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FACTORS THAT AFFECT PROFITABILITY

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  1. FACTORS THAT AFFECT PROFITABILITY

  2. PHYSICAL AND CLIMATIC FACTORS

  3. Physical Factors • Write down 4 examples of physical factors that can impact on Farm Profitability

  4. Climatic Factors • Write down 5 examples of climatic factors that can impact on farm profitability. • Get out a COW and go to the sites mentioned in the next slide. • Read each article and write down the major impacts for the farmer and for our economy.

  5. DROUGHT • http://www.stuff.co.nz/business/farming/sheep/8492698/Drought-likely-to-clip-wool-haul • http://www.stuff.co.nz/waikato-times/business/8483170/Drought-looms-over-good-Fonterra-half-year-results • http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10873587 • http://www.rotoruadailypost.co.nz/news/inside-story-farm-systems-have-to-adapt/1795575/

  6. SOCIAL FACTORS • What say does society have on primary production in NZ?

  7. http://www.nait.co.nz/ • http://www.foodsafety.govt.nz/

  8. TECHNOLOGICAL FACTORS

  9. Technological changes • What are they? • How can they be measured? • How has technology changed the Meat Industry? • Can you draw up a timeline to show the changes in the meat industry from pre refrigeration to now?

  10. Interesting sites • http://www.scott.co.nz/meat-processing/lamb/lamb-processing • http://www.teara.govt.nz/mi/agricultural-processing-industries/page-8 • http://www.geap.co.nz/ • http://www.techhistory.co.nz • http://www.biotechlearn.org.nz/focus_stories/wool_innovations/developing_natural_easy_care_fabrics

  11. ECONOMIC FACTORS

  12. Economic Factors • New Zealand is the furthermost country from the rest of the world ( i.e. the Northern Hemisphere) • And is quite small • This means that as a country, our economy depends on the needs and wants of other countries

  13. A High New Zealand Dollar • When the New Zealand dollar is valued highly against the US dollar then: • Imports are cheaper into the country. This is because we can get more for our money. • Exporters don’t get as much money as the people who buy their products can not buy as much, so they don’t.

  14. A Low New Zealand Dollar • When the New Zealand dollar is valued low against the US dollar then: • Imports are more expensive to get into the country. This is because we get less for our money. • Exporters earn more as the people who buy their products can buy more, so they do.

  15. Question What is the current exchange rate? • US dollars • Australian dollars • British pound • Japanese yen • Euro

  16. Question • Visit the sites in the next slide and read any relevant information.

  17. http://en.wikipedia.org/wiki/Exchange_rate • http://www.infometrics.co.nz/Forecasting/10086/9011/What-is-an-exchange-rate

  18. POLITICAL FACTORS

  19. Political factors • Tariffs • Quota • Treaties

  20. http://www.teara.govt.nz/en/1966/tariffs • http://en.wikipedia.org/wiki/Tariff • http://www.infometrics.co.nz/Forecasting/10086/9011/What-is-an-exchange-rate • http://www.investopedia.com/terms/t/tradesanction.asp • http://www.businessdictionary.com/definition/export-quota.html

  21. http://www.nzmeatboard.org/ • http://www.foodsafety.govt.nz/industry/sectors/dairy/exporting/QMS/

  22. CULTURAL FACTORS

  23. What cultural factors from our export markets impact on our primary production? • Halal slaughter – for Muslim countries • Christmas and Easter lamb for the UK • Marbled beef – for Japan • Deer velvet – for China • What others are there?

  24. Read through the following news articles, websites etc to get an understanding of some of the cultural factors that affect the profitability of New Zealand Primary Production

  25. Halal slaughter • http://www.teara.govt.nz/en/photograph/19226/halal-slaughter • http://www.beeflambnz.co.nz/index.pl?page=faq&m=458 • http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10816826 • http://www.stuff.co.nz/waikato-times/opinion/letters/6216191/Letter-Halal-slaughter-criticism

  26. Lamb exports • http://www.eblex.org.uk/markets/news-nz-lamb-exports-higher.aspx • http://www.mla.com.au/Prices-and-markets/Market-news/Strong-start-for-NZ-lamb-export-season • http://www.meattradenewsdaily.co.uk/news/211112/nz___lamb_season_off_to_a_good_start_.aspx

  27. Marbled Beef • http://en.wikipedia.org/wiki/Marbled_meat • http://www.odt.co.nz/news/business/217333/nz-marbled-beef-tempt-world • http://straightfurrow.farmonline.co.nz/news/nationalrural/agribusiness/general-news/24-million-investment-for-highvalue-marbled-beef/2617523.aspx

  28. Deer velvet • http://www.velvet.org.nz/ • http://www.deervelvetnewzealand.co.nz/ • http://www.interest.co.nz/rural/resources/trends/velvet-trends