Key Initiatives
62. MED has worked with other agencies to provide a view on each of the taskforce's 49 recommendations. This information is provided in Annex 1. Officials have identified in particular six key initiatives that address the taskforce's main recommendations and which are aligned with the taskforce's key themes of collaboration, protecting the core and transformation through development of new products and new markets.
Key initiative 1: The Food and Beverage Product Development Infrastructure Project (themes: collaboration and transformation)
63. Presentations were made to the taskforce by several stakeholder groups regarding proposals to provide commercialisation infrastructure, such as pilot plants for testing and developing innovative food products. Proposals have been developed centred in Manukau, the Waikato and Canterbury. The key issue driving these proposals is what appears to be a gap in the "infrastructure" of New Zealand's food and beverage innovation system. The gap is situated between research activity and full-scale commercialisation. The lack of pilot scale facilities is a genuine area of concern for the sector and poses a barrier to the development of new products particularly by SMEs. The taskforce noted that it did not have the mandate to evaluate specific proposals, but recognised that some new innovation infrastructure might be needed and suggested that further analysis and consultation was required.
64. NZTE and MED in consultation with MAF, MoRST and FRST, will oversee a project which is aimed at firstly confirming the extent and nature of any gap in innovation infrastructure. Following this, officials will work with stakeholders on a feasibility study with the aim of developing a business case for co-ordinated investment across regions in the required infrastructure. The feasibility stage of this project will be completed by November 2007. An important component of this work is to ensure that the proposed pilot facilities are configured for the development of products that meet verified demand in international markets.
Key Initiative 2: Increasing the Business Capability of Exporters (theme: transformation)
65. This initiative addresses taskforce recommendation 15.1 – to build the capability of SME's, direct NZTE to develop an audit and mentoring programme similar to the Better By Design programme. NZTE in consultation with TEC and MED, will undertake a review of existing audit and mentoring programmes (benchmarked internationally) to identify synergies, strengths and gaps, with particular respect to the needs of the New Zealand food and beverage sector. A report outlining the outcome of the review and the proposed plan of action will be provided to the Minister for Industry and Regional Development by the end of December 2007.
Key Initiative 3: Increase the Profile of New Zealand Food and Beverage Firms Internationally through Expanded In-Market Assistance (themes: collaboration, transformation)
66. Taskforce recommendations 14.1, 14.2 and 14.3 address the need to expand in-market assistance for exporters. The taskforce noted that New Zealand food and beverage exporters face significant challenges, including the small size of the majority of our firms and the cost of overcoming the constraints of size and distance, including recent environmental concerns over "food miles". The cost of establishing a new branded product in international markets is prohibitively high for most New Zealand firms. Feedback from existing initiatives has shown that in-market assistance programmes, when well designed, produce strong results by reducing the risks and costs associated with market entry and market development. This could include ensuring that consumers in foreign markets are well informed on food miles and other sustainability issues relevant to New Zealand.
67. NZTE is seeking $19 million over four years in the current budget round to establish in-market initiatives in the high-growth markets of Asia and North America (particularly China, Japan and the United States) and to increase the proportion of Sector Projects funding dedicated to the food and beverage sector. Implementation of this initiative will be informed by a reference group made up of industry representatives to ensure that it meets the needs of stakeholders.
68. This initiative is contingent on final budget decisions.
Key Initiative 4: Raising productivity - pastoral industries component (Theme: protecting the core)
69. The taskforce's recommendation 1.1 proposed that government and industry should work together to increase output from the pastoral industries by at least 50 per cent by 2016. The rationale for this is that constraints on the supply of land and high land prices create an imperative to achieve higher land productivity. Reducing the environmental impact of pastoral industries is also increasingly an important focus of the research effort. The joint productivity and sustainability imperatives may result in some marginal land being taken out of production. The increased returns from higher productivity overall should, however, more than compensate for any loss of production from marginal land.
70. The taskforce's recommendation aligns with and supports the Pastoral 21 research initiative, which was supported through funding of $16 million over 4 years in the May 2006 budget package. This will be matched by industry funding of a similar level. As part of the 2007 budget, consideration is being given to a further proposal from Pastoral 21. In addition, the 2007 Budget business tax package will significantly benefit pastoral research.
71. The Pastoral 21 research strategy includes a strong sustainability component which aligns with the Government's current sustainability objectives. A key Pastoral 21 aim is to increase output value by 3 per cent per annum while reducing the input of resources by 1 per cent per annum. In addition, both Pastoral 21 and the government are concerned with improving skill levels in the rural workforce and the ability of farmers to adopt new technology.
Key Initiative 5: Setting Clear Directions for Food and Beverage Research (theme: transformation)
72. The Taskforce established an innovation working group to look at a range of innovation issues and make recommendations. It concluded that there was a need to:
- better align scientific effort with the productive output of the sector;
- improve technology transfer and uptake;
- link R&D and commercialisation of new products and services.
73. The Taskforce was also concerned that the research effort needed to be channelled to meet real customer demands. Identifying and addressing the potential opportunities for the development of high value functional foods is also a key imperative. A number of recommendations were made around these themes. These are detailed together with the government's response in Annex 1.
74. The overarching recommendation was that a National Innovative Foods Research Strategy be developed. In response, MoRST will undertake a work programme to assess New Zealand's research capability for food and beverage innovation. Using this information MoRST will develop a Food and Beverage Roadmap, which will provide broad context and high-level direction for food and beverage research. It will:
- provide better alignment between high-level research goals in the public RS&T system, and the long-term direction of innovation in the food and beverage industry;
- enable research to be more closely informed by business and market needs; and
- address the need to assess and develop research capability.
75. MoRST will lead this initiative in consultation with FRST, MAF, TEC, NZTE and MED. Consultation will primarily occur with research organisations and food companies. In 2007, MoRST will undertake the background capability survey. In 2008, MoRST will commence consultations and roadmap development.
Key Initiative 6: Implement Skills Action Plan (themes: protecting the core, collaboration, transformation).
76. The skills working group, established by the Taskforce, produced an integrated Skills Action Plan (the Plan), which provides for future focused activities that can be undertaken by industry and government. It is designed to support a high skill, high wage, high value economy by influencing changes in the food and beverage sector and supporting economic transformation objectives, especially the innovative and productive workplaces theme.
77. In summary, the Plan has the following aims:
- improve industry training organisations' strategic planning, particularly:
- application of forecasting tools to address skill shortages;
- quality and relevance of education and training;
- improve attractiveness of careers in the food and beverage sector; and
- improve productivity and adoption/integration of science and technology.
78. Implementation of the Plan is being overseen by the Skills and Training Action Group (STAG). This group provides for increased collaboration between industry organisations and government agencies. Implementation of some initiatives arising out of the Skills Action Plan has already begun. STAG is currently developing its work programme based on the Skills Action Plan. The Department of Labour will provide STAG with ongoing support, both strategic and operational.
79. The Skills Action Plan included the establishment of a Centre of Workforce Excellence in the New Zealand Council of Trade Unions, governed by a tripartite body. An application for $0.120 million in funding from the Regional and Industry Development Fund (RIDF) is currently being prepared to underwrite the scoping and establishment phase. Implementation of the Skills Action Plan may generate the need for budget bids beyond 2007/08. These bids may come from a variety of votes depending on the agreed work programme.
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