Friday, 04 September 2015 07:43

The value add move

Written by 

Lancorp chief Steven Carden says NZ has a limited capacity to just keep producing more product; only added value will increase the revenue from primary exports. 

NZ has to convince people to pay more for our products, but to do that we nust create an appealing value proposition and differentiate our products from others in a competitive global market.

And Landcorp is leading the way, Carden says.

“We have been working with our partners in the market to understand what consumer segments we really want to target and what we offer that they are prepared to pay a premium for,” Carden told Rural News. 

“We are looking for partners who are innovative. Ultimately if we can’t create new products and develop new relationships with premium customers we’re not going to find a way to significantly improve the returns on farms.” 

Carden says the company is also exploring selling grass-fed and GMO-free beef to parts of Asia, and other new products developed using base products from Landcorp farms. This targets consumers who are health conscious and who want safe food of guaranteed quality from farm gate to plate. Also targeted are people prepared to pay a lot of money for high quality status products, such as handbags made from deer leather.

Wool income for the year was $10.7m – up more than a $1m on last year. 

Carden says many farmers have tended to shear their sheep almost as an animal welfare thing, but he believes new and exciting uses are being found for wool – slippers, tennis balls and air filters.

But to get into high value markets changes are needed onfarm to ensure raw product of the highest quality. For example, deer need to be handled carefully in the yards to avoid damaging the animal’s hide. 

At present, all the products for the high value consumer goods are  coming off Landcorp farms, but Carden says in time they will be on the lookout for other farmer suppliers prepared to comply with the company’s high standards.

More like this

Hawke's Bay to the world

Rockit chief executive Mark O'Donnell says consumer awareness for the brand continues to improve each year.

Go woke!

OPINION: The Hound reckons the powers at Landcorp (or as they/them like to call themselves, Pāmu) are coming under the microscope with the new government in place.

Featured

Feds back Fast-Track Approval Bill

Federated Farmers is throwing its support behind the Fast-track Approvals Bill introduced by the Coalition Government to enable a fast-track decision-making process for infrastructure and development projects.

Machinery builder in liquidation

In what appears to be a casualty of the downturn in the agricultural sector, a well-known machinery brand is now in the hands of liquidators and owing creditors $6.6 million.

Two hemispheres tied together through cows

One of New Zealand’s deepest breeder Jersey herds – known for its enduring connection through cattle with the UK’s longest reigning monarch, Queen Elizabeth II – will host its 75th anniversary celebration sale on-farm on April 22.

National

Ploughing Champs success

Sean Leslie and Casey Tilson from Middlemarch, with horses Beau and Dough, took out the Rural News Horse Plough award…

Farmers oppose work visa changes

Farmers are crying foul over changes announced by the Government this week to the Accredited Employer Work Visa (AEWV) scheme.

Machinery & Products

PM opens new Power Farming facility

Morrinsville based Power Farming Group has launched a flagship New Zealand facility in partnership with global construction manufacturer JCB Construction.

AGTEK and ARGO part ways

After 12 years of representing the Landini and McCormick brands in New Zealand, Bay of Plenty-based AGTEK and the brands’…

100 years of Farmall Tractors

Returning after an enforced break, the Wheat and Wheels Rally will take place on the Lauriston -Barhill Road, North-East of…

» Latest Print Issues Online

The Hound

Crazy

OPINION: Your canine crusader was truly impressed by the almost unanimous support given by politicians of all stripes in Parliament…

More!

OPINION: As this old mutt suggested in the last issue, MPI looks a very good candidate for some serious public…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter