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New Zealand’s agriculture is a market- and export-oriented sector and domestic prices of agricultural products are aligned with world market prices.
The level of support to agriculture in New Zealand is the lowest among OECD countries, at 1% of farm income, and most of its policy measures are sector-wide, representing general services to agriculture.
- Very few of New Zealand’s pre-1986-88 policies that distorted agricultural production and trade remain today. The level of producer support is currently the lowest across the OECD. Most domestic prices are aligned with the world prices and payments are only provided for animal disease control and relief in the event of large scale climate and natural disasters.
- Almost all sectors have been deregulated following statutory producer organisation and marketing board reforms. All restrictions on who could export dairy products were eliminated by the end of 2010. Zespri, a New Zealand company, is the only company that has automatic default rights to export New Zealand produced kiwifruit to markets other than Australia. Other groups can export in collaboration with Zespri or independently to Australia.
- National frameworks for land and water quality and allocation have been established to enhance the sustainable management of biological and natural resources. Under current policy settings the Emissions Trading Scheme is to be extended in the future to include the agricultural sector. It will extend the price-based mechanism to encourage reduction of agriculture green house gas emissions. Efforts to develop additional market-based approaches to environmental issues offer opportunities to enhance environmentally sustainable development.
New Zealand: OECD Producer Support Estimates (PSE)
Level and composition by support categories, 1986-2010
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