Damien O'Connor says New Zealand agribusiness can't afford to rely so heavily on exports to China. Photo / File
Damien O'Connor says New Zealand agribusiness can't afford to rely so heavily on exports to China. Photo / File
COMMENT:
Damien O'Connor has talked up the red meat sector as crucial to New Zealand and a great industry.
"With the pace of change in our world we need to grasp opportunities, implement strong bottom lines and make sure this sector continues to thrive," he told a sector dinner inthe "cardboard cathedral" in Christchurch this week.
O'Connor was the dinner speaker at the Red Meat Sector Conference jointly organised by Beef + Lamb New Zealand and the Meat Industry Association. He is Minister of Agriculture and Minister for Biosecurity, Food Safety, and Rural Communities. He is also the Minister of State for Trade and Export Growth.
O'Connor had a shout out for Taste Pure Nature — New Zealand's beef and lamb country of origin brand. But also some words of warning for the sector — particularly on China.
In effect, he is saying New Zealand agribusiness is too exposed to one market. It needs to diversify elsewhere within Asia and further afield. "We cannot afford to rely on one market for such a large part of our exports."
The red meat sector is under attack reputation-wise from climate change activists and from those forging businesses in alternative meats.
Here are some key takeouts from the Christchurch conference.
Lindy Nelson from the Agri-Women's Development Trust put it best. 'If New Zealanders think we're world class in rugby, netball and cricket, why don't they think that about farming?"
Put simply many in the sector are sick of the thrashing they get. Not just on environmental grounds where a lot has been done to clean up the record. But on the very raison d-etre for farming in the first place. Exports of sheep, beef and co-products increased by 8 per cent to $8.8 billion for the year to June 2019.
But the world's changing quite rapidly — and particularly for the red meat sector. It faces big issues getting young New Zealanders to build agri careers. Unless that image is turned around those labour issues will not diminish.
There are plans for Beef + Lamb NZ and the MIA to collaborate more. This is a message that also came out of last week's Te Hono Stanford bootcamp where 70 CEOs and leaders from the New Zealand Agribusiness sector spent a week developing strategies.
2. It's 'fake news' — red meat is not going to kill you
Frederic Leroy from Vrije Universiteit in Brussels was a hit with his address on Red meat: facing the challenges of the post-truth era.
Leroy's contention is that meat is being scapegoated by over-hyped claims on farming practices and their carbon and methane footprint.
He called for some perspective. "Livestock farmers are not working against nature, they're working with nature", and urged the industry to be proud of meat again. It is at the centre of our evolution and existence. It is exceptional and that should be remembered.
Damien O'Connor. Photo / File
His contention is the red meat industry is also the victim of fake news.
He point to 2017, when the Guardian received an $886,600 grant from the Open Philanthropy Project (OPP) to publish a series (Animals farmed) that paints animal agriculture as inhumane, unhealthy and dangerous to the environment.
Leroy said OPP was founded by a party which has links to animal right activists and is an investor in Impossible Foods — the alternative meats company.
3. We have to have the gene editing debate
There's a growing belief in the red meat sector that New Zealand will have to adopt genetic science developments to combat greenhouse gas emissions — particularly methane.
The politicians have already started to tease out views with some selective kite flying in recent weeks over the potential, for instance, to produce rye grass pastures which will lead to a reduction in methane emissions by cattle and other livestock that feed on them.
But while New Zealand was in a brilliant space to respond to the challenge through adopting GE, there were concerns that it might cause opportunities for some in the agri sector and challenges to others.
Irrespective the tools were there and a debate should be held.
4. We've swapped 'first past the post' for 'third past the post'
That moment when a number of key players at the Red Meat Conference seemed to sing in unison that the sector needed to cuddle up to New Zealand First.
New Zealand First had already proved its political worth to some in agribusiness by stymieing the capital gains tax regime Labour had wanted to introduce.
That would have impacted heavily on farmers who have most of their wealth tied up in their farms and would have seen them hit with a significant capital gains tax on sale if Sir Michael Cullen's recommendations had been passed into law.
"We've swapped 'first past the post' for 'third past the post' cracked one attendee.
Thus it made sense for the sector to make a stronger connection to New Zealand First if they wished to ensure that the impact of environmental and greenhouse gas emissions policies was contained.
