Rabobank flags rising global dairy prices, warns of downside risks ahead
While global dairy commodity prices continue to climb in most key exporting countries, the second half of the year is expected to bring increased downside risks.
Rabobank head of business development New Zealand Karen Kenny says that farm succession has been identified as one of the major challenges for global agriculture in 'The Future of Farming', the book emanating from the world's first Global Farmers Master Class. This was a meeting of 50 of the world's leading farmers organised by Rabobank in 2012 to address issues impacting future global food security.
"At Rabobank, we believe it is essential to take some ownership of the challenge of farm succession and try to develop solutions and services to support our clients through their generational transition," Kenny says.
"Here in New Zealand, succession is also very much a concern for local farmers and is one of the key issues consistently raised with the bank in our client councils and at rural community round tables held by the bank."
Further addressing the concerns the farming community has with succession, Rabobank conducted a unique research survey with KPMG to explore the current demographic challenge facing New Zealand's agricultural sector.
The survey - conducted across a diverse group of New Zealand farmers – revealed that less than 20% of respondents had a documented succession plan, 48% had informal plans, and 32% had nothing in place regarding future ownership transition of the family farming business.
Additionally, 59% of those farmers surveyed highlighted their intentions to 'hand over' the farm in the next decade, and 80% wanted Rabobank to provide more support to clients regarding succession.
Kenny says Haworth's appointment reflects Rabobank's commitment to address the farm succession planning challenge across New Zealand.
Haworth says it is exciting to be part of the Rabobank succession team, working with the bank's customers in New Zealand to add value to their businesses and to help families tackle succession in a professional and timely manner.
"My interest in succession facilitation has been driven from my background as a farmer with the need to transition our business," Haworth says.
"Succession often means changes and sometimes challenging conversations for a family and my role will be to help facilitate this process.
"I have been privileged to be involved with clients who have shared their vision for their future and to have helped them develop strategies and solutions to deliver on their goals. With my knowledge of farming, finances and relationships, I am looking forward to being able to help farming families travel the succession journey."
Haworth will be based in Rotorua and will work with New Zealand's succession planning manager Tony Hammington based in Invercargill.
Haworth joined Rabobank in January this year as a rural manager, based in Hamilton and Morrinsville. He has a strong background in agri lending with a lengthy career in farming and then banking in New Zealand as an agribusiness manager and equity partnership manager.
He has worked with farmers in sheep, beef and dairy in the Central Plateau and Waikato regions. During that time he has had a great deal of experience in family farming and the process of bringing the next generation into the business.
"When succession is undertaken really well, families grow stronger and closer together and take opportunities to grow their businesses," he says.
