Rewarding Sustainable Practices

Delivering validated new knowledge to agribusiness leaders transforming commodity supply chains to premium value chains

Project Details Ngā taipitopito

Project Status:
Completed
Challenge funding:
$2,000,000
Research duration:
August 2019 – June 2022

Collaborators Ngā haumi

Foundation for Arable Research | JD Reid Ltd | Lincoln University | Miraka | Scion | Te Hono | Wageningen University | Wakatū Incorporation

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What are we doing?E aha ana mātou?

New Zealand food producers are under pressure to reduce their impact on fresh water and their greenhouse gas emissions. They also need to maintain their income to support their whānau and their employees, pay their mortgage, and continue making their significant contribution to New Zealand’s economy.

One way to support farmers and growers to meet New Zealand’s environmental goals is to reward sustainable practices.

People all over the world value many things about quality New Zealand food, such as its safety and environmental stewardship, and many customers are willing to pay more for these qualities.

This research will help exporters capture more value for their produce and increase returns to food and fibre producers, rewarding the good practices that created the extra value. This will require a ‘value chain’ of businesses, from farmer to retailer, to collaborate to authentically deliver the attributes valued by overseas customers.

How can the research be used? Ka pēhea e whai take ai te rangahau?

  • Researchers have tested their approach by working alongside four businesses beginning a ’volume to value’ transition, providing new insights into how enterprises can transform their commodity supply chain to a premium value chain.
  • The research team has identified 9 key characteristics that are common to value chains that successfully reward food producers for sustainable choices.
  • ‘Market orientation’ is one key characteristic common to successful value chains. This research has undertaken choice modelling experiments to understand what attributes overseas customers most value for food and fibre products from New Zealand. (Explore the results of the team’s previous choice modelling experiments: sauvignon blanc in Californiayoghurt in Shanghaikiwifruit in Shanghaibeef in California)
  • The research programme is developing a tool for agribusinesses and exporters, that they can use to help identify and introduce critical success factors associated with successful value chains.
  • The programme will deliver this new knowledge to leaders who are transforming New Zealand’s primary sector to distribute significantly more value to producers from consumers than established supply chains.
  • This programme builds on the work of the Integrating Value Chains programme.

Participation & engagement Te hunga i whai wāhi mai

  • The programme is being supervised by an Advisory Board of 20 representatives from major end-users of the research. The board has an oversight role in this project, meeting twice a year to receive reports on the research and to co-design the next stage.
  • An impact broker will assist with stakeholder engagement and co-design of initiatives to amplify impact to businesses, industry bodies and Māori enterprises.

Research team Te hunga i whai wāhi mai

Implementation Lead/Project Manager
Paul Dalziel
Lincoln University
Te Ao Māori Lead
John Reid
University of Canterbury
Science Lead
Peter Tait
Lincoln University
Caroline Saunders
Lincoln Universtiy
Tanira Kingi
Scion
John Saunders
Lincoln University
Tiffany McIntyre
Lincoln University
Meike Guenther
Lincoln University

Tools & resources Ngā utauta me ngā rauemi

Interactive Tool

Consumer Data Portal

The AERU, as part of our Integrating Value Chains and Rewarding Sustainable Practices research (plus research for other funders) has developed online tools to access…
View Interactive Tool
Guidance

International Consumer Preferences: Evidence Finder

This interactive table provides evidence for the range of premiums that New Zealand export customers are willing to pay for attributes such as organic certification.…
View Guidance
Video

The Value Project: How Can Aotearoa New Zealand Generate Greater Returns from Sustainable Production?

New Zealand is great at producing food. And we’re getting better at doing it sustainably. So how can we capture that value and be rewarded…
View Video
Guidance

9 attributes of successful value chains

This graphic A3 poster summarises in plain language the nine attributes of successful value chains for New Zealand SMEs exporting products derived from NZ-grown food…
View Guidance
Guidance

Consumers’ Willingness to Pay for Sustainability and Other Attributes

Evidence gathered by four separate Our Land and Water research programmes has found that food shoppers in New Zealand’s key export markets do value attributes…
View Guidance
Guidance

What is a value chain?

This infographic, produced by Our Land and Water for Angus magazine, shows information from producers moving along the value chain to consumers, and vice versa.
View Guidance

Academic outputs He whakaputanga ngaio

Journal Article

Meat insights: Uruguayan consumers’ mental associations and motives underlying consumption changes

A telephone survey (n = 601) was conducted in Uruguay to explore participants’ mental associations with meat and the underlying reasons changes in the quantity…
View Journal Article
Journal Article

Geography Matters for Small Advanced Economies: Implications for Economic Strategy

New Zealand is a small advanced economy in the South Pacific Ocean. Policy advisors often compare New Zealand’s economic performance with those of other successful…
View Journal Article
Journal Article

Measuring Chinese food consumers’ preferences for sustainability attributes: The case of the Shanghai yoghurt market

This paper reports on the application of a discrete choice experiment survey designed to measure consumer preferences for sustainability attributes in the Shanghai yogurt market.…
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Journal Article

Examining developed versus emerging economy online food and beverage purchase behaviour and predictors: A survey comparison of Indian, Chinese, Indonesian, Japanese and United Kingdom consumers

Consumers are increasingly using online shopping for purchasing food and beverage (F&B) products. A challenge to industry stakeholders is understanding which elements of online digital…
View Journal Article
Journal Article

Wellbeing Economics in Public Policy: A Distinctive Australasian Contribution?

The ‘Wellbeing Budget’ presented to the New Zealand Parliament in 2019 was widely described as a world-first. This article explores the possibility of a distinctive…
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Journal Article

Comparing generational preferences for individual components of sustainability schemes in the Californian wine market

Millennials are the largest demographic segment in the USA and have gained market share of high-frequency wine drinkers while Baby Boomers and Gen-X generations share…
View Journal Article

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