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Excellence
Access to New Zealand agricultural knowledge

Aspects of the New Zealand approach to pastoralism, particularly with regard to dairy and beef cattle farming, have spread well beyond the shores of New Zealand.

New Zealand-trained agriculturalists, advisors, and consultants are now working in many other countries, representing a significant portion of the "Kiwi diaspora" of welleducated, skilled and talented people. New Zealand farmers are amongst the most efficient in the world. In 1986/87, the average full-time farm worker produced $40,000 worth of farm produce. In 1995/96 this had risen to $55,000 of produce per worker.

This represents an increase of over 34% in real terms in labour productivity in agriculture compared with a productivity gain of 14% in real terms for the total New Zealand economy over that period.

Many Northern Hemisphere farmers have employed Kiwi workers for short periods and in the United Kingdom, Ireland, the United States and South American countries, sections of their pastoral farming are employing New Zealand management practises and using specialised New Zealand agricultural technologies. Other temperate European countries are also switching on to New Zealand methods, especially in the former Soviet bloc, where large-scale collective farming is being re-privatised and some countries contemplate joining the European Union.

New Zealand agribusinesses which have developed products for pasture management, livestock farming, improved genetics and animal health, now earn more than $600 million annually from exports of goods and services. The larger companies have subsidiaries and agencies in Europe, the Americas and Asia.

Farmers wanting to learn more about the New Zealand approach, after reading this book, should contact the companies which have supported this publication with advertising, mostly linked through the New Zealand Agritech Inc. website representing exporters of agricultural products and services. New Zealand Agritech Inc co-ordinates their promotions at field days and trade shows worldwide for farmers and agricultural servicing companies, importers and agents.

The New Zealand Trade Development Board (Trade New Zealand) is the New Zealand Government’s official trade promotion agency. With nine offices around New Zealand and thirty seven offices around the world, Trade New Zealand works with both exporters and importers to foster international business deals and alliances. Trade New Zealand’s Trade Commissioners can assist international buyers, importers and distributors to identify and source New Zealand products and services.

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ADVISORY SERVICES

What do farmers in other countries want to know about New Zealand pastoralism? 

An experienced New Zealand dairy farm consultant recently worked in the UK and Ireland for six years, before returning to New Zealand and taking up farm management advice and supervision for an R&D organisation. At the beginning of his time in the UK, the advisor met many farmers operating very complex dairy farm businesses, with all year-round calving, feed intakes of 80% mixed rations and silage, cropping for supplementary feeds, large tractors and silage and crop machinery and several employees. While that might have been profitable when milk was bringing 25p/litre, the cost structure is not sustainable now that the milk price is down to 16p.

"Farmers with complex operations like that are working very long hours to achieve a financial loss," he comments. 

"However those who have changed to lower-cost, simpler systems are making profits, by reducing the number of enterprises, reducing labour and halving their feed concentrate and silage inputs. 

"A combination of block calving and grazing has resulted in dramatic cost reductions and improved lifestyle."

The advisor was employed by an extension programme called "Pasture to Profit" in western Britain, where the mild climate, similar to southern New Zealand, is well-suited to growing 10 to 14 tonnes of ryegrass pasture dry matter per hectare annually.

Such discussion groups are still new in Britain, but are very common in all pastoral farming in New Zealand. The programme introduced British farmers to the basic New Zealand approach to "systems" of dairy farming, which are founded on spring calving times, pasture feeding, lower labour units and rotary or herringbone dairy parlours.

It is the technological content of the New Zealand approach which the advisor says interests the UK farmers most. 

Older milking parlours associated with indoor stalls for housing dairy cattle and the need for intensive labour will be replaced with modern rotary or HB designs as the long-term profitability of dairy farming is re-established on the lower cost structure. 

Ironically, most of the milking parlour equipment itself was, and continues to be developed in Europe, but it is the New Zealand designs and structures which attract UK interest.

New farm layouts, with fencing and raceways which allow cows to walk to and from paddocks and parlours, are also in demand. Block grazing of pastures or fodder crops, with break feeding using temporary electric fences, is still quite new to Britain.

UK farmers often have negative concepts of New Zealand all-weather, break feeding, with impressions of skinny cows standing in muddy paddocks. But the realities hidden away behind cow barn doors and walls in the UK may be equally disturbing, and the disease risks for cattle are higher indoors.

"The sustainability of the New Zealand system must be emphasised along with the animal welfare aspects."

UK farmers may also need help with the management challenges of employing dairy farm labour for large herds, because family labour has been used for centuries.

"The first question for a UK farmer contemplating a switch is "how much money do you need to fund your preferred lifestyle?"

"When that is known, the profitability of the lower input system is more obvious and the New Zealand system becomes acceptable."

UK dairy farm systems, comparing silage all year round to block calving and grazing, have been monitored and the figures show "the New Zealand Way" increased profitability by 30,000 pounds a year. Those who have switched have been able to maintain profitability as milk prices have dropped 40% in four years.

After his time in the UK, the advisor has a renewed understanding of the underlying reasons why the New Zealand method of milk production is potentially so efficient, simple, profitable and enjoyable.

The need to share that information around the world rises as dairy industry subsidies are reformed and farmers seek more sustainable, profitable ways of doing business.

A New Zealand-based farm advisor with consultancy contracts overseas confirms that the economics of pasture-based dairying, whether it be in Chile, Brazil, USA or Australia, continue to be much more favourable than confinement systems. This efficiency can be measured in the cost per kg of dry matter (or energy unit), or indeed cost of producing each litre of milk or kg of milk solids.

"New Zealand has a great reputation for lower-cost dairying," he says. "Because we are exposed directly to world markets without the distortions of subsidies and because we produce milk on a seasonal basis for processing into predominantly commodity products, we have honed our management skills and developed innovative technology to achieve very efficient production systems."

"Farmers in many other countries can grow good grass, but because they lack the skills to use that resource to the maximum advantage they have less confidence to carry sufficient livestock to fully and properly utilize it.

"Block or controlled grazing is still quite new to many farmers overseas, and New Zealand has the technology to boost productivity."

"Essentially I am promoting New Zealand pastoral farming technology including genetics (animals that efficiently convert pasture in to milk or meat), pasture seeds, agricultural technology (like electric fencing systems), but more importantly the management systems and skills to achieve efficient utilisation of all of those resources," The consultant says: "It’s a package."

He consults on New Zealand pastoral technology and pasture utilisation in South American countries, the United States and Australia, adapting the programme according to the degree of dairying seasonality and the winter conditions.

"Most dairy farmers in the Americas have to produce milk all year round, as a condition of supplying the processing company, so they are committed to higher-cost inputs and possibly housing of the herd in the winter.

"However they may well be able to place greater reliance on pasture based feeds and feeding rather than buying in higher priced energy and protein feeds."

The consultancy and its associated specialist dairy development company have extensive experience in New Zealand and overseas in carrying out feasibility studies on farm development (sheep, beef, deer and dairying), implementing the development programmes and being responsible for achieving the returns predicted in the feasibility study.

They also provide advice and project management for dairy conversions including milking parlour design and construction, farm layout, fencing, pasture establishment, water reticulation systems and all aspects associated with establishing a pastoral dairy farm.

The consultant says that forward thinking farmers in other countries have a unique opportunity to use, in most cases, a completely different and more efficient management system to their current one. In so doing, they can shorten learning curve by utilising the experience of New Zealanders and their technology.

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AGRICULTURAL TOURS

Overseas farmers and agribusiness people can learn a great deal in a short time by visiting New Zealand and seeing for themselves how the elements of the New Zealand pastoral farming systems fit together.While on the ground, they can talk with New Zealanders and visualise the possibilities in their own farms and agricultural industries adapting parts of the New Zealand approach. Specialist agricultural tour companies in New Zealand arrange comprehensive farm and industry technical study tours for this purpose. 

The tours can encompass on-farm practices, primary product processing, farm servicing, and research and development, along with meeting those who develop and implement the legislation supporting New Zealand's quality assurance programmes, disease-free status and clean green environment.

Opportunities exist while on tour for overseas visitors to stay on working farms where their farmstay hosts can show them their farming operations.

Itineraries are designed specifically to suits the interest of the group. 

They include:

• Agriculture, horticulture, viticulture, forestry and fishing

• Agribusiness and government agencies

• Science, technology and education

• Natural resources and sustainable land management

New Zealand orchards and vineyards also rely on an extensive force of temporary workers for pruning and picking during the season, while shearing gangs may also offer positions to itinerant workers as wool handlers.

The expansion of the dairy industry in the South Island recently has created an unfilled demand for dairy workers and the New Zealand Immigration Service has expanded the number of temporary work permits issued to foreigners.

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EDUCATION

New Zealand universities, technical institutes and private training establishments provide agricultural and horticultural courses, most with on-site farms and orchards.

They have co-operating farms on which to place students for short training periods. 

The various universities all have their specialities in different areas of science and technology. Some of these areas include agriculture and horticulture; biological, physical, earth, marine and environmental sciences; forestry; engineering; medicine and pharmacy; mathematics, statistics and computer science. Massey and Lincoln Universities are internationally known for their agriculture and horticulture qualifications. Massey University is responsible for training New Zealand and overseas veterinarians. Twenty-five polytechnics and several private training establishments complement the education and training of the universities.

The educational establishments cater for foreign fee-paying students, many of whom are now working back in their home countries using the farming skills learned in New Zealand.

Lincoln also offers foundation studies in English, computing, mathematics, economics and statistics to prepare international students for New Zealand university courses.

Rural high schools and colleges also teach courses on agriculture and horticulture, and many now enrol small numbers of fee-paying students of school age.

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RESEARCH ORGANISATIONS

New Zealand benefits from an educated farming population, and an extensive network of research and development organisations, and knowledge based services.

The Crown Research Institutes (CRIs), universities and research associations carry out the majority of the government-funded research and development.

The CRIs who have input into agricultural research are:

• AgResearch Limited

• The Horticultural Research Institute of New Zealand Limited (HortResearch);

• New Zealand Institute for Crop and Food Research Limited (Crop and Food);

• New Zealand Forest Research Institute Limited (FRI);

• Manaaki Whenua Landcare Research Limited (LandCare);

• Institute of Geological and Nuclear Sciences Limited (IGNIS);

• Industrial Research Limited (IRL);

• The National Institute of Water and Atmospheric Research Limited (NIWA);

• Institute of Environmental Science and Research Limited (ESR).

Research associations are industry-owned institutions. They provide capabilities in

research and technology transfer which individual companies in the sector may not be able to justify. A key objective of those research associations involved with the primary

export industries is to improve the marketability and added value of products from New Zealand’s farms and forests.

The agricultural research associations are:

• New Zealand Fertiliser Manufacturers Research Association;

• Wool Research Organisation of New Zealand;

• Fonterra Research Centre (dairy);

• New Zealand Leather and Shoe Research Association;

• New Zealand Logging Industry Research Association;

• Meat Industry Research Institute of New Zealand (now owned by AgResearch).

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