Tag Archives: Minister

Building Export Markets, government releases progress report

Posted on by
Reply

The Government has today unveiled its first Business Growth Agenda Progress report on actions to boost New Zealand exports. It is a timely appearance as the Primary Sector Boot Camp reaches its halfway point in the US.

Launched by Finance Minister Bill English and Economic Development Minister Steven Joyce, the Building Export Markets report from the Ministry of Business, Innovation and Employment (MBIE) confirms the Government’s target to increase the contribution of exports to the economy from 30 percent to 40 percent of GDP by 2025.

English says this a challenging target and achieving it will require a concerted effort by New Zealand over many years. It will also require the continued development of new and expanding export markets.

“It is only through exporting that New Zealand, with a small domestic market, can deliver the growth and productivity required to enhance the wealth of our country and create more and higher paying jobs,” he says.

“Committing to this ambitious goal means the Government will stay focused on supporting firms to grow their exports.”

Steven Joyce says the report highlights the significant shift in economic power from the West to the East that is expected to happen over the next 20 years.

Building Export Markets is the first of six progress reports on the government’s Business Growth Agenda. Others will address innovation,skills, capital markets, infrastructure and resources. The reports lay out the work programme government agencies are implementing. Each has an informal portfolio group of ministers specifically grouped around the work streams, to drive the Business Growth Agenda forward and focus on what matters to business and companies.

Government intends to see three additional cross-cutting themes to be reflected across the Business Growth Agenda workstreams. These are: Maori Economic Development, Greening Growth; and Regulation. Better telling the ‘New Zealand Story’ is another Government priority and work is already underway with key stakeholders on “developing a compelling and consistent narrative about our country’s special qualities that work for a range of exporters and sectors,” according to the Ministers.

Actions contained in the Building Exports report include improving access to international markets, making it easier to trade from new Zealand, helping businesses internationalise, increasing value from tourism and high-tech manufacturing, growing international education and strengthening high-value manufacturing (including food and beverage manufacturing) and services exports.

“This first report is important, as it lays out the challenge for achieving growth – which is about being much more closely linked into the rest of the world and taking advantage of our opportunities,” says Joyce.

“While the world is going through tough times, the growth in Asian incomes will occur over the next 20 year. So there will be job growth, New Zealand’s challenge is to ensure it occurs in New Zealand, not in Australia, or somewhere else.”

The report shows that beef, lamb and wool accounted for 13 percent of New Zealand’s total $47.7 billion goods exports in 2011.

The Building Export Markets report is available here.

Carter in US for boot camp

Because of its size and importance, New Zealand’s primary sector, which currently accounts for 55 percent of exports is “critical” to achieving the government’s desired growth, the report says, so the outcome of this week’s Primary Sector Boot Camp at Stanford University will also be critical.

Minister of Primary Industries, David Carter, is part of the nine-strong Export Markets ministerial group, which also includes Prime Minister John Key, Steven Joyce, Murray McCully and Tim Groser.  Carter is travelling in the United States this week to attend the Boot Camp and also to talk with US agriculture sector political leaders and officials.

“This is an excellent opportunity for the leaders of some of our most forward-thinking primary sector companies to collaborate on formulating a plan to leverage New Zealand’s competitive advantage globally,” Carter said before he left.

“It’s not often that we can get a powerful group like this representing over 80 percent of New Zealand primary sector exports around the table, and I am confident of a positive outcome.”

About 20 leaders from New Zealand’s dairy, meat, seafood, wine and horticulture industries are among those attending the week-long camp alongside top government representatives from MPI and NZ Trade and Enterprise. The group will be hearing from first class speakers to inspire and motivate their thinking. The event has been supported with a $100,000 grant from AGMARDT.

Among the range of agricultural organisations the Minister is meeting with separately to discuss common New Zealand–US primary industry interests are the Tri-Lamb Group and US Cattlemen’s Association.

“These meetings further strengthen the New Zealand-US bilateral relationship and give our two countries the opportunity to canvass a range of issues in the primary industries policy area.  It is an opportunity to highlight the excellent collaborative work we already have with the US though the Global Research Alliance on agricultural greenhouse gases,” says the Minister.

“I particularly look forward to discussions on the mutual benefits that will be realised through the Trans-Pacific Partnership free trade agreement currently under negotiation.

“The TPP is important to New Zealand’s trade future and this visit will provide the opportunity to take political level readings on its progress.”

Nearly quarter of a billion being invested in red meat

Posted on by
1

Nearly a quarter of a billion dollars is being invested by the meat industry and the government in projects aimed at adding a potential $3 billion to returns over the next decade.

Ministry for Primary Industries (MPI)’s director-general Wayne McNee took the opportunity at the Red Meat Sector Conference to announce approved funding for the latest Primary Growth Partnership programme, which will enable the production of high-value marbled grass-fed New Zealand beef for premium export and domestic markets.

The initiative will develop marbling in grass-fed beef in the New Zealand beef herd, using Wagyu beef genetics, McNee explained. “MPI will invest in this programme with Brownrigg Agriculture and Firstlight Foods. The PGP is committing $11 million over seven years, for a programme worth a total of $23.7 million.”

Marbling, the distribution of fat through meat, is a primary determinant of quality in table beef in international markets such as Japan, China and the United States. Internationally, such high quality beef is produced mainly from cattle housed in pens and fed grain. ANZCO Foods has been producing a supply of hand-selected steers for Japan, raised on grass but finished on Canterbury grain at the Five Star beef feedlot near Ashburton for over 20 years.

To produce a comparable meat fed using New Zealand grass, the new PGP programme is aiming to develop an integrated value chain for the beef. It will combine high marbling Wagyu sires for the yearly mating of dairy heifers and cows and the development of rearing and grazing systems that will support year-round growth of the cattle.

McNee said the programme aligns well with the Red Meat Sector Strategy.

“The programme will produce unique New Zealand high-value beef for discerning consumers. It will link specialists in dairy farming, cattle breeding, finishing, processing and marketing and deliver market signals effectively right through the value chain,” he said.

David Brownrigg of Brownrigg Agriculture says it will be a significant opportunity for beef and dairy farmers to lift the quality and value of their calves and finished cattle.

“The New Zealand dairy sector represents an under-utilised resource for producing quality beef calves. Brownrigg’s Wagyu crossed with ‘Kiwi’ dairy cows and Angus beef cows will produce outstanding beef and help us lift our game in international markets,” according to Brownrigg.

Gerard Hickey, managing director of Firstlight Foods says a planned marketing programme to selected high-end global consumers will enable beef farmers to build their businesses with confidence.

Minister welcomes announcement

Welcoming the announcement, Minister for Primary Industries David Carter says, “The Government’s total investment so far of more than quarter of a billion dollars in PGP programmes, demonstrates its firm commitment to boosting economic growth through primary sector research and innovation.

“All New Zealanders stand to gain from the partnership because, alongside our internationally prized lamb, our beef sector is pivotal to the success of our economy.”

The announcement lifts the total government-industry PGP spend over the past three years to nearly $600 million. Nearly $86 million of government PGP funding has been allocated to three meat industry projects worth a total of nearly a quarter of a billion dollars to date. These are estimated to potentially put over $3 billion more on the country’s GDP by the mid-2020s.

To date, PGP-supported meat projects include funding of up to $59.5 million over seven years for the $151 million Farm IQ project with partners Silver Fern Farms, PGG Wrightson and Landcorp Farming aimed at creating a demand-driven integrated value chain for red meat. Seven project streams and 18 sub-projects are working to improve the capture and utilisation of both market and farm production information. The information will then support the development of new value-driven genetics and extension work that underpin the programme.

Another $36.6 million PGP project with NZ Merino, including $15.15 million of PGP funding, is looking to develop merino sheep with meat, wool and other products suitable for market demands over the next seven years.

Also in the wings, is a project that has been approved to business plan stage and will potentially to be funded to the tune of $37 million, led and matched by funds from Beef + Lamb NZ Ltd focused on implementing a number on-farm elements of the Red Meat Sector Strategy. Other meat industry projects are also in the pipeline, according to MPI.

The PGP is expected to be fully subscribed by next year, says McNee.

An abridged version of this article appeared in Food NZ magazine (August/September 2012).

Call to arms for agri-food

Posted on by
1

A proposal for a new Agri-Food Board is centre of a comprehensive new strategy aimed at tripling the value of exports for the agri-food sector to about $60 billion.

The Riddet Institute, a national centre of research excellence focusing on food, digestive physiology and nutrition, issued a ‘Call to Arms’ yesterday through the launch of its independent report on the future of New Zealand’s agri-food sector. The report calls for a joint approach from industry and government to drive the activities needed to treble the value of exports in the sector by 2025, as suggested in the Government’s Economic Growth Agenda in 2009.

The report contains options on how sector leaders can work together and why the agri-food industry should lead the strategy implementation work.

It was commissioned by the Riddet Institute and developed by an independent ‘thought leadership’ team led by Dr Kevin Marshall, former chief executive of the Dairy Research Institute, and prepared in response to a call by industry senior executives, who challenged the Institute in 2010 at its annual summit to develop a strategy for science and education-led economic advancement of the New Zealand food industry.

Dr Marshall said: “Our strategies are neither new nor unique, but, in the past, implementation by industry has failed. Crucially, we have provided a pathway and a proposed mechanism for action that will work. There is urgency now because New Zealand faces a mediocre economic future if we don’t drive the major recommendations in this report to fruition.

“Agri-food leaders need to know what to do, how to do it and how to develop the resources they need to do it effectively.”

Welcomed by the Minister

Minister for Primary Industries David Carter welcomed the report, which he said was a vital contribution.

“The Strategy Report highlights that if we are to achieve the standard of living we aspire to by 2025, we must treble the real value of our food exports to about $60 billion,” the Minister said, adding that to achieve a target of real compound growth rate of seven percent over the next 13 years, New Zealand needs to close a gap of current progress of around three percent.

“While the agri-food sectors have been successful, we need to grow faster. To realise growth, we need to collaborate, be innovative, build on our strengths and continue to earn our reputation for safe, high quality food, produced in a sustainable manner.”

New Zealand is lucky to have repositioned itself away from traditional markets, which are currently facing problems, towards Asia. “In the past financial year, exports to China have jumped by nearly 40 percent,” he said.

The Strategy

The task at hand “will not be achieved with business as usual,” Marshall explained.

He outlined the four transformational strategies proposed in the report are to:

  • Selectively and profitably increase the quantities and sales of the current range of agri-food products.
  • Profitably produce and market, new, innovative, high value food and beverage products.
  • Develop value chains that enhance the integrity, value and delivery of New Zealand products and increase profits to producers, processors and exporters, and
  • Become world leaders in sustainability and product integrity.

Four ‘enablers’ back the strategies. These include the development of transformational industry and Government leadership, strong consumer-driven export marketing of branded and consumer and ingredient product, increasing the capability and skills of the agri-food industry and supporting industries and increasing the amount and effectiveness of investment in innovation, research, development and extension supporting the agri-food industry.

He said the think-tank determined that current food industry strategies have not been achieved as they “depended too much on government taking the lead” and that the “captains of industry have not stepped up to take the leadership role.”

For that reason, the most important proposal is to establish an Agri-Food Board “to be the focal point for sector leaders to work together and for industry to lead the work with Government, overcoming barriers to implementation.”

Elements of the strategy link in with thoughts in KPMG’s Agribusiness Agenda for 2012, ‘People Unlocking the Future’ ably presented at the launch Ben van Delden. It also reinforces what the meat industry is already doing with the Red Meat Sector Strategy, B+LNZ Ltd chairman Mike Petersen said.

Strategic echoes include opening access to markets, together with the sector becoming more consumer-driven and collaborative. Discussion also worked its way around the need to attract, develop and retain new graduates and workers for the agri-food sector, the need to develop leadership within the industry and for behaviour and attitude change.

Over 120 attended the launch in Wellington that was attended by the Minister, agri-food industry leaders and senior government officials. Also speaking was NZ Merino’s John Brackenridge. The report will be on the agenda at the forthcoming Primary Industry Chief Executives’ Boot Camp in August at Stanford University, California.

Meat industry leaders, including Keith Cooper of Silver Fern Farms, Sir Graeme Harrison of ANZCO Foods, Sam Robinson of AgResearch, were amongst those who had contributed to the report.

The report is well worth a read to see where the sector’s going. Download a pdf copy of A Call to Arms: A Contribution to New Zealand Agri-Food Strategy or ask for a hard copy by emailing [email protected].

 

New Zealand’s ‘liquid gold’

Posted on by
1

Water is also on the mind of our politicians. Water – New Zealand’s ‘liquid gold’ – is possibly New Zealand’s biggest opportunity to grow the productive part of our economy, according to the Minister for Primary Industries.

David Carter was speaking to the Federated Farmers’ annual conference last week, when he talked about New Zealand playing to its strengths.

“We can’t go past our abundance of water or New Zealand’s ‘liquid gold’.”

Despite difficult fiscal conditions, he pointed to the Government’s fronting with $35 million for the Irrigation Acceleration Fund to 50:50 fund the feasibility studies of schemes around New Zealand.

“The Government’s also committed $400 million through the Future Investment Fund to invest as a cornerstone shareholder in large water storage and irrigation schemes.

“We are making progress, particularly in Hawke’s Bay, Canterbury and Otago, but achieving consensus of all the various stakeholders means progress is slower than I would like.”

Most important aspect

David Carter, NZ Primary Industries MinisterIn his speech, the primary sector was referred to as “the most important aspect driving our economy forward.

“The healthy performance across most of the primary sectors has enabled our economy to weather the storms of the global financial crisis and, locally, the Canterbury earthquakes,” he said, pointing to the fact that the primary sector now makes up 71 percent of New Zealand’s total merchandise export trade.

Carter referred to the EU’s “major challenges” and the “subdued” US, which in the past would have had a huge impact on New Zealand. New Zealand is fortunate to have repositioned itself so significantly with Asia, he said.

“We are well on the way to realising the Prime Minister’s ambition, which is shared by China’s leaders, to double our bilateral trade to $20 billion by 2015. The government’s trade agenda, led by Tim Groser, has the potential to deliver more opportunities to primary producers and exporters.”

Talks with eight other Trans-Pacific Partnership countries, including new partners Mexico and Canada, and also Russia, India, South Korea and the Gulf States “and you sense the size of the potential prize,” he told delegates.

The Minister had just returned from Russia, with which free trade negotiations are progressing. Two-way trade is currently worth about $700 million. “But, if a deal is reached, it will be Russia’s first international trade deal and our exports will grow significantly,” he said.

Highly regarded

“One of the things that was reinforced to me during my trip was how highly regarded New Zealand is internationally. We are renowned as producers of some of the best food in the world, at a time when food security is the world’s greatest challenge.”

The Minister also referred to the importance of biosecurity, local government reform, rural broadband initiatives and a new animal welfare toolkit for farmers being launched by the Ministry for Primary Industries in his speech.

 

Livestock tracing scheme live

Posted on by
Reply

David Carter, NZ Primary Industries MinisterIt’s happened at last. Today’s the day when New Zealand’s new National Animal Identification and Tracing (NAIT) scheme goes live, which will be welcome news for meat exporters.

The new National Animal Identification and Tracing (NAIT) Act, which comes into effect today, sets out the legal framework for the collection of information on livestock, their location and movement history throughout their lifetime. It also outlines the governance arrangement and powers for the NAIT organisation.

The scheme is mandatory for cattle from 1 July 2012 and for deer on 1 March 2013.

Under the NAIT scheme, cattle and deer are tagged with an electronic NAIT-approved RFID ear tag and the NAIT database stores information about each animal’s individual RFID number, its location and the contact details of the person in charge of the animal.

Announcing the news, Primary Industries Minister David Carter says: “NAIT is an important partnership between industry and the Crown which began eight years ago in recognition of the growing need for better animal identification and tracing systems.”

The Minister is delighted that over 30,000 producers and their properties are already registered on the database, which he says is a significant step in protecting New Zealand’s farmers in the international marketplace.

“Lifetime animal traceability is an asset that New Zealand can leverage as part of its international reputation for producing food to the highest standards. It is also an opportunity for farmers to increase productivity by identifying superior animals.”

In the case of a biosecurity outbreak affecting livestock, NAIT will enable a quick and efficient response reducing the impact on the agriculture sector and the entire NZ economy.

Congratulations to the Smiths

Posted on by
Reply

Congratulations go to Otago sheep and beef farmers Blair and Jane Smith for winning the national title in the 2012 Ballance Farm Environmental Awards earlier this week.

The Smiths were awarded the Gordon Stephenson Trophy, having been chosen from nine regional supreme winners.

The award is sponsored by Beef and Lamb NZ Ltd (B+LNZ) because of its focus on showcasing farmers working sustainably and caring for the environment, says B+LNZ chief executive Scott Champion.

“This is the second year in a row that sheep and beef farmers have won the national trophy – Grant and Bernie Weller of Southland won it last year and undertook a B+LNZ-supported visit to Europe where they met industry representatives in key markets and had the opportunity to share their farming practices.

“We will be working with Blair and Jane Smith in the months ahead to ensure their great story of farming in an environmentally, economically and socially sustainable way is heard both within and beyond the sector,” says Champion.

Read more about the Smiths and their award here.

Innovative waste reduction project? Apply here

Posted on by
Reply

Meat companies developing initiatives that increase the reuse, recycling or recovery of waste material are among the organisations being invited to apply to the Waste Minimisation Fund.

“This is a chance for organisations with an innovative project to apply for support from the government to give their project a head start,” Environment Minister Amy Adams says.

Since the first funding round opened in 2009, the fund has awarded about $20 million to more than 60 projects.

To receive funding, projects need to increase resource efficiency or reduce the amount of waste sent to New Zealand’s landfills. The current round is open until 19 June.

Money for the WMF comes from the waste levy charged on material disposed of at New Zealand landfills.

For more information about applying for the fund, click here.

Praise for industry’s animal welfare approach

Posted on by
Reply

Primary Industries Minister David Carter has praised the Primary Industry Chief Executive’s Animal Welfare Forum for its contribution to animal welfare.

Carter attended the biannual meeting of the Forum recently and endorsed the group’s 2012 plan.

“New Zealand’s major livestock production industries are taking a responsible approach to animal welfare standards through encouraging voluntary compliance and proactive initiatives,” he said.

One of the Forum’s key 2012 projects involves working with farmers, meat processors, transport operators, private veterinarians and MAF to ensure that all transported animals are fit for transport. The group is also focusing on the on-farm welfare and transportation of bobby calves for slaughter.

David Carter, Minister for Primary Industries

Mandatory livestock tracing one step closer

Posted on by
Reply

A Bill to deliver electronic national identification and tracing of livestock passed its third and final reading in Parliament In February.

Primary Industries Minister David Carter says the National Animal Identification and Tracing (NAIT) Bill is a significant step in protecting farmers in the international marketplace and strengthening New Zealand’s biosecurity system.

The NAIT bill sets out the legal framework for the collection of information on livestock, their location and movement history throughout their lifetime. It also outlines the governance arrangement and powers for the NAIT organisation.

“NAIT needs to be mandatory to be effective,” the Minister says. It will begin with cattle on 1 July this year and deer by 1 March 2013.

“With most other agricultural producing nations already having computerised tracing of individual animals, New Zealand simply cannot afford to lag behind,” he said, adding that NAIT is essentially an insurance policy to support New Zealand’s high livestock health status and biosecurity infrastructure, but can also be used to further improve productivity and on-farm management.

The meat industry supports the introduction of NAIT as it will give greater assurance to customers of the wholesomeness of New Zealand meat products.