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Home / New Zealand

Landcorp's chief unleashed

By John Donnachie
NZME. regionals·
18 Apr, 2014 06:00 PM5 mins to read

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Landcorp's chief executive Steven Carden.

Landcorp's chief executive Steven Carden.

Meeting talented Kiwis, sharing ideas and helping them reach their goals is a privileged role, says Landcorp's chief executive Steven Carden.

Mr Carden is back home after being overseas in the United States as a global management advisor and more recently, in Australia with PGG Wrightson Seeds as General Manager.

The "diversity and complexity" the Landcorp role offered was particularly attractive and the chance to help make New Zealand farming more successful was especially a big enticement.

Based in Wellington, Mr Carden oversees the running of 137 farms with a projected return of $250 million dollars in revenue this year. Effectively, he is boss of the country's largest farmer.

He balances his responsibilities and busy days by unwinding with his family enjoying the great Kiwi outdoors.

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"I have three young kids so I try to prioritise time at home. My wife has been very influential throughout my life and she ensures I keep my feet firmly on the ground," he said.

Besides, getting tackled by the kids as you come through the door after a long day is the 'best welcome' and keeps everything in perspective.

Just back from China, Mr Carden found his trip particularly enlightening, offering a valuable insight to consumer demand there. He said New Zealand's primary sector is on the threshold of "extraordinary growth and change".

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"Without question, the Chinese markets are a world of opportunity for this country," he said.

It would ultimately mean a move away from traditional western markets as we look to cater for all the Asian markets and their unique consumer tastes.

Meanwhile, Mr Carden has a clear strategy for Landcorp which includes revisiting familiar pastures with plans for expansion into sheep, beef and deer enterprises. Previously, the organisation had focused on building up its dairy portfolio.

"I'm keen to increase our level of interaction with the broader industry. We're particularly interested in building partnerships with Maori groups looking to develop their farming assets and people," he said.

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There were no plans to introduce sharemilking opportunities into the current structure.

"Our long-term view is to maintain the system we have with those we currently employ. It ensures adequate controls of our properties."

He is particularly bullish about New Zealand's economic fortunes, a vision outlined in a book he authored - New Zealand Unleashed - predicting the primary sector can have a bright future infused by innovation, technology and younger people but warned, it needs to embrace foreign ownership.

The future will see genetics and advanced data measuring systems on-farm becoming a norm as farmers become more attuned to the needs of customers. Niche products such as sheep and goats' milk will flourish "as land use continues to be optimised and economic feasibility of various industries change", he said.

Farms will be more environmentally driven with focus on "feed conversion efficiency with forage types tailored to animal genetics".

Above all, younger people and Maori in particular had a significant role to play as increased opportunities arose from the food technology sector.

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"They [Maori] will be key especially in areas of in-market partnerships, heritage brands and land sustainability," he said.

Greater foreign ownership was necessary to achieve the goal of doubling our primary exports by 2025. The reality is the kind of capital investment required is not available in New Zealand.

"We are a nation that is asset rich but cash poor. We simply don't save enough as a country. So we either become more comfortable with foreign investment developing models for maintaining control, or we accept lower standards of living for future generations," he said.

Rather than sinking money into residential property, New Zealanders needed to save and invest in productive assets.

As for the troubled red meat sector, Mr Carden is hopeful of better times around the corner. The meat sector had "greater opportunities" than its dairy counterpart and could establish a sustainable, premium position on world markets.

"It's about delivering a consistent product throughout the year. [Currently] it's a production line rather than a value chain which reflects our pasture curve," he said.

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Essentially, it meant farmers committing 'to deliver product of specified quality at a specified time". Farmers had to get smarter with farm management and needed to build closer relationships with processors to keep production lines working effectively.

Processors also had to move away from the fickle nature of trading markets and focus on securing long-term, enduring relationships with customers who value a premium product.

Aside from a career in advising and improving businesses, Mr Carden has invested time in helping young, financially disadvantaged people reach their potential by assisting them through university with scholarships. First Foundation, a not-for-profit organisation, also helps students network with companies and get job experience.

Mr Carden has remarked in the past it was his "proudest accomplishment".

It's this apparent leadership and assertiveness that Landcorp and the wider primary sector will be looking to as industry changes inevitably take hold.

"We want to minimise our environmental impact and maximise the quality of the team at all levels and roles within Landcorp. We expect our investment in science and training will have a positive flow-on effect on the broader industry," he said.

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