More farm collaboration needed

Young agriculture leaders have vented frustration at the lack of collaboration between industry players, a new survey reveals.

KPMG surveyed more than 50 young leaders, and hosted a one-day summit for its annual 2015 Agribusiness Agenda report.

Senior manager Justine Fitzmaurice, who advises agribusiness companies, said there was a real sense of frustration among young leaders in the sector.

"They cannot understand why current leaders are not collaborating in a meaningful way - and combining their resources for the benefit of everyone across R&D, marketing, processing or distribution. Instead, we have companies continuing to work in silos. The message we got from young leaders is that they are exasperated by the duplication and sheer waste of it all."

Julia Jones, who co-authored the agenda, said under-30s viewed collaboration as a natural way of doing business.

"They want to see us working together to gain market advantage against our international competitors; not competing against each other to needlessly drive prices down for everyone in New Zealand."

For example, they were dismayed by the 'street fighting' that occurs among companies in New Zealand's red meat sector, she said.

"They've gone through an education system that's based on achieving outcomes in groups. For them, it's just a normal way of working - and they believe it should be part of everyday business."

Professor Kaj Storbacka told the summit he advocated the concept of market-shaping, because it is essentially creating your desired market, rather than following an existing one. "Competitive strategy is not the silver bulletthose who want to shape markets need to engage in collaborative strategy."

Te Puke Young Farmers Club president Luther Siemelink said it was a valid topic to be raised and it would start discussion.

If it became an issue for young farmers or members, then it would be put forward, he said, "but most of our guys are trying to concentrate on their own businesses".

However, competing against each other did not make much sense and was like "shooting yourself in the foot", he said.

KEY FINDINGS

* The emerging leaders called for New Zealand to reach a consensus on the use of genetic modification. While opinions were divided on whether the best strategy was to embrace GM or be GM-free, all agreed a decision was needed urgently.
* Emerging leaders want to see a single cohesive 'NZ Inc' brand that can be used by all NZ-produced products that meet its accreditation criteria.
* Kiwi companies should be gaining insights into the needs of the 2035 consumer - using a range of social and scientific disciplines - instead of conducting traditional market research into the consumer of today.

- KPMG Agribusiness Agenda