You already know this: New Zealand punches way above its weight in agriculture.
We are a country of 5 million, yet we grow enough food to feed 40 million.
When you think about it, this is an incredible accomplishment. It’s one we should be proud of, and rightfully so.
However, is there a dark side to this success?
Why, yes, of course there is.
You see, over the years, our farmers have found themselves increasingly burdened — perhaps even increasingly strangled — by regulatory compliance. Indeed, the rules have gotten more oppressive. Costs keep rising. Roadblocks keep coming.
Still, our farmers continue to fight the good fight. They continue to adapt, improvise, and overcome. They have shown a resilience that’s second to none.
Source: Visual Capitalist
Yes, you could argue that our farmers are our unsung heroes. However, for them, the stakes have never been higher. Here’s why:
- Among developed nations, New Zealand stands almost uniquely alone in having a high reliance on agricultural exports. 77% of our merchandise income comes from this sector.
- This is striking when you consider that only 6% of our workforce actually works in agriculture. In other words, our farmers contribute disproportionately to New Zealand’s success as a trading nation.
Unfortunately, when it comes to the issue of productivity, there appears to be a surprising disconnect between perception and reality:
- For example, our national news continues to be obsessed about the price movements of our real-estate sector. A lot of airtime and column inches have been devoted to this very subject.
- Yes, it’s true that over 57% of total family assets in New Zealand are locked up in residential housing. But while houses are perceived as a secure long-term investment, the truth is that they are relatively static. You cannot export them. You cannot create new markets with them. You cannot increase efficiency with them.
- Frankly, you could argue that New Zealand’s farmers — as well as other productive people — are not given sufficient attention and care. This is despite the fact that they are actually doing the lion’s share of work in our economy.
What are the consequences of this? Well, the consequences are huge. Here’s a sobering reality check:
- According to the IMD World Competitiveness Ranking for 2024, New Zealand is currently ranked 32 out of 67 countries.
- Yes, on the table, we’re ahead of Estonia and Malaysia. However, we sit directly behind France and Lithuania.
- So, when it comes to global competitiveness, we’re somewhere in the middle of the pack. Not too bad, but not too good either. Ideally, we should actually be aiming to be in the top 20.
In a previous Quantum Wealth Report, I talked about the potential for New Zealand to use One Big Idea to double its income as quickly as possible. My suggestion about wealth-building wasn’t politically correct, but I made no apologies for it:
- So, now, I want to tackle another Big Idea — what can New Zealand do to support its productive people and double its competitiveness as quickly as possible?
- Well, perhaps we can gain some insight by looking at a role model. Perhaps we can study the fascinating journey of the most competitive nation in the world…
Your first Quantum Wealth Report is waiting for you:
