12. Question No. 12—AgricultureHon DAVID BENNETT (National—Hamilton East) to the Minister of AgricultureQuestion No. 12—Agriculture12. Hon DAVID BENNETT (National—Hamilton East) to the Minister of Agriculture: What proportion of the $44 billion increase in primary sector export earnings over the next 10 years detailed in the Government's Fit for a Better World roadmap would be generated from the dairy sector?Hon DAMIEN O'CONNOR (Minister of Agriculture): Over the next 10 years the dairy sector is expected to generate $4 billion of the total $444 billion targeted by the Government's Fit for a Better World. The $44 billion is a target indeed not a limit. Hon David Bennett: Will the Fit for a Better World economic road map's requirement of a 24 to 47 percent reduction in biogenic methane emissions over the next 10 years have a negative impact on the proportion of export earnings the dairy industry could provide? Hon DAMIEN O'CONNOR: No not necessarily at all. We project that there are huge opportunities to grow the value. As I say the $44 billion is a target not a limit and I believe that we'll actually surpass that quite easily. I think the value we'll get in the market place from being committed to reduce our emissions from agriculture will give us the kind of lift that we see through market research at the moment where we see huge premiums for products that are firstly organic and then secondly that have been labelled at this point regenerative—it's a term that New Zealand has yet to define but that is connecting with the commitment to better animal welfare to reduced emissions and to better systems of production that consumers are prepared to pay for. Hon David Bennett: If it is No" then how can the Minister say the effect will be "No" when Dairy New Zealand estimates that the 24 to 47 percent reduction in emissions will have a cost to the dairy industry of between $5 billion to $12 billion? Hon DAMIEN O'CONNOR: I respect the work that Dairy New Zealand do and they have estimated that. I refer back to I guess the 1980s when in fact we had 70 million sheep. We now have half that number but we produce the same amount of sheep meat. The ability and the potential for New Zealand farmers in agribusiness to innovate and to achieve the targets and the ambitions is unlimited in my view and this target that we're setting or that the Climate Change Commission will set will take on board all the realities of the effect on local communities and the effect on the industries to achieve all the ambitions that we have of a low-emissions economy but a higher-returning agribusiness sector. Kiritapu Allan: How is the Government supporting innovation in the dairy sector whether that be to achieve climate change targets or otherwise and across the broader food and fibre sector to achieve the forecasted $44 billion increase in export earnings as set out in the Fit for a Better World road map? Hon DAMIEN O'CONNOR: The three documents that we have produced—that is the plan making up Fit for a Better World—have a number of core advisory areas. Research and education for our purposes is one our precious water—ensuring that—and of course seeking market game-changers. We have now a Sustainable Food & Fibre Futures fund that we've committed another $84 million to which is available to anyone in the agribusiness sector with an innovative idea to add value to the production from this country. Hon David Bennett: When the Minister talked about organics and regenerative agriculture as leading to that increase in the dairy industry what evidence has he used to quantify those amounts? Hon DAMIEN O'CONNOR: Those are just a couple of the opportunities. Through innovation through better pastures species and through better productivity rates there are a whole range of things that are happening. Last week with my colleague the Hon Phil Twyford we launched the agritechs strategy. The opportunities there are huge and I think that that member over there shouldn't discredit his own sector that he represents by lowering the ambitions. I think we have incredible potential and those two things I mentioned are just a couple of the opportunities available to us. Kieran McAnulty: What role will agricultural training play in meeting the Government's goal of a $44 billion increase in primary sector export earnings? Hon DAMIEN O'CONNOR: As I mentioned briefly before research and education are a core part of achieving the goals. We have been faced with a sector that has not had the proper training facilities in place. Through the good work and the support of that member in particular we have now got Taratahi back up and running we have Telford back up and running and we have some decent training opportunities now in the agribusiness sector. I thank the members on this side of the House for that support. I seek leave to table a couple of documents. SPEAKER: Well what are they? Hon DAMIEN O'CONNOR: Three of them are documents: Fit for a Better World Te Taiao—SPEAKER: No. Hon DAMIEN O'CONNOR: —and one other that that member may not have had. SPEAKER: Order! Order! Are they publicly available? Hon DAMIEN O'CONNOR: They are."