Facing up to global farming reality

Global food security. ODT Graphic.

In another age, Massey University academic Jacquline Rowarth believes, invading armies would have captured New Zealand's food resources.

The pressure to feed a booming population would have prompted such a violent response. Today, with the world's population predicted to hit eight billion in 2030 and nine billion in 2050, the reaction is more likely to be economic.

Prof Rowarth, Massey University's professor of pastoral agriculture, said food security would dwarf climate change as the world's most pressing issue in the next few decades, and noted New Zealand might have seen the first signs of rich or powerful nations trying to secure future food supplies for their people.

The actions in recent months by parties linked to Dubai and China appear to support her view that food security was a larger issue than has been given credit.

Dubai interests had agreed to fund the purchase of 28 Southland farms through a Maori hapu until the deal collapsed last week, and Chinese interests have reportedly been looking to buy the Crafar family's North Island dairy farm operations.

China has also made large investments in Africa to secure access to resources.

"Food security is the biggest issue we're facing, and people have not got to grips with it yet."

Little was known about the intentions behind the New Zealand purchases, except Dubai interests planned to sign a 99-year supply agreement for meat, milk and fibre from the Southland farms.

However, the Crafar farms offered a large, ready resource of dairy products.

Based at Reporoa, in the Bay of Plenty, the Crafar family has enlarged its original property to 22 farms milking 20,000 cows, carrying 10,000 other stock and with 200 staff, but, weighed down by about $200 million of debt, all have been placed in receivership.

There are plenty of unanswered questions from the deals, such as how would the products be processed, who were the buyers and would it benefit New Zealand?

Unfortunately, answers have been hard to find, with investors remaining inaccessible to media.

The failed Dubai venture appears to have tried to sidestep the Government's controls on foreign ownership, by providing funding for a New Zealand entity, which would technically own the land.

Just who was backing the bid was not determined, but research suggested such investments were made by the Dubai Government, rather than individuals.

There were questions about the deal's authenticity, with the New Zealand agents believing they did not require Overseas Investment Office approval.

However, the office told the Otago Daily Times that, on the information it had, the deal would need its scrutiny.

Agriculture Minister David Carter said it was important not to reject foreign investment outright, but it needed to be controlled.

He said the need for the world to increase food production was at odds with the threat from greenhouse gas emissions, and that was something scientists would have to address.