Pub Date : 2022-12-28DOI: 10.1080/00779954.2022.2158489
L. Klerkx, J. Turner, Helen Percy
ABSTRACT In this paper, we discuss how agrifood systems transformation is addressed by the Aotearoa New Zealand agrifood innovation system, and to what extent it can be mission-oriented in view of emerging Agriculture 4.0 technologies. There are several initiatives that work on different transition pathways towards agrifood systems transformation, and hence there seems to be an emerging NZ mission-oriented AIS. New networks of actors are formed, also consisting of non-traditional players (e.g. AgTech) and incorporating Māori visions of transformed agrifood systems. Nonetheless, initiatives are sometimes still concerned with optimisation, whereas engaging with phase-out or exnovation of unsustainable food systems would also be needed. Hence, it seems that challenges such as fragmentation, lock-in of current systems and legacy policies, and limited attention to exnovation, are still standing in the way of enacting a truly mission-oriented NZ AIS. Enhancing coordination amongst these initiatives and clarifying how they envision and enact agrifood system transformation missions seem key to move forward.
{"title":"Navigating the rapids of agrifood systems transformation: reflections on Aotearoa New Zealand’s emerging mission-oriented agrifood innovation system","authors":"L. Klerkx, J. Turner, Helen Percy","doi":"10.1080/00779954.2022.2158489","DOIUrl":"https://doi.org/10.1080/00779954.2022.2158489","url":null,"abstract":"ABSTRACT In this paper, we discuss how agrifood systems transformation is addressed by the Aotearoa New Zealand agrifood innovation system, and to what extent it can be mission-oriented in view of emerging Agriculture 4.0 technologies. There are several initiatives that work on different transition pathways towards agrifood systems transformation, and hence there seems to be an emerging NZ mission-oriented AIS. New networks of actors are formed, also consisting of non-traditional players (e.g. AgTech) and incorporating Māori visions of transformed agrifood systems. Nonetheless, initiatives are sometimes still concerned with optimisation, whereas engaging with phase-out or exnovation of unsustainable food systems would also be needed. Hence, it seems that challenges such as fragmentation, lock-in of current systems and legacy policies, and limited attention to exnovation, are still standing in the way of enacting a truly mission-oriented NZ AIS. Enhancing coordination amongst these initiatives and clarifying how they envision and enact agrifood system transformation missions seem key to move forward.","PeriodicalId":38921,"journal":{"name":"New Zealand Economic Papers","volume":"57 1","pages":"149 - 163"},"PeriodicalIF":0.0,"publicationDate":"2022-12-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41915424","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-24DOI: 10.1080/00779954.2022.2156383
Robert F. Maris, Zack Dorner
Operating profit margin (OPM) is a well-supported and easily interpretable parameter from the DuPont framework for understanding firm performance. It has not been widely applied in the dairy industry, despite its role in driving profitability, resilience and debt serviceability in low subsidy export-oriented farming systems. We analyse the drivers of OPM in depth for the first time on New Zealand dairy farms. We utilise a 10-year panel dataset developed by applying simulation methods to sample and population data, giving a representative picture of the industry. We group farms into quartiles of their long-run OPM performance and perform non-parametric Games-Howell testing to investigate differences between the groups. We then estimate individual and time fixed effects panel regression models for the entire sample and each quartile separately to examine the factors driving changes in OPM over time. We add to the limited literature on the factors driving changes in OPM over time.
{"title":"An analysis of operating profit margin: a valuable tool for New Zealand dairy farmers","authors":"Robert F. Maris, Zack Dorner","doi":"10.1080/00779954.2022.2156383","DOIUrl":"https://doi.org/10.1080/00779954.2022.2156383","url":null,"abstract":"Operating profit margin (OPM) is a well-supported and easily interpretable parameter from the DuPont framework for understanding firm performance. It has not been widely applied in the dairy industry, despite its role in driving profitability, resilience and debt serviceability in low subsidy export-oriented farming systems. We analyse the drivers of OPM in depth for the first time on New Zealand dairy farms. We utilise a 10-year panel dataset developed by applying simulation methods to sample and population data, giving a representative picture of the industry. We group farms into quartiles of their long-run OPM performance and perform non-parametric Games-Howell testing to investigate differences between the groups. We then estimate individual and time fixed effects panel regression models for the entire sample and each quartile separately to examine the factors driving changes in OPM over time. We add to the limited literature on the factors driving changes in OPM over time.","PeriodicalId":38921,"journal":{"name":"New Zealand Economic Papers","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-12-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41562404","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-20DOI: 10.1080/00779954.2022.2156382
R. Buckle, J. Creedy
{"title":"The performance based research fund in New Zealand: taking stock and looking forward","authors":"R. Buckle, J. Creedy","doi":"10.1080/00779954.2022.2156382","DOIUrl":"https://doi.org/10.1080/00779954.2022.2156382","url":null,"abstract":"","PeriodicalId":38921,"journal":{"name":"New Zealand Economic Papers","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-12-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46342244","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-16DOI: 10.1080/00779954.2022.2154253
W. Kaye-Blake
ABSTRACT Community resilience can be quantified using available data to inform policy decisions. Identifying vulnerable or deprived communities in New Zealand is straightforward because social, cultural and economic indicators are correlated. However, that is just the first step. Resilience is also a matter of perspective, which means engaging with people in communities affected by policy decisions. When resilience is viewed as multi-dimensional, success in the formal and informal economies is linked to social resilience. However, social resilience cannot flourish in the absence of other resources.
{"title":"Resilience is a meaningful, measurable trait of communities","authors":"W. Kaye-Blake","doi":"10.1080/00779954.2022.2154253","DOIUrl":"https://doi.org/10.1080/00779954.2022.2154253","url":null,"abstract":"ABSTRACT Community resilience can be quantified using available data to inform policy decisions. Identifying vulnerable or deprived communities in New Zealand is straightforward because social, cultural and economic indicators are correlated. However, that is just the first step. Resilience is also a matter of perspective, which means engaging with people in communities affected by policy decisions. When resilience is viewed as multi-dimensional, success in the formal and informal economies is linked to social resilience. However, social resilience cannot flourish in the absence of other resources.","PeriodicalId":38921,"journal":{"name":"New Zealand Economic Papers","volume":"57 1","pages":"133 - 138"},"PeriodicalIF":0.0,"publicationDate":"2022-12-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44544259","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-16DOI: 10.1080/00779954.2022.2154252
Zack Dorner
ABSTRACT In this paper, I discuss the role that behavioural and experimental economics can play in improving agricultural policymaking. I do so by considering the development of an agri-emissions pricing policy in NZ. International literature shows that profit, as well as a range of other factors such as social norms and identity, drive farmer behaviour. This is particularly true for adoption of sustainable technologies and practices. A better understanding of farmer behaviour provides potential for: (1) an increased understanding of the uncertainty around policy modelling; (2) an increase in the accuracy of policy modelling, particularly when emission prices are low; (3) potential for new policy tools. Experimental economics provides a powerful methodology to build behavioural understanding and test policy tools. I argue that a behavioural economics perspective can contribute to agricultural policy, but add a note of caution that the gains to modelling accuracy and improved policy design are not guaranteed.
{"title":"How behavioural and experimental economics can contribute to agricultural policy with an application to agri-emissions pricing","authors":"Zack Dorner","doi":"10.1080/00779954.2022.2154252","DOIUrl":"https://doi.org/10.1080/00779954.2022.2154252","url":null,"abstract":"ABSTRACT In this paper, I discuss the role that behavioural and experimental economics can play in improving agricultural policymaking. I do so by considering the development of an agri-emissions pricing policy in NZ. International literature shows that profit, as well as a range of other factors such as social norms and identity, drive farmer behaviour. This is particularly true for adoption of sustainable technologies and practices. A better understanding of farmer behaviour provides potential for: (1) an increased understanding of the uncertainty around policy modelling; (2) an increase in the accuracy of policy modelling, particularly when emission prices are low; (3) potential for new policy tools. Experimental economics provides a powerful methodology to build behavioural understanding and test policy tools. I argue that a behavioural economics perspective can contribute to agricultural policy, but add a note of caution that the gains to modelling accuracy and improved policy design are not guaranteed.","PeriodicalId":38921,"journal":{"name":"New Zealand Economic Papers","volume":"57 1","pages":"191 - 197"},"PeriodicalIF":0.0,"publicationDate":"2022-12-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44046012","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-06DOI: 10.1080/00779954.2022.2150277
V. Kahui
ABSTRACT New Zealand’s new freshwater legislation prioritises the health of a water body above the needs of humans, thereby effectively recognising the intrinsic value of water. The prioritisation is nothing short of a paradigm shift. In this essay, I discuss the dichotomy of intrinsic and instrumental values in environmental management, and a change in mind set from the unidirectional exploitation of the environment to one of mitigation and restoration by all water users. Waterways groups, by actions of environmental advocacy, could play an increasingly important role in advising councils in freshwater policy, i.e. the benefits of a formalised relationship between councils and waterways groups include Kaitiakitanga and Stewardship by communities and recognition that healthy environments need active restoration management. Requiring waters users to mitigate their impacts on the freshwater ecosystem incentivises investment in natural capital if flexibility is provided for water users to mitigate at least cost.
{"title":"Giving waterways groups a role in regional freshwater policy","authors":"V. Kahui","doi":"10.1080/00779954.2022.2150277","DOIUrl":"https://doi.org/10.1080/00779954.2022.2150277","url":null,"abstract":"ABSTRACT New Zealand’s new freshwater legislation prioritises the health of a water body above the needs of humans, thereby effectively recognising the intrinsic value of water. The prioritisation is nothing short of a paradigm shift. In this essay, I discuss the dichotomy of intrinsic and instrumental values in environmental management, and a change in mind set from the unidirectional exploitation of the environment to one of mitigation and restoration by all water users. Waterways groups, by actions of environmental advocacy, could play an increasingly important role in advising councils in freshwater policy, i.e. the benefits of a formalised relationship between councils and waterways groups include Kaitiakitanga and Stewardship by communities and recognition that healthy environments need active restoration management. Requiring waters users to mitigate their impacts on the freshwater ecosystem incentivises investment in natural capital if flexibility is provided for water users to mitigate at least cost.","PeriodicalId":38921,"journal":{"name":"New Zealand Economic Papers","volume":"57 1","pages":"87 - 92"},"PeriodicalIF":0.0,"publicationDate":"2022-12-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48071077","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-06DOI: 10.1080/00779954.2022.2146527
P. Stahlmann-Brown, Richard J. Hall, Rex Butt, Brian McCall, Gabriel Torres, T. Wright
ABSTRACT The number of managed honeybee colonies in New Zealand has increased dramatically, due largely to increasing high-value mānuka honey exports. Pollination also represents an important part of the apicultural sector, providing critical services to the horticultural and arable crop industries. A survey of winter colony losses has been conducted annually since 2015. Using data from the 2021 wave of the survey, we derive a model to estimate the financial cost of winter colony loss to New Zealand commercial beekeepers in that year. We estimate that winter colony losses conservatively cost commercial beekeepers $24,181,835 in 2021, which amounts to $38.04 per managed colony. This equates to 9.2% of the value of honey yields for commercial beekeepers who produce honey and between 10.6% and 60.5% of the value of contracts for beekeepers who provide pollination services. These substantial costs pose a risk to the profitability of beekeeping.
{"title":"Valuing over-winter colony losses for New Zealand’s commercial beekeepers","authors":"P. Stahlmann-Brown, Richard J. Hall, Rex Butt, Brian McCall, Gabriel Torres, T. Wright","doi":"10.1080/00779954.2022.2146527","DOIUrl":"https://doi.org/10.1080/00779954.2022.2146527","url":null,"abstract":"ABSTRACT The number of managed honeybee colonies in New Zealand has increased dramatically, due largely to increasing high-value mānuka honey exports. Pollination also represents an important part of the apicultural sector, providing critical services to the horticultural and arable crop industries. A survey of winter colony losses has been conducted annually since 2015. Using data from the 2021 wave of the survey, we derive a model to estimate the financial cost of winter colony loss to New Zealand commercial beekeepers in that year. We estimate that winter colony losses conservatively cost commercial beekeepers $24,181,835 in 2021, which amounts to $38.04 per managed colony. This equates to 9.2% of the value of honey yields for commercial beekeepers who produce honey and between 10.6% and 60.5% of the value of contracts for beekeepers who provide pollination services. These substantial costs pose a risk to the profitability of beekeeping.","PeriodicalId":38921,"journal":{"name":"New Zealand Economic Papers","volume":"57 1","pages":"184 - 190"},"PeriodicalIF":0.0,"publicationDate":"2022-12-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47599883","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-11-14DOI: 10.1080/00779954.2022.2144752
Wanglin Ma, Puneet Vatsa, K. Bicknell
ABSTRACT There are growing concerns about the sustainability of New Zealand's agricultural systems, and efforts are underway to accelerate the adoption of sustainable agricultural practices. This note discusses four key challenges facing the country in transitioning to sustainable agriculture: reducing biogenic methane, lowering the usage of synthetic fertilisers, managing water use, and managing land use. A cohesive strategy involving the government, industry stakeholders, and research institutions is needed to effect this transition. Setting ambitious targets without providing viable alternatives to farmers or getting their buy-in is unlikely to be successful.
{"title":"Transition to sustainable agriculture in New Zealand: challenges and the way forward","authors":"Wanglin Ma, Puneet Vatsa, K. Bicknell","doi":"10.1080/00779954.2022.2144752","DOIUrl":"https://doi.org/10.1080/00779954.2022.2144752","url":null,"abstract":"ABSTRACT There are growing concerns about the sustainability of New Zealand's agricultural systems, and efforts are underway to accelerate the adoption of sustainable agricultural practices. This note discusses four key challenges facing the country in transitioning to sustainable agriculture: reducing biogenic methane, lowering the usage of synthetic fertilisers, managing water use, and managing land use. A cohesive strategy involving the government, industry stakeholders, and research institutions is needed to effect this transition. Setting ambitious targets without providing viable alternatives to farmers or getting their buy-in is unlikely to be successful.","PeriodicalId":38921,"journal":{"name":"New Zealand Economic Papers","volume":"57 1","pages":"119 - 124"},"PeriodicalIF":0.0,"publicationDate":"2022-11-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41394695","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-11-10DOI: 10.1080/00779954.2022.2138518
K. Anderson
ABSTRACT Following the loss of preferential access to the European Union’s previously highly protected sugar market, Fiji’s Government has been increasingly supporting its producers since 2010. That support is now much higher than most other countries’ assistance to the sugar sector. This study summarizes estimates of the changing extent of those transfers to producers from taxpayers and consumers. It does so by expressing them as nominal rates of assistance to producers and consumer tax equivalent rates (NRAs and CTEs). Those NRA and CTE estimates may well now exceed 100%. The level of support is around 5% of the government’s consolidated revenue. The nature of the support is not only economically inefficient and inequitable but also environmentally damaging and fiscally unsustainable given foreseeable market prospects. This suggests the need for that support to be re-purposed to provide better economic, social and environmental outcomes. Several suggestions as to how to do that conclude the paper.
{"title":"How sustainable is the growth of assistance to Fijian sugar producers?","authors":"K. Anderson","doi":"10.1080/00779954.2022.2138518","DOIUrl":"https://doi.org/10.1080/00779954.2022.2138518","url":null,"abstract":"ABSTRACT Following the loss of preferential access to the European Union’s previously highly protected sugar market, Fiji’s Government has been increasingly supporting its producers since 2010. That support is now much higher than most other countries’ assistance to the sugar sector. This study summarizes estimates of the changing extent of those transfers to producers from taxpayers and consumers. It does so by expressing them as nominal rates of assistance to producers and consumer tax equivalent rates (NRAs and CTEs). Those NRA and CTE estimates may well now exceed 100%. The level of support is around 5% of the government’s consolidated revenue. The nature of the support is not only economically inefficient and inequitable but also environmentally damaging and fiscally unsustainable given foreseeable market prospects. This suggests the need for that support to be re-purposed to provide better economic, social and environmental outcomes. Several suggestions as to how to do that conclude the paper.","PeriodicalId":38921,"journal":{"name":"New Zealand Economic Papers","volume":"57 1","pages":"114 - 118"},"PeriodicalIF":0.0,"publicationDate":"2022-11-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47829808","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-11-09DOI: 10.1080/00779954.2022.2142153
Niven Winchester
ABSTRACT Computable general equilibrium (CGE) models can be used to quantify the economic and emissions impacts of climate policies. The Climate PoLicy ANalysis (C-PLAN) model is a CGE model built for Climate Change Commission (CCC). Insights from the model indicate that (1) the economy-wide cost of meeting New Zealand’s 2050 emissions targets is less than one percent of GDP in that year, and (2) the development of a methane-reducing technology for livestock is a key driver of the costs of abating emissions. As the C-PLAN model is documented and open-source, it is hoped that the model contributes to meeting climate goals in New Zealand and other countries.
{"title":"Climate policy insights from an open-source economy-wide model","authors":"Niven Winchester","doi":"10.1080/00779954.2022.2142153","DOIUrl":"https://doi.org/10.1080/00779954.2022.2142153","url":null,"abstract":"ABSTRACT Computable general equilibrium (CGE) models can be used to quantify the economic and emissions impacts of climate policies. The Climate PoLicy ANalysis (C-PLAN) model is a CGE model built for Climate Change Commission (CCC). Insights from the model indicate that (1) the economy-wide cost of meeting New Zealand’s 2050 emissions targets is less than one percent of GDP in that year, and (2) the development of a methane-reducing technology for livestock is a key driver of the costs of abating emissions. As the C-PLAN model is documented and open-source, it is hoped that the model contributes to meeting climate goals in New Zealand and other countries.","PeriodicalId":38921,"journal":{"name":"New Zealand Economic Papers","volume":"57 1","pages":"179 - 183"},"PeriodicalIF":0.0,"publicationDate":"2022-11-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44211887","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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