Contextual information – New zealand
Main economic, land use and agricultural characteristics (2004 unless otherwise stated)
GDP per capita (USD) / Population density / Agriculture in GDP / Agriculture in employment19,517 / 15/km2 * / 4.9% * / 8.3% *
Source: NZMAF
Land use / Total area / Forest area / Total agricultural area / Arable land / Grassland000 hectares / 26771 / 8419 / 15640 (2002) / 425 (2002) / 13 183 (2002)
% of total area / 100 / 31 / 58 / 1.6 / 49
Source: NZMAF
* Estimates
New Zealandhas a temperate climate and agricultural soils which have had their fertility improved over time. Agricultureproduction is spread throughout the country and is dominated by pasture-based farms producing dairy or sheep and beef.Agricultural exports totalled 51% of the value of New Zealand’s merchandise exports in 2003, with dairy accounting for 16%, meat and meat products 15%, other pastoral based products 9%, horticulture 7%, and wool 3%.
The average size of a dairy farm is 103 ha, while the size of sheep and beef units varies depending on their location in New Zealand. For example the average farm size for a sheep and beef unit in the central North Island of New Zealand is 550 ha, whereas in the high country of the South Island it is 5 900 ha.
Agricultural policies and support to agriculture
Support to agriculture in New Zealand is the lowest in the OECD and is provided mainly through general budget outlays for basic research and for the control of pests and diseases.Direct payments are granted for adverse climatic events and natural disasters, but only in the event of large-scale emergencies of national significance that are beyond the response capacity of local farmer or grower organisations and territorial local authorities.New Zealand provides no market price support other than tariffs, which are at very low levels, applied to some imported products such as pig meat and poultry, no export subsidies, nor other direct payments to producers.The New Zealand government does not directly control exports of agricultural products.Most producer boards with statutory powers controlling a range of marketing and trade activities have been reformed in recent years. In certain limited cases, statutory export rights have been granted to designated exporters in consistency with international trade obligations.Export marketing is now deregulated, except for kiwifruit. To fund activities such as research and development, quality assurance, and trade policy, some industry organisations have statutory powers to collect levies from producers.These include the Game Industry Board and the Pork Industry Board. The trend is for statutory levies to be replaced by levies under the Commodity Levies Act 1990.Under this legislation, levies can only be imposed if they are supported by producers, and producers themselves decide how levies are spent.
Agri-environmental policies
The main agri-environmental concerns in New Zealand relate toconservation of biodiversity, soil quality, reducing water pollution and addressing adverse events.
Regulation is the main policy measure used to achieve agri-environmental objectives.There are two nationwide overarching pieces of legislation addressing environmental concerns: the Resource Management Act (RMA) (1991) and the Hazardous Substances and New Organisms Act (HSNO) (1996).The RMA brings together laws that govern land, air and water, encompassing an ecosystem approach to environmental management.The key themes in the RMA are: sustaining the potential of natural and physical resources; safeguarding the life-supporting capacity of air, water, soil and ecosystems; and avoiding, remedying or mitigating any adverse effects on the environment.The HSNO aims to protect the environment by preventing and managing the adverse effects of hazardous substances, including pesticides and new organisms including any animal, plant or microbe that is not currently present in New Zealand.Both the RMA and HSNO are implemented by New Zealand’s 74 territorial local authorities, which charge farmers in order to recover costs associated with programmes and applications.
New Zealand’s main agri-environmental budgetary expenditure is on inspection and control measures.Due to New Zealand’s status as an isolated nation, it relies heavilyon its biosecurity programmes to protect its environment.Measures are taken to prevent the entry and establishment of new pests, and effectively manage those pests that are already present.Cost recovery is used to recoup government expenditure on pest management.
Other important agri-environmental measures used by New Zealand to meets its agri-environmental policy objectives are technical assistance and extension, community-based measures and research.
In fiscal year 2003, the government expenditure on agri-environmental programmes represented 21.7% of total government expenditure on agriculture programmes (including general services).
Key information sources
Ministry of Agriculture and Forestry
Ministry of Environment
Sustainable Farming Fund
Sustainable Management Fund
Foundation for Research, Science and Technology (FRST)
Hazardous Substances and New Organisms Act 1996 (HSNO)
New Zealand Food Safety Authority
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