Slashing farm science now could cost the economy far more later. Photo / Mike Scott
Slashing farm science now could cost the economy far more later. Photo / Mike Scott
THE FACTS
The primary sector contributed about 83% of New Zealand’s goods exports in the year to June 2025
New Zealand invests around 1.5% of GDP in research and development, below the OECD average of about 2.7%.
Over the past decade, primary sector exports have grown faster than other goods exports.
Science funding is being “Rebalanced for impact”.
The Government is refocusing science funding towards areas with the “greatest national impact”, with a stronger emphasis on advanced technology.
That might sound acceptable, or even sensible, until one remembers that there is no new money for science: this is azero-sum game, and the base funding being “rebalanced” is very low.
This means that any attempt at “balancing” will result in some areas suffering severe losses – so severe that survival of both national science capability and capacity is at risk.
A headline reading “New Zealand agricultural scientists now critically endangered” might not worry some people, but perhaps when they are reminded that the primary sector contributed 82.9% of New Zealand’s goods exports in the year to June 30, 2025, they might think again.
The lifestyle of every New Zealander depends upon what the primary sector achieves.
Various ministers in the past have declared that it is time to move on from farming.
In her 2002 speech from the throne, the then Prime Minister Helen Clark stated: “… government should focus on areas which are capable of having a material impact on growth rates across the board, which are capable of developing world-class scale and specialisation quickly, and which contribute to the vision of a globally oriented, innovative New Zealand economy”.
Biotechnology, information and communications technology, and creative industries were considered most likely to help move New Zealand on to a higher growth plane.
In 2019, an MBIE report stated again that “New Zealand needs to move from volume to value in the largest areas of our export economy, such as agriculture and tourism. This involves a shift away from a growth strategy based on labour absorption and immigration to one in which productivity plays a much bigger role”.
Throughout the years and despite the recommendations for change, it is the primary sector that is creating the still-increasing value.
Year after year, agriculture outperforms other sectors in the much vaunted productivity measurements; Stats NZ has the unequivocal data.
Over the last 10 years, primary sector exports have grown by an average of 5.3% per year, whereas other goods exports have managed only 2.1%.
The gains reflect the fact that farmers and growers are indeed using and adapting technologies that are appropriate for their systems as they continue to advance.
The Prime Minister’s chief science adviser, Dr John Roche, has stated in a recent opinion piece that “New Zealand’s prosperity has always been built on farmers and scientists working together to shape our economy”.
Obviously, the team has been successful.
But funding cuts mean that teamwork is falling apart.
International benchmarking makes the problem clear.
Although New Zealand has invested far more of its public R&D budget in agricultural and environmental research than comparable small, advanced economies, there isn’t nearly enough money being invested overall.
The New Zealand total science investment is 1.5% of GDP; the EU average is 2.1% of GDP.
Of this investment, the amount coming from the Government is nowhere near what is needed.
Professor Sir Peter Gluckman, the inaugural chief science adviser to the Prime Minister, has explained this repeatedly.
Dr Jacqueline Rowarth, Adjunct Professor Lincoln University, is a farmer-elected director on Ravensdown and DairyNZ and a member of the Scientific Council of the World Farmers’ Organisation.
“Analyses show clearly that investment in public research must be in the order of 0.8-1% of GDP such that it sparks adequate private sector engagement.
“European experience suggests that until public expenditure is more than [about] 0.8%, private sector investment will not increase beyond roughly that of the public sector.”
The problem continues to be that New Zealand has very few large companies that invest in research – Fonterra and Zespri are doing their part, as do farmer co-operatives and levy bodies, but overall, this isn’t enough on top of the small Government input.
And overall, the elephant being overlooked in the funding direction change is the threat to the environment: agriculture and environment are inextricably linked.
Half of New Zealand’s land is managed by farmers and growers.
The associated science teams comprise experts in soils, plants, ruminants, insects, diseases, water and air qualities, all of which are related strongly to environmental stewardship.
Dr Stephen Goldson, emeritus principal scientist with the Bioeconomy Science Institute, says, “Science for farms has a great deal to do with maintenance and conservation of the environment, which imparts resilience to our farmlands. The result of such research has been the ongoing growth in New Zealand’s economy.”
The environment is obviously rapidly changing both abiotically (eg, weather and climate) and biotically (eg pests and diseases).
“What we need,” Goldson says, “is funding to ensure that New Zealand’s scientific abilities commensurately fulfil the country’s unique growth opportunities, coupled with research to sustain environmental quality across the New Zealand landscape. Here, there is the great scientific overlap. This must obviously include targeting those sectors that underpin the high-quality protein that our companies market internationally. Doing so will ensure that the outstanding productivity growth, diversification and long‑term resilience continues.”
The lifestyle of every New Zealander depends upon what the primary sector achieves – farmers, growers, rural professionals and scientists working towards the common goal of New Zealand’s good.
– Dr Jacqueline Rowarth, Adjunct Professor Lincoln University, is a farmer-elected director on Ravensdown and DairyNZ and a member of the Scientific Council of the World Farmers’ Organisation.
