NZ arable farmers face global profitability pressures
Profitability issues facing arable farmers are the same across the world, says New Zealand's special agricultural trade envoy Hamish Marr.
Speaking at the recent Arable Industry Awards in Christchurch, Marr noted that what New Zealand does not have is a population that can absorb fluctuations in global markets. We consume only 5% of what we produce as a country and must sell the remaining 95%.
"This exposure means that it's critical that we are listening to what our markets are saying and we produce the highest quality that we can," said Marr.
"If our large trading markets such as the EU or the US decide to impose import regulations, they will not worry about New Zealand. So, it is critical that we are working closely in our markets.
"With 82% of our export earnings last year coming from the primary sector it is critical that we get this right."
Marr is himself an arable farmer, named as the New Zealand Seed Grower of the Year in 2022. He was appointed as the envoy in July last year, a role that sees him work alongside government in advocating internationally for our farmers and growers.
"The more I travel, the more I see a world of opportunity for us, but at the same time, I see our exposures to a world that may not notice if we weren't there," he said.
"In the past 12 months, I've been to Australia, to the UK, to Europe, to India, Canada, and the US. And in all these places we are seen as a great country. A country of high-quality product, of integrity, of what is written on the bag is what is in the bag. And that we're a very easy country to deal with.
"But they also see an agricultural powerhouse with the ability to produce large amounts of product. In these places, the fear is that New Zealand can somehow upset their own internal markets."
Given the state of world tade and increased protectionism our angle must be on cooperation and where we can work together on shared problems to find mutual solutions, he said.
As he recently told an audience of United States agriculture officials in Washington DC, we too often get carried away with facts figures and problems, when trade is based on trust, relationships, and people.
Marr said that without exception our markets are now concerned with everything environmental. "We do need to take this seriously even though we're world-leading and we have first mover advantage. The questions on what we are doing and what we will do are always there."
"We do these things inside cropping rotations that, in many instances, containe more than 10 different crops that need 10 different lots of management and knowledge.
"We actively and automatically integrate sheep, cattle, dairy and other things into our systems, without thinking about it at all.
"I see the rest of the world doing trials on these things to see if it's even possible. The New Zealand arable farmer wonders what all the fuss is about."
However, the industry was no different to others in New Zealand and around the world now, with high costs and low product prices.
"The world trades on confidence and it is a very, very nervous place right now.
"My advice to farmers is to remember that we are an exporting country and that the world looks very favourably towards us. The challenge in all of that is leveraging that favourability.
"Let's give them the best products that we can and make sure that they want more next year. Work as close as you can with your market and engage with the people that are marketing your product on your behalf."
In a message to the politicians attending the awards, Marr noted that ferry and rail services "can do with a bit of an upgrade.
"We could supply all the milling wheat for our country rather than importing from Australia if this was sorted out".
