Seed values signal future key export

New Zealand’s arable farming is at the forefront of new pasture technology and reliable seed production for export. Photo / David Clarke

Arable farming continues to grow and has the potential to be a key primary sector export.

New Zealand farmers have established themselves as an important hub for the development of new pasture technology and reliable seed production for export.

According to the latest research commissioned by the Arable Foods Industry Council (AFIC), the value of the seed industry in New Zealand is increasing, underpinned by traditional stalwarts grass seeds ($106 million), white clover ($33 million) and growth in the vegetable seed sector ($66 million).

Arable farmers are world leaders in seed multiplication because of our weed-, pest- and disease-free status.

Farmers are able to maintain this status by taking part in our world-leading seed certification system, which ensures cultivars maintain their varietal purity.

The system, established in 1929, is maintained by the pan-industry body the Seed Quality Management Authority (SQMA), in which Federated Farmers Grain and Seed Industry Group is represented.

AsureQuality manage the seed certification system on behalf of the SQMA.

It is tasked with performing field inspections on submitted seed lots to ensure they are free from contaminants.

Once the seed lot has been harvested, the lot is then tested by the AsureQuality laboratory to ensure the lot meets minimum standards.

None of this comes for free.

Farmers are charged by AsureQuality for all field inspections and tests completed.

For the past 18 months the SQMA has been negotiating a new agreement with AsureQuality to continue to provide this service.

The SQMA advises a number of changes have been made to the price structure for field inspections realigned to cover the costs of performing inspections and accurately apportion costs and inputs associated with inspecting each crop.

AsureQuality has introduced an annual fixed base fee of $18, a sector charge of $30 applicable for a farm visit in that cycle; a differential pricing structure between different crop species and breeders, basic, and first- and second-generation classes.

Growers who submit six or more crops of the same species before the closing date receive a 10 per cent discount on the total fee.

The figures inset outline the new price structure, effective from July 1 and a comparison between the new and old pricing structure. The SQMA says this is the first price increase for five years.

The SQMA says laboratory testing costs will increase by 6 per cent, effective January 1, 2016.