Disruption to the production of fresh vegetables threatens both affordability and availability

24 March 2025

A recent Horizons Research poll identified rising food prices as one of the most pressing concerns for New Zealanders.

Fresh vegetables are a major part of household grocery bills, and any disruption to production threatens both affordability and availability.

New Zealand’s vegetable growers are increasingly worried about the impact of regulatory constraints on their ability to continue supplying the market.

The horticulture sector is committed to putting quality, affordable vegetables on Kiwis’ tables.

Over 80 per cent of vegetables grown here are consumed domestically. That supply is critical because New Zealand cannot import fresh vegetables at the reasonable prices we have now.

However, our country’s commercial vegetable production (CVP) has unique characteristics. Climate, soil, and topography mean only a limited number of regions can supply the entire country. Current regulations impacting vegetable growing are creating risks for both supply and pricing.

To address this, Horticulture New Zealand has been advocating for the Government to make vegetable growing a permitted activity -- either through the Resource Management Act (RMA) or as a National Environmental Standard (NES).

It was a National Party election policy to deliver this within a year of taking office. NZ First’s Shane Jones has also stated he is seeking practical solutions for vegetable growers.

Now, the sector needs to see words become action. The issue is currently before Cabinet as part of Resource Management Act reforms.

This is a once-in-a-generation opportunity for the Government to get this right for both growers and consumers.

The root of the problem is how councils are interpreting and applying the National Policy Statement for Freshwater (NPS-FM) to regulations. Unintended consequences of these interpretations could severely restrict vegetable production, causing prices to rise sharply.

Last year, HortNZ commissioned a report from the New Zealand Institute of Economic Research (NZIER) to examine the regulatory framework needed for commercial vegetable production to thrive.

As part of the research, NZIER principal economist Chris Nixon analysed broccoli prices over the past 10 years. He calculated that if vegetable production had been restricted by just 20 per cent over that period, the price of broccoli could have soared as high as $27 a kilo, or around $9 a head.

The findings reinforced that the approach under the current NPS-FM does not work for CVP in New Zealand because it doesn’t help councils reconcile how they should provide for nationally important activities within environmental limits.

To ensure continued supply and affordability, vegetable production must be prioritised. The NPS-FM can largely remain in place, but it must provide clearer direction on human health priorities, including vegetable production, to ensure councils apply consistent public-good priorities.

Legislation should allow both existing and new vegetable production as a permitted activity within a freshwater farm plan -- vegetable farming should not require a consent.

Where bottom lines are difficult to achieve through freshwater limits alone, councils should adopt an action plan approach that would operate in addition to freshwater limits to achieve freshwater improvements over time.

The Good Agricultural Practice Environment Management System Add-on (GAP EMS) is the industry freshwater farm planning system which audits and certifies vegetable growers.

Recent proposed changes to the RMA provide for the recognition of industry assurance systems such as NZGAP.

Because vegetable growers have been very proactive at operating under the NZGAP EMS voluntary industry scheme, they are very well placed to demonstrate that they can operate as a permitted activity and provide sufficient confidence that their environmental effects are managed.

Vegetable growers need certainty so they can plan for the future. Right now, they are left wondering whether regulations will even allow them to continue growing vegetables.

The Government has an opportunity to act now and provide a solution that ensures an ongoing supply of affordable fresh vegetables, which is so vital to the health of New Zealanders.

 

Opinion editorial: Michelle Sands, General Manager Strategy and Policy, HortNZ