Executive summary
New Zealand agriculture must find innovative pathways to address climate, regulatory, and social requirements while responding to international commodities markets. This report explores key inflexion points for prioritising sustainable practices while enhancing market opportunities for the NZ primary sector. The research included a comprehensive literature review of the supply chain and mechanisms for regulating (policy), incentivising (biodiversity credits, subsidisation, supplier premiums), and creating value in the marketplace. In addition, 9 semi-structured interviews with key stakeholders generated insights and sentiment towards levers for innovation. Interview responses and literature supported market value as a fundamental driver of sustainable innovation. However, a disconnect was observed across industry stakeholders towards levers for innovation (e.g. biodiversity credits, supplier premiums, and regulation).
Farmers and consumers as opposing ends of the supply chain are points of inflexion that could drive systemic transformation but require incentivisation, regulation and support from the wider industry through a collaborative value chain (CVC). Traits inherent to a CVC include stakeholder collaboration through market intelligence, information dissemination, and stakeholder responsiveness. Independent extension helps to connect stakeholders disseminating market signals and channelling innovative ideas to early-adopter farmers. Export commodities are supported by natural capital: fertile soils, pristine landscapes, and a temperate climate to support pasture growth. While NZ is capital-poor, investment in natural capital is vital for ensuring the sector can support future generations.
Primary Recommendations
- Adoption of a CVC by all stakeholders of the supply chain through independent market intelligence, information dissemination and responsiveness to market signals.
- Regulation and incentivisation specific to the biophysical context (land use, region, catchment etc.) which set clear long-term boundaries.
- Knowledge transfer through an independent extension system to glue innovative farmers with new ideas, and foster science commercialisation.
- Farmer-led initiatives connecting early adopters/innovators with those requiring more evidence to generate volume that can be leveraged across the wider value chain.
- Honesty in branding to tell our authentic story and emotionally connect to consumers
- Industry-level discussion on biodiversity credits: as a verification tool using remote sensing technology, to incentivise, increase awareness and diversify income.
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