The Year in Review
This section illustrates how our work and achievements over the past year have contributed towards our outcomes.
Overview of Achievements
Outcome 1: Sector Development - New Zealand's economic growth and prosperity are enhanced through high performing and innovative sectors.
Outcome 1.1: foster innovation and growth in the sectors.
Impact Measures
- Improvement in total factor productivity in the sectors.
- Increase in skill levels in the sectors.
- Increase in levels of business investment in physical and capital assets in the sectors.
- Increase in public and private investment in intangible assets in the sectors.
- Increase in proportion of total sales in the sectors that compete on attributes other than price.
Innovation is a key driver of long-term sectoral performance. The Government has expressed a willingness to partner with business to facilitate enhanced growth and innovation. MAF is working to foster this approach.
Work over the past year has included:
- Measuring 'total factor productivity' in the sectors as a basis for future reporting.
- Continued association with various industry groups to work on issues such as employer training, leadership development, labour and skills demand, and cross-crediting of industry training courses to university qualifications. A highlight was the development of the Seasonal Labour Strategy for Horticulture and Viticulture in collaboration with the Department of Labour, the Ministry of Social Development and industry. This work seeks to ensure the sector has access to skilled people, with a view to lifting productivity within the sector on a sustainable basis.
- Contributing to dairy reforms and the new regulatory frameworks. These contributions have led to new investments in high-value dairy products, such as the Open Country and Synlait dairy ventures.
- Establishing post-entry quarantine facilities to support future industry investment in plant breeding and initiatives to commercialise new plant material in order to facilitate innovation and risk management in the sectors.
- Identifying opportunities to lift the contribution of the food and beverage sector to the New Zealand economy.
Outcome 1.2: Effective and efficient regulatory regimes for the sectors.
Impact Measures
- Reduction in number and impact of regulatory barriers to innovation in the sectors.
- Enhancement of the ranking of New Zealand sectors by international benchmark comparisons of effective and efficient regulatory regimes.
- Reduction in the costs to the sectors of complying with New Zealand-imposed regulatory requirements.
Regulation must balance the need for achieving public good outcomes with the need for businesses to be dynamic and innovative. It must also be implemented as efficiently as possible to minimise costs to businesses, consumers and taxpayers. MAF administers a number of regulatory regimes and works with other government agencies and industry to address compliance costs and other issues.
NZFSA, for example, is working to put in place a comprehensive, up-to-date regulatory framework for producers, processors and retailers through the Domestic Food Review and through a review of the imported foods programme. The dairy industry also moved to a regulatory framework based on the Animal Products Act, aligning more closely to the regulatory model and a risk approach.
Outcome 1.3: Enhanced prosperity for MAori engaged with, or participating in, the sectors.
Impact Measures
- Enhancement in the total factor productivity of Māori-owned agricultural, horticultural, food and forestry businesses.
- Enhancement in median per capita income of Māori engaged in the sectors as owners, employees or beneficiaries.
The scope for Māori to maximise the economic potential of their agribusiness and forestry resources through lifting productivity will directly influence New Zealand's growth potential and per capita income.
MAF is seeking to identify ways to encourage the wider adoption of best practice among Māori businesses. It is also assisting in the development of policies to enhance Māori land development through improved management and governance structures. MAF has also undertaken extensive research into opportunities to lift Māori skills and labour market participation in the sectors.
MAF's forestry operational work is carried out under the Crown Forestry label by a small team managing a significant forestry resource located on Māori and Crown-owned land subject to Treaty of Waitangi claims. In challenging market conditions, Crown Forestry has continued to deliver very creditable financial results for both the Crown and Māori landowners. A cash surplus of about $23 million was returned to the Crown, while about $9 million was paid to Māori as rent and stumpage payment in the 2004/05 year. This year, Crown Forestry has also been able to return 2,700 hectares of forestry land to the full control of Māori landowners, while ensuring the Crown's financial interests are fully recognised. This is one of the more effective programmes impacting on the wellbeing and economic independence of Māori. MAF is very proud to be associated with this partnership arrangement.
Outcome 1.4: Enhanced business environment for rural communities.
Impact Measures
- Reduction in cost differentials related to infrastructure, energy and communications services for rural community-based businesses compared with non-rural counterparts.
- Reduction in deficiencies in availability and quality of infrastructure, energy and communications services for rural businesses compared with non-rural counterparts.
MAF's contribution to enhancing the business environment for rural communities in 2004/05 included the provision of policy advice in respect of a number of energy, telecommunications and transport-related issues. In most instances this advice represented contribution to the policy work of other government agencies.
Case Study: Indicators and Other Quantitative InformationThe MAF Innovation and Research function includes a quantitative team that undertakes forecasting for the key agricultural industries and produces New Zealand's official agricultural and forestry statistics. The team's contributions are used widely, both within MAF and by external stakeholders. Currently, Innovation and Research is working with Statistics NZ and other Government Departments on the development of a suite of performance indicators, spanning the economic, environmental and social domains. The final set will include core indicators linking the National, Regional and Territorial Authority levels and other quantitative information. |
Outcome 2: Safe and freer rules-based trade.
Outcome 2.1: Maintained and enhanced market access for agricultural, horticultural, food and forestry products and reduced market distortions resulting from trade rules and market interventions.
Impact Measures
- Reduction in number and economic magnitude of unjustified trade barriers to New Zealand agricultural, horticultural, food and forestry exports.
- Reduction in economic loss to New Zealand exporters resulting from agribusiness, food and forestry producer and export subsidies in other countries.
- Increase in revenue from products exported as a result of newly acquired access provisions.
MAF provides crucial support to MFAT in trade and market access negotiations.
In July 2004 a negotiating framework was agreed for the agriculture negotiations of the WTO Doha Round. The framework includes the agreement that all export subsidies will be eliminated - a major achievement for New Zealand agricultural exporters. The framework also specifies substantial market access improvement for all products through a combination of expansion of tariff-rate quotas and tariff reduction.
At present, negotiators are working to get agreement on specific “modalities” that will define, among other things, by how much WTO members will have to reduce their tariffs, and how domestic and export subsidies will be addressed. It is envisaged the sixth WTO Ministerial Conference in Hong Kong in December 2005 will reach agreement on these “modalities”.
Outside of the WTO negotiations, work has continued on securing access to a range of markets for the country's primary products. The Closer Economic Partnership (CEP) with Thailand was successfully completed and came into force on 1 July 2005. The comprehensive elimination over time of all Thailand's tariffs under the CEP will open up significant trade opportunities for New Zealand.
Other contributions included:
- A wide ranging study to estimate the potential benefits and costs of a free-trade agreement with China. The results of this study, in which agricultural and forestry sectors figured prominently, led to the current negotiations with China.
- The successful conclusion of the Trans Pacific Strategic Economic Partnership Agreement in June 2005. Involving New Zealand, Singapore, Brunei and Chile, the agreement promotes trade liberalisation and facilitation, high-quality benchmarks on trade rules, and economic and technical co-operation.
- New Zealand's ratification of the World Wine Trade Group Mutual Acceptance Agreement on Oenological Practices, which came into force on 1 March 2005. The agreement ensures the parties cannot close their markets on the basis of objections to New Zealand oenological (winemaking) practices unless there are legitimate human health and safety concerns.
Outcome 2.2: Credible and trusted animal and plant product assurance.
Impact Measures
- Enhancement in level of compliance by exporters with animal and plant product assurance requirements.
- Reduction in number and cost of rejections of New Zealand animal and plant product assurances by overseas authorities as a consequence of failure of the New Zealand assurance systems to meet requirements.
The credibility of New Zealand's official assurances on food safety affects international perceptions of its exports, which have an important impact on market access.
The credibility of New Zealand's primary produce exports have generally been enhanced or maintained during 2004/05. The meat and seafood industries, in particular, have generally demonstrated improved levels of compliance.
Outcome 2.3: Balanced export and import regime covering the safety and suitability aspects of trade in animal and plant products.
Impact Measures
- Demonstration of any inconsistencies in New Zealand's treatment of imports and exports.
As a trading nation, New Zealand cannot expect other nations to accept its exports if it is not prepared to apply comparable rules and criteria to imported goods.
In recognition of this fact, Biosecurity New Zealand is in the process of developing a single new process for import health standard development following a wide-ranging review of existing methodologies.
MAF has been working with the Ministry for the Environment and the Environmental Risk Management Authority (ERMA) on policy options for improving the interface between the Hazardous Substances and New Organisms (HSNO) Act 1996 and the Biosecurity Act 1993. This will provide a consistent regime for managing the risks of all organisms entering or arriving in New Zealand. Substantive progress was made on projects under the new organism enforcement programme, including those relating to containment, conditional release, development of standards and definitions used in standards.
Outcome 2.4: Protection of land-based and aquatic environments, primary production systems, trade, and human health and wellness from biosecurity pests.
Impact Measures
- Fewer new incursions by harmful biosecurity pests.
- More interceptions and less slippage of biosecurity pests at the border.
- Reduced damage caused by biosecurity pests that have established in New Zealand.
During 2004/05, MAF took the lead on implementing the Biosecurity Strategy, a role consistent with its accountability for leadership and oversight of the biosecurity system.
Greatest effort has been directed into establishing structural and governance arrangements to enable delivery on the Biosecurity Strategy's vision. Key achievements include:
› Restructuring of MAF's Biosecurity Authority to establish Biosecurity New Zealand according to key points of biosecurity intervention.
- Development of an integrated risk management framework as a mechanism to guide resource allocation in biosecurity.
- Strengthening relationships with external stakeholders through the establishment of three main forums: the Biosecurity Chief Executives Forum, the Biosecurity Ministerial Advisory Committee and the Central-Regional Government Biosecurity Forum.
- Review of MAF Quarantine Service's management structure to ensure adequate leadership and support to frontline staff and a smooth alignment with Biosecurity New Zealand.
MAF tested its capacity to respond to a foot and mouth disease (FMD) outbreak in Exercise Taurus in April 2005. This was quickly followed by a real FMD scare following an anonymous letter claiming release of the disease on Waiheke Island, which subsequently turned out to be a hoax. The lessons learnt, along with those from Exercise Taurus, will be used to review MAF's emergency response systems and capability.
During 2004/05, MAF progressed its new leadership role for pest management by starting the process of clarifying pest management priorities, roles, responsibilities and funding arrangements to identify future pest management capability needs.
MAF has begun work on developing a comprehensive generic incursion response system to enable early and effective eradication and control of serious pests and diseases entering New Zealand.
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Outcome 3: Healthy New Zealanders.
Outcome 3.1: Safe and suitable food for New Zealanders.
Impact Measures
- Reduction in number, type and impact of food-borne illnesses in New Zealand.
- Improvement in compliance with New Zealand food standards.
The management of public health risks associated with food and food-related products contributes not just to public health outcomes, but to New Zealand's international reputation as safe and suitable food producer.
Two major reviews are now underway to enable NZFSA to put in place a regulatory programme to achieve the desired outcome.
The Domestic Food Review was initiated in 2004. Its purpose is to establish a regulatory programme covering food from production through to consumption. The second project is the review of the imported foods programme. An independent review team has completed its report. NZFSA will respond to the recommendations and implement any necessary measures during 2005/06.
Outcome 3.2: Reduced impacts on human health and wellness from biosecurity pests and pest management activities.
Impact Measures
- Reduction in the incidence of disease and adverse health effects in humans caused by biosecurity pests.
- Avoided, prevented or reduced health effects from biosecurity activities.
- Reduction in the impact of harmful biosecurity pests on the quality of New Zealand's recreational and cultural use and experience of the environment.
Protecting human health, like protecting the economy and environment, is an important biosecurity outcome. In 2004/05, this outcome was reflected in work such as research currently underway into the effects on public health of the painted apple moth spraying programme. The findings of the research should help address community concerns about the spraying programme.
Outcome 4: Management of natural resources to meet the sustainable economic, environmental and cultural values, aspirations and obligations of New Zealanders.
Outcome 4.1: Sustainability of agricultural, horticultural, food and forestry-related land, biological and water resource use.
Impact Measures
- Reduction in the erosion and degradation of New Zealand's soil resources.
- Enhancement in the sustainability of New Zealand's allocation and management of freshwater resources.
- Improvement in the quality of freshwater.
- Improvement in the sustainability of New Zealand's biological resources.
Through its joint leadership of the Water Programme of Action, MAF is seeking to improve water allocation and management in New Zealand by raising public awareness of water management issues and developing innovative responses to allocation management issues.
With the assistance of the Sustainable Farming Fund, MAF has been active in developing and disseminating best practice in relation to riparian management and improved targeting of the application of fertilisers and agrichemicals to improve water quality.
MAF is also assisting in policy development on the management of hill country in response to erosion resulting from adverse events and contaminants in fertiliser. The East Coast Forestry Project is an example of this work. Through a grant scheme, MAF is encouraging more sustainable land use for 60,000 hectares of the most erosion-prone land on the East Coast.
Outcome 4.2: Protection from biosecurity pests of the economic, environmental, recreational and cultural values and benefits associated with land, biological and water environments.
Impact Measures
- Reduction in the number of species, terrestrial and aquatic sites and environments threatened by biosecurity pests.
- Increase in the number of species, terrestrial and aquatic sites and environments being protected by biosecurity programmes.
Incursion management was a major focus for MAF's biosecurity programme in 2004/05.
Apart from Exercise Taurus and the Waiheke Island incident (page 19) other responses included:
- Continued surveillance for fall webworm during 2004/05 after further moth discoveries in Auckland. Continued surveillance was undertaken in western Auckland for painted apple moth to confirm eradication, and in Otahuhu, Auckland to determine the existence of any populations of painted apple moth.
- Ongoing eradication programme for Asian gypsy moth during most of 2004/05. MAF was pleased to announce successful eradication of this destructive pest after finding no further moths or larvae. In May 2005, MAF was also able to declare eradication of Australian subterranean termites - one of the world's most destructive forestry pests.
- Detection of the freshwater alga Didymosphenia in Southland's Waiau-Mararoa river system in October 2004 has prompted an on-going response that involves assessing its spread and undertaking a comprehensive impact assessment.
- New national pest management strategy to keep the South Island free of varroa came into effect in early 2005. Varroa, a major parasite of honeybees was discovered in Auckland in 2000 and is now widespread throughout the North Island.
Outcome 4.3: Protection of Maori biologically-based economic resources.
Outcome 4.4: Protection of Maori biologically-based cultural resources.
Impact Measures
- Reduced damage to animal, plant and seafood resources of economic significance to Māori caused by biosecurity pests.
- Reduced damage to Māori biologically-based cultural resources caused by biosecurity pests.
The creation of Biosecurity New Zealand in November 2004 laid the groundwork for MAF to respond fully to this outcome. Significant work is now underway to ensure involvement by Māori and explicit consideration of Māori values, including:
- A risk analysis and management framework to assist in assessing of the impact of incursions on Māori economic and cultural resources.
- Development of a process to determine issues of economic and cultural significance to Māori in biosecurity response and management.
- Identifying marine species of economic and cultural significance to Māori.
- Consultation with iwi to shape incursion responses. For example, the initial impact assessment of the freshwater alga Didymosphenia involved discussions with key Māori groups to help understand the values attributed to waterways.
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Contact for Enquiries
Strategy and Performance Group
Ministry of Agriculture and Forestry
Pastoral House
25 The Terrace
PO Box 2526, Wellington
Tel: +64 4 894 0100
Fax: +64 4 894 0738
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