1. FACTORS THAT AFFECT PROFITABILITY

2. PHYSICAL AND CLIMATIC FACTORS

3. Physical Factors Write down 4 examples of physical factors that can impact on Farm Profitability

4. Climatic Factors Write down 5 examples of climatic factors that can impact on farm profitability. Get out a COW and go to the sites mentioned in the next slide. Read each article and write down the major impacts for the farmer and for our economy.

5. DROUGHT http://www.stuff.co.nz/business/farming/sheep/ 8492698/Drought-likely-to-clip-wool-haul http://www.stuff.co.nz/business/farming/sheep/ 8492698/Drought-likely-to-clip-wool-haul http://www.stuff.co.nz/waikato- times/business/8483170/Drought-looms-over- good-Fonterra-half-year-results http://www.stuff.co.nz/waikato- times/business/8483170/Drought-looms-over- good-Fonterra-half-year-results http://www.nzherald.co.nz/business/news/articl e.cfm?c_id=3&objectid=10873587 http://www.nzherald.co.nz/business/news/articl e.cfm?c_id=3&objectid=10873587 http://www.rotoruadailypost.co.nz/news/inside- story-farm-systems-have-to-adapt/1795575/ http://www.rotoruadailypost.co.nz/news/inside- story-farm-systems-have-to-adapt/1795575/

6. SOCIAL FACTORS What say does society have on primary production in NZ?

7. http://www.nait.co.nz/ http://www.foodsafety.govt.nz/

8. TECHNOLOGICAL FACTORS

9. Technological changes What are they? How can they be measured? How has technology changed the Meat Industry? Can you draw up a timeline to show the changes in the meat industry from pre refrigeration to now?

10. Interesting sites http://www.scott.co.nz/meat- processing/lamb/lamb-processing http://www.scott.co.nz/meat- processing/lamb/lamb-processing http://www.teara.govt.nz/mi/agricultural- processing-industries/page-8 http://www.teara.govt.nz/mi/agricultural- processing-industries/page-8 http://www.geap.co.nz/ http://www.techhistory.co.nz http://www.biotechlearn.org.nz/focus_stories /wool_innovations/developing_natural_easy_ care_fabrics http://www.biotechlearn.org.nz/focus_stories /wool_innovations/developing_natural_easy_ care_fabrics

12. ECONOMIC FACTORS

13. Economic Factors New Zealand is the furthermost country from the rest of the world ( i.e. the Northern Hemisphere) And is quite small This means that as a country, our economy depends on the needs and wants of other countries

14. When the New Zealand dollar is valued highly against the US dollar then: – Imports are cheaper into the country. This is because we can get more for our money. – Exporters don’t get as much money as the people who buy their products can not buy as much, so they don’t. A High New Zealand Dollar

15. A Low New Zealand Dollar When the New Zealand dollar is valued low against the US dollar then: – Imports are more expensive to get into the country. This is because we get less for our money. – Exporters earn more as the people who buy their products can buy more, so they do.

16. Question What is the current exchange rate? US dollars Australian dollars British pound Japanese yen Euro

17. Question Visit the sites in the next slide and read any relevant information.

18. http://en.wikipedia.org/wiki/Exchange_rate http://www.infometrics.co.nz/Forecasting/10 086/9011/What-is-an-exchange-rate http://www.infometrics.co.nz/Forecasting/10 086/9011/What-is-an-exchange-rate

19. POLITICAL FACTORS

20. Political factors Tariffs Quota Treaties

21. http://www.teara.govt.nz/en/1966/tariffs http://en.wikipedia.org/wiki/Tariff http://www.infometrics.co.nz/Forecasting/10 086/9011/What-is-an-exchange-rate http://www.infometrics.co.nz/Forecasting/10 086/9011/What-is-an-exchange-rate http://www.investopedia.com/terms/t/trades anction.asp http://www.investopedia.com/terms/t/trades anction.asp http://www.businessdictionary.com/definition /export-quota.html http://www.businessdictionary.com/definition /export-quota.html

22. http://www.nzmeatboard.org/ http://www.foodsafety.govt.nz/industry/secto rs/dairy/exporting/QMS/ http://www.foodsafety.govt.nz/industry/secto rs/dairy/exporting/QMS/

23. CULTURAL FACTORS

24. What cultural factors from our export markets impact on our primary production? Halal slaughter – for Muslim countries Christmas and Easter lamb for the UK Marbled beef – for Japan Deer velvet – for China What others are there?

25. Read through the following news articles, websites etc to get an understanding of some of the cultural factors that affect the profitability of New Zealand Primary Production

26. Halal slaughter http://www.teara.govt.nz/en/photograph/192 26/halal-slaughter http://www.teara.govt.nz/en/photograph/192 26/halal-slaughter http://www.beeflambnz.co.nz/index.pl?page= faq&m=458 http://www.beeflambnz.co.nz/index.pl?page= faq&m=458 http://www.nzherald.co.nz/business/news/art icle.cfm?c_id=3&objectid=10816826 http://www.nzherald.co.nz/business/news/art icle.cfm?c_id=3&objectid=10816826 http://www.stuff.co.nz/waikato- times/opinion/letters/6216191/Letter-Halal- slaughter-criticism http://www.stuff.co.nz/waikato- times/opinion/letters/6216191/Letter-Halal- slaughter-criticism

27. Lamb exports http://www.eblex.org.uk/markets/news-nz- lamb-exports-higher.aspx http://www.eblex.org.uk/markets/news-nz- lamb-exports-higher.aspx http://www.mla.com.au/Prices-and- markets/Market-news/Strong-start-for-NZ- lamb-export-season http://www.mla.com.au/Prices-and- markets/Market-news/Strong-start-for-NZ- lamb-export-season http://www.meattradenewsdaily.co.uk/news/ 211112/nz___lamb_season_off_to_a_good_st art_.aspx http://www.meattradenewsdaily.co.uk/news/ 211112/nz___lamb_season_off_to_a_good_st art_.aspx

28. Marbled Beef http://en.wikipedia.org/wiki/Marbled_meat http://www.odt.co.nz/news/business/217333 /nz-marbled-beef-tempt-world http://www.odt.co.nz/news/business/217333 /nz-marbled-beef-tempt-world http://straightfurrow.farmonline.co.nz/news/ nationalrural/agribusiness/general-news/24- million-investment-for-highvalue-marbled- beef/2617523.aspx http://straightfurrow.farmonline.co.nz/news/ nationalrural/agribusiness/general-news/24- million-investment-for-highvalue-marbled- beef/2617523.aspx

29. Deer velvet http://www.velvet.org.nz/ http://www.deervelvetnewzealand.co.nz/ http://www.interest.co.nz/rural/resources/tre nds/velvet-trends http://www.interest.co.nz/rural/resources/tre nds/velvet-trends