Time for sector to find united voice

Several organisations with an interest in the future of our agricultural sector have come out with strategies or visions for what needs to be done to find New Zealand’s place in the sun. One such report produced by the Primary Sector Council has been sponsored, one could say hijacked, by the government, and converted by MPI into a set of financial and environmental targets. Another is the result of independent research and consultation. Ideally either the government will engage with the primary sector to agree the best policy settings the industry believes necessary to meet these ambitious targets, rather than insisting on following the plan it commissioned to meet its own priorities.

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Social licence to operate just as important as methane reduction

Amid all the debate about agriculture’s responsibility to meet greenhouse gas reduction targets, and the appropriate levels for those targets, it may seem counterintuitive to claim an equally pressing problem is to earn a licence to operate. Just as great a threat to agriculture’s future is not whether it faces a potentially unachievable government imposed target, but a business environment in which consumers make their decisions based on their perception of the acceptability of the food they eat.

Government must provide leadership

In contrast to its positive social agenda to improve the average person’s lot by lifting the minimum wage, increasing teachers’ pay rates and attempting to increase home ownership, this government seems to have gone missing in action with respect to the farming sector. Apart from Primary Industries Minister Damien O’Connor’s rather lonely efforts as a cheerleader for agriculture, other government ministers only pop their heads above the parapet when there’s some good environmental news or forestry initiative to crow about, or a new, and scientifically flawed, methane reduction target to ask farmers to meet. 

Agricultural sector committed to meeting realistic targets

The negative reaction to the methane target range in the Climate Change Amendment (Zero Carbon) Bill should not be taken as an indication the rural sector is at all opposed to the purpose of the Bill, nor does it suggest unwillingness to be part of the solution. Industry bodies, including DairyNZ, B+LNZ, MIA and Federated Farmers, are fully committed to seeing their members do all that is realistically possible to achieve the overall greenhouse gas reduction target.

Essential to keep close watch on alternative products

This is the year when plant based alternatives to dairy and meat have suddenly started to pose a more serious threat to the traditional animal based products on which New Zealand farmers, and our economy as a whole, depend. There is no danger these alternatives will suddenly take over the world, leaving dairy and sheep and beef farmers wondering what to do with their stranded assets. But, to prevent being taken unpleasantly by surprise, it will be necessary for the dairy and red meat sectors to keep a close watch on these competitors and track their progress with global consumers.

Rural confidence trends remarkably similar across sectors

The latest Rabobank Rural Confidence Survey shows the highest level of confidence among all agricultural sectors since the survey started in 2003 which is proof of the remarkable success of New Zealand agriculture and commodity prices. At a time when our dollar is also stronger against almost all, if not all, currencies over the same period, this is a surprising fact that most people would say is at least counterintuitive if not downright impossible.

Steady progress with Primary Growth projects

It is eight years since the Primary Growth Partnership programme was announced by the then recently elected National Government. At the end of 2016 there were 20 projects under way and just two completed, but 30^th June sees the completion of FarmIQ, the largest of the red meat sector programmes. This seems to be an appropriate point to evaluate the success of PGP, in particular the six meat and two wool programmes which have been allocated total Crown and industry funding of $342 million.

Fairton closure inevitable

Wednesday’s announcement by Silver Fern Farms of the proposal to close the company’s Fairton plant was in many ways inevitable. Even the workforce appears to have been resigned to the probability for several years. Sad as it is for workers and the Ashburton community, it is better to front up to the certainty than to have to wait for the axe to fall.

British agricultural report sees NZ as model for the future

A recently published report entitled The Future is Another Country by British consulting firm, Ferguson Cardo, attempts to describe a positive picture of post Brexit Britain, using the example of New Zealand in the 1980s as proof of what is possible. The authors base their hypothesis on certain key events, including the removal of subsidies, dismantling the producer boards’ funding model and compulsory acquisition rights, and a refocus away from the UK towards Asia.

Objective carcase measurement – essential or just nice to have

Objective carcase management (OCM) appears to be the holy grail for Meat and Livestock Australia judging by its plan to seek A$150 million from the Australian government to fund the installation of Dual Energy X-ray 3D carcase grading technology (DEXA) in up to 90 slaughterhouses, intended to roll out this year. The loan would be repaid from industry levies, although there are no firm details yet about how the costs would be shared.