Agribusiness Agenda 2015, Volume 1 – Growing value

Agribusiness Agenda 2015, Volume 1 – Growing value

The theme of volume 1 of the 2015 Agribusiness Agenda – Growing value, is shaped by two key factors facing the New Zealand primary sector.

Ian Proudfoot

Global Head of Agribusiness, Partner - Audit

KPMG in New Zealand

Mount Aspiring New Zealand

Firstly, at the top-of-mind for many sector leaders is uncertainty around the future of the dairy sector with the unexpectedly deep decline in global dairy commodity prices, and the emergence here of new well capitalised dairy processing operations. Discussions have intensified on what the future structure of the industry will look like and whether enough is being done to maximise a sufficient share of the value the milk we produce creates.

Secondly, although the long term outlook for our primary exporters remains positive, growing value, in dairy or any of our other primary sector’s challenges agribusiness leaders to be more proactive in finding more sustainable ways to generate revenue in the future.

The closer New Zealand exporters can get to the consumers of their products will determine their long term success and the report provides insights on what a company needs to do to its culture and its DNA to become a sustainable high value enterprise. The report highlights that transforming to a high value culture is not done quickly and requires strong leadership and sustained investment in people, innovation and consumer understanding, focused towards a clearly articulated company purpose.

Some of the key Agenda findings and recommendations:

  • Biosecurity – Events during the year again highlighted the risks and costs to our economy of biosecurity incursions.
    > Agenda action: Prevention is many times cheaper than cure.
  • Building strong connected rural communities – Fast connectivity in rural areas not only supports economic growth, it enhances the health and wellbeing of rural communities.
    > Agenda action: Thinking creatively about connectivity to secure a future technology dividend.
  • Defending our food – When it comes to food safety New Zealand cannot afford and average performance. Our economic prosperity relies on the trust we earn from being ahead of our competitors.
    > Agenda action: We must be proactive in setting food safety standards.
  • Deepening the talent pool – The primary sector needs people from a diverse range of backgrounds. It needs app developers and consumer experience experts, as much as scientists and farm labourers.
    > Agenda action: The industry needs a strategy capable of attracting 50,000 additional people by 2025.
  • Getting intimate with our consumers – Value is created by getting closer to consumers, by having people on the ground to interact with them.
    > Agenda action:  We can only deliver what the consumer wants when we know what they want.
  • Building a resilient, healthy business culture – The growing compliance burden has highlighted many businesses lack the knowledge and relationships they need to manage their way through the regulatory environment.
    > Agenda action: Business owners need the insights and support to build a resilient workplace culture.

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