as a result of a weakened surveillance ef- Changes continued to be made International fort. Nonetheless, horticultural exports by successive governments throughout Perspectives in from New Zealand continue to grow at the 1990s which were characterised around 10% per annum and many sec- mainly by substantial changes to and tors remain very competitive on world even removal of some of the legislation Horticultural markets. that provided statutory protection for Extension—A New producer boards. These producer boards he New Zealand economy were organisations that provided for col- Zealand Viewpoint has been strongly dependent lective and compulsory marketing of sec- Ton agricultural exports since tor products such as apples, kiwifruit, Ian J. Warrington,1 original European settlement in the meat, dairy and wool. mid 1800s. The country has always These reforms were driven by a Barrie D. Wallace,2 and lacked signifi cant natural resources, number of forces including a shift to 3 such as petroleum reserves and valu- more conservative politics; a tighter Sandy Scarrow able minerals, but it does have plentiful fi scal environment where the role of water supplies, a moderate climate and government focussed increasingly on ADDITIONAL INDEX WORDS. privatization, highly productive soils. These permit the provision of health, education, wel- government funding, extension services, the cultivation of a wide range of pas- fare and defence services; and a com- biosecurity, technology transfer, user pays ture species, extensive exotic forests, mitment by government to supporting and a diverse range of horticultural new sectors in the economy such as SUMMARY. The government-funded crops ranging from warm temperate electronics and biotechnology. At the horticulture extension service, which avocados (Persea americana) and same time agriculture commodity prices provided a free service to New Zealand satsuma mandarins (Citrus unshiu) world-wide progressively continued to growers for nearly 50 years, was priva- to cool climate wines. Kiwifruit (Ac- decline. Ongoing pressure to achieving tized in the late 1980s as part of major reforms to the primary production tinidia deliciosa) and apples ( global free trade in agricultural products sector. That service had provided one- sylvestris var. domestica) dominate fruit also provided government with an ideal on-one on-farm visits, budget advice, exports while buttercup squash (Cu- opportunity, in the absence of organised provision of technical information, and curbita maxima) and onions (Allium and effective opposition domestically, to facilitation of fi eld days, workshops cepa) feature highest in vegetable ex- remove all forms of subsidies and govern- and discussion groups throughout the ports. There are also substantial exports ment-sponsored services. country. This government-funded ser- of cutfl owers and live plants. Any review of the impacts of priva- vice also provided policy advice, acted In the 1950s, exports from the tization on extension services; therefore, as an interface between industry and agricultural sector comprised 50% of must be carried out against a background the research and development (R&D) gross domestic product (GDP) whereas of major and continuous macroeconomic sector, and responded to biosecurity incursions. A decade following privati- by 2002 this had decreased to 16% but reform to the overall primary produc- zation, the number of people involved was still very high compared to other tion sector in New Zealand, including in equivalent consultancy activities has developed nations. Within the wider horticulture. almost halved with very little recruit- agricultural sector, however, horticul- ment of new people into the profes- ture continues to grow in importance Pre-1990 sion. The emphasis is now much more increasing from only 1.8% of all agri- The nucleus of modern horticultur- towards providing advice on the overall cultural exports in 1970 to 11.8% in al consultancy services in New Zealand management of an individual enterprise 2001. can be traced to the post World War II to ensure its fi nancial viability, with less Furthermore, the horticultural period when there was priority given to emphasis on technical transfer. Large sector contributes strongly to regional rebuilding the export economy, estab- horticultural businesses are increasingly employing specialists in-house who can development, to employment and to a lishing returned servicemen and women provide technical solutions and advice diverse range of support industries in- into new employment, and responding to on balance sheet management. Private cluding transport, fi nance, legal, packag- market opportunities in the United King- consultancy companies now tend to ing, agricultural chemical supplies and dom through New Zealand’s member- work more at a local or regional level post-harvest storage services. ship of the British Commonwealth. The rather than at a national level and links Major reforms of the primary sec- Department of Agriculture, as it was then with R&D providers have markedly tor occurred in New Zealand in the late known, through its Horticulture Divi- weakened as research organisations 1980s and early 1990s as free-market sion provided a wide range of free gov- are increasingly protecting intellectual policies were introduced by successive ernment funded services. These involved property for their own commercial governments. The changes that took not only consultancy/extension services advantages and as information provi- sion is now largely on a user-pays basis. place were very signifi cant and impacted but included research and development In addition, biosecurity incursions over on farm subsidies, policy delivery, the activities, plant quarantine services, ex- the past decade appear to have increased organisation of science, and the provi- port certifi cation and the compilation of sion of support services including hor- industry statistics. In the early 1970s the 1Massey University, Palmerston North, New Zealand; [email protected]. ticulture extension (i.e., state-funded Horticulture Division was merged with 2MAF Policy, Ministry of Agriculture and Forestry, Palm- consultancy services). Cost recovery by the Farm Advisory Division to become erston North, New Zealand; [email protected]. charging for these services was progres- the Advisory Services Division (ASD). 3Agriculture New Zealand Ltd, Tauranga, New Zealand; sively introduced from 1984 (Sandrey The majority of these services were [email protected]. and Reynolds, 1990). continued in the new division, with the

20 • January–March 2004 14(1)

Workshop1 20 11/7/03, 9:56:21 AM exception of research and development university trained with at least 4-year tion of the horticultural community, were which was set up as a new stand-alone Bachelor degrees with majors in topics able to identify any threats to biosecurity entity within the department. such as agricultural economics, farm very early. Furthermore, these specialists Specifi cally ASD provided a wide management, horticultural production, were available to assist with containment range of free consultancy services in- soil science, entomology, plant pathol- and eradication. Examples of the effec- cluding ogy, extension methods and agricultural tiveness of this network included the • one-on-one farm visits; engineering. eradication of johnson grass (Sorghum • budget advice; Aside from the very obvious benefi ts halepense) within about 10 years of its • facilitation of farm/orchard discus- that accrued directly to horticultural pro- initial identifi cation in the early 1970s, sion groups; ducers (such as fruit and vegetable grow- and the containment of citrus canker • technical advice on all aspects of ers, fl ower growers and grape growers) (Xanthomonas campestris pv. citri). production including soil mapping, there were a number of other benefi ts KNOWLEDGE BASE. A key role of ASD fertilizer use, development of spray that were less obvious but which were, was to compile the annual statistics that programmes, preparation of climate nonetheless, of considerable signifi cance related to the horticultural sector in New and weather summaries, cultivar to the horticultural sector in particular Zealand. These statistics included infor- and rootstock selection and so on, and to New Zealand in general. These mation that underpinned policy advice backed up with fact sheets, manuals included: to government (e.g., value and growth and technical bulletins; RECRUITMENT AND TRAINING. Before in horticultural exports), industry plan- • fi eld trial/demonstration trials on 1990, ASD recruited a steady number ning (area of land planted and amounts growers properties; and of new staff annually—up to eight per of nursery stock used), employment • fi eld days, seminars and workshops. year in the horticultural sector alone. forecasting (number of orchard work- General consultants were located in Cadetships were also offered to assist ers employed), and resource utilisation the many horticultural producing areas with meeting the costs of undergraduate (amounts and types of fertilizers applied across the country. There were also crop training as well as post graduate studies. and amounts and sources of irrigation specialists nationally in pipfruit [primar- Students entering degree programs had, water used). Signifi cantly, the data base ily apples and (Pyrus communis)]; therefore, some certainty of employment was consistent and continuous over a stonefruit [primarily apricots (Prunus following their graduation together with long period of time, and applicable to a armeniaca), (Prunus persica), some fi nancial support during their number of different applications across and sweet cherries ()]; ber- training. the economy. ryfruit [primarily strawberries (Fragaria The occupation had prestige and TECHNOLOGY TRANSFER. An impor- ×ananassa)]; kiwifruit/subtropicals; career paths were identifi able. Signifi - tant role for the consultants within the grapes (Vitis spp.); vegetables; and or- cantly, an excellent mentoring program Ministry of Agriculture and Fisheries namentals. The key roles of these national was in place where older established staff (MAF) Advisory Services Division was specialists were to liaise with scientists were available to support recent recruits, to maintain a close interface with the and industry to identify research priori- to assist them through this probation- horticulture research and development ties and industry trends, to disseminate ary period and to ensure that they were that was taking place in the Research these to consultants and to communicate evaluated before being released for full Division of MAF, the various Research feedback on these issues. Signifi cantly consultancy activities. This fi nishing Divisions of the Department of Scientifi c some of these specialists were located school approach ensured that recent and Industrial Research (DSIR) and the on the campuses of the government’s appointees were aware of the depth of relevant New Zealand Universities (par- other main research organisation, the information available, were technically ticularly Massey University and Lincoln Department of Scientifi c and Indus- competent, and had been put through University). trial Research (DSIR), which had wide real life scenario-based exercises to ensure A Fruit Research Council, compris- ranging expertise and a long history that they were appropriate to the tasks ing representatives from industry, the ad- of involvement with many of the key and challenges that they were likely to visory services, the research community disciplines—in particular vegetable and face. and academia provided an ideal forum to fruit research including plant breeding, RECRUITING GROUND. The existence exchange ideas on sector research priori- crop husbandry, fruit physiology, post of a large, fully-integrated network of ties and to exchange information on latest harvest physiology, and pest and disease trained and experienced consultants R&D fi ndings that were of relevance to research. meant that the wider community had industry (Bollard, 1996). A similar body As well as specialists and consultants, access to a capability base from which to existed for the vegetable industry. there were experienced Field Offi cers recruit new employees. Typically, many A key role for government consul- who not only carried out their regula- government consultants, therefore, were tants within the ASD was, therefore, to tory functions but also provided basic recruited into fertilizer companies, ag- be aware of the research being carried technical advice to growers in areas such ricultural chemical companies, plant out within government R&D organiza- as spray chemical use, soil testing and rec- nursery businesses, producer/marketing tions, to assess and interpret its relevance ommendations for fertilizer applications. boards, tertiary training and research to New Zealand growers, and to include Most of these people had undergraduate institutes, and into other companies that information in up-to-date technol- diplomas in horticulture. Up to 30 such providing related horticultural services ogy transfer activities. Field Offi cers were operating up until such as trading banks and food process- MECHANISM FOR IMPLEMENTATION OF the late 1980s. ing companies. GOVERNMENT POLICY. The number and The ASD employed ≈60 horticul- BIOSECURITY. Consultant specialists, distribution of horticultural advisors/ tural consultants in the 1980s. All were having regular contact with a cross-sec- consultants throughout the country

• January–March 2004 14(1) 21

Workshop1 21 11/7/03, 9:56:22 AM provided a mechanism for the imple- of tertiary education to the sector. prises such as major fruit co-operatives mentation of government policy. For It has also taken a very strong lead, or wine companies, to become their in- example, during the 1970s and 1980s from a long term and high risk perspec- house technical consultants/advisors. there was a signifi cant push to increase tive, by committing heavily to areas that MAF continues to contract some policy the foreign exchange earnings of New are likely to lead to major areas of innova- advice from these private consultancy Zealand. This was supported with tax tion—areas such as biotechnology (in- companies or individuals. benefi ts for individuals and companies cluding the development of genetically Two other major changes have investing in products to be exported. modifi ed cultivars) and the development occurred very recently. In 2002, the Advisors/consultants were able to pro- of industries that will exploit novel bioac- Government re-introduced a census for vide advice on proposed investments tive compounds, such as nutraceuticals gathering statistics of relevance to the ag- and assist in the development of those and over-the-counter health-enhancing riculture sector, including horticulture. investments to enhance the potential compounds, that are extracted from con- This is being managed through MAF for success. ventional crops. These developments are and is intended to rebuild the knowledge increasingly engaging new commercial base about the industry following the Post-1990 entities to take up these emerging op- absence of such quality information for The changes that occurred in the portunities rather than involving those the previous decade. The most signifi - late 1980s and early 1990s with respect who currently operate from a traditional cant change that has occurred, however, to both horticultural extension and re- fruit commodity base. has been the rebuilding of capability in search and development were dramatic A key initiative undertaken by the whole area of biosecurity following and immediate. These changes included HortResearch, as early as 1993, was the several incursions of economically-sig- the following: establishment of new computer-based nifi cant organisms including varroa bee ESTABLISHMENT OF C ROWN R ESEARCH systems for the horticultural sector. These mite (Varroa destructor), fi re ant (Sole- INSTITUTES. The assignment in 1992 of all included the following. nopsis invicta), sawfl y (Nematus horticultural research previously carried Orchard 2000—a decision support oligospilus), guava (Coscioptycha out in MAF and DSIR into two Crown system designed to provide quick, ac- improbana), painted apple moth (Teia Research Institutes (CRIs): The Horti- curate information to assist management anartoides), and white spotted tussock culture and Food Research Institute of decisions. It is a PC-based collection of moth ( thyellina). This activity is New Zealand Ltd (HortResearch) with management tools including Met View, managed within a new MAF Biosecurity a strong emphasis on fruit research and an up-to-date weather check; a grow- Authority that has recruited heavily from The Crop and Food Research Institute ing degree-day calculator; a Spray Diary, the Crown Research Institutes, universi- of New Zealand Ltd (Crop and Food complete with information on over 300 ties and other government agencies in Research) with its strong emphasis agrichemicals and an inventory manage- order to provide the human resource on vegetable research. The CRIs are ment module; and various other compo- capability required. government owned and are managed nents including, for example, an apple The advantages and disadvantages as companies. They are required to oper- black spot [i.e., apple scab (Venturia of the shift from a state-run extension ate in a “fi nancially responsible manner”, inaequalis)] predictor. service to a private sector consultancy may be required to pay dividends, and HortNet—a PC-based information business can be summarised as follows: are entirely funded through competitive system for fruit growers with regular Advantages grants from both the private and public updates of horticultural news, a calen- The relationship between the con- sector for salaries, capital purchases and dar of horticultural events, and a direc- sultant and the client is now defi ned all operating costs. tory of an extensive range of technical within a closely prescribed contractual The CRIs are not contracted direct- information. relationship at the level of the individual ly to engage in conventional horticultural Uptake of this subscription-based enterprise. extension activities but, as an integral part service was very poor although feedback The consultant has become an integral of ensuring that the outputs of govern- on content and quality was excellent. and essential part of managing that in- ment-sourced R&D contracts meet the This centralised, domain-protected plat- dividual enterprise. benefi t to New Zealand requirements, form has been discarded by the various 1) There is a strong emphasis on the scientifi c and technical staff participate sector-based horticultural industries in provision of advice that enhances busi- in industry fi eld-days, R&D confer- New Zealand in favour of their own ness profi tability and viability. ences and workshops, and contribute narrower-scope, sector-specifi c web sites. 2) A broad, integrated perspective of to tertiary education and continuing As a consequence, there is considerable the enterprise is assumed where all education programmes. They also write duplication of effort, poor resourcing relevant elements of the business are technology transfer articles in industry and little technical backup to service considered. publications, including magazines and subsequent enquiries. 3) There is a shift in emphasis that newsletters, fact sheets and technical RESTRUCTURING OF MAF. The re- focuses more on total balance sheet books and bulletins, and they interface structuring of MAF occurred in 1994 management and less on technical/ directly with growers and particularly with the immediate disbanding of all information transfer. with grower organisations. advisory/extension services. Those Disadvantages HortResearch in particular has also previously employed by MAF but who 1) Individual consultancy companies taken a strong role in advocating the remained as consultants either joined tend to be small with greater emphasis importance of the sector to the economy, existing private sector consultancy on local or regional rather than national in collating and publishing industry sta- companies or established their own. integration. tistics, and in promoting the importance Some joined other horticultural enter- 2) Profi t margins within consultancy

22 • January–March 2004 14(1)

Workshop1 22 11/7/03, 9:56:24 AM businesses appear to be small providing Impacts on New Zealand bers have more than halved to reach fewer opportunities to support ongoing levels that are not meeting current training of existing staff. The major reforms to the primary demand; 3) Large production-oriented entities sector that took place a decade ago do not • accurate and timely statistical informa- are tending towards employing their appear to have slowed the rapid growth tion has been increasingly diffi cult to own technical experts and less toward in horticulture-based export receipts that obtain; and employing contracted-in consultancy have now occurred for >35 years. The • the number of biosecurity incursions services. fi gures are impressive: $NZ33.5 million has increased as surveillance meth- 4) Continuity of revenue from consul- f.o.b. in 1965 to $NZ 1.952 billion f.o.b. ods have proven to be inadequate. tancy activities alone can be diffi cult to in 2001. Further, direct costs of containment achieve. Consequently, diversifi cation In the past decade—the period of and eradication are very high while of activities is often required to ensure major reform and privatization—the area indirect costs of quarantine zones, the sustainability of the business. Areas planted in winegrapes (Vitis vinifera) threats to product integrity, and im- of such diversifi cation can include the has more than doubled [from 5440 to pacts on communities (from activities provision of R&D services, the manage- 11,648 ha (13,443 to 28,783 acres)], in such as aerial spray of pesticides) are ment of quality assurance programmes, avocados has more than trebled [to 2646 considerable. the provision of industry training and ha (6538 acres)], in berryfruit [primar- the provision of export certifi cation ily strawberries and blueberries (Vac- Conclusions services. cinium corymbosum)] and summerfruit The privatization of horticultural 5) Access to technical information, R&D (primarily apricots and sweet cherries) consultancy services in New Zealand a results, statistical data and other inputs has increased by ≈50% [to 2144 and decade ago has resulted in a number of is on a user-pays basis, which means that 3045 ha, respectively (5298 and 7524 signifi cant direct and indirect changes. technical and information renewal can be acres)], in kiwifruit by about 15% [to These have impacted in a number of expensive, and is, therefore, limited. 11,533 ha (28,499 acres)] while, in spite different ways variously from individual 6) The functional relationship between of major industry restructuring and de- production units through to national R&D providers and technology trans- pressed global prices, the area in pipfruit considerations. The removal of govern- fer agents has broken down. There is has remained almost static [14,200 ha ment intervention has seen a strengthen- therefore the potential for the fl ow of (35,089 acres)]. Areas planted in onions ing of the interface between consultant information between these agencies and [7044 ha (17,406 acres)], squash [6732 and grower at the level of the individual the grower to be restricted because of ha (16,635 acres)] and other vegetables enterprise with an increase in the quality, the “user pays”/contractual nature of [55,514 ha (137,178 acres) in total] have relevance and timeliness of advice being the relationships. also approximately doubled over this provided. Alternative sources for some 7) The overall primary production sector same interval (HortResearch, 2001). technical advice have been developed is seen to be unattractive, with declines This growth has been character- within other service sectors. In balance, in tertiary enrolments and, consequently, ised by information now is not being widely there is a rapidly shrinking base for at- • strong increases in the number of shared, consultancy activities are more tracting new recruits into the business. In countries being exported to (83 in regionally than nationally focussed, and fact, while there were ≈60 horticultural 1990 to 102 in 2001); recruitment of new staff into consultancy consultants employed in the late 1980s, • strengthening of brands, such as companies has been low compared to a there are now only 35 employed in the ZESPRI and ENZA; decade earlier. Further, areas such as the private companies that emerged from the • promotion of products from low compilation of horticultural statistics, the privatization of the extension services. Of pesticide, integrated production maintenance of integrated biosecurity ca- these 35, only 5 have been recruited over methods; and pability and the provision of leadership the past 15 years. In balance, the number • promotion of products produced and advocacy, such as were provided pre- of private sector entities who offer specifi c using organic production methods. viously by government-owned advisory advice in targeted areas such as fertilizer This growth has, however, also occurred services, have been acutely degraded. use, the selection of appropriate spray at a time when chemicals, and the management of fresh • the availability of technical informa- Literature cited produce through the supply chain has tion has become more limited as vari- Bollard, E.G. 1996. Further prospects for increased over the past decade. ous entities see value in intellectual horticulture. The continuing importance of 8) There has had to be a rebuilding of property and want to maximise their research. Hort. Food Res. Inst. N.Z. Ltd., competency in the areas of biosecurity returns from it for their own gains; Palmerston North. policy development, the management of • there has been remarkably little in- incursions and the recruitment of ap- HortResearch. 2001. New Zealand horticul- novation in the horticulture sector ture facts and fi gures. Hort. Food Res. Inst. propriately trained staff, during which with increasing reliance on outdated N.Z. Ltd., Palmerston North. several incursions of economically sig- cultivars, old production methods and nifi cant organisms have occurred. conventional packaging, storage and Sandrey, R. and R. Reynolds (eds.). 1990. Nonetheless, there are currently a transportation methods; Farming without subsidies; New Zealand’s number of profi table and viable horti- • the attractiveness of the sector to uni- recent experience. Government Print Books, Wellington, N.Z.. cultural consultancy enterprises in New versity undergraduates has collapsed Zealand who serve the sector very well with marked reductions in numbers and who are likely to continue to do so enrolled for various programmes. into the future. Furthermore, postgraduate num-

• January–March 2004 14(1) 23

Workshop1 23 11/7/03, 9:56:26 AM