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Home / Business

Federated Farmers: There is no substitute for food

By Jacqueline Rowarth, Professor of Agribusiness, University of Waikato
NZME. regionals·
10 Dec, 2014 12:16 AM4 mins to read

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Jacqueline Rowarth

Jacqueline Rowarth

It is hard to think of a time when food was more important globally yet more difficult to produce in New Zealand and then sell at a price that rewards the producer.

This is not because of the always present vagaries of biological production systems but because of politics -- local, national and global politics.

This is a ridiculous state to be in.

It is having a detrimental effect on recruitment and on the rural relationship with those that dwell in the town. It is having a detrimental effect on farmers themselves.

Yet, as Australian National University's Professor Peter Warr stated clearly and simply at the F20 Summit organised by Rabobank in November in Sydney: "Food is not just one more commodity; it's a product for which there is no substitute. It doesn't matter how much other stuff you have, if you haven't enough food, you're going to die."

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Malnutrition, both under and over nutrition, has been estimated by the International Food Policy research Institute to cost 11 per cent of global GDP.

The Global Nutrition Report indicates that not one of the 193 countries studied has no malnutrition and that approximately 100 countries experience under and over nutrition simultaneously.

Opening the F20, Rabobank Group Executive Board Member Berry Marttin urged the delegates, many of whom were farmers, to increase food availability, improve access, stimulate enhanced nutrition and enhance stability.

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In New Zealand we achieve high yields of food per hectare with low greenhouse gas production and water use. That food is made available to the rest of the world -- but many put up barriers to trade in the form of tariffs.

The New Zealand Government focus on free trade deals is important for returns to farmers; it is also important as an exemplar for global food security.

Professor Warr has explained that prohibiting imports protects domestic producers, but raises food prices within the country. "Increased food prices results in decreased consumption in poor households, he says.

"As a consequence food self-sufficiency can be in conflict with food security.

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"Agricultural productivity growth increases food security."

He urged greater investment in research to ensure that productivity per hectare increased.

His call aligns with those from Federated Farmers of New Zealand, the KPMG Agribusiness Agenda and many business analysts.

New Zealand's investment in scientific research continues to be poor. Latest OECD ratings report gross expenditure is only 1.26 per cent of GDP; the OECD average is 2.4 per cent. Business research is 0.5 per cent of GDP, and a considerable proportion is funded by farmers through co-operative retentions as well as taxes.

More is required from government to stimulate the research required to inform policy particularly around protection of the natural resources which support agricultural production. In order to protect the environment farmers have invested thousands in fencing, planting, and technology upgrades  yet the calls for destocking, de-intensification and a return to the 80s continue.

Doing so would be detrimental to the economy. In addition, not making the most of our natural resources in a world of food insecurity would, as Lincoln University Vice Chancellor Dr Andy West has explained, result in 'international attention'.

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Global food security is a shared responsibility and requires collective solutions. These must take into account the growing population, the imbalance in nutrition within and between countries, and the increasing difficulties in actually producing food.

It is time to regard food as a global resource.

"We need innovation at every stage along the value chain," said Mr Marttin. Nobody disagreed, but in order to achieve what is required, we also need author Julian Cribbs' suggestion: "Every subject at school should be taught through the lens of food. We should also declare 'The Year of Food' and focus on informing consumers about food production."

With something so important, one might think that the world would be focussed on enabling food production and rewarding good food producers, thereby creating vibrant businesses in which the young want to become involved. Statements are being made about 'need', and discussion increasing in intensity. At some point, the need to do so will turn into action; for the world, as well as New Zealand, the change can't come soon enough.

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