Seed suppliers trusted and valued

The trusted relationship between farmers and seed retailers is the key element in decisions about pasture renewal plans.

This factor has been highlighted in recent market research among farmers by the Pasture Renewal Charitable Trust (PRCT), aimed at more understanding of the decision-making process about the frequency of pasture renewal.

The importance of the farmer-reseller relationship is not surprising, given the value farmers and rural industry people put on doing business with people they know and trust.

For most farmers, it is the people who come onto their farm and know their operation who are the most trusted advisers. They are the people farmers can ring up if there is a problem and can rely on them to be accountable.

Consultants are the other major group of people who farmers seek advice from, but it is the resellers who are ahead in popularity.

The PRCT market research findings also highlight the need for farmers to have reliable information on the value of pasture renewal to their annual returns. Under current farming prices, the return on investment in pasture renewal in the dairy sector is considerably rosier than for sheep and beef farmers.

The return on investment is still viable in the medium term and, with returns forecast to increase, renewing pastures will increase management flexibility to perhaps carry more stock.

Campaign focus

This research result is of value to the trust in focusing its campaign to gather relevant information and communicate it to farmers and the industry so more investment is made in pasture renewal.

To support retailers advising farmers on pasture renewal, the trust has prepared a manual to be presented to resellers during a national roadshow during June and July.

The manual addresses many issues regarding the frequency of pasture renewal.

For many farmers, making pasture renewal pay is a key factor in their decision making. Once extra feed is available as new pasture, management decisions on how to best utilise that higher quality and quantity of feed become very important.

Another major benefit of renewed
pasture for farmers is the ability to increase their stock performance, both in growth rates and the condition of their animals. Each farming operation needs to be assessed for how best to utilise new pasture and a range of management decisions can provide flexibility for farmers.

Key advantage

With New Zealand’s agriculture based strongly on pasture production, farmers’ ability to feed animals on pasture is the country’s key competitive advantage, enabling them to produce exportable
products earning around 35 percent of New Zealand’s gross domestic product (GDP).

Increased investment in pasture renewal can significantly increase profits and production efficiencies in the whole pastoral sector.

Published courtesy of Dairy Exporter - July 2008