Adding value to farm products : Case study analysis of four applications

Abstract

New Zealand entered the post war era with a highly protected economy. This was accompanied by high agricultural commodity prices resulting from post war shortages and increased demand during the 1950's. Protection removed the need for domestic manufacturing to keep up with improvements in technology and agricultural protectionism overseas prevented New Zealand from exploiting its natural advantage. Few individual New Zealanders were aware of the economy's actual deterioration over the period 1970 - 1990. The common economic measures were regarded as very satisfactory until the early 1970's - unemployment remained low, inflation was approximately 5% and trade figures were considered satisfactory. The oil shocks of the 1970's, however, were to expose major weaknesses and economic performance began to deteriorate. This paper will focus on the concept of ‘Added Value’ and if and how it exists as a viable option for the farmer when assessing profitable resource use. The paper then surveys four farmers in their attempts to add value to their respective products. The farmers’ thought processes have been examined to determine if any common ground exists between what has been termed the ‘entrepreneurial farmers’. Before examining the topic, it is important to have an understanding of the agricultural sector’s history in New Zealand and why individual farmers have been forced to modify from traditional pastoral systems.