100% Perception: DCDs and our International Image

Post written by Hannah Griffin


The recent food safety controversies involving Fonterra have highlighted the critically important interdependence between NZ’s exporters and our international brand. Further controversy surrounding DCD traces followed by a botulism scare were linked with river water quality in a wide ranging attack by the UK’s Daily Mail, alleging our ‘100% Pure’ slogan was “pure manure”. Whilst some have claimed the 100% Pure line should be taken with a grain of salt, export bans put in place by unaffected countries demonstrates the serious consequences of mishandled communications.

In the past month, bans and suspensions of Fonterra’s products have variously occurred in Russia, Sri Lanka and most recently Bangladesh. Particularly unsettling is Sri Lanka’s focus on DCD residues and Bangladesh’s related “nitrate in the milk powder” concerns.

Regardless of the (disputed) extent to which DCD residues have been detected, it is absolutely essential that we effectively communicate with our trading partners to avoid our brand being unnecessarily tarnished. Although DCD is non-toxic and presents no food-safety risk, many international markets have little to no tolerance of any level of chemical residue in their food - there is no international standard prescribing an acceptable level of DCD.

But why are we using DCD in the first place? DCD (technically ‘Dicyandiamide’) is one of the most promising technologies available for reducing the environmental impact of agriculture - it is the only product recognised under New Zealand’s National Agriculture Greenhouse Gas Inventory as a mitigation tool. This, and its additional effect of reducing the level of Nitrate leaching into our waterways, makes its usage very compelling, from an environmental perspective.

Approximately half of NZ’s emissions relate to agriculture and of these, 20% are related to livestock emissions from nitrous oxide and a further 6% from Nitrogen-heavy fertilisers. Motu and Landcare Research studies have shown that regulating nutrient run-off in water catchments or GHG emissions will generally lead to improvements in both; this is largely driven by changes in land use but also on-farm management decisions. Other, pre-experimental modelling under the Pastoral 21 programme has suggested it may be technically feasible to enact a 30% reduction in N leaching using current technologies even with a 20% increase in production. This suggests that significant nitrous oxide reductions may also be possible.

But do the economics stack up? Since agriculture is not included in the emissions trading scheme, farmers cannot use DCD to directly benefit from the reduction in CO2-e emissions. Positively though, DCD usage can in some circumstances boost pasture production by 5-10% but most studies suggest that its use will still come at a cost to profitability. DairyNZ work suggests that 20% reductions in leaching may be possible on dairy farms in Canterbury, while maintaining farm profitability.

Technological advances in agriculture represent a huge opportunity to increase the sustainability of our farming systems, without compromising food safety. It is essential that we pre-emptively address the potential concerns of our trade partners so as to enhance, rather than jeopardise our clean, green reputation.

Behind the Brands

Post written by R. Cretney.

Oxfam has just released several pieces of interesting research into food and agriculture. One is a report on sustainable development in the Pacific which highlights the important role of agricultural projects - including providing access to high value international markets (Report available here). The other piece of research has resulted in an in-depth campaign aimed at getting us to think more about where our food comes from and how it's produced.

Behind the Brands

Consumers are increasingly voting with their wallets and choosing to buy products that align with their values. A recent study on organic agriculture found that the industry showed significant growth and is now considered "mainstream" in some centers, despite overall higher prices than conventionally grown food.

Organics Flourish in New Zealand

What does this mean for New Zealand agriculture?

Well, it provides an opportunity and a threat. Some consumers are willing to pay more for higher quality and more ethical produce. Domestically and internationally this could prove a growing selling point for New Zealand products.

The Oxfam campaign shows a growing move to highlight weaknesses or issues with some companies. This begs the question, how would our own companies stand up to such assessment?

Oxfam uses the criteria of 

1. Transparency at a corporate level

1. Women farm workers and small-scale producers in the supply chain

1. Workers on farms in the supply chain

1. Farmers (small scale) growing the commodities

1. Land, both rights and access to land and sustainable use of it

1. Water, both rights and access to water resources and sustainable use of it

1. Climate, both relating to reducing greenhouse gas emissions and helping farmers adapt to climate change.

We might score very well on some of these counts - but others may need further work. One way that this debate is being played out in relation to New Zealand is through the current criticism of Tourism NZ’s 100% pure brand. One man is even taking the country’s advertising slogan to the Advertising Standards Authority to protest at the inaccuracy of the statement.

Recent research, by Woods and Coleman, could not find statistical evidence that New Zealand producers can influence their market power or move towards higher value markets in response to changing commodity prices. However, some NZ producers may be receiving a premium locally for niche sustainability products. Mike Barton from Taupo Beef who participated in AgDialogue has benefited from marketing his beef products as sustainably reared on the shores of Lake Taupo. Such a scheme is similar to the Irish "Origin Green" label mentioned in a previous post here. Farmers engaged in these practices show real potential for protecting and strengthening "Brand NZ".