Farmers should act now to become market leaders in regenerative agriculture
New Zealand is better placed than other countries to embrace regenerative agriculture due to its existing pastoral systems, but lack of a clear definition is holding it back, new research has found.
Research commissioned by Beef and Lamb New Zealand and New Zealand Wine Growers looked at how well positioned the country was to take advantage of a growing global tend towards the adoption of regenerative farming practices.
The research was conducted by Alpha Food Labs with funding support from the Ministry for Primary Industries Sustainable Food and Fibre Futures fund and focussed on the future market potential of regeneratively produced food and wine in three key markets – the US, Germany and Britain.
It found positioning regenerative agriculture as part of the solution to climate change had the potential to capture consumer interest. However, linking regenerative production to health and product taste would drive even greater consumer interest.
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Beef and Lamb chief executive Sam McIvor said, while still in its infancy, regenerative agriculture was gathering momentum and was set to become a significant trend in food internationally. Farmers needed to act before competitors took the opportunity.
Some New Zealand farming practices, such as rotational grazing and the use of diverse pastures already met regenerative principles but there was room to incorporate more.
Compared to the United States style feed-lot production, New Zealand’s pastoral systems provide a competitive advantage that would be hard for competitors to replicate on a large scale, the report says.
The infrastructure and skills to do this were mostly in place, including industry owned assurance schemes, marketing skills and a commitment to addressing climate change.
But getting the definition right is key, because there is a danger the term will be greenwashed or used to market products in bad faith. There is no globally accepted definition, which gives New Zealand the ability to step forward and craft it, the report suggests.
In the past, New Zealand farmers had lost significant ground when the definition of grass-fed in the US was widened substantially, nullifying a potential competitive advantage for the red meat sector, the report notes.
Most of the proponents spoken to identified regenerative agriculture as including:
• Tilling the soil less, or avoiding tilling altogether
• Planting cover crops or growing a diverse array of crops
• Managed-grazing practices
• Targeted (or minimal) use of fertilisers
These practices sought to improve soil health and put carbon back into the soil. Some said these were just a baseline and should be part of a greater sustainable farming system that went beyond soil health.
The report says it will be important to work with Māori to define regenerative and associated practices. The Primary Sector Council identified Te Taiao (the interconnectedness of the natural environment and people) as the most appropriate expression of regenerative in a New Zealand context.
Certification would also need to be addressed and an integrated approach to marketing adopted. Bodies were emerging to develop certifications including the Rodale Institute’s Regenerative Organic Certification and the Savory Institute’s Ecological Outcome Verification, which was being trialled in New Zealand.
Beef and Lamb market development general manager Nick Beeby said its role would be to develop the framework in consultation with meat processors and marketing companies, which could in turn work with farmers to take advantage of the market for regeneratively produced products.
“We believe the key is in how we tell the New Zealand farming story, the attributes, measurements, and verification that sit around this story and our claims.”
Existing programmes such as the New Zealand Farm Assurance Programme could underpin a regenerative claim for New Zealand sheep and beef farmers, especially if aligned with existing international certifications, the report says.
While there was a growing awareness among consumers it was yet to take hold as a driver of choices.
The research shows that consumers have indicated a willingness to pay more for regeneratively farmed produce, especially if it is shown to taste better and be better for people, as well as having a lower impact on the environment.
The report says that there are no strong individuals, organisations, or countries that own the regenerative agriculture story in the eyes of the consumer, but this will change fast as businesses and brands such as Hormel’s, PepsiCo, Cargill, Organic Valley and Danone begin to build regenerative into their products and marketing.
Building it into Beef and Lamb’s Taste Pure Nature campaign should be a priority after it has been established which practices will sit under a local definition of regenerative.