Mike Chapman NZKGI Chief Executive

Once upon a time it was enough to provide quality product to consumers.

The New Zealand kiwifruit industry has done this consistently and the result has been premium returns earned in our off-shore markets in excess of that of our competition, Chile, by as much as 30 per cent; and in some markets just more than 100 per cent above the price of Chilean kiwifruit.

Led by the global supermarkets and some large fast food operations, such as McDonald's, this is all changing.

For example, McDonald's has announced it will source sustainable beef within two years.
Although, this is a US initiative, McDonald's is to make it a global strategy. Unbelievably, McDonald's purchase about two per cent of the world's beef production to feed its 34,000 outlets in 118 countries.

McDonald's is working with beef producers; and looking to promote sustainability for its global beef supply chain that is environmentally sound, socially responsible and economically viable.

One measure of sustainability being used is the carbon emissions lifecycle. Zespri, working with the Ministry for Primary Industries, using global best practice (PAS 20/50 methodology) have created a comprehensive carbon footprint across the lifecycle of New Zealand kiwifruit.

This study identifies the pattern of emissions across the lifecycle – from the orchard to consumption in market, as a basis for prioritising reduction initiatives.

It can be seen, from the table on emissions, one of the biggest contributors to carbon emissions is shipping. But importantly, orchard, packhouse and cool store operations account for roughly half of that.

Another measure is water use and disposal. This is particularly a problem for our dairy industry.

Contrasting water use in horticulture is instructive and offers a sustainable alternative.
Research funded by Zespri and MAF (as MPI was then), found the following facts on water management:

•100 per cent of kiwifruit water use in New Zealand is from naturally-replenished sources: rainfall and underground aquifers.

• Blue water used for irrigation and frost protection accounts for only five per cent of kiwifruit's water footprint.

• Grey water has been minimised by reducing orchard crop protection and fertiliser inputs.

But horticulture is not immune from the drive for sustainability.

A growing number of global supermarket chains are not only requiring their animal products to be sustainable, but also their plant products too.

For horticulture, this translates into on-orchard water and greenhouse gas emissions management.

And, as can be seen from the data quoted in this article, this is modest and sustainable.
My conclusion is diversification into horticulture is not only necessary for New Zealand economic survival, but its environmental survival; and for our exports to meet sustainability requirements.

The views expressed in this article are those of the author.