Tuesday, 11 August 2020 10:03

Govt to pick winners?

Written by  Mark Daniel
Phil Twyford. Phil Twyford.

A brace of politicians recently hit Zespri’s Mount Maunganui headquarters to kickstart the already announced Agritech Industry Transformation Plan after a three-month delay due to Covid-19.

Minister for Economic Development Phil Twyford described the initiative as a “gamechanger” because it brings together six government departments. 

He claimed it would help the agritech sector grow from its current level of $1.5 billion per annum by focusing on exports and by increasing efficiency and production within a host of primary industries.

With $11.4 million committed to the plan, Twyford said that most talent in the New Zealand agritech sector was directed inwards, although collectively they had the potential to solve much larger global issues.

“I believe we need to get much better at commercialisation,” he said.

“Develop our workers and bring the private sector and research communities together.” 

Twyford said that for the last 30 years, the country’s economic focus had been on GDP growth, driven by a growing population, which in turn had led to stubbornly low productivity.

Looking at the wider picture, he advocated supporting industries that had a competitive advantage in areas such as advanced manufacturing, digital technologies and, of course, food and fibre. 

“Picking winners has been out of fashion for the last two decades.” 

However, Twyford said, some countries did successfully “pick winners”, particularly Ireland, Singapore and Israel, who all bat higher in world agritech rankings than us, with Israel’s agritech sector being ten-times larger than New Zealand’s.

Agriculture Minister Damien O’Connor echoed Twyford’s sentiments, suggesting the need for a trans-Tasman alliance and a better understanding and stimulation of local agritech adoption. 

O’Connor believed the issue of rural connectivity might be preventing producers from change but believed they could be won over with the promise of better earnings.

“This plan links strongly with the values of Te Taiao [the recently released Primary Sector Council report], recognising the need to increase the primary sectors’ value over volume – while working towards a lower and sustainable environmental footprint.”

Rezare Systems managing director Andrew Cooke praised the agritech plan’s intent, but warned against believing that the promise of higher revenue was the only motivation being considered by today’s farmers. 

He suggested that sharing farm data was also important, but also raised the question of a common standard for data collection and dissemination. 

Cooke proposed that there was a need to shorten the time between concept development and product launch. 

The latter can only really be achieved by early-stage funding, an area that is addressed by this plan, alongside the $300m venture capital fund established in last year’s Budget.

More like this

Positive first year for ZAG fund

As it enters its second year, Zespri says the first year of the Zespri Innovation Fund (ZAG), has been “really positive”.

Export prices set to remain elevated

Horticultural prices are set to remain elevated this year, reflecting the balance between demand in key export markets and an increase in supply.

Featured

Hort industry dishes out awards

Research and healthcare initiatives, leadership and dedication to the sector have been recognised in the 2025 Horticulture Industry Awards.

Manuka honey trader posts sour results

Manuka honey trader Comvita slumped to a $104 million net loss last financial year, reflecting prolonged market disruption, oversupply and pricing volatility.

Poultry industry, Govt sign landmark biosecurity deal

The Government has struck a deal with New Zealand's poultry industry, agreeing how they will jointly prepare for and respond to exotic poultry diseases, including any possible outbreak of high pathogenicity avian influenza (HPAI).

National

Machinery & Products

» Latest Print Issues Online

The Hound

Faking it

OPINION: Demand for red meat is booming, while it seems the heyday of plant-based protein is well past its 'best…

M.I.A.

OPINION: The previous government spent too much during the Covid-19 pandemic, despite warnings from officials, according to a briefing released…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter