In this episode of RaboTalk Growing our Future episode, host Katie Rodwell talks with Dr Victoria Hatton, CEO of FoodHQ, about why New Zealand’s food and fibre sector is still running on a 100-year-old “commodity operating system” despite our premium reputation, driving export growth through volume rather than value and leaving farmers exposed to competitors who can simply produce it cheaper.

Victoria argues the real opportunity is playing the long game in premium markets by building what customers really want not just shipping what we produce, with fast-growing potential in functional foods and targeted nutrition as consumer needs shift toward “food as medicine” and nutrient-dense products.

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Show Notes

In this episode, Katie speaks with Dr. Victoria Hatton, CEO of FoodHQ, in a deep dive into the ‘commodity versus premium’ debate currently facing New Zealand’s food and fibre sector.

Victoria shares insights from her extensive career to explain why New Zealand remains stuck in a volume-driven operating system despite our world-class reputation.

The Commodity Operating System

A key tension exists: New Zealand is a premium country operating on a 100-year-old commodity system. Victoria argues that our recent export growth has come from added volume, not added value. As long as farmers remain price-takers feeding a bulk ingredient engine (like milk powder), we remain vulnerable to competitors who can simply produce it cheaper.

The Long Game in Premium Markets

Shifting to premium isn’t a quick fix; it requires ‘dogged determination’. Victoria cites Quality New Zealand in India as an example of a 10-year journey to build a market. She highlights the need for empathy for the customer - understanding exactly what they want rather than just shipping what we produce.

Functional Foods and the Future Consumer

The consumer of 2030 isn't just looking for "milk" or "meat." There is a massive opportunity in:

• Functional Foods: High-protein whey, amino acids for skincare, and "food as medicine."
• Targeted Nutrition: Serving an aging population or consumers on GLP-1 (weight-loss) medications who want smaller, highly nutrient-dense portions.

Traceability: Data as Your Best Marketing Tool

While measuring on-farm metrics can feel like a political burden, Victoria views it as the proof of provenance. Consistent, scientifically robust data is what allows New Zealand to tell a unified story at the trade table. It’s the difference between a "clean green" claim and a proven, high-value brand.

Capturing Your Fair Share

The conversation addresses the frustration that value isn't always returned to the farm gate. Victoria points to direct-to-consumer success stories like Hamish Best (beef and lamb) and Honest Wolf (wool) as examples of how producers can bypass processors to capture premium margins.

The Risk of Staying Volume-Focused

Relying on volume carries significant risks:

• Economic Vulnerability: Dependence on volatile commodity prices.
• Market Access: Global regulations are hardwiring sustainability into import rules.
• Social License: The risk of asking too much of our land and water for a low-margin return.

Final Advice: Don’t Fear the Measure

Victoria’s parting message to farmers is one of optimism: "Don’t be afraid to measure and record what you’re doing." Measurement is a cheap way to market your product, benchmark your greatness, and ensure the New Zealand story remains credible on the world stage.