The document discusses agribusiness in New Zealand and Australia. It notes that the two countries have very different climates and geology due to their locations, which has shaped their respective agribusiness industries and competitive advantages. New Zealand has a temperate climate suitable for pastoral agriculture while Australia has a mostly continental climate with low and variable rainfall, necessitating more irrigation. Dairy, beef, and sheep are important industries for both nations.
VVIP Pune Call Girls Narayangaon WhatSapp Number 8005736733 With Elite Staff ...
Agribusiness in australia and new zealand
1. Agribusiness
In
New
Zealand
and
Australia
Nic
Lees
Website:Nicleesagrifood.com
2. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
South
Island
Christchurch
Canterbury
Plains
3. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Oceania
4. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Main
Exports
Dairy
Products,
25%
Meat
,
11%
Logs,
wood,
7%
Crude
oil
,
4%
Mechanical
machinery
,
4%
Fruit
,
3%
Fish,
3%
Wine
,
3%
NZ
Main
Commodity
Exports
Iron
ore,
29%
Mineral
fuels
(coal),
28%
Gold,
7%
Cereals,
3%
Meat
,
3%
Machinery,
2%
Inorganic
chemicals,
2%
Aluminium,
2%
Australia
Main
Commodity
Exports
5. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Beef
Exports
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
20.00%
India
Australia
Brazil
United
States
New
Zealand
Canada
EU-‐27
Uruguay
ArgenNna
Mexico
Beef
Exports
%
Of
World
6. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Dairy
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
World
Dairy
ProducTon
%
(FAO
2009)
0%
5%
10%
15%
20%
25%
30%
35%
40%
New
Zealand
European
Union
Australia
United
States
ArgenNna
World
Dairy
Exports
%
2009
7. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Wheat
8. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
World
Sheep
Production
0
20
40
60
80
100
120
140
160
China European
Union Australia Former
Soviet
Union
Iran New
Zealand
Sheep
(Million
Head)
0%
10%
20%
30%
40%
50%
New
Zealand
Australia
United
Kingdom
Ireland
Spain
Belgium
Exports
of
Lamb
and
Sheepmeat
%
FAO
2010
9. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Tropic
of
Capricorn
23°
ArcTc
Circle
66°
Temperate
Zone
Tropical
Zone
10. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Climate
Zones
Humid subtropical climate
Desert climate
Semi-arid climate
Humid continental climate
11. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Temperate
Climates
-‐
Where
Else?
12. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Australian
Geology
13. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Tectonic
Plates
14. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Geology
of
New
Zealand
15. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Summary
• New
Zealand
and
Australia
are
very
different
in
climate
and
geology
• This
has
shaped
their
agribusiness
industries
and
their
relaNve
compeNNve
advantages.
16. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Australian
Agribusiness
Resources
and
CompeNNve
advantage
• Climate
• Soils
• Rivers
• Land
Uses
• Industries
17. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Droughts,
flooding
rains,
and
the
lucky
country
18. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Some
challenges
There
are
big
quesNons
relaNng
to
sustainability
of
the
Australian
lifestyle:
1.
Water
resources
2.
Dryland
salinity
3.
DepleNng
natural
resources
(but
mineral
reserves
are
considerable)
4.
Extreme
climate
with
extreme
variability
5.
Farm
structural
problems
19. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Size
20. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Canbe
Sydn
21. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Agricultural
Zones
Three
zones
–
pastoral,
wheat-‐sheep
and
high
rainfall.
2.
Wheat–sheep
zone
-‐
cropping
(principally
winter
crops),
and
the
grazing
of
sheep
(for
wool,
lamb
and
mu]on)
and
beef
ca]le.
22. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Climate
• Australia
–
mostly
conNnental
climate:
hot
dry
summers.
Poor
growth
of
C3
(ryegrass,
tall
fescue)
grasses.
(grow
poorer
ME
C4
[Kikuyu,
Cynadon]
grasses).
Heat
stress
can
limit
animal
performance
(especially
dairy)
• NZ
–
temperate
mariNme
climate:
mild
summers
and
winter.
Grow
quality
C3
grasses
23. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Agricultural
ProducNvity
NZ
ProducTvity
24. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Water
Resources-‐
Rain
IrrigaTon
Australia
• Australia
has
mostly
low
rainfall
and
is
extremely
variable
rainfall.
This
results
unreliable
pasture
feed
supply
and
need
for
irrigaNon
• Limited
irrigaNon
–
reliant
on
Murray
Darling
Basin.
Low
rainfall
has
reduced
river
flows
and
irrigaNon
allocaNon.
NZ
• NZ
has
moderate
high
rainfall
and
good
reliability.
Enable
reliable
pasture
based
agriculture
• Good
sources
of
irrigaNon
water
from
rivers,
lakes,
groundwater
and
reservoirs
25. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Water
Resources
• Water
–
criNcally
important
for
rice,
cogon,
grapes
fruit
and
vegetables,
sugar
and
dairy.
• The
gross
value
of
irrigated
agricultural
producNon
(23%)
on
less
than
1%
of
agricultural
land.
• 1/3
Australian
rivers
are
degraded
by
extracNon
and
nutrient
run-‐off.
26. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
IrrigaNon
27. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Water
Murray
Darling
Basin
28. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
IrrigaNon
2510
2520
2530
2540
2550
2560
2570
2580
2590
2600
2610
2006 2009
('000ha)
Australian Area irrigated ('000 ha)
29. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
30. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Murray
–
Darling
Basin
2008
31. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Murray
–
Darling
Basin
2008
32. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Murray
–
Darling
Basin
2011
33. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Land
of
Drought
and
Floods
34. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Seasonal
Rains
• Australia's
seasonal
pagern
of
rainfall
has
a
'flip-‐flop'
character
• It
is
wet
in
the
tropics
and
dry
in
the
south
during
the
southern
summer,
and
the
reverse
occurs
in
the
southern
winter.
35. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Rainfall
&
Climate
Variability
• High
Climate
Variability
Spring
Summer
36. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Australian
Soil
Resources
• Australia
–
old
soils
generally
poor
quality
,
low
organic
mager,
low
ferNlity,
poor
structure
&
water
holding
capacity
• NZ
–
recent
soils,
moderate
ferNlity,
high
organic
mager,
good
structure
and
water
holding
capacity.
37. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Australian
Soils
• Many
soils
affected
by
salt
(sodium),
either
now
or
in
earlier
geological
Nmes
• Sparse
sheep
and
beef
cagle
grazing
in
arid
regions
38. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Soils
Cracking
clays
that
are
relaNvely
ferNle
but
exhibit
physical
limitaNons
39. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Soils
–
South
Australia
• Soils
formed
in
aeolian
(wind)
sands
40. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Desert
Soils
• The
remaining
ancient
land
surfaces
(parNcularly
in
northern
Australia)
have
very
deep
and
strongly
weathered
soils
with
very
low
levels
of
nutrients
41. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Industry
groupings
• Australian
agribusiness
industries
can
be
grouped
into
two
main
categories.
• First
there
are
the
major
climate-‐driven
commodity
based
industries,
such
as
wheat,
beef
and
wool.
• Then
there
is
another
set
of
industries,
such
as
dairy,
sugar,
cogon
and
rice,
that
sNll
have
a
commodity
focus
but
are
somewhat
less
climate
driven.
• These
industries
rely
on
irrigaNon.
They
are
limited
in
scale
by
these
water
requirements.
42. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Wheat
• Commodity
based:
non
processed,
non
specialist,
non
branded
product,
sold
on
price
and
grade
• Typically
low
producNon
per
ha
(1-‐2
tonnes
(14
bu/acre)
depending
on
season)
• Very
high
producNon
per
labour
unit
• Capital
intensive
(big
machines)
43. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Wheat
• Large
producNon
volaNlity
(range
from
10-‐26
million
tonnes
in
recent
years).
• Huge
income
variability.
Hence
difficult
to
service
debt.
• Typically
10%
of
internaNonally
traded
wheat.
• Large
increases
in
both
producNon
and
producNvity
(efficiency).
• Given
the
climaNc
drivers,
this
industry
is
likely
to
always
be
commodity
based.
44. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Wheat
45. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Wheat
46. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Beef
Meat
–
beef
• 64%
exported
• 25
million
cagle
(NZ
4
Million)
• 19%
of
world
trade
• Australia’s
principal
export
markets
for
beef
are:
– Japan
– United
States
– Korea
47. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Beef
• Widespread
over
Australia,
based
on
mainly
naNve
pastures.
Northern
Region
72%
of
beef
• Australian
beef
cagle
industry
occupies
an
area
in
excess
of
200
million
hectares
(500
million
acres)
48. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Beef
• Makes
up
19%
of
world
trade
in
beef,
mostly
finished
on
feedlots
using
cheap
grain.
• NZ
makes
up
7%
world
trade,
grass
fed.
• Japan
largest
Australian
market
• NZ
–
Industry
based
on
dairy
beef
with
majority
exported
to
USA
as
manufacturing
beef.
Blended
with
USA
beef
to
reduce
fat
in
hamburger
meat.
• Many
of
the
beef
cagle
from
northern
Australia
are
shipped
live
to
southern
Asian
countries,
such
as
Indonesia
and
Philippines,
for
finishing
using
by-‐products
from
palm
oil
and
rice
industries.
49. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Beef
–
ProducNon
&
ConsumpNon
• USA
exports
about
10%
of
producNon
50. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Feedlots
• Increasing
amount
of
feedlot
producNon
(Japan
removed
quotas
in
early
1990’s).
• 60
%
of
feedlot
producNon
to
Japan
• 24%
DomesNc
51. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Dairy
• 2
million
Dairy
cows
• Produces
2%
of
global
producNon;
third
behind
EU
and
NZ
for
world
dairy
trade.
• 57%
Exported
• NZ
Ownership
52. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Ownership
Fonterra processes 21 per cent of all Australian milk
53. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Lamb/Sheep
54. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Lamb/Sheep
• 45%
of
Australian
lamb
exported,
mostly
from
high
rainfall
zone
• 91%
of
NZ
lamb
is
exported,
more
reliant
on
world
prices
• Most
Australian
sheep
fine
wool
Merino
(19
–
24
micron).
Produce
50%
of
world
fine
wool
trade
• Most
NZ
sheep
cross
bred
duel
purpose.
NZ
produces
more
coarse
wool
• Sheep
number
declining
due
to
poor
wool
prices.
• Sheep
number
declining
due
to
poor
wool
prices
and
compeNNon
from
dairy
• Main
markets
for
lamb
USA,
PNG,
Japan.
Has
small
EU
quota
for
lamb
(20,000
t)
• Main
markets
for
lamb
-‐
EU,
large
favorable
quota
(230,000
t)
55. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Sectors
–
Sheep
Meat
Meat
–
sheep
• Affected
by
wool
industry
–
wool
used
to
be
driver,
now
other
way
around.
• 53%
exported,
Good
producNvity
gains
56. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Animal
Welfare
–
Live
Sheep
Exports
• Every
year
millions
of
Australian
animals
are
exported
live
for
slaughter.
Ca]le,
sheep
and
goats
are
sent
all
through
the
Middle
East
and
South
East
Asia
—
to
countries
where
animal
welfare
laws
do
not
protect
them.
• The
RSPCA
has
campaigned
against
this
trade,
arguing
the
animals
suffer
too
much
on
the
long
journey
and
at
the
Nme
of
slaughter
57. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
• Tens
of
thousands
of
animals
don't
survive
the
sea
journey
and
those
that
do,
disembark
into
countries
where
they
are
transported,
handled
and
then
slaughtered
in
appalling
ways.
Most
animals
slaughtered
overseas
have
their
throats
cut
while
they
are
fully
conscious,
leading
to
an
incredibly
painful
and
prolonged
death.
http://www.banliveexport.com/1/#stories
58. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Sectors
-‐
Wool
• 36%
of
the
flock
is
in
New
South
Wales.
• Produces
50%
of
the
world’s
Merino
wool
• Australia
produces
nearly
a
third
of
the
world’s
raw
wool.
• Sheep
numbers
– 1984:
150
million
(28%
WP)
– 2005:
100
million
(22%
WP)
– 2010:
75
million
• A
major
part
of
the
decline
has
been
in
cropping
areas
59. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Animal
Welfare
Mulesing
• Mulesing
was
'invented'
in
1923
by
a
farmer
called
Mules
as
a
'cure'
for
flystrike
• is
done
to
remove
folds
of
skin
which
agract
the
blowfly
to
lay
her
eggs
60. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Wine
• The
Australian
wine
industry
has
been
a
major
Australian
success
story
but
it
is
now
in
major
difficulty.
• Most
Australian
vineyards
are
irrigated
and
hence
producNon
variability
is
much
less
than
for
most
Australian
agribusinesses.
• The
major
markets
are
the
EU
(over
50%)
and
USA
(35%)
The
monthly
value
of
Australian
alcoholic
beverage
exports
since
1988
(A$millions)
61. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Sustainable
management
• Climate
change.
Big
factor
for
Australian
agriculture.
• Planning
and
strategies
underway
between
industry,
government
and
research
groups.
62. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Some
Conclusions
• Australian
agribusiness
is
climate
driven.
• ProducNon
variability
creates
major
problems
in
developing
a
‘market
led’
approach.
• For
most
products,
Australia’s
compeNNve
advantage
lies
in
cost
efficiency
combined
with
being
able
to
achieve
high
technical
specificaNons.
• The
big
quesNon
is:
will
agricultural
commodiNes
tend
to
decline
in
price
in
the
future
as
in
the
past,
or
are
we
entering
a
new
era
of
volaNle
but
increasing
commodity
prices?
• Long
investment
cycles
increase
risk,
parNcularly
for
branded
products
63. Nic Lees – NicLeesAgrifood.com Agribusiness in New Zealand and Australia
Further
InformaNon
• Australian
Bureau
of
Agriculture
and
Resource
Economics
(ABARE)
www.abare.gov.au
(This
is
an
excellent
site
and
is
worth
navigaNng
around)
• Rural
Industries
Research
and
Development
CorporaNon
www.rirdc.gov.au
(Mainly
for
new
industries)
• Dairy
Australia.
www.dairyaustralia.com.au
(This
is
a
comprehensive
source
of
informaNon)
• Grains
Research
and
Development
CorporaNon
www.grdc.com.au
• Cogon
Research
and
Development
CorporaNon
www.crdc.com.au