Dear Valued AgriSmart Customers,
As we wrap up 2024, I’d like to share some key highlights from the worlds we live in and how they’ve impacted our business at AgriSmart.
Dairy Sector
It is heartening to see that the dairy sector, New Zealand’s top export earner, is showing signs of recovery amid improving dairy commodity prices and increased demand from China.
Fonterra’s updated forecast mid-point Farmgate Milk Price of $10.00 per kgMS offers optimism, particularly with DairyNZ’s breakeven milk price at $8.09. While we know weather and regulatory challenges are still a challenge, lower interest rates will be helping profitability.
Horticulture Sector
The horticulture sector demonstrated remarkable resilience in 2024, despite facing numerous challenges including Cyclone Gabrielle, labour shortages, and increasing compliance costs.
New Zealand’s horticulture industry is a major contributor to our economy. The value of the industry has increased to $7.48bn in 2023/2024 year up from $7.06bn in export revenue in 2023.
Labour availability improved during the 2023/2024 season; however, affordability remained a concern. The changes to the Recognised Seasonal Employer (RSE) scheme, ensuring it meets the needs of growers and Pacific partners to maintain a sustainable seasonal workforce was a welcome relief for growers.
Impact on AgriSmart
These sector developments have significantly influenced our operations at AgriSmart. The dairy sector’s increased optimism has led to more demand for our precision timesheet and payroll solutions, as farmers seek to optimise their workforce costs. We’ve seen a particular uptick in interest in digital onboarding and contracts as the potential for growth becomes a reality.
In the horticulture sector, the resilience and growth potential have driven innovation in our product offerings. We’ve expanded our suite of tools for orchard management, including bin ticketing and optimised job costings. These have been particularly well-received by our kiwifruit and apple grower customers as they seek to make every dollar count while navigating the challenges of climate variability.
Internally we’ve acknowledged the huge opportunity that Australia means to us and sent two of our team to establish a beachhead in Melbourne. They’re working with existing and future clients, and we’ve found a niche with apple growers in particular.
We’ve also invested in redesigning our website – thank you to those who helped and provided testimonials – reflecting all the changes to the product and what you’ve told us will mean the most to potential new customers.
We committed to a truly exciting partnership opportunity with the national Dairy Women’s Network to support their community with our software, and we repackaged our farming product into three easy tiers so that more of AgriSmart could be accessed by more of you.
Looking Ahead
As we move into 2025, we remain committed to supporting both the dairy and horticulture sectors with cutting-edge agritech solutions.
The anticipated NZ/EU Free Trade Agreement and existing trade agreements are expected to create new export opportunities, particularly for the horticulture sector. So, we’ll continue to talk with customers about the potential for enhanced features to help our customers meet international quality standards and optimise their export processes.
While 2024 presented its share of challenges, it also showcased the resilience and adaptability of New Zealand’s agricultural sector.
At AgriSmart, we remain dedicated to innovating and providing the tools you need to thrive in this dynamic environment.
Thank you for your continued trust in us. Here’s to a prosperous 2025!
Sincerely,
Imran Raza
CEO, AgriSmart
