Acknowledge Evaluate Accelerate
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Agri- business Agenda 2019 Acknowledge Evaluate Accelerate June 2019 Introducing the 2019 KPMG Agribusiness Agenda This year’s KPMG Agribusiness Agenda marks an important milestone. It is the 10th year we have published the Agenda (and the 16th report we have released). To celebrate this landmark, this year’s report is a little different. Acknowledge Evaluate Accelerate Page 7 Page 33 Page 55 As we approach the end of the While the sector has set a More analysis is becoming decade, we reflect on how the course to a more ambitious available to suggest that agri-food sector has evolved future, we recognise that in change today is faster and and acknowledge the progress a global environment where more profound than at any made. Through highlights from rapid and disruptive change has previous point in history. The each of the previous reports, become the norm, there remains challenge is that change is only we celebrate the progress made much to do. We have again taken going to get faster. The agri- in transitioning from volume to the pulse of the industry through food sector has been slow to value, in recognising the license our annual Priorities Survey, embrace digital disruption, but to operate is a privilege, and in coupled with conversations with the fusion of technologies of establishing greater trust across industry leaders, to understand the fourth industrial revolution the industry. We revisit some the current state of the nation. has enabled the first Global of the case studies we have The overriding theme from our Agrarian Revolution. Against this featured over the last 10 years, conversations is that attitudes background, the sector has no to update on the progress these and expectations on the industry choice but to lean into disruption organisations have made in are lifting continually; whether and work out how it is going to creating a prosperous future that relates to how land is used, play the infinite game. A game for themselves, and all greenhouse gases mitigated, where there are no finish-line New Zealanders. customers engaged or debt winners; only those that keep facilities gained, the message playing and those that was clear: what was acceptable drop away. even last year will not be enough to maintain relevance in the future. KPMG Agri-Food: Ten years of helping fuel New Zealand’s prosperity KPMG New Zealand has always In April 2010, we released the first We have supported the Te Hono worked alongside many of New Agribusiness Agenda. The response Movement since its inception. Part of Zealand’s leading primary sector was immediate and confirmed to us this relationship included arranging for businesses, given the critical role they that there was demand for independent KPMG’s global leader on climate change play in our economy. We, like many thought leadership that looks beyond to attend the first Stanford bootcamp other businesses, assessed all aspects movements in commodity prices in 2012, and we have supported each of our operations in the midst of the towards global trends and opportunities bootcamp since. Global Financial Crisis, and recognised for food and fibre producers. We have been a partner in the project to that there were some systematically We recognised that for our thought create an Agri-Food Experience Centre at important sectors of our economy leadership to be valuable it had to be the ASB Farm at Mount Albert Grammar that would be key to recovery and easily accessible to everybody. We have School in Auckland since it was initiated. long term growth. always made the Agenda available for Our ambition is to provide an experience free on our website, and spent time of the sector to 25,000 Auckland Of these sectors agribusiness stood out. traveling the country to explain our students a year. It was a sector inherently connected work to various audiences, be they to our land and water, central to our It has become apparent that innovation school groups, industry or company ability to earn export revenues, linked and technology will play a significant conferences, producer days or board to growing global demand for food role in the industry’s future, and we meetings, to help people to recognise and fibre products and one where key have developed relationships with industry trends and how they can decisions makers were largely based organisations that are supporting our respond. We have travelled from the Far here, and not in Sydney, Melbourne, innovation ecosystem. Our partnerships North to Invercargill talking to thousands Hong Kong or London. It was also with SPROUT and Agritech New Zealand of people over the last decade. a sector we identified as ignored by enable us to explore ways to bring our analysts, because it was largely owned We recognised the important role that knowledge to organisations, developing through co-operatives and trusts rather Fieldays plays in connecting people in technology that will enhance than listed entities. the primary sector and we worked with industry success. them to create the KPMG Agribusiness As we started to talking to industry As part of highlighting the impact Leaders Breakfast in association with leaders to enhance our understanding of that change is having on the global Fieldays, held on the first morning of the key issues facing the sector it became food system, we were delighted to National Fieldays. This event has become apparent that organisations were facing partner with Plant and Food Research, an important part of the Fieldays similar issues and challenges. These AGMARDT, Food Valley and Waginengen experience and we have been proud were areas where we could draw on UR to enable a group of sector leaders to be a sponsor of Fieldays since 2011. KPMG’s global knowledge base to bring to tour the Netherlands in February 2019 relevant insight. Following the success of our annual and be exposed to the speed and extent breakfast at Fieldays, we have been of change shaping the industry in As a consequence we invested in delighted to partner with the Canterbury that country. providing knowledge and thought A&P Show to create a similar annual leadership to the agri-food sector to Ultimately our purpose is to fuel New breakfast event with a strong South assist it in realising its full potential, Zealand’s prosperity for the benefit of Island focus. for the benefit of all New Zealanders. all New Zealanders. Given the significant As part of our strategy to share insights impact the primary sector has on our First off the rank was making our and support the development of people economy and its potential to capture weekly internal news summary, Field across the primary sector, we have more value from rapidly changing Notes, available to clients and contacts. developed relationships with the Rural global markets, we are committed to This newsletter is now sent to more Leadership Trust (which runs the Kellogg continuing to play our part in enabling than 5,000 contacts each week and is and Nuffield programmes) and the Agri the industry to understand and respond supported by its own web portal (that Women’s Development Trust. to the opportunities in front of it. is soon to be upgraded) and an app that is available on the Apple AppStore and Google Play. ‘10 ‘ 11 ‘12 AGRIBUSINESS KPMG Agribusiness Agenda AGRIBUSINESS The big opportunities and challenges facing New Zealand agriculture Reflections on the views of industry leaders KPMG Agribusiness Agenda 2012 People unlocking the future kpmg.com/nz/aa2012 ‘13 ‘13 ‘13 CANTERBURY A&P SHOW ‘13 ‘14 KPMG AGRIBUSINESS AGENDA 2014 Vol.2 A ‘14 Agribusiness Agribusiness Agenda 2014 Agenda 2014 VOLUME 1 VOLUME 2 Facilitating growth in an uncertain world Exploring our global future Leading New Zealand’s Leading New Zealand’s primary industry into primary industry into a prosperous future. a prosperous future. kpmg.com/nz kpmg.com/nz ‘15 ‘15 ‘16 Volume 2 Emerging Leaders Edition: The future is in their hands Agribusiness Agenda 2016 Volume 1: Thriving in exhilarating times KPMG New Zealand kpmg.com/nz ‘16 ‘17 ‘18 Agribusiness Agribusiness Agenda Agenda 2018 2017 We need to tell you our stories Layering our products with verifiable attributes The recipe for action June 2018 KPMG New Zealand kpmg.com/nz kpmg.com/nz Agribusiness Agenda 2019 6 Ministerial foreword Hon. Damien O'Connor Minister of Agriculture, Biosecurity, Food Safety and Rural Communities. Damien is also Minister of State for Trade and Export Growth, New Zealand. The food and fibre sector is For this reason I remain committed Each sector has its own challenges in a very strong economic to the ‘Ko Tātou This Is Us’ campaign and opportunities. What we need position. Forecasted growth which is working to engage New is a shared vision and I set up the Zealanders in the biosecurity system. Primary Sector Council in 2018 to for the sector is 7 percent for We need all New Zealanders playing do just that. It is not an easy task to 2019, stemming from continued their part to keep unwanted pests and bring together traditionally fragmented innovations, developments and diseases out of New Zealand. industries to support common outcomes and objectives. The Council exporting of high-value products Part of the campaign is the recently is engaging industry on its draft vision to our overseas markets. released in-flight biosecurity video, and I anticipate a final version being which reminds all visitors to the presented later this year. KPMG’s Agribusiness Agenda country, and Kiwis returning home, acknowledges progress achieved over about the importance of protecting The KPMG Agribusiness Agenda is a the last 10 years. This shows huge Aotearoa New Zealand from unwanted valuable contribution to the industry’s increases in tradeable export dollars pests and diseases.