5.8 Diversification
In recent years one of the hopes for sustainability for rural areas has been diversification. In this mid Rangitikei area there have been many attempts at diversification - some more successful than others, whether measured on economic terms or a broader base. The terrain is limiting. Steep hill country does not necessarily lend itself to a wide variety of options, other than improvement in stock management or introduction of new breeds. In parts of the area there are gardens, some with a growing international reputation, which can be described as diversification.
A number of families are setting up homestays, with some known overseas. Women are establishing businesses such as hand weaving, plant shops, antique businesses, though these would be seen more as ‘pin money’ efforts. There is considerable heritage activity, especially round Mangaweka, and the growing of crops such as asparagus, which in one year earned more than a main farm; adventure activities, such as one of the highest bungy jumps in the world, river rafting, and jet boats. The potential in this area is, as yet, largely untapped.
For a number of families these activities are complementary to farming, for others their main focus. There is a high risk attached with some activities partly because the Rangitikei is only now establishing itself on the ‘tourist’ map. Two years ago Rangitikei Tourism established an office in Taihape that has proved very successful. It provides a focus for the increasing variety of tourist activities, and markets these, as well as the Rangitikei region. It also provides information, support, and networking opportunities for people interested in exploring possibilities.
It was apparent that there was a sense of inferiority, or frustration, with neighbouring districts such as the Manawatu who are said to attract more financial investment and interest from mainline tourism organisations, and, from one or two people, of the amount of tourism money which goes to places such as Taupo or Queenstown.
Diversification has both positive and negative connotations. The adage does carry truth: "if you can afford to diversify you don’t need to, and if you need to, you can’t afford to". Others had difficulty in juggling priorities: "It’s difficult to manage - there isn’t enough time to diversify with intensive activities - [you] can’t do everything yourself, but [you] can’t provide enough income [profit] to employ someone else." "We’ve diversified because one could be up and the other down and we’ve tried to overcome it that way" (a family who had both sheep and deer).
[Trying to diversify] "It’s like buying the farm again."
A number of people also suggested there is a risk in spending so much time, energy, effort, in developing a new activity or market, that the farm can get neglected, especially if one of the reasons for diversifying is dissatisfaction with the lifestyle or that financially things are so bad. The farm was usually seen as the potential main financial base. Few people thought they would make a mint from diversification but it has enabled a number of farm families to entertain a better lifestyle, either in the sense of additional monies, extending their range of skills, including management, and meet a wide range of people.
It was suggested that in this area, at least, diversification is sandbagging - diverting energy away from what is really happening on the farm – "it’s just delaying the process".
Contact for Enquiries
Rural Affairs Coordinator
Sector Performance Policy
MAF Policy
Ministry of Agriculture and Forestry
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0675
Fax: +64 4 4 894 0745
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