We’ve seen a lot of change during that time, and one of the biggest changes we’ve noticed is the growing awareness among farmers of where their products will be sold.
It was only a few decades ago that the thing most farmers were focused on was production – how to get the most of their farms. This is still true. In fact, more efficient and sustainable farming is more important than ever.
Less of a consideration was the other end of the supply chain. For decades Britain was our biggest market. We produced meat, dairy and horticultural products, put them on the ship and that was where the involvement of most producers ended.
Today, it’s a very different story. Britain is no longer our biggest market, and the world has become one globalised marketplace. Companies, co-operatives and producers can now sell to dozens of markets.
Some of the most important will be the growth markets of Asia. Global demand for agricultural products will increase by 60% by 2050 compared to 2005-07. This highlights the significant increase in demand for basic materials to support urbanisation. Rising incomes have also led to increased calorie consumption and higher protein diets.
The opportunity for New Zealand is huge. ANZ’s recent ‘Greener Pastures’ report found that New Zealand has the potential to capture $1.3 trillion more in agricultural exports between now and 2050.
This is why the theme of this year’s Fieldays, ‘Getting down to business in the global economy’ is so important for every producer in New Zealand.
Realising the opportunity identified in ‘Greener Pastures’ won’t just happen. The key will be to gain a deep understanding of these markets and build strong relationships. Regardless of where you are in the globalised world, getting these right is the foundation of success in a new market.
We also know that to take full advantage of New Zealand’s place in the global economy, we will need around $340 billion in additional capital over the next four decades to drive production growth and support farm turnover.
The challenges for the sector will be to find innovative ways to attract domestic and foreign investments such as attracting skilled labour, enhancing agri education and intensifying the focus on national R&D.
ANZ is in a great position to help producers and exporters take advantage of these opportunities. In recent years this has been a big topic of discussion in the ANZ tent at Fieldays, and we’re expecting the same to be true this year.
Already we’ve helped many of our customers establish themselves in new markets around Asia-Pacific. We’re not only New Zealand’s biggest rural lender, but we’re also the only local bank that has an on-the-ground presence in 32 markets globally.
Over the past 18 months we’ve taken groups of customers to China, Vietnam and – most recently – India where several customers returned with firm export orders.
Nothing beats local knowledge, and our staff in those markets have drawn on that knowledge to pave the way for Kiwi exporters to enter new markets and drive the growth of their businesses.
• Graham Turley is ANZ managing director commercial and agri.
