Ministry of Economic Development Home| Contact MED|


 
 
 

Links to this page were:

Section Subnavigation Links:

Annex 4


Food and Beverage Sector Engagement - Cabinet Paper

Hon Jim Anderton, Minister for Economic Development and Hon Jim Sutton, Minister of Agriculture and Minister for Trade Negotiations
[ Last Updated 12 October 2005 ]


The table below lists issues where the Food and Beverage Sector engagement could add significant value.

Key Issues Facing SectorImplicationsOpportunities for Engagement
Land use
Plant and animal genetic resources.Limits ability to provide new products.Accessing elite genetics to provide new products and a base for biotechnology.
Matching land use to the natural environment (soils, climate, rainfall, vegetation cover, etc).
Carrying capacity.
Enhances / enables increased productivity re: raw materials etc. Influences ability to produce sustainable food and beverage products.Forum for discussion. Development and implementation of management tools like LENZ (Land Environments of New Zealand).
Business Behaviour
Recruitment and retention of skilled staff.Limits ability to innovate, produce and respond to market requirements.Skill and Talent working groups that look at long term supply / demand issues and integrate needs with wider govt policies.
Collaborative interaction.Potential for inefficiencies and delayed learning.Facilitating clustering activity and sharing of information / learning.
Short-term vs long-term outlook.Limits medium - long term strategic planning and R&D - can limit value addition/ extraction and competitiveness.Development and communication of joint government / industry long term vision and strategy.

Education and awareness.

InvestmentSee above. 
Focus on realising premium value.Value left on the table for others to extract.Education / Awareness.

See "Investment in R&D", "commercialisation".

Factor Conditions
  • Infrastructure
  • Energy - cost and availability
  • Transport
  • Telecommunications, particularly broadband access
  • Water sustainability (allocation, efficiency, quality)
Potential to affect reliability and cost of production.Forum for communication. Alignment with the Sustainable Water Programme of Action work programme, lead by MFE/MAF.
Cost of capital.
Labour productivity and availability.
Rural services.
Land use sustainability.
R&D into technologies, and uptake of technologies, that help to make sector practices more sustainable.  
Intangible Assets
Investment in R&D.Limits innovation and value extraction.Provide Govt with information on which to make policy choices. Understand and overcome barriers to industry investment.
Commercialisation of IP and IP protection.Commercialisation returns reduced / delayed.Provide Govt with information on which to make policy choices. Understand and overcome barriers to industry investment.
Image and reputation (brand).Dilution of brand limits ability to extract value.Forum for understanding challenges of establishing global brands ex New Zealand.
Education / awareness.
ICT / biotech / design exploitation.Not maximizing the value of a product, or efficiencies in the business.Ability to leverage off other government initiatives e.g. GIF sectors.
Business and management capability.Limits ability of companies to grow and develop in most effective way possible.Skills working groups that look at long term supply / demand issues and integrate needs with wider govt policies.
International
Trade and market access issues.Potential limitation of available markets.Engagement could assist prioritisation of market issues facing the industry.
Increased cooperation with Australia.Possible synergies from cooperation with Australian Food and Beverage sector, e.g. in food standards, international marketing, or economic development efforts.Identify opportunities and how to utilise them.
Access to and participation in the global value chain.Potential limitation of value extracted from product - limited information flows from market.Education and awareness.
Increasing integrity and traceability demands.Potential limitation of access to markets.More effective communication to garner consumer and industry views on food safety integrity.
Increasing food standards requirements.Potential limitation of access to markets.More effective communication re consumer and industry views on food safety integrity.

Sharing industry understanding with Government.

Point of origin (branding), e.g. New Zealand's clean green image, "100% Pure".Dilution of brand limits ability to extract value. The risks to NZ's "clean green" image if we don't live up to that image.Forum for discussion on New Zealand's brand position.
Information asymmetry - that is, access by New Zealand players to market signals and new knowledge.Potential limitation of value extracted from product and limitation of ability to respond to market in timely fashion.Forum for Communication.
Increasing pace of change in market demand and structures.Requires open information flows and responsiveness. 
New competitors.Requires open information flows and responsiveness. 
International obligations, e.g. WTO, Kyoto.  
Growing consumer demand for clean green and ethically produced products, particularly from Europe  
Business Environment
The rules of operation - the legislative and regulatory environment, maintenance of an open economy and sound monetary and fiscal management.Changes can affect cost of doing business.Providing government with information on which to make policy choices.
Whole of government co-ordination and engagement, - ease of access to government services, both generic and sector specific and ease of compliance with legal requirements.Increased synergies and efficiencies.Engagement could provide an important point of contact for Government agencies with industry.
Tax and related issues.Appropriateness of regime.Identification of issues and potential solutions.

Back to Top