Why boards must rethink what growth means

Governing for growth in the primary sector no longer means producing more – it means producing smarter. For Canterbury director and equity farmer Jessie Chan MNZM, CFInstD, growth today is defined by value, resilience and reputation rather than sheer volume.

Chan – one of Aotearoa New Zealand’s most respected rural governance leaders – grew up in Palmerston North, working alongside her sawmiller father on farms, and doing GST and PAYE at just 14.

At 17, she was hired into Fonterra’s research lab, completed an honours degree in animal science, led a Federated Farmers policy team, and later moved to Canterbury to sharemilk, eventually running the lease of a 420-hectare operation.

Today she sits on the boards of NZ Pork, AgriZero, Amua and Tupu Tonu, while remaining an equity partner in a South Island dairy farm. It is a cross-sector grounding that gives her a rare vantage point on what governing for growth now requires.

Chan says the primary sector has shifted from “high volume, low value” to a world where success depends on innovation – in farm systems, processing, science, environmental stewardship and how New Zealand positions its story globally.

“We used to talk about growing the pie,” she says. “Now it’s about keeping the pie roughly the same size but shifting more slices into higher-value areas.”

For directors, that means governing for customer relevance – often B2B customers such as global food companies, retailers and ingredient buyers – and ensuring organisations can innovate at speed. It also means believing that globally competitive companies can grow from regional New Zealand, not only the main centres.

Boards need grit and an opportunity mindset

Chan is clear directors cannot afford to retreat into compliance mode. “Good directors need grit and commitment if we are going to grow,” she says. “There’s a risk we focus so much on compliance and risk mitigation that we miss the opportunities.”

Her priorities include:

• • Setting clear organisational values and being unapologetically commercial – it is possible to have a focus on both
  • Maintaining strong industry knowledge at the board table
  • Understanding the organisation’s ‘why’ – whether farmer-owned cooperative, Māori-owned entity or private enterprise
  • Seeking opportunity even in volatility

“The primary sector also needs to genuinely understand Te Tiriti – not just from a business perspective but from a values perspective, so we can all prosper.”

Bringing science into the boardroom

Chan describes science as essential but often poorly understood by boards. “We need science, technology, business acumen and values-based thinking to intersect.”

Her ‘Socratic’ approach to governance includes:

• • Clarifying exactly what decision needs to be made
  • Breaking complex issues into simple questions
  • Bringing in experts who can make the science accessible
  • Setting milestones for iterative decision-making
  • Being explicit about trade-offs

“Science evolves. Values don’t really change. You need curiosity and structure,” she says.

Tactical and strategic – at the same time

Rural boards face constant volatility in weather, regulation and markets. Chan argues that boards must be able to hold both long-term strategy and short-term survival in view simultaneously.

“You need tactical and strategic skills in the boardroom. It’s possible – and necessary – to do both.”

Her own farm made a major shift to a fully self-contained system in the lowest milk-price year. “You can’t control the weather or global commodity prices, but you can design systems resilient to both.”

Climate, markets and finding common ground

Chan’s climate position is pragmatic: engage with markets, not extremes.

“My job isn’t to influence people’s views about climate change. Each individual will hold their own view. But there are some facts that impact our rural sector that we can work on.

“If we don’t show we are reducing emissions, we put access to markets at risk,” says Chan, pointing to the growing weight of climate provisions in trade agreements and the expectations of global food companies.

For boards, that means taking a science-based approach, understanding real costs, and backing solutions that deliver environmental, animal welfare and commercial results.

Te Tiriti, demography and licence to operate

By 2050 more than half of New Zealand’s population is expected to be Māori, Pacific or Asian.

“Understanding different value systems, connecting urban and rural, and honouring Te Tiriti – this is how we maintain our licence to operate and our national identity,” says Chan.

She is blunt about diversity practices that miss the point.

“I don’t want to be appointed because someone wants a rural woman of colour. I want to be appointed because of the skills I bring.”

For boards, that means avoiding box-ticking or “shoulder-tapping the usual suspects”, recruiting genuinely for capability, and creating an environment where diverse voices can influence decision-making, not simply sit at the table.

Chan also reminds directors that many farming SMEs are already practising solid governance – they simply don’t call it that: disciplined financial management, environmental responsibility, people care and long-term planning. Structured governance training, she says, could help formalise this strength.

Practical governance checklist

From her farming and boardroom experience, Chan’s essentials are:

• • Know your values and non-negotiables
  • Understand your strengths, weaknesses and risk profile
  • Focus on what you can control
  • Know your numbers
  • Do your own research – don’t rely on assumptions
  • Take funders and partners with you
  • Stay curious and keep questioning

Asked for a final message to boards, Chan is unequivocal: “Think globally and locally. Where will our produce go? How do we give our farmers confidence to invest? How do we support our rural communities?

“Food will always be central to society. The governance task is to harness that in ways that provide profit and give back – to the whenua, the awa and to the people.”