BNZ supports farmers to make the most of future opportunities

Richard Bowman says that vertical integration models offer particular advantages to iwi farming businesses due to their scale, the long-term horizon of farming ownership and the unique brand and marketing opportunities that they intrinsically own.

"Vertical integration models such as processing or manufacturing primary products or developing their own brand and marketing and distributing products directly are becoming increasingly popular," he says.

"Heading up the value chain, either on their own, or in conjunction with existing industry participants, is a way for farming businesses to retain more of the value of the produce that they farm."

BNZ has recently developed two new roles to support farming businesses wishing to take advantage of these new opportunities. One provides specialist expertise to support the funding of vertically integrated farming businesses and a second supports those looking for funding or export opportunities in Asia. Together with the already established agribusiness banking capability, the new roles enhance BNZ's capability to support vertically integrated agricultural businesses with specialist expertise.

Bowman explains that the bank developed an integrated approach to enable a complete support package from farm gate to supermarket shelves for businesses looking to take advantage of the massive opportunities available to New Zealand primary industry.

"The new approach increases our already strong capability in this area given our relationship with National Australia Bank and its existing presence in Asia," says Bowman.

"By utilising expertise and global networks we can ensure New Zealand's farming businesses are in a strong position to make the most of the incredible export opportunities available."