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

2. Goldn Hills 28 th Sept You are here

3. Goldn Hills 28 th Sept Create Solutions in Agriculture

4. 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

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

6. Goldn Hills 28 th Sept Some historical analysis

7. Goldn Hills 28 th Sept

11. Importance of Agriculture Total area (including minor islands)26.8 million hectares Farming land16.5 million hectares - 13.3 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

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

13. Goldn Hills 28 th Sept

16. Some Economic & Production Trends

17. Goldn Hills 28 th Sept

19. Wheat - NZ Average $ 0 50 100 150 200 250 300 350 1970197519801985199019952000 NZ $ Nominal Real

20. Goldn Hills 28 th Sept Wheat - NZ Average $ 0 50 100 150 200 250 300 350 1970197519801985199019952000 NZ $ Nominal Real

21. Goldn Hills 28 th Sept Dairy - Herd Size & Production 0 20 40 60 80 100 120 140 160 180 200 191519251935194519551965197519851995 Herd Size Kg MF / Cow

22. Goldn Hills 28 th Sept

27. World Commodity Price Trends 1950 - 1995

28. 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

29. Goldn Hills 28 th Sept And it gets worse

30. Goldn Hills 28 th Sept

43. 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

44. Goldn Hills 28 th Sept Issues facing farmers Increasingly technical

45. Goldn Hills 28 th Sept Go from this

46. Goldn Hills 28 th Sept To this

47. Goldn Hills 28 th Sept

49. Issues facing farmers Increasingly technical Market & Regulatory demands –Environment

50. Goldn Hills 28 th Sept

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

53. Goldn Hills 28 th Sept Traceability

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

55. Goldn Hills 28 th Sept

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

61. 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

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

63. Goldn Hills 28 th Sept

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

65. 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

66. Goldn Hills 28 th Sept

72. This year, totally paperless

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

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

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

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

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

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

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

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

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

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

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

84. Goldn Hills 28 th Sept

85. Solutions Example WCS Package (10 ha)

86. Goldn Hills 28 th Sept Cost To client per kg DM

87. Goldn Hills 28 th Sept Benefit To Client

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

89. Goldn Hills 28 th Sept

90. 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

91. Goldn Hills 28 th Sept Our future is in your hands