Alice Rule, Kellogger and emerging young leader in sustainability, is researching the circular economy of glass in the New Zealand wine industry as part of her Kellogg research project. Through her work, she hopes to drive awareness about using glass made in New Zealand in the wine industry. Click here to find out more about Rule’s research project.
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NUFFIELD AGRIBUSINESS SUMMIT – MARCH 23, 2020
After our fantastically successful one day Summit alumni event in 2017 we promised you another one in three years (based on your preferred frequency). We are pleased to announce that our next Kellogg alumni event has been confirmed for 23 March 2020.
What is even more exciting is that we are combining this event with the Nuffield2020 International Event, as part of a one day International Summit being held in Christchurch and hosted by Nuffield NZ. With a theme of Fast Forward – this is a day focused on future solutions showcasing new business models. There will be lots of discussion and debate with International and New Zealand speakers who are leaders in change and business solutions, that will inspire, provoke and challenge your thinking.
We know as Kelloggers you also love to reKonnect – so we are organising some alumni networking events around the Summit with the help of Canterbury Kellogg alumni including a cocktail function on Sunday evening. The details of other events will be announced shortly.
All we need you to do now is:
- Diary this date – 23 March 2020
- View the Summit Programme
- Get your Kellogg cohort together for a reunion
- Register now for the Summit and get in fast to secure your accommodation
- Follow the Social Shares below and keep up to date with what’s happening at the Summit
If you have questions about the Summit and associated Kellogg events feel free to contact us at programmes@ruralleaders.co.nz.
EXPERIENCE AN EVENT TO GROW | CONNECT | INSPIRE
Have your say on the proposed new freshwater rules
Make the most of the two-week submission extension for the proposed new freshwater rules.
Submissions will be accepted up until 31st October, so make sure you have your say.
For more information or resources visit www.beeflamb.co.nz, www.dairynz.co.nz or www.mfe.govt.nz
Social licence about trust
Penny Clark-Hall is passionate about helping rural communities.
Ms Clark-Hall is the founder of New Zealand’s first social licence consultancy, helping farmers and agri-businesses earn and maintain their social licence to operate.
She is excited about speaking at the Women’s Enviro Evening in Clinton later this month, saying meaningful change had to come from grassroots, or “the ground up”.
That had a domino effect and, if everyone did their “own little bit” then it all added up to something big, she said.
The evening, which will be held in the Clinton Town Hall on Tuesday, July 30, has been organised by local woman Sandra Campbell.
Mrs Campbell, who with husband Chris is in an equity partnership on a 500-cow dairy farm between Clinton and Balclutha, attended a food and fibre conference in Christchurch a few years ago.
She left feeling enthused both about their own business and also about sustainability. The aim was of this month’s meeting was to bring top speakers back to community level and make it accessible, she said.
Click here to read more.
It’s not weak to speak
It was a warm, sunny afternoon in Takaka in Golden Bay.
As daylight beamed through a window only to hit the back of a curtain, Kellogger, Wayne Langford found himself bedridden in a cool, dark room. He had been flat on his back every afternoon for more than a week to escape his constant mental anguish.
But this day was different.
“I had like an out-of-body experience.
“It was as though I was hovering above myself looking down and saying ‘what the hell are you doing in bed?’”
It was 2pm on March 18, 2017.
It was his 34th birthday.
“I couldn’t help but think I should be out and about celebrating with people, not stuck indoors….”
To read more about Wayne Langford by Luke Chivers, click here.
Supporting environmental sustainability in the red meat sector
Executive Summary
With the New Zealand economy dependent on primary industries and export, New Zealanders concerned about the state of our natural environment, the ever-increasing focus on climate change, global consumers’ changing expectations and disruptive technologies challenging our existing systems and processes; significant questions for the primary industries rise.
Are our land-based farm systems fit for purpose and do our practices have a sustainable future? How can we create economic value without destroying what we value environmentally?
The primary industries are under a lot of pressure to address managing the environment and the recently proposed Fresh water package raises the discussion on how our farmers can adapt their systems to do so. So how are we, as an industry, supporting them?
The aim of this project was to investigate what support the red meat industry offers its farmers while they are working towards achieving environmental sustainability for their farm businesses.
The method used to complete this project was a combination of literature review, data collection and qualitative research. Thematic analysis was used to bring the collected data together. It provided a framework and identified 3 main themes:
- CULTURe
The why: industry leadership and why would farmers change what they are doing?
- CLARITY
The what: what do the farmers need to do and what is in it for them?
- CAPABILITY
The how: now the farmers knows what they need to do, how can they do it?
The main outcomes from the investigation are as follows:
- To achieve environmental sustainability, we also need to maintain social and economic sustainability
- Change of behavior is required
- Farmers have different drivers than rural professionals
- There is a lack of leadership and collaboration
- There is a disconnect between policy makers and the service industry, mainly coming from a lack of farm systems knowledge
- The biggest challenge goes to regulation and capability of the sector
The biggest opportunity in achieving environmental sustainability lies in the how part but support for the farmer is often the most limiting step. Hence building farmers’ and rural professionals’ capability and therefore their confidence is key.
Key recommendations as a result from this project are as follows:
- Strive for clear regulation
- Set SMART goals
- Design a framework for pathways to environmental sustainability
- Communicate actionable knowledge
- Create engagement, commitment and collaboration in stakeholders
- Follow up on completion and success
- Ensure repeatability for each step of the process
Leadership that supports collaboration between farmers, scientists, industry professionals and organisations is going to be critical. The sector needs to have a structured approach, with systems and processes in place.
First, Catch Your Crayfish – Linking New Zealand Food Producers and Consumers for everyone’s benefit.
Executive Summary
New Zealand produces enough premium quality, safe food to feed approximately 40 million people (McCready, Tim. July 19th 2018). It could safely be assumed then that accessing such amazing quality food in the region or even country of production would be an easy ask. This is not always the case. Currently New Zealand’s economy is heavily based around food and produce exports.
In a time when food quality and safety is top of mind for purchasers it would make sense to give local New Zealand residents ready access to the best and freshest of what we produce.
Top New Zealand chefs are beginning to search for and cook with premium quality locally produced and foraged produce but are finding it extremely hard to source a consistent supply. They are looking for premium local produce with a verifiable story to tell their customers.
To allow consumers and food service kitchens access to our best and freshest produce, New Zealand needs a system which links producer and customer with premium produce via short, profitable supply chains.
This report aims to answer the question “Does the formation of a sales platform linking food producers and consumers in New Zealand have merit?”
Shorter supply chains and closer linkage between producer and consumer will allow more communication, in-depth understanding and the formation of relationships to benefit all parties.
I recommend an industry good organisation undertakes an in-depth survey of New Zealand food producers asking about their potential utilisation of such a sales platform. Utilising these results, I recommend that group also facilitates the creation of a platform which is locally based with the minimal amount of administrative and financial setup requirements as possible.
I recommend that price remains an important consideration for participating producers, the value of the provenance and production story must be matched with affordability for consumers.
A Classroom View of New Zealand’s Primary Industry
Executive Summary
We certainly can’t argue with the fact that New Zealand has recognised the issues around the future of the Primary Industries workforce. We read about it every day, we have data to prove it and a sector constantly talking about it. Initiatives throughout the country have been set up to try and combat the issue but do we need a more central collaborative solution to the problem?
“Education is the most powerful weapon which you can use to change the world”
Nelson Mandela
With our Primary Industry requiring 50,000 additional skilled workers by 2025 and the world having 10 billion mouths to feed by 2050. The importance of education and skills has never been greater. For many years in New Zealand, Agriculture Education and Training has been a significant topic of discussion. Our future primary sector sits with the young New Zealander’s of today. Generating passion and knowledge early will be a powerful weapon of use in the industry.
The aim of this report is to better understand how students make decisions around career choice and to evaluate the impact that an NCEA Agribusiness study programme in New Zealand has had for the Primary Industries.
The method used for this study is a qualitative and thematic analysis on the current situation, the history and the issues that we are faced with around Agricultural Education in New Zealand. Thematic analysis allows identification of different perspectives around the issue and helps to recognize some possible outcomes. Interviews with Kerry Allen, Agribusiness Project Curriculum Director and Mel Simmons, Agribusiness Advisor were used to gain insight into a newly developed NCEA Agribusiness programme which describes the key challenges as being:
- Perception of the Primary Industries
- Student Attraction
- Teacher Education & Support
- Assessment levels
- Cross Sector Support
With the industry undergoing rapid change and innovation the ability for people to keep up is challenged. The resources and support within our education sector appear to be coming up short. The complexity around education required is quite significant.
When we look at the numbers it is alarming to see where our future knowledge is coming from, what the future of our industry looks like and the pressures we are going to be placing on the people we leave behind to produce off our land and provide science based research and advice. Key recommendations as a result of this research are as follows:
- Offering of Scholarships for career changes to encourage teachers to train in the Agribusiness
- Generate appeal for Primary Industry workers to cross over into education to influence the next generation
- Ensure the promotion of job variety and prosperity within the primary industry is far reaching e.g. students, teachers and parents
- Ability for universities to be able to train teachers in the Agribusiness subject
- Explore the option of being able to integrate throughout the main subjects of the NZ curriculum.
- Create strong collaborative working links between the Ministry of Primary Industries and the Ministry of Education
Recognising the primary sector workforce issues isn’t the hard part but coming up with successful solutions is. The ability to help alleviate challenges continually faced by initiatives like the Agribusiness programme lies within the industry and could be the key that unlocks the door.
ONLINE LIVESTOCK AUCTIONS: Australian success, and the potential for New Zealand
Executive Summary
This paper provides a background of the Australian Livestock industry with a specific focus on the rise of an online auctions platform, AuctionsPlus (www.auctionsplus.com.au).
My findings show that the use of AuctionsPlus can deliver verifiable economic and social benefits to its users.
During a research trip throughout Australia’s rural New South Wales and Victoria I spoke with Farmers, Feedlot operators, Stock Agents, Transport operators, Saleyard managers and Meat buyers about industry dynamics from their unique perspectives. The focus of these discussions was to understand how AuctionsPlus integrated into their business, where the platform worked best for them and where it didn’t.
I’ve then considered the relevance of all these factors in the New Zealand context to understand the potential benefits for our own industry.
AuctionsPlus is neither a fundamentally new method of transacting livestock nor a disruptive technology. It does however harness favourable attributes of traditional sales methods and combine them on a single, highly efficient internet marketplace where vendors, agents and buyers can participate without the need to come together physically.
I’ve found that tangible economic advantages alone are not enough to drive adoption, and that the social benefits of improved animal welfare and bio-security outcomes can drive adoption even in the absence of any direct financial advantage. Also, stock agents and farmers
are more likely to support the platform when existing relationships can be maintained.
The real key to long-term success is the establishment of underlying trust in the platform and its users.
At the time of writing New Zealand does not have a comparable sales method and questions remain as to whether the New Zealand market has the scale to support this business model, or what level of market penetration will be needed to support a sustainable business. At least two companies are looking to fill this market opportunity and my recommendations will give those in this relatively new field a grounding in the lessons learned during AuctionsPlus’s journey to success. I believe this success can be replicated in New Zealand for the good of all industry stakeholders.
The most important recommendation I make is that to initially gain traction, a successful online platform will need to have the full support of Stock Agents. While this is an electronic marketplace; people are at its core.
An industrial analysis of dairy processors in New Zealand
Execute Summary
After 18 years of DIRA legislation, Fonterra has gone from being an almost monopolistic company within New Zealand’s dairy processing industry, to being involved in a very competitive market place with the introduction of some major competitors in the shape of Open Country Dairy and Synlait to name a couple. This report shows how each company differentiates themselves from each other in an industry where the base product is exactly the same; milk. This differentiation of final products allows competition to be established in overseas markets for each of the companies. This competition within New Zealand for a stable or reducing milk pool, has created an increase in returns for farmer suppliers; without the threat of new entrants into its processing space, Fonterra would not be as strong as it currently is. Fonterra’s strategies have been shaped around delivering the best return possible for its farmer suppliers, to ensure that they are not tempted to supply another processor, and to deal with the restrictions the DIRA has created around Fonterra.
This report gives insights into how each processor performs in comparison to one another, how each processors strategy of processing its products results in different revenue per kgMS, and how this revenue is distributed, either to farmer shareholders or to private shareholders. The report should also highlight the amount of competitors within New Zealand’s dairy processors that are foreign owned.
Recommendations:
- Fortify: Revitalized and continued support of Fonterra as a market leader; Fonterra is the market leader, not purely due to market share, but mostly by transparency allowing it to openly show everyone how it operates and sets its milk price and share price, by flying the “NZ Inc” flag and doing a lot of industry work on its own accord, while by default, taking other processors along for the ride. The Fonterra Co-Operative is the reason the dairy industry in New Zealand is so strong, this needs to be remembered and revered by all farmer suppliers.
- Future proof: Farmer suppliers need to look beyond their own balance books to determine if a change in processor is actually beneficial in the long term. Does your new milk processor have any obligation to keep paying you a good farm gate milk price if Fonterra or DIRA are out of the picture; who is your new or potential processor working for, you or its shareholders?
- Deregulate: DIRA legislation needs to be removed, and quickly. The initial aim of consumer protectionism is no longer required, as there are now enough processors within New Zealand for this to be controlled by market forces; which was part of the initial idea of DIRA. DIRA is also hindering Fonterra’s ability to be able to make strategic decisions with its supplier base and all of its processing sites; not being able to accuratly predict milk supply in the future accurately, hinders investment strategy and direction. Having the ability to control entry and exit of suppliers, along with the abolishment of the regulated milk supply to competitor’s legislation, will allow more certainty around investments into processing capabilities; which means more product to process and add value to, and more money into New Zealand’s economy and not into Foreign owned companies.
- Compromise: Determine what amount of market share is optimum for each of New Zealand’s dairy processors so that New Zealand’s export margins are optimized for New Zealand’s benefit. This should include some competition within New Zealand, such as Synlait, so that Fonterra has some competition to constantly benchmark itself against, but not so much that buyers in foreign markets have the ability to bargain with exporters of New Zealand products.