A new report by NZIER warns fresh vegetable prices could increase, possibly dramatically, if the Government doesn't move quickly to provide a clear and workable regulatory pathway for vegetable production.
The report, commissioned by Horticulture New Zealand (HortNZ), gives the example that the price of broccoli could go as high as $27 a kilo, or about $9 a head, if vegetable production is cut by 20% as a result of proposed regulations aimed at reducing nitrogen run-off.
HortNZ commissioned NZIER to consider the regulatory framework required for commercial vegetable production to thrive in New Zealand, given that the Government is rethinking the approach to managing freshwater.
Chris Nixon of NZIER says the report shows the way the National Policy Statement for Freshwater (NPS-FM) is being interpreted and translated into freshwater regulations by councils could severely impact vegetable production, leading to sharp price increases for consumers.
"Without swift adjustments, key crops like broccoli could become significantly more expensive, underlining the need for targeted reforms that support both environmental, freshwater goals and the affordability of healthy food in New Zealand."
The report draws on research estimating that a 20% reduction in vegetable supply would push vegetable prices up by at least 20% and potentially 100%.
HortNZ general manager of strategy and policy Michelle Sands says to avoid this, the Government must prioritise commercial vegetable growing because the supply of healthy vegetables for New Zealanders should be a national priority and not be put in jeopardy.
"While the Government is moving to change freshwater regulations, we encourage it to move further and faster to safeguard the small but irreplaceable commercial vegetable sector to provide a secure supply of affordable healthy vegetables."
The approach sought by HortNZ would provide for water quality improvements across catchments through a balance of reducing nitrogen run-off through regulations and other catchment-wide hydrological interventions such as restoring wetlands to filter out contaminants.
"We seek national freshwater policy and national direction for vegetables that seeks to achieve freshwater outcomes alongside outcomes for national priorities such as enabling the supply of vegetables.
"It is essential to take a nationally consistent approach because while only some areas have the specific combination of soil, climate and resources that vegetables need to grow; these areas supply the whole country.
"Over 80% of vegetables grown in New Zealand are sold for domestic consumption – we don't and cannot import enough vegetables to meet New Zealanders' needs.
"For New Zealanders to have a secure supply of healthy and reasonably priced vegetables, we need fit-for-purpose regulation. Healthy water and access to healthy vegetables are both nationally important and we think achieving them both should be made a priority for New Zealanders.
To read the full report, click here.
For more information:
Hoticulture New Zealand
Tel: +64 04 472 3795
Email: [email protected]
www.hortnz.co.nz