$150B farm succession challenge looms for NZ agriculture
Within the next 10 years, New Zealand agriculture will need to manage its largest-ever intergenerational transfer of wealth, conservatively valued at $150 billion in farming assets.
Rabobank New Zealand chief executive Todd Charteris notes that everyone is grappling with how to the tackle the twin challenges of increaisng food production and lowering greenhouse gas emissions. Speaking last week at the Primary Industries Summit in Auckland, Charteris noted that the ag sector has a big job on its hands to ensure the growing world population has access to sufficient, safe and affordable food.
"But at the same time, the sector also needs to reduce the greenhouse gas emissions stemming from food production that risk warming our entire planet," he says.
"As efficient food producers, New Zealand's farmers and growers have a moral obligation to produce food over and above farmers in many other parts of the world.
"If New Zealand steps back from food production, what fills that gap could be something quite detrimental to the environment.
"So, as an industry, we need to move forward on both fronts - increasing food production to feed the world and reducing our environmental impact."
Charteris says New Zealand "earned is living" through food and agriculture and the country's food producers were strongly positioned to take on this challenge.
"The sector is receiving strong signals from the Government, consumers, and the community to reduce its emissions' profile and history shows New Zealand agriculture is innovative and adaptive when presented with a problem and given the time and resources to solve it," he says.
"And with these factors in its favour, the sector is not only well placed to produce large volumes of top-quality food for global consumers, but to set the standard for the rest of the world with regard to sustainable food production."
While this was the case, Charteris noted that a global leadership position would only be attained if the sector took bold actions that helped steer the industry through the food transitio.
"Climate change is complex and, with food and agri sector participants at different stages of the journey of acceptance and response, bold actions will be required to ensure the sector stays on track to meet its commitments under the Paris Accords."
While acknowledging the reduction of emissions would be challenging, Charteris identified four key actions to help guide New Zealand's food and agri industry on the pathway forward: setting up a 'swarm' effect of innovation, kicking food waste 'into touch', making meaningful gains through precision agriculture and getting emissions offsetting right.
