4 | DAIRY PEOPLE » Gralyn Farms Working as a contract milker for Gralyn Farms near Inglewood, Sam Ebbert milks 630 cows under Mt Taranaki (story on page 3). Karen Phelps Hugh and Sharon Ritchie’s Hawke’s Bay farming operation has built its success on diversity, resilience and adapting to change. But the closure of McCain Foods’ New Zealand operations has created an immediate challenge forcing the couple to reassess a significant part of their business and look for new opportunities. Around half of their cropping operation had been dedicated to vegetables supplied to McCain Foods, meaning the impact of the closure has been immediate. “We have investment in equipment - washing, planting and harvesting - that we need to re-deploy or sell or find an alternate market,” explains Hugh Ritchie. “We’re going to let the dust settle and see what to do.” The closure follows a wider pattern of international companies reducing their New Zealand operations including Heinz Wattie’s. “We are seeing multiple companies electing to pull out of or reduce their operations in New Zealand after operating here for a long time,” says Hugh. “We need to know why they are struggling to make a viable return. I suspect there are a whole lot of reasons but it’s a real concern.” For Hugh, the issue raises broader questions about New Zealand’s food security and international competitiveness. He believes the fresh vegetable sector also needs to examine how value is distributed through the supply chain. “In the fresh vegetable market we need to look at the margins taken between the grower and consumer,” says Hugh. “That needs to be looked at seriously. Are appropriate returns being made in the appropriate areas?” Another challenge is ensuring New Zealand producers are competing on equal terms with imported products. “The systems and quality parameters are not always the same, such as carbon requirements,” explains Hugh. “This might mean we can’t compete against imported fruit or vegetables. I believe trade has to be fair.” The Ritchies are now exploring a range of alternatives for their cropping land. Options include more seed crops, increasing maize and wheat production, expanding grass seed production and investigating clover seed production. “Lots of opportunities have jumped out of the woodwork so we’re making a plan but it’s certainly left a hole in our business,” says Hugh. The closure of EUROMALT, which purchased barley for malt production for the brewing industry, has added another challenge for arable farmers with the Ritchies among those who were suppliers. “It’s another example of the serious questions that need to be asked in terms of competitiveness,” says Hugh. “I suspect energy prices have played a part in the shutting down of some businesses.” Despite these pressures, the Ritchies’ diversified farming model, spanning over 2000 hectares across two units, that has helped provide stability. The operation includes arable production, beef finishing and lamb trading, meaning it has other income streams to support the business. The operation finishes about 1500 bulls each year from weaners through to 18 months, targeting a minimum carcass weight of 320 kilograms. The cattle are sold before Christmas as the land can become summer dry, with the couple also considering using collars to better manage cattle on cropping ground. The lamb part of the business is a winter trading operation with sheep grazing cropping areas before being sold from early August to mid-September. Up to 10,000 lambs can be sent to the works each year with around 8500 expected this season. For Hugh the key to navigating uncertainty is continuing to adapt. “You have to keep your eyes open for new opportunities and be ready for change. That’s what farming has always required.” Ritchie’s facing major change Is your business performing as well as it could be? We can help Learn more at www.unlimit.co.nz Proud to support Sam Ebbert Proudly supporting Drumpeel Farms For all your Hay - Silage - Cultivation Phone Mike 021 733 918 mike@mikekettle.co.nz | www.mikekettlecontracting.co.nz P SRS 03 302 8115 email: nzoffice@spsnz.co.nz Proudly supporting Hugh Ritchie SOUTH PACIFIC SEEDS (NZ) LTD Specialists in Hybrid Vegetable Seed Production www.energyvets.co.nz enquiries@energyvets.co.nz ENERGY VETS TARANAKI LTD Inglewood Clinic (06) 756 7228 Waitara Clinic (06) 754 8791 • from page 3 ARABLE » Hugh and Sharon Ritchie
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