Friday, 05 June 2020 11:29

Get ready for the ‘now’ norm

Written by  Mark Daniel
KPMG’s head of agribusiness Ian Proudfoot describes the Covid-19 event as the most disruptive ever in the global ecomomy. KPMG’s head of agribusiness Ian Proudfoot describes the Covid-19 event as the most disruptive ever in the global ecomomy.

Get prepared for a ‘Now Normal’ future, says Ian Proudfoot – Global Head of Agribusiness for KPMG – discussing the likely effects of COVID-19 in the months to come.

Speaking via a recent webinar, organised by AgriTech New Zealand, Proudfoot described the event as the most disruptive ever in the global economy,

“Our experience is our biggest asset – and also our biggest constraint – is the fact that we need to overcome our educated incapacity.” 

He suggests there has never been a better time for a rethink about the way we operate and open our minds up to new ways of doing things.

With the early stages of the lockdown creating irrational waves of panic buying, Proudfoot says this level of insecurity, the greatest since the 1940s and World War 2, means that food and its guaranteed availability is no longer a given.

“The level of food insecurity over the last four weeks has seen people give the freezer a good workout, but also reverting to traditional home cooked meals – a trend that will hit the suppliers of ready or high-end meals hard,” he says.

Proudfoot says that food security within NZ means around 1.25 million in the country were “food insecure”. He claims the Government will need to shift its focus from encouraging exports to a position that says we need to feed our own first.

“This might mean structured investment in rural infrastructure to attain the required levels of security and an investment in water,” Proudfoot explained. “Backing off from the intense pressure to adopt environmental schemes it is trying to place on farmers at the moment and generate a better connection between rural and urban communities.”

At the producer level, he says stricter border controls will constrain immigrant and seasonal labour, necessitating a move to mechanisation and robotics quickly and the redeployment and retraining of displaced labour or the unemployed.

“The social isolation we have seen over the last month or so has certainly accelerated the uptake of digital solutions in our day-to-day lives,” Proudfoot added. “I believe businesses will need to take this on board, probably re-inventing themselves to deliver direct to consumers, be they the growers, manufacturers or retailers.” 

Discussing likely changes in future consumer spending, he thought people would be looking for lifestyle solutions that helped build immunity and minimise the risk of any future contagions. 

“This means producers will need to establish products that offer unique health benefits or immunity boosting capabilities, with sales of functional and nutraceutical products going stratospheric.”

He added that the impacts of C-19 are unprecedented and will be long lasting.

“This means primary and secondary producers will need to rethink their product offerings in a period of austerity, where traditional demand will have shifted. History will recall that this crisis came about from a food safety failing, so in the future, food supply will need to be traceable, trusted and safe for the global community.”

More like this

Covid's urban/rural divide

According to a new study from the University of Otago, there was a visible rural/urban divide in Covid-19 vaccination rates.

Covid inquiry to visit Northland

Better understanding the impact of the Covid-19 pandemic on the people of Northland, and the role communities played in the pandemic response, will be the focus of a visit from the Covid-19 Inquiry, says inquiry chair Professor Tony Blakely.

Reflecting a challenging period

Damien O'Connor admits his six years in office were incredibly challenging, with Covid, droughts, floods, storms, M. bovis and volcanic eruptions to name a few.

Editorial: Time for change

OPINION: With election day only a few days away and advance voting well underway, there appears to be a mood for change in rural and provincial New Zealand.

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