Executive Summary
2. The Food and Beverage Taskforce was established in December 2004 under the terms of the sector engagement framework of May 2004 [CBC (04) 70 refers]. The Taskforce released its report Smart Food, Cool Beverage: New Zealand's Future in the Food and Beverage Sector on 28 August 2006. The report underlines the importance of the sector to the New Zealand economy. The sector generates over half of our export earnings from merchandise trade and directly or indirectly employs one in five members of the working population. Over the last ten years it has recorded a compound annual growth rate of approximately five per cent per annum.
3. The report contained some 49 recommendations, most of which were actions for government. The recommendations, however, did not reflect comment within the taskforce process on the required changes to the way private interests behave, including better collaboration and initiatives in partnership with government.
4. Previous responses to taskforces, such as the GIF sector taskforces, have tended to focus on a one-to-one analysis of the individual recommendations. In this case, officials have sought to develop a response that goes beyond the recommendations and addresses the substantive issues raised in the taskforce's report, the objectives of government in establishing it and the steps required to take the sector to the next level of transformation. The taskforce's key themes are considered in the context of the economic transformation agenda together with recent developments in thinking about industry policy. A strong influence has been Ministers' intent to see a more targeted industry policy. To this end the first part of this paper:
- provides comment on the taskforce's overall strategy for development and identifies how it fits with both the economic transformation and sustainability objectives; and
- articulates a vision of the sector's future from the government's perspective, to provide a strong signal to stakeholders of the government's expectations for the sector's development and transformation.
5. Achieving this vision will require concerted and bold action on the part of both industry and government.. The second part of this paper identifies generic and specific actions which will support the sector's transformation. The initiatives outlined represent initial steps toward the vision's implementation. They fall into four categories. These are:
- [withheld under section 9(2)f(iv) of the Official Information Act];
- a range of more generic initiatives which impact positively on the sector;
- six key initiatives that address a number of the key taskforce recommendations (or groups of recommendations with a similar theme) and which are closely aligned with the government's economic transformation objectives;
- a view (in Annex 1) on each of the Taskforce's recommendations, whether they can be progressed now, how they align with or are addressed by existing work streams, or whether further work is required.
6. The paper also suggests that the government response include a challenge to industry – as the keystone of New Zealand's economy - to engage proactively in the economic transformation agenda and think and act more innovatively and collaboratively in order to leverage off the sector's strengths and drive development.
7. Environmental sustainability was not addressed in any significant way by the taskforce. There is, however, a substantial body of work already under way across the public sector aimed at addressing the economic, environmental and social sustainability challenges. Sustainability is also a central component of the Pastoral 21 research strategy. The goals of increased productivity and enhanced environmental sustainability are often linked. The New Zealand industry is relatively well positioned to deal with associated threats and opportunities. This paper notes, however, that sustainability needs to become more integrated as a core value in the sector's future development.
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