Primary Industries in New Zealand
MPI manages systems
• New Zealand Primary Industry: A Snapshot
• New Zealand primary sector reforms
• The role of industry
• The role of MPI
• Development policy
Overview
MPI manages systems
Pastoral farming dominates – as at June 2014: – Sheep: 29.9 million – Beef cattle: 3.63 million – Dairy cattle: 6.7 million
(5.26 mil in calf or milk) – Deer: 0.94 million
Horticulture is increasingly important – Wine grapes: 311 000 tonnes – Wine: 190 million litres
Arable farming – Barley: 65,700 hectares – Wheat: 54,800 hectares
Fisheries – Commercial fish catch: 418,307 tonnes
New Zealand Primary Industries: A Snapshot
MPI manages systems Land Use in New Zealand
Total land area of New Zealand: 27 million hectares
New Zealand
Japan
UK
Philippines
Denmark
Germany
Italy
0
50
100
150
200
250
300
350
400
0 20 40 60 80 100 120 140
For its size New Zealand has a very small population ...
Lan
d a
rea,
km
2
Population, millions
Countries by land area population; km2 and millions of people
...so we produce a little and export a lot
7
Product % Exported % of World Production % of global trade
Dairy >90% <3% 33%
Beef 83% 1% 8%
Sheepmeat 90% 6% 75%
Wool 90% 14% 27%
Venison 98% n/a 50%
Kiwifruit 95% 21% 32%
Pipfruit 55% 1% 5%
Wine 70% 0.46% 2%
MPI
• 2013/14 – actual $18.06 billion
• 2014/15 – forecast $13.83 billion (-23.5%)
• Forecast to be 23.5% lower than historic high in 2013/14
• Larger than expected drop in international dairy prices
• Forecast sector farm gate price of $4.82 kg/milk solids to
June 2015
• 2025/16 – forecast $14.54 billion (+5.3%)
• Growth in demand from China as high inventory utilised
• Global production up this season, exceeding growth of
global demand
Dairy export revenue
Agricultural products export markets
Share of export goods by destination; YE June 2012 Source: Statistics New Zealand, Global New Zealand (2012)
Pacific Islands 3%
Australia 22%
China 13%
North-East Asia (excl. China)
14%
South-East Asia 10%
Southern and Central Asia
4%
Other 13%
North America
10%
Europe 11%
Asia 41%
Support levels
Historically farmers received little direct support; removing subsidies introduced in the 70s and early 80s was politically and economically difficult
1960s
1970s
1980-84 Post 1984
Past agriculture reforms in New Zealand
The removal of subsidies helped create a more competitive, innovative and productive agricultural sector
0.4
0.6
0.8
1.0
1.2
1.4
1.6
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
Ind
ex (
1996 =
1.0
)
Kg lamb per ewe
Milksolids per cow
Multi-factor
productivity
MPI manages systems
• Farms are privately owned and operated businesses
• Farmers’ production decisions and market returns are
dictated by the domestic and overseas markets, not the
government
• Sales depend on meeting customers’ expectations of price
and quality
• Production is efficient, profitable and sustainable
• Farms are getting bigger but fewer of them
• Family ownership still dominates, but more complex
management
Modern Farming in New Zealand
Policy and regulatory
advice
Food safety
Biosecurity Protect NZ’s economy, environment and human health from pests and diseases.
Safeguard consumers from the risks of food-related illness; protect NZ’s reputation as a producer of safe food.
Advise Government on policies for natural resource management, animal welfare, environmental issues, market access, productivity enhancements, trade and bilateral relationships.
MPI’s Work – Key Elements
MPI manages systems The Biosecurity System
RISK ENTRY
POINTS
Imports
Vessels
Passengers
Air
Sea
● International agreements
● Import risk analysis
● Border standards
● Pest risk analysis
● Pathway risk analysis
● Clearance standards
● Mail, passenger and goods
inspection
● 0800 pest and disease
hotline
● Internal border and path-
way management
● Response
● SURVEILLANCE
RISKRISK
RISK
PRE-BORDER BORDER POST-BORDER
Activities for Risk Reduction and Trade Facilitation
Food Safety Regulatory Model
MPI manages systems Sanitary and Phytosanitary measures
- Free Trade Agreements and SPS chapters
- Joint management committees
Trade policy
- WTO rules-based trade
- Cairns Group
Cooperation
- Capacity building
- Mutual recognition
Agricultural trade relationships
MPI manages systems Commodities Levies Act
- Industry organisation
Sustainable Funding Fund
- Communities of interest
Primary Growth Partnerships
- Long term innovation with potential industry-wide benefit
Irrigation Acceleration Fund
- Regional rural water infrastructure
Productivity policies
Thank you!