Revenue dropped from $143 million to $124.5 million, according to the Fieldays 2016 Economic Impact Report, authored by consulting economist Dr Warren Hughes and the University of Waikato Management School’s Institute of Business Research.
The report said equipment sales for Waikato firms at Fieldays dropped 9 per cent from $75 million in 2015 to $68 million. In the hospitality and accommodation sector, average visitor spending dropped from $303 in 2015 to $208 this year.
Fieldays chief executive Peter Nation said there were also probably more day-trippers to Fieldays this year, understandable given the low milk price at the time.
Nation said people spent money at Fieldays this year, but not necessarily on large capital items, such as a new effluent system or dairy shed. Some exhibitors told him they had record sales this year and quad bikes, trucks, cars, utes and clothing sold strongly.
«There was one clothing shop that closed down of the first day [of Fieldays] because they ran out of stock.»
Farmers bought items that were necessary for their business, such as a new set of gumboots, but there were probably fewer new dairy conversions signed up for this year, or dairy platforms purchased, he said.
Nationally, Fieldays generated $430 million in sales for New Zealand firms, up 9 per cent from 2015. The impact on GDP was calculated at $58 million for Waikato and $191 million for all of New Zealand.
Nation said this further reinforced the massive economic contribution Fieldays made to Waikato and New Zealand. Overall, he was extremely happy with the result.
The report was released on October 12 at a function at the Mystery Creek Events Centre.
Hughes said the results were better than expected, despite the dairy downturn.
«The number of exhibitor sites went up 4 per cent to 1507, and the number of gate entries also increased to 130,684, about 4 per cent higher than 2015,» the economist said.
This years gate entries were also the highest since 2008’s 131,629.
For every visitor through the gate, the 2016 Fieldays generated $3300 in sales revenue for New Zealand firms, including machinery and equipment sales.
In total, 60 per cent of Fieldays visitors purchased or planned to purchase equipment this year, compared to 53 per cent in 2015.
Fieldays helped generate 708 (full-time equivalent) new jobs for the Waikato, and a total of 2021 new jobs across all of New Zealand for 2016, up 13 per cent on last year.
«It’s not only about the goods and services sold during and after the event. It’s about the jobs created and the surrounding towns and cities that benefit hugely during Fieldays, as well as pre and post-event.»
Economists were also asked for the first time to put a value on the Fieldays brand. Hughes estimated this to be $380 million. He said Fieldays had a valuable brand identity which offered something positive and valuable to sponsors and exhibitors.
The Fieldays brand was «in a class of its own» compared with other regional events and «unique in this part of the world».
However, he felt the Government could do more to support Fieldays – including supporting roading and infrastructure and in publicising the event internationally.
Nation said that reinforced what was already known from travelling around the world and visiting other agricultural shows.
«The Fieldays brand is recognised both internationally and nationally as a world-class event.»
2017 Fieldays theme announced
Nation also announced the Fieldays theme for 2017 as ‘Leading Change.’
This theme was chosen because leadership within the primary industry was needed if New Zealand to reach the goal of doubling its primary exports by 2025.
It would also require 50,000 more employees, Nation said.
«To obtain this…we need strong leadership from the industry and Fieldays next year will again help with that thinking.»
Fieldays las led change over the past 48 years, through focusing on big issues, promoting important topics and investing in future leaders.
Fieldays had to keep creating a platform for people to lead changes in farming as technology made agriculture more sophisticated.
«That’s the challenge to our exhibitors and our partners – we need to help lead that change.»
Source: Stuff
Link: http://www.stuff.co.nz/business/farming/85254942/Low-dairy-payout-makes-a-dent-in-Waikato-Fieldays-sales