Statement of Intent
Operating Environment
MAF operates in a dynamic and ever-changing global, economic, biophysical and political environment. This means we need to be easily able to adapt to fulfil our mandate. Our effectiveness depends on our own level of understanding and control over the inputs, outputs and other variables to achieve our outcomes.
Government Priorities
Government priorities change over time and as a consequence will directly impact on the nature and scope of agencies’ objectives, priorities, activities and expected outcomes.
The current government has identified the priorities below.
• ECONOMIC TRANSFORMATION – Transforming New Zealand’s economy into a high income, knowledge-based market economy, which is both innovative and creative and provides a unique quality of life for all New Zealanders.
• FAMILIES, YOUNG AND OLD – Ensuring all families, the young and the old have the support and choices they need to be secure and able to reach their full potential within our knowledge-based economy.
• NATIONAL IDENTITY – Ensuring New Zealanders are able to take pride in who and what we are, through our arts, culture, film, sports and music, our appreciation of our natural environment, our understanding of our history and our stance on international issues.
External Influences
In a recent foresight study MAF identified six drivers of change that face New Zealand’s primary industries, environment and broader society over the next 10 to 15 years. These six drivers (listed in Table 1) set the scene for discussing our future operating environment strategy and will inform our strategic direction.
MAF released its foresight study in late 2007 (Future Focus: Signposts to Success for New Zealand’s Primary Industries). To read about this work in further detail, please find the document at http://www.maf.govt.nz/mafnet/publications/
Table 1: Six key drivers of change
| DRIVER OF CHANGE | EXPLANATION | |
| Global warming, climate change, and extreme weather | Human-induced climate change is now an accepted reality in most circles and, worldwide, there are increasingly strong political and commercial imperatives to act. New Zealand will be drier in the east, wetter in the west, growing warmer and will experience more extreme weather events. Key impacts will be increased biosecurity pressure, changes in farming systems through natural resource pressures as well as changing growing seasons and business adaptation. New Zealand will experience risks and opportunities through shifts in the global operating environment, particularly in consumer behaviour, production systems and conflict over resources. These will materialise in a carbon-constrained economy, new business models, and new investment and trading opportunities. | |
| Energy cost and supply | New Zealand’s agricultural sector is one of our biggest energy users. Globally, the costs and access to fossil fuels, and the effects of their use, will drive demand for renewable energy. Technology will improve around both renewables (including biofuels) and cleaner and more efficient use of fossil fuels. New Zealand’s abundance of renewable energy resources will give us an advantage but we will also experience issues around water allocation and land use. | |
| Geopolitical power shifts, and international trade and investment | Substantial shifts in the geopolitical context of international trade and capital flows are likely. Global power shifts and increasing demand for natural resources will see New Zealand experience different markets under new pressures, for example market perceptions and food provenance. Sustainability politics will see “green” movements become more mainstream and an increasing emphasis on sustainability certification. | |
| Ecosystem degradation, and water quality and availability | The projected growth in economic activity will place further burdens on natural ecosystems and on biosecurity systems globally. Water will become increasingly valuable, resulting in conflicts, capabilities of competitors and tensions around allocation and climate change adaptation. Sustainability branding of New Zealand’s products and production systems is a major opportunity but must be underpinned by traceability and credible validation. The risk of biosecurity incursions grows with increasing globalisation (trade and travel) and climate change. The ability to diversify New Zealand’s production systems to address environmental issues will reduce risk and sustain natural capital. | |
| Demographic shifts | Global population projections are uncertain because of the effects of climate change and related conflicts. However, an aging population in the West and most of Asia and an increasing demand for food, including more functional food, will present trade opportunities and some trade distortions for New Zealand. New Zealand’s growing population will have an increasing rural/urban division yet will see competition for land use by spreading into rural areas near cities. Skills shortages look to continue in the agricultural and forestry industries. | |
| Technological advances | New Zealand has relied on research and development for its success in the past and this will continue to drive our competitive advantage in the future. Some major global technological advances will impact on our agricultural and forestry sectors around information and communications technology, automation, health and “green” technologies. Technological solutions to address environmental damage and climate change impacts will emerge accordingly. Primary sectors are forecast to be transformed through productivity enhancement through genetics and producing value-added outputs to generate more diversified market approaches. Effective commercialisation and market uptake of these technologies will be critical. |
Monitoring the External Environment – economic, social and environmental variables and associated indicators
A significant proportion of MAF’s resources is focused on gathering, analysing and disseminating statistics on the economic, social and biophysical environment in which sectors operate. MAF also conducts environmental scanning research as part of its strategic management activities. This ensures that the Government’s policies and interventions are current, and that they are effective and efficient in generating desired outcomes.
MAF publishes several reports that indicate the state of the agricultural, food, forestry and related sectors (for example, SONZAF, Border Sector Monitoring Report, Surveillance Magazine). This information helps MAF establish benchmark figures for tracking sectors’ performance and informs government policy. The indicators are evaluative in nature and do not directly measure the impact of government policy. Table 2 lists a small selection of the indicators that we use to monitor the state of sectors’ operating environment.
Table 2: Indicators for three selected intermediate outcomes
| OUTCOME | INTERMEDIATE OUTCOME | INDICATORS |
| Economy: sustainable economic growth and prosperity for New Zealanders | A business environment for the agriculture, food, forestry that supports innovation, enterprise and high performance |
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| People: healthy New Zealanders and a vibrant rural community | Connected and resilient rural communities |
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| Environment: maintained and enhanced economic, social and cultural benefits for New Zealanders from the natural environment | Prevention and reduction of harm to the natural environment from pests and diseases |
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Managing for Outcomes
The generation of organisational outcomes is the same as any other productive process – certain inputs and activities are used to create outputs or end products. The use of these end products by the community creates impacts (or effects) on the New Zealand economy, people and the environment. To become an organisation that successfully manages for outcomes, MAF needs an outcomes framework that is aligned to its strategic context. As a public service agency, this strategic context must be consistent with the Government’s priorities.
Contact for Enquiries
Strategy and Performance Group
Ministry of Agriculture and Forestry
Pastoral House
25 The Terrace
PO Box 2526, Wellington
Tel: +64 4 894 0100
Fax: +64 4 894 0738
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