Having just attended the International Farm Management Conference in Methven, I am feeling curiously optimistic about the volatile market place we are now trading our agricultural products in.

According to Thos Gieskes, CEO, Rabobank, tight world dairy stocks are going to continue to enable higher returns for dairy products for the next three to five years; sugar and grains are replacing beef production in Brazil and the Chinese appetite for meat and dairy protein will continue to increase at the expense of importing cattle feeds from other countries. However, all markets are going to be subject to volatility due to climate and oil supplies in the main.

This news was followed by a presentation by John Young, CEO, Meadow Mushrooms, whose impassioned speech about the value chain and how important it was to be the lowest cost producer, not the cheapest supplier, to ensure success as a food producer. Knowing what your customer wants and being able to deliver allows you to be in the business of farming - not farming for a business.

I think the distinction between being the lowest cost and being in the business of farming is vital for those of us who produce food – milk, meat, fruit, and vegetables.  We need to be able to recognise our position in the value chain which is so often forgotten as we perceive the chain to start once it reaches the processor. However , if we, the producers, did not exist there would be no value chain.

So how has this resulted in my optimism? I truly believe that with some redirection, New Zealand farmers can regain a low cost production base and embrace the values of exemplary animal welfare and environmental management practices. These are not hard to achieve yet are vital to our survival as a geographically challenged nation. Transportation to market will always be a challenge for us to master.

We have a story to sell that backs our food with integrity and trust. And we have people passionate about producing this food in an environment that is natural and wholesome. Let’s become more proactive in using this story as a point of difference that sets us apart from the rest of the world.

This is a strategy that I can - and do - buy into.