Rural contractors focus on costs in inflationary times

Rural contractors will gather at five roadshows in August to focus on cost volatility and drivers as the industry seeks to remain viable during the highest levels of inflation in recent memory

RCNZ CEO Andrew Olsen and Federated Farmers CEO Terry Copeland discussed pricing mechanisms at July’s Primary Industry Summit

Andrew Olsen, CEO of Rural Contractors NZ, says his organisation has been working constructively with Federated Farmers over recent months to develop an accord on cost volatility that works for both contractors and farmers.

"It’s timely to talk about cost shocks in the sector. Contractors and farmers are well aware that cost is entering the system, and we want to make sure there’s both a legal and responsible way for both sides to transparently meet this challenge.

"This is an opportunity to refresh contracts that may have served us well but need a few tweaks to deal with the pressures of today. It’s vital to the food and fibre sector that we get this right and that farmers, growers, and contractors are all aware of and honour their contractual obligations."

NZX’s Head of Insight, Julia Jones has been tasked with bringing together indices that properly track costs in fuel, fertiliser, and agrichemicals. This will help establish an independent measure based on offshore pricing changes as they rise and fall.

"Julia will also be the keynote speaker at our five RCNZ roadshows and is in a perfect position to talk about and discuss costs in a workshop environment," says Andrew.

The RCNZ roadshows start in Palmerston North on 8 August, with sessions in Whangarei on 9 August, Hamilton on 10 August, Gore on 24 August, and Christchurch on 25 August. The roadshows will include presentations from WorkSafe and Growsafe on best practices in health and safety and agrichemical handling.

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