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Farming in a fishbowl: Insights from environmental leaders – James Ryan

Executive summary

In recent years there has been increased public and media scrutiny of the performance of dairy farming in New Zealand. As a result there are mixed views about dairying in New Zealand. In response to increased community pressure the dairy sector is implementing a range of significant initiatives to enhance its environmental performance. While it is opportune for the dairy sector to reflect on the improvements that it has made in recent years, it is also timely to consider what other initiatives can be undertaken to maintain and improve its reputation.

As part of my project I have canvassed the views of some of the sector’s biggest critics to consider what else the dairy sector could do to improve its environmental performance and reputation. The key recommendations arising from these discussions involve:

  1. Evaluate whether the dairy sector is consistently and clearly articulating its position on freshwater limit setting.
  2. Evaluate how environmental poor performance is currently managed and identify opportunities for improvement.
  3. Identify opportunities to tell environmental success stories more effectively including through the involvement of farmers and the environmental sector.
  4. Convene a workshop between the dairy sector and environmental leaders to explore opportunities for ongoing dialogue and partnership.
  5. Explore opportunities to articulate the extent to which the dairy sector is investing in the “value – added” component of dairy exports and communicate this to environmental leaders and other stakeholders.

James Ryan

How Important is Location in Determining Kiwifruit Orchard Returns.

Executive summary

Between-orchard variation in approximated average gross revenue per hectare of 341 conventionally managed commercial ‘Hayward’ (HWCK) kiwifruit orchards was spatially modelled across Te Puke, the main production region of New Zealand, over six consecutive growing seasons (2003-2008). Variation between orchards in average gross revenue within seasons (of which spatial variation is a component) was greater than variation between seasons (~temporal variation). Within seasons there were spatial patterns to the distribution of approximated gross revenues per hectare between orchards. The temporal consistency of the spatial variation enabled segregation of the Te Puke growing region into three geographic zones which contained orchards that consistently earned distinctly different returns both within and across seasons.

Despite the differences in orchard revenues between the geographic zones identified being statistically significant and the location of an or chard within the Te Puke growing region having an effect on orchard revenue, orchard location was not predictive of orchard revenue. Therefore it is concluded that the spatial component of between-orchard variation in revenue was exceeded by that of non-spatial site-to-site variation. This we attribute to differences in individual management practices between orchards. As orchard revenue is determined (in order of decreasing influence) by fruit numbers, fruit size and fruit dry matter content – the same hierarchy of responsiveness to orchard management practices – then it follows that orchard revenue is very open to manipulation by orchard management practices.

Therefore geographic zonation between orchards should not be where the effort in managing variation in Hayward kiwifruit and/or land values is concentrated.

Tim Woodward

Low level physical activity and the impact on the fitness of dairy farmers.

Executive summary

More New Zealanders are dying of cardiovascular disease than cancer, diabetes and infectious diseases combined. Each month, around 860 people in New Zealand die from cardiovascular disease. Farmers do not compare well with the national population with 83% of farmers who took part in a nationwide farmer wellness and wellbeing programme having a cholesterol reading greater than the World Health Organisation (WHO) acceptable level and are at risk of cardiovascular disease.

Male farmers are most at risk group. 56% of male respondents in the PITSTOP programme had a moderate to high blood pressure and 73% of males had a Body mass index that exceeded the World Health Organisation acceptable healthy level. 61% of respondents were concerned about their ability to keep up with the job. Farming is becoming an unhealthy place to work.

Fitness and exercise play a major part in maintaining body weight, lowering blood pressure and cholesterol which all affect cardiovascular health. Exercise has also been accepted as a green therapy for reducing stress and depression which affect farmers on a huge scale. Health and fitness improves workplace productivity, personal motivation and community involvement. For the dairy industry to meet the objectives of the Strategy for Sustainable Farming, farmers will need to maintain healthy and fit lifestyles and provide opportunity and encouragement to staff in the team environment to maintain the same.

The type of work undertaken by farmers has changed, more sitting down on tractors, quads and at the office desk is contributing to an increase in waist sizes and weight of farmers. The level of activity on dairy farms measured by monitoring farmer heart rates shows farmers working with moderate levels of mechanisation do not elevate heart rates enough to improve fitness and reduce the risk of cardiovascular disease.

Individual heart rate intensity did not vary greatly between fit farmers and unfit farmers proving the manual labour on farms outside calving is not very physical. Fit farmers did achieve more in the day and also managed to do off farm exercise.

More resources need to be put into researching and education around health and physical fitness if the industry wants to attract and retain talented people.

Ian Handcock, Hancock

The Kellogg Journey.

The New Zealand Kellogg Rural Leaders Programme (KRLP) is a highly respected industry leadership programme which develops emerging agribusiness leaders to help shape the future of New Zealand’s primary industry.

The purpose of this study was to get feedback from Kellogg Alumni, looking at their expectations of Kellogg Rural Leaders Programme and success since they have completed the programme. This was done by interviewing past participants and asking them to evaluate different phases of the program and think about how that has impacted their careers.

The skills expected to be gained and developed by the participants were finance, industry and business skills, leadership development, confidence and self-awareness development, presentation and public speaking, communication and organisational skills. Most of the participants said skills they were expecting to learn were taught or developed further.

Kellogg Rural Leader Program has helped to make most participants aware of wider networks, through exposure to different industries within the primary sector and gaining confidence to utilise the networks, including using technology and social media sites such as Twitter.

The program has built confidence for these Kelloggers interviewed, enhanced leadership skills, developed networks and opportunities to step up and have a say; to contribute and grow within our Primary sector. The program has hugely influenced personal and professional growth. The learning style within the program is of great benefit. There were learning from all parts of the program, especially where recommendations have been made for improvement to speakers and workshops. This highlights to the participants what not to do.

Every person who I interviewed remains in the primary industry and has adopted new roles or opportunities within the wider primary sector and local community since participating in the Kellogg Rural Leadership Programme. The Programme has met and exceeded expectations and 100% of interviewees said the Kellogg Rural Leadership program has positively impacted their career.

April Mainland

Herding the Cats: Change Management in New Zealand Primary Industries.

Executive summary

In February of 2013 I received an out of the blue phone call from a fellow sheep and beef farmer whom I had never met. His name was Richard Young and he was organising a meeting of like minded farmers to discuss the issues around the dire state of the red meat sector. The attendance and subsequent outcome of that meeting was the formation of Meat Industry Excellence (MIE) for which I was to be a foundation member and Richard Young, himself a Kellogg Scholar, was to be our inaugural chairman. That meeting in many ways changed my life and has led to me, quite incidentally, being at the forefront of the current attempt to reform the red meat sector.

Along the way it has been an absolute privilege to meet and engage with many of the significant leaders of New Zealand primary industries both current and past and to share their wisdom and experience. The Kellogg’s scholarship project has provided me with a guilt edged opportunity to leverage into their experiences particularly in regard their experiences in change management. What lessons can be learnt not only for myself in regard my on-going involvement with MIE but for other future primary industry change managers who may read this text.

This is a qualitative assessment as opposed to a quantitative one. I have chosen a diverse range of case studies and deliberately concentrated on the “how” aspect. The who, what and why are required for context but my real interest is in the process of leadership required to deliver an outcome. I do not seek to judge what they did and indeed two of my examples were ultimately not successful in achieving their initial objectives. This was deliberate in regard are there any comparative themes that emerge between the successful and the ill fated?

How do you go from having a conceptual idea, as we did in Gore on that fateful evening in February 2013, to achieving an actual outcome? What is the secret to “Herding the Cats?”

Mark Patterson

A european canker (nectria canker) review

Executive summary

In 2013 the New Zealand Pipfruit industry produced 18m Tce (tray carton equivalent used as a standardised unit for quantity of apples) of export fruit generating $504m in revenue. As part of the pipfruit industries representative body Pipfruit New Zealand Inc strategic review a target o f becoming a $1b industry by 2022 was issued thus indicating a requirement for growth of almost 100% over 9 years.

Since 2008 European Canker (Nectria Canker) infections have significantly increased due to weather events and lack of grower education of techniques to mitigate the infection.

To date there have been no official statistics quantifying the extent of the infection rate nationally, however anecdotal information provided through observation, contracted quantitative surveys on orchard and an industry leader survey suggests canopy infection could be as high as 15%. Best practice to date highlights the need to remove infection from the orchard in turn suggesting up to 15% of cropping potential could be lost.

In 2013 at a rate of an estimated 7.5% loss of production in Central Otago and Hawkes Bay combined with a 10% loss of production in Nelson and other pipfruit producing regions it could be estimated that up to 1.5m tce worth of production is currently being lost to European Canker. This translates to $42.2m in potential lost revenue through lowered hectare productivity.

After surveying a number of high level industry representatives (consultants, grower representative bodies, growers and industry body representatives) it cannot be said with confidence that the infection rate is being maintained but more than likely it could be increasing.

If this infection rate were to increase by 5% (13.5% and 15% respectively) across a $1b industry it can be estimated that growers would have the potential to lose an estimated 4.6m tce in production which translates to a staggering $143m.

For the pipfruit industry to realise its target of $1b by 2022 a combination of increases in productivity, new varieties and increased unit sales price are required along with significant development.

With EC potential to erode productivity and potentially in creasing the industry is required to reassure corporate investors that New Zealand pipfruit production is a sensible investment option.

It has been identified through the survey that not only do we lack skilled researchers to better address this disease, but IP ownership coupled with market access sensitivities appear to be hindering free flow of knowledge with offshore specialists.

EC awareness is important to address and mitigate the infection further however knowledge of the disease within New Zealand pipfruit in market has serious ramifications on market access.

After evaluating the differing aspects of this disease, the primary objectives and functions of Pipfruit New Zealand and a better understanding how EC effects participants within the industry I am convinced management for the advancement in in field of EC mitigation is a function should be directed by PNZ under guidance of the industry participants.

Ideally a stepped assessment of the current infection levels of the disease and a quantified risk assessment of sensitive market access driven by industry body PNZ would be valuable.

The effect on the participants within an industry striving to achieve $1 Billion by 2022 Morgan Rogers IP Manager T&G This would derive the information needed to tactfully approach corporate investors and industry to form a research program sensitive to market access cautions but still providing growers and investors with reassurance that EC infection is a point of focus.

Funding could be leveraged between collaborative research bodies, corporate’s and government allowing free access to findings.

Morgan Rogers

Exploring the design of a Nitrogen-Attenuating stand-off pad for dairy cattle.

Executive summary

The focus of this project is to explore the potential design of a nitrogen attenuating feed pad for dairy cattle that are wintered on fodder crops in the lower South Island.

I hope to explain some of the reasoning behind how important cost effective environmental sustainability is to the New Zealand dairy industry, and attempt to open up some avenues of further discussion and research.

Aaron Wilson

Why are females underrepresented in the position of rural manager at ASB Bank Limited.

Executive summary

Why are females underrepresented in the role of Rural Manager at ASB Bank Limited? In what has traditionally been a male dominated industry, more and more females are occupying Rural Manager roles with ASB competitors. The other divisions within ASB also have a high number of females and there is a large number of female branch and commercial managers at ASB. This report aimed to gain more of an understanding of why there is a very small number of female Rural Managers at ASB.

In September 2015 personal interviews were carried out with Six ex ASB female Rural Managers. The interviews where either carried out face to face or over the phone. The interviewees were very forth coming with information about their time with ASB. There were consistent themes from the majority of the interviews, the main ones being; 1. They didn’t enjoy the contestant sales focus and drive to bring on new to bank clients; 2. They felt like the minority, with a limited number of other female Rural Mangers to cross pollinate ideas with; 3. They were disappointed at the lack of a specific female Rural Manager uniform; 4. They felt that there was a lack of support from the Regional Manager level of the business.

In September 2015 personal interviews were carried out with 10 farmers from a range of industries and age demographics. All interviews were carried out face to face. There were consistent themes from each of the farmer interview;

  1. The farmers didn’t have an issue with the gender of their Rural Manager.
  2. The Rural Managers need to be confident in what they are doing.
  3. The Rural Managers need to have a good under standing of production systems.
  4. The Rural Managers need to have a good understanding of the relevant topical issues facing the industry and to also have a personal opinion on the issues.

A large array of data was sourced from the Human Resources Department of ASB, in-order to gain an understanding of the gender breakdown of the current Rural Division, and also around the gender breakdown of the candidates who applied for roles of Rural Manager at ASB. With the ASB Rural graduate program, on average over the last three years ( 2014 , 2015, 2016 ), 40% of candidates who reach the assessment centre part of the application process are female, only 18% of the successfully hired candidates are female. All of the graduates that have been spoken to felt that the assessment centre process was a fair process for selection of graduates.

The new hire data was also assessed for a gender breakdown. The data shows that for the period from 10/01/2010 until 30/9/15, there have been 37 new hires into the Rural Manager role. Females made up 21% of the applicant’s and 11% of the new hires. At the time of writing, all but 1 of the females employed into the Rural Manager role have now have now left the bank.

Discussion was applied to the above topics and some conclusions were reached.

Four recommendations have been made as a result of this project. They are;

  1. Continue to employ the best person for the role, regardless of gender.
  2. Invest more time in coaching females in the sales side of t he Rural Manager role. The bank has a great opportunity to work with the females existing strengths (organised, attention to detail) that females offer to the business, and nurture their sales abilities.
  3. Have an ASB Rural Uniform specifically for the female Rural Managers. Don’t just modify a male’s uniform to kind of fit a female. They have earned the right to be in the role of Rural Manager. Recognise that by making available a female Rural Manager specific uniform. Involve women in designing the new uniform.
  4. Put in place a mentoring program for female Rural Managers. There are a number of experienced females in the Rural business. Put a formal mentoring program in place to support them, as they are a minority.

Brad Saxton

Nutrient management regulation and New Zealand deer farming.

Executive summary

Farming practices in New Zealand will need to change in order to comply with nutrient management regulation. This regulation is broadly described in the National Policy Statement for Freshwater Management (2014). It is then addressed more specifically at the community level through Regional Council and stakeholder engagement. There are almost two thousand farms throughout the country that produce deer (deer farms), either exclusively or as part of a mixed farming system. They will be exposed to nutrient regulation but the exact timing and extent of regulation are unknown. What is also unknown is the impact on productivity that this regulation will have. If significant, levels of production achieved by the Deer Industry may be reduced. Deer Industry New Zealand (DINZ) is the industry body responsible for promoting and assisting the development of the New Zealand deer industry. They support environmentally sustainable farming systems and seek to understand ways in which deer farmers can achieve them efficiently and effectively. They recognise that Land Environment Plans (LEP) that describe the sustainability initiatives on the property will be essential for all deer farms in the future. This project has several aims; one is to understand the water quality issue in its broadest context, a second is to examine the location of deer farmers across New Zealand and prioritise them by their deadline for having an LEP in place. A third aim is to interview deer farmers who have been through the LEP process and communicate to other deer farmers the lessons they learned in that process. The final aim is to comment on the broad issue from the perspective of deer farming.

Solis Norton

Developing New Zealand’s primary industries social capital.

Executive summary

This report and associated research asks the question:

‘How could NZ Inc use Social Media to support the Primary Industries?’

Social Media can no longer be ignored as a tool for your brand strategy. In a recent Dominion Post article, (Ranekleiv 2015) said ‘Online retailers are seeing rapid increases in the number of competitors. To remain competitive, they’re being forced to expand their offerings of products and services. Marketers need to engage with online customers and integrate the brand’s social media platforms into the overall experience. Consumers shopping online will also be referencing the brand in either positive or negative ways on social media. Brand owners can use social media to be part of those conversations to build their brands, and important tools are evolving to support this process’ (Winter C, 2015.)

The three areas of research completed for this paper support Ranekleiv’s statement. These research methods are:

  1. A literature review, used to establish the uptake and value of social media nationally and globally;
  2. An online survey promoted across Facebook, Twitter and LinkedIn targeted at rural social media users to understand their use of different platforms
  3. Case Study interviews, which were held face-to-face, via phone and email to understand how they use Social Media as part of their strategy.

A key finding highlighted that the sector lacked resource; capability and knowledge of social media so generally hadn’t invested time or money into developing a Social Media strategy. This has meant a slow uptake in the use of the tool, so organisations are missing the opportunity to engage online influencers with their brand.

By having our industry’s brands on Social Media, we can collectively tell our NZ Inc story. We do a poor job of promoting ‘our brand’ currently and my recommendations look to influence change:

– Develop a national social media seminar series to educate Primary Industry organisations on Social Media

– Form a ‘collective’ to tell our NZ Inc story through industry collaboration

– Build on existing campaigns such as #AgChatNZ and #NZFarmerday

When used well, Social Media can drive business, build brand awareness and allows communication to be had at a deeper level with customers. By ignoring the opportunities this tool presents, businesses are missing the chance to influence a growing online audience. Online consumers demand transparency and it’s important for long-term growth that businesses build a social media strategy into their broader brand strategy to position them for this growth.

Chelsea Millar, Miller