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Achieving virtual scale for our largest industry

 

(This blog also appears at pastureharmonies.org)

Scale matters in exporting according to the World Bank…..so here’s a way to get virtual scalefor our biggest industry.

The World Bank’s recent report ‘ExportSuperstars’, shows that company size matters when it comes to countries’ exporting. LittleSME’s don’t cut much mustard.

Business NZ chief executive Phil O’Reilly , in commenting on RobO’Neil’s Stuff story that the World Bank wants us to think big, says

“New Zealand has some unique challenges to overcome in its incredibly small scaleand being the most isolated developed economy in the world.”

O’Reilly goes onto say:

“one effective model is the aggregation of small businesses into groups allowingthem to in some ways act like and gain the advantages of large businesses.”

Given that NZ Inc’s biggest business is the conversion of solar-derived pastures into variousproteins and fats, through thousands of small on and off farm businesses (and even the large onesare mere tiddlers in the world scene), wouldn’t it make sense to aggregate if we could?

Given the fierce independence mindset of our agricultural (and other) businesses, the best wayfor us to do this I argue is around the shared story of our pastoral method?

After all, in an affluent consumer’s mind, the story of a product is a large reason why theydo, or don’t, buy it.

No one has claimed the ‘global mind’ (nor branded it) for responsible pastoralism. By andlarge (with some exceptions), how we produce our protein is a pretty sophisticated use of sunshine,soil and fresh air.

Now, no one New Zealand company can claim the NZ Inc mandate.

But collectively we can.

Collectively, owning and telling our story through individuals, we can grunt up, obtain thevirtual scale that the World Bank suggests is vital, aggregate around a common heritage and obtainsome of these advantages of large businesses.

Owning our pastoral story would sit perfectly alongside the CollaborationProgramme for Greater Farmer Profitability recently kicked off under the Primary GrowthPartnership fund. In fact it would underpin the whole thing, and move us further away from thecontinual price fighting end of the market.

But perhaps storytelling as a concept is too big an ask for the collective brains and leadershipof the agricultural industry. As a nation we’ve always been more comfortable about actually doingthings, than talking about what we're good at, what we believe.

So, even though we essentially perfected rotational grazing, the thought that we could or shouldname it at a global level is just too radical.

However; the opportunity to provide virtual scale for our largest industry is waiting in thewings.

We simply have to think differently about what it is we sell to the world – and that is anideal, linked to a method.

The moment we stop thinking only production and think ‘picture’ is the moment we’ve adaptedto a storytelling world - which in today's digital age is the beginning, middle and end ofselling.

Achieving virtual scale for our largest industry

Achieving virtual scale for our largest industry
 
 
 
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