Buzz from the Beehive
The headline on a press statement posted on the government’s official website today suggested something significant had been decided for the country’s farmers, growers and fishers.
It declared:
Government focus on long-term food, fibre growth
This declaration of aspiration somewhat camouflaged news of publication of the latest Situation and Outlook for Primary Industries (SOPI) published by the Ministry for Primary Industries and available on the MPI website.
The ministry forecasts show food and fibre export revenue is tipped to reach $54.6 billion this year
But whoa: amid global inflation and lower demand, this year’s forecast result is a 5 per cent dip on last year’s record $57.4b.
Maybe that explains the focus on policy intentions. Under this government, exports will flourish.
Export revenue is expected to lift significantly over the coming four years, with sustained growth forecasting a record $66.6b in 2028.
According to the forecasts, it will hit a record $66.6b in 2028 “as the Government focuses on getting better access to markets and cutting red tape”.
One announcement about the cutting of some of the red tape that is being targeted was made separately, by Food Safety Minister Andrew Hoggard.
The tape won’t be cut yet. First, the government will consult exporters on a new export exemption proposal for food businesses.
The regulatory changes proposed would remove the requirement for individual export exemption applications and assessment by the Ministry for Primary Industries (MPI).
The assault on red tape was reiterated in another statement headed
Ministry for Regulation targets red tape to keep farmers and growers competitive
This enabled Regulation Minister David Seymour to get in on the shredding caper, along with Environment Minister Penny Simmonds and Hoggard.
They announced a regulatory sector review on the approval process for new agricultural and horticultural products.
Another blow being struck on the deregulatory front will enable trucks to pick up the pace when they carry produce around the country.
Fair to say, this one is not only for trucks. The government has announced it will reverse the Labour’s blanket speed limit reductions by 1 July 2025 through a new Land Transport Rule released for public consultation today.
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Government focus on long-term food, fibre growth
Food and fibre export revenue is tipped to reach $54.6 billion this year and hit a record $66.6b in 2028 as the Government focuses on getting better access to markets and cutting red tape.
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Govt consulting on cutting red tape for exporters
A new export exemption proposal for food businesses demonstrates the coalition Government’s commitment to reducing regulatory barriers for industry and increasing the value of New Zealand exports, which gets safe New Zealand food to more markets.
In the statement on food and fibre exports, Todd McClay says:
“The Coalition Government has set the aspirational goal of becoming an exporting powerhouse by doubling the value of our exports in 10 years. Our food and fibre sector will be pivotal to achieving this goal.
“As a small exporting economy, the Government is committed to easing the path for New Zealand’s exports and tackling barriers faced by our food and fibre exporters.”
Shane Jones chimes in:
“The Government is working to ensure regulations are less costly and bureaucratic while protecting our environment, as our domestic and overseas consumers expect.”
An example of this is the recent introduction of the Resource Management (Extended Duration of Coastal Permits for Marine Farms) Amendment Bill. It will extend current resource consents for marine farms by up to 20 years, removing a significant burden on the aquaculture industry and providing certainty for the future of marine farms.”
Andrew Hoggard, in his statement on the consultation which has opened on proposals to reduce unnecessary red tape for exporters, said the aim is to enable food exporters to own and manage the process for meeting importing country requirements.
Exporters would need to meet any conditions specified in regulations. This would be independently verified as part of their existing risk-based measures.
Currently, food produced for sale in New Zealand – and for export – must meet domestic food standard requirements for composition and labelling. When foods for export are produced to meet different importing country requirements, food exporters must apply to MPI for an exemption under the Food Act 2014.
“This is costly and inefficient – for both exporters and MPI,” Hoggard said.
“ It happens on a case-by-case basis, with businesses required to apply for exemptions for each individual product to a designated market.”
Dairy sector representatives, the main users of the existing export exemption process, say the process is limiting their ability to take advantage of export opportunities, innovate and compete in overseas markets.
The options proposed in the consultation better align New Zealand with key trading partners, including Canada, Australia and European Union member countries, Hoggard says.
David Seymour, Penny Simmonds and Andrew Hoggard have set their sights on the approval process for new agricultural and horticultural products.
New products need approval from the Environmental Protection Authority and New Zealand Food Safety. The review will look at the process and the overlap between regulators.
It will not cover gene technology which will be done separately.
“Red tape stops farmers and growers from getting access to products that have been approved by other OECD countries. It can take nine years and wrangling government agencies to get approval here,” says Mr Seymour.
“Farmers overseas are using innovative technologies that we don’t have access to that make animals emit less methane, make fruit and vegetable plants grow faster, and control pests and diseases with less environmental harm.
“If we don’t remove these barriers to productivity, we will fall behind our global competitors when we need to grow the economy through trade.”
The Ministry for Regulation is developing terms of reference and timetable for the review.
Point of Order 