Shining a light through the gloom
Published date | 24 May 2023 |
Publication title | Whanganui Midweek |
Farmers and growers across New Zealand certainly have valid reasons to feel gloomy about the sector’s prospects. Cyclone Gabrielle and other weather events have taken their toll. Policy change and regulatory reform in the areas of freshwater and climate change have been poorly implemented and communicated. Inflationary pressures have taken the gloss off what has been an extended period of healthy farmgate returns. With on farm inflation running about twice the rate of New Zealand’s average 6.7per cent, this will hurt farmers in the coming year. The good news is that while inflation is persistent and at elevated levels, it appears the peak is over, and interest rates will also trend down in the year ahead.
The interesting part of today’s situation is that this sector has faced many similar challenges before and worked through these to thrive. I have no doubt we will do this again, and the future remains bright for those prepared to lift their heads and realise the opportunity.
Farmers and growers have missed the message they continue to be world leading in nearly every area of their business, but we need to keep moving to stay there. Others are catching up, and as an exporting country we need to ensure we stay at the head of the pack.
It is time to be forward thinking, accept change is coming, and adapt to ensure we remain global leaders in the area of food and fibre production. Governments are not driving this agenda. This is consumer and customer driven change, and while some aspects may not seem rational to Kiwi farmers, they will be requirements imposed by retail chain partners in order to retain the ability to access their customers. There will be limited premiums for these individual requirements, unless we stack up a...
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