Agricultural production is one of the major industries in New Zealand, accounting for 50% of all merchandise exports.
New Zealand is a water rich country with a remarkable diversity of climate and enterprise within a relatively small area. This makes it ideally suited to the creation of well balanced diversified farmland portfolios.
It has been described by the Wall Street Journal as the Saudi Arabia of milk and is responsible for 33% of global cross border traded dairy products. NZ is also the world’s largest exporter of lamb and venison and is a major exporter of horticultural fruit and vegetable crops such as kiwifruit and apples. Historically, the predominant protein production systems (dairy, lamb, beef, deer etc.) have been pastoral, i.e. grass based and not cereal based feeding. This made NZ farming systems less susceptible to rising cereal prices (input cost).
Increased intensification in NZ pastoral production, most notably in the dairy sector has however eroded this natural competitive advantage. Conversion to organic status, which materially reduces exposure to fertiliser (a fossil fuel by-product), brought in feed and biocides, best aligns the management system with optimal use of the natural advantages of New Zealand agriculture.
As a farmland investment destination New Zealand offers established and robust infrastructure, a transparent/secure land law system, and a stable democratic political environment.
From a farmland investment perspective New Zealand represents the highest levels of excellence.
The Fallacy of Food Miles
The concept of ‘food miles’ is still gaining headlines, despite having been widely shown to be critically flawed. A-E analyses the weaknesses in the concept.