Agri-leaders lovin’ that disruption
It's probably the best opportunity New Zealand has had for decades, if not a century. John Brakenridge
Agricultural leaders are shivering in excitement rather than shuddering at the thought of even more technological and market change ahead.
Leaders of companies with a combined 80 per cent stake in New Zealand’s primary exports met in Christchurch last week for the Te Hono Summit, which has emerged from boot camps previously at Stanford University.
The brainchild of New Zealand Merino Company (NZM) chief executive John Brakenridge, previous summits have resulted in new companies and a joint-venture market hub in Shanghai.
Brakenridge said primary industry people would have to embrace the pace of market disruption and technological change accelerating.
Too much value was being ‘‘left on the table’’ when agricultural exports headed for offshore markets and many opportunities were being lost from market disruption, he said.
‘‘We believe New Zealand has a huge unheralded economical, social and environmental advantage because if we have a look at how much change and disruption is out there it’s probably the best opportunity New Zealand has had for decades, if not a century. We are exporting $30 billion of [agri-food] exports, but by the time they reach consumers they are finishing up at $250b.’’
Brakenridge said the 25-30 leaders had got together at the summit to work out the best product, market and brand opportunities to close the gap.
He said more consumer insight work was needed to identify market openings and brands.
A good example was Icebreaker and the market it developed in outdoor merino wear, and other examples were Zespri’s kiwifruit branding.
Brakenridge said the crossbred wool industry was an example of an industry which had not adapted quickly enough to the arrival of synthetic carpets and lost market share while continuing to play the ‘‘volume game’’ with traditional products.
Brakenridge said New Zealand businesses also had to pick up the challenges they faced with the environment and animal welfare.