NZIER report highlights risk to vegetable prices from unworkable regulations
4 November 2024
A new report by the New Zealand Institute of Economic Research (NZIER) warns fresh vegetable prices could increase, possibly dramatically, if the Government doesn’t move quickly to provide a clear and workable regulatory pathway for vegetable production.
The report, commissioned by Horticulture New Zealand (HortNZ), gives the example that the price of broccoli could go as high as $27 a kilo, or about $9 a head, if vegetable production is cut by 20% as a result of proposed regulations aimed at reducing nitrogen run-off.
HortNZ commissioned NZIER to consider the regulatory framework required for commercial vegetable production to thrive in New Zealand, given that the Government is rethinking the approach to managing freshwater.
In doing this, NZIER was asked to consider the economic implications of proposed regional regulations.
Chris Nixon of NZIER says the report shows the way the National Policy Statement for Freshwater (NPS-FM) is being interpreted and translated into freshwater regulations by councils could severely impact vegetable production, leading to sharp price increases for consumers.
“Without swift adjustments, key crops like broccoli could become significantly more expensive, underlining the need for targeted reforms that support both environmental, freshwater goals and the affordability of healthy food in New Zealand."