These are exciting but also challenging times for New Zealand agri-food and fibre.
At a time when demand and prices for NZ food are at near-record highs the mood among farmers is subdued with new environmental policies being developed and fears about the impact from the brinksmanship being played out in the complex world of international trade.
So, how should farmers and growers plan for the future in the face of mixed signals from markets and policy makers?
I suggest doing as we have always done: face the challenges, develop solutions and prove once again the reputation of NZ for determination and innovation in resolving complex problems is well founded.
It is important to recognise NZ farmers are running some of the most nutrient and carbon efficient businesses in the world of food production.
These achievements have been hard earned over many decades, however, there is no time for contemplation.
Others are catching up and claiming to be better than NZ in a number of environmental stewardship areas where NZ has traditionally led the field.
Many of the concerns relate to the pace of transition to new environmental rules with regard to land use, water quality, nutrient management and climate change policy.
I contend new Government policy in these areas is actually behind the rapidly growing consumer demand for environmentally and climate-friendly food.
We must be sensible about transition and ensure farmers and rural communities continue to prosper but in many parts of NZ the policies of the last 30 years have incentivised land intensification, which has challenged the environmental ceiling.
As we chase higher-value food opportunities from global markets the international trading system is facing one of the biggest challenges in its history. For a small country that depends on international markets for a living any disruption that threatens to interfere in the pathway to our consumers is a real concern.
The trade war between the United States and China and the impasse at the World Trade Organisation are two geopolitical events that go well beyond discussions about trade but the implications for NZ could be severe.
The spillover of these actions and a creeping tide of protectionism, in the form of nationalist and inward-looking policies, is challenging the global value chain model that is the future of food.
Among what appear to be chaotic times for international trade we are quietly getting on with efforts to secure our future.
We do not have the size and scale to muscle our way into the geopolitical areas under debate.
However, we are always sought out as an innovative, independent and constructive nation that can provide thoughtful leadership and ideas to help address these challenging issues. Armed with some of the world’s best negotiators and strategic trade thinkers, NZ is recognised as a world leader in trade diplomacy, which adds to our global reputation.
The good news for us is that in spite of the real risks to international trade we are seeing unprecedented demand for nearly all of our agri-food and fibre exports.
The quality and integrity of our products is highly valued but it is the values of NZ and the people who reside here that now resonate strongly with consumers. The internet and social media provide a window through which personal connections are made, values are shared and value is created.
The next iteration of our story needs to focus on telling this in a compelling way.
As we look to a future where demand for food is strongly anchored to the way food is produced and the values of the people producing it, NZ’s future looks exciting and assured.
However, we cannot be complacent about growing consumer demands for food that prioritise higher levels of environmental stewardship.
Consumers have a choice and they are increasingly exercising it where products fail to meet their expectations.
I have complete confidence the NZ agri-food and fibre sector will tackle head-on the domestic challenge of improving environmental stewardship and be able to capitalise on the exciting times ahead.
