Christoph Schumacher

If you look, for example, at the dairy sector, there's only so much milk you can squeeze out of a cow and we've gotten pretty, pretty good at this.

There's not many productivity gains to be achieved.

The same in the whole primary sector.

You can't easily grow more apple or kiwi fruit, and we can't let more people into the country of tourism without destroying tourism.

what we have and why people would come and visit New Zealand.

So part of the issue is that we are focusing on sectors where productivity gains are low.

These are things that are not easily scalable.

Think of somebody who develops a software program.

You can just scale it up easily and take it to the world.

You can't scale up producing more milk very easily.

It's not a scalable kind of operation when we already reached quite high levels of efficiency in the sector.

So the productivity growth is just slow.

We simply would need to change our mindset to...

more innovative and focus on sectors that are easily scalable and where there is more productivity growth still available.

But that's not a quick process.

Because if you think of New Zealand, there's a strong history of what we do.

That's not easily changed.

And we had it very good for a long time.

And that's made us a bit complacent.

And now it's difficult to change the mindset.