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

NZ household food waste falls again

Kiwis are wasting less of their food than they were two years ago, and this has been enough to push New Zealand’s total household food waste bill lower, the 2025 Rabobank KiwiHarvest Food Waste survey has found.

Featured

Australia develops first local mRNA FMD vaccine

Foot and Mouth Disease outbreaks could have a detrimental impact on any country's rural sector, as seen in the United Kingdom's 2000 outbreak that saw the compulsory slaughter of over six million animals.

NZ household food waste falls again

Kiwis are wasting less of their food than they were two years ago, and this has been enough to push New Zealand’s total household food waste bill lower, the 2025 Rabobank KiwiHarvest Food Waste survey has found.

Editorial: No joking matter

OPINION: Sir Lockwood Smith has clearly and succinctly defined what academic freedom is all about, the boundaries around it and the responsibility that goes with this privilege.

National

All eyes on NZ milk supply

All eyes are on milk production in New Zealand and its impact on global dairy prices in the coming months.

Machinery & Products

Leader balers arrive in NZ

Officially launched at the National Fieldays event in June, the Leader in-line conventional PRO 1900 balers are imported and distributed…

JDLink Boost for NZ farms

Connectivity is widely recognised as one of the biggest challenges facing farmers, but it is now being overcome through the…

New generation Defender HD11

The all-new 2026 Can-Am Defender HD11 looks likely to raise the bar in the highly competitive side-by-side category.

» Latest Print Issues Online

Milking It

Full cabinet

OPINION: Legislation being drafted to bring back the controversial trade of live animal exports by sea is getting stuck in the…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter