Part 1 of 3: Parallels between Canadian and Kiwi Agriculture
Kia ora (Maori for hello) from New Zealand! One of the many wonderful things about being a University Professor is the opportunity to periodically take a research sabbatical. In my current position at Thompson Rivers University, in Kamloops, I teach grassland ecology, range management and an agricultural sciences course that focuses on food systems. Therefore I wanted the goal of my research sabbatical to be developing a better understanding of food systems globally with a focus on beef production. That is how I ended up living in New Zealand for six months and working at Massey University in Palmerston North.
As a way of sharing some of the things I am learning, I have agreed to write a series of articles for Beef in BC. This introductory article will set the stage by providing a more general introduction to New Zealand agriculture and draw some general comparisons of agriculture production between New Zealand and Canada. In later articles I will move on to the specifics of beef production.
About New Zealand
New Zealand with a land base of 268 thousand km2 and a population of 4.4 million people is much smaller than Canada with our large land base of just over 9 million km2 and a population of 34 million people. However, the population density in New Zealand is higher at 16.1 people per km2 versus our 3.7 people per km2.
What is unique about New Zealand as a developed country is that it still remains an agrarian based economy with pastoral farming being the main land use. Over 52% of the land base is dedicated to livestock pasture, cropping or is fallow. New Zealand is highly dependent on trade with agriculture accounting for approximately 50% of the total merchandisable exports; approximately 90% of the pastoral products produced in New Zealand are exported.
The mild and temperate climate allow for almost year round grass growth making this a very low-cost way to raise pasture-fed meat and produce pasture-based milk. At a recent conference I attended one politician made the statement that the basis of New Zealand’s economy is grass growth, unfortunately this is not a statement I have heard echoed in BC.
General Agriculture
In the pastoral sector the main players are dairy, sheep and beef with the 2010 estimates showing dairy numbers close to 6 million, sheep near 32.5 million and beef at 3.9 million head. However, there have been changes occurring in these industries with sheep production declining from its peak of over 60 million head back in 1980 and dairy numbers continuing to increase. Beef production has also been decreasing, mainly due to a decline in prices and it seems many beef farmers have shifted into dairy production. Without a dairy quota system, it is easy for pastoral beef and sheep farmers to switch to dairy production as all dairy herds are also grass fed. Dairy is now the leading agricultural sector accounting for 22% of total exports but meat remains the second main export at 12.4%. Much like at home primary producers are often the price takers and struggle economically while money is made in the value added components of the food industry.
What is interesting to me is some of the striking similarities with general agricultural trends in Canada. Both countries are experiencing decreases in the total number of farms but overall farm size is increasing. The trend is toward intensive production, though it seems to me that there are still many small farms across the countryside in New Zealand. The average age of farmers continues to rise in both countries making people question were the next generation of agricultural producers is going to come from. Even though a large part of New Zealand’s land base is in food production, over 87% of the population lives in urban areas, which is higher than the 78% recorded for Canada. The gap between urban and rural residents is a challenge for both countries and exacerbates this disconnect between the people and where their food comes from.
The Beef Industry
When looking specifically at the beef production sector there are some major differences to Canada. In New Zealand essentially all the beef production is grass based and this is achievable due to the year round grass growth. Some forage is preserved as silage and hay but in general very minimal feed supplements, other than forage, are used. The majority of beef farms also have sheep or deer production giving some diversity to the income. The dairy sector highly influences beef production with cull dairy bulls making up a large percent of the processing or manufacturing beef production and it is estimated roughly 65% of New Zealand’s beef production is of dairy origin.
However, much like Canada, the New Zealand beef industry is small on the global scale but it is one of the top net exporters of beef. The main market for New Zealand beef is also the United States but they are exporting a frozen, manufactured (ground) beef product versus the prime cuts that Canada is exporting. With domestic beef consumption being a fairly small part of the New Zealand market, the focus for beef industry is to continue to expand export markets into the future.
Travelling to another country is a great way to learn more about your own country. In my search to better understand the different agriculture industries in New Zealand I find myself comparing them to our systems in Canada. In general, I have been surprised at how similar the trends in agricultural are between both countries. In terms of beef production though, the systems used and the pasture management in New Zealand are quite different; this will be the focus of my next article. Ka kite ano (Maori for until we meet again).
References
Smeaton, D.C. ed. 2003. Profitable Beef Production: A guide to beef production in New Zealand. New Zealand Beef Council. 220 pages.
Statistics Canada. 2007. 2006 census of agriculture. http://www.statcan.gc.ca/pub/95-629-x/95-629-x2007000-eng.htm
Statistics New Zealand. 2003. Agricultural statistics 2002. http://www.stats.govt.nz/browse_for_stats/industry_sectors/agriculture-horticulture-forestry/agriculture-stats-2002.aspx
Statistics New Zealand. 2010. Agricultural production statistics June 2010 (provisional). http://www.stats.govt.nz/browse_for_stats/industry_sectors/agriculture-horticulture-forestry/AgriculturalProduction_HOTPJun10prov.aspx
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