Foreword
This paper was developed by MAF Policy Information and Regions Group staff to provide information on the socio-economic contribution irrigation currently makes to the New Zealand economy, and an estimate of the potential to add to economic growth.
The purpose of the analysis, which was initiated before the Programme of Action (PoA) on water was started, is to examine the economic contribution of current and potential water use through irrigation in the knowledge that the benefits of water for other uses are being addressed separately.
The report therefore makes no judgement on the relative merits to other complimentary or competing water uses.
The report has been released in MAF’s Technical Paper series to make the information more widely available to the range of stakeholders who have an interest in the impacts, management and allocation of water.
The calculations have been done on data from the 2002/03 production season, as this is the year for which information was most readily available. Farm product prices for most products were down from the peaks experienced in the preceding two seasons, and more in line with medium term average prices. The results therefore reflect the order of magnitude of the average contribution irrigation makes to the New Zealand economy at farm gate in recent years. The section on social values brings together the key findings of several research projects conducted in recent years.
The contribution of water to the national interest has many forms. The socio-economic value of irrigation is only one of them. There are also very important conservation, environmental, recreational and cultural values of water. The use of water for irrigation can impact on all these values in various ways, some positive and some negative. Development and management of the irrigation farming system can have a significant bearing on the impacts of irrigation on these other values. These aspects are not addressed in this paper, but the intention is that the information contained in this paper be considered alongside information on these other interests.
I would like to acknowledge the efforts of MAF Policy staff and external contributors to the assumptions and data used in this analysis. It is our expectation that the release of the report will stimulate discussion around some of the assumptions and data. It is our intention to test the significance of these in further analyses.
I commend this report to all that have an interest in water allocation and
use.
Alan Walker
Director
Policy Information and Regions
MAF Policy
Contact for Enquiries
MAF Information Services
Pastoral House
25 The Terrace
PO Box 2526
Wellington, NEW ZEALAND
Fax: +64 4 894 0721
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