increase font size
Mike Petersen, special agricultural trade envoy.
The world has changed and we need to understand that, says Mike Petersen, special agricultural trade envoy.
Nimbleness and agility is the key – both for farm businesses and for the bigger companies.
"I don't think we understand well enough the level of volatility that will continue for the foreseeable future," the former Beef + Lamb NZ chairman told an Agcarm conference in Auckland.
Dairy farmers are sick of hearing it, but the future is still bright: the fundamentals are incredibly strong, Petersen said.
Finance Minister Bill English had been reported as saying we will never $8/kgMS again. "Well, he is wrong: I guarantee we will. We will see $4/kgMS again as well," Petersen says. "That's what's happening in these markets."
Market insights and market intelligence will be important in the next 12-24 months, he said.
Food retailers now operate on just-in-time delivery. NZ produces 30% of the cross-border trade in dairy – that will always get hit first and hardest by volatility. Domestic producers will always be more cushioned.
"We need to build a bit more resilience. I get a bit frustrated with farmers moaning about volatility.... looking for someone else to fix these problems.
"What we don't do well enough in NZ – as growers and producers – is set ourselves up to be more resilient in the face of this volatility."
Our country of 4.6 million produces enough food for 40 million people, Petersen said.
"So we're not looking to sell food to the masses. We're looking to target those discerning consumers who will pay premium prices for our quality products."
The world was built on self-sufficiency in food but now, with scarce resources and a lack of water, countries are realising they can't rely on producing food themselves forever. So the sector will see volatile times but also continual upward movement in demand.
Petersen says to succeed in the world we need to be much more nimble and agile than ever before.
"The big companies and corporates are struggling with the pace of change happening worldwide. The pace of change is phenomenal.
"Very often the big companies don't see it coming or when they do it is very hard to react, it is hard for them to turn around, it is hard for them to engage in an intimate way with a lot of the customers.
"My advice to big companies is 'yes you have a future'. But in my view you need to start to break yourselves down a bit and get into smaller more agile groups to deal more intimately with groups of consumers rather than countries and markets."
Nimble and agile is the key, he said. Big international food companies like Tesco and McDonalds have been challenged in adapting to the pace of change.
Recent widespread autumn rain will have triggered the germination of subterranean clover seeds, and the resulting seedlings should be allowed to reach the 3–4 trifoliate leaf stage before grazing, says Beef+Lamb NZ.
A hub farm in each of Beef + Lamb NZ’s seven regions and more focus groups are being rolled out for the red meat sector this year.
Be ready to be nimble. That's the message to New Zealand primary exporters from international trade expert, company director and farmer Mike Petersen.
The red meat sector is poised for a strong rebound this season, with export receipts forecast to top $10 billion and farm profitability to almost double.
The cost of producing milk in New Zealand continues to compare favourably with other exporting regions despite a lift in production costs over the past five years.
The Good Carbon Farm has partnered with Tolaga Bay Heritage Charitable Trust to deliver its first project in Tairāwhiti Gisborne.
Education union NZEI Te Riu Roa says that while educators will support the Government’s investment in learning support, they’re likely to be disappointed that it has been paid for by defunding expert teachers.
The Government says it is sharpening its focus and support for the food and fibre industry in Budget 2025.
A European Union regulation ensuring that the products its citizens consume do not contribute to deforestation or forest degradation worldwide threatens $200m of New Zealand beef and leather exports.
A long-acting, controlled- release capsule designed to protect ewes from internal parasites during the lambing period is back on the market following a comprehensive reassessment.
Healthcare appears to be the big winner in this year's budget as agriculture and environment miss out.
