Agriculture Minister Damien O'Connor. Photo / NZME
Agriculture Minister Damien O'Connor. Photo / NZME
OPINION:
I've just arrived back from Europe and am pleased to report we are making good progress on our free trade agreements with the UK and the EU.
The highlight of the trip was nailing down an agreed timing of August for an "in-principle" agreement with the UK.
Thoughmy focus abroad was on diversifying New Zealand's trade portfolio, it is impossible not to comment on a world that very much remains in the grips of Covid-19.
There were just 14 passengers on my flight from Auckland to Singapore. Our journey required continuous social distancing at every step. People remarked on the novelty of meeting in-person — something many hadn't done since the pandemic began. There were no hand-shakes. Masks and hand sanitiser were a must.
Everywhere I looked there were signs of communities doing their best to adapt to these extraordinary times.
Counterparts often said to me the pandemic has reminded us how interdependent we are — no one is safe from Covid until we're all safe from it.
As I wait out MIQ with many other Kiwis and visitors, I'm reminded of the importance of our border management. Our decision to treat our Covid response as a health one first has made an enormous difference to our quality of life here in Aotearoa.
Throughout that Covid response, it has been our primary industries that have kept product flowing through supply chains to market and revenue flowing into the country.
The Ministry for Primary Industries' SOPI (Situation and Outlook for Primary Industries) report, which was released at Fieldays, tells that story of resilience and growth.
At a time when economies around the globe are taking severe hits due to the pandemic, New Zealand's food and fibre export revenues dipped by only 1.1 per cent. Given the headwinds of the Covid storm this is remarkable resilience.
The SOPI forecasts growth across the sectors over the coming year, culminating in a record $49.1 billion in export earnings. This growth will be sustained over the coming years with export revenue hitting $53.1b in 2025.
The primary sectors' resilience is a big factor in our overall GDP growth of 1.6 per cent in the year to March, which has us outperforming Australia, the United States, Canada, Japan and the United Kingdom.
Looking ahead, the challenges for our agricultural sector relate to environment, shifting consumer behaviours, and labour. Front-footing these challenges will help convert them into opportunities.
Partnership with industry is core to the Government's approach.
On environment, we're working with industry so farmers can integrate upcoming climate and freshwater requirements into their business planning. Budget 2021 committed $37 million to accelerate the uptake of integrated farm planning, ease compliance and deliver skills to guide farmers on this journey.
The primary sector has shown remarkable resilience.
The He Waka Eke Noa partnership will deliver a farm-based emissions pricing system, with all farmers being able to measure and manage their emissions by the end of 2022. Last year we launched the Fit for a Better World roadmap to boost productivity, sustainability, and jobs in the primary sector.
We brought forward almost $96m to kickstart delivery of the roadmap, including $84m to scale-up the Sustainable Food & Fibre Futures Fund (SFFF) to boost innovation efforts, on top of the $40m already available each year.
Since SFFF launched in mid-2018, we've committed more than $111m to new projects of a total investment of almost $250m.
Our success as exporters comes from being tuned into our customers and market conditions, and thinking innovatively.
We know consumer values are determining what people will pay a premium for in the supermarkets, at the restaurant, and online.
Where did this come from? Who produced it? Were those people paid well? Can I be sure my food decisions have minimal impact on the environment? Is this good for my kids? What's my carbon footprint?
Exporters get asked this. I get asked about it in trade talks.
The world is changing and we must move with the times.
Getting the right results will actually add value to our exports.
New Zealand has to move from volume to values — that is, aligning our story with the values of our consumers. And of course, being able to demonstrate it.
And this brings me to people.
Our primary producers are facing labour shortages. In the short term the Government is doing what it can to bring people in across our borders whilst managing our MIQ capacity.
It's also true that labour shortages existed prior to Covid and that we need long term strategies to address this.
Our Opportunity Grows Here campaign has placed more than 5200 people into the sector since spring last year. That's a great start.
My message to New Zealand is that there is a world of opportunity in working out in rural New Zealand. We want our rural communities to be vibrant and thriving.
I'm proud of our primary industries. We're already amongst the most efficient food and fibre producers in the world.
Our investments in new technologies and practices are going to greatly enhance our sustainability and the nutrition we provide our consumers.
In achieving this, our farmers will lead the way to making New Zealand the best country for the world.
- Damien O'Connor is Minister of Agriculture and Minister for Trade and Export Growth.
