Understanding Primary Production in New Zealand

1. Describe aspects of primary production in NZ AS 90920 Internal Assessment (3 credits)

2. In the exam – the examiner will be looking for you ability to do the following…

3. Explanatory Notes • Demonstrate knowledge requires description of the geographic distribution of types of agricultural and horticultural primary production and of the factors influencing this distribution. • Demonstrate detailed knowledge requires explanation of the geographic distribution of types of agricultural and horticultural primary production and of the factors influencing this distribution. • Demonstrate comprehensive knowledge requires applying knowledge of the factors influencing geographic distribution of types of agricultural and horticultural primary production. This may involve comparing and/or contrasting specific factors influencing geographic distribution. • Factors influencing the geographic distribution of primary production refer to physical, climatic and market factors. • Physical factors may include topography and soil. • Climatic factors may include sunshine, rainfall, frost, wind and temperature. • Market factors may include labour availability, proximity and transport to market, access to airports and/or seaports and access to processing plants. • Types of agricultural and horticultural primary production may include apples, dairying, deer, fine wool, forestry, arable cropping, kiwifruit and grapes.

4. Contents Distribution • What is NZ’s Primary Industry • Mapping NZ’s Primary Industry • NZ Pipfruit Industry (apple focus) • Marketing NZ apples • The NZ Dairy industry • Fonterra – increasing consumer demand

5. Resource - Aotearoa Resource A: Regions of New Zealand

6. Resource – Climate info

8. Resource D: Sea Ports and Airports Sea port International airport

9. What is NZ’s Primary Industry Primary: Being first in a list, series, or sequence Industry:A specific branch of manufacture and trade • A Primary Industry is therefore a business that is the first in a series of business? • Primary Industry refers to a business that turns natural resources into products eg farming and fishing.

10. Which of these are not examples of a primary industry.

11. NZ’s Primary industry sectors • Agriculture • Forestry • Horticulture • Aquaculture

12. Match the following primary Industries to the correct sector • Agriculture • Forestry • Horticulture • Aquaculture • Vitaculture • Dairying • Pip fruit (eg apples) • Berries • Grapes • Pork • Citrus • Cut flowers • Arable crops (eg wheat) • Pinusradiata • Poultry • Deer • Extensive sheep and beef • Semi-intensive sheep and beef • Market gardens • wool

13. Map of NZ showing trends in Land-use

14. What are the factors that influence what the land can be used for in NZ Physical factors • topography • aspect • Soil Climate factors • Rainfall • Temperature (inc frost) • Sunlight hours • Wind Market factors • labour availability • market proximity

15. Case study one. NZ apples • Apples are NZ’s third largest horticultural crop • In 2007 export apples earned NZ $343,000,000

16. Apples in NZ • Apple trees require a dry summer and cool winter. • The apple tree thrives in locations that have a distinct winter period (the tree must have a dormancy period of at least 1200 hours per year under 7.2ºC) • The summer needs to be dry and warm with intense sunshine. • Nelson, Hawkes Bay and Otago and have the climate and soil fertility ideally suited for growing apples • Conditions found in Nelson produce fantastic colour, texture and flavour in apples. • Link to ENZA – showing varieties grown in each region

17. Apples in NZ Major apple growing regions in NZ • Hawke’s Bay • Nelson • Otago Minor regions • Wairarapa • Marlborough Link to Niwa climate data - graphs

18. Apples in NZ • Practice Question Explain how TWO physical factors influence the location of the apple orchards in NZ. Explanation of physical factor (climatic): Explanation of physical factor (topography): The climate ideally is moderate in rainfall so that the grower does not have the cost of irrigation. High sunshine hours, cool winters, and warm summers allow the fruit to develop and ripen. the topography of the land used for apple trees is flat plains, which allows for easier harvesting and management of the trees (pruning and thinning).

19. Apples in NZ Labour availability • Apples require major seasonal work inputs. • Feb March April – Picking • June July August – Prunning • November – Thinning • This requires the orchards to be located in areas where seasonal workers live or can easily relocate to. • Click for link to Seasonal work website

20. Apples in NZ Market Proximity • The majority of apples in NZ are exported as ‘fresh’. A minor amount are exported as processed (eg apple juice). • Each orchard needs to be able to transport their apples quickly to a packing and storage facility. • Nelson has multiple packing houses and coolstores

21. Link to Jazz site – packaging options

22. Link to jazz – promotional website

23. Apples in NZ • If your orchard is close to a pack house and cool store • Transport costs are reduced • Risk of damage in transit is reduced • Product can be placed in ideal storage conditions quickly, reducing perishability.

24. NZ Dairy Industry • The value of New Zealand dairy exports in 2009-10 was $NZ 10.1 billion, • The dairy industry is New Zealand’s biggest export earner • New Zealand has 11,618 dairy herds and 4.25 million dairy cows and heifers in milk in (2008/09). • New Zealand produces about 2% of total world production at around 16 billion litres per annum but, unlike most other countries, around 95% of it's dairy produce is exported rather than consumed by the domestic market. • New Zealand is the world’s largest butter exporter and accounts for about 44% of all traded butter.

25. NZ Dairy Industry • In summary NZ is very good at making top quality dairy products at a low cost! • Key strengths of New Zealand’s world-class dairy industry are its: • efficient all-grass farming system, • large-scale processing,

26. NZ Dairy Industry Dairy cow Feed supply curve (when does the grass grow) The better matched feed supply is to feed demand – the cheaper it is to produce milk Feed Demand information (NZ Dairy Website)

27. Daily milking cow requirements: kg DM/cow/day at 11.0 MJ ME/kg DM • Breedkg Lwtkg MS/cow/day • 1.01.21.41.61.8 • J 350 11.1 12.5 13.9 15.3 16.7 • J 400 11.5 12.9 14.3 15.7 17.2 • J x F 450 12.2 13.7 15.2 16.6 18.1 • Fr 500 12.8 14.3 15.8 17.3 18.8 • Fr 550 13.3 14.8 16.3 17.8 19.3 Data from DairyNZ- http://www.dairynz.co.nz/file/fileid/33397

28. NZ Dairy Industry • Dairy Cow Feed demand Curve Late summer drying off Birth (start of lactation) Feed requirements

29. NZ Dairy Industry The better matched feed supply is to feed demand – the cheaper it is to produce milk Too much grass Too little grass Feed Demand information (NZ Dairy Website)

30. NZ Dairy Industry Feed supply – when does the grass grow A top producing dairy farm would have a pasture growth curve more like the red line. Note the more even seasonal growth giving less dips and peaks in pasture growth. Feed Demand information (NZ Dairy Website)

31. NZ Dairy Industry • In summary a good diary farm will have a climate that enables the grass to grow all year round. • Climate conditions for this include • Mild winters (warm winter temperatures) • This keeps the soil temperature up over winter and allows a good ‘cover’ of grass going into calving • Reliable rainfall over summer • This enables the grass to keep over summer and extend the lactation period through to autumn • Note: ‘cover’ of grass = amount of grass stored in the paddock waiting to be fed to the cows

32. Key Dairy Farm areas in NZ • Northland • Waikato • Taranaki • Manawatu • Otago/Southland (with the introduction of irrigation) Link to picture of irrigated Southland dairy farm

33. NZ Dairy Industry • Market Factors. • Most NZ dairy farms have the ability to store their milk for 2 to 3 days in one of these. After this it needs one of these to visit.

34. NZ Dairy Industry • Therefore dairy farms need to be close to a milk processing factory or collection point. Link to map showing location of Fontera dairy factories

35. NZ Dairy Industry When formed in 2001, Fonterra was owned by 11,000 dairy farmers and supplied 95% of the country’s milk. The volume and reliability of Fonterra’s milk supply, which comes from more than 12,000 dairy farmers, has made it one of the top 10 dairy companies in the world. It is the leading New Zealand exporter of dairy products and is responsible for a third of international dairy trade. Fonterra’s global milk supply comes from farms in New Zealand, Australia, Chile and China, and it sells products to customers and consumers in 140 countries. It collects more than 13 billion litres of milk a year, and manufactures and markets over 1.8 million tonnes of product annually. It has around 20,000 staff in 40 countries, with over half of its staff working outside New Zealand.

36. NZ Dairy Industry • How does Fontera as a grower organisation increase consumer demand? • By having a large and reliable supply – Fontera can negotiate large trade agreements with different countries or large companies. • These trade aggreements mean that NZ dairy farmers have access to these markets and can therefore produce more milk to fill t he market needs.