Part Two of a Four part series that looks at the direction of New Zealands research priorities for the future, given in a speech to the NZ Institute of Agricultural and Horticultural Science. Part One is here »
By Dr Willam Rolleston
New Zealand’s science ecosystem
New Zealand, as we know, has one of the lowest investments in science, research and development at around 1.2% of GDP; about half the OECD average of 2.3%.
Federated Farmers believes we need to aim for three percent of GDP and fast.
Funding of this magnitude enables more expansive research, not just retaining our top scientists, but attracting the world’s best here. This creates a research cluster that attracts not just start ups, but established companies being where the innovation and resources are.
But just spending more on R&D would be wasted if we don’t get the implementation right. The Federation welcomes the recent change in direction towards a more collaborative approach to science.
The merging of MoRST and FoRST into the Ministry of Science and Innovation, the Centres of Research Excellence, Research Platforms, the Crown Research Institute reforms and the Primary Growth Partnership are all positive moves to create a science and innovation ecosystem.
This enables more strategic deployment and coordination of our scant research resources.
However there is still a space for competitive science funding to stimulate new ideas. The Science and Innovation Boards, on which I sit, provide that role in the research facing and business facing spaces.
I am pleased to say that business is at least beginning to embrace the concept of R&D with bids becoming more competitive.
For agriculture, the PGP is helping to engage business and science with a focus on commercial outcomes. Creating the right science ecosystem is not about lurching from one extreme to another, as Sir Paul rightly points out. It is about balancing the science portfolio.
Balance between discovery and applied science, balance between industry sectors and balance between economic, social, cultural and environmental outcomes.
It is also about creating an ecosystem where excellence is rewarded.
Finally, it is about deciding priorities which provide the strategic direction.
Priorities which inform us of the areas we should ensure are strong and which areas we should not focus on. I think that weapons research and nuclear power generation are not considered areas of strategic opportunity for New Zealand for obvious reasons. Cleantech is also an area in which we would find it hard to compete, considering the cleantech budgets of industrial powers like China.
But that doesn’t mean that when excellence and opportunity present themselves we should ignore it. Take Lanzatech for example; a New Zealand grown company using biotechnology to process waste from steel plants to create fuel.
Our primary industries earn about $31 billion out of the $43 billion in physical exports we know about, roughly about 71%. Our number one priority is to protect and increase those earnings and we need science to do both. If we are to take advantage of our opportunities, while mitigating our threats, then as farmers we would see like to see three areas of focus for research spending.
They are:
- Increasing our productivity;
- Increasing the value of our products; and
- Reducing our environmental footprint.
I have been asked to present to you farmer’s priorities for research spending. A twenty minute speech would not provide the detail and direction I think you seek but there are a number of sources of good information. In particular the Red Meat Strategy, the Dairy Industry Strategy, the Aquaculture Strategy and the Horticulture Industry Strategy.
Both AgResearch and Plant and Food have consulted with primary producers and their statements of corporate intent provide useful high level detail on research areas of priority.
Then we as farmers stand inside the farm gate we have two main concerns; can we run a profitable business and do we have the freedom to operate? Farmers are essentially price takers so costs anywhere in the value chain tend to be reflected in farm profitability.
Productivity inside and beyond the farm gate is critical.
A recently released NZIER study shows that our agricultural labour productivity is 61% higher than that in Australia. Yet the gap, the NZIER notes, is closing.
Farming is a complex and at times, unforgiving business and one of the many ‘arts’ of being a top farmer is to manage multiple farm inputs and livestock.
We must also take account of the unpredictability of weather and commodity markets.
The role of science is to convert farming’s art into rational decisions, allowing us to intelligently use resources.
We are only scratching the surface on-farm when it comes to the adoption and use of technology to aid decision making.
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Dr William Rolleston is a South Canterbury farmer and founding shareholder and director of South Pacific Sera. The current Federated Farmers South Canterbury provincial president and current Vice President of the national organisation. Dr Rolleston also chairs the Ministry of Science and Innovation's Innovation Board. This is Part Two of a four part series. Part One is here »
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