Scientist letter points way to farmings future

Jon Morgan in the Dom Post asks  what can be done to lift NZ's economic performance? This article that looks at NZ's economic future should be read by all New Zealanders. When we almalgamated the agridata rural site with urban based interest.co, I did wonder whether agriculture would get lost in  population dominated urban issues.

What has evolved at times is  evidence of a lack of understanding of rural issues by urban counterparts and vice versa . But what is plainly obvious in these tough financial times, is NZ's reliance on our agri-food business for its economic well being. So if it is that importance to NZ, why haven't we a national based strategy for agriculture that focuses it's research and education direction, where we have the most competitive advantage?

Dr Kain was a well respected leader in agriculture and we are fortunate he recorded his vision for future debate before his untimely death.

Share with us your vision for NZ through its agricultural products. Do you agree with Dr Bill Kain that genetic engineering and a capital gains tax will play a role in moving NZ's economy ahead in the future?

A national strategy based on agriculture would be a start. Agriculture is the sensible choice to base such a vision on.In a world of shrinking resources we are a lucky country - we are the second-most rained-on country, we have a temperate oceanic climate that allows year-round open-air farming and we have productive soils. But what if the plan to make the most of these assets included genetic engineering and a capital gains tax?

These are just two of the ideas of Bill Kain, the agriculture scientist and science administrator who died earlier this year. Dr Kain's views are far from isolated. He had a lot of support among his peers at the top of the agri-food sector. In the letter, he laments the loss of focus over the past 30 years, from the days when government ministries actively worked on improving agricultural performance.

Despite this, NZ's agri- food industries have had their successes. He points to the scientific and marketing innovation that has given us: Low-cost, high-producing dairy, beef and sheep farming. Deer farming from feral captured animals enhanced with imported genetics. A world-leading timber industry based on a highly productive soft wood species. The kiwifruit, which went from being a non-commercial fruit to an internationally traded product. A boutique wine industry at the southern-most limits for grape- growing based on the selection of varieties matching climate and soils. The rapid growth of the apple industry based on novel varieties from a long term national breeding programme.

But their future is dependent on speeding up the delivery and application of technology faster than their competitors can. To achieve this, closer links between industry, research and development and tertiary education and training are essential, Dr Kain says. "It is important that NZ rebalances its economy as quickly as possible in a manner that favours the development of these industries and the tradable sector in general through the establishment of an economic framework with policies that are well aligned to productivity growth."

One of the technologies that could help is genetic engineering, and he sees social acceptance coming through "a more enlightened approach to communicating scientific advances to the public in terms of economic benefits and environmental issues and how these can be safely managed". He notes that genetically engineered plants, which are banned for commercial use in NZ, are in widespread use in Australia for cotton, canola and flower production.Genetic engineering advances within the last decade have the potential to change NZ from a producer of farm commodities to high-value food and health products.

The need for competitiveness in such areas as research and development, tertiary education and social services has failed, he says. He also agrees with other commentators that the political drive to spread resources equally across providers with competing interests has led to an allocation of resources often too thin to deliver the desired outcomes.He strays again into controversy when he mentions the biggest factor in declining productivity is a lack of investment. The absence of a tax on capital gains has led to speculative investment in farms, fuelled by bank lending policies which are asset rather than cashflow focused, he says.

He also comments on volatile exchange rates, the erosion of science capability and tertiary education's declining interest in science. It is a fascinating letter, bearing the frustrations, but also the hopes, of a scientist and top-level administrator who spent his life in the search for ways to lift agricultural productivity. I thank Dr Kain's family for allowing me to quote from it.