NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business / Business Reports / Agribusiness report

Agribusiness Report: Fears over food regulation

By Nigel Stirling
NZ Herald·
8 Jul, 2014 04:15 PM8 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Tim Ritchie says the meat industry's preference is for companies to deal with food safety threats through their own risk management systems.

Tim Ritchie says the meat industry's preference is for companies to deal with food safety threats through their own risk management systems.

Primary industry heads worry the existing system is in danger of being undermined. Nigel Stirling reports.

Primary industry bosses fear New Zealand's "world-class" food safety regulatory system is in danger of being swapped for a costly and inflexible set of rules, which do nothing to raise performance and will only dent competitiveness.

An inquiry into food safety regulation governing the dairy industry last December found it was not a factor in last year's botulism false alarm.

In fact, it found the system to be "as good as any in the world".

Still, the Government Inquiry into the Whey Protein Concentrate Contamination Incident (WPC80) came back with a raft of action points to bolster the system and safeguard against future food safety threats.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Industry bosses fear the fox being let loose in the chicken coop as officials from the Ministry of Primary Industries are left to work through the detailed implementation of 29 recommendations.

These include recasting procedures for food recalls and moving legal responsibility for crisis response plans to officials. Two new quangos will be set up to highlight and provide advice to officials on how to deal with future food safety risks.

Discussions involving 150 primary sector executives conducted by consultancy firm KPMG has found little confidence in officialdom to get the balance right in any shakeup.

Transcripts released to the Herald quote one participant, from the horticultural industry, who believed the botulism false positive was a "political scare" rather than one based on any real risk to consumers in foreign markets.

Advertisement
Advertise with NZME.

Accordingly, industry should be prepared to take up the cudgels against "unnecessary demands and requirements being placed on our producers given the inherent quality of our food safety systems."

Another, from the dairy industry, said the status quo where manufacturers were left to implement their own systems for managing food risks so long as they delivered the safety benchmarks set for them by the regulator, which had served NZ well in the past, was in danger of being undermined.

"It feels like we are moving to a tick-the-box system rather than one which delivers real quality assurance to customers."

KPMG's head of agribusiness, Ian Proudfoot, says the comments reflect widespread concerns at the potential to add unnecessary cost, and stand in the way of company-to-customer relationships.

Discover more

Agribusiness report

Agribusiness Report: Rural real estate in demand

08 Jul 04:15 PM
Agribusiness report

Agribusiness Report: Growing a share of new markets

08 Jul 04:15 PM
Agribusiness report

Agribusiness Report: Hard decisions for a better future

07 Jul 04:15 PM
Agribusiness report

Agribusiness Report: 100th birthday cake, and cream

08 Jul 04:15 PM

"The concern is that, in the desire to be seen to be doing something, the something that is done ends up being more damaging to the sector than standing behind the integrity of what we already have in place."

In the meat industry, there is unease that well-signalled moves to cut out government middlemen from basic inspection tasks at processing plants could be stymied. Last year the industry paid AgriQuality $87 million for post mortem inspections of carcases for meat quality which the industry believes could be carried out by its own employees.

Meat Industry Association chief executive Tim Ritchie says whether a government or company inspector carries out the task is irrelevant to food safety but he worries the frenzied atmosphere surrounding food safety in the dairy industry could lead officials to block the move.

"The danger is that we are all bundled up together and something is done because of the political optics and we as a sector are asked to bear the costs of that."

He says the industry's preference is for companies to be left to deal with food safety threats through their own risk management systems and for these to be periodically audited.

"The last thing we would want to do is compromise food safety outcomes because the whole basis of our positioning internationally is about having very good systems in place."

Advertisement
Advertise with NZME.

The inspiration for the sidelining of government meat inspections came from meat industry and MPI officials working together through the industry's own Strategic Directions Group.

Formed four years ago, the group has tackled a number of food safety and market access issues specific to the meat industry. Its role is not a million miles away from that of one of the two quangos recommended by the December inquiry.

The Food Safety Assurance Advisory Council will report quarterly to the Director-General of MPI to "provide high level independent advice and risk analysis" on the "whole of NZ's food safety and assurance system".

The NZ Food Safety Science and Research Centre -- expected to be up and running by the end of the year, with a $5 million budget -- will provide the scientific grunt for the council's deliberations.

Ritchie fears the wide ambit of these two new bodies could squeeze out industry input into regulations governing meat companies.

"We don't want something where we find that we have to tread water for a number of years while everyone else catches up."

Advertisement
Advertise with NZME.

The executive director of the Dairy Companies Association, Kimberly Crewther, says it is still too early to determine the exact course officials intend taking with food safety regulation in the wake of the botulism affair.

A Food Safety Law Reform Bill is unlikely to see the light of day until after September's general election.

But Crewther says she shares some of the reservations expressed by others about the potential for a more prescriptive approach to regulation by officials.

"The preference for the sector has always been for a more outcome based approach - if you focus on outcomes there is greater scope for flexibility and potentially reducing the compliance costs for how those outcomes are met."

She is hopeful officials will take the chance to cull unnecessary and overlapping regulations.

Last year's inquiry noted 12,000 pages of regulation -- enough to fill three metres of shelf space -- governing the dairy industry alone.

Advertisement
Advertise with NZME.

"There is a balance where making requirements clearer as opposed to what I would say is more prescriptive."

MPI's point man during last year's botulism crisis, deputy director-general Scott Gallacher, denies a more prescriptive system is on the way.

"When you look across the bulk of the recommendations it was not about having a rigid approach or introducing aspects of rigidity.

"They were about ensuring that we could provide the requisite level of trust and assurance to consumers that whatever leaves manufacturing premises in New Zealand is safe and fit for purpose."

Gallacher even turns the allegation back on the companies themselves.

"An emphasis on compliance does not involve us moving to more of a tick-the-box system that is alluded to."

Advertisement
Advertise with NZME.

China not our dictator

The Ministry of Primary Industries says New Zealand's food safety regulation is not being dictated by Beijing.

Comments from roundtable discussions conducted by KPMG and seen by the Herald show perceptions are different among primary sector bosses.

"We should be taking the high ground based on good people and trust-based customer relationships but it appears that MPI and the Government are finding it very hard to say no to China," one says.

"No system will fully mitigate the risk entirely but it is not clear that our government is brave enough to push back against China at times," says another.

Industry bosses fear NZ will cave in to China when it comes to food safety standards and abandon the risk management system NZ companies are allowed to operate under currently.

Following last year's botulism false alarm China had already cracked down on several aspects relating to imports of dairy products from NZ.

Advertisement
Advertise with NZME.

One chief executive spoken to by the Herald says it is difficult for the Chinese to comprehend NZ's hands-off system which relies on a higher level of trust between businesses and officials than exists in China.

"Our challenge is to demonstrate to the Chinese that they should have confidence because we do have good regulatory systems and processes in place."

Deputy director-general Scott Gallacher says China is no more dictating food safety regulations in NZ than any other major market. "China much like any other market is actually seeing their consumers expecting higher levels of confidence and assurance of the fitness and safety of products that they are consuming and that is something we are seeing throughout a whole lot of markets not just in China."

He says manpower has been boosted in Beijing and in MPI's market access teams in Wellington. This has let the ministry be more "proactive" in dealing with matters relating to food safety and regulation.

Dividends have come from the number of dairy plant and meat company accreditations by Chinese regulators.

"As I understand NZ was the only nation to have our general dairy premises and manufacturers approved at the first instance.

Advertisement
Advertise with NZME.

"We also have a situation where we have the most meat premises registered than in any other nation.

"That is all in the context of us being proactive and ensuring that China does appreciate the equivalent level of assurances and confidence that they would expect to see."

Gallacher says primary industry exporters could hardly complain they were being held back by regulation when China has become the number one export destination for most of them in a relatively short space of time.

Nigel Stirling is a South Otago farmer and agribusiness and trade journalist.

Save

    Share this article

Latest from Agribusiness report

Business|business reports

Major supermarket apologises for humiliating woman with false shoplifting claim

24 Jun 04:36 AM
Premium
Agribusiness report

Sobering times for NZ wine industry: Costs and taxes rise and exports fall

05 Jan 10:43 PM
New Zealand|politics

NZ Herald Live: Christopher Luxon speaks on restoring farmer confidence

Kaibosh gets a clean-energy boost in the fight against food waste

sponsored
Advertisement
Advertise with NZME.

Latest from Agribusiness report

Major supermarket apologises for humiliating woman with false shoplifting claim

Major supermarket apologises for humiliating woman with false shoplifting claim

24 Jun 04:36 AM

The supermarket said its staff caused her public embarrassment and distress.

Premium
Sobering times for NZ wine industry: Costs and taxes rise and exports fall

Sobering times for NZ wine industry: Costs and taxes rise and exports fall

05 Jan 10:43 PM
NZ Herald Live: Christopher Luxon speaks on restoring farmer confidence

NZ Herald Live: Christopher Luxon speaks on restoring farmer confidence

Fonterra financial results

Fonterra financial results

Engage and explore one of the most remote places on Earth in comfort and style
sponsored

Engage and explore one of the most remote places on Earth in comfort and style

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP