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1. Genetic crops will cost NZ billions says ministry
2. New report shows NZ farmers swinging behind organics
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1. Genetic crops will cost NZ billions says ministry
The Dominion (Wellington) August 21, 2001
LANGDON Christine

A SHIFT toward genetic engineering could be costly to the New Zealand economy, Government advisers have warned. Backing up what organic growers have long said, an Environment Ministry report says New Zealand's organics industry would suffer if the Government allowed either limited field tests or uncontrolled releases of genetically modified crops.

The report set out to put a dollar value on New Zealand's "clean, green image" and returned the verdict that it could be worth billions. The ministry assessed how New Zealand's image affected the choices made by foreigners who bought dairy products and organics, and how it influenced potential tourists.

The Government is weighing up controversial recommendations from the Royal Commission on Genetic Engineering, which suggested New Zealand proceed with caution with genetic modification trials. The Environment Ministry report says even limited field trials could eventually cause overseas organics buyers to look elsewhere, and a policy of uncontrolled release would see New Zealand almost certainly suffer immediate losses, with buyers either stopping or substantially decreasing purchases.

Environment Minister Marian Hobbs played down the findings, saying organics was a small industry in terms of export value. A cost could not be put on the impact of genetic modification without knowing what controls New Zealand would put on the technology, she said. But Green Party co-leader Jeanette Fitzsimons said the report should add weight to opposition to the commission findings. "Every organic grower that came to the royal commission told them that they would lose their market if we allowed the release of GE crops," Ms Fitzsimons said.

The Environment Ministry based its report on consumer surveys conducted early this year. It found that New Zealand's environmental image was a key driver of the value of New Zealand goods and services internationally. "We could lose an edge in many of the prime markets where consumers are careful about what they eat," it says.

When dairy consumers in Kuala Lumpur, Malaysia, were shown pictures of a clean, green New Zealand and another of New Zealand with a degraded environment, they indicated they would buy 54 per cent less if New Zealand's image changed. The report estimates annual potential losses at between $ 241 million and $ 569 million. When potential tourists were shown similar images, Australians said they would reduce New Zealand stays by 48 per cent, Japanese by 79 per cent and Koreans by 77 per cent. The annual losses to New Zealand from five key tourism markets were estimated at between $ 530 million and $ 938 million. The report puts no cost estimates on the impact of genetic engineering on organics sales.

Though the surveys covered only dairy products, organic food and tourism, a tarnished New Zealand image would extend to other sectors, the report says. "Our clean, green image is likely to be worth hundreds of millions, and possibly billions of dollars per year," it says. The report raises concerns about deteriorating air quality in Auckland and Wellington, erosion, degraded freshwater quality from agricultural land use, and deteriorating estuaries and harbours near towns and cities. Ms Hobbs said the Environment Ministry was working on national standards to maintain and improve air and water quality, but the report was a wake-up call to all New Zealanders about the importance of maintaining New Zealand's green image.

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2. New report shows farmers swinging behind organics
23 August 2001
attention Environment / Rural Reporter

Green Party MP and organic farmer Ian Ewen-Street today welcomed a new report which shows that nearly 40 per cent of New Zealand farmers intend to be farming organically in five to 10 years time.

The report 'Environmental Beliefs and Farm Practices of New Zealand Organic, Conventional and GE Intending Farmers' was published by the Agribusiness and Economics Research Unit of Lincoln University and released today.

The report shows that currently 10 per cent of farmers describe themselves as organic, 73 per cent as conventional and 17 per cent as intending to pursue genetic engineering.

In five to 10 years time the figures show that the number of farmers wishing to farm organically will jump 27 per cent to 37 per cent, the number who intend to continue conventional farming will drop to 46 per cent and the number wishing to use genetic engineering will stay static at 17 per cent.

"I welcome this report because it shows what I have been saying for some time - that more and more farmers are realising the huge opportunity of organics and are looking to switch," said Mr Ewen-Street.

"It also shows that apart from a small and static group, farmers are rejecting genetic engineering and that those who intend to use it are typically dairy farmers and those with the highest farm incomes."

Mr Ewen-Street said the report was significant as it painted a clear picture of how farmers were viewing their future, and added to earlier AFFCO research which showed that 70 per cent of farmers believe the future of farming lies with organics.

"More than ever farmers are realising the huge market advantages of organic production and our clean, green, GE-free image," said Mr Ewen-Street.

"It is crucial that we protect this advantage and our outstanding international reputation."

Mr Ewen-Street said it was disappointing that despite clear trends among farmers towards organics and away from genetic engineering, the likes of Federated Farmers appeared to be more interested in representing the views of a minority who wished to pursue genetic engineering.

"Like the people of New Zealand, farmers know that they cannot have it both ways. We cannot have genetically engineered and organic agriculture co-existing. We cannot have genetic engineering and keep our clean, green,natural image."

Ian Ewen-Street: 025 902 527
Jonathan Hill (press secretary): 04 470 6719, 021 440 090