Global food security is an increasing challenge. A growing middle class in developing countries are demanding more protein. By 2050, the world will have another 2.5 billion people to feed, with many wanting more food than now. The Food and Agriculture Organization (FAO) says production needs to increase by 50 to 70% to meet that global demand.

Fortunately, there are opportunities for improvement. Apart from a peak in the early 1970s, the FAO’s Food Price Index shows food costs declined from the early 1960s to 2002. Since then, global food prices have risen twice as fast as inflation. In New Zealand, the increase has been comparatively modest, with food prices increasing only 32% over the past decade.

Extreme weather around the world including droughts and floods, as well as government policies such as biofuel subsidies are affecting cereal production. Huge price swings for wheat, maize, soybeans and rice have disrupted world markets. In 2007 and 2008, 25 countries restricted or banned exports to strengthen supplies for local populations. 

There are also indirect effects from food insecurity. Violent food riots in more than two dozen countries in 2008 and 2011 created political instability. Food price increases in Libya triggered civil unrest and disrupted oil exports. That conflict contributed to global oil price increases, affecting the costs of New Zealand food exports.

With all this going on, the Massey University Riddet Institute’s recent report, A Call to Arms, was welcome reading. It sets out four transformational strategies and four enablers for the agri-food sector to lift its performance.

The report referred to this week’s Stanford University Primary Sector Boot Camp as a means for industry chief executives and senior government officials to collaborate and unlock the changes needed for New Zealand’s agri-food sector.

According to the Coriolis’ 2012 Food & Beverage Information report, New Zealand consumes about half the food it produces. The rest is exported and accounts for 2.5% of global trade in food. Although significant, other similar sized countries export substantially more.

The government has set a target of increasing the country’s exports to 40% of GDP, which includes a near trebling of agri-food exports to about $60 billion by 2025. That means the current compound annual growth rate of 3% will need to rise substantially to 7%.

Transformational actions are required to meet that challenge. Let’s hope our sector leaders can deliver those so more valued exports will improve the country’s economic position.