New Zealand farmers have to operate at a higher level than they have in the past if they wish to retain their social licence to farm, Agriculture Minister Damien O’Connor says.
The higher standards around water quality and the public expectations around ethical labour and animal welfare practices are realities farmers have to accept, he told farmers during a panel discussion at the Effluent Expo held at Mystery Creek.
«People who live in the rural towns and in the cities want to be able to swim in their local rivers and they want to be able to get access to good quality drinking water.»
That access is under pressure in rural and urban areas.
«The social licence to operate demands that we operate at a better level than we have in the past so we are trying to bring in standards that are clear and be honest and upfront with councils and farmers and say that’s where we need to be to secure our licence to operate.»
While this licence is being brought in by local and central government, O’Connor said there is a direct connection to the increasing expectations of international consumers.
These consumers buy products based on values and want to know that the product they buy have been produced in an ethical way. Technology has enabled a high level of scrutiny from supermarkets and consumers on food products, he said.
«They want to know that we are producing their protein in the best possible way.»
Farming’s social licence is increasingly being imposed by offshore markets, Rabobank’s Emma Higgins said.
«The challenge is to make sure we monetise these high levels of high sustainability and production costs, which I think will happen over time.»
Chinese consumers value quality and food safety in their dairy products while sustainability was ranked second.
The challenge for the dairy industry is to grasp hold of an origin story and market that in markets willing to pay and get values for the values held on farm.
Higgins said this would happen over time with the free trade agreements NZ was negotiating.
«What can you do about it? It’s making sure you walk the talk in terms of building on that sustainability story.»
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