Agriculture, Horticulture, and Forestry Domain Plan 2009

Transcription

1 Agriculture, Horticulture, and Forestry Domain Plan 2009 Agriculture, Horticulture, and Forestry Domain Plan

2 Reproduction of material Material in this report may be reproduced and published, provided that it does not purport to be published under government authority and that acknowledgement is made of this source. Citation Statistics New Zealand (2009).Agriculture, Horticulture, and Forestry Domain Plan Wellington: Statistics New Zealand Published in December 2009 by Statistics New Zealand Tatauranga Aotearoa Wellington, New Zealand ISBN (Online)

3 Preface As part of its leadership role in strengthening the Official Statistics System, Statistics New Zealand is working with other agencies to develop domain plans. The plans are an important part of the Official Statistics System and stakeholders own the development process. Statistics NZ and the Ministry of Agriculture and Forestry have worked together to develop the Agriculture, Horticulture, and Forestry Domain Plan. The purpose of a domain plan is to achieve clarity and agreement from stakeholders about the main statistical priorities and the strategy for addressing these over, at least, the next five to eight years. The domain plans will give: a long-term picture of what is required to improve official statistics a coordinated plan for addressing issues a cross-agency approach to long-term priorities. The process for the Agriculture, Horticulture, and Forestry Domain Plan involved consultation with a range of organisations both producers and users of statistics. The participation of these organisations and their support for this domain plan is appreciated. Geoff Bascand Government Statistician Murray Sherwin MAF Director General iii

4 Standards and further information Source All material in this report has been compiled by Statistics New Zealand. Input has been provided by a range of organisations. Liability While all care and diligence has been used in processing, analysing and extracting data and information in this report, Statistics NZ gives no warranty it is error free and will not be liable for any loss or damage suffered as a result of the use, directly or indirectly, of information in this report. Statistics New Zealand Information Centre For further information on the statistics in this report, and for help finding and using statistical information available on our website, including Infoshare, contact the Information Centre: info@stats.govt.nz Phone toll-free: Phone international: Fax: Post: P O Box 2922, Wellington 6140, New Zealand Website: iv

5 Contents 1 Agriculture, Horticulture, and Forestry Domain Plan summary... 1 Introduction... 1 Current information sources... 3 Gap analysis... 8 Initiatives under development or recently completed Proposed new initiatives Potential collective impact of proposed new initiatives Background information Introduction to domain plans Common characteristics of domain plans Conceptual framework for the agricultural sector Past agricultural statistics strategies and developments Agricultural statistics frameworks Introduction A framework for our frameworks Existing frameworks for farm environmental management indicators The MONET sustainable indicator typology Combining MONET and the accounting-based framework for agricultural statistics Agricultural domain enduring topics Introduction : Market access and global competitiveness : Market-led research and development : Production : Innovation, growth, productivity improvement, labour, and supply-chain efficiency : Food safety, biosecurity, and consumer concerns : Land use, changes, and demands : Environmental sustainability, biodiversity, and integrity : Rural social capital Stakeholder accountabilities Agriculture, horticulture, and forestry information sources Introduction Sources relating primarily to topic 1 market access and global competitiveness Sources relating primarily to topic 2 market-led research and development Sources relating primarily to topic 3 production Sources relating primarily to topic 4 innovation, growth, productivity improvement, labour and supply-chain efficiency Sources relating primarily to topic 5 food safety, biosecurity, and consumer concerns Sources relating primarily to topic 6 land use, changes, and demands Sources relating primarily to topic 7 environmental sustainability and integrity Sources relating primarily to topic 8 rural social capital Summarising the impact of all sources on the topics Priorities for development Gap analysis v

6 Initiatives under development or recently released Proposed new initiatives Collective potential impact of proposed new initiatives Appendix 1 Further information sources vi

7 List of tables and figures Tables by chapter Chapter 1 Agriculture, Horticulture, and Forestry Domain Plan summary 1.01 Agriculture, horticulture, and forestry domain plan topics Agricultural domain current information sources, degree to which existing data source informs topic Agriculture, horticulture, and forestry domain plan topics, degree to which current information sources meet needs, and priorities Agriculture, horticulture, and forestry domain topics, summary of likely impact and prioritisation of proposed new initiatives Chapter 3 Agricultural statistics frameworks 3.01 How MONET aligns with DPSIR model Chapter 4 Agricultural domain enduring topics related strategy/plan/report agency accountabilities related strategy/plan/reports agency accountabilities related strategy/plan/reports related strategy/plan/reports agency accountabilities related strategy/plan/reports agency accountabilities related strategy/plan/reports agency accountabilities related strategy/plan/reports agency accountabilities agency accountabilities Chapter 5 Agriculture, horticulture, and forestry information sources 5.01 Situation and Outlook for New Zealand Agriculture and Forestry Balance of payments goods Balance of payments international assets and liabilities Overseas trade statistics (imports and exports) FAO Statistical Yearbook and database Global Trade Atlas and Commodity Database World Trade Organization global tariff profiles and databases vii

8 5.08 New Zealand Meat Board customs meat data (fob) New Zealand Meat Board meat production Terms of exchange Agricultural production export receipts Wool exports International Trade in Services and Royalties Survey Quarterly International Investment Survey New Zealand horticulture barriers to export trade OECD Agriculture Monitoring and Evaluation Report and databases OECD Agricultural Commodity Outlook Biotechnology Research Roadmap Forestry Monetary Flow Account Forestry Physical Flow Account Forestry Monetary Stock Account Forestry Physical Stock Account Economic contribution of four biotechnologies to New Zealand s primary sector Case studies of research and development benefits Biotechnology Survey Research and Development Survey Overseas trade indexes (merchandise and services) Agriculture production surveys/censuses Producers price index Sawmill, panel, and pulp and paper surveys Livestock slaughter statistics National Exotic Forest Description Farm Monitoring Programme New Zealand dairy statistics International Egg Market Review No. 74: Situation and Outlook Report Vineyard Survey New Zealand Winegrowers Annual Survey New Zealand Winegrowers Statistical Annual New Zealand Winegrowers Annual Report Avocado maturity monitoring Avocado Growers Association Annual Report statistics Meat & Wool New Zealand reports DairyBase viii

9 5.44 Fresh Facts AgriBase Wool Levy database On-farm prices New Zealand domestic meat consumption Lamb Crop Survey Pipfruit industry annual statistics Annual Enterprise Survey Farm Expenses Price Index Small and medium enterprises in New Zealand: Structure and dynamics OECD Review of Public Policy Framework for the New Zealand Innovation System Business Operations Survey Linked Employer-Employee Data quarterly job-level statistics Linked Employer-Employee Data annual person-level statistics Productivity measures Livestock Improvement Corporation Annual Report Animal Evaluation System - Breeding Worth Index Premier sire lists Land transport at a glance Meeting skill needs Zespri Annual Report Business dynamics Sheep and Beef Cattle Livestock Survey Annual National Accounts Quarterly National Accounts Household Labour Force Survey Fonterra Annual Report Job Vacancy Monitor Survey of employers who have recently advertised Regional Labour Market Reports Labour Market Analysis Tools Survey of commercial sheep and beef farms Occupational shortages lists Biosecurity Organisms Register for Imported Commodities Unwanted Organisms Register ix

10 5.79 Food recall statistics Global Invasive Species Database National Typing Database General Incident Register Information Leader Verification Agency FoodNet Database Agricultural production series of prices and costs Agricultural and land-use statistics National Livestock and Land Use Reconciliation National Land Cover Database Population projections and estimates New Zealand Land Resource Inventory A Study of Smallholdings and their Owners Energy and Emissions Physical Flow Account The Carbon Dioxide Budget of the New Zealand Grape and Wine Industry New Zealand Greenhouse Gas Inventory Queen Elizabeth II National Trust Energy Data File Environment New Zealand Food and Agriculture Organisation Fertiliser Usage Energy Greenhouse Gas Emissions Environmental indicators for agriculture Environmental Performance Review of New Zealand National Vegetation Survey Databank Mapping the structure of the New Zealand food and beverage industry Census of Population and Dwellings Work-related injury statistics New Zealand Living Standards reports Network Statistics Household Use of Information and Communications Technology Survey Deprivation Index Stocktake impact matrix for agriculture, horticulture, and forestry domain Chapter 6 Priorities for development 6.01 Gap assessment and improvement priorities for agriculture, horticulture, and forestry domain National Animal Traceability Initiative x

11 6.03 Agricultural productivity measures Including land-use information in the greeenhouse gas inventory Employment data by detailed industry and occupation level Regional seasonal labour surveys General Social Survey Childcare Survey Business structure Business dynamics Agriculture labour utilisation Human and social capital dynamics Farm scale efficiency investigation Soil erosion and health, and farm management Farm ownership and investment Trading of agricultural services and intellectual property New products into the market On-farm innovation Definition and classification for land-use information Linking agricultural production to financial and business data Differentiate value-added in exports Compile non-tariff barriers, by country Link agricultural production and geospatial data Loss of productive land Water allocation, use, and quality, by region Pesticide use and management Levels of investment in agriculture Measure agriculture s impact on environmental sustainability Agriculture, horticulture, and forestry domain topics, summary of likely impact and prioritisation of proposed new initiatives, by initiative type Appendix 1 Further information sources 1 Annual agricultural credit series Monthly agricultural credit series Energy Use Survey: primary industries, Figures by chapter Chapter 2 Background Information 1 Conceptual framework for agricultural statistics xi

12 Chapter 3 Agricultural Statistics Frameworks 2 A framework for our frameworks Existing agricultural statistics framework and audience model DPSIR framework for developing farm management indicators MONET indicator typology Agricultural statistics measurement framework Stakeholder matrix for agriculture, horticulture, and forestry domain xii

13 1 Agriculture, Horticulture, and Forestry Domain Plan summary Introduction As part of its leadership role in strengthening the official statistics system, Statistics New Zealand is developing domain plans as a key part of working together with other agencies to improve official statistics. Agriculture, horticulture, and forestry is one domain (sometimes referred to as the agricultural domain). The scope is mainly restricted to quantifying the productivity and sustainability of New Zealand s naturally advantaged land-based agricultural activities, which have long been the cornerstone of the country s economy. As the principal user of natural capital, agriculture is closely interwoven with the environment, and so are the respective domain plans. The scope also incorporates the key infrastructural elements that support this highly export-based sector, and the rural-based agribusinesses and communities where one in seven New Zealanders live. A domain plan looks out five years and beyond to clarify: What are the enduring topic or policy areas that need to be informed by official statistics? What data sources and information currently inform these topic areas? What are the statistical challenges that limit the ability to get the information needed? What topics are most in need of enhancement and what initiatives could be undertaken? The Agriculture, Horticulture, and Forestry Domain Plan has been jointly developed by Statistics NZ and the Ministry of Agriculture and Forestry. The process involved consultation with organisations that included the Ministry for the Environment, Department of Labour, Ministry of Economic Development, Ministry of Foreign Affairs and Trade, and Meat and Wool New Zealand. A series of enduring topics was developed from policy and other documents, plus input from those involved in the consultation. A stocktake of information sources that feed into the topics was undertaken. This was followed by a series of workshops where the enduring topics were discussed, along with the range of information available. Information gaps were identified and initiatives developed to meet these gaps. A later workshop with senior managers in key stakeholder organisations reaffirmed these information gaps and the initiatives developed, and agreed on priorities for future action to progress the initiatives. This was followed by final consultation with stakeholders who had been involved previously, plus other organisations in the agriculture, horticulture, and forestry sector. 1

14 Proposed enduring topics for agricultural statistics The table below summarises the topics relevant to the agricultural domain. It also gives a broad assessment of the relative complexity of each topic from a statistical perspective and a traffic light indication of how well each topic is currently informed (Green means the topic area is fully met = A, or mostly met = B; amber means the topic is partly met = C; and red means it is barely met = D, or not met = E). Table 1.01 Agriculture, Horticulture, and Forestry Domain Plan s and information need 1 Market access and global competitiveness: To what extent are we continually enhancing our natural advantage by improved market access to the world s most discerning markets, and the niche marketing of added-value agri-based products and services, at premium prices? 2 Market-led research and development: How successful is our investment in life sciences and material sciences R&D in bringing to market a wide range of differentiated value-added products from our primary production base? 3 Production: What are the production levels of our livestock, cropping, forestry, and horticultural industries and how are these distributed by soil type, climate zone, and region? 4 Innovation, growth, productivity improvement, labour, and supply-chain efficiency: What productivity gains and financial returns are being achieved in the agricultural sector? How efficient are our processing, storage, transportation, labour, provision and uptake of tertiary agricultural education, ICT, industry structures, and other supporting infrastructure, in maximizing industry returns and mitigating risk? What is the financial contribution and performance of all farmtypes in the agricultural sector? 5 Food safety, biosecurity, and consumer concerns: How good is the agricultural sector in managing food safety, and in anticipating and mitigating technical barriers to trade (for biological products) based on biosecurity issues and consumer concerns? 6 Land use, changes, and demands: What are New Zealand s patterns of land-use change and what are the key drivers (including climate change)? What are New Zealand s forest reserves, and what are the dynamics of afforestation and deforestation by species? 7 Environmental sustainability, biodiversity, and integrity: How sustainable are our farm-management practices including animal health and welfare and are farmers and other users factoring in the full social cost of natural resources consumed? What is the agricultural sector doing to reduce greenhouse gas emissions and/or compensate through environmental enhancements and maintaining biodiversity? Relative complexity high medium high extreme medium medium extreme Gap severity 2

15 8 Rural social capital: What makes up our rural society (including the capital structure of farming enterprises)? How well serviced are New Zealand s rural communities and what is their overall state of social well-being compared with urban New Zealand? high Current information sources Table 1.02 lists the main current sources of information related to agricultural topics and which sources inform which topics and to what degree. Where a data source appears multiple times (eg as a published data source as well as in a report), credit is assigned to the original data source, and later publications are given additional credit for the extra value added, such as from analysis, integration, and interpretation. Table 1.02 Agricultural domain current information sources Degree to which existing data source informs topics (KEY: 9 = profound; 6-8 = high; 3-5 = medium; 1-2 = low; blank= negligible ) 1 Market access and global competitiveness 2 Marketled research and development 3 Production 4 Innovation, growth, productivity improve ment, labour, & supply chain efficiency 5 Food safety, biosecurity and consumer concerns 6 Land use, changes, and demands 7 Environmental sustainability, integrity, and biodiversity 8 Rural social capital Administrative byproduct data Overseas trade statistics Agricultural production series of prices and costs Biotechnology research roadmap Balance of payments goods Balance of payments international assets & liabilities Overseas trade indexes Forestry Monetary Flow Account Forestry Physical Flow 2 2 3

16 Account Forestry Physical Stock Account Forestry Monetary Stock Account Producers price index Livestock slaughter statistics NZ dairy statistics Animal Evaluation System breeding worth index Premier sire lists Annual national accounts Quarterly national accounts Energy and Emissions Physical Flow Account Agricultural and landuse statistics Work-related injury statistics Productivity measures 1 2 NZ Meat Board customs meat data (fob) NZ Meat Board meat production Terms of exchange Agricultural production export receipts Wool exports 5 3 On-farm prices 6 2 NZ domestic meat consumption National livestock and land use reconciliation Job Vacancy Monitor 2 1 Labour market analysis tools 4 Occupational shortages lists 3 Food recall statistics 2 Deprivation Index 6 4

17 SMEs in NZ: structure and dynamics Study of Smallholdings and their Owners Admin data subtotal Survey/census International Trade in Services and Royalties Survey Quarterly International Investment Survey Biotechnology Survey Research and Development Survey Agriculture production surveys/censuses Sawmill, panel, and pulp & paper surveys National Exotic Forest Description Farm Monitoring Programme Vineyard Survey NZ Winegrowers annual vintage surveys Wine Statistical Annual and wine summary Avocado maturity monitoring Farm expenses price index Business Operations Survey Annual Enterprise Survey Sheep and Beef Cattle Livestock Survey Lamb Crop Survey 1 2 Survey of commercial sheep and beef farms Household Labour Force Survey Household Use of ICT 3 5

18 Survey Population census Population projections and estimates 3 NZ Living Standards 2000 & Survey of Employers who Have Recently Advertised Survey/census subtotal Integrated databases & modelling Economic Contribution of 4 Biotechnologies to NZ s Primary Sector DairyBase AgriBase Linked Employer- Employee Data quarterly job-level statistics Linked Employer- Employee Data annual person-level statistics Spread-sheet business information Wool Levy Database National Land-cover Database National Indigenous Vegetation Survey Database NZ Land Resource Inventory FAO Statistical Yearbook and database Global Trade Atlas & commodity database WTO global tariff profiles and databases Global Invasive Species Database National Typing 4 6

19 Database General Incident Register 2 Information Leader 2 Verification Agency 3 FoodNet Database 2 Queen Elizabeth II National Trust Integrated databases & modelling subtotal Reports Situation and Outlook for NZ Agriculture & Forestry NZ Horticulture barriers to export trade Case studies of R&D benefits International Egg Market Review Situation & Outlook Report NZ Winegrowers Annual Report Avocado Annual Report statistics Meat and Wool New Zealand reports Fresh Facts Pipfruit Industry Statistical Annual OECD Review of the NZ Innovation System Livestock Improvement Corporation Annual Report Land transport at a glance Network statistics 5 Meeting skill needs 3 3 Zespri Annual Report Fonterra Annual

20 Report State of the Environment Report Carbon Dioxide Budget of the NZ Grape & Wine Industry NZ Greenhouse Gas Inventory Energy GHG Emissions Mapping the structure of the NZ food & beverage industry OECD Agriculture monitoring & evaluation report & databases FAO/OECD Agricultural Commodity Outlook FAO Fertiliser Usage 6 Environmental indicators for agriculture Environmental Performance Review Regional labour market reports 3 Biosecurity Organisms Register for Imported Commodities Unwanted Organism Register 5 5 Reports subtotal Total Gap analysis Based on the column totals from table 1.02, and the scope and complexity of each topic, table 1.03 provides: a subjective assessment of the degree to which each topic is currently informed the relative importance of informing that topic in the first place 8

21 the topic s ranking for further enhancement. Here is a brief synopsis on the statistical status of each topic, ordered by their relative importance. Production (topic 3) is considered the most important topic and is also thought to be the best informed at present. It therefore has the lowest ranking for improvement. However, considerable gains can be made from having better classification of land use (geared at topic 6) and linking agricultural production data to other data sources through geospatial mapping (topics 6 and 7). Table 1.03 Agriculture, horticulture, and forestry domain topics Degree to which current information sources meet needs, and priorities Degree to which topic data needs are met (A=fully met; B=mostly met; C=partly met; D=barely met; E=not met) Priority ranking overall (1 highest) Priority ranking for enhancement (1 highest) Market access & global competitiveness B 3 3 Market-lead research & development C 7 6 Production B+ 1 8 Innovation, growth, productivity improvement, labour, & supply chain efficiency Food safety, biosecurity, & consumer concerns C 4 2 D 8 7 Land use, changes, & demands B- 5 4 Environmental sustainability, biodiversity, & integrity D+ 2 1 Rural social capital D 6 5 Environmental sustainability, integrity, and biodiversity (topic 7) is the second-most important topic but one of the least well-informed. This is not surprising since it is a relatively new area of focus, where what is meant and what should be measured is still uncertain. It is also a very complex topic with many interdependencies to consider. 7 has the highest priority for enhancement. Market access and global competitiveness (topic 1) is the third-most important topic area, with information needs mostly met. Nevertheless, it has high priority for improvement, including: sufficiently differentiating value-added in exported goods and services, tracking the levels of trading in agricultural services and intellectual property, and understanding foreign investment levels by sector. 9

22 Innovation, growth, productivity improvement, labour, and supply-chain efficiency (topic 4) is the fourth-most important topic and appears to be well-informed already, based on table 1.2. However, it is only partly met because of the diversity and complexity of the topic. Bigger gaps include: lack of agricultural productivity measures; incomplete coverage of the financial contribution and performance of all farm types in the agriculture sector, and poor information on the levels of investment in agriculture and the profitability of farms; poor information on the uptake of innovation on farms; and a poor understanding of labour supply and demand in the agriculture, horticultural, and forestry sector. Although nearly all statistical development work in progress, and initiatives proposed in the next section, enhance topic 4, there would be only a modest gain in the topic being better informed. Land-use, changes, and demands (topic 6), the fifth-most important topic, has statistical gaps in the understanding of soil erosion, health and associated farm-management practices, how patterns of land use are related to climate change, and the correlation with water quality, allocation, and use. These gaps are also priorities for topic 7. Another gap is knowing how much productive land is being lost to residential lifestyle blocks or retired to the conservation estate. Rural social capital (topic 8) is the sixth-most important topic area, with information needs barely met at present. Work that is underway will achieve significant enhancements, but a lack of understanding remains about the social capital dynamics of rural communities and factors that underpin rural community sustainability and prosperity. The least important topics for agricultural official statistics are market-led research and development (topic 2) and food safety, biosecurity, and consumer concerns (topic 5). While they are important, there appears to be less demand in the public domain for official statistics in these areas. The data that does exist is primarily held by industry players and by statutory authorities that undertake risk surveillance and monitoring functions with a mitigation focus. Initiatives under development or recently completed Initiative 1: National Animal Traceability initiative and FarmsOnLine database The proposal for an enhanced national animal identification and traceability system was done in The traceability umbrella database, covering cattle and deer farmers to begin with, is at the design phase with a business case being submitted in The FarmsOnLine database is associated with this and also had a business case submitted in

23 : For national animal identification National Animal Identification and Tracing (NAIT) and Ministry of Agriculture and Forestry (MAF) FarmsOnLine database MAF Timeframe: Design phase underway, business cases submitted in late 2009 Initiative 2: Agricultural productivity measures Statistics NZ is undertaking research into measuring labour, capital, and multi-factor productivity (MFP) growth for the agriculture industry. Annual time series are tentatively scheduled for release in early The time series will go back to 1988, and possibly to Following this release, the agriculture time series will be updated on an annual basis. There are further development plans (for all industries) but these are subject to securing funding. : Statistics NZ Timeframe: Development underway with first data release in 2010 Initiative 3: Inclusion of land use information in New Zealand Greenhouse Gas Inventory From 2010 the Ministry for the Environment will include land use and land-use change data derived from the Land Use and Carbon Analysis System (LUCAS). LUCAS is appropriate for United Nations Framework Climate Change Convention reporting, and to enable reporting under article 3.3 of the Kyoto Protocol in the first commitment period. It is also designed to support and underpin New Zealand climate change policy development through to 2012 and beyond. : Ministry for the Environment ( Timeframe: From 2010 Initiative 4: Employment data by detailed industry and occupation Initiative 4 involves a set of derived statistics modelled from a variety of Statistics NZ data sources. The goal is to meet current gaps in labour market statistics, by providing information at a more detailed level (by industry and occupation) for all sectors, including agriculture. : Department of Labour Timeframe: First conclusions released Ongoing project with regular data updates. Initiative 5: Horticulture and viticulture regional seasonal labour surveys Surveys were carried out in five regions Hawke s Bay (range of horticulture activities), Bay of Plenty (kiwifruit), Wairarapa (wine), Marlborough (wine), and Nelson (pipfruit). Surveys may be repeated a second one was held in the Hawke s Bay in The lack of detailed relevant statistics on seasonal labour requirements and supply, from 11

24 domestic and overseas sources, had been recognised for some time. Surveys were designed to fill some of these gaps, to assess likely seasonal labour shortages by major horticulture and viticulture producers and by major regions. : Department of Labour Timeframe: First surveys completed; second survey in Hawke s Bay in 2009 Initiative 6: General Social Survey The General Social Survey (GSS) produces statistics about well-being that will help inform decision making by government agencies and the wider community. The GSS provides a cross-domain perspective of well-being, covering the population, housing, safety and security, economic standard of living, knowledge and skills, health, paid work, culture and identity, social connectedness, human rights, physical environment, and leisure and recreation domains. The survey is designed to be representative of the general population, but the extent to which the results can be extrapolated to the rural population may be limited. : Statistics NZ Timeframe: First results released late 2009 Initiative 7: Childcare Survey The 2009 Childcare Survey aimed to provide comparative information with the 1998 survey and also investigate early childhood education, out of school services used for school-age children, barriers to childcare and use of workplace childcare provisions. While the survey provides rural/urban comparisons, it is constrained by sample size. : Statistics NZ Timeframe: Release due 2010 Initiative 8: Business structure Information about business structure comes from Statistics NZ s Longitudinal Business Frame. Detailed statistics are produced for the agricultural sector, including counts by industry employment and business type. : Statistics NZ Timeframe: February 2009 (an ongoing data series: Initiative 9: Business dynamics Derived statistics from Statistics NZ s Longitudinal Business Frame, that provides information on business dynamics (births, ceases, survival rates). Detailed statistics are available for the agricultural sector. : Statistics NZ 12

25 Timeframe: February 2009 (ongoing data series: Proposed new initiatives Eighteen new initiatives are outlined succinctly below, in order of priority. Further details are in chapter 6, under proposed new initiatives, with the same initiative number. The initiatives were developed from a series of workshops involving stakeholder organisations. These workshops identified information gaps for the domain s enduring topics the initiatives are aimed at minimising or removing the gaps. Each initiative has a priority ranking that is based on gap impact scores, the relative importance of the topics with the highest impact, and the level of difficulty in implementing the initiative. Refer to for further detail. The lead agency for each initiative is shown below. However, further work is needed to identify the scale, cost, and details for each initiative. Development is also subject to funding being provided, and capability constraints. Priority 1 Develop better statistics on soil erosion, health, and associated farm-management practices (initiative 13) There appears to be a lack of information on the quality of soil for different production purposes, the impact of soil erosion, and associated farm-management practices. This area needs to be explored further. The information is believed to exist, but not in the desired format. This may require gathering information that the Crown research institutes possess but which is not currently in the public arena. Lead agencies: Plant & Food Research, Landcare Research, and AgResearch (Sustainable Land Use Research Initiative) Addresses topics: 3, 4, 6, and 7 Priority 2 Agree a set of measures for agriculture s impact on environmental sustainability (initiative 27) Work on initiative 27 complements that from the sustainability indicators project. Several strands of work are needed here, beginning with agreeing a statistical framework for choosing a succinct set of interrelated indicators. Lead agencies: Ministry of Agriculture and Forestry (MAF) and Ministry for the Environment Addresses topics: 2, 4, 7, and 8 13

26 Priority 3 Develop better statistics on water allocation, use, and quality, by region (initiative 24) There is a lack of information on the use and sustainability of water resources not only in the agriculture, horticulture and forestry industries but in all industries. A gap analysis is needed to identify who is doing what, the consistency of methodology, and the issues in collating a national report. There is also a need to understand the policy drivers on water allocation and use, and how this might vary by region. Lead agencies: MAF and Ministry for the Environment Addresses topics: 4, 5, 6, and 7 Priority 4 Explore linking agricultural production data to financial and business data (initiative 19) The relationship between the production of individual farms and their financial performance and economic contribution needs better understanding. Agricultural production surveys collect data on farm production and farm practices. A range of financial and business data is available from other sources. Linking these sets of data together would provide a rich data source. Statistics NZ has undertaken the Improved Business Understanding via Longitudinal Database Development (IBULDD) project to produce new information. This prototype longitudinal business database includes linked administrative and survey data. IBULDD has shown it is possible to link datasets, including those relating to financial data, imports/exports, employment, business operations, innovation, and research and development. Linking agricultural production survey data to other datasets would enable more analysis to be done. : Statistics NZ Addresses topics: 4 and 6 Priority 5 Investment in agriculture (initiative 26) Information on investment patterns (levels, changes, types) is fundamental to understanding the drivers of economic growth and productivity change. Agriculture is a dynamic industry that has witnessed many changes in the type, diversity, and quality of farm production and in the technologies utilised. A willingness to invest in, adopt, and adapt to change, has underpinned this process. At present the quality of information available on capital investment expenditure in agriculture is poor. While agriculture is nominally covered in Statistics NZ s Annual Enterprise Survey (AES), the range and quality of capital investment information is inadequate. The possibility of expanding and enhancing the AES to capture more detail on farm investment should be investigated. 14

27 : Statistics NZ Addresses topics: 2, 4, 7, and 8 Priority 6 More detailed information on trading (import/export) of agricultural services and intellectual property (initiative 15) There is a lack of information on international trade in agricultural technology and expertise, which has a large impact on trade and productivity. The International Trade in Services and Royalties Survey could be used to inform this subject and gather additional information on intellectual property at the same time. However, this initiative would first require methodological development. : Statistics NZ Addresses topics: 1 and 4 Priority 7 Link agricultural production data to geospatial information (initiative 22) There is a need to analyse the physical environment, land use, infrastructure, population, and social characteristics in an integrated way. Geographical information system (GIS) technology provides opportunities to do this. A range of GIS data layers is available that covers physical features (eg terrain, rivers), utilities (eg roads), statistical boundaries (eg meshblocks and their aggregations). There are also subnational statistical data at varying geographic levels (including agricultural production, population, business numbers and characteristics, building consents). The range and use of geospatial information available needs to be investigated and areas for enhancement identified. Lead agencies: MAF and Statistics NZ Addresses topics: 3, 4, 5, 6, 7, and 8 Priority 8 Better differentiate value-added in exports (Initiative 20) The New Zealand Harmonised System Classification (NZHSC) is used to classify the export and import of commodities. The feasibility of expanding this classification to better differentiate between commodity products and levels of value added should be investigated. This would allow products of differing quality levels to be differentiated. An equally discerning classification system for trade in agricultural services is also needed. : MAF with Ministry of Economic Development and New Zealand Customs Service Addresses topics: 1 and 2 15

28 Priority 9 Farm ownership and investment (initiative 14) Limited information is available on the extent of foreign investment (both inward and outward) in specific agricultural sectors. Moreover, as the value of land increases, there is growing interest from corporations and institutions in owning land. This interest affects farming and employment practices, technology uptake, and decision making, which is already visible in the forestry sector. Statistics for Mäori farms are needed, to determine patterns of farm ownership and investment that apply to these farms. More information is needed on both the investment and the institutionalisation of farms. These two aspects are generally informed by the same means particularly the Agricultural Production Survey. : Statistics NZ Addresses topics: 1, 4, and 8 Priority 10 Detailed and cohesive definition and classification system for land-use information (initiative 18) A lack of integration between land use statistics could potentially be bridged by a better classification system and definitions. Initiative 18 would investigate whether, with an enhanced classification system in place, the Agricultural Production Survey could be expanded to give more detailed land-use information. Lead agencies: Statistics NZ and Ministry of Agriculture and Forestry Addresses topics: 3, 6, 7, and 8 Priority 11 Volume of pesticides used and management practices to reduce use farms, orchards, and forests (initiative 25) There are insufficient statistics to monitor New Zealand s use of pesticides, herbicides, and fungicides, or their impact of eradication on biodiversity and biosecurity (this is a gap in OECD reporting). Initiative 25 clarifies what data is available, the information gap, and possible solutions. : MAF Addresses topics: 5 and 7 16

29 Priority 12 Compile non-tariff barriers by country investigate expanding the New Zealand Horticulture Barriers to Export Trade report beyond horticulture (initiative 21) This information probably exists by segment but is not integrated at present. : MAF Addresses topics: 1 and 5 Priority 13 Human and social capital dynamics (initiative 11) Currently there is a lack of understanding about the social capital dynamics of rural communities and the factors that underpin rural community sustainability and prosperity. Separate information is needed for Mäori and other individual community groups. Initiative 11 seeks to measure the status of rural communities and identify differences between them. In this way, key drivers can be better understood. s 4 and 8 are informed by a large variety of sources; initiative 11 would integrate these sources and allow for dynamic analysis. Lead agencies: Statistics NZ and MAF Addresses topics: 4 and 8 Priority 14 On-farm innovation (initiative 17) Understanding of the uptake of new technology and methods across the agriculture, horticulture, and forestry sector at the farm level is needed. This applies especially to the technology and methods associated with resource use (eg water and irrigation) and climate change (eg fertiliser applied). There is also a desire to know why the innovation was adopted and how farmers learnt about it. Investigate whether the Agricultural Production Survey is a suitable way to collect some of this information. Lead agencies: MAF and Statistics NZ Addresses topics: 4, 7, and 8 Priority 15 Information on agriculture labour utilisation (initiative 10) Currently there is limited data on labour supply and demand in the agricultural, horticultural, and forestry sector. Detailed information is required on seasonal labour as well as occupation, industry, and skill level. 17

30 Initiative 10 aims to bring together a range of statistics to give more cohesion it is closely linked to initiative 4. : Department of Labour Addresses topics: 4 and 8 Priority 16 New product into market (initiative 16) Understanding what fraction of exports is made up of newly-released products, along with information about trends in new products and the perceived value of research and development is needed by commercial firms. Current exports data doesn t provide detail on which products are new or have undergone development. Innovation could potentially be used as a measure of growth. Current sources (including the Innovation Survey, the Improved Business Understanding via Longitudinal Database Development, and the Agricultural Production Survey) should be investigated to assess their feasibility for collecting information on new products. : Ministry of Research Science and Technology Addresses topics: 1 and 2 Priority 17 Loss of productive land (initiative 23) Better understanding of changes in rural land is needed (eg to residential use or the conservation estate). Initiative 23 proposes using census and population projection data to analyse urban expansion against urban infill and the impact on rural society. Changes associated with Mäori land need to be assessed as that land use may be different. : Statistics NZ Addresses topics: 6, 7, and 8 Priority 18 Farm scale investigation of efficiency (initiative 12) The size of farms has been growing to capture economies of scale. There may be a point at which disadvantages outweigh advantages; a technology or other change may be required to overcome this. There is also a management/staff issue as fewer farms are run and occupied by their owners. Initiative 12 would explore the above issues at the farm level. : Ministry of Agriculture and Forestry Addresses topics: 4 and 8 18

31 Potential collective impact of proposed new initiatives The individual and collective impact of implementing the 27 initiatives is outlined in the matrix table 1.4. The table also summarises (on the right-hand side) the perceived level of difficulty in implementing the initiatives and their priority ranking. Rankings were based on impact scores, the relative importance of the topics with the highest impact, and the level of difficulty in implementing the initiative. Table 1.04 Agriculture, horticulture, and forestry domain topics Summary of likely impact and prioritisation of proposed new initiatives By initiatives underway and priority rank Degree to which initiatives inform topics (9 = profound; 6-8 = high; 3-5 = medium; 1-2 = low; blank= negligible ) 1 Market access & global competitiveness 2 Market -led researc h and development 3 Production 4 Innovation, growth, productivity improveme nt, labour, & supply chain efficiency 5 Food safety, biosecurity & consumer concerns 6 Land use, change s & demands 7 Environmental sustainability, integrity & biodiversity 8 Rural social capital Totals of degree to which existing information sources inform each topic Degree to which topic data needs are met (A=fully met; B=mostly met; C=partly met; D=barely met; E=not met B C B + C C B - D + D priority ranking overall (1 is highest) priority ranking for enhancement (1 is highest) Initiatives underway National Animal Traceability Initiative Agricultural productivity measures Inclusion of land-use data in NZ Greenhouse Gas

32 Inventory Employment data by detailed industry and occupation Horticulture/viticulture regional seasonal labour surveys General Social Survey 3 Childcare Survey 4 Business structure Business dynamics Prioritised new initiatives Soil erosion, health, and associated farm practices Measuring agriculture s impact on environmental sustainability Develop better stats on water allocation, use, and quality Expand IBULDD to link agricultural production data Levels of investment in agriculture Trading of agricultural services & intellectual property Link agricultural production and geospatial information Better differentiate valueadded in exports Farm ownership and investment Detailed classification system for land use Pesticide use and practices to reduce Compile non-tariff barriers by country Human and social capital dynamics On-farm innovation levels Information on agriculture labour utilisation 7 4 Levels of new product into market

33 Loss of productive land Farm scale investigation of efficiency 4 3 Initiative total Degree to which topic data needs would now be met B+ C+ A B- C+ B+ B- B More information on the new initiatives is in chapter 6 of this report. 21

34 2 Background information Introduction to domain plans Domain plans are an important part of Statistics New Zealand s role in leading, strengthening, and coordinating the development and ongoing integrity of the Official Statistics System. This leadership role is largely achieved through promoting shared responsibility and the cooperation of other agencies to improve official statistics. Domain plans provide a structured, systematic approach in areas which span the statistical s of several agencies or sectors. Specifically, they seek to: develop a long-term picture of what is required, rather than reacting to issues develop a coordinated plan, rather than tackling issues on a piecemeal basis work in partnership with other agencies to obtain agreement on priorities, rather than taking a single-agency view. Domains are grouped within the economic, social, and environmental pillars. For example, the Programme of Official Social Statistics has 12 domains. In developing domain plans, the social pillar is the most advanced because it has historically been the least advanced in having a coherent set of official statistics. Domain plans are now being developed as required, in the economic and environmental areas also. Common characteristics of domain plans Domain plans are tailored to the uniqueness of each sector and the needs of the stakeholders. At the same time, the common threads should include: identifying the key policy and research questions. The starting point for all domain plans should be to identify the enduring policy and research questions that stakeholders are trying to answer identifying key data sources and information needed to answer these questions what information is available to answer these questions currently and what other information is needed? identifying problems that limit the ability to get the information needed to answer key questions. Barriers to answering these questions may be due to poor statistical architecture, data quality, gaps in administrative systems, privacy constraints, or a lack of data integration, not just to a lack of survey information. having a strategic focus over at least next five years. To avoid being focused on operational or short-term policy demands, all plans should have a minimum time horizon of five years. 22

35 identifying key priorities and how to address them. A key part of a domain plan is to make trade-offs among competing needs, and to develop a list of priorities and the key steps needed to achieve the priorities. Conceptual framework for the agricultural sector Figure 1 depicts a conceptual framework for agricultural statistics. It provides a model for the flow of New Zealand s products and services to global markets. The framework shows the different stages where stocks and flows can potentially be measured, and the common and/or specific characteristics of each part of the supply chain. 23

36 Figure 1 Conceptual framework for agricultural statistics 24

37 Past agricultural statistics strategies and developments The Review of Agriculture Statistics Report (November 1998) The Review of Agriculture Statistics was undertaken at a time when the Agriculture Production Survey had been discontinued because of increased constraints on resources. Statistics NZ convened a review committee of representatives from organisations recognised as either important users and/or suppliers of information relating to the agriculture industry. The committee was asked to recommend changes to improve the statistical information base, and to develop a strategy to coordinate the resources of the organisations, to more efficiently meet recognised user needs for information on agriculture production and the economics of agriculture production. Areas identified by users as requiring further attention were: improved accuracy and timeliness of available agricultural statistics integration and alignment of statistics and statistical s so that comparability is achieved and maintained consistency over time for the core series confirmed frequency for the statistics that are collected statistics at territorial authority level remaining available a need for more financial data to be available, by farm type and region the of horticulture information about the age and number of trees planted; also, volume and yield data for a wide variety of horticultural crops up-to-date information on farm debt more data on agricultural sector pay rates and employment structures (including contractors) development and of environmental statistics, with regard to the farming industry in New Zealand the need for more data on small farm holdings (eg lifestyle blocks). A total of 28 recommendations were made. Some required closer cooperation between organisations that collect data relevant to the industry. Others differentiated the range, content, and frequency of statistics that should be funded by the Crown from those that would need specific user sponsorship. A Long Term Strategy for Agricultural and Rural Statistics (December 2004) A Long Term Strategy for Agricultural and Rural Statistics was prepared jointly by Statistics NZ and the Ministry of Agriculture and Forestry (MAF) in consultation with key suppliers and users of the statistics. This document was never published; many initiatives were not progressed. Fifteen strategic goals were identified as requiring joint action by MAF and Statistics NZ: 25

38 Positioning the agricultural and rural statistics programme work with key agricultural, environmental, and industry sectors to ensure their needs are understood and catered for, to ensure their ongoing support. Enhance existing relationships with key sector organisations establish closer coordination and collaboration with other producers of agricultural statistics to enable further development and understanding of trends and issues within the agriculture sector. Develop programme capability including staff and infrastructure through appropriate training programmes. This to be done by researching and adopting best practice from other statistical organisations, secondments to other government agencies and agricultural organisations, and enhancing statistical methodology, while aligning systems, tools, and business processes with outcomes from the Business Transformation Strategy at Statistics NZ. Develop and implement a quality management strategy a key requirement to ensure that statistics produced from the programme are fit for purpose. Implement the agreed programme design for agricultural production statistics between 2004 and This would provide a framework for survey designers and the user community, while managing compliance and facilitating the building of a state of quality in the programme. Develop a data integration strategy to enable enhancement of present agricultural and rural statistics by broadening and refining current definitions (including the population of interest), using commonly used concepts and classifications (eg ANZSIC, standard meshblock classification, business type), linking survey datasets, and researching linkages between rural households, farm households, and farm enterprises. Manage compliance cost by constraining annual s, using options such as sample rotation, separate questionnaire modules for each industry (if practicable), new or enhanced surveys to cover resource management and farm-management practices, and supplementary surveys for collecting detailed data on key agriculture industries. Developing alternative data modes is also an important element of managing compliance. Make greater use of administrative (eg tax) data and collaborate with industry organisations for s such as MAF s farm monitoring programme and forestry s, and the National Exotic Forest Description, Meat NZ, Dexcel, and Wine Institute s. Closer coordination will help reduce significant unmet needs for agricultural and rural statistics, but will require assessment and analysis of the coverage and quality of the data from the various s. Collaborate with organisations that utilise and make available data that has a landbased (geospatial) reference, or other remote sensing system, that will enhance the capability of the agricultural statistics programme. Implement a robust evaluation programme to enable regular monitoring of the quality of key programme inputs, the agriculture frame, and statistical outputs (including confronting of the data from different industry sources within the agriculture sector). Ensure the Business Frame is maintained to a high standard for coverage of farms and industries. As resources permit, a geospatial layer that draws on satellite imagery and other remote sensing technologies should be implemented. 26

39 Extend existing Statistics NZ s to enhance coverage of the agriculture and rural sectors, including the environment (eg Annual Enterprise Survey, business performance s, Quarterly Employment Survey, Longitudinal Employer- Employee Data). Options for adding environmental questions into the Agricultural Production Survey should be examined. Extend the range of social and demographic statistics for the rural sector, by utilising the population census, the Social Statistics Programme, and by working with other government agencies on their administrative or other data. Statistics NZ s metadata and knowledge database systems to have a high standard of documentation for all key systems, processes and business rules. This information to be readily available to users. Implement appropriate and effective dissemination approaches work with stakeholders to ensure the programme outputs are adopted and used effectively in research, policy, planning, and reporting. The strategy presented 46 recommendations for development of the current Agricultural Statistics Programme, and for developing statistics that could be collected in future surveys. 27

40 3 Agricultural statistics frameworks Introduction Figure 2 illustrates how the agricultural conceptual framework of figure 1 feeds into different layered statistical frameworks starting from basic aspects of infrastructure (such as an agricultural register of farms) through to a architecture (all data sources and how they connect) and the measurement framework (showing groupings of agricultural statistics) through to an output architecture (showing the dissemination strategy for each target audience). Figure 2 A framework for the frameworks The pivotal framework or layer is the measurement framework. It is central because it incorporates the output statistics for dissemination to target audiences and also drives the need for enhancements to the infrastructure and statistical layers. So what is the current agricultural statistics measurement framework? Figure 3 shows one representation. 28

41 Figure 3 Existing agricultural statistics framework and audience model While such a framework is satisfactory for showing a measurement hierarchy and sets of accounts, it does little to show the dynamics of how various groupings of indicators might be used within and across enduring topics. Existing frameworks for farm environmental management indicators (from Farm Management Indicators and the Environment ; proceedings of an OECD Expert Meeting, Palmerston North, New Zealand, March 2004) A key to better understanding the effects of agriculture on the environment is to analyse the linkages between the components of the Driving Force Pressure State Impact Response Framework (DPSIR). Figure 4 illustrates the DPSIR approach to highlighting linkages between farm management indicators (FMIs) and other drivers, and environmental outcomes associated with farming systems. The DPSIR framework provides a basis to guide, identify, and organise the overall OECD effort on agrienvironmental indicators (see OECD (1997) Environmental Indicators for Agriculture: 29

42 Concepts and Framework, Volume 1). By measuring progress in addressing agrienvironmental issues, FMIs provide a link between farmers behaviour and environmental outcomes, as shown in figure 4. A wider perspective on agricultural sustainability can be undertaken by using Life Cycle Assessment (LCA). LCA provides a framework for analysing and evaluating environmental impact at different stages in the agri-food chain (ie from farm-gate to the consumer) and can allow targeting of eco-efficiency initiatives at farms, including inputs and outputs (eg energy, materials, and emissions) over the lifecycle of the product. LCA analysis is guided by the International Standardization Organization s ISO standards (a series of voluntary environmental management standards; see which provide a degree of flexibility for using LCAs in different decisionmaking contexts. While the LCA model can be meaningfully applied to agri-business value chain, to identify environmentally efficient options, it often ignores economic and social considerations. This is also an inherent weakness of the DPSIR approach. Figure 4 DPSIR framework for developing farm management indicators We have therefore turned to the MONET typology, a dynamic framework that is being adopted by Statistics NZ for integrating statistics across all social, economic, and environmental domains particularly around sustainability indicators. 30

43 The MONET sustainable indicator typology (based on material from the Joint UNECE/OECD/Eurostat Working Group on Statistics for Sustainable Development) The DPSIR approach is too narrow a typology to apply to other aspects of sustainability beyond the environment, including agriculture (such as rural affairs). Figure 5 MONET indicator typology The Swiss-developed MONET typology appears to be gaining favour internationally as a suitable replacement for DPSIR. The five types of indicators for a given sustainability topic are shown schematically in figure 5. Table 3.1 shows the characteristics of each indicator type and how they align (and differ) from the DPSIR model. Table 3.01 How MONET aligns with DPSIR model Features Level (L) Capital (C) Type of indicator Input/output (A) Structural criteria (S) Response (R) Principal question/s Meeting needs how well do we live? Preservation of resources what are we leaving behind for our children? Flows to what extent does the capital appreciate or increase, or depreciate or diminish? Fairness how well are resources distributed; decoupling how efficiently are we using our resources? Measures how have the sociopolitical systems reacted in their efforts to influence development? 31

44 Description of meaning Extent to which needs are met Status of and changes to resources Use and influencing of capital Efficiency, disparities Social and political measures Value measured Level variables are, generally flow variables, which are often stated in relationship to other variables (eg GDP per capita, living space per capita, distance travelled per capita, unemploy ment rate) Capital is measured using stock variables. These may be represented as absolute values (drinking water supply; newspaper circulation figures) or relative values (proportion of threatened species, hospital beds per capita) These are always measured by flow variables. They may be represented as absolute values (eg greenhouse gas emissions in tonnes) or relative values (eg proportion of GDP spent on education, phosphorus input per hectare) Efficiency is always expressed as a relative variable (eg nitrogen oxide emissions per km) or defined as a proportion (eg proportion of journeys using public transport) Description of disparities is broken down by population group (eg proportion of women completing tertiary education) or region (eg economic output) Responses use flow variables (eg transfer payments to the poor) or descriptive absolute or relative values (eg number/ proportion of local communities charging rubbish fee) Breakdown by group or region Counterpart in DPSIR no no no yes no Driving force State Pressure/ impact None Response Delimitation in relation to other types of indicators # continuous consumption of resources ( ). # variable for measuring consumption ( ). # variable for measuring accumulation or decline of stock ( C) # absolute variable( ). # 0 average of the total population ( L) Not applicable The MONET model embraces aspects which are relevant to sustainable development: the degree to which social needs are met (L), expenditure for that purpose (A), the current resource situation (C), and the level of efficiency and appropriateness of resource use (S). Combining different types of indicators allows complex statements to be made on particular topics and prevents arbitrary assessment of developments. However, in practice and unlike in the above (ideal) model, indicators from one topic frequently do not display any clear causal associations. A causal relationship between individual indicators is therefore desirable, but not essential. 32

45 Monitoring Sustainable Development Final Report Methods and Results (2004) provides a full account of the MONET sustainability typology. Note that the structural criteria (S) are what sets the MONET typology apart from DPSIR these indicators relate to the distribution of met needs and capital (and thus options) between population groups, and describe what environmental, economic, and social resources have to be used to meet particular needs. Combining MONET and the accounting-based framework for agricultural statistics Figure 6 expands on figure 3 to integrate the MONET typology and the existing accounts-based hierarchy across the eight enduring topics that relate to New Zealand s agricultural and rural sector. Figure 6 Agricultural statistics measurement framework 33

46 4 Agricultural domain enduring topics Introduction This section provides a full description of the Agriculture, Horticulture, and Forestry Domain Plan s enduring topics 1 to 8. The content comes mainly from research papers, publications, and other strategic documents on the websites for the Ministry for Agriculture and Forestry (MAF) and other government agencies. At the end of each description is a list of any relevant existing strategies and the key agencies that either generate and/or use statistical information relating to each topic. 1: Market access and global competitiveness To what extent are we continually enhancing our natural advantage by improved market access to the world s most discerning markets, and the niche marketing of added-value agri-based products and services at premium prices? Agriculture is the backbone of New Zealand s economy. Even in the rapidly changing global environment, primary industries remain the most extensive, natural-resource based, economic, international activity. This is true for New Zealand where, given the country s small size physically, economically, and in population primary industry is the only sector approaching a global scale. The primary sector has world-class economies of scale and scope, global market reach, and leading technological capabilities. New Zealand is a small, open, and trade-dependent economy, in which export performance drives economic growth and the country s ability to meet social and environmental objectives. This allows our businesses to constantly learn from overseas markets, consumer demands, and competitors, and to identify and develop new technology and innovation. New Zealand s economy has generally been strong since the mid-1990s, with performance mostly being above the Organisation for Economic Co-operation and Development (OECD) average. However, many markets in which exporters compete have been growing only slowly or have been static, with barriers to trade and domestic subsidies. New Zealand also faces increased levels of competition for example, from China and Latin America in horticulture, and from Brazil and Argentina in meat and dairy. Trade in food and related products represents a significant part of New Zealand s GDP. A modern food regulatory programme must enhance food safety and suitability, provide consistent and flexible regulatory oversight across the production to consumption continuum, and ensure efficient use of government and stakeholder resources. The government (through MAF, New Zealand Food Safety Authority, and Ministry of Foreign Affairs and Trade) works with international bodies such as Codex (the international food safety standards-setting body), the World Organisation for Animal Health, and the International Plant Protection Convention to review international standards for trade and to promote New Zealand internationally. 34

47 Trade liberalisation and market access are critical to the long-term success of New Zealand s primary industries. The World Trade Organization s (WTO) Doha agenda trade negotiations are a top priority. The government is also heavily involved in a range of free trade negotiations. There are strong links between trade policy, and biosecurity and food safety (topic 5). Enhanced market access needs to be complemented by credible health assurances, and by trade rules which are science- and risk-based, and bound by international agreements. In freer markets, consumer perception of the quality of New Zealand s natural environment is also driving the demand for products from the primary industries. In particular, customers (and their governments) are demanding assurance about food safety and biosecurity status, but also that the production of goods is environmentally sustainable. Trade agreements increasingly include elements of environmental sustainability and environmental cooperation. Table 4.01 Related strategy/plan/report Strategy/plan/report Not applicable Not applicable Table agency accountabilities Agencies with key statutory accountabilities associated with topic Ministry of Agriculture and Forestry Ministry of Foreign Affairs and Trade Treasury New Zealand Food Safety Authority Fonterra Level of accountability Primary Major Major Major Major (1) Accountability level definitions: Primary = controlling impact on end results; shared accountability is subordinate; Major = typically exercises dominant (but not necessarily determining) influence in joint considerations, proposals, or actions; Shared = participating equally with others in joint considerations, proposals, or actions; Contributory = contributor when asked but not otherwise. 2: Market-led research and development How successful is our investment in life sciences and material sciences R&D in bringing to market a wide range of differentiated value-added products from our primary production base? New Zealand s first export of frozen lamb in 1882 was an innovation that led to industries that continue to be the base of the country s economy and society. The 35

48 science and technology that goes into producing current and future output is outstanding, and there are opportunities in the solutions developed in response to challenges such as climate change. Done well, research and development (R&D) can contribute to better environmental outcomes (see topic 7), improve productivity of animal production systems (topic 4), capitalise on intellectual property created, and lay the foundation for development of further intellectual property and productivity gains. The primary industries have decades of accumulated human capital, intellectual property, and great science. New Zealand has internationally recognised brands and reputations in its primary industries, and a developing global scale and reach. These industries have very strong potential for future growth as sophisticated, market-led, and innovative producers of safe, fit-for-purpose, environmentally-sustainable, and trusted products for consumers. The primary sector is made up of some of New Zealand s largest companies, who are major investors in private sector R&D. New Zealand has Crown research institutes (CRIs) serving agriculture: AgResearch, Plant & Food Research, Landcare Research, and the National Institute of Water & Atmospheric Research. Scion, also a CRI and formerly known as Forest Research, has a focus on commercial forestry R&D, biomaterials research, and sustainable consumer products. CRIs are partly dependent on state funding, which is channelled through the Public Good Science Fund, but they also gain significant revenue from doing commercial research. CRIs are responsible for administering their own technology transfer or extension services. Investment in research, science, and technology is largely about managing research contracts and/or programmes and measuring investment performance. Factors and challenges to consider in deriving snapshot or time-series statistics in these areas include: the disparate range of primary sector research contracts; the need to account adequately for the complexities of multi-disciplinary research performance; rapidly changing technology platforms; long-term R&D and lag effects; pathways to research uptake and technology transfer; and the capability to undertake research and market research outputs (eg commercialising research through prototype development and joint ventures, or implementing new environmental policy based on research). 36

49 Table strategy/plan/reports Strategy/plan/report AgResearch Corporate Profile CRIs publications/corpprofile.asp HortResearch Annual Report Crop & Food Research s Statement of Intent Landcare Research Annual Report NIWA Annual Report SCION Annual Report Foundation of Research, Science, and Technology Statement of Intent FoRST Table agency accountabilities Agencies with key statutory accountabilities associated with topic Crown research institutes Universities Ministry of Agriculture and Forestry Fonterra / Livestock Improvement Corporation Ministry of Research, Science & Technology Level of accountability Primary Major Shared Shared Shared 3: Production What are the production levels of the livestock, cropping, forestry, and horticultural industries and how are these distributed by soil type, climate zone, and region? New Zealand s geographical position, natural resources, and cultural heritage make it one of the most productive countries in the world for agriculture, food, and forestry. This natural advantage translates into an economy that is trade-oriented and heavily dependent on its biological and natural resource base. Protecting and enhancing this natural advantage in a sustainable way is key to the nation s prosperity and well-being (see topic 7). 37

50 The main objective of the Agricultural Statistics Programme is to collect and disseminate up-to-date, robust statistics on agricultural production and related land use, covering livestock farming, cropping, horticulture, and forestry activities. Specifically, information required to meet this objective and satisfy user needs includes the following data: Livestock numbers by territorial authority (TA) area, regional council (RC) area, herd and flock size, and farm type, including: dairy, beef, sheep, deer, pigs, poultry birds and eggs, and other livestock Crops by TA, RC, and farm type, including: grain, seed, and arable crops; horticultural crops by TA, RC, and farm type Forestry areas by TA, RC, and farm type Land use by TA, RC, and farm type: area farmed by land-use type (eg grassland, land used for horticulture), area of land irrigated, area and type of organic farming Supplementary topics: fertiliser application, cultivation, burn off. Table agency accountabilities Agencies with key statutory accountabilities associated with topic Ministry of Agriculture and Forestry Fonterra / Livestock Improvement Corporation Meat & Wool New Zealand Crown research institutes Ministry for the Environment Industry associations Universities Level of accountability Primary Major Major Shared Shared Shared Contributor 4: Innovation, growth, productivity improvement, labour, and supply-chain efficiency What productivity gains and financial returns are being achieved in the agricultural sector? How efficient are our processing, storage, transportation, labour, provision and uptake of tertiary agricultural education, ICT, industry structure, and other supporting infrastructure, in maximising returns and mitigating risk in the industry? Productivity gains are being achieved in the agricultural and forestry sectors through genetic improvement, adopting better on-farm and downstream management practices, and upskilling the labour force. Agriculture s growth has exceeded that of most other major sectors. From the late 1970s to 2005, the agriculture sector grew an average of 3.6 percent per year, compared with 2.5 percent for the New Zealand economy as a whole. 38

51 In addition to the direct contribution the primary sector makes to the economy, there is a huge flow-on into manufacturing, processing, education, technology, communication, and transport businesses. The food and beverage industry is the largest manufacturing industry in New Zealand, contributing around 30 percent of total output; while the wood and furniture manufacturing industries contribute a further 15 percent. The agriculture and related manufacturing sectors are major employers with an estimated 125,000 people employed in the agriculture and forestry sector and a further 100,000 in associated processing industries. New Zealand s agricultural industry is the only major sector with a world class economy of scale and scope, global market reach, and leading technological capability. Fonterra is twice the size of any other New Zealand company, is the world s largest dairy ingredients company, is responsible for around 40 percent of world cross-border trade in dairy products, and is one of the largest exporters of dairy products from the United States. It is New Zealand s only truly global business (see topic 1). New Zealand meat exporters are leading international players. A handful of primary industry companies all producer-owned cooperatives have total capitalisation that compares to the total New Zealand sharemarket. Although the agricultural and forestry sector is of major importance in the New Zealand economy, there is a lack of comprehensive information on the financial performance of farming and forestry businesses and how this has changed over time. Further information is needed. Table strategy/plan/reports Strategy/plan/report Fonterra s approach to sustainable growth Fonterra ustainability/sustainable+growth/. Meat & Wool New Zealand Statement of Strategic and Consultative Intent Zespri Annual Report Meat & Wool New Zealand Zespri Table agency accountabilities Agencies with key statutory accountabilities associated with topic Ministry of Agriculture and Forestry Fonterra/Livestock Improvement Corporation Ministry for the Environment Industry associations Department of Labour Ministry of Research, Science, and Technology Level of accountability Primary Major Shared Shared Shared Shared 39

52 Ministry of Economic Development Crown research institutes Universities Shared Contributor Contributor 5: Food safety, biosecurity, and consumer concerns How good is the agricultural sector in managing food safety and in anticipating and mitigating technical barriers to trade (for biological products) based on biosecurity issues and consumer concerns? Products sell in international markets on the basis of many attributes availability, appearance, advertising, price, and many subtle perceptions in consumers minds about how purchasing the particular product interacts with self-image. But for food products in particular, there is the added dimension of trust and confidence that the product is what it says it is and does not harbour unexpected surprises in taste, its health attributes, production processes, or impact on the environment. New Zealand prides itself on being recognised internationally as having a clean, green image. However, as this image wins favour with consumers, it has become an important marketing tool that demands a more comprehensive, detailed, and up-to-date information database. Not only do consumers demand more assurance that products comply with clean, green standards, but New Zealand s overseas competitors also seek to use these standards as barriers to agriculture products entering their markets. As a result, New Zealand processors and marketers are being called on to advise and monitor the practices of New Zealand agriculture producers. The industry is recognising growing consumer concern about animal welfare, food safety (including food-borne infections and hormone traces), genetic engineering, chemical residues (eg dip residue in shorn wool), the origin of a product (whether it was sourced from a renewable resource or not), land sustainability practices, and environmental effects. The idea of products being carbon indexed, to inform consumers of the total environmental impact of a food item s production and transportation to market, is an example of the concern. Standards and product branding are promoted in order to deliver information to the market and offer consistency to the consumer. Quality assurance programmes include monitoring farm-management practices and the disease status of crop and livestock suppliers. With over 80 percent of the world s total food and beverage trade being controlled by around 10 supermarket chains, supermarkets are also setting product standards, often at levels far above those required by government agencies in trade agreements and well beyond their traditional consensus on safety and the suitability of food they offer their customers. New Zealand is more dependent on biosecurity than any other developed country. Broadly, biosecurity covers all activities aimed at managing the introduction of new species to New Zealand and managing any impact once the species is present. This includes intentional (including illegal) and unintentional introductions, and containing 40

53 new and unwanted organisms in laboratories, quarantine facilities, and zoos. It also covers weed and animal pest management by central and local government agencies, industry, and individual landowners. The only human diseases biosecurity covers are those spread by animals. The increased rate of reported food-borne illness in New Zealand is of concern. As well as the impact on patients, the government is concerned at damage to the economy, including risks to tourism and food export industries. Government expectations of the New Zealand Food Safety Authority reflect the needs of all those involved in food production and consumption in New Zealand. Priorities include reducing the incidence of domestic food-borne illness and ensuring all food for sale in New Zealand meets the highest standard of food safety and suitability. Genetic engineering describes a range of techniques used to alter the structure of individual genes, or the genetic makeup of an organism, thereby altering its form or function. The Environmental Risk Management Authority is changed with assessing new organisms and, on a case-by-case basis, permitting genetically modified organisms to be assessed in a strictly controlled manner. Genetic sciences are recognised as being important to the future of New Zealand as a trading nation. However, there is a high level of public concern (and a good level of misunderstanding) about such far-reaching scientific developments and their ethical implications. Table strategy/plan/reports Strategy/plan Tiakina Aotearoa: Protect New Zealand Our Biosecurity Strategy New Zealand Biosecurity Science Strategy The First Three Years Ministry of Agriculture and Forestry (MAF) MAF & Ministry of Research, Science, and Technology New Zealand Food Safety Authority Table agency accountabilities Agencies with key statutory accountabilities associated with topic New Zealand Food Safety Authority Ministry of Agriculture and Forestry Ministry of Health Fonterra / Livestock Improvement Corporation Ministry for the Environment Environmental Risk Management Authority Ministry of Foreign Affairs and Trade Level of accountability Primary Major Major Shared Shared Shared Contributor 41

54 6: Land use, changes, and demands What are New Zealand s patterns of land-use change and what are the key drivers (including climate change)? What are New Zealand s forest reserves, and what are the dynamics of afforestation and deforestation by species? Agriculture, horticulture, and forestry cover 52 percent of New Zealand s land area and use about 77 percent of New Zealand s abstracted water. Land and water have interrelated environmental, cultural, recreational, health, and economic values, all of which need to be considered when developing policy and regulatory interventions on how these resources are used. Commercial farms produce the bulk of the nation s exports, although there are many small farms associated with part-time and hobby farming. Within the farming sector there is likely to be a continuing shift to larger farms. To remain economically viable, farmers have tended to amalgamate units or lease neighbouring properties to gain the benefits of economy of scale. As farms get bigger the entry cost also rises, meaning some new entrants must start on a smaller scale and slowly build to what they want to achieve. Acquiring an economically viable farm is also being affected by the proliferation of lifestyle blocks and the subdividing of farms into smaller holdings. However, district plan requirements may be having some rationalising effect by setting minimum size limits on land subdivision, and controls on issuing building consents and major changes in land use. Debate continues on preserving the best soils for farming and allowing urban development on only poorer soil sites around the main urban areas. As a result, two trends are present one is towards amalgamation, which is limited by relatively high land prices; the other is towards subdivision, which is constrained by district plan requirements. Current trends are for greater expansion of dairy production in the South Island, at the expense of beef and sheep farming, and increased plantings of exotic forest on marginal sheep-farming land, particularly on the East Coast of the North Island. Dairy production intensifies land use and increases the demand on services. Local communities are supported and better services can be maintained. Conversely, forestry may result in the depopulation of rural areas, as residence may not be required and the crop has a long gestation period. In these areas there is a risk that social services will decline for those who remain and they may become more isolated (see topic 8). Other dynamics that impact on land use include: marginal land no longer being economical to farm high country Crown leases not being renewed and the land reverting to the conservation estate intensification the increased demand for irrigation. About 30 percent of New Zealand s land area is forest, most being natural (23 percent) and the balance plantation (7 percent), of which nearly 90 percent is Pinus radiata. The 42

55 value of New Zealand s forest product exports exceeds $3billion per year. But trees also have economic value when left as a carbon sink. The Permanent Forest Sink Initiative provides for landowners to establish permanent forest sinks and obtain tradable Kyoto Protocol compliant emission units in proportion to the carbon sequestered in their forests. Table strategy/plan/reports Strategy/plan/report Permanent Forest Sink Initiative Sustainable land management and climate change a public consultation Ministry of Agriculture and Forestry (MAF) MAF Table agency accountabilities Agencies with key statutory accountabilities associated with topic Ministry of Agriculture and Forestry Ministry for the Environment Fonterra / Livestock Investment Corporation Land Information New Zealand Level of accountability Primary land use Major Shared Shared 7: Environmental sustainability, biodiversity, and integrity How sustainable are our farm-management practices including animal health and welfare and are farmers and other users factoring in the full social cost of natural resources consumed? What is the agricultural sector doing to reduce greenhouse gas emissions and/or compensate through environmental enhancements and maintaining biodiversity? There is growing pressure to understand and take action to address the negative environmental impact caused by the primary industries; the impact needs to be balanced with the positive contributions the industries have. New Zealand s land-management sectors (agriculture, horticulture, and forestry) are most vulnerable to the weather extremes associated with the predicted long-term impact of climate change. A significant part of New Zealand s economy is based on the way land is managed; policies to reduce greenhouse gas emissions need to be developed to protect our international economic and trade interests. Sustainable Land Management and Climate Change (2007), proposes policies for the agriculture and forestry sectors, to be developed and implemented through a 43

56 collaborative action plan. The plan contains a set of goals to guide action on climate change, and identify which actions could have immediate effect. It also shows how the government and sectors could work together to create long-term solutions. A wide number of options were canvassed for the plan, including measures to help the landmanagement sectors adapt to the impact of climate change, reduce emissions, create carbon sinks, and capitalise on possible business opportunities. Specific environmental issues affecting agriculture include: possum and tuberculosis control introduced diseases of rabbits (rabbit calicivirus disease) excessive use of fertilisers, pesticides, and animal remedies delayed effects of previous soil treatments (eg DDT) sites contaminated by agricultural chemicals run-off from dairy farms and piggeries soil and plant cover, and erosion; Hieracium control river erosion, high country management nitrous emissions and methane in agriculture forestry and carbon sinks. The implication of the focus on the environment for agriculture is that regional and district councils will need to periodically update regional and district plans for managing the threats to the environment. This management involves detailed knowledge of the processes and will require new endeavours from the science community. Reference to statistical sources, for details of the farm population, boundaries of farms, and farms key physical and financial parameters, will be needed. Under the Kyoto Protocol, New Zealand has to limit its levels of greenhouse gas emissions to 1990 levels during the period 2008 to If this target is not reached, the country will have to take responsibility for any excess emissions. In New Zealand, agriculture is the sector with the highest total greenhouse gas emissions, made up of methane (with a global warming potential (GWP) of 21, relative to carbon dioxide (CO 2 )) and nitrous oxide (with a GWP of 310). About half New Zealand s total greenhouse gases come from agriculture. The forestry sector is a net sink of carbon dioxide that is, growing forests absorb CO 2 rather than emit it. Trees convert atmospheric CO 2 into carbon that is stored as wood and soil organic matter. New Zealand expects to absorb up to 57 million tonnes of CO 2 during , in forests planted after 1990 (see topic 6). New Zealand s high level of endemic biodiversity makes a unique contribution to global biodiversity and places an obligation to ensure its continued existence. The indigenous biodiversity native species, their genetic diversity, and the habitats and ecosystems that support them is of huge value to New Zealand and its people, to the economy, to quality of life, and to identity as a nation. 44

57 Since New Zealand was first settled, biodiversity has been lessening from the destruction of habitat, harvesting by humans, and successive waves of pests, weeds, and diseases. Extinctions have been rapid and threats to the indigenous biodiversity, although changing form, have continued. Today, around 1,000 native animal, plant, and fungi species are under threat. The warning of the State of New Zealand s Environment report (1997) that indigenous biodiversity decline is our most pervasive environmental issue, is still valid today. Table strategy/plan/reports Strategy/plan/report Sustainable Land Management Strategy 1996 Sustainable land management and climate change a public consultation Land Cover Database Creating our Future Sustainable development for New Zealand New Zealand Greenhouse Gas Inventory Climate Change Solutions: Whole of Government Climate Change Work Programmes State of New Zealand s Environment report 2007 OECD Environmental Performance Review of NZ 2007 Tiakina Aotearoa: Protect NZ Our Biosecurity Strategy Turning the Tide? A Review of the First Five Years of the New Zealand Biodiversity Strategy: the Synthesis Report Ministry of Agriculture and Forestry (MAF) MAF Terralink Parliamentary Commissioner for the Environment Ministry for the Environment (MfE) MfE MfE MfE MfE Department of Conservation Table agency accountabilities Agencies with key statutory accountabilities associated with topic Ministry of Agriculture and Forestry Local government Ministry for the Environment Fonterra / Livestock Investment Corporation Ministry of Economic Development Crown research institutes Level of accountability Primary land use Major Shared Shared Shared Contributory 8: Rural social capital What makes up rural society (including the capital structure of farming enterprises)? How well serviced are New Zealand s rural communities and what is their overall state of social well-being relative to urban New Zealand? 45

58 New Zealand farms are substantial businesses the average dairy farm has total assets of $4.2 million and a sheep and beef farm has $3.8 million, with larger properties running assets worth over $10 million. Trends in farm income (from agricultural activities, farm-household income, and debt/equity ratio) are indicators of the prosperity of rural New Zealand. For businesses to prosper in rural communities, infrastructural barriers need to be removed or at least managed to ensure equitable and workable access to essential services (emergency, health, education, transport, telecommunications, and electricity). Table agency accountabilities Agencies with key statutory accountabilities associated with topic Ministry of Social Development Department of Labour Ministry of Economic Development Ministry of Education Te Puni Kökiri Ministry of Agriculture and Forestry Level of accountability Primary Shared Shared Shared Shared Contributory Farming is at the heart of New Zealand s national identity (as demonstrated by the longevity of the TV programme Country Calendar). The primary industries have strong synergies with the food, wine, and tourism sectors. Tourism is an important source of the renaissance occurring in rural and provincial communities. While the Census of Population and Dwellings remains the main source of population data for the agricultural sector, there is a need to be aware of any changes in social and demographic factors that will affect the sector in the future. These include the age of farmers, structure of the workforce, size of farm units, employment conditions, and the level of services provided. Stakeholder accountabilities Table 4.15 covers key government agency involvement in the enduring topics, although is by no means an exhaustive assignment of accountabilities against the topics. Agencies with key statutory accountability are likely to be already publishing official statistics for the topic and are therefore key stakeholders of the Agriculture, Horticulture, and Forestry Domain Plan. Accordingly, they are the agencies with whom the most extensive consultation has taken place throughout development of this domain plan. 46

59 Figure 7 Stakeholder matrix for agriculture, horticulture, and forestry domain (statutory accountability mainly, but also data source involvement) 47