MANAGEMENT 76th NZGA conference attracts 400 people. PAGES 28-32
MACHINERY Salute to NZ’s wartime history. PAGE 38
RURALNEWS
NEWS Innovate or die – kiwifruit boss
PAGE 12
TO ALL FARMERS, FOR ALL FARMERS
NOVEMBER 18, 2014: ISSUE 573
www.ruralnews.co.nz
Cut fees for Ag degrees P E T E R BU R K E peterb@ruralnews.co.nz
GETTING YOUNG people into agribusiness is critical for New Zealand’s future, says ANZ chief economist Cameron Bagrie. He told the recent Zespri conference that he is concerned to see the right people enter the agri sector in the numbers required. For example, the kiwifruit industry will soon be producing 30 million more trays of product and will need more people to cope with that trend. Bagrie is convinced that most young people do not understand the long term future they could enjoy in some primary industries. “People study commerce and law because the perception is they are going to make an awful lot of money. [But] I
am pretty sure an agri manager has a higher starting salary than a lawyer or an accountant. Who would have thought that possible five or ten years ago? The relative price signals are starting to shift.” New websites enable young people to see the opportunities in the various sectors and income prospects over time. He proposes drastic moves on university fees to encourage agri studies
and discourage arts. “If you want to get more people into agriculture there is a big lever you can pull in regard to fees. If you want fewer arts students ram the price of these degrees up and put the price of an agri degree down. Students respond to those sorts of dynamics.” Bagrie also has a strong message for teachers: education is the only sector where, regardless of skills, people get the same pay. “Can you imagine a bunch of law-
yers on strike, marching down the main street in Tauranga holding up signs saying ‘because we are worth it’?” he asks. “I’m a big believer in economics 101: if you get the right economic incentives in front of people you will drive the right sort of behaviours. So if there is a quality mis-match between one teacher and another there should be a pay mismatch between one and the other.” • Huge career opportunites - page 5
HAIL MARY! Although in some cases a long way from their orchards, delegates to the recent Zespri conference in Tauranga had a sharp reminder of the risks the weather poses to their industry. Just as they were leaving the conference, late on the first day, the heavens opened up and down came hail in big chunks. Terry Newlands, who runs a kiwifruit orchard at Waihi Beach, Bay of Plenty, was one of many who got nervous when the hail fell. He and many other growers were hoping their orchards wouldn’t be hit like others around the country. More on hail damage on page 10.
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Organic flight? ORGANIC DAIRY farmers say they are disillusioned with rules put in place by Fonterra and are quitting supply to the co-op. Rural News understands the number of certified organic farmers has fallen from 127 in 2011 to 50-70 this year. Sources say there is little likelihood new certified organic suppliers will sign with Fonterra. The number of Biogro certified farmers has fallen from 40-45 in 2009 to 31 in 2014. Many of these disillusioned farmers are in Northland and Taranaki, where the co-op no longer collects organic milk to cut costs. One formerly certified farmer dropped the certification when rules forbade the use of Tanalised fence posts; replacements had to be hardwood or concrete. “If I had known this I wouldn’t have got certified,” he told Rural News. “They seemed to be making it up as they went along.” Fonterra general manager for milk supply technical and assurance Dianne Schumacher refused to confirm the co-op’s number of organic suppliers but told Rural News that the organics business was a niche part of the cooperative. “Fonterra is always looking at ways to better use our collective knowledge and skills to improve our organic milk supply programme. – Full story page 18