KPMG's Ian Proudfoot says there are massive opportunities for the sectors, but they would have to move fast. Photo: RNZ/Susan Murray
New Zealand's food and fibre sectors are being told "massive" opportunities lie ahead for the sectors, as long farmers are there for the journey, a new report has found.
Consultancy firm KPMG has released its Today's potential, tomorrow's possibilities report for 2024 at Fieldays, laying bare the highlights and lowlights for the sectors, which earned $57.4 billion in exports in the year to June.
More than 150 industry leaders in food and fibre fields shared their perspectives in the report, and ranked what they saw as the top priorities for the sectors in the coming year.
World-class biosecurity was the top priority again this year, followed by acting on results of gene editing discussions and signing high quality trade agreements.
Many were also concerned about staff morale due to the financial pinch facing many farmers - but they were also hopeful and optimistic about their own businesses.
KPMG global head of agribusiness Ian Proudfoot said there were massive opportunities for the sectors - but they would have to move fast.
"The world is facing unprecedented volatility which is creating significant challenges. These need to be understood and responded to if we are to keep growing food and creating value," Proudfoot said.
"However decarbonisation and bio-based economic models also present massive opportunities, which we should move towards as quickly as possible."
Proudfoot said the sector needed to capitalise on New Zealand's global reputation as a top food producer and leader, but it was crucial the value was brought back to the farmgate.
He said there needed to be sustainable solutions to increasing revenue and reducing costs, to ensure the sector's long-term viability and resilience.
These could include farmers diversifying their income, like installing solar panels on farm, or use digital technologies like regenerative artificial intelligence to drive on-farm efficiencies.
"Consequently, sustainably increasing revenue does not mean riding commodity price movements up and down, and we take from the roundtables that most industry leaders hold the same view," he said.
"What it does mean is diversification of farm income into new sustainable revenue streams that provide the farmer or grower confidence to invest into the future of their business."
The report acknowledged good focus from the coalition government on opening up gene editing and biological technologies, cutting red tape for resource consents like water storage and strengthening New Zealand's international trade relationships.
But it said there were concerns about government funding cuts to scientific research, the lack of a national food strategy, growing mental health concerns and a greater focus needed for creating bio-economic solutions.
These were issues as the disruption to food systems had accelerated in the past few years, it said.
"The global food system is moving forward at pace but there is little evidence that [New Zealand is] keeping up with the transformation," it said.
In the report, Trade, Agriculture and Forestry Minister Todd McClay also acknowledged how important top priority biosecurity was for the sector and the economy.
"We are focused on readiness for issues like highly pathogenic avian influenza, foot and mouth disease and brown marmorated stink bug, and working closely with the sector to ensure biosecurity is front of mind and strengthened on the frontline."
To farming, McClay said the government acknowledged the hard work and ongoing resilience of those in the sectors - especially with soft commodity prices, high input costs, high inflation and interest rates hitting them hard in recent years.
But he said it was committed to supporting farmers to farm.
"We are determined to drive more value back to the farmgate and get more money into producers' pockets."
The report also urged industry leaders to alter their leadership style to better respond to the needs and expectations of a new generation of employees.