Supporting the development of a primarily economic rationale for a transition to more environmentally responsible production processes, including organic production, in New Zealand’s major export-oriented primary sectors.

EU GREEN DEAL: IMPACT ON NEW ZEALAND’S LAND-BASED PRIMARY PRODUCERS.

TECHNICAL REPORT, FUNDED BY OUR LAND OUR WATER NATIONAL SCIENCE CHALLENGE.

Authors: Tiffany Tompkins, Alistair Schorn, Dr Jessica Hutchings, Associate Professor Jo Smith.

May 2023.

An umbrella of policies was adopted in 2020 to make the European Union climate neutral by 2050. Some areas of this policy, particularly agriculture, will likely pose significant challenges for New Zealand's primary export sectors.

Several areas of focus for the EU Green Deal are likely to pose significant challenges for New Zealand’s export sectors, not only directly in the context of the New Zealand-EU Free Trade Agreement (FTA) but also due to the potential for the EU’s practices and regulations to become de facto global standards for sustainable trade, and to be adopted by New Zealand’s other major trading partners.

The regulatory regime in New Zealand (both current and proposed) appears to lag significantly behind the equivalent systems emerging in the EU. This implies that New Zealand’s legislators and regulators, along with industry representative bodies in major export-oriented primary and food-producing industries, will need to significantly increase the levels of environmental and social ambition inherent in the policies currently under development in New Zealand. Failure to do so might result in significant reductions in the levels of market access available to New Zealand exporters, not only in the EU but also in other major markets such as China, the USA and the UK, as these countries are compelled to increase their own ambition levels in these areas, to protect the interests of their domestic producers.

Organic agriculture is seen by the EU as central to increasing sustainable agriculture. The EU Farm to Fork Strategy includes a target of at least 25% of the EU’s agricultural land being under organic farming by 2030, along with a significant increase in organic aquaculture.

In light of these developments, certified organic products from New Zealand are likely to benefit from improved market access into the EU, as the implementation of EU standards and restrictions reduces the scope of opportunities for conventionally farmed products.

OBJECTIVES OF PAPER

This paper seeks to assist in answering these questions by exploring the potential effects of the initiatives set out in the EU’s Green Deal, with particular emphasis on the Farm to Fork Strategy, on New Zealand’s primary export products. The research conducted for the paper focuses on two primary case studies, namely the dairy and wine sectors, to interrogate the potential effects of emerging EU policies on New Zealand’s exports into the region.

In particular, this project seeks to answer the following questions:

1. What are the metrics and desired outcomes within current and emerging EU policies and regulations that might affect New Zealand’s primary sector exports into the region?

2. What are the principal points of difference between EU and NZ policies, particularly regarding environmental performance?

3. What role might the increased organic production in New Zealand play in maintaining or enhancing trade access for exporters into the EU, and in preparing New Zealand exporters for climate, biodiversity and environmental policies that other trading partner nations might implement in the future?

4. What is the impact on Indigenous organics and Hua Parakore in New Zealand, and what is the Treaty obligation that the Government must uphold for mātauranga Māori and the Hua Parakore as outlined in WAI 262?

5. What effect might the increased organic production have in terms of the economic, employment and environmental performance of New Zealand’s primary sectors, with specific reference to identified case studies, namely the dairy and wine sectors?

Acknowledgements

OANZ would like to thank its partner Papawhakaritorito Trust and its Treaty Partners, Te Waka Kai Ora for their insight into the effects of international trade on Indigeneity, including the case study presented on the current negotiations of the Organic Products and Production Bill on the Hua Parakore (Māori organics verification system).

We also thank New Zealand Winegrowers and Fonterra for their assistance with the wine and dairy case studies. A big thank you to Caroline Lambert, Head of Trade for the Delegation of the European Union to New Zealand and her team for sharing their expertise. A special thank you to Claire Bleakley for sharing her expansive knowledge on the impact of synthetic chemical pesticides on bees.

Thank you to our editor Philippa Jamieson and graphic designers Melissa Zissou and Lou Vicente.

Lastly, we would like to thank the OANZ Board for providing valuable feedback. We thank Chris Morrison, Noel Josephson, Viv Williams, Allan Richardson, Clinton Chambers and Susan Miller, and for the research assistance of OANZ’s Future Directors, Giorgia Miller-Thevenard, Eden Skipper, Jaime Tucker and Lachie Davidson.

Organics Aotearoa New Zealand (OANZ) is the national body for the Organic Sector. Its purpose is to protect the integrity of organics and grow the Organic Sector for the health of New Zealand’s people, environment and climate. It works in Treaty partnership with Te Waka Kai Ora (National Māori Organics Authority) to grow Hua Parakore and organics within Māori communities.

The views and opinions expressed in this report are those of the authors and do not necessarily reflect the views or positions of the Our Land and Water National Science Challenge.