Toasting the Fieldays

I can’t let mid-year go by without reflecting on one of the most important events in the agricultural calendar – the National Fieldays at Mystery Creek.

The healthy relationship between farmers and Government was clearly evident on the day the Prime Minister and I attended Fieldays. Everyone we met on that wet Wednesday was welcoming and positive.

One reason for the vote of confidence was the Primary Growth Partnership initiative I announced on Budget Day.

PGP will deliver significant economic growth and sustainability across the primary sector. Continued economic growth in the primary sector is especially important in these tough economic times, and so is adaptability and resilience.

Hamilton, home of the Fieldays, is also the centre of dairy farming. The pressure the dairy sector is currently under was apparent, but so was farmer resilience.

With the reduced payout and drop in land prices, some in the dairying sector are struggling, but farmers I met over the day remained optimistic about the future.

Good farmers will refocus in times like these. Spending will be at a minimum.

According to Fieldays’ organisers, there was a shift in spending from large capital expenditure to maintenance. Sales weren’t as high as last year but the majority of exhibitors’ expectations were exceeded. So, if Fieldays is a yard stick for the market we should be cautiously optimistic and confident our sensible and business-driven farmers will lead New Zealand’s recovery.

Budget focus on innovation for agriculture

The primary sector is where this country's natural advantage lies.

As the global population increases, the world must produce more food. There are reports that by 2060 the world will need to produce twice as much food from less land. Ultimately, much of this production increase will have to come from smarter technologies and efficiencies in farming.

We cannot rely on research and development of previous decades.

Put simply, key to maintaining our status as market leaders in agriculture is continued innovation – this is something we must never take for granted.

It is the reason National promised substantially more money for primary sector innovation and why we have delivered it with Budget 2009.

We are boosting growth and innovation in the primary sectors through the funding of the Primary Growth Partnership (PGP).

PGP is a government-industry partnership that will see investment in significant programmes of research and innovation in New Zealand’s primary and food sectors, including forestry.

In the first four years of the Primary Growth Partnership alone, the Government will make $190 million available alongside matching industry investment. From 2013, the partnership will see the Government investing $70 million annually in primary sector innovation.

The scope of the Primary Growth Partnership initiative includes pastoral and arable production; horticulture; seafood; forestry and wood products; and food processing.

This government is here to help, not to hobble industry. We will remove obstacles rather than create them and provide leadership to ensure the primary sector's success and development in the future.

The primary sector is the engine room of our economy and the Primary Growth Partnership will be an important incentive in helping Government and industry to lead New Zealand out of recession.

Resilience and determination

I was able to congratulate some of New Zealand’s true custodians on Saturday night as the guest of honour at the Century Farm Awards, held in Lawrence, Central Otago.

Thirty-two faming families were celebrating the milestone of farming their properties for more than 100 years and some for more than 150 years.

These families represent the great things about New Zealand farmers - past and present – that is, resilience, adaptability, gritty determination and a love of the land.

The families honoured have farmed through two world wars, the Great Depression, Britain’s entry to the European Economic Community, the oil shocks of the 1970s and the elimination of government subsidies in the 1980s.

On top of that, they are now farming through the current global recession.

As a first generation farmer I truly appreciate what an achievement this is.

Spelling it out

In recent weeks there has been heated debate on the issue of live sheep exports for slaughter.

There have been claims that a “six-year moratorium” has been lifted and that the Government is resuming the live sheep for slaughter trade next month. This is simply not the case.

An irresponsible claim by the Green Party, in March, fuelled speculation that I, as Agriculture Minister, had opened the doors to live exports with total disregard for New Zealand’s reputation as a responsible exporter.

And, worse, with complete disregard for the very high bar we set on animal welfare issues.

Last weekend I spoke at the national conference of the Royal New Zealand Society for the Prevention of Cruelty to Animals. I know many of their members are worried about the issue – I have responded to hundreds of letters – and I was keen to spell out the real facts.

New Zealand stopped livestock exports to Saudi Arabia following a horrific incident involving Australian sheep on the Cormo Express in 2003. Since then, the governments of Saudi Arabia and New Zealand have had ongoing discussions about opportunities around the export of live sheep for slaughter.

This was not begun under National’s watch; the talks were initiated by the previous government. They must be honoured, but for trade to resume there are two matters to satisfy - one is the transport of stock (a very long journey by any standards), and the other is around humane, commercial slaughter on arrival. These are two very, very high hurdles to meet.

I want to absolutely assure you that New Zealand’s reputation as a responsible exporter will be maintained.

The fact is New Zealand will not be resuming a live sheep for slaughter trade any time soon. The export of livestock to Saudi Arabia for slaughter will remain prohibited unless New Zealand is totally satisfied that the highest animal welfare and animal safety standards are met both on the journey and on arrival.

As Mahatma Gandhi once said, “The greatness of a nation and its moral progress can be judged by the way its animals are treated.”

New Zealand is a great nation and I will not recklessly jeopardise our hard-earned reputation.

Rain but no relief

The trouble with a winter drought is that it’s hard to explain to those that don't farm.

I visited Gisborne and met with the local drought committee on April 20 and announced government assistance for drought affected farmers in the region. The announcement was made as it rained.

The fact of the matter is these farmers are going into their third year of drought; with soil temperatures dropping, rain is too late for grass growth. The positives, in contrast to last year, are the price of store stock is up, the price of supplementary feed is down, and the region’s farmers do not have to compete for feed with other drought stricken areas.

The North Island’s East Coast seems to be the only area in New Zealand that hasn't enjoyed a reasonable autumn. I have done a fair bit of travelling over the past month and farmers up and down the country are generally very positive, despite the global economic situation.

For good reason, I too am optimistic. The New Zealand primary sector has some great things going for it and, as I have said before, it will be the primary sector that leads New Zealand's recovery.

Ways with wool

Strong wool is the one area in agriculture I have identified as needing to pull its socks up quick-smart.

It is a disappointment to me that the drive seems to have disappeared out of our strong wool industry restructuring. This is despite substantial investment of time and money by industry leaders and taxpayers.

Conversely, I am an admirer of what Merino New Zealand has achieved with fine wool. This model of innovation is exciting. It has changed the perception of fine wool through research and innovation, supply chain expertise and marketing.

The decline in strong wool prices is unsustainable. I know some farmers are finding it is costing more to shear their wool than they actually receive for the product itself.

As consumers demand products that are natural and environmentally sustainable I wonder where we have gone wrong. New Zealand wool is a natural product that has attributes that outweigh many synthetic products. We must maximise these opportunities, because synthetics are certainly not produced naturally.

I appreciate the timing of strong wool proposals from Wool Partners International and Elders Wool Marketing Enterprises have clashed with the international credit crisis but the reality is, economically, sheep farmers are in a better position than they have been for years.

With stable sheep meat prices, and the drought over, we are in an ideal position to invest in strong wool.

I believe the timing is right - Merino New Zealand has shown us the model, there are two options on the table, both radically different approaches to the status quo.

It is not my role as Agriculture Minister to tell farmers which option to take, but I will say, doing nothing is not an option.

Tree hugger

As Minister of Forestry and Minister for Biosecurity, I have a special interest in these portfolio areas. The significance of both forestry and biosecurity was further confirmed to me during visits to both to Tauranga and Rotorua over the past month.

Apart from forestry’s economic role in sustainable development, it is valued for recreation and its place in the landscape. Due to the value we, as a country, place on this resource, getting biosecurity right is also critical. The arrival of a major forestry pest or disease would be devastating.

It is for this reason the New Zealand Government is committed to improving our already internationally well regarded biosecurity system, which is vital to primary industries and to New Zealand as a whole.

My recent Rotorua trips have been in relation to Scion, the Crown Research Institute that is recognised as a leader in forestry science.

I firstly toured Scion facilities and secondly opened an international workshop on forestry and biosecurity.

Scion is doing some great work. Wood has such potential in markets that are increasingly demanding environmental sustainability.

One of the new projects that amazed me was a smart packaging product – a biodegradable wood replacement for polystyrene – about time we had an environmental friendly packaging for whiteware you might say.

While in the Bay MAF Biosecurity took the opportunity to show me around the Port of Tauranga where I looked at biosecurity, surveillance and monitoring of forest plots.
Around the port is a high biosecurity risk area. I was impressed with the systems that have been established to monitor any incursions that might breach our border.

It is impossible for any country, even a geographically remote island nation like New Zealand, to isolate itself from all risks of imported pests and diseases.

For this reason it was especially relevant for me to be part of the international biosecurity and forestry conference hosted by Scion just a few weeks later. The conference was about promoting global cooperation in forest-related research and enhancing the understanding of the ecological, economic and social aspects of forests and trees.

Significant benefits to New Zealand will result from links with international science, particularly as biosecurity is so important to New Zealand’s economy and society.

Good for the environment is good for business

This morning I launched the latest Dairying and Clean Streams: Snapshot of Progress.

When it was developed back in 2003, the Dairying and Clean Streams Accord was a welcome initiative.

Farmers are implicitly connected with their land. Their land is also their business and they are motivated to take care of, and preserve their number one asset. For this reason they are constantly trialling new and better ways of doing things.

Five years down the track, the Accord is still one of the key indicators of the desire in the dairy industry to improve water quality.

The Accord results reveal three targets are well on track for 2012. These include: exclusion of stock from waterways; bridging and culverting; and adopting nutrient budgets. I congratulate the dairy farmers of New Zealand on these results and welcome the progress made by the dairy industry in cleaning up rivers and streams on dairy farms.

But I also used this opportunity to send a strong message to farmers who refuse to toe the line.

The small number of dairy farmers who ignore effluent disposal requirements are damaging the reputation of the dairy industry as a whole.

It is simply unacceptable to pollute. Not only does it antagonise environmental organisations but also wider New Zealand. More importantly, it risks the hard-gained reputation that New Zealand Inc. has established in our international markets.

I am expecting an improvement in the progress on this target because clean fresh water is of intrinsic value to farmers; we can't do business without it.

Agriculture - New Zealand's Super Hero

I thought this cartoon by Guy Body in yesterday's New Zealand Herald hit the nail on the head. Yes, agriculture is absolutely important to New Zealand and the key to recovery from the current economic climate.

An honourable profession

According to the Readers Digest, vets rank in the top ten of New Zealand’s most trusted professions. In fact, they rank number seven, two ahead of teachers, two behind doctors and three behind nurses.

As both a farmer, which ranks 13 on the list, and a politician, which ranks 39, it was with great pleasure last week I announced the Government’s new Graduate Bonding Scheme with my colleagues, Education Minister Anne Tolley and Health Minister Tony Ryall. See full New Zealand’s most trusted professions list.

The initiative addresses shortages of vets, doctors, midwives, nurses and teachers.

Rural areas can face greater challenges recruiting and retaining professionals due to isolation and remoteness. As Minister of Agriculture, one of the areas I will be focusing on is strengthening rural communities. The combined effect of the new graduate bonding scheme will do just that.

As I will tell the Veterinary Council tonight, when I open their new premises in Wellington, the voluntary bonding scheme for vets will see new graduates taking on rural practice, gumboots and all.

The scheme is targeted at rural vet practices working with farmed animals and encourages new graduates to stay on by providing a taxable payment of $11,000 each year, for up to five years.

More on the Vet Bonding Scheme.