Billions to be made from new pastures

Billions of dollars could be added to farmers' profits if they focused more on pasture renewal, a new study reveals. The Pasture Renewal Charitable Trust this week suggested a switch in focus from animal improvements to pasture development was required to increase farm productivity reports The NBR. The trust commissioned Wellington-based company BERL (Business and Economic Research Ltd) to complete an economic analysis of the value of pasture to NZ's economy. BERL determined that pasture was worth $20.5 billion to NZ's gross domestic product (12.1% of GDP) and $10.2 billion to producers at the farm gate. Trust chairman Murray Willocks told NBR that the low cost of animal feed is NZ's economic edge, and it could be expanded on to the tune of billions of extra dollars each year. "All our dairying and beef and sheep farming operations are dependent on our pastures," Mr Willocks said. "As we look to economic growth, we should look at investment in pasture as a key contributor." Pasture renewal rates are the key. Mr Willocks said sheep and beef farms should renew 8% each year, while dairy farms should be looking at 12%. BERL's report determined these rates of pasture renewal would add $1.6 billion of value at the farm gate and about $3.1 billion to GDP. In addition, the report suggested more than 44,000 jobs would be created as result of the production boost.