How well are NZ Foreign Policy and businesses supported with research on sustainability and global market responses Caroline Saunders Professor Trade and the Environment Director AERU Commerce Division, Lincoln University

Market Access Trade/ agricultural policy Historically the main factor affecting exports -Other countries subsidised production and exports and restricted imports -EU removing export subsides EU farmers now get direct payments -US Bio-fuel expansion

Market issues Growing demand for compliance with market assurance schemes and labelling in premium market segments If NZ to maintain standard of living we need to target these premium segments more The demands of these schemes include COOL, Carbon, health and nutrition, biodiversity….

Risks and opportunities for our exports To access premium market segments have to consider social & environmental factors Also be prepared to ensure these factors are defensible and not pseudo Food miles ignores production resource use Our report found we are twice as efficient in dairy; four times in lamb; twice in apples and slightly less in onions

Food miles The core data for part of food miles report was collected under ARGOS long before issue raised This enabled us to respond with robust data to this criticism However the funding issue continues Close to market research considered businesses responsibility Business focus on a few months to a few year out and on their own sector not long term research and /or public good issues to NZ

Carbon Footprinting Lot of debate about what should be included A standard methodology being developed by DEFRA, Carbon Trust and BSI (under trial) Offsetting not allowed & reduction is key Carbon Reduction Label – UK Carbon Trust “Climatop” in Switzerland – indicating product less damaging to the climate Canada, Australia, Japan and Sweden are exploring schemes

Attitudes 94% UK population believes climate change real and 66% altering behaviour Awareness of food miles up from 36% in 2006 to 59% in % buy British fruit and veg up from 38% in % unconcerned about source of food, down from 61% 61% thought should import less so environment less damaged, up from 51% 35% supporting local farmers important; 54% not enough local food in supermarkets Quality (75%) highest ranking attribute followed by freshness and then value

Who’s doing what Tesco’s – carbon footprint of 70,000 products! Setting up 8 local source buying offices M & S – investing 200 million pounds – double regional food sourcing by 2012 Sainsbury’s reduce carbon emissions per case transported by 5% 2005/6 – 2009; cease sale of caged birds by 2009 Waitrose - reduce emissions by 10% by 2010 – reduce waste ASDA – promote local produce, cut food miles and extend British growing season - increase British farmers from 2500 to 3500 and increase local food hubs

Market Access issues Carbon emissions and Food miles Lower meat and dairy consumption Local food and seasonal consumption Traceability Health and nutrition Ethical food - fair trade and organic! Biodiversity and wildlife Water quality and quantity

Changing policy EU Single Farm Payment – subsidises farmers to comply with environmental criteria and will include carbon footprinting EU pays extra for farmers to comply with market assurance schemes Market assurance schemes already asking for various requirements and recommendations – biodiversity and environmental criteria generally not compulsory yet but will be soon given the subsidises

Trade and Market Access - NZ built on guaranteed market - Preferential access into EU especially for Sheepmeat - Discontinuous supply chains in many sectors - Focus on research in isolation of market - Focus on technical productivity - Silo mentality

Market issues Study of the high tech sector – funding for research but key need for marketing Current aid NZTE small grants and market intelligence reports – short term Small short term funds available Little investment in medium long term capability Research should be NZ owned and have public good nature

Science Silo mentality within disciplines International science system reinforces this PBRF also reinforces this High quality publications silo discipline driven Little incentive to engage in interdisciplinary work or transdisciplinary work for publications Little or no incentive to commercialise science or engage with business or other communities

Transdisiplinary work Very little being undertaken in NZ or overseas Lot of lip service Very difficult, communication across different languages Recent visitor from Birmingham stated cost twice as much per publication than single disciplinary work

Transdisciplinary research including end users Boundaries of science frequently transformed by transdiscplinary research The genuine engagement across disciplines allows real value added for research for all sectors Changes in incentive structure and design of science programme needed to achieve this

ARGOS – agricultural research group on sustainability Transdisciplinary research with social, economic, environmental and cultural goals Evaluating criteria from all disciplines on range of farms in sheep meat and kiwifriut (dairy) Despite very good relationships between researchers different paradigms and need to collate initial data only now real transdisciplinary work starting after 5 years

Future watch – support for…. assessing factors which have potential to affect our market access and also inform the development of science (GM issue) for socio and economic analysis alongside science research to achieve benefits to NZ investment in infrastructure for social science research Incentives for transdisciplinary work