Meat industry calls for changes to emissions policy in NZ

While it does support a pricing mechanism to reduce emissions, the Meat Industry Association (MIA) in New Zealand is not happy with the NZ Government’s proposed interim processor-level levy.

The MIA wants changes made to this interim levy as well as the emissions price-setting process and has called for proper recognition for genuine sequestration that is happening on New Zealand’s sheep and beef farms. It also wants levy relief for those farmers disproportionately impacted by the proposed emissions pricing.

According to Nathan Guy, chairman of MIA NZ: “The He Waka Eke Noa Primary Sector Climate Action Partnership’s recommended proposal was carefully calibrated to ensure that disproportionate impacts were minimised across sectors, particularly for the sheep and beef industry.

“However, the government’s proposed changes have upset this balance. If implemented in its current form, the government’s proposal will have devastating consequences for the red meat industry, rural communities, approximately 92,000 red meat sector jobs and New Zealand’s food production and export success.”

The MIA is asking for a voice at the table when it comes to decisions concerning changes to the emissions pricing proposal. It is calling for the introduction of transitional levy relief, which is particularly important for sheep, beef and deer farmers whose only mitigation options readily available are destocking or afforestation.

“The processing and exporting industry also believes that if farmers’ emissions are to be priced, it is only fair they receive genuine recognition for the sequestration happening on their farms to manage the impact of emissions pricing,” Guy said.

According to Guy, MIA supports a cautious approach to methane pricing that must include the impact on rural communities, as well as food security and emissions leakage considerations.

“A delegation from MIA recently met with Prime Minister Jacinda Ardern, ministers and senior officials to discuss our differences and propose workable solutions.

“As a He Waka Eke Noa partner, we welcome ongoing talks to ensure any future government decisions have been road-tested with primary sector leaders first to get this delicate balance right. Any final solution needs to be enduring and protect rural communities.”

Sirma Karapeeva, chief executive of the Meat Industry Association, said processors are concerned that a drop in production due to emissions pricing would contribute to emissions leakage offshore.

“The government’s own modelling indicates that for every 1.6 million tonnes of emissions reduced from sheepmeat, there is 2.1m tonnes leaked globally. This equates to 133% of New Zealand’s emissions being leaked and contributing an increase in global emissions.

“Given global demands for protein continue to rise, a gap left by a drop production in New Zealand would be filled by less efficient producers, undermining global emissions reduction goals.

“New Zealand farmers are highly efficient food producers and recent research shows that our beef and sheepmeat sector is one of the most emissions-efficient in the world. Our on-farm carbon footprint is half the average of other comparable countries.

“We want to protect and grow this production system while at the same time playing our part in reducing greenhouse gas emissions.”

The meat processing industry has a decarbonisation program already underway, but the government’s modelling is suggesting a 20% drop in red meat production. According to Karapeeva, this would have a significant impact not only on individual farmers but also their communities.

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