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Based on the report, New Zealand’s food and fibre exports are envisioned to experience a dip in 2023/2024, reaching US$54.3 billion. However, the report also revealed a promising mid-to-long-term picture fueled by digital innovation, with export revenue forecast to climb to a record US$57.7 billion in 2024/2025.
“It is been a tough few years for our food and fibre sector,” Agriculture Minister Todd McClay acknowledged. High inflation, supply chain disruptions, and geopolitical tensions have all taken their toll. But amidst these challenges lies a digital revolution quietly transforming New Zealand’s agricultural landscape.
One key area of digital transformation is precision agriculture. Farmers are increasingly deploying drones with sensors to collect data on soil health, moisture levels, and crop growth. AI platforms then analyse this data, providing farmers real-time insights to optimise fertiliser application, irrigation, and pest control.
The rise of precision agriculture has led to the growth of IoT-based smart farming, which involves the adoption of drones, IoT sensors, and weather monitoring stations to help agribusinesses effectively plan and respond to weather. With the help of drones, GPS, and satellite imagery, farmers can collect data on crop growth rates, nutrient levels, and soil moisture content, which can help them optimise the use of resources and reduce costs. This not only boosts yields and reduces environmental impact but also allows farmers to weather adverse weather events by predicting and mitigating potential damage.
Another development is the adoption of blockchain technology. New Zealand has a growing blockchain technology sector, with entrepreneurs and early adopter businesses leading the way in its use, and the technology is expected to make business and government operations more efficient and secure.
Blockchain ensures consumer transparency and traceability by embedding sensors in packaging and tracking data on temperature, humidity, and location throughout the supply chain. This builds trust in New Zealand’s food safety practices and opens doors to premium markets where provenance and sustainability are highly valued.
New Zealand has a growing blockchain technology sector, with entrepreneurs and early adopter businesses leading the way in its use, and the technology is expected to make business and government operations more efficient and secure.
The rise of e-commerce and direct-to-consumer (D2C) platforms also empowers New Zealand’s food and fibre businesses. Since the start of 2022, online spending in New Zealand has made up around 16% of total spending. The country’s e-commerce sector is projected to bring in US$5.33 billion in revenue in 2023, with an average revenue per user (ARPU) of nearly US$1,000.
By cutting out intermediaries and connecting directly with consumers, farmers can capture a larger share of the profits while offering fresh, high-quality produce now to their doorsteps. Subscription box services and online marketplaces specialising in premium New Zealand products are gaining traction, offering exciting growth opportunities.
Data analytics is also crucial in predicting future demand and optimising production. By analysing market trends and consumer preferences, New Zealand’s food and fibre businesses can adapt their offerings and target specific markets more effectively. Additionally, data analysis can minimise waste and optimise resource utilisation, contributing to a more sustainable food system.
While the digital revolution offers immense potential, challenges remain. Bridging the digital divide and ensuring equitable access to technology for all farmers is crucial. Additionally, cybersecurity threats must be addressed to protect sensitive data and ensure the integrity of the food supply chain.
Despite these challenges, New Zealand’s food and fibre sector is well-positioned for a better digital future. By embracing innovation, fostering collaboration, and investing in skills development, New Zealand can not only navigate the current dip in export revenue but also unlock its full potential as a leading global exporter of high-quality, sustainable food and fibre. The future of food is digital, and New Zealand is poised to be a leader in this transformative journey.
