Economic and financial analysis

We offer specialist economic research and financial analysis services, with experience in the agribusiness, forestry, nutraceutical and health sectors as well as knowledge of special economic zones. Our work in this field has included economic analyses of water quality interventions in New Zealand, a financial viability assessment of a meat by-products plant and reviewing the rural credit policies and operations of New Zealand’s main rural lenders.

Investment analysis for an established forest

Nimmo-Bell & Associates provided detailed investment analysis, including financial forecasts and valuation of a forestry grant, for an established forest on the East Coast of New Zealand in support of a syndication process. This included advising our client on relevant issues and management options, bringing credibility to the overall project.

Economic evaluation of research and development projects

We worked with the former New Zealand Dairy Board and four major research organisations to develop a framework for the economic evaluation of research and development projects in the New Zealand dairy industry. This framework went on to be used throughout New Zealand. The framework was based on traditional cost-benefit analysis, incorporating risk simulation. It was tested on five projects before being applied throughout the country.

Financial analysis of the deer industry

We were involved in ongoing financial analysis of the New Zealand deer industry for a client, which included comparing deer farming with other pastoral production options and reviewing economic and financial aspects of the industry’s international marketing programmes. Our client used this information to model deer industry production and growth.

Waikato River Independent Scoping Study

Nimmo-Bell & Associates led the economic analysis for the Waikato River Independent Scoping Study in New Zealand, under sub-contract to the National Institute of Water and Atmospheric Research. Our analysis provided a robust costing of proposed actions to restore the health and wellbeing of the river over a 30-year period. We also canvassed issues such as climate change and valuing the non-market benefits of a river clean-up. The aim was to assist the river’s future co-management body with decisions around allocating a $310 million clean-up fund to maximise net social benefit. The project was funded by the Ministry for the Environment.

Fisheries management

Our work in this field includes economic analysis of a new government fisheries management system in New Zealand, such as minimising risks to the Crown, minimising Crown funding, ensuring contestability and harmonising stakeholder relationships. We were also hired to analyse the effectiveness of fisheries compliance in New Zealand, which included estimating illegal fish flows in central New Zealand and conducting a survey to gather resource user perceptions.

Valuing freshwater outcomes

Nimmo-Bell & Associates was a member of a multidisciplinary team developing an integrated valuation and monitoring framework for improved freshwater outcomes in Tasman District. consultant’s responsibilities were to lead the elicitation and assessment of freshwater value sets, assist in the development of a methodology to derive total economic value for changes to freshwater and to assist in refining freshwater management decision-making tools. This was a three-year project and Nimmo-Bell & Associates was sub-contracted to Landcare Research.

Water quality intervention packages

Nimmo-Bell & Associates was responsible for the economic aspects of intervention packages for improving Lake Rotorua. This work was done for Beca, a company contracted by the Bay of Plenty Regional Council. Specific responsibilities included the development of fully-costed options for land use changes to reduce nutrients from entering the lake from rural land use. Our consultants also developed intervention packages over three different timeframes to maximise the reduction in nutrients for best impact and value for money.

Reducing nitrogen loss into sensitive waterways

Nimmo-Bell & Associates worked with Horizons Regional Council and DairyNZ to generate assumptions for three scenarios around different implementation strategies for reducing nitrogen loss into the Manawatu-Wanganui region’s sensitive waterways. Our economic analysis showed it was possible to reduce nitrogen loss significantly while retaining the profitability of dairy farms and viability of rural communities.

Kapiti water supply

We led the economic analysis of options to secure the long-term supply of potable water for the Kapiti District. Our analysis included evaluating the cost effectiveness of a diverse range of potential solutions – ranging from dams to aquifer recharge and storage. Our inputs included the assessment of non-market values as well as quantitative analysis of the risks associated with the different options using an in-house methodology.

Financial viability of a meat by-products plant

We used our in-house quantitative risk analysis tool to assess the financial viability of a meat by-products plant in New Zealand. Our work included estimating the net benefits of a joint venture to supply raw material, process and export a high-value added meat product. Our analysis showed that reducing the scale of the proposed plant and utilising it more effectively would likely result in excellent returns.

Evaluation of automation programme

We prepared a business case and Cabinet paper for a $100 million automation programme proposed by Land Information New Zealand, to allow the electronic transaction of survey and title information. Key inputs included thorough fiscal and economic cost benefit analysis and the development of funding options.

Livestock sector performance

We used an in-house economic farm surplus model to assess the relative performance of the New Zealand deer breeding, dairy and sheep and beef sectors over several years. These updates were provided to the New Zealand Game Industry Board for use in annual reporting.