Monday, 16 September 2019 09:29

Report shows value of ag chem

Written by  Mark Ross, chief executive of Agcarm
Mark Ross, Mark Ross,

A landmark report reveals that without crop protection products, New Zealand’s economy would lose $7.5 to $11.4 billion.

The report covers horticulture, vegetables, forestry, pasture and field crops. 

The NZ Institute of Economic Development recently released the report, ‘The Importance of Crop Protection Products for The New Zealand Economy’, showing that, on average, crops would lose 30% of their value without these products. 

The horticultural sector alone would lose 75% of the value of its crops, resulting in a $4b loss to the industry and the economy.  This would severely affect our growers, who wouldn’t be able to grow commercial quantities of crops without these products. Yields would be much lower and the economic impact substantial.

Not only does the crop protection industry have an important part to play in supporting the economy, it is also vital for producing safe food and protecting crops from damaging pests and disease. It develops tools to manage biosecurity incursions which damage our native species and crops.

A severely reduced kiwifruit production would have resulted from the 2010 PSA outbreak. The use of these products was a vital part of managing the deadly bacteria which could kill a kiwifruit vine if left unmanaged. 

On the plus side, even a small increase in horticultural productivity has a ripple effect in boosting the economy. Innovation can have a substantial effect on productivity, with a small increase being worth $10m to $100m. 

The industry ensures a continuing variety of new pest control products on offer solutions to growers and farmers. 

Agrichemicals that are more environmentally friendly, more effective and more targeted allow farmers to better kill target pests while protecting human health and allowing beneficial flora and fauna to prosper. This is reflected in the importance of the regulatory regime which approves these products for use. 

The report highlights that delays in this process mean that newer, softer and more environmentally friendly chemistries take longer to get to market. It says that a one-year delay means a loss of $7m to $70m to the GDP over 10 years. 

The crop protection industry in NZ is small. In fact, its contribution to the GDP is less than 1%, but it has far-reaching effects. Without these products, NZ’s growers would not be able to grow enough crops. The impact of this would affect more than just the economy.

The report can be found on the Agcarm website www.agcarm.co.nz

Mark Ross is chief executive of Agcarm, the industry association for makers and distributors of crop protection and animal health products.

More like this

New president of Agcarm

The industry association for animal health and crop protection companies has appointed a new president.

Country’s backbone performs

New Zealand's primary sector has added steel to the country’s economy in the wake of the Covid-19 pandemic, according to a recently released report.

Hort exports worth $6.2 billion in 2019

New Zealand horticulture exports reached a record-breaking $6.2 billion in the year ending June 2019 – an increase of $720 million on the previous year.

Taming Covid!

The horticulture industry has come out of the Covid-19 lockdown more resilient and with better people management skills.

Featured

 

Limited feed puts ewes at risk

Severe feed shortages in parts of the country mean many ewes are on a nutritional knife-edge heading into lambing and could be at risk of developing metabolic disorders.

Jack’s unique solution

Jason Jack was left with severe spinal injuries after a wakeboarding accident when he was 29, but that hasn’t stopped him getting out and about in difficult environments.

National

A ticking time bomb

Our dairy industry risks being exposed to a ‘ticking time bomb’ of unethical players unlawfully passing off New Zealand-made and…

Nervous wait for winter

The unknown of what winter will bring is very much on the mind of the Hawkes Bay Rural Support Trust…

Be careful, Potatoes NZ!

Moves by the NZ potato industry to have anti-dumping tariffs imposed on European imports could play into the hands of…

China keeps dairy prices high

Whole milk powder (WMP) prices are now sitting above pre-Covid-19 levels and New Zealand farmers can thank a resurging Chinese…

Machinery & Products

Hydrogen excavator a first

While most motive industries are focused on hybrid or EV power plants, JCB has developed the construction industry’s first hydrogen-powered…

Jack’s unique solution

Jason Jack was left with severe spinal injuries after a wakeboarding accident when he was 29, but that hasn’t stopped…

HP and digital tech combo

The latest New Holland T8 GENESIS is said to capitalise on the productive combinations of Stage V horsepower and digital…

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Spell check

Your old mutt was not surprised to see the NZ Dairy Industry Awards hastily remove the title of this year’s…

About time!

Your canine crusader has been a long-time critic of NZ governments – of all stripes – who, for the past…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter