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Home / Business / Companies / Agribusiness

AgResearch reaches for city folks

Owen Hembry
By Owen Hembry
Online Business Editor·
19 Jun, 2005 08:57 AM3 mins to read

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Andy West wants water trading, more Government investment and education of 'Jafas' in rural ways.

Andy West wants water trading, more Government investment and education of 'Jafas' in rural ways.

AgResearch chief executive Andy West has always spoken his mind and after a tough but enjoyable first year in the job he has no intention of stopping now.

New Zealand's dependence on farming, educating Jafas, building partnerships and saving water were top of his list at Fieldays - the Southern
Hemisphere's largest agricultural trade show.

West said New Zealand's greatest weakness was often a failure to recognise its strengths.

"The level of innovation here is extraordinary. It shows how powerful our biggest industry is. The pastoral sector [is] a powerhouse."

But he said economic and social dependence on a dominant farming sector posed the greatest threat to New Zealand.

"The biggest risk to a biological economy is sabotage - deliberately smuggled disease."

Last month's foot-and-mouth scare brought home to many New Zealanders how much economic and social devastation an outbreak would cause.

"When our backs are to the wall and things get really rough, then I think you still see the urban centres of New Zealand recognising the importance of agriculture."

But with high immigration and growing urban populations, West said the agriculture sector must do more to educate the urban public.

"It's reminding the public, don't just think of dairying as a blot on the landscape. It's generated a huge amount of wealth that's paid for our hospitals, roads and schools."

Auckland, a city often pilloried for being ignorant of life outside its borders, should be targeted above all others. "The only place to impress is Auckland. Under MMP Auckland holds all the votes ... all the power.

"Ultimately it's about convincing the public this is an economic strategy that's going to maintain the prosperity of the nation."

West said public support was needed to generate investment for growth of production.

He said he wanted to see Government investment in R&D doubled to about 1 per cent of gross domestic product and private investment tripled to about 1.5 per cent.

"If we're serious about generating enough money to run a first-world health system ... [then] you've got to produce the best food in the world and get it into the various value chains in a way that returns a lot of money to New Zealand."

AgResearch's presence at Fieldays emphasised its core mission of scientific partnership with the pastoral sector.

"In a country of four million with so many research problems and so little money to go around, if you're not working together you're in trouble - and we have been."

Partnership with the dairy and meat industry was essential to deal with potential environmental issues such as water shortage.

"We don't have an inexhaustible supply of fresh water and we are approaching boundaries that we need to be pretty worried about."

West suggested trading water as a commodity to determine its true value. "We can raise our efficiency in water use as a society. The first step is to price water."

Eliminating waste and improving efficiency was an ongoing battle, West said would never end.

"Humans always demand more and more resources. Efficiency never reduces demand, it just makes it go further."

* The agricultural sector must do more to educate on its importance to the national economy.

* Wants government investment in R&D doubled to about 1 per cent of gross domestic product and private investment tripled to about 1.5 per cent.

* Wants water trading to determine its true value.

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