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Home / Business / Economy

<i>Owen Hembry:</i> Food-miles issue still a vital one

Owen Hembry
By Owen Hembry,
Online Business Editor·NZ Herald·
15 Feb, 2009 03:00 PM4 mins to read

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Owen Hembry
Opinion by Owen Hembry
Business news editor, NZ Herald
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KEY POINTS:

A few years ago consumer concerns about the distance food travels to market, the sustainability of products and the environmental impact of long-haul flying were the subject of hot debate.

Interest here was understandably high, given our distant location from key export markets and inbound tourists.

Climate change,
apparently insatiable consumption by the developed world, industrial expansion in the developing world and documentaries like the film An Inconvenient Truth, whether you agree or not, helped raise awareness of environmental issues.

It was headline stuff but then along came a bigger story - global recession. Consumer attention during recessions understandably shifts to job security, paying the mortgage and keeping a tight reign on household bills.

But it would be a mistake to think that food miles and sustainability issues were merely passing fashions.

A self-funded study by the New Zealand Institute of Economic Research says developed and developing country food exporters are likely to suffer losses if food miles is the basis for purchasing decisions in Europe.

NZIER deputy chief executive John Ballingall wrote the study with Dr Niven Winchester of Otago University.

Ballingall says the biggest losers from declining demand for imported food would likely be New Zealand and several sub-Saharan African nations such as Madagascar and Malawi. This is because of their distance from market and their relatively high share of agricultural exports.

"Obviously right now consumers are more worried about affordability than sustainability due to the economic downturn, so we're really talking about what might happen once the downturn finishes again," he says. "We're suggesting it's something we can't afford to ignore because sustainability is a long-term trend and it will come back up again."

The report says that although the exact nature and timing of food miles-based preference shifts is uncertain, under certain assumptions New Zealand's gross domestic product would drop by up to 0.24 per cent.

Exports to the UK, Germany and France would drop significantly if the food miles issue started impacting on consumer behaviour, although these exports would largely be redirected towards other markets such as Asia, where there was less concern.

A European Union survey found 21 per cent of European consumers had bought locally made products or groceries during the past year because of environmental reasons, Ballingall says. "Not necessarily food miles as a very narrow issue but concerns about environmental issues and ethical issues are certainly still there."

Scientists, economists and informed readers understand that food miles as a narrow measure is not a good measure of environmental impact.

"So I think it would be fair to say we dispelled some of those myths a while back. But there's a difference between that and getting to the average Joe in the UK supermarket who is still going to think if something's come from 12,000 miles away it's going to be more damaging to the environment."

Action during the past two years in particular has been positive and calmed things down, with no huge demand response to date and some companies measuring and trying to reduce greenhouse gas footprints.

"This is an investment that New Zealand firms need to continue to make because further down the track they will be asked about their sustainability credentials."

We don't have a huge internal market to support the economy, exports are our lifeblood and we need to stay at the front of any debate that might affect our trade.

The recession will end, confidence and demand will return, and when the dust settles we need to make sure the global consumer has no reason to pause and think about their purchase.

We want the first holiday treat after the global bounce-back and the choice for the shopping trolley to be New Zealand, no questions, concerns or debate.

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