Monday, 27 June 2016 15:53

Farmers on cusp of unprecedented change

Written by 
Ian Proudfoot, KPMG's global head of agribusiness. Ian Proudfoot, KPMG's global head of agribusiness.

KPMG's Ian Proudfoot says significant change is coming to New Zealand's primary sector and "farmers that ignore it do it at their peril".

Proudfoot was speaking this morning at Federated Farmers' National Conference Meat and Fibre AGM.

The world was on the cusp of a fourth industrial revolution and this would mean thinking more globally.

Kiwi farmers who could tell their unique story would prevail as the global consumer became more discerning about what they eat and where it came from.

"There is a fusion happening where digital, physical and biotechnological products will redefine how we live and farm," he says.

Still, the primary sector was up to meeting these challenges as changing market forces and conditions was something it was familiar with.

Being a developed country that relied heavily on agriculture, New Zealand's primary produce had to be better than anywhere else and the meat sector had to be prepared to invest in its future.

Better red meat industry collaboration would present opportunities but also the likelihood of some unavoidable lessons.

"We have to be prepared to share the risks of upsides and downsides. Too often we are quick to punish those that fail."

"Farmers need to get closer to the consumer and understand their lifestyles and aspirations," he says.

ANZ rural economist Con Williams says the technology is available but farmers needed a cultural shift in behaviour. With the global food chain increasingly going online farmers had greater access to understand their consumers and what they were willing to pay for and why.

John Loughlin from the Meat Industry Association (MIA) who opened the panel discussion says New Zealand meat farmers should stick to their principles of acting smart, being innovative and working hard to succeed.

"It's about targeting the affluent consumer and using the modern technological advances to our benefit."

The recent Brexit referendum in the United Kingdom would change market access with new players coming on the scene which would intensify competition.

This was also an example of how international market disruption can at any time influence our markets, he says.

Federated Farmers Meat & Fibre Chair, Rick Powdrell summed up the session: "Farmers need to accept change is inevitable and the speed is rapid. We need to use all the available tools to adapt to the future environment," he says.

More like this

'LinkedIn Greens'

OPINION: The same mainstream media muppets that brought you Jacindamania in 2017 have been flat out pimping for the Opportunities Party, labelled by some as the 'LinkedIn Greens' for their corporate spin on Green-esque 'tax the rich' policies.

Levy Scrutiny

OPINION: Mike Chapman, former chief executive of levy-funded HortNZ, has thrown out a challenge to farmers and growers to put their levy-funded industry organisations under the same scrutiny as fertiliser, electricity, labour and freight.

Featured

Carrfields Marks 50 Years as Rural Health Programme Grows

Celebrating 50 years in the rural landscape of Central Canterbury and beyond, Ashburton-based Carrfields, has been the exemplar for all aspects of modern agriculture via its extensive range of services including supply, growing, agronomic advice and marketing.

Taupiri Farmers Chase Ownership After Awards Success

For Taupiri dairy farmers Logan and Sian Dawson, their involvement in the NZ Dairy Industry Awards has been a key catalyst in the growth of their business - the experience helping shape how they approach the farm ownership pathway they are pursuing today.

Ballance Urges Farmers to Plan Ahead for El Niño

With forecasters advising El Niño conditions will develop through winter and strengthen into spring and summer, Ballance Agri-Nutrients is encouraging farmers and growers to think ahead about nutrient planning and be prepared to work around challenging weather conditions.

National

Machinery & Products

Suzuki Launches Jimny Horizon

Suzuki New Zealand has announced the arrival of the latest version of its Jimny SUV, the Horizon special edition, a…

» Latest Print Issues Online

Milking It

Domestic Focus

OPINION: After hogging the media limelight for telling a NZ Chinese MP to "go back home", Winston Peters has decided…

A No-Brainer

OPINION: With fuel prices soaring, one would have expected most farmers to be reclaiming excise duty on petrol.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter