Investment needed for NZ red meat sector
Investment needed for NZ red meat sector to realise sustainable advantage – industry report
Increased investment into the ethical and sustainable aspects of New Zealand’s red meat production systems can deliver a range of benefits for the sector, according to a recently-released report by agricultural banking specialist Rabobank.
In the report, Realising the Sustainable Advantage: How investments in sustainability can benefit the New Zealand red meat sector, Rabobank says in order to address local concerns about the impact livestock farming is having on animals and the environment, regulation of the New Zealand agricultural sector is set to tighten over the next 12 to18 months, requiring the industry to invest more into the ethical and sustainable aspects of its production systems. However, this investment can pay strong dividends to the sector by helping to mitigate risks and providing future market opportunities.
“While it will be challenging in the short to medium term for the sector to pass on the associated cost increases to New Zealand’s offshore customers, changing global trends and market requirements ensure there are benefits to be realised from this investment,” report author, Rabobank animal proteins analyst Blake Holgate said.
“These benefits include risk mitigation measures which will help to future proof the red meat sector, as well strategic advantages that position the industry to unlock new markets, develop long-term supply arrangements and influence the direction of future regulation.”