Fert co-op to downsize, remove excess capacity
Fertiliser co-op Ravensdown is trimming down to a more efficient operating model, says chief executive Garry Diack.
How do we move from commodities like milk powder to niche products that consumers believe in and will pay more for? How do we provide proof to back up our food’s excellent ‘back story’? How do we manage the trade-off between environmental impacts and economic prosperity?
The answer to all these questions is smarter farming: challenging all aspects of farming, knowing improvements are always possible and definitely needed.
Three trends help set the context:
1. More elderly people
In the time it takes you to read this, about 200 people arrived on Earth. NZ can only grow enough food to feed about 40 million out of seven billion people.
So the question is, which 0.5% of the world’s population are we going to feed and how?
If the over-65s in China represented a country, by 2050 its population would be bigger than the UK, France and Germany combined. This could mean more demand for smaller pack sizes and added benefits, like lamb with extra Omega 3 for healthy joints.
2. More city-dwellers
More people will be living in cities, meaning there will be less space for storing and cooking food and more eating out. A lettuce from a vertical garden, insect protein shake or a 3D-printed lunch at your desk may provide daily nutrients, but perhaps NZ cheese on a pizza in a restaurant, milk in ta latte or ice cream in a hotel that will make some moments special.
3. More middle class people
Globally about 140 million people join the ranks of the middle class every year – mostly in Asia -- and protein is a bigger part of their family diet. Many will pay for food from a trusted source.
But to command a premium, you need proof. And that’s where technology helps: maps that show exactly how much fertiliser was placed where; robots that measure grass growth; laboratories that diagnose soil needs; algorithms that predict how much feed a farm will grow; coated fertilisers that can reduce greenhouse gas emissions; special aerial cameras that can assess soil nutrients remotely; and software that shows where best to tackle potential phosphate run-off and nitrate leaching.
Ravensdown is working on these tools today so that future generations and all users of our precious natural resources can benefit. There’s no silver bullet but we are part of the solution.
Leaving the land in better condition than we found it is no idle dream. But it is going to take a lot of work. Our environmental consultancy, which assists with mitigations and compliance issues, is the fastest growing part of our business.
Our topdressing aircraft are being modified with computer-controlled doors so environmentally sensitive areas can be avoided.
As a farmer-owned cooperative, our aim as nutrient efficiency specialists is to supply the necessary amount of nutrients that nourish the soils – no more, no less – and help minimise losses for the benefit of the farm and the environment.
Smarter farming is the answer because it allows us all to adapt to looming disruption and ultimately benefits all NZers.
• Greg Campbell is chief executive of Ravensdown.
