Global Expert Mission Agri-Tech Innovation in New Zealand 2019
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Connecting for Positive Change _ ktn-uk.org/Global Global Expert Mission Agri-Tech Innovation in New Zealand 2019 Contact Dr Sandeep Sandhu Knowledge Transfer Manager – International & Development [email protected] AGRI-TECH INNOVATION IN NEW ZEALAND 2019 Contents Welcome 4 Executive Summary 5 1 New Zealand Agri-Tech Policy, Funding and Investment Landscape 6 1.1 Overview 6 1.2 New Zealand Government Department’s Involvement in Agri-Tech 7 1.3 Agritech New Zealand: Driving Strategic Change 9 2 New Zealand Agri-Tech Innovation 11 2.1 Overview 13 2.2 Innovation Support for New Zealand Agri-Tech R&D 13 2.3 Agri-Tech Investment in New Zealand 13 2.4 Workshop Exercise in Auckland 15 2.5 Agricultural Robotics 15 2.6 Environmental Issues 17 2.7 The New Zealand Dairy Sector 17 2.8 Precision Livestock Farming 18 2.9 Abacus Bio 19 2.10 FoodHQ 19 Annex 1 – List of UK and New Zealand Participants 20 Agri-Tech Innovation in New Zealand 2019 | 3 INNOVATE UK GLOBAL EXPERT MISSION Welcome Innovate UK global missions programme is one of its most important tools to support the UK’s Industrial Strategy’s ambition for the UK to be the international partner of choice for science and innovation. Global collaborations are crucial in meeting the Industrial Strategy’s Grand Challenges and will be further supported by the launch of a new International Research and Innovation Strategy. Innovate UK’s Global Expert Missions, led by Innovate UK’s Knowledge Transfer Network, play an important role in building strategic partnerships, providing deep insight into the opportunities for UK innovation and shaping future programmes. The Agri-Tech Expert Mission travelled to Wellington, Palmerston North, Christchurch and Auckland in March 2019, and in this publication we share the information and insights gathered during the delegation’s time in New Zealand. A full list of the UK and New Zealand participating organisations is included in Annex 1. Agri-tech collaboration discussions in the British High Commission, Wellington 4 | Agri-Tech Innovation in New Zealand 2019 AGRI-TECH INNOVATION IN NEW ZEALAND 2019 Executive Summary Both the UK and New Zealand face the challenge of clean growth, and agri-tech innovation holds the key to enhancing productivity in human nutrition whilst protecting our environment. The extent of the cultural and environmental similarity Many collaborations between academic and commercial between the agricultural sectors in New Zealand and the organisations in both countries exist and building on these UK is striking, and existing personal links are strong. Many of arrangements is low-risk. The UK has a network of data- the people who met with our delegation had experience of connected farms created as part of the Agri-Tech Strategy, working in the UK, at a high level or in their early careers. Both which can be utilised for benchmarking innovative commercial countries face the moral responsibility to produce more food ideas. A range of facilities exists in both countries which can as a result of climate change, there being near-neighbours in provide a “soft landing” for businesses taking their first step on both hemispheres where food production is likely to become a global journey. progressively more challenging as temperatures rise and Having a presence on opposite sides of the world has populations increase. particular benefits in agri-tech development. It makes it Agri-tech is already recognised by New Zealand as a significant possible to squeeze two seasons of testing into one twelve- export opportunity, and the UK has developed game- month period, greatly speeding up advances in both plant changing technology in robotics and artificial intelligence, and animal-based systems. The similar maritime climate low carbon energy and high-speed communications which and comparable terrain in both countries makes this kind of feed directly into this. Coupled with the capacity of the City approach particularly straightforward. of London to deliver investment, along with the UK’s well- Looking at the social aspects of technology adoption, any respected capacity in agricultural research, and we have a issues are very similar in both countries, to the extent that unique opportunity to encourage clean growth worldwide. end-users in either country can give feedback on products or Both countries have highly-innovative food producers, services directly to the originator in either country, without motivated to provide the highest quality, traceable food with any cultural barrier. minimal environmental impact. Traceability and adherence to In summary, the basis for a coordinated approach to agri-tech environmental standards have been particularly encouraged collaboration between the UK and New Zealand would be in the UK by intense pressure from both government three-fold and would: and supermarkets in a way which has obliged systems to evolve to the point where the UK is now a global leader 1. secure commercial investment; in food assurance. These systems are directly applicable to New Zealand, where, as in the UK, animal welfare and 2. deliver environmental protection and animal welfare; environmental protection are of great importance to 3. improve the development and adoption of technology. consumers. Agri-Tech Innovation in New Zealand 2019 | 5 INNOVATE UK GLOBAL EXPERT MISSION 1. New Zealand Agri-Tech Policy, Funding and Investment Landscape 1.1 Overview economy. This means that businesses that have survived have There are striking similarities in the outlook of New Zealand done so through hard work, tenacity and not a little ingenuity, and British farmers. The landscapes and challenges are similar, as we saw for ourselves. and farming operations are generally on a similar scale to those in the UK. The relatively small community of agri-tech Connections to the land are strong in New Zealand, where early adopters makes it easier for innovative producers in New legislators and financiers often have a direct farming Zealand to collaborate and communicate with each other. background, which can be hugely beneficial, resulting in In contrast to the UK, New Zealand’s export focus appears pragmatic decision making. This situation tends to be less to reduce competition over the internal market, facilitating likely in the UK, where policymakers are often further communication and collaboration in agri-business. This is removed from rural issues. one significant point of difference between the UK and New This Expert Mission was held against the backdrop of Brexit Zealand. In the UK, whilst collaborative effort up and down in the UK. The Second Secretary for Trade at the British High the supply chain is gathering some momentum, the power of Commission in Wellington explained to our group that one the supermarkets (in a relatively small market) is suppressing of his roles is to communicate about the potential Brexit producer margins meaning that there is often intense opportunities for the New Zealand economy, including trade competition between individual producers. UK supermarkets agreements and that the High Commission “is working hard to do make an effort to facilitate the sharing of best practice make a trade agreement happen”. among their producers, but that is often in the form of anonymised benchmarking. New Zealand producers are much The mission was well-briefed by the UK’s Science and more export-focussed. Innovation Officer, also based at the British High Commission in Wellington, much of whose work is aimed at supporting While we think of farmers in the UK as a pretty resilient group, preparations for a UK/New Zealand free trade agreement. it is worth remembering that New Zealand’s farmers had their We also met with a representative from the UK’s Department subsidies taken away more or less overnight in the mid-1980s for International Trade, who works closely with the London 1 as part of a number of economy-wide reforms (Rogernomics ) office of New Zealand Trade and Enterprise. They support UK aimed at improving the competitiveness of the New Zealand companies looking to set up in New Zealand and vice versa. Grazing livestock in Tokomaru 1 https://en.wikipedia.org/wiki/History_of_New_Zealand#The_radical_1980s_reforms 6 | Agri-Tech Innovation in New Zealand 2019 AGRI-TECH INNOVATION IN NEW ZEALAND 2019 1.2 New Zealand Government Department’s big data in an attempt to link back and better understand Involvement in Agri-Tech these complex systems. Sensors too, have a role in precision As part of our March 2019 briefing in Wellington, the UK’s farming and robotics, which is enjoying a significant upsurge, Science and Innovation Officer explained that New Zealand’s driven by critical labour issues in the kiwi fruit and meat Minister David Parker is promoting agriculture as a growth sector (where robotic systems are beginning to be used for sector for New Zealand, and he is well-placed as he is not only processing). MBIE was keen to stress that they aim to ensure Minister for the Environment, but also Minister for Trade and fair and just transitions, rather than overnight step change. We Export Growth. As UK observers it is interesting to note that guessed that New Zealand farmers had experienced their fair before politics, David Parker had a business career in agri- share of overnight step changes, and that MBIE seemed to be biotechnology2, as well as being a litigation partner in a law working to ensure that change was digestible for the farming firm. community, with the help of policy instruments in the form of specific allocation of provincial growth funding for rural areas. Our first day of meetings in Wellington included a round-table discussion with the New Zealand Government. We met with The delegation was told about the main source of contestable key figures from: funding for New Zealand’s fundamental “blue skies” research in science and humanities: the Marsden Fund, administered • Ministry of Business, Innovation and Employment (MBIE), by the Royal Society of New Zealand.