MEDIA RELEASE

19 June 2009

Investment in innovation underpins confident sector

Agricultural technology industry needs to work together to change the way the world farms

The New Zealand Agritech industry has the ability, innovation and skills to “create and own the pathway to change” in global pastoral farming – to change the way the world farms – by driving the benefits of New Zealand's pasture based farming systems in world markets.

Chairman of New Zealand Agritech Inc., Jim Grennell, told more than 180 guests at the organisation's annual Fieldays dinner and awards in Hamilton recently that the industry needs to make more of our world class reputation for innovation and pasture based farming.

New Zealand needs to be exporting technology. This country's world class reputation overseas, the high level of innovative – emerging and existing – technologies that establish New Zealand's international leadership in farm management and nutrition of animals under pasture, make the agricultural technology sector a priority for boosting the nation's international trade prospects.

“Pasture based farming systems are more cost effective, profitable, sustainable, humane and results in healthier milk and meat products than some of the other systems, such as confinement based production systems.

“The knowledge, skills and practices we use; how we put it together on the farm, is the key and this cannot be easily replicated by others. It is our real point of difference for effecting change.”

He said New Zealand Agritech Inc. is the national representative body of the agricultural technology sector and as such is well positioned to assist the industry in the commercial development of existing and emerging products and technologies.

“To this end we are focusing on three areas.

“Firstly, a concentrated focus on selected markets where the best opportunities exist. Initiatives are underway for the USA and parts of South America – but other markets are emerging and our members are well positioned to take advantage of these.

“Secondly, we intend to ‘create and own the pathway to change' in driving the benefits of New Zealand 's pasture based farming systems in these selected markets.

“Thirdly, collaboration is absolutely essential. We are competitive by nature, but in the context of global markets we need to work more collaboratively where the opportunities dictate this is the best formula for success.”

He said that without collaboration many agritech companies competing in the same markets, or without sufficient scale to compete, will not achieve the best outcome and most likely will not succeed for either the participant companies in the supply chain or the end user customer.

“We need to find a strategy where collaboration becomes the norm rather than the exception, and we must jointly promote and drive the New Zealand brand. This is already happening in other sectors and I personally have experience of it within the agritech sector – New Zealand Agritech Inc. is committed to driving this initiative.

“The idea of collaboration is sometimes hard for individuals to consider, but if we look at it from a development perspective, or creating a bigger opportunity, it is often in my experience more exciting and rewarding.”

Mr Grennell said that developing and adapting more efficient pasture based systems using New Zealand technologies in markets like the USA could help to eliminate the need for dairy export subsidies there. This will lead to a more productive and profitable dairy sector and expanded opportunities for New Zealand .

“Any opportunity to assist other countries to achieve more efficiency in farm production and reduce or negate the need for subsidies will be good for New Zealand agritech companies and our producers who then have the ability to compete on the same terms” he said.

 

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About New Zealand Agritech Inc.

NZ Agritech Inc is a New Zealand group of diverse agricultural technology companies including suppliers of dairy and milking equipment, livestock feed for raising cattle and sheep, to animal health remedies, farm machinery, pasture grass intake and performance data, and a lot more; all of whom distribute around the world.

New Zealand Agritech Inc is the national industry and export development body for companies which supply technology to the farm. The industry accounts for more than $700 million in exports a year, and domestic sales of three billion. A solid earner, the industry is growing at between 9% and 12% per year.

For more information see: www.agritech.org.nz