With increasing scrutiny from consumers and governments demanding enhanced sustainability, New Zealand needs to transition its farming practices to stay ahead of the game amid global megatrends.
That was the collective message delivered from industry leaders at the Green Economy seminar at Lincoln University.
While NZ is well-positioned to lead the global sustainable agriculture and food sector, with its agricultural products boasting some of the lowest carbon footprints worldwide, it is at risk of falling off its perch, the seminar was told.
There are challenges ahead, and the big questions are, Are we ready for it as a country? How do we get there? Will science save us?
Global consulting firm Boston Consulting Group predicts the value of the global green economy will reach $9.4 trillion by 2030.
This presents one of the largest economic opportunities ever for NZ, given the country’s 100% Pure brand, pristine natural environment, abundant renewable energy resources and sustainability-minded society.
Agriculture and food production play a vital role in the NZ economy, contributing around $40 billion in annual exports, representing 67% of goods exports and 47% of total exports.
The industry faces challenges, such as the rising demand for premium and environmentally friendly agricultural products, decreasing costs of agri-tech, the emergence of alternative proteins and milk, and government efforts to reduce environmental impacts through policy and regulation.
NZ’s agricultural sector must adapt to these trends to stay competitive and capitalise on opportunities for sustainable growth, Lincoln University agribusiness and economics research leader John Saunders said.
NZ has the potential to lead the world in sustainable agriculture by capitalising on the trend of “premiumising”.
This involves enhancing the sustainability of existing products and expanding into new categories, incorporating greater supply chain transparency, ethical sourcing and certifications.
“There is great opportunity for NZ but science spending in agriculture will be really, really important for NZ, and globally,” Saunders said.
“Consumers are willing to pay for carbon neutral products if we can connect with them. Close the gap in thinking, know your consumers, don’t assume, ask them.”
Saunders said while using policy to encourage the right change is important, it must be consistent.
“Foot in, foot out, like Morris dancing, is not ideal.”
Will science save us?
“No, NZ has a history of underfunding science. The NZ science system is in a large period of uncertainty, we don’t put the money where our mouth is.
“Scientists are warning NZ risks losing top researchers due to the research funding gap.”
NZ must aggressively invest in research and development to reduce agricultural emissions in its pasture-based farming system.
With over 90% of emissions being “hard to abate” in the agricultural sector, collaborative efforts with peer organisations and government support, such as the $339m investment in the Centre for Climate Action on Agricultural Emissions, are crucial.
Emerging technologies and best practices, including agri-tech and regenerative agricultural techniques, can further reduce environmental impact and enhance productivity.
ANZ head of sustainable finance NZ manager Dean Spicer said sustainable or green finance is becoming more inclusive, robust and agile.
“But we are not there yet, there are a whole lot of challenges still to overcome.
“With NZ’s ambition to double exports by value in the next 10 years, we need to embrace the signals we are getting now as the financial markets are not necessarily capturing the climate risks that are there,” Spicer said.
