The NZIER Report on dairying and fresh water

Written By: - Date published: 8:47 am, September 20th, 2019 - 19 comments
Categories: farming, farming, water - Tags: , ,

Press Release from NZIER

Getting the balance right : The effect of water quality proposals on the New Zealand economy

16 September 2019

NZIER report to the New Zealand Fish and Game Council, Forest and Bird and Greenpeace.

Many of New Zealand’s waterways are now degraded.

A major and growing source of this degradation is the leaching of nutrients – nitrogen and phosphorous – from intensive dairy farming.

The government is proposing regulations…

The government has released a discussion document that details proposals to address this situation. Some of these proposals will place restrictions on farming activity in the form of limits on the amount of nutrients that can leach into the soil.

…which will likely spur innovation

Experience here and overseas with environmental regulation is that often unimagined innovations result, reducing the costs and increasing the effectiveness of those regulations. But innovation is bigger than big inventions or new technology. At the farm level, it includes adopting advanced management practices already used on the best farms.

The dairy sector is one part of a growing economy

While output from the dairy sector has been increasing, looking below the top-line figures of gross export receipts reveals a nuanced picture of its direct contribution to the New Zealand economy.

Between 1991 and 2017, the average combined direct contribution of dairy farming and dairy manufacturing was 3.09% of GDP. It is now about the same size as the tourism sector.

Since 1945, the total number of people employed in the agriculture sector has stayed largely stable.

In 2013, farmers and farm managers represented 2.92% of the national workforce, while farm, forestry and garden workers represented a further 2.26%.

Likely impact on national GDP

Due to the relatively small size of the dairy industry, the impacts of the government reforms are unlikely to be major at the national level, and not felt for many years due to the long lead in times proposed.

A reduction in GDP from intensive dairy would, however, have uneven local effects, given the regional distribution of the sector.

The dairy sector has, however, been changing

There was been a marked shift in farming away from beef and sheep towards dairy, especially in the South Island. Irrigation and fertiliser use have also increased dramatically.

The combined result has been a steady increase in the amount of nitrogen from dairy farms leaching into waterways.

Getting the balance right

Tighter regulation of water quality will have costs as well as benefits.

New Zealand does not face stark choices between having a dairy sector versus having clean waterways. Experience shows that, by focusing on profits, not production, farms can increase their economic returns and reduce their impact on the environment.

New Zealand’s best farms are already doing this.
There are, however, some places where even the most efficient dairy farming will have an adverse environmental impact.

The government should be providing more information

As it works through the reform process, the government should be focusing on further study of the following areas:

  • The behavioural responses of farmers to regulation.
  • How well good management practice is being taken up.
  • The barriers to changing behaviour.
  • The level of compliance to the new policies and regulations.
  • The performance of Councils in implementing, monitoring and enforcing the new policies and regulations.
  • The current distribution of farm profitability.
  • The relationship between soil types and nutrient leaching.

The results of this work should be made readily available to farmers, councils and the general public.

_______________________________________________________________________________

Press Release from Greenpeace

by Gen Toop 17 September 2019

New Zealand’s new fresh water regulation rules will have no major impacts on the national economy, according to an independent report just out.

The report by independent economic consultancy New Zealand Institute of Economic Research shows that dairying represents about 3% of national GDP and is behind tourism in export earnings.

The study, commissioned by Forest & Bird, Greenpeace, and Fish and Game, found the impact on national GDP of the proposed reforms were unlikely to be major, stating that: “Due to the relatively small size of the dairy industry, the impacts of the government reforms are unlikely to be major at the national level, and not felt for many years due to the long lead in times proposed.”

It found that in 2013, farmers and farm managers represented 2.92% of the national workforce, while farm, forestry and garden workers represented a further 2.26%.

The NZIER report states that “Experience shows that by focusing on profits, not production, farms can increase their economic returns and reduce their impact on the environment.”

Forest & Bird’s Fresh Water Advocate, Annabeth Cohen says “The contribution of dairying to GDP does not account for the destruction to rivers, lakes and wetlands and the billions of dollars spent cleaning up the mess from intensive dairying and poor farm practices.

“The real backbone of the economy is the environment. Most importantly a clean environment provides the essentials – the air we breathe, the water we drink and mahinga kai.

“Our precious freshwater fish, birds, and invertebrates are priceless,” Ms Cohen says.

Greenpeace campaigner Gen Toop said the report comes at a crucial moment for New Zealand’s rivers, as the Government is currently consulting on new freshwater rules.

“This report should put an end to the exaggerated claims that new water rules will end pastoral farming or have a major impact on New Zealand’s economy.”

“Far from ‘throwing farmers under the tractor’ the report reveals that new rules to protect our rivers will likely spur greater innovation in farming to reduce its environmental impact,” Ms Toop says.

It adds that the ‘New Zealand farming community is proud of its tradition of innovation, and there is no reason to suppose it will not rise to the challenges of the new environmental rules.’

The study was commissioned to show the relative size of the farming sector within the New Zealand economy and to gauge the potential impacts of the freshwater reforms announced earlier this month.

A copy of the report can be found here

_______________________________________________________________________________

Front page image of Geraldine organic dairy Clearwater Farm

19 comments on “The NZIER Report on dairying and fresh water ”

  1. marty mars 1

    imo Be good to think some farmers would step up, stop moaning and thinking just of themselves, and rejoin the solution side of the equation instead of the problem side.

    Good, caring farmers can lead their less enlightened associates to the way forward. I really hope the heel dragging farmers make an effort and give it a go – the public tolerance for that not happening is fast declining. They need to get on the truck before they get a hurry up.

  2. Kevin 2

    Is anyone aware of any study into the long term effects of pouring of millions of tonnes of Superphospate on to New Zealand pasture for the past 80-odd years?

    Nutrient leaching is almost considered a relatively new problem but this has been going on for a very long time.

    • weka 2.1

      I don't know what research has been done but this is the fundamental difference between conventional farming and organic/regenerative farming. The former sees fertility as chemistry, the latter as biological (i.e. soil microorganisms). This is why conventional farming can never be sustainable and why regenag inherently takes ecology into account.

      Plus, Peak Phosphorus

    • Robert Guyton 2.2

      Plus cadmium.

    • aom 2.3

      Don't know what the long-term effects on NZ are but it sure as hell didn't do much for Nauru.

  3. Ad 3

    If only the government had a bill that could shunt Fonterra from requiring perpetual purchase of bulk milk forever and kill the disease of mass production……

  4. Gosman 4

    Wow. Who would have thought focusing on profits was actually beneficial to the environment…

    • Stuart Munro. 4.1

      It's a thing you see in a lot of businesses – someone mistaking a production heuristic for the goal. This is the kind of thing Deming and Imai were trying to get across to manufacturers back in the day.

    • weka 4.2

      Not really a surprise, sustainability people have been saying for a long time that it's possible to run a farm business economically without wrecking the land. It's not a focus on profits, it's a focus on what is sustainable (ecologically and economically).

    • lprent 4.3

      Well Gosman – How is this is a revelation for you? I guess you came directly from the ark slashing and burning without ever bothering to look at basic economics.

      /sarc

      Profit has never been a particular issue in green issues for anything except to idiot right-wing nut jobs looking for ideas simple enough for them to wrap their teeny weeny minds around. So they invent dumb myths about others out of the bigotry without bothering to listen to what they actually say.

      Looks like that might define you pretty well.

      People who are actually interested in doing more than doing short-term massaging of their wimpy egos have always been aware that the economic issue with conservation has always been about tragedy of the commons issue – and perverse short-term economic intensives it offers to barbarians.

      In other words almost all crony capitalists who’d have problems finding their arse with their hands if it was more than 3 years in the future.

      • phillip ure 4.3.1

        yep..!

        to the 'tragedy of the commons' take…

        • lprent 4.3.1.1

          Looking at the subtext… I'm an equal opportunity sarcasm generator – you are not the only one… eh!!!! !!! !! !

          😈

          • phillip ure 4.3.1.1.1

            um..!..no..

            i think that as the climate-crisis unfolds we will become more and more aware that capitalists extracting aren't going to stop..

            and that we need to take back control of 'the commons'..

            and the case will be able to be made that we are only taking back what was stolen from us in the first place..

            (not a drop of 'sarcasm' to be seen..)

    • mac1 4.4

      It's really a question not of profit per se because in its very nature profit is a positive, but for whom, over what time frame and how much is sustainable and fair as opposed to exploitation of land, people or resources.

      President Macron spoke of the rich elite, be they individuals or nations. The profit should not be just for them. What system woud entrust our societies very wellbeing to self-absorbed, sociopathic narcissists and followers of Mammon?

      https://thestandard.org.nz/macron-speech-the-end-of-western-hegemony/

      http://worldif.economist.com/article/13518/giving-money-everyone

      There is also just a bit more than a little on giving to the poor in the Old and New Testaments which might reinforce these arguments.

  5. soddenleaf 5

    Now why would a farmer do that, production up profits down, how can you look your neighbor in the eye and say your cattle count is lower, your sht is not heading for town and loadsofmoney.

  6. cleangreen 6

    Farming is only one side of the pollution of our waterways folks.

    Try this global study of ‘road runoff’ pollution studies of three countries in three regions Japan, France and the USA.

    I claim this ‘road runoff’ pollution as the ‘Elephant in the room’ so far not considered, folks

    https://pubs.acs.org/doi/abs/10.1021/es400871j

    Impacts of surface runoff to aquatic species are an ongoing area of concern. Tire and road wear particles (TRWP) are a constituent of runoff, and determining accurate TRWP concentrations in sediment is necessary in order to evaluate the likelihood that these particles present a risk to the aquatic environment.

    Article in Environmental Science & Technology 47(15) · July 2013 
    DOI: 10.1021/es400871j · Source: PubMed
    Cite this publication

    Comparison of Tire and Road Wear Particle Concentrations in Sediment for Watersheds in France, Japan, and the United States by Quantitative Pyrolysis GC/MS Analysis

    Abstract
    Impacts of surface runoff to aquatic species are an ongoing area of concern. Tire and road wear particles (TRWP) are a constituent of runoff, and determining accurate TRWP concentrations in sediment is necessary in order to evaluate the likelihood that these particles present a risk to the aquatic environment. TRWP consist of approximately equal mass fractions of tire tread rubber and road surface mineral encrustations. Sampling was completed in the Seine (France), Chesapeake (U.S.), and Yodo-Lake Biwa (Japan) watersheds to quantify TRWP in the surficial sediment of watersheds characterized by a wide diversity of population densities and land uses. By using a novel quantitative pyrolysis-GC/MS analysis for rubber polymer, we detected TRWP in 97% of the 149 sediment samples collected. The mean concentrations of TRWP were 4500 (n = 49; range = 62-11 600), 910 (n = 50; range = 50-4400) and 770 (n = 50; range = 26-4600) μg/g d.w. for the characterized portions of the Seine, Chesapeake and Yodo-Lake Biwa watersheds, respectively. A subset of samples from the watersheds (n = 45) was pooled to evaluate TRWP metals, grain size and organic carbon correlations by principal components analysis (PCA), which indicated that four components explain 90% of the variance. The PCA components appeared to correspond to (1) metal alloys possibly from brake wear (primarily Cu, Pb, Zn), (2) crustal minerals (primarily Al, V, Fe), (3) metals mediated by microbial immobilization (primarily Co, Mn, Fe with TOC), and (4) TRWP and other particulate deposition (primarily TRWP with grain size and TOC). This study should provide useful information for assessing potential aquatic effects related to tire service life.

  7. Jilly Bee 7

    I caught up with this article in the Waikato Times a little while ago and was wondering how and where to respond to it. I live in the Waikato area and of course, it is pretty much the center of the dairy industry in N Z, though I notice the rapid increase in crop growing particularly on the Matamata plains through to Te Aroha and surrounding areas – the townies always have a wee winge during (the onion) harvesting season with the dust clouds circling overhead! My immediate reaction to this piece was exactly as the writer had opined – get on and do it and stop grizzling – here's looking at you Fed Farmers et al.

    https://www.stuff.co.nz/business/farming/opinion/115919644/time-to-talk-about-what-we-can-do-not-cant-when-it-comes-to-environmentally-friendly-farming

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    Nicola Willis’ first move was ‘spilling the tea’ on what she called the ‘sobering’ state of the nation’s books, but she had better be able to back that up in the HYEFU. Photo: Lynn Grieveson / The KākāTL;DR: Here’s my pick of top 10 news links elsewhere at 10 am ...
    The KakaBy Bernard Hickey
    5 days ago
  • PT use up but fare increases coming
    Yesterday Auckland Transport were celebrating, as the most recent Sunday was the busiest Sunday they’ve ever had. That’s a great outcome and I’m sure the ...
    5 days ago
  • The very opposite of social investment
    Nicola Willis (in blue) at the signing of the coalition agreement, before being sworn in as both Finance Minister and Social Investment Minister. National’s plan to unwind anti-smoking measures will benefit her in the first role, but how does it stack up from a social investment viewpoint? Photo: Lynn Grieveson ...
    The KakaBy Bernard Hickey
    5 days ago
  • Giving Tuesday
    For the first time "in history" we decided to jump on the "Giving Tuesday" bandwagon in order to make you aware of the options you have to contribute to our work! Projects supported by Skeptical Science Inc. Skeptical Science Skeptical Science is an all-volunteer organization but ...
    5 days ago
  • Let's open the books with Nicotine Willis
    Let’s say it’s 1984,and there's a dreary little nation at the bottom of the Pacific whose name rhymes with New Zealand,and they've just had an election.Jesus, Mary, and Joseph, will you look at the state of these books we’ve opened,cries the incoming government, will you look at all this mountain ...
    More Than A FeildingBy David Slack
    6 days ago
  • Climate Change: Stopping oil
    National is promising to bring back offshore oil and gas drilling. Naturally, the Greens have organised a petition campaign to try and stop them. You should sign it - every little bit helps, and as the struggle over mining conservation land showed, even National can be deterred if enough people ...
    No Right TurnBy Idiot/Savant
    6 days ago
  • Don’t accept Human Rights Commission reading of data on Treaty partnership – read the survey fin...
    Wellington is braced for a “massive impact’ from the new government’s cutting public service jobs, The Post somewhat grimly reported today. Expectations of an economic and social jolt are based on the National-Act coalition agreement to cut public service numbers in each government agency in a cost-trimming exercise  “informed by” head ...
    Point of OrderBy Bob Edlin
    6 days ago
  • The stupidest of stupid reasons
    One of the threats in the National - ACT - NZ First coalition agreements was to extend the term of Parliament to four years, reducing our opportunities to throw a bad government out. The justification? Apparently, the government thinks "elections are expensive". This is the stupidest of stupid reasons for ...
    No Right TurnBy Idiot/Savant
    6 days ago
  • A website bereft of buzz
    Buzz from the Beehive The new government was being  sworn in, at time of writing , and when Point of Order checked the Beehive website for the latest ministerial statements and re-visit some of the old ones we drew a blank. We found ….  Nowt. Nothing. Zilch. Not a ...
    Point of OrderBy Bob Edlin
    6 days ago
  • MICHAEL BASSETT: A new Ministry – at last
    Michael Bassett writes – Like most people, I was getting heartily sick of all the time being wasted over the coalition negotiations. During the first three weeks Winston grinned like a Cheshire cat, certain he’d be needed; Chris Luxon wasted time in lifting the phone to Winston ...
    Point of OrderBy poonzteam5443
    6 days ago
  • Luxon's Breakfast.
    The Prime Minister elect had his silver fern badge on. He wore it to remind viewers he was supporting New Zealand, that was his team. Despite the fact it made him look like a concierge, or a welcomer in a Koru lounge. Anna Burns-Francis, the Breakfast presenter, asked if he ...
    Nick’s KōreroBy Nick Rockel
    6 days ago
  • LINDSAY MITCHELL:  Oranga Tamariki faces major upheaval under coalition agreement
     Lindsay Mitchell writes – A hugely significant gain for ACT is somewhat camouflaged by legislative jargon. Under the heading ‘Oranga Tamariki’ ACT’s coalition agreement contains the following item:   Remove Section 7AA from the Oranga Tamariki Act 1989 According to Oranga Tamariki:     “Section ...
    Point of OrderBy poonzteam5443
    6 days ago
  • BRIAN EASTON:  Peters as Minister
    A previous column looked at Winston Peters biographically. This one takes a closer look at his record as a minister, especially his policy record. Brian Easton writes – 1990-1991: Minister of Māori Affairs. Few remember Ka Awatea as a major document on the future of Māori policy; there is ...
    Point of OrderBy poonzteam5443
    6 days ago
  • Cathrine Dyer's guide to watching COP 28 from the bottom of a warming planet
    Is COP28 largely smoke and mirrors and a plan so cunning, you could pin a tail on it and call it a weasel? Photo: Getty ImagesTL;DR: COP28 kicks off on November 30 and up for negotiation are issues like the role of fossil fuels in the energy transition, contributions to ...
    The KakaBy Bernard Hickey
    6 days ago
  • Top 10 news links at 10 am for Monday, Nov 27
    PM Elect Christopher Luxon was challenged this morning on whether he would sack Adrian Orr and Andrew Coster.TL;DR: Here’s my pick of top 10 news links elsewhere at 10 am on Monday November 27, including:Signs councils are putting planning and capital spending on hold, given a lack of clear guidance ...
    The KakaBy Bernard Hickey
    6 days ago
  • Gordon Campbell on the new government’s policies of yesteryear
    This column expands on a Werewolf column published by Scoop on Friday Routinely, Winston Peters is described as the kingmaker who gets to decide when the centre right or the centre-left has a turn at running this country. He also plays a less heralded but equally important role as the ...
    6 days ago
  • The New Government’s Agreements
    Last Friday, almost six weeks after election day, National finally came to an agreement with ACT and NZ First to form a government. They also released the agreements between each party and looking through them, here are the things I thought were the most interesting (and often concerning) from the. ...
    6 days ago
  • How many smokers will die to fund the tax cuts?
    Maori and Pasifika smoking rates are already over twice the ‘all adult’ rate. Now the revenue that generates will be used to fund National’s tax cuts. Photo: Getty ImagesTL;DR: The devil is always in the detail and it emerged over the weekend from the guts of the policy agreements National ...
    The KakaBy Bernard Hickey
    6 days ago
  • How the culture will change in the Beehive
    Perhaps the biggest change that will come to the Beehive as the new government settles in will be a fundamental culture change. The era of endless consultation will be over. This looks like a government that knows what it wants to do, and that means it knows what outcomes ...
    PolitikBy Richard Harman
    6 days ago
  • No More Winnie Blues.
    So what do you think of the coalition’s decision to cancel Smokefree measures intended to stop young people, including an over representation of Māori, from taking up smoking? Enabling them to use the tax revenue to give other people a tax cut?David Cormack summed it up well:It seems not only ...
    Nick’s KōreroBy Nick Rockel
    7 days ago
  • 2023 SkS Weekly Climate Change & Global Warming News Roundup #47
    A chronological listing of news and opinion articles posted on the Skeptical Science  Facebook Page during the past week: Sun, Nov 19, 2023 thru Sat, Nov 25, 2023.  Story of the Week World stands on frontline of disaster at Cop28, says UN climate chief  Exclusive: Simon Stiell says leaders must ‘stop ...
    1 week ago
  • Some of it is mad, some of it is bad and some of it is clearly the work of people who are dangerous ...
    On announcement morning my mate texted:Typical of this cut-price, fake-deal government to announce itself on Black Friday.What a deal. We lose Kim Hill, we gain an empty, jargonising prime minister, a belligerent conspiracist, and a heartless Ayn Rand fanboy. One door closes, another gets slammed repeatedly in your face.It seems pretty ...
    More Than A FeildingBy David Slack
    1 week ago
  • “Revolution” is the threat as the Māori Party smarts at coalition government’s Treaty directi...
    Buzz from the Beehive Having found no fresh announcements on the government’s official website, Point of Order turned today to Scoop’s Latest Parliament Headlines  for its buzz. This provided us with evidence that the Māori Party has been soured by the the coalition agreement announced yesterday by the new PM. “Soured” ...
    Point of OrderBy Bob Edlin
    1 week ago
  • The Good, the Bad, and the even Worse.
    Yesterday the trio that will lead our country unveiled their vision for New Zealand.Seymour looking surprisingly statesmanlike, refusing to rise to barbs about his previous comments on Winston Peters. Almost as if they had just been slapstick for the crowd.Winston was mostly focussed on settling scores with the media, making ...
    Nick’s KōreroBy Nick Rockel
    1 week ago
  • When it Comes to Palestine – Free Speech is Under Threat
    Hi,Thanks for getting amongst Mister Organ on digital — thanks to you, we hit the #1 doc spot on iTunes this week. This response goes a long way to helping us break even.I feel good about that. Other things — not so much.New Zealand finally has a new government, and ...
    David FarrierBy David Farrier
    1 week ago
  • Thank you Captain Luxon. Was that a landing, or were we shot down?
    Hello! Here comes the Saturday edition of More Than A Feilding, catching you up on the past week’s editions.Also in More Than A FeildingFriday The unboxing And so this is Friday and what have we gone and done to ourselves?In the same way that a Christmas present can look lovely under the ...
    More Than A FeildingBy David Slack
    1 week ago
  • Cans of Worms.
    “And there’ll be no shortage of ‘events’ to test Luxon’s political skills. David Seymour wants a referendum on the Treaty. Winston wants a Royal Commission of Inquiry into Labour’s handling of the Covid crisis. Talk about cans of worms!”LAURIE AND LES were very fond of their local. It was nothing ...
    1 week ago
  • Disinformation campaigns are undermining democracy. Here’s how we can fight back
    This article is republished from The Conversation under a Creative Commons license. Read the original article. Misinformation is debated everywhere and has justifiably sparked concerns. It can polarise the public, reduce health-protective behaviours such as mask wearing and vaccination, and erode trust in science. Much of misinformation is spread not ...
    1 week ago
  • Peters as Minister
    A previous column looked at Winston Peters biographically. This one takes a closer look at his record as a minister, especially his policy record.1990-1991: Minister of Māori Affairs. Few remember Ka Awatea as a major document on the future of Māori policy; there is not even an entry in Wikipedia. ...
    PunditBy Brian Easton
    1 week ago

  • New Zealand welcomes European Parliament vote on the NZ-EU Free Trade Agreement
    A significant milestone in ratifying the NZ-EU Free Trade Agreement (FTA) was reached last night, with 524 of the 705 member European Parliament voting in favour to approve the agreement. “I’m delighted to hear of the successful vote to approve the NZ-EU FTA in the European Parliament overnight. This is ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Further humanitarian support for Gaza, the West Bank and Israel
    The Government is contributing a further $5 million to support the response to urgent humanitarian needs in Gaza, the West Bank and Israel, bringing New Zealand’s total contribution to the humanitarian response so far to $10 million. “New Zealand is deeply saddened by the loss of civilian life and the ...
    BeehiveBy beehive.govt.nz
    2 weeks ago

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