I hope the summer is going well for you and you’ve found some time to get away with your whānau and friends. Maybe you went to the big smoke, or maybe like me, you did a road trip through the beautiful South. I was lucky enough to get some good miles on my motorbike.
It’s not uncommon to get asked for predictions on the New Year. I don’t own a crystal ball and tend not to get drawn into that, so much.
There is however, one significant forecast for 2022 that is very notable and it came out in December 2021 – MPI’s Situation and Outlook for Primary Industries, or as it’s come to be known “The SOPI”.
The December SOPI has forecast that for the first time in Aotearoa New Zealand’s history food and fibre exports will crack $50 billion. Specifically export earnings are forecast to be $50.8 billion for the year-end June 2022, an increase of six per cent on 2021.
Even more positively, that growth is pretty much spread across all sectors. Dairy up 10 per cent to $20.9 billion; meat up six per cent to $11.1 billion, horticulture up five per cent to $6.9 billion; forestry three per cent to $6.7 billion; and seafood up four per cent to $1.9 billion.
In short, we’re experiencing healthy demand in our food and fibre because we have ever more discerning consumers overseas looking for healthier food and natural fibres with strong environmental credentials.
The UK Free Trade Agreement (FTA) is expected to come into force this year. That will see immediate elimination of tariffs on many products, including our biggest export to Britain – wine. And to boot, there will be significant non-tariff quotas on our dairy and red meat.
To help capitalise on that I recently announced we’re investing in a seven-year programme led by Blenheim-based Bragato Research Institute to help future-proof the sustainability of our Sauvignon Blanc grapevines.
Sauvignon Blanc comprises 87 per cent of our wine exports. This new $18.7 million grapevine improvement programme will introduce genetic diversity into our vines, and ensure they continue to thrive in New Zealand conditions.
Anticipated climate change impacts require action now to ensure we continue to be considered the world’s Sauvignon Blanc capital.
New Zealand’s Sauvignon Blanc vines are based on one clone, which presents some risk. Developing improved, commercially available variants of this grape variety will also act as an industry insurance policy against future risks from pests, disease and changing markets.
The Government is investing $7.48 million through the Ministry for Primary Industries’ Sustainable Food and Fibre Futures fund to the programme. Bragato Research Institute, together with industry organisation New Zealand Winegrowers, more than 20 wine companies and the NZ Viticulture Nursery Association are contributing a further $11.22 million in cash and in-kind support to the programme.
Many of our existing vines will need to be replaced in 10 to 15 years in order to avoid a loss in productivity. The new variants could also lead to new flavour and aroma profiles, resulting in exciting new styles of wine that will add further value to the sector.
We also recently passed a milestone with our investment in a growing number of rural community hubs, including several across the Top of the South and West Coast.
Since the programme was set up, funding has been allocated for 20 hubs in rural areas across the country.
Our hubs programme is providing a boost for communities where basic services are out of easy reach. You’ve no doubt read about the achievements of the rural community hub in Tapawera. It’s helping to improve wellbeing outcomes for mothers in the rural settlement.
It can be difficult for new mothers living in rural communities. Their partners are often on-farm all day, or working long hours as contractors, and this can leave mums feeling isolated. The Tapawera Connect Trust is helping to strengthen connectedness and build social resilience in the community.
Finally, COVID-19 will undoubtedly continue to create challenges this year, as we’ve seen with the recent announcement of Omicron cases in the Nelson region. I can’t stress enough the importance of getting vaccinated and receiving your booster shot if you are eligible, monitoring locations of interest, and getting tested if you are feeling unwell or you have been in any location identified as a “close contact”.
Best wishes for the rest of summer.
