Hon. David Carter
Speech - 10 JULY, 2009

Food Security in a Changing Global Environment

Thank you for the opportunity to speak to you this morning. It is a great privilege and honour to be able to present to such a respected institution as Chatham House. Today I want to cover New Zealand's progress in ensuring food security in a changing global environment.

If it wasn't for the worst economic conditions since the 1930's, there would be a lot more focus on our topic this morning.

Putting aside the great work that Andrew and others are doing here at Chatham House, this issue has sadly slipped off the radar for many people in recent months.

Economic stability will return though, and then the focus must come back to the challenge of feeding a rapidly increasing world population - a fact well recognised this week with a proposal emanating from the G8, to spend US$12 billion on the development of food production in some of the poorer developing nations.

Although New Zealand is a very small country it, of course, has a huge interest in agricultural development, anywhere in the world.

We are already a highly productive country, blessed with an abundance of water. So we stand ready to play a role in passing on agricultural expertise, something that we are justifiably recognised for.

But first, I want to comment on the danger of the world not proceeding with the Doha Round and trade liberalisation, and even worse, the recent trend for countries to consider the re-introduction of export subsidies.

I can understand the political pressure from the European farmer constituency who genuinely fear for their economic survival, particularly after they have lived with taxpayer support for years.

I experienced the same fear in the 1980's as a New Zealand farmer. All government agricultural support was removed literally overnight.

When I subsequently analysed my accounts, I was astonished to find that 43% of my income was, in fact, government support. Taxpayers allowing me to farm.

The transition was painful. But 20 years on, I challenge you to find a farmer in New Zealand who would want to revert to being financially supported by central government.

Rather, New Zealand farmers have become totally focused on rational economic decisions, and we have experienced 20 years of impressive on-farm productivity gains.

Productivity of our breeding ewes has risen over 60% since 1991. Milk production from our dairy herds by over 20%.

Give the right signals, and other countries can do the same.

This has led to a huge change in the way New Zealand's agricultural goods are now positioned in the world market. We are no longer a low-cost producer. That mantle has passed to countries like Uruguay and China.

New Zealand's brand has shifted to a higher cost, higher quality product aimed at a more discerning customer. A customer with a conscience who demands integrity. Let me expand on this integrity.

In the last 10 years, our customers, both domestic and international, have started to ask searching questions around the environmental impact of our agricultural systems.

In this regard, my message to New Zealand farmers is clear - no farmer has a right to pollute.

Animal welfare is also critical. In this debate, science may well be overshadowed by emotional perceptions. But at the end of the day, the customer is always right.

The third leg to integrity is an absolute assurance of food safety. Purchasing food is an act of faith. Breach that faith and expect no mercy from the market.

With the New Zealand economy so dependent on food production and international marketing, you can imagine our focus on these issues.

So can we play a part in tackling global food security?

We can, and we are willing to do so. Our Government has recently announced a major primary industry research and development initiative, known as the Primary Growth Partnership. It is a true partnership with our primary industries and will result in an annual spend of $140 million on primary sector innovation.

My determination to deliver this programme was based on a personal recognition that the productivity gains of the last 20 years, though significant, would not be enough to sustain us through the next 20 years.

This applies particularly to the area of climate change, an issue relevant to anyone who wants to seriously tackle the topic of global food security.

In New Zealand, we are still formulating the final details of climate change policy, but we are faced with some unique challenges.

New Zealand produces just one fifth of one percent - 0.02% of the world's greenhouse gas emissions - but half of our emissions are attributable to agriculture. This is a unique challenge.

This means that all food production in New Zealand impacts on our international commitments under Kyoto. It also means that if New Zealand decreases production to meet these commitments, alternative production will likely occur in other countries which, with more energy-intensive farming methods, will likely lead to a global increase in greenhouse gas emissions, achieving absolutely nothing for global warming.

Our only option is substantial investment into mitigation technology. To this end, we have recently announced the establishment of a Centre for Agricultural Greenhouse Gas Research.

Mitigation options could easily be adopted and adapted by livestock farmers anywhere in the world - and particularly in the developing world where 27% of emissions are attributable to agriculture.

I am convinced that with time and investment in research, solutions will be found to reduce emissions from agriculture without reducing productivity and production.

As more countries, particularly developing countries, accept responsibility for tackling climate change, agriculture will become an issue that needs to be more equitably addressed.

In recent months, New Zealand has proposed a Global Alliance on Agricultural Greenhouse Gas Research. Because of the urgency to find solutions, we need to encourage collaboration amongst the scientists of the world with expertise in this area.

Initial interest has been encouraging, and New Zealand will be championing this initiative at every opportunity in coming months.

I want to conclude with these comments. Climate change is a big challenge, but it is not the biggest challenge the world faces over the next 50 years. Feeding an ever-growing world population is our biggest challenge.

Key to addressing this challenge of global food security is helping those developing nations who could produce the food they need, so that they can.

The focus must be on longer term investments in farming technology in the developing world; rather than the short term option of food aid.

Despite our small size, New Zealand does have a role to play in addressing the food security challenge. We have shown ourselves to be smart and quick to adapt.

Just consider the last 60 years.

We were then Britain's food basket, with an assured market for whatever we produced, regardless of its quality. We then morphed into a heavily subsidised, but increasingly unprofitable producer.

We were dealt to in 1985 when subsidies were removed in one fell swoop. We are now richer for this experience. Our current farmers are driven by productivity gains and profitability; and we are recognised for innovation and a ‘can-do' spirit.

We are ready to play a key role in helping developing nations build the agricultural systems they require to feed their growing populations.

We are determined to make progress in the next few years in dealing with the unique challenges we face in regard to climate change. We are happy to accept our responsibility of being of assistance to other nations, particularly those that currently face the prospect of actually reducing food production, to meet climate change obligations.

I certainly don't claim that New Zealand has all the answers to food security, but we have certainly faced most of the questions. And our history shows that we have proved capable of rising to these challenges.

Thank you.

ENDS

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