career farmers included:

• Develop a clear vision and strategic plan, with a focus on preserving condition of capital stock and maintaining a buffer of feed.
• Focus on flexibility, decrease lower performing capital stock numbers and increase trading component.
• Improve relationships and networks, surround yourself with positive people and endeavour to help others as they will help you in return.
• Enhance resilience and grit, build a portfolio of strategies and persevere in the face of challenges. Remain self-aware to avoid burnout.
• Adopt a mindset of curiosity and growth. Innovate, try new things and learn from setbacks.
• Prioritise wellbeing, incorporate the ‘5 ways to wellbeing’ into daily practices.

Background

The New Zealand beef cattle industry is a significant contributor to New Zealand’s export revenue. As modern farm systems have increased in scale, understanding of animal behaviour has declined. Cattle handlers have reverted to natural tendencies attempting to work cattle using fear and predator-type aggression. This behaviour increases the risk of injuries to both people and cattle resulting in devalued product and people leaving the industry. Handling cattle poorly risks the loss of consumer trust in New Zealand beef cattle farm systems.

Low stress handling is a higher form of stockmanship with techniques that enable those in charge of livestock to effectively manage animal psychology and wellbeing. Benefits from improved handling include operational efficiency, improved livestock production, and optimised product value.

Aims and Objectives

This report aims to:

• Gain understanding of low stress cattle handling and how it can be applied in New Zealand.
• Show the effects that improved cattle handling have on people, cattle and cattle products.
• Acquire insight to current handling training systems and seek opportunities for improvement.
• Review handling training standards of New Zealand and overseas farm assurance programs.

Methodology

Information was gathered from various literature including scientific articles, current industry data, and social media posts. Much of the information was sourced from overseas but reviewed in a New Zealand context.

Interviews were carried out with a range of industry participants. Questions were designed to encourage discussion, thereby gaining insight to ensure the project outcomes were relevant.

Key Findings

Low stress handling principles benefit individuals and the combined New Zealand Food and Fibre sector. Culturally implementing better livestock handling in New Zealand will require leadership at all levels of industry from regulators, educators, agricultural service providers, and producers.

Low stress cattle handling is a higher level of stockmanship correlating strongly with people leadership.

Recommendations

1. Review educational standards and training resources to ensure they take full advantage of best practices both in New Zealand and overseas.
2. Ensure on-farm training is carried out by skilled, not just experienced people who understand the complexities of stockmanship and their coaching and mentoring role.
3. Utilise external providers, and other resources as they become available to build capability on farm and within service and processing companies.
4. Reflect on progress as it happens, be involved in the process and enjoy success.