Opinion
There is a lot being said currently about the environment, meeting emissions targets, RMA reforms, fresh water regulations and on they go.
I talk a lot about (through the influence of no one I might add), about pine trees, on farm sequestration and it’s recognition in full, I do this because for me it’s about ensuring two parts of an equation are present and calculated, which in the case of sequestration is about finding a net emission profile on farm, and I look at all these things through a lens of the farmer with a long term view of a sustainable industry.
I do this because I value the primary industry as this country’s most important asset and I am proud of our nation's farming and export trading history. And I believe it will continue to drive this nation's export earnings for many decades to come.
In the year to June 2022 this country's Primary industry provided the following revenue to New Zealand’s economy:
- Dairy export revenue increased 15% to $22 billion in the year to 30 June 2022. This increase was driven by reduced supply from key dairy exporting regions and firm demand from dairy importing nations.
- For the year to 30 June 2023, dairy exports are forecast to increase 6% to $23.3 billion. This is due to a weak New Zealand dollar, the previous season's inventories being sold in the current year and reduced supply from key dairy exporting regions.
- Meat and wool export revenue increased 18% to reach $12.3 billion in the year to 30 June 2022, due to tight supply, demand rebounding, and higher prices.
- Meat and wool export revenue for the year to 30 June 2023 is forecast to increase by 1% to $12.4 billion due to higher production, despite weaker demand placing downwards pressure on prices.
- Forestry export revenue increased 1% to $6.6 billion in the year to 30 June 2022, driven by record high pulp prices offsetting a drop in demand for logs.
- For the year to 30 June 2023, forestry export revenue is expected to remain flat at $6.6 billion, as a weak New Zealand dollar offsets reduced demand.
- Horticulture export revenue increased 3% to $6.8 billion in the year to 30 June 2022, driven by larger kiwifruit export volumes and higher export prices for wine.
- Export revenue is forecast to increase 5% to $7.1 billion in the year to 30 June 2023.
- Seafood export revenue increased 8% to $1.9 billion in the year to 30 June 2022, driven by high export volumes with the return of tourism and growth in food service.
- Seafood export revenue is expected to increase 4% to $2 billion for the year to 30 June 2023.
- Arable export revenue decreased 3% to $252 million in the year to 30 June 2022, driven by lower export volumes on the back of a difficult harvest from unfavourable weather conditions.
- For the year to 30 June 2023, arable export revenue is expected to increase by 5% to $265 million. This is mostly due to higher vegetable seed prices, which reflects rising production costs.
- Export revenue from processed food and other products increased 4% to $3.2 billion in the year to 30 June 2022, led by a 15% increase in the category 'other products'.
- For the year to 30 June 2023, processed food and other products are expected to increase by 3% to $3.3 billion.
- $53 bln in total export revenue (14% of GDP) and close to 400,000 jobs (14% of the employed labour force).
With a GDP of $380 bln and a population of just over 5 million it’s not hard to see how important the Primary industry is to this country.
I am going to mention trees again and in particular Carbon Farming, I get hundreds of emails and messages every week about carbon farming, most see a long term problem with carbon farming and I get a few that think it’s marvellous and who use choice language in their support of carbon farming.
But if we lose food producing country to carbon farming we are in my view shooting ourselves in the foot, we will see a significant drop in not only food production and revenue generated for this country, but hundreds of thousands of jobs will be lost and our rural communities will be decimated.
Rural landscapes will change for the worse, biodiversity will be lost, and a sea of monoculture will prevail.
If we are chasing emission reduction targets then why are we allowing 100% of offsetting? Does this drive innovation or drive change in large emitters output?
The answer is no. It undermines the integrity of New Zealand’s biggest earner and a sector that employs 400,000 people by essentially dumping pollution onto farmland, that provides no significant benefit to the country in real terms.
We need to decide what our future looks like and we need to decide if it’s a band-aid solution through carbon farming, or shoring up our future through further improved efficiencies in our current farming systems and improving farmgate returns by further developing our international markets.
We are the most efficient farmers in the world, farmers need recognition and increased returns for what is grown in this country. It’s time for the Government to get in behind the earners of New Zealand rather than continued efforts to make the job harder.
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Angus Kebbell is the Producer at Tailwind Media. You can contact him here.
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