Executive Summary
Previous research has suggested that inadequate information has been a significant barrier to the development of new agricultural and horticultural industries in New Zealand. Potential industry participants require information on which to make rational investment and production decisions, while industry leaders require information to ensure that industry organisational tasks are carried out efficiently. The Ministry of Agriculture and Forestry (MAF) requires information on emerging industries in order to develop appropriate policy advice to government on barriers to industry development and possible policy responses
Consequently, MAF commissioned a study, to be carried out during the first half of 2001, that would:
- develop a clear definition of the information needs of existing and potential producers in emerging industries;
- provide a detailed statement of the type of information needed by industry leaders on the funding, structure and organisation of emerging industries and the best method of delivering that information;
- develop and test a framework for reporting information relevant to emerging industries that meets the needs of industry participants, industry leaders and the Government.
A series of focus groups, comprising participants in emerging agricultural and horticultural industries was conducted at several locations throughout New Zealand during March and early April. The industries represented at the focus groups included:
- organic livestock, flower, vegetable seed and milking sheep growers - held in Balclutha;
- organic meat, flower, ostrich and hydroponic growers – held in Invercargill;
- organic pipfruit, ostrich, lavender, olives, truffle and organic livestock and cropping growers - held in Hastings;
- lavender, specialist seeds, ostrich and herb growers – held in Palmerston North;
- ostrich, alpaca, organic meat, nut (chestnut, walnut, hazelnut) and olive growers – held in Christchurch.
The problems encountered on entry to a new industry, and the place of lack of information amongst these, was discussed by each group before addressing the subject of the information needs of individual group members. Finally, each group as a whole defined the requirements of an information framework.
There was a great deal of similarity in the framework requirements defined by each of the groups, although the emphasis placed on individual elements varied between groups. It was concluded that the framework should, ideally, include:
- detailed costs of production models comprising gross margins under a range of price scenarios;
- world market information including price trends and variability, stability in terms of preferred variety, colour, etc., international consumption and production trends and factors likely to influence these in the future;
- a brief discussion of the risks inherent in the industry including yield and price variability;
- discussion of the cultural factors that would affect the potential of the crop to be produced in different regions or areas of New Zealand (sunshine hours, frost sensitivity, soil requirements, etc.);
- brief comparison with other crops that might be grown in similar environments;
- description of international quality standards and quality control systems and any standards or systems in place in New Zealand;
- information about business management and sources of business management training and services;
- a list of contacts and sources of more detailed information on all aspects of the industry, to the extent that these are available.
Group members thought that the framework should:
- be up to date. It should be updated at least every two years and more often if major changes in the industry, or in international markets, mean that the information presented becomes misleading;
- provide clear references and links to enable readers to obtain more detailed information if they wish;
- be prepared by a reputable independent organisation(s) and be widely available. Group members felt that the information should be available at local government offices, local MAF offices and organisations concerned with regional development that its existence should be publicised in farming publications or the lifestyle real estate pages in newspapers;
- if possible, be made available on a website with links set up on the other main rural web sites;
- if possible, be associated with a package on getting started in new rural ventures.
A series of 17 interviews with the leaders of emerging industries, senior staff of established industry organisations and representatives of industry organisations that provide advice and services to new industry leadership, were held, to ascertain their views on the type of information needed to assist new industry leadership.
It was generally felt that the leaders of new industry organisations today face a very difficult task for which there is little support. Traditional sources of assistance, including the HEA, when it had funding to assist some small groups that were not yet Recognised Product Groups, and "lead scientists" who were major drivers in industry development, are no longer likely to be available. Areas in which those interviewed felt that a source of information would be of value were:
- the structure of the industry organisation;
- setting up and planning;
- research and development;
- quality management;
- market information/market development;
- legislation to assist industry.
Information frameworks in which to present information for both industry leaders and industry participants were designed on the basis of the views of focus groups members and interviewees. Although information is provided for new agricultural and horticultural industries in many countries, no relevant research on the most appropriate types of information was located. However, a number of those sources were reviewed to identify the types of information provided, which was of value in developing the framework.
As the information required to complete the industry leaders information framework did not vary amongst industries, a single information document (Appendix 1 of the report) discussing sources of assistance and funding for industry organisations was prepared.
The framework for industry participants was tested by compiling information for the olive industry, as a representative of a plant-based industry, and the alpaca industry as a representative of an animal based industry. Both are included as appendices to the research report.
