New Zealand has the potential to capture $1.3 trillion more
in agricultural exports between now and 2050 if targeted
actions are taken, a report by ANZ says.
ANZ managing director commercial and agri Graham Turley said
the report revealed the extent of opportunities for producers
and exporters as rising incomes and population growth drive
demand for soft commodities.
With abundant land, water and skills, and geographical
proximity to the growth markets of Asia, New Zealand's
agricultural sector was "ideally positioned" to meet that
However, significant barriers would have to be overcome "at
every step of the supply chain".
These included sourcing capital to fund growth, attracting
skilled labour and enhancing agriculture education. Focus
must also be on national agricultural research and
development, closing performance gaps and improving
productivity of farms, improving supply chains and targeting
Between now and 2050, about $340 billion in additional
capital would be needed to drive production growth and
support farm turnover in New Zealand, the report said.
"Our agricultural sectors need more investment to drive
production growth and to support farm turnover," Mr Turley
"The danger we face is that we are now alone in seeking to
exploit the global soft commodity boom, and countries like
Brazil, with its highly successful soy industry, are leading
"If we are serious about wanting to develop vibrant, globally
dominant and highly profitable agricultural industries, we
will need all stakeholders in the industry to work together
to bring about change," he said.
The report found rising incomes and changing diets in
developing countries meant the world would demand at least
60% more agricultural output by 2050, compared with 2005-07.