Priority 1: BOP farms thrive now and are equipped for business development for future changing contexts 

Context

• Public perception and tourism

  Public perception of dairy farmers in BOP is poorer than other regions in the country – largely centred around issues with water quality (particularly in the lakes and estuaries), perception of farmer employers and animal welfare (shade and shelter). Farmers and RPs in the region see public perception as a significant issue to be resolved. The significance of tourism in the region has both a positive and negative impact on dairying – district authorities wish to retain dairy in the landscape (rather than have forestry dominate), but also have high demands on the impacts of dairy on regional resources favoured by tourists, such as lake water quality. Some dairy farmers are dabbling in tourism themselves by offering accommodation and/or farm experiences.

• Improving environmental performance

  Improving environmental performance ranked highest in importance in the farmer perception survey and was tackled as the area of biggest opportunity at the farmer planning meeting. If DairyNZ can help make further significant inroads here, farmers will not only deal to a threat to their continuing operation, but by demonstrating good stewardship they should improve their standing in the community and generate increased pride in their sector and identity.

• Farm performance

  There is currently a large range in the financial performance of farms in the BOP region. Closing this gap will be important for maintaining the viability of businesses while achieving better all-round outcomes and underpinning resilience in the face of further changing contexts.

• Geography, land use competition and scale points

  • BoP not considered a dairy growth area
  • Dairy may be left on marginal land in competition with horticulture
  • Smaller farms, and owner operators
  • Pockets of dairy communities, different from each other, and often intermingled with other land uses including lifestyle or semi-urban
  • Access to farm staff can be difficult
  • Floods and storm impact - the BOP has an extensive coastline, low lying plains, active mountains and catchments that experience high rainfall intensity events. The impact of climate change on sea levels and storm events affects both episodic flood risk (water inundation, land area loss and sediment/gravel deposits) and water table changes (drainage and loss of grazeable land).

What does good look like?

By 2020 

• Farmers understand what it will take to ensure their farm businesses are well-placed to endure
• Farmers are actively experimenting with variations to their plans for their farm businesses 

By 2030 

• Farm businesses are thriving while achieving better environmental outcomes
• Farmers in BOP have a positive reputation for meeting their obligations and caring for their staff, animals and the environment  
• Farmers in BOP are well networked across, and valued by, sectors and communities

Outcome areas

• Farmers articulate their business and personal goals and actively plan to effect them

  Short Term 1-2 Years

  • The significance of ‘live’ goals in setting strategy and making farm businesses effective and enduring is understood
  • Critical assessment of progress toward farm business goals using benchmarking, farm data, and a Whole Farm Assessment approach (such as Farm Gauge) leads to awareness of opportunities for the farm business.

  Medium Term 2-3 years

  • Farmers that have completed Farm Gauge (or any WFA process) are able to implement options.
  • Goals can be articulated as a foundation for review of systems to farm under future regulations
  • Knowledge of Break-even Milk Price helps in surviving downturns without compromising standards for animals, people, or environment
  • Well informed, knowledgeable network of RP’s can provide good systems advice.

  Long Term 10 years

  • Revised systems implemented to deliver on sustainability and profit goals mean that dairy remains highest value land use.
  • Farmers have a pathway to achieve their goals that is relevant to their personal, biophysical and regulatory contexts, and are confident they are getting making progress along that pathway.

• Farmers explore changes to improve sustainability and all-round effectiveness

  Short Term 1-2 Years

  • Farmers are aware of the Workplace Action Plan
  • A framework to support farmers to achieve world leading animal care is in place
  • GHG partner farm has an effective Community of Interest and is implementing options to reduce impact on the environment
  • Farmers are aware of BOP on-farm research initiatives related to environmental impact
  • The Forages for Reduced Nitrate Leaching Maori monitor farm is known and field days well attended
  • Partner farms’ decisions and progress is being widely followed
  • Language of change is routinely employed in DairyNZ interactions with farmers and their advisers.

  Medium Term 2-3 years

  • 90% farms at good practice levels on regional priorities from the Workplace Action Plan
  • Farm practices relating to animal care on all farms are compliant with regulations
  • Language of change is routinely employed in the dairy sector
  • Partner farms’ decisions and progress are followed, and BOP farmers are adapting elements of their own systems
  • New BOP Focus Farm is established and exploring adaption of new systems.

  Long Term 10 years

  • BOP dairy farms are great workplaces
  • Farm practices on most farms result in world leading animal care
  • Farm practices on most farms are reducing their impact on the environment
  • Farmers are confident in the all-round effectiveness of their farms.

• Sectors and neighbours work together

  Short Term 1-2 Years

  • Existing successful cross-sector projects are identified
  • Facilitated networks exist across some key communities
  • Facilitated networks are developed across sectors
  • Opportunities to build cross-sector and community responses are identified in diverse catchments coming under limits.

  Medium Term 2-3 years

  • Mutual trust, transparency and good communications between different actors support the creation, adoption and scaling-up of innovations
  • Multi-enterprise farms are modelled as a possible endpoint for some farms to follow.

  Long Term 10 years

  • Mutual trust, transparency and good communications between different actors support the creation, adoption and scaling-up of innovations

• Farmers have viable opportunities to create thriving, diverse, integrated, and flexible businesses

  Short Term 1-2 Years

  • Facilitated networks exist across some key communities
  • Facilitated networks exist across sectors
  • Social learning processes are utilised by farmers and their advisers
  • BOP farmers are aware of Maori agribusinesses exploring land use change options
  • BOP farmers are following relevant partner farms’ decisions and progress.

  Medium Term 2-3 years

  • Well informed and knowledgeable network of RPs can advise on integrated businesses
  • Dairy farmers are widely involved in civil society, diverse networks, and cooperative initiatives
  • BOP farmers are following Maori agribusinesses exploring land use change options.

  Long Term 10 years

  • Longer-term adaptive management frameworks continue to be supported
  • Economies of scope are recognised and captured.

• BOP provides insights and learning opportunities to farmers in other regions

  Short Term 1-2 Years

  • Innovative entrepreneurial BOP activities help to create a new, more dynamic regional identity
  • NZ farmers and RPs watch Maori agribusiness co-innovation model

  Medium Term 2-3 years

  • NZ farmers and RPs recognize innovative entrepreneurial BOP activities as helping to create a new, more dynamic regional identity
  • Other NZ farmers adopt Maori agribusiness co-innovation model

  Long Term 10 years

  • BOP land management networks are invited to share their experience in other regions.

Priority 2 - Dairying in a better landscape

Context

• Improving environmental performance

  Improving environmental performance ranked highest in importance in the farmer perception survey and was tackled as the area of biggest opportunity at the farmer planning meeting. If DairyNZ can help make further significant inroads here, farmers will not only deal to a threat to their continuing operation, but by demonstrating good stewardship they should improve their standing in the community and generate increased pride in their sector and identity.

• Key imminent changes: Plan Changes 10, 9 and 12

  All of the BOP region, except where other Plans or Plan Changes have already come into effect, (e.g. Rotorua), will be affected by Plan Change 9.

  When PC9 becomes operative (appeals have been resolved), key requirements will be mandatory water meters for all uses on farm, consents for water use in the farm dairy, and farmers showing efficient water use.

  PC 10 enforces nutrient loss reductions in the Lake Rotorua Catchment, staged at 2022 and reaching an average of about 30% for N, with P mitigations, by 2032.

  PC 12 is still in development. Likely to require reductions in irrigation takes as consents are renewed, and farm plans to hold or reduce the 4 contaminants.

  Plan change activity related to both the wider Rotorua Lakes and Tauranga Harbour will commence in 2018 and 2019 respectively.

  Overall requirements are likely to include: monitored and efficient water use (especially irrigation), reduction of N and P in lake catchments, holding or reducing sediment, E. coli, N and P in estuary and harbour catchments.

• Maori land and co-governance

  Bay of Plenty's population is 28 percent Māori. Of the region’s land area, 38 percent is in Māori ownership, with 1800 Māori Land Trusts managing these assets. There are 35 iwi, 260 hapū and 224 marae located across the region.

  Iwi groups expect co-governance and this is being provided for the plan changes associated with water management areas. Settlement legislation requires a fundamental political shift to co-manage natural resources. Iwi have high aspirations for financial return on historically less developed land holdings and at the same time, iwi and hapu groups want to see dairy farmers and others demonstrate environmental protection.

  There is tension between rights to develop resources and equity of allocation. There is no overarching national guidance, therefore allocation of natural resources is being negotiated case by case, and is a key factor in Bay of Plenty that will affect dairy farmers. There is significant Maori owned area currently under forestry that could potentially be developed into pasture which has implications for both economic development and environmental outcomes.

• Science

  There is significant science capability and effort towards providing options for reducing N and P loss in the BOP lakes. The Forages for Reduced Nitrate Leaching is now working on forage-based technologies, with a Maori monitor farm in the Lake Rotorua catchment. P loss mitigations are being investigated through an SFF project and N loss under high rainfall is being validated on two soil types to use in Overseer.

  Hydrology in the Rotorua Lakes’ catchments is very complicated, with differences between surface and groundwater catchments, and interconnectivity between lakes.

  Nitrogen limits in Lake Rotorua have been fixed in law, based on science that is now questioned – P is more of a contributor to overall lake water quality than first postulated. This has undermined farmer confidence in the processes and in the requirements on them to reduce N so significantly.

• Geography

  The BOP has an extensive coastline, low lying plains, active mountains and catchments that experience high rainfall intensity events. The impact of climate change on sea levels and storm events affects both episodic flood risk (water inundation, land area loss and sediment/gravel deposits) and water table changes (drainage and loss of grazeable land).

• Greenhouse gas

  While processes in Lake Rotorua have been fraught, the relationship between DairyNZ, BOPRC and wider dairying stakeholders is healthy. A dairy stakeholder’s forum is utilised regularly to strengthen those relationships, check desired outcomes between the various parties, align messages, and to test farmer ‘applicability’ of BOPRC ideas.

  BOPRC are keen to support farmers willing to showcase efforts to reduce their environmental impact. They are also keen to fund or collaborate on targeted programmes to address water use efficiency.

• Public perception and tourism

  Public perception of dairy farmers in BOP is worse than other regions in the country – largely centred around issues with water quality (particularly in the lakes and estuaries), perception of farmer employers and animal welfare (shade and shelter).

  Farmers and RPs in the region see public perception as a significant issue to be resolved. The significance of tourism in the region has both a positive and negative impact on dairying – district authorities wish to retain dairy in the landscape (rather than have forestry dominate), but also have high demands on the impacts of dairy on regional resources favoured by tourists, such as lake water quality.

  Some dairy farmers are dabbling in tourism themselves by offering accommodation and/or farm experiences.

• Farm performance

  There is currently a large range in the financial performance of farms in the BOP region. Closing this gap will be important for maintaining the viability of businesses while achieving better environmental outcomes.

What does good look like?

By 2020

• The BOP Plan Change 9 is successfully implemented
• Other Plan Change processes include dairy input and collaboration with other sectors and parts of the community
• Farmers are making changes to meet environmental limits while maintaining viable businesses

By 2030

• Farmers in BOP have a positive reputation for caring for the environment and meeting their obligations
• Farm businesses are thriving while achieving better environmental outcomes
• BOP has localised examples of cross-sector and community collaboration that improve agreed all-round outcomes
• Water quality is meeting community expectations

Outcome areas

• Implementation of the Plan Change 9 process

  Short Term 1-2 Years

  • Farmers are confident in meeting their requirements and applying for consents under Plan Change 9
  • The need for water use efficiency and how to achieve that is understood
  • The capability and capacity of rural professionals and other service providers is sufficient to provide farmers with support in measuring water use and improving its efficiency

  Medium Term 2-3 years

  • Plan Change 9 is successfully implemented
  • Farmers are implementing efficient water use management techniques
  • New water use technologies are being explored to reduce water use on farm

  Long Term 10 years

  • Most farmers have implemented efficient water use management techniques
  • New water use technologies are being implemented that reduce water use on farm

• Progression of current and future Plan changes reflect dairy industry input and its contribution to the region

  Short Term 1-2 Years

  • An efficient and effective model for representing farmers in policy development is established
  • Farmers are active and supported in Freshwater Community groups (or equivalent forums)
  • Farmers and dairy industry supporters develop effective relationships across sectors and the wider community
  • There is a good working relationship between DairyNZ and BOPRC
  • Industry, farmers and BOPRC work collaboratively to ensure robust processes and information are utilised in formulation of targets, methods and rules

  Medium Term 2-3 years

  • Farmers are active and supported in Freshwater Community groups (or equivalent forums)
  • There is a good working relationship between DairyNZ and BOPRC
  • Farmers and dairy industry supporters maintain and utilise effective relationships across sectors and the wider community
  • Water quality, farm environmental and financial performance data is available and utilised for future policy decisions

  Long Term 10 years

  • Water quality, farm environmental and financial performance data is available and utilised for future policy decisions
  • Implementation of systems and options to match or precede regulation results in progress toward meeting the established water management area targets, while maintaining viable businesses.

• Farmers making required changes to meet environmental regulations or effective changes to meet environmental objectives and maintain or improve their viability

  Short Term 1-2 Years

  • Good farming practices are clarified for BOP
  • Farmers understand and are working toward meeting Good Farming Practice
  • The systems impacts and management requirements of existing and emerging options to manage nitrate leaching and GHG have been successfully modelled on 1 BOP and 2 Waikato farms
  • Farmers, extension, and rural professionals have access to regionally relevant information on the principles and options for managing the four water quality contaminants, GHGs, and for using water efficiently

  Medium Term 2-3 years

  • Farm practices on most farms are reducing their impact on the environment, while meeting people, animal and business goals

• Providing options in areas facing plan changes

  Short Term 1-2 Years

  • The systems’ impacts and management requirements of existing and emerging options to manage nitrate leaching and GHG have been successfully modelled on 2 BOP farms
  • Farmers, extension and rural professionals have access to regionally relevant information on the principles and options for managing the four water quality contaminants 

  Medium Term 2-3 years

  • Options developed through Forages for Reduced Nitrate Leaching can be accurately modelled in Overseer (by 2020)
  • The potential impact of new and existing options and their interactions is clear when applied to a farm system
  • The scale and cost of farm system (or land use) changes required to meet proposed water management area targets iteratively shapes the final targets and methods for meeting them
  • Catchment level cooperation and landscape planning is initiated (or can be show-cased) in at least one pilot catchment

  Long Term 10 years

  • Implementation of systems and options results in progress toward meeting the established water management area targets, while maintaining viable businesses.

• Farmers' stories about their place in the landscape

  Short Term 1-2 Years

  • The BOP general community are aware of the efforts being made by dairy farmers to improve water quality while contributing to their communities and the economy of the region

  Medium Term 2-3 years

  • The BOP general community respect the efforts being made by dairy farmers to improve water quality while contributing to their communities and the economy of the region

  Long Term 10 years

  • Farmers in BOP have a firm social licence
  • Water quality expectations of the community are met
  • Dairying is a valued element of BOP tourism

Priority 3 - Thriving Maori agribusiness

• Maori population, land and co-governance

  Bay of Plenty's population is 28 percent Māori. Of the region’s land area, 38 percent is in Māori ownership, with 1800 Māori Land Trusts managing these assets. There are 35 iwi, 260 hapū and 224 marae located across the region. BOP has the highest concentration of Maori dairy farm organisations in NZ (133 out of a total recorded in CRM of 308).  Iwi groups expect co-governance and this is being provided for the plan changes associated with water management areas. Settlement legislation requires a fundamental political shift to co-manage natural resources.

  Iwi have high aspirations for financial return on historically less developed land holdings and at the same time, iwi and hapu groups want to see dairy farmers and others demonstrate environmental protection. There is tension between rights to develop resources and equity of allocation. There is no overarching national guidance, therefore allocation of natural resources is being negotiated case by case, and is a key factor in Bay of Plenty that will affect dairy farmers. There is significant Maori owned area currently under forestry that could potentially be developed into pasture which has implications for both economic development and environmental outcomes. Unemployment rates are high in BOP, with Maori higher.

• Maori agribusinesses

  Maori dairy farmers often operate multiple enterprises and apply a very holistic view to the overall outcomes desired. Many would like to see their own young people working within their operations and developing capability, both within their enterprises and toward governance. Some Maori entities have highly developed, capable and dairy-savvy governance, however, many do not.

  Further the aims and ‘boundaries’ of Maori agribusinesses are sometimes disregarded by both their own beneficiaries and other locals, which can make achieving efficiency in even day to day operations challenging. Positive steps have been taken by some trusts to engage with people and processes that contribute to both their own and the industry’s capability and understanding (eg EBOP Maori cluster, FRNL NI Maori monitor farm) – this reflects also the inclusive nature of Maori leadership. A diverse BOP Maori trust is one of two North Island entities involved with the NZAGRC Farm Systems Modelling for GHG Reduction on Maori Farms project.

• Farm performance

  There is currently a large range in both the productivity and the financial performance of all farms in the BOP region, with many Maori dairy farms performing below the average in profitability measures.  Reporting, capability and structural constraints of Maori entities can place an additional cost burden on them. Closing the financial performance gap will be important for returning value to shareholders while achieving better social and environmental outcomes.

What does good look like?

Oct 2018

• A specific Māori Agribusiness project brief has been developed to expand on this theme and how outcomes will be achieved

By 2020

• Māori agribusinesses in BOP involved in co-innovation projects are sharing their experiences with the wider dairy community
• Māori dairy organisations are gathered into networks to exchange challenges and opportunities

By 2030

• As a group, BOP Māori dairy entities have improved their performance compared to all farms
• Māori dairy conversions are world class and contribute to fulfilling all the dairy industry strategy commitments
• Careers and progression for young Māori meet targets

Outcome areas

• Māori agribusinesses contribute to their people and local economy (people + business + story)

  Short Term 1-2 Years

  • Māori dairy organisations are networked to exchange challenges and opportunities

  Medium Term 2-3 years

  • Māori are sharing their experience of operating multiple enterprise businesses with other BOP land owners
  • Māori land-based businesses become even more adaptable, diverse and integrated

  Long Term 10 years

  • The number of Māori employed on dairy farms has increased
  • As a group, BOP Māori dairy entities have improved their competitiveness and resilience compared to all farms

• Maori agribusinesses are respected partners in co-innovation and effective relationship building

  Short Term 1-2 Years

  • Maori farms are engaged in co-innovation research, development and monitoring projects

  Medium Term 2-3 years

  • Māori farms are engaged in co-innovation research, development, and monitoring projects and are engaging with wider communities of interest/practice on their ‘topic’

  Long Term 10 years

  • Māori agribusinesses connect dairy to other sectors through mana, co-governance, and inclusive leadership of their multi-enterprise operations

• BOP iwi are supported in exploring and implementing dairy (and other) development opportunities

  Short Term 1-2 Years

  • Iwi, farmers and dairy industry supporters develop effective relationships across sectors and the wider community
  • DairyNZ understands what successful land management means for different iwi in BOP

  Medium Term 2-3 years

  • Water quality, farm environmental and financial performance data is available and utilised for future investment decisions
  • A demonstration farm project is evaluated
  • Māori agribusinesses demonstrate decision processes for integrating diverse land uses while operating a strong dairy business as a 'foundation enterprise'

  Long Term 10 years

  • Māori dairy conversions are world class and contribute to fulfilling all the dairy industry strategy commitments

• Maori agribusiness governors grow in capability and confidence to engage with their businesses, the community and the dairy sector

  Short Term 1-2 Years

  • EBOP cluster group pilot strengthens self-reliant governors who grow in capability and confidence, and who advocate such development

  Medium Term 2-3 years

  • BOP Māori agribusiness governors have developed a Farm Strategy and Farm Business plan

  Long Term 10 years

  • BOP Māori agribusiness governors are confident leading their farm businesses and engaging with the wider dairy sector