The New Zealand Institute of Economic Research has explored the regulatory framework essential for commercial vegetable production in New Zealand. This analysis, commissioned by Horticulture New Zealand (HortNZ), coincides with the government's reconsideration of freshwater management strategies.
HortNZ advocates for a National Direction for Vegetables and a more feasible regulatory pathway for freshwater management for growers. The organization warns that without such measures, proposed regulations targeting nitrogen run-off could lead to increased fresh vegetable prices.
An options analysis approach was employed to evaluate different strategies, supporting HortNZ's call for a National Direction. The report underscores the necessity and feasibility of this direction, emphasizing the significance of domestic vegetable production for New Zealand.
The report reveals that the current interpretation and implementation of the National Policy Statement for Freshwater (NPS-FM) by councils could negatively affect vegetable production, resulting in price hikes. Testing HortNZ's concerns, an analysis of broccoli prices over the last decade suggested that a 20% production restriction could have elevated prices to $27 a kilo, or approximately $9 a head.
When shaping strategies for biological industries, understanding intricate details is vital. A uniform approach is ineffective. Robust legislation requires insight into industry practices to comprehend policy impacts. New Zealand's commercial vegetable production has unique traits, as the country cannot import fresh vegetables at current prices due to specific climate, soil, and topography constraints.
The report assesses freshwater management options for commercial vegetable production (CVP) and the economic outcomes of proposed regional regulations. It highlights CVP's importance, regulatory frameworks, and contaminant measurement methods by councils, identifying unintended consequences of restricting production.
To sustain CVP growth and meet national needs, priority should be given to vegetable growing, including priority allocation of nitrogen contaminant loads within freshwater limits. Action plans should support targeted freshwater outcomes. While retaining much of the NPS-FM, clearer priorities for human health, including vegetable production, are necessary for consistent council approaches.
Legislation should permit current and new vegetable production within a freshwater farm plan. Regulatory barriers to typical industry practices, such as moving production sites, are problematic. Where freshwater limits alone are insufficient, action plans can be developed with local and central government collaboration and resources.
Implementing a Good Agricultural Practice Environment Management System Add-on (GAP EMS) framework ensures safe and sustainable vegetable production, focusing on maintaining output while minimizing nitrogen leaching and sediment discharges. A combination of top-down and bottom-up approaches is required. A national freshwater plan is essential, considering the impact of production restrictions on New Zealanders. Businesses need certainty, particularly in biological processes. Vegetable growers must assess whether regulations will permit continued production. A durable policy approach is necessary to prevent recurring revisions and avoid cost implications that could burden consumers.
Source: NZ Herald