Wednesday, 21 June 2017 12:55

Snuggle up to consumers – KPMG

Written by  Peter Burke
Ian Proudfoot. Ian Proudfoot.

Developing truly NZ cuisine, creating innovative food products and getting up close to our customers: these were the standout themes in the KPMG Agribusiness Agenda released last week at Fieldays.

The future for New Zealand’s agri-food sector depends on us producing artisan, niche, premium quality, safe and sustainable food – as well as beverage, fibre and timber products, says KPMG’s head of global agri, Ian Proudfoot.

Consumers are constantly looking for new, innovative products and if NZ can bring diversity into the diets of consumers this will assist in securing a price premium, Proudfoot says. To succeed in a changing world, ultimately the consumer must be central to everything we do.

“There are still too many organisations in the primary sector that say they exist for their farmers, their producers. In the end, if that’s what you exist for there won’t be a market for you.”

Proudfoot claims NZ has been complacent about the food it produces, believing there will always be a market for our produce.

“Yes, there may be a market, but if people have choice they may go for something more interesting, exciting and nutritious. As a consequence, though NZ may have markets, they will not pay what they historically paid unless we change and respond -- and that’s going to take strong leadership right across the sector.”

Proudfoot says we need to stop talking about single products and talk about the larder full of quality food products NZ has to offer.

KPMG says NZ has historically focused mostly on maximising production; customer relationships have been transactional, price driven and often through an intermediary rather than through retailers or ultimate consumers. NZ’s drive to produce more is not always matched with a clear strategy on how to sell this extra production and where and at what price.

But the report authors believe that, in respect of millennial consumers, the agri food sector must understand what triggers or prevents a purchase by these new consumers.

It notes the work being done by MPI’s Economic Intelligence Unit, to gather more data on consumer habits, but it believes this might sit better in a stand-alone ‘centre of excellence’ outside government. Such a centre may then attract ‘commercial’ people who would not work in government.

More like this

Day out at Fieldays leads to ute win

Out of more than 80,000 entries, Daniel Neil from Piopio has been announced as the lucky winner of the Isuzu D-MAX LX Double Cab 4WD Ute in this year’s Fieldays Ute giveaway.

Organic Dairy Hub liquidation process continues

The liquidation of failed co-operative Organic Dairy Hub is continuing, and net proceeds will be distributed to farmer shareholders once final tax obligations have been met, according to the liquidators.

Back off!

OPINION: The inquiry into rural banking practice was welcomed at Fieldays, but Groundswell NZ added a proviso that this must include banks' treatment of agricultural emissions.

Live exports back?

OPINION: Milking It understands a major announcement on livestock exports will be made at the National Fieldays next month.

Featured

'Female warriors' to talk ag sector opportunities

The East Coast Farming Expo is playing host to a quad of ‘female warriors’ (wahine toa) who will give an in-depth insight into the opportunities and successes the primary industries offer women.

Dairy-beef offering potential for savings

Beef produced from cattle from New Zealand's dairy sector could provide reductions in greenhouse gas emissions of up to 48, compared to the average for beef cattle, a new study by AgResearch has found.

National

Machinery & Products

LC70 - A no-nonsense work horse

As most vehicle manufacturers are designing, producing and delivering machines with features that would take us into the next decade,…

GEA launches robotic milkers

Milking technology provider GEA Farm Technologies is introducing its first automatic milking system (AMS) in New Zealand.

More front hoppers

German seeding specialists Horsch have announced a new 1600- litre double-tank option that will join its current Partner FT single…

» Latest Print Issues Online

The Hound

Dark ages

OPINION: Before we all let The Green Party have at it with their 'bold' emissions reduction plan, the Hound thought…

Rhymes with?

OPINION: The Feds' latest banking survey shows that bankers are even less popular with farmers than they used to be,…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter