Rural delivery: Knowledge resides down on the farm

By KAREN SILK Westpac head of agribusiness

The debate on how to expand New Zealand's knowledge economy has highlighted the potential of sectors such as design, biotechnology and information and communications technology (ICT).

But there has been little mention of the role of agriculture, the backbone of the economy.

For example, the dairy industry is our top export earner, accounting for nearly one-quarter of exports by value. New Zealand earned $7 billion from dairy exports last year, despite international trade barriers.

As our biggest merchandise exporter and a major foreign-currency earner, it is clear the 189-year-old dairy industry has a vital role in New Zealand's future. Last year the national dairy herd increased by 6 per cent to nearly outnumber the human population.

Today the average farm is nearly 100ha, compared with 83ha 15 years ago, and has around 270 cows. In 1988, New Zealand had 3.2 million cows, with an average herd of 223 cows.

Optimism about dairying's future is widely shared, not just by sheep and beef farmers converting to dairy, but also by the influx of young, talented people to the industry.

The dynamism of dairying has been accompanied by a willingness from farmers to try new things, as well as to take on board the accumulated wisdom of decades of dairy farmers gone before.

Smart farmers are increasingly looking over the fence to compare their performance with their neighbours, as well as share ideas for improvements and innovations.

Over the past century we've seen production per cow increase, through both genetic gain and improvements in farm management. Improved grasses, animal remedies, fertilisers and Machinery have more than doubled milk-solid production since 1920.

In the 21st century, farmers are using biotechnology, improved equipment and ICT to improve production and gain added value from milk's many components. Such efforts range from the use of global positioning systems to collect milk and the design of better equipment, to the manufacture of functional foods from milk proteins and alcopop drinks from lactose.

Although it may be the end of the season before farmers have time to review their herds' performance, opportunities exist for dairy farmers to judge themselves against neighbours as well as the best farms in other regions.

The Fonterra Westpac Dairy Excellence Awards provide a chance for dairy farmers to be proud of their achievements. With regional and national finals, the awards not only select the best dairy farmers but provide a forum for them to exchange information on best practice.

For some farmers the milk-solids' total for the season, and therefore their payout, is the bottom line. But the awards take into account several factors in deciding the cream of the crop, including business growth, human resources, productivity, quality management and environmental integrity.

The winners raise the bar for the industry and set the future standard.

The Fonterra Westpac Dairy Excellence Awards have been run in seven regions, with the winner of each region progressing to the national final on June 27.

The awards also show city people that farming is a complex business, involving not just cowpower and manpower but brainpower.

The dairy industry is a multinational, multibillion-dollar business involving tens of thousands of New Zealanders. Improvements in dairy farming will flow to local communities and boost regional growth, which in turn creates a strong national economy.

With more than 60 per cent of New Zealand's merchandise exports being agricultural or forest products, smart agribusiness is, and will continue to be, the driver of our nation's wealth. And dairying will be the flagship among New Zealand's agricultural endeavours.