1. IFAJ CONGRESS 2015 HAMILTON, 14 OCTOBER 2015 Ian Proudfoot Global Head of Agribusiness October 2015 kpmg.com/nz GROWING VALUE: A DISRUPTIVE PRESCRIPTION FOR NEW ZEALAND AGRICULTURE

2. 2 BOUNDARIES OF THE FOOD WORLD ARE BEING REINVENTED…CONTINUOUSLY! VENTURE CAPITAL INTEREST IN THE FOOD AND AGRI SECTOR GREW RAPIDLY IN 2014 UP 54% TO USD486 MILLION

3. 3 ACCESSIBI LITY ENVIRONME NT BOUNDARI ES COMMUNITIE S DISRUPTIO N THE FORCES DRIVING OUR MULTIPOLA R WORLD PRECISION AG RELIGION FOOD ON DEMAND COUNTERFEITING FOOD PRINTING

4. 4 FURTHER EMERGING FOOD TRENDS ALTERNATIV E PROTEINS LOCAL FOOD FOR THE WORLD FOOD SOLUTIONS FOR KEY DEMOGRAPHICS OBJECTIVELY ASSESSING GM FOOD AS A DRIVER OF WELLNESS CONSUMER RESOURCE CONSTRAINTS

5. 5 FINANCIAL RETURNS WILL BE DRIVEN BY OUR ROLE IN THE VALUE CHAIN ABILITY TO CAPTURE VALUE INCREASES BY SHIFTING TOWARDS THE CONSUMER 10 - 30% OF RETAIL VALUE CAPTURED BY PRODUCERS INPUT PROVIDERS FARMERS AND GROWERS PROCESSORS AND EXPORTERS FOOD MANUFACTURE RS RETAILERS AND DISTRIBUTORS CONSUMERS

6. 6 INVESTMENT IS NECESSARY TO GET CLOSER TO HIGH VALUE CONSUMERS TANGIBLE CAPITAL ASSETS PEOPLE BRAND EXPERIENC E INNOVATIO N CONSUMER CONNECTI ON CRITICAL INTANGIBLE INVESTMENTS Often lack governance focus on intangibles More difficult to articulate expectations Too much focus on easier investments and overlook intangible

7. 7 GETTING THE DNA RIGHT FOR SUCCESS

8. 8 WHAT COULD NZ EXPORTS IN 2035 LOOK LIKE? TARGET $100 BILLION (5.4% CAGR) GROWTH Natural Beef and Veal Natural Dairy Liquids Kiwifruit Wine Aquaculture Apples, pears and cider Other horticulture Wild Harvest Fishing Honey Processed foods DECLINE Natural Dairy Powders Logs and timber MAINTAIN Lamb and mutton Animal co-products Grains and seeds Live animals Goat milk Venison EMERGE Engineered timber Climate related products Medicinal plants Pork Poultry Insect proteins Synthetic foods Sheep milk

9. © 2015 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International Cooperative. THANK YOU Ian Proudfoot Global Head of Agribusiness KPMG Auckland, New Zealand +64 (0) 9 367 5882 +64 (0) 21 656 815 iproudfoot@kpmg.co.nz www.fieldnotes.co.nz