Seed Companies Support Arable Farmers Amid Sector Exodus
Seed and grain companies in New Zealand are working to support arable farmers who are diversifying or leaving the sector due to financial pressures. According to Dr. Sarah Clark, chief executive of Seed and Grain New Zealand, these companies have been aware of the exodus facing the sector for some time.
The main challenges facing arable farmers include increasing costs, particularly for fuel, fertiliser, agri-chemicals, and replacement machinery. Global inflation, geopolitics, and poor weather conditions over the past two summers have all contributed to these issues.
Clark noted that the sector is fragmented, with different pressures on its four main areas: grain, Nui ryegrass, vegetable seed multiplication, and proprietary New Zealand seed. Grain and Nui ryegrass are commodities with international prices and minimal margins, while vegetable seed multiplication has good returns but requires strict rotation for purity assurance, pest control, and soil health.
The Arable Sector Forum in Christchurch last week brought together government, growers, and industry to discuss challenges and opportunities facing the sector. Dr. Clark highlighted the importance of collaboration within the sector, stating that 'without the arable farmer, there is no seed and grain trade and there are no seed companies.'