On the other hand, there is deep concern across the sector that farmers are not receiving credit for the hard work being done in the environmental sustainability space and, perhaps more concerning, we are being asked to shoulder an unfair share of the burden of addressing climate change. Primary Sector Council chairman Lain Jager explains.
It is in this context the Primary Sector Council set up by Agriculture Minister Damien O’Connor in April last year has been talking to farming groups around the country about what a vision for the future might look like.
O’Connor set up the council because it is clear the sector faces multiple challenges including changing consumption patterns, emerging technology in the alternative proteins space, challenges associated with environmental sustainability and the continued challenge to grow value.
The food and fibre sector is and will remain central to the New Zealand economy.
It makes up about 20% of GDP, one in 10 jobs, 75% of merchandise exports and covers 14 million hectares of productive land and vastly more ocean space.
It’s important the sector continues to grow, on average at about 2% annually and that will be challenging given growth can’t just be from agricultural intensification. Increasingly, it needs to consider value and optimal land and water use as well.
The climate change challenge is real and urgent. It is of overriding importance for all New Zealanders and global citizens.
Many climate experts acknowledge it is unlikely the Paris Accord targets will be met because countries around the world are already failing to hit intermediate milestones.
That means that the planet will continue to warm through two degrees with significant impacts on living standards, biodiversity and food production globally.
The clear strategic implications for the NZ food and fibre sector are that as the fear of climate change continues to grow, the pressure on issues related to environmental sustainability will become more severe. To counter this we must do all we can to mitigate climate change and building resilience into our farming systems will be critical for a prosperous future.
But it’s all not downside for food and fibre producers in NZ.
Global food production systems are increasingly being challenged by the impacts of climate change. Despite the growth of synthetic food off a tiny base, the future demand for food and fibre from NZ will likely be strong provided we are producing what consumers and markets are looking for in a genuinely sustainable way.
It is also clear that while the sector is taking strong actions behind the farm gate in areas such as effluent systems, precision application of water and nutrients, riparian planting, fencing of waterways and farm environment plans, these actions alone will not be enough to support our social licence to operate.
Rather, as the fear of climate change grows and pressure on issues related to environmental sustainability continues to mount, what is required is that New Zealanders are confident our country, including the food and fibre sector, is doing the right thing.
That’s as much about transport, renewable energy and industrial heat as it is about sustainable farming systems and optimising land use but it’s important to be clear that nothing less than genuinely environmentally sustainable approaches to farming will be acceptable as the future unfolds.
I’m optimistic about our future for two reasons.
The first is that in the context of the challenges ahead NZ is wealthy from a natural capital perspective.
We have great land and water resources, a temperate climate and we are surrounded by oceans.
This is important commercially as well as strategically.
All manner of actors, including those from the transport sector and offshore, will seek to acquire access to our land and water. Let’s ensure we fully understand its value as carbon and food inevitably become more fully priced.
The second is that NZ is well-governed with strong institutions and we have a tremendous capacity to demonstrate determined leadership in the face of adversity. It’s clear that what is required is high-quality, pan-sector strategy and policy and a strong partnership between government and business as we navigate the transition ahead of us.
Talking to food and fibre leaders around the country over the last six months gives me confidence we can organise ourselves to demonstrate the required leadership.
The vision work of the Primary Sector Council is one small part of the broader dialogue occurring across the sector.
As we continue our discussions some themes are emerging.
We are moving environmental sustainability to the core of everything we do, working as part of nature as stewards of our land so we have healthy land, healthy air, healthy water and healthy communities.
We are building our leadership in sustainable farming systems and optimising land use.
Prioritising investment and science focus will be crucial to this work as well as aligning policy and regulation as is continuing the volume to value journey.
Lain Jager is the chairman of the Primary Sector Council, which provides independent strategic advice to the Government on issues confronting the primary industries. The council’s discussions with stakeholders across the sector are ongoing. To get in contact, email its secretariat at PrimarySectorCouncilSecretariat@mpi.govt.nz
