Agri-food industry faces transformational turning point
New Zealand's primary sector needs to be prepared to completely transform if it's to succeed in the near future, according to a new report by KPMG.
KPMG's latest Agribusiness Agenda addresses how the combination of traditional practices must combine with new digital and biotechnologies as the future changes.
"What has delivered us success in the past will not bring success in the future," says Ian Proudfoot, KPMG's Global Head of Agribusiness.
Changes demanded by consumers, new disruptors entering the market, and innovation from competitors will be crucial in shaping the primary sector's future within the next five to 10 years.
And the global downturn in dairy has forced a change in thinking about the future, Mr Proudfoot says.
"People are speculating over whether we've reached peak dairy, and focusing on how we can realise more value from the attributes of grass fed milk. They're also thinking about the other available uses for the country's land -- particularly irrigated land -- that may deliver higher returns in the future."
While Kiwis have good ideas, a lack of commercialisation skills mean the industry can't take solutions from the lab to the world market, Mr Proudfoot says.
It's why sector leaders have identified boosting the sector's innovation capability as a key priority.
"One suggestion is to create a standalone capital fund that takes early-stage investment positions in transformational technologies," Mr Proudfoot says.
Other priorities highlighted in Agriculture Agenda include: