Rivals sign agri deal in Feilding
New Zealand and Argentina have agreed to collaborate in an area where they have traditionally competed in an attempt to improve food supply into other countries.
The agreement, signed at the Central District Field Days in Feilding on Thursday by Primary Industries Minister Nathan Guy and Argentina’s Secretary of Agriculture Ricardo Negri, aims to have the two countries working together on agricultural issues.
Guy said both countries had strong agriculture-driven economies, but a recent change in government in Argentina had resulted in partnership opportunities ‘‘warming up considerably’’.
The value of trade between the countries was $221 million, with Argentinian exports of soya bean making up the biggest chunk.
The idea of the two countries having a cooperation may seem odd to many, as they have traditionally competed in markets such as beef and dairy. But both countries had a lot to offer each other, Guy said.
‘‘Agriculture is critical to the economic wellbeing of our countries and we both benefit by working together to address the challenges of climate change.
‘‘We will be working hand-inhand to address climate change and animal methane emissions. Our research institutions are already exploring opportunities for joint research into areas such as methane vaccines.’’
The two countries could also look at new biosecurity technologies, Guy said.
However, making research and development effective relied on it being easily picked up by farmers, he said.
The next step in the agreement was to identify the key areas both sides needed to channel energy into, Guy said.
Negri said there were common interests in growing the value of agricultural products, and addressing the issues associated with being large exporters of food. ‘‘We have different challenges in the next three or five years, but in the long term we have exactly the same challenges in terms of food quality and sustainability.’’
Argentina produced enough food for ten times its population, so having a good relationship with a country like New Zealand, which has good pathways into Asia, was crucial, he said. ‘‘We want to increase New Zealand’s capability to be a logistical hub for high value fresh produce from South America.’’
Negri saw getting New Zealand technology into Argentina, increasing New Zealand’s logistical strength, and working on research and development together as the keys to the agreement.
All of this would help both countries compete in the world market, but could also help to feed a world with an ever-growing population, he said.
The two countries do not have a free trade agreement at the moment, and no negotiations are taking place yet. However, Guy said this agreement could be the start of that discussion.