Solutions could help tackle succession planning challenges in horticulture

Succession is a complex issue with opportunities to gain equity in the horticulture industry challenging. Industry dynamics, poor information availability and reliability, and people dynamics contribute to the situation.

Previous research has focused on the factors affecting succession and succession processes. Perrin Ag and Massey were contracted by the Ministry for Primary Industries to investigate a range of financial and business models suited to horticulture, both nationally and internationally, that could facilitate the incoming generation succeeding in horticulture businesses and building equity.

The study, Business Succession in the New Zealand Horticulture Industry released late last year, identified twenty-one models that could help pave the way for the next generation to build equity and assets.

Massey University Senior Lecturer Iona McCarthy says the research looked at a range of options suited to those with limited capital starting out through to those purchasing their own horticultural business. A family case example “story” was provided for each option.

“These models ranged from contracting and leasing through to options that require considerably more investment capital, such as ground leasing, equity partnerships and sole ownership. Most models are already used in New Zealand or overseas.”

The study also takes an in-depth look at eleven other possible models, including sole trader, long-term lease, ground lease, ground lease on Māori freehold land, vine rights, sharefarming, equity partnership, managed syndicate, joint venture, contracting, and cooperatives.

Equity partnerships, which are becoming increasingly popular for family succession, enable multiple owners, easy asset transfer, and structured governance and management.

The report also puts forward financial and industry recommendations that could help facilitate succession and remove barriers.

Perrin Ag Senior Consultant and Researcher Dr Liz Dooley and Ms McCarthy identified factors that could lead to increased and/or more effective succession, such as cost reduction, the availability of finance, better opportunity awareness, more opportunities available, better knowledge of models, and assistance with the process.

Dr Dooley says raising awareness of the options is important and that both industry and Government have a role to play in responding to the recommendations of the report.

“We recommended providing succession support and upskilling for growers and the incoming generation to increase knowledge and understanding. We hope the information identified in this report will also be valuable as part of this education process.  

“Better understanding may also encourage growers to provide opportunities, and the incoming generation to be proactive, which we have strongly encouraged.”

The report also recommends looking at on-line platforms for succession such as those used in the UK, Ireland, USA and Canada to match landowners who have no successors with people wanting to enter the industry.

The service could also incorporate mentoring support, technical assistance, networking opportunities and information on succession mechanisms and processes.

For more information, read the full report here.



Lee Matheson

Managing Director
Principal Consultant

B.Appl.Sc (Hons), FNZIPIM (Reg)

Lee came to agribusiness consultancy via the unlikely pathway of a suburban Wellington upbringing, an Honours degree in plant science and a six-year career in the financial markets. In his role as the firm’s MD, Lee doesn’t get out on-farm as much as he used to but makes the most of it when he does. While having swapped the paddock for the boardroom, Lee continues to provide advice in the areas of farm business strategy, farm system innovation, corporate governance, investment analysis and economic research.

Outside of Perrin Ag, Lee loves to spend his time coaching rugby, watching his three kids play sport and gardening with his wife Haidee.

“I love the challenge of empowering people in our primary sectors and the excitement of seeing clients achieving their aspirations. If we can encourage farmers to engage with their consumers, take a more active involvement in their supply chains and view their businesses through a wider lens, then I think our industries have a great future.”

Michael Booth

Senior Consultant

B.Com Af (FM)

Mike brings a wealth of agri-tech and dairy systems expertise to Perrin Ag. After graduating with a Bachelor of AgriCommerce from Massey, he started his career with DairyNZ as a consulting officer where he ran discussion groups and managed farm supervision.

He left DairyNZ to travel the world but within a few months Covid hit, the borders closed, and Mike and his wife Nikita returned home. Back in New Zealand, he took up a role managing DairyNZ’s monitor farms on the Hauraki Plains before joining Halter.

After finishing his OE, he returned home to live in Papamoa and joined the Perrin Ag team in February 2024.

“I’m not someone who likes to sit still and I like to be continually learning. I saw an opportunity with Perrin Ag. As a business their ethos is about continuous improvement and learning. There are always new and better ways of doing things and we need to be at the forefront of that for our clients.”

Abbey Dowd

Consultant

B.Ag.Sc (Hons), MNZIPIM

Abbey joined Perrin Ag in February 2023 as part of the firm’s graduate recruitment programme, Empower.

Abbey grew up surrounded by dairy farms in a close-knit community in South Waikato. She saw first-hand how local farmers supported her community, which is what inspired her to study at Lincoln University.

Growing up in a rural community Abbey has always been impressed by how much local farmers contribute to the community. She wanted to help give back to the industry and play a part in helping our primary sector continue to produce quality food in a sustainable way.

In 2022, Abbey spent the summer as an intern on one of New Zealand’s first commercial deer milking operations. Her Honours project was researching deer milk alongside other more traditional milking operations and assessing the deer milking industry’s future production possibilities.

“Growing up I didn’t live on a farm, but I always knew I wanted to work in the farming sector. I wanted a role where there was a balance between working on and off farm and where I could support farmers to get the best out of their businesses.”

Sam Gray

Consultant

Sam grew up on a dairy farm in the Far North. After graduating from the University of Otago in 2005 with an Honours degree in molecular biotechnology, he spent several years working in medical research in New Zealand and Scotland. Upon returning to New Zealand in 2012, he spent four seasons dairy farming in Northland before purchasing a 56 ha block in Taupо̄, where he was first exposed to farming under a nitrogen cap. Sam joined Perrin Ag in 2023 and brings his strong analytical skills that are grounded by a pragmatic approach to problem solving. Outside of farming and consultancy, you’ll likely find him fly fishing, hunting or snowboarding.

“A lot of farmers feel overwhelmed in the face of a rapidly changing regulatory landscape. I strive to help farmers understand what these environmental regulations mean for their business, and offer practical solutions that allow them to keep doing what they do best, whilst remaining compliant”.

Danni Armstrong

Finance administrator

Danni grew up on a life style block in Atiamuri and spent five seasons as a relief milker in the area. During this time, her full time roles were in various fields including the rental car, health care and marine industries. Danni has had a focus on administrative and accounting duties, but is also proficient in looking after customers especially well, social media and website operation, running a rental car fleet and the associated tasks like training, rosters, H&S and organising repairs! Danni joined Perrin Ag in May 2021, to be part of a business in an industry she is passionate about.

During her spare time Danni can be found reading a book with her cats or out enjoying the walks in Rotorua’s Redwoods.

“What motivates me each day is knowing that I will be challenged with a range of problem solving tasks. I love to see all the figures adding up and knowing that my role makes a difference to the team.”

Duncan Walker

Director
Principal Consultant

B.Appl.Sc, MNZIPIM (Reg)

Coming from a drystock and dairy farming background, Duncan has always been passionate about growing primary sector businesses. Whether it’s pastoral farming, forestry, horticulture or investments outside the farm gate, sustainably optimising business performance is Duncan’s passion. After graduating from Massey University with a Bachelor of Applied Science in Agribusiness, Duncan’s first opportunity to optimise a farm business was by undertaking a dairy conversion. Duncan project managed the conversion and continued to run the dairy farm for a further three years.

Since joining Perrin Ag in 2011 Duncan works with a wide range of clients including those ‘outside the farm gate’. With his strong background in investment analysis, business strategy and project management, Duncan is increasingly working with clients to analyse and integrate horticulture and forestry investments into their farm businesses.

“I enjoy helping clients navigate through the complexities of today’s operational, financial and environmental challenges. Seeing clients achieve their goals is very rewarding”

Lee Matheson

Managing Director
Principal Consultant

B.Appl.Sc (Hons), FNZIPIM (Reg)

Lee came to agribusiness consultancy via the unlikely pathway of a suburban Wellington upbringing, an Honours degree in plant science and a six-year career in the financial markets. In his role as the firm’s MD, Lee doesn’t get out on-farm as much as he used to but makes the most of it when he does. While having swapped the paddock for the boardroom, Lee continues to provide advice in the areas of farm business strategy, farm system innovation, corporate governance, investment analysis and economic research.

Outside of Perrin Ag, Lee loves to spend his time coaching rugby, watching his three kids play sport and gardening with his wife Haidee.

“I love the challenge of empowering people in our primary sectors and the excitement of seeing clients achieving their aspirations.  If we can encourage farmers to engage with their consumers, take a more active involvement in their supply chains and view their businesses through a wider lens, then I think our industries have a great future.”