Paul Moughan: Canada's dynamic agrifoods sector reaps rewards

Over the years I have been fortunate in establishing close science links with Canada. I get to travel to Canada and meet Canadian scientists working at the grass-roots level.

In doing so, one is immediately struck by an unusual enthusiasm in the Canadian science sector, and cannot help but be impressed by their up-to-the minute facilities and cutting-edge research.

Agrifoods research holds pride of place, with a Government-backed strategy to kick-start innovation in the food industry. Canada recognises the massive opportunities that are developing in the burgeoning international functional foods and nutraceuticals market and accordingly is investing heavily.

The University of Saskatchewan boasts one of the world's most advanced synchrotrons, a giant microscope and the most successful university-based science park in North America. Not bad for a university in the middle of the prairies. The science park has attracted Government and industry co-location, allowing the achievement of a focused critical mass.

Notable examples are the National Research Council's Plant Biotechnology Institute, Agri-Food Canada's Saskatoon Research Centre and the Saskatchewan Food Industry Development Centre, a well-funded centre for functional foods research. Similar centres for functional food and nutraceutical research are seen at other Canadian universities, too.

Quite simply, the Canadians are seizing the opportunities associated with a worldwide swing towards the marketing of smart science-based foods for wellness and health. Of course, such novel foods and specialised food ingredients are lower-volume, higher-value, higher-margin foods. They are products of a knowledge economy.

You get the sense, in Canada, of a confident, forward-looking agrifoods industry beginning to reap its rewards. There is no talk of a mature sunset industry.

There is a wake-up call for New Zealand. We lack a similar national food industry strategy and orchestrated R&D funding regimen.

In New Zealand, and according to the New Zealand Institute of Agricultural Science, investment in primary-production-related research and agrifoods research in general has declined over the years. Other areas such as computer technologies and hard core biotechnology have become more fashionable.

The reality is, however, that the New Zealand economy still depends on agriculture and will for many years to come. New Zealand's agrifood industries have a great future. The world food industry is reinventing itself and the opportunities for New Zealand to develop clever-branded functional foods and specialised food ingredients are immense.

To be fair, there are some highlights. The Government's food and beverage taskforce is a great initiative and will hopefully act as a catalyst to form a blueprint for development. The Riddet Centre, a collaboration of top scientists from Massey University, the University of Auckland and Otago University, has been established in Palmerston North and is conducting fundamental studies to underpin the development of innovative foods.

On a cautionary note, however, although the centre is thriving, too much of its research is being funded by overseas food companies. Intellectual property goes offshore.

Other science centres such as the Nutrigenomics Centre have been set up and AgResearch has recently refocused science resources around food innovation. But most important, New Zealand is full of highly successful, entrepreneurial food small and medium enterprises (SMEs). If we can develop a national food industry strategy to assist these companies, New Zealand's agrifood sector will blossom.

New Zealand does have some real comparative economic advantages: excellent farmers producing very high-quality produce, innovative food SMEs, a rich history of world-leading agrifood science and a clean, green, healthy image.

It is time to build again on these comparative advantages and capitalise on the opportunities that they present. The deliberations of the food and beverage taskforce may just provide that impetus.

* Massey University's Professor Paul Moughan is co-director of the Riddet Centre.