OUR primary sector has been at the heart of the New Zealand economy for a long time and it will remain that way.
We have a natural advantage with fertile soils, good rainfall and a good climate. And we have used the innovation, commitment and passion of New Zealanders to turn those variables into products the world has needed and wanted.
Overall, the outlook for the primary sectors is very bright.
Our exports continue to exceed expectations.
Forecast revenue of $45.6 billion means an extra $3b will pour into the NZ economy this year.
The outlook provides confidence the primary sector is robust and doing well. While the forecast is good in the short and medium terms we need to be looking further into the future to ensure our primary industries are sustainable in the long term.
There are real challenges ahead.
We are seeing some turbulence in global trade in the form of rising protectionism, including the United States re-imposing tariffs, tensions between the US and China and Brexit.
We have a six-part strategy for responding to this: defending international trade rules, participating in regional agreements and institutions, pursuing ambitious open trade deals and developing a Trade for All agenda to ensure the benefits of trade flow to New Zealanders.
We are the producers of the world’s finest pasture-fed protein but internationally we’re seeing a change in consumer preferences.
Alternative proteins are on the rise.
With the millennial effect we’re seeing a generation who prefer premium and niche brands, who believe newer brands are better or more innovative.
And then there’s Conscious Foodies – consumers who care about where their food comes from. They need strong traceability and transparency of good on-farm practice in terms of animal welfare and environmental standards.
People are looking for a grass-fed product and the story behind it. Consumers want to make a connection back to real food.
The NZ story is key – the story of our unique, grass-fed, free-range farming systems.
NZ has a natural advantage and we need to get better at selling our world-class product to the world’s most discerning customers.
We have to move past volume to value and, further still, to values.
We must be better able to answer the question of why we’re doing what we’re doing and who we’re doing it for. In the spirit of kaitiakitanga, our food and fibre goes from people who care to people who care.
I appointed a Primary Sector Council for the sole purpose of establishing a shared vision for the future of our primary sectors.
The council, made up of experts from across the sector, has been talking to industry leaders around the country over the last six months. I will be announcing this vision to our farming communities at Fieldays.
New Zealanders and our customers here and overseas know we are good stewards of our land and animals. It’s now more important than ever for our farming community to understand and strengthen its social licence to operate.
This Government is bringing in freshwater standards that are expected of New Zealanders across the board and by our international partners who perceive NZ to be clean and green.
We are working on a budget package that will give comprehensive advice to farmers and land users across NZ to help them meet the requirements of climate change, biosecurity, water, animal welfare and options for diversification and land use.
There’s no denying Mycoplasma bovis is having a significant impact on the dairy and beef industry.
No country in the world has ever done this before and we don’t have a textbook. We were never going to achieve perfection but I’m confident we can achieve eradication.
I welcome steps released recently by eradication partners to strengthen the programme.
A year in and with the surge of work before Moving Day it is appropriate to change approach where required. I have always said I expect the 10-year programme to be proactive and adapt.
This is a time for co-operation and honesty across the farming sector.
We will not beat this without the support of farmers and you will not beat it without supporting one another.
Together we can do this, we can eradicate this disease.
And, of course, climate change is another big challenge for our sector.
The Government needs to give farmers certainty and direction on the path to a low-emissions economy – this certainty will enable them to make long-term decisions. We’ve done that by introducing the Zero Carbon Bill to the House.
The Bill indicates a range for its methane target below 2017 levels by 2050 because the amount of reduction that can take place depends on technological developments and when they will be on the market for farmers to use.
This is a forward-looking target and the science and research is developing. The targets will be reviewed at regular intervals as things like methane-inhibiting feed and other technology come on-board.
Sustainability is key.
This Government is ambitious about transformative change and our goals around climate change, water and a productive, sustainable and inclusive economy.
We want this transition to be a positive one, where the sectors are fully informed, confront new disruptors and challenges and seize new opportunities.
To do this we need to collaborate, plan and act rather than fight change or bury our heads in the sand.
By being agile and innovative farming will ensure it remains a core part of NZ’s economy and society.
