In 2023, New Zealand's primary sector was responsible for exports totaling $56 billion, demonstrating significant productivity improvements over the past four decades. Aidan Gent, ASB's General Manager, Rural, emphasized the necessity for the primary sector to continue enhancing productivity amidst changing market demands and sustainability requirements from major global retailers and food companies. These requirements often exceed the obligations under the Paris Climate Accords.
Efficiency gains in farming and horticulture have been driven by research and development in genetics, breeding techniques, and on-farm technology innovations. Despite the challenges of high interest rates, inflation, and fluctuating commodity prices, New Zealand farmers have historically demonstrated resilience through economic fluctuations and environmental challenges.
ASB has committed up to $500 million in loans for productivity-enhancing projects within the primary sector, alongside $5 million in ASB Productivity Grants, to support these initiatives. Gent highlighted the evolving practices of New Zealand farmers towards integrating productivity with environmental sustainability, marking a significant shift in investment focuses within the food & fiber sector.
Source: businessdesk.co.nz
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