Trade balance with the US a saving grace
New Zealand is so far escaping the unpredictable vagaries of President Donald Trump's trade policies by the skin of its teeth.
A new report says productivity growth is the key to maintaining New Zealand agribusiness’ global competitive edge in the coming decades.
In its flagship 2015 research report ‘Unlocking productivity growth in the Australian and NZ food & agribusiness sector’, agri banking specialist Rabobank says productivity growth must be reignited to drive farmer profitability.
It says the rising cost of production in recent years has pressured the competitive position of NZ agriculture in the world market and turned a spotlight on Kiwis’ slowing productivity growth.
Reviving this growth is a “particularly pressing issue”, the report warns – given the challenges faced – to reduce NZ agriculture’s environmental footprint while staying internationally competitive.
Individual farmers will have to make productivity gains to drive profitability and sustainability, and other businesses likewise throughout the food and agriculture supply chain.
A particular challenge for NZ, says report co-author Rabobank analyst Georgia Twomey, will be in reigniting sustainable productivity growth in agriculture against the backdrop of strengthening environmental regulation.
“The open market economic reforms in the mid-1980s forced global competiveness to the forefront across the NZ agricultural sector, driving efficiency gains across all parts of the value chain,” she said.
“Additional productivity growth has been derived from changing land use, particularly the switch from extensive sheep and beef farming into dairy production.
“And the significant expansion of irrigated land area – which has doubled every 12 years since 1970 – has also contributed to land use change and increased productivity,” says Twomey.
Among the regular exhibitors at last month’s South Island Agricultural Field Days, the one that arguably takes the most intensive preparation every time is the PGG Wrightson Seeds site.
Two high producing Canterbury dairy farmers are moving to blended stockfeed supplements fed in-shed for a number of reasons, not the least of which is to boost protein levels, which they can’t achieve through pasture under the region’s nitrogen limit of 190kg/ha.
Buoyed by strong forecasts for milk prices and a renewed demand for dairy assets, the South Island rural real estate market has begun the year with positive momentum, according to Colliers.
The six young cattle breeders participating in the inaugural Holstein Friesian NZ young breeder development programme have completed their first event of the year.
New Zealand feed producers are being encouraged to boost staff training to maintain efficiency and product quality.
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