Open letter to NZ Farmers regarding He Waka Eke Noa

New Zealand meat processors and exporters are committed to He Waka Eke Noa – the Primary Sector Climate Action Partnership and are working constructively with all He Waka Eke Noa partners to achieve our common goal. There is a lot at stake and its critical that we get the policy settings right so that we can get the best returns for our farmers and the sector.

A letter to New Zealand farmers

New Zealand meat processors and exporters are committed to He Waka Eke Noa – the Primary Sector Climate Action Partnership and are working constructively with all He Waka Eke Noa partners to achieve our common goal.

We know there is a lot of debate about emissions pricing and that’s why the options are up for farmer consultation.

We want farmers to be actively engaged in this discussion and setting the future.

There is a lot at stake

Sheep and beef farmers and the meat processing and exporting sector collectively generate $12 billion in income per year for the country and account for more than 92,000 jobs, almost five percent of New Zealand’s full-time workforce.

For our sector, it’s critical we have the right policy setting to help us get the best returns for you.

We want an emissions pricing system that demonstrates to New Zealanders and to our global customers that we’re committed to producing environmentally-sustainable red meat and that our story is backed by science and modern farm management practices. Many of our customers are looking for products that are good for their families and good for the planet.

Keep agriculture out of the ETS

The Government has made it clear that if we can’t develop and agree a fair and credible alternative emission pricing system, agriculture will be brought into the ETS.

The ETS as structured, is not an appropriate solution for our sector. It does not capture the meaningfully different environmental impacts of different gases from agriculture (split gas approach). Nor does it recognise lots of vegetation on farm land that is sequestering carbon, which is a key part of New Zealand farming systems.

The ETS would act as a blunt tax on production without incentivising and supporting farmers to reduce their emissions and it would not result in the outcomes the Government or New Zealand is seeking.

Given the likely ETS prices, putting agriculture into the ETS would have a devastating impact on the red meat sector and ultimately our rural communities.

With the Government stating its position, doing nothing is not an option — we must all work together to find a constructive solution so the red meat sector can play its part in addressing climate change.

Our view

What we have heard so far from farmers is that you only want to pay for the warming emissions that your farm produces. You want a pricing system that gives you control, rewards practical reduction actions, and unlike the ETS, recognises all on-farm sequestration. The He Waka Eke Noa partnership industry has tried to design a pricing system which does exactly that.

The meat processing and exporting sector supports a price for on farm emissions paid at the farm-level – that way you will pay only for the emissions that your farm produces. The money raised should be used to support the uptake of new technologies that reduce emissions and support better farm management (including recognising sequestration outside the ETS).

Have your say

As farmers, you all have a decision to make. Your feedback is important – we want to hear from you. www.hewakaekenoa.nz/your-say

We must come up with an agricultural-specific emissions pricing framework through He Waka Eke Noa. Although it has been difficult and complex, there has been good progress on the work so far.

We need to work together.