Pressures on NZ growers to minimise food waste and strike a greater balance between supply and demand don't just stem from domestic regulatory pressures in areas such as freshwater management, but because our global competitors face them too.
"If we can prove that we're more efficient and actually outperform our competitors, we're in a stronger position comparatively."
Holgate's appointment was made in line with a global focus by Rabobank on boosting food security. Here in NZ, he's charged with developing and driving the bank's strategies and initiatives in this regard.
"That's about ensuring our clients and the (agribusiness) sector make decisions that ensure they are fit for the future world they're moving into, which is likely to be quite different to the world they are operating in now."
"We need to tackle the twin issues of ensuring global food security for a growing population, whilst also reducing the impact that producing food has on the environment/climate."
"We know this requires changes to how food is produced, and how we consume food — but an important (but often overlooked) part of the solution is minimising the amount of food waste — i.e., food that is produced, but ultimately doesn't end up being consumed, for various reasons."
At the macro level, inadequate infrastructure or systems result in food losses during the transportation and storage stages, as well as a misdirection of food supply, creating food surpluses that can't be utilised where it is needed.
"Rabobank believes getting a better understanding of the scale and drivers of this issue will help inform solutions to help address it."
"Globally we have to feed a growing population and do it in such a way that it minimises the impact on the environment, That's going to impact how we produce food and consume it."
Holgate articulates a "we're-all-in-this together" approach to tackling food waste.
"Climate change and its impact on natural resources is something that's common to us all. We're all part of the food supply chain from the producer to the consumer, because it's not just the food that's being wasted — it's the resources and the time taken to produce the food which is lost."
We all have roles and responsibilities in creating a more efficient food supply chain, he says.
Domestically, many of the rules and regulations governing agriculture which are being written now will "really define what, where, and how we farm over the next generation", Holgate says.
"It's essentially requiring the sector to account for the environmental impact of their farming or growing."
Water quality management is the biggest of these, requiring producers to account for nutrient loss from their operation by mitigating or reducing their loss. There's an inherent opportunity cost in improving on-farm infrastructure or fencing waterways, he says.
"Lost resources from farming systems are better kept in, and there's an opportunity at both the individual and industry level, to build efficiencies into those systems to better understand the land's natural characteristics, and really drive how we can better map land use."
"This will also drive production efficiency through technological efficiency, and that's positive."
Holgate has no doubt NZ producers are up to the challenge of adapting the way they operate as he's suggested they need to.
"They've always been good at adapting to changing market conditions — in lots of ways that can be a source of competitive advantage — because we are free of Government subsidies that give false market signals."
"It's essential to adapt and respond to what's happening in the market because we don't have that same safety net that other countries have."
"During Covid we started to develop a range of markets globally. There was a period early on where the Chinese stopped buying our meat, and (while) they were our largest market, we were still able to direct that product into other markets.
"That shows the importance of diversification, and our ability to pivot and send these products to other markets or sales channels."
Holgate says the hard work NZ has already done in the past two years to adapt to a Covid-influenced world will be to varying degrees what our competitors have to grapple with in the future — even though it might not be to the same extent.
"Accounting for a greater proportion of the environmental impact of food production is something where pressure will come on our competitors from the markets, from society, from NGOs — so us tackling this now, and if we can do it right, is where our competitive advantage will come.
"In five or 10 years down the track we'll be operating farm systems, we'll be implementing practices, and we'll have technology that enables us to be really efficient as environmental producers of food."
