Agricultural innovation answer to challenges

One of the biggest challenges the world faces in the coming decades is feeding its rapidly growing population. Growing markets, particularly in Asia, and the expansion of the global middle class, means agricultural producers will struggle to keep up with demand. The world’s biggest challenge can also be a nation’s biggest opportunity. 

As a nation of over 4 million that feeds about 40 million, New Zealand is well placed to take hold of this opportunity. New Zealand prides itself on a world class reputation for producing high quality primary produce. But this reputation is not earned simply by producing mouth-watering steaks or outstanding wines, such as the ones displayed on the banner behind me.

New Zealand’s reputation is built on trust and integrity. It is vital that we retain this, so we have developed a world leading food safety regime. It is why we carefully manage the impacts of production on our environment, and strive to have a world class animal welfare system.

We need to assure our customers that New Zealand’s produce is made in a high quality, safe, ethical, and environmentally sustainable manner. Maintaining this reputation is paramount for New Zealand’s economic future.

The New Zealand Government is focused on economic growth, particularly in the aftermath of the global financial crisis and the earthquakes in Christchurch. As Minister for Primary Industries, a key focus of mine is to boost the productivity and competitiveness of New Zealand’s primary sector.

In the 1980s New Zealand underwent a comprehensive structural reform. These reforms removed agricultural subsidies along with a wide range of other industry protections. Because of these reforms, New Zealand is now one of the most efficient agricultural producers in the world. Following these reforms New Zealand primary sector productivity has doubled. For example, today we produce the same amount of lamb meat that we did prior to the reforms, but with half the number of sheep. 

While this is good progress we need to do better. In international trade New Zealand is at a distinct disadvantage. We are a small country, with a small population, located in the middle of the South Pacific Ocean at the bottom of the world. But as I’ve said, your biggest challenges can also be your biggest opportunities. Our trading disadvantage has meant that we need to do more with less and to work smarter.

Innovation in the primary sector is a key priority for me and for the New Zealand government. That is why we launched the Primary Growth Partnership, or the PGP. The PGP is a partnership between industry and government. We jointly invest in research and innovation that will deliver long term economic growth and sustainability to the primary sector.

There is an exciting variety of projects underway, including selective mussel breeding, steep land forest harvesting, improving pasture quality and increasing the value extracted from animal carcasses.

The Prime Minister and I have a brought a number of our leading businesses with us on this trip, all on the cutting edge of agricultural innovation. 

So why have we come here? 

Mexico has astonishing potential as one of the world’s major emerging economies, on the edge of a thriving Asia-Pacific region, with strong export growth and a government focused on driving further economic growth. Trade relationships between New Zealand and Mexico are growing stronger. 

New Zealand can also learn a lot from Mexico, just as I hope Mexico can learn from New Zealand. Mexico’s reputation for a high quality horticulture industry is well known in New Zealand. I want New Zealand to be a part of the Mexico story, just as I want Mexico to be a part of the New Zealand story. 

An edited version of a speech given by Primary Industries Minister Nathan Guy to ‘Innovation in Agribusiness’ forum, Mexico.