Goldn Hills 28 th Sept Goldn Hills, Securing our Future ? Colin Brown Wrightson Solutions Dunedin

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Transcript of Goldn Hills 28 th Sept Goldn Hills, Securing our Future ? Colin Brown Wrightson Solutions Dunedin

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Goldn Hills 28 th Sept Goldn Hills, Securing our Future ? Colin Brown Wrightson Solutions Dunedin Slide 2 Goldn Hills 28 th Sept You are here Slide 3 Goldn Hills 28 th Sept Create Solutions in Agriculture Slide 4 Goldn Hills 28 th Sept Audience Type? A. Grew up in farming, love agriculture B. Agriculture/Horticulture is a major component of your teaching C. Chance to get away for a few days and get on the booze with a few old mates Slide 5 Goldn Hills 28 th Sept Topics Importance of Agriculture to NZ Some historical trends Issues facing farmers What Wrightson is doing Slide 6 Goldn Hills 28 th Sept Some historical analysis Slide 7 Goldn Hills 28 th Sept Slide 8 Slide 9 Slide 10 Slide 11 Importance of Agriculture Total area (including minor islands)26.8 million hectares Farming land16.5 million hectares - 13.3 million grasslands Farm numbers (1996)66,045 holdings Farm types (1996) 25% dairy 36% sheep & beef 5 % mixed livestock 17% horticulture 2% crops 15% other Slide 12 Goldn Hills 28 th Sept Agricultures Contribution 8% of the workforce 12% of GDP 53% of exports Slide 13 Goldn Hills 28 th Sept Slide 14 Slide 15 Slide 16 Some Economic & Production Trends Slide 17 Goldn Hills 28 th Sept Slide 18 Slide 19 Wheat - NZ Average $ 0 50 100 150 200 250 300 350 1970197519801985199019952000 NZ $ Nominal Real Slide 20 Goldn Hills 28 th Sept Wheat - NZ Average $ 0 50 100 150 200 250 300 350 1970197519801985199019952000 NZ $ Nominal Real Slide 21 Goldn Hills 28 th Sept Dairy - Herd Size & Production 0 20 40 60 80 100 120 140 160 180 200 191519251935194519551965197519851995 Herd Size Kg MF / Cow Slide 22 Goldn Hills 28 th Sept Slide 23 Slide 24 Slide 25 Slide 26 Slide 27 World Commodity Price Trends 1950 - 1995 Slide 28 Goldn Hills 28 th Sept Historical Analysis Profitability of farming has steadily declined for all of this century Disguised by inflation and commodity price cycles Slide 29 Goldn Hills 28 th Sept And it gets worse Slide 30 Goldn Hills 28 th Sept Slide 31 Slide 32 Slide 33 Slide 34 Slide 35 Slide 36 Slide 37 Slide 38 Slide 39 Slide 40 Slide 41 Slide 42 Slide 43 Messages/ Consequences Use technology to keep increasing scale Use technology to keep increasing output Find better paying markets Change to a higher value output Or - Find other sources of household income Or change careers Slide 44 Goldn Hills 28 th Sept Issues facing farmers Increasingly technical Slide 45 Goldn Hills 28 th Sept Go from this Slide 46 Goldn Hills 28 th Sept To this Slide 47 Goldn Hills 28 th Sept Slide 48 Slide 49 Issues facing farmers Increasingly technical Market & Regulatory demands Environment Slide 50 Goldn Hills 28 th Sept Slide 51 Slide 52 Issues facing farmers Increasingly technical Market & Regulatory demands Environment Traceability (food safety) Slide 53 Goldn Hills 28 th Sept Traceability Slide 54 Goldn Hills 28 th Sept Issues facing farmers Increasingly technical Market & Regulatory demands Environment Traceability (food safety) Technology advances Slide 55 Goldn Hills 28 th Sept Slide 56 Slide 57 Slide 58 Slide 59 Slide 60 Issues facing farmers Increasingly technical Market & Regulatory demands Environment Traceability (food safety) Technology advances Size & scale Slide 61 Goldn Hills 28 th Sept Critical Success Factors Have a competitive advantage that allows you to be in the top 20% in your target market- And capitalize on it. If you dont, life expectancy = < 15yrs Slide 62 Goldn Hills 28 th Sept What Wrightson is doing Spends $6 million on R&D each year Forage Genesis Research & Development Ltd Slide 63 Goldn Hills 28 th Sept Slide 64 What Wrightson is doing Spends $6 million on R&D each year Forage Genesis Industry Solutions ILM (Integrated Lamb Marketing) IFM (Integrated Fibre Marketing) Slide 65 Goldn Hills 28 th Sept What Wrightson is doing Spends $6 million on R&D each year Forage Genesis Industry Solutions ILM (Integrated Lamb Marketing) IFM (Integrated Fibre Marketing) On farm solutions IFS (Integrated farm solution) Elite Forage Slide 66 Goldn Hills 28 th Sept Slide 67 Slide 68 Slide 69 Slide 70 Slide 71 Slide 72 This year, totally paperless Slide 73 Goldn Hills 28 th Sept Solutions Example WCS Package (10 ha) Slide 74 Goldn Hills 28 th Sept Current Grower Cost - 10ha WCS Slide 75 Goldn Hills 28 th Sept Current Grower Cost - 10ha WCS -Seed Break down Slide 76 Goldn Hills 28 th Sept Current Grower Cost - 10ha WCS Slide 77 Goldn Hills 28 th Sept Current Grower Cost - 10ha WCS Slide 78 Goldn Hills 28 th Sept Current Grower Cost - 10ha WCS Slide 79 Goldn Hills 28 th Sept Summarized Grower Cost - 10ha WCS Slide 80 Goldn Hills 28 th Sept Solutions Example WCS Package (10 ha) Slide 81 Goldn Hills 28 th Sept Solutions Example WCS Package (10 ha) Slide 82 Goldn Hills 28 th Sept Solutions Example WCS Package (10 ha) Slide 83 Goldn Hills 28 th Sept Solutions Example WCS Package (10 ha) Slide 84 Goldn Hills 28 th Sept Slide 85 Solutions Example WCS Package (10 ha) Slide 86 Goldn Hills 28 th Sept Cost To client per kg DM Slide 87 Goldn Hills 28 th Sept Benefit To Client Slide 88 Goldn Hills 28 th Sept Benefit To Wrightson Profit from capturing IP and System Information in a Solution Package Slide 89 Goldn Hills 28 th Sept Slide 90 The Future? Technology will keep advancing Prices (in real terms) will keep dropping Increasing complexity & scale Increasing precision Divergence of systems to niches with best competitive advantage Vertically integrated systems, managed through supply contracts Slide 91 Goldn Hills 28 th Sept Our future is in your hands