Wednesday, 08 July 2015 05:46

Focus on productivity

Written by 
Georgia Twomey, Rabobank. Georgia Twomey, Rabobank.

A new report says productivity growth is the key to maintaining New Zealand agribusiness’ global competitive edge in the coming decades.

In its flagship 2015 research report ‘Unlocking productivity growth in the Australian and NZ food & agribusiness sector’, agri banking specialist Rabobank says productivity growth must be reignited to drive farmer profitability.

It says the rising cost of production in recent years has pressured the competitive position of NZ agriculture in the world market and turned a spotlight on Kiwis’ slowing productivity growth.

Reviving this growth is a “particularly pressing issue”, the report warns – given the challenges faced – to reduce NZ agriculture’s environmental footprint while staying internationally competitive. 

Individual farmers will have to make productivity gains to drive profitability and sustainability, and other businesses likewise throughout the food and agriculture supply chain. 

A particular challenge for NZ, says report co-author Rabobank analyst Georgia Twomey, will be in reigniting sustainable productivity growth in agriculture against the backdrop of strengthening environmental regulation. 

“The open market economic reforms in the mid-1980s forced global competiveness to the forefront across the NZ agricultural sector, driving efficiency gains across all parts of the value chain,” she said. 

“Additional productivity growth has been derived from changing land use, particularly the switch from extensive sheep and beef farming into dairy production. 

“And the significant expansion of irrigated land area – which has doubled every 12 years since 1970 – has also contributed to land use change and increased productivity,” says Twomey.

More like this

Dairy demand on the rise

There is increasing evidence that dairy demand is on the upswing, according to Rabobank senior agricultural analyst Emma Higgins.

Carrot and stick approach needed

With increasing and rising financial challenges, a well-balanced combination of carrot and stick will be needed to help dairy companies reduce greenhouse gas (GHG) emissions.

"Further rate hikes unlikely"

According to Rabobank, inflation expectations in the New Zealand economy are headed in the right direction, with interest rate relief on the cards for the second half of 2024.

Featured

Sheep drench resistance costly

Analysis by Dunedin-based Techion New Zealand shows the cost of undetected drench resistance in sheep has exploded to an estimated $98 million a year.

Dairy sheep and goat turmoil

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.

Hurry up and slow down!

OPINION: We have good friends from way back who had lived in one of our major cities for many years.

National

Govt urged to reduce ETS units

The Climate Change Commission wants the new Government to reduce NZ Emissions Trading Scheme (ETS) auction volumes as son as…

Dairy sheep, goat woes mount

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand…

Machinery & Products

All-terrain fert spreading mode

Effluent specialists the Samson Group have developed a new double unloading system to help optimise uphill and downhill organic fertiliser…

Can-Am showcases range

Based on industry data collected by the Motor Industry Association, Can-Am is the number one side-by-side manufacturer in New Zealand.

» Latest Print Issues Online

Milking It

Papal visit

OPINION: European farmers are going to extreme lengths to have their message heard.

Thai egg tarts

OPINION: The hustle and bustle of one of Bangkok's most popular fast food outlets may feel a world away from…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter