The analysis includes an examination of the economic implications of proposed regional regulations
A new report by the New Zealand Institute of Economic Research (NZIER) warns that fresh vegetable prices could rise significantly if the Government does not act quickly to establish a clear and workable regulatory framework for vegetable production.
Commissioned by Horticulture New Zealand (HortNZ), the report highlights that the price of broccoli could soar to as much as $27 per kilogram, or about $9 per head if vegetable production decreases by 20 per cent due to proposed regulations aimed at reducing nitrogen runoff.
HortNZ commissioned NZIER to examine the regulatory framework needed for commercial vegetable production to thrive in New Zealand, particularly as the Government reevaluates its approach to managing freshwater resources. The analysis includes an examination of the economic implications of proposed regional regulations.
Chris Nixon from NZIER notes that how the National Policy Statement for Freshwater (NPS-FM) is interpreted and implemented by councils could severely impact vegetable production, resulting in sharp price increases for consumers. He emphasises, “Without prompt adjustments, key crops like broccoli could become significantly more expensive, underscoring the necessity for targeted reforms that support both environmental goals and the affordability of healthy food in New Zealand.”
The report indicates that a 20 per cent reduction in vegetable supply could lead to price increases of at least 20 per cent and potentially as much as 100 per cent. Michelle Sands, the general manager of strategy and policy at HortNZ, asserts that to prevent this situation, the Government must prioritise commercial vegetable growing, as ensuring an adequate supply of healthy vegetables for New Zealanders should be a national priority.
