Policy Issues and MAF's Position.

5 - MAF Position

MAF recognises that organic farming is one of a number of ways to achieve more sustainable agriculture and increased export opportunities. MAF does not necessarily endorse all current standards and practices, but recognises the contribution that organic farming and values can make.

MAF does not support subsidies for organic farming. However where present infrastructure currently disadvantages development of organic farming, some government action may be necessary. MAF will generally not intervene directly but act as a facilitator in conjunction with the organic industry and other departments and institutions. MAF will announce and communicate this position to MAF staff, the rest of Government, the agricultural sector and the public at large.

6 - Overcoming conversion constraints

Some submissions suggested that government subsidise conversion costs using funds obtained through a pesticides tax. Any policies that require farmers to bear the costs of environmental damage, eg regulatory controls or a "polluter pays" tax, would tend to favour organic farming over high input farming. MAF does not support the use of funds acquired through such a tax to subsidise organic farming.

MAF supports the principle that users of our resources should pay the costs, including the full environmental cost. However, MAF considers that general taxes on all inputs do not usually target actual effects on the environment, which vary more by location and circumstances than by amount of an input used. MAF will cooperate with regional councils, agricultural and community groups in their implementation of the Resource Management Act, to establish structures and incentives to encourage more sustainable forms of farming.

7 - National Standards and Labelling

The existing system of certification by the NZ Biological Producers and Consumers Council (BPCC) and the Biodynamic Farming and Gardening Association (BDFGA) is considered by most of those who provided submissions to be working well. There is no evidence that national standards are needed. A Commerce Commission guideline definition of organically produced products helps interpretation of the Fair Trading Act for truth in labelling on the domestic market. MAF does not favour the introduction of legislated standards and prefers to support industry standards and self regulation for the domestic market. However, MAF will monitor the effectiveness of this policy and consider supporting a legislated definition under the Food Act or the proposed Primary Products Bill if required.

For export markets, MAF prefers to certify to importing country standards, and only where necessary for market access. MAF will support initiatives towards common international standards by supporting IFOAM and CODEX.

8 - Food Safety

Some consumers believe that organically produced food is safer and of a higher quality than conventionally produced products. MAF and the Ministry of Health have legislation and inspection systems in place to ensure that all food conforms to specified limits and is therefore "safe". MAF considers that organic food is not necessarily "safer" than other food products and notes that it is not generally tested for residues nor claimed to be residue free, although certification standards specify maximum residue limits that are usually one tenth of Ministry of Health limits. Organic products are certified according to the farming practices used to produce them. However, MAF recognises that organic food does fulfil a particular market demand and that organic certification provides some added assurance to some consumers.

9 - Animal Remedies, Animal Welfare and Disease Control

Organic farming systems aim to keep livestock and crops healthy. However, in order to minimise disease outbreaks and provide for animal welfare, programmes for the use of acceptable remedies need to be developed to substitute for recommended chemical interventions. Upon request, MAF veterinary authorities will assist certifying organisations with standards development. All producers are bound by the Animals Protection Act to use remedies when necessary to protect animal health.

10 - Research and Information Exchange

A major constraint on development is the lack of research into technologies appropriate for organic or other low input systems. Appropriate funding and institutional structures are needed to enable research within a whole systems context. MAF has no direct control over allocation of research resources but has communicated to MORST and FRST that research into more sustainable systems and technologies should be a priority. MAF has some funds for policy research which may be used if needed to study specific policy questions related to organic agriculture.

More exchange of information to new and intending organic farmers from existing organic farmers and from research results are needed. Processing and marketing firms wishing to increase their supply of organic produce are likely to be major sources of information. Landcare and farm discussion groups which are addressing sustainability issues may be one forum for some discussion of organic farming practices. The experience of organic farmers will be useful in this context.

11 - Education

A basically agro-ecological approach is taught by many educational institutions. Some are starting to include agro-ecological practises in courses also. Together with the relevant educational authorities and institutions, MAF will work to encourage incorporation of the principles and practises of sustainable agriculture and information about options such as organic farming in educational programmes.

12 - Legislation

Much agricultural legislation, especially marketing legislation, is based on commodity groupings, and may in some cases disadvantage or inhibit the development of organic agriculture. Where legislation clearly disadvantages organic producers there is a case for exempting them or modifying the legislation. Such legislation could include some marketing legislation. MAF will review legislation as necessary.

13 - Marketing

Marketing channels for the domestic and export markets are underdeveloped. Volume and continuity of supply and export phytosanitary requirements are problems. Large marketing organisations with expertise and contacts, such as the Apple and Pear Marketing Board and Wattie Frozen Food, are better able to develop markets than small organisations. MAF will collaborate with any Tradenz and private marketers initiatives in the collection and analysis of overseas market research. Agriculture NZ consultants already provide a service to establish contacts between organic farmers and processors and marketers.

14 - Market access

Overseas countries are starting to require NZ Government assurance that NZ exports of organic products meet their standards. The MAF Regulatory Authority has applied to the European Commission to be the Competent Authority to audit the systems of certifying organisations. Further progress will require documentation by the NZ private certification bodies. The US and possibly Japan may soon require similar assurances. MAF will provide information and advice to meet market access requirements. This will include monitoring overseas requirements and, where necessary, certification that products labelled as organic meet overseas standards.

15 - Cooperation with Australia

Australia has implemented guidelines for the export of organic produce. These standards may later be extended to the domestic market, in which case NZ exporters may need to demonstrate compliance with the standards. MAF will maintain contact with Australian officials to cooperate where possible. Additional cooperation is likely to occur at the industry level.

16 - IFOAM Conference

The biennial conference and general assembly of the International Federation of Organic Agriculture Movements, which will be held in Christchurch in 1994, will provide a good opportunity to promote NZ as a producer of organic products both with overseas buyers and NZ farmers. The Minister of Agriculture has expressed his support for this conference and MAF is represented on the organising committee.

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Contact for Enquiries

Kay Brown
Sector Performance Policy
MAF Policy
Ministry of Agriculture and Forestry
PO Box 2526
Wellington
NEW ZEALAND

Phone: +64 4 894 0695
Fax: +64 4 4 894 0746
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