Goldn Hills 28 th Sept Goldn Hills, Securing our Future ? Colin Brown Wrightson Solutions Dunedin

Goldn Hills 28 th Sept You are here

Goldn Hills 28 th Sept Create Solutions in Agriculture

Goldn Hills 28 th Sept Audience Type? A. Grew up in farming, love agriculture B. Agriculture/Horticulture is a major component of your teaching C. Chance to get away for a few days and get on the booze with a few old mates

Goldn Hills 28 th Sept Topics Importance of Agriculture to NZ Some historical trends Issues facing farmers What Wrightson is doing

Goldn Hills 28 th Sept Some historical analysis

Goldn Hills 28 th Sept

Importance of Agriculture Total area (including minor islands)26.8 million hectares Farming land16.5 million hectares million grasslands Farm numbers (1996)66,045 holdings Farm types (1996) 25% dairy 36% sheep & beef 5 % mixed livestock 17% horticulture 2% crops 15% other

Goldn Hills 28 th Sept Agricultures Contribution 8% of the workforce 12% of GDP 53% of exports

Goldn Hills 28 th Sept

Some Economic & Production Trends

Goldn Hills 28 th Sept

Wheat - NZ Average $ NZ $ Nominal Real

Goldn Hills 28 th Sept Wheat - NZ Average $ NZ $ Nominal Real

Goldn Hills 28 th Sept Dairy - Herd Size & Production Herd Size Kg MF / Cow

Goldn Hills 28 th Sept

World Commodity Price Trends

Goldn Hills 28 th Sept Historical Analysis Profitability of farming has steadily declined for all of this century Disguised by inflation and commodity price cycles

Goldn Hills 28 th Sept And it gets worse

Goldn Hills 28 th Sept

Messages/ Consequences Use technology to keep increasing scale Use technology to keep increasing output Find better paying markets Change to a higher value output Or - –Find other sources of household income –Or change careers

Goldn Hills 28 th Sept Issues facing farmers Increasingly technical

Goldn Hills 28 th Sept Go from this

Goldn Hills 28 th Sept To this

Goldn Hills 28 th Sept

Issues facing farmers Increasingly technical Market & Regulatory demands –Environment

Goldn Hills 28 th Sept

Issues facing farmers Increasingly technical Market & Regulatory demands –Environment –Traceability (food safety)

Goldn Hills 28 th Sept Traceability

Goldn Hills 28 th Sept Issues facing farmers Increasingly technical Market & Regulatory demands –Environment –Traceability (food safety) Technology advances

Goldn Hills 28 th Sept

Issues facing farmers Increasingly technical Market & Regulatory demands –Environment –Traceability (food safety) Technology advances Size & scale

Goldn Hills 28 th Sept Critical Success Factors Have a competitive advantage that allows you to be in the top 20% in your target market- And capitalize on it. If you dont, life expectancy = < 15yrs

Goldn Hills 28 th Sept What Wrightson is doing Spends $6 million on R&D each year –Forage –Genesis Research & Development Ltd

Goldn Hills 28 th Sept

What Wrightson is doing Spends $6 million on R&D each year –Forage –Genesis Industry Solutions –ILM (Integrated Lamb Marketing) –IFM (Integrated Fibre Marketing)

Goldn Hills 28 th Sept What Wrightson is doing Spends $6 million on R&D each year –Forage –Genesis Industry Solutions –ILM (Integrated Lamb Marketing) –IFM (Integrated Fibre Marketing) On farm solutions –IFS (Integrated farm solution) –Elite Forage

Goldn Hills 28 th Sept

This year, totally paperless

Goldn Hills 28 th Sept Solutions Example WCS Package (10 ha)

Goldn Hills 28 th Sept Current Grower Cost - 10ha WCS

Goldn Hills 28 th Sept Current Grower Cost - 10ha WCS -Seed Break down

Goldn Hills 28 th Sept Current Grower Cost - 10ha WCS

Goldn Hills 28 th Sept Current Grower Cost - 10ha WCS

Goldn Hills 28 th Sept Current Grower Cost - 10ha WCS

Goldn Hills 28 th Sept Summarized Grower Cost - 10ha WCS

Goldn Hills 28 th Sept Solutions Example WCS Package (10 ha)

Goldn Hills 28 th Sept Solutions Example WCS Package (10 ha)

Goldn Hills 28 th Sept Solutions Example WCS Package (10 ha)

Goldn Hills 28 th Sept Solutions Example WCS Package (10 ha)

Goldn Hills 28 th Sept

Solutions Example WCS Package (10 ha)

Goldn Hills 28 th Sept Cost To client per kg DM

Goldn Hills 28 th Sept Benefit To Client

Goldn Hills 28 th Sept Benefit To Wrightson Profit from capturing IP and System Information in a Solution Package

Goldn Hills 28 th Sept

The Future? Technology will keep advancing Prices (in real terms) will keep dropping Increasing complexity & scale Increasing precision Divergence of systems to niches with best competitive advantage Vertically integrated systems, managed through supply contracts

Goldn Hills 28 th Sept Our future is in your hands