Greenhouse food growers will be forced out of business, thanks to an out-of-touch Government decision made around the Emissions Trading Scheme (ETS). 'This Government wants to pride itself on the real-world effect of its decisions, yet they are out of touch with this one,' says Vegetables NZ Chair, John Murphy.
'We repeatedly told Cabinet, other Members of Parliament, and government officials that advice saying that a reduction in industrial allocation would have no impact on greenhouse tomato, capsicum, and cucumber growers was wrong.
'Growers' calculations showed that the reduction would add costs of up to $30,000 per hectare, which would be of no benefit to anyone or anything: growers, consumers, or the environment.
'This needless cost increase would be a massive blow for greenhouse growers already dealing with massive energy increases – up to 100%. For consumers, growers going out of business will reduce supply and increase prices. And lastly, for the environment, the increase in airfreighted imported vegetable substitutes will contribute to higher emissions.'
In August this year, Vegetables NZ asked the Government for two things:
- A delay to the industrial allocation baseline change until July 2025 to allow time for gas contracts to expire and for growers to make further efficiency or fuel changes.
- The establishment of a Sustainable Food Systems Fund to reinvest ETS proceeds from greenhouse growers in greenhouse decarbonization that supports fuel transition.
John says greenhouse growers capture CO2 for use in production.
'This fact sets them apart from other process heat users and surely, it gave the Government scope to treat greenhouse food growers differently within the ETS. Instead, the Government seems to have focused on the steel industry, to the detriment of greenhouse food producers.
'If climate change is the key concern being addressed through this policy, the ability for New Zealand to produce food in increasingly challenging conditions should have been considered.
'Agriculture has been removed from the ETS to give that industry time for transition. The same needs to happen for horticulture. All food systems need to be protected and made resilient.'
Source: FreshVegetables.co.nz