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Dairying—Use of Palm Kernel for Stock Feed

Thursday 27 August 2009 (advance copy) Hansard source (external site)

Kedgley12. SUE KEDGLEY (Green) Link to this
to the Minister of Agriculture

Does he share the concerns of the New Zealand Grain Council that New Zealand’s use of a million tonnes of palm kernel to feed dairy cows is “aiding and abetting the destruction of the South East Asian jungle habitat”, and the concerns of Federated Farmers that “palm kernel is also threatening the viability of [New Zealand] maize production for stock feed”; if so, what course of action will he take to address these concerns?

GroserHon TIM GROSER (Minister of Trade) Link to this

The Government is extremely concerned about the destruction of rainforests and indigenous forests, whether in Sumatra or in any other place on the planet. The short-term surge in the waste product palm kernel as a consequence of the drought is functionally irrelevant to any long-term solution. The long-term solutions lie in careful diplomacy internationally around illegal logging, sustainable certification procedures, which are—a plethora of them—lacking robustness, and, most interestingly of all, progress on the United Nations Collaborative Programme on Reducing Emissions from Deforestation and Forest Degradation in Developing Countries, which will give developing country economies an alternative stake in their forests.

KedgleySue Kedgley Link to this

Does the Minister agree that New Zealand dairy exports are sold overseas as being clean and green, with cows being fed on grass pastures, and that if consumers realise that our dairy herds are one of the largest consumers—consuming a quarter of the world’s supply last year—of a product that is causing the destruction of the last great rainforest in the world, and that is destroying the habitats of endangered species such as the orang-utan, it will seriously damage the image of New Zealand dairy and other agricultural exports?

GroserHon TIM GROSER Link to this

Ninety-nine percent of the feed of the dairy industry, according to the advice I have received, is still pasture. There was a temporary blip because of the drought. But the one thing of which I can assure the member is that the Government and I absolutely agree that the long-term sustainability branding image of New Zealand needs further work. This is a work in progress.

KedgleySue Kedgley Link to this

Can the Minister confirm that we imported 400,000 tonnes—equivalent to 800 million packs of butter, or 73,000 large elephants—in 2007 before the 2008 drought; and that we continued to import a quarter of a million tonnes in the first 4 months of this year, so that, whatever way we look at it, we are importing huge amounts of a feed that destroys the rainforest and the habitats of endangered species like the orang-utan, poses a biosecurity risk in New Zealand, and hurts Kiwi farmers?

GroserHon TIM GROSER Link to this

I cannot confirm, without further advice, the exact ratio for converting kernel imports into elephant-tonne equivalents, but I can certainly confirm that we are encouraging the industry to continue to move towards greater sustainability, and working on the underlying problems that the member is concerned about, through the proper international processes.

O'ConnorHon Damien O’Connor Link to this

Does the Minister consider that contaminated containers of palm kernel, and the other 600,000 containers that passed through New Zealand ports without any physical inspection over the last year, pose a serious risk to New Zealand biosecurity; if so, how does the sacking of 60 skilled front-line people from his department help reduce that risk?

GroserHon TIM GROSER Link to this

I can confirm that the advice I am receiving is that the Ministry of Agriculture and Forestry’s biosecurity division investigated those imports. There was fumigation, and the situation is fully under control.

KedgleySue Kedgley Link to this

Is the Minister aware of an AgResearch report from May 2006 that concluded that toxin-producing moulds in palm kernel shipments could “affect the health of animals if consumed over extended periods of time, be passed into milk, therefore pose a threat to human health.”, and “even small quantities of leucotoxins present in dairy and meat products could lead to difficulties in exporting primary produce and create an export issue for New Zealand’s dairy industry.”?

GroserHon TIM GROSER Link to this

I am personally not familiar with that particular toxic mould, but I am confident that our scientists are.

KedgleySue Kedgley Link to this

Given consumers’ strong reaction to the news that Cadbury’s was using palm oil in its chocolate, is the Minister concerned that the international reputation of Fonterra, and indeed of New Zealand’s “100% Pure New Zealand” image, could suffer if it is known that our dairy farmers are one of the largest consumers of palm kernel, and consumed a quarter of the world’s palm kernel last year; if not, why not?

GroserHon TIM GROSER Link to this

No, I am not familiar with what goes into Cadbury’s chocolate. But I must congratulate the company on its adoption of fair trade policies recently in respect of its cocoa.

KedgleySue Kedgley Link to this

I seek leave to table a letter from the New Zealand Grains Council, outlining its concerns about the impact of massive palm kernel imports on the grain industry’s viability.

SmithMr SPEAKER Link to this

Leave is sought to table that document. Is there any objection? There is none.

Document, by leave, laid on the Table of the House.

KedgleySue Kedgley Link to this

I seek leave to table an internal report from AgResearch dated May 2006, showing that fungi in palm kernel is harmful to cows, and humans who consume milk products, as well as containing biosecurity risks.

SmithMr SPEAKER Link to this

Leave is sought to table that document. Is there any objection? There is none.

Document, by leave, laid on the Table of the House.

KedgleySue Kedgley Link to this

I seek leave to table a letter from Biosecurity New Zealand to Federated Farmers dated 17 February 2009, showing that palm kernel imports into Bluff contained maize seed that had to be destroyed, which has prompted a review of biosecurity risks from palm kernel.

SmithMr SPEAKER Link to this

Leave is sought to table that document. Is there any objection? There is none.

Document, by leave, laid on the Table of the House.

KedgleySue Kedgley Link to this

I seek leave, finally, to table a second letter from Biosecurity to Federated Farmers dated 14 April 2009, confirming that 106 insect identifications were found in palm kernel, including biosecurity risk organisms.

SmithMr SPEAKER Link to this

Leave is sought to table that document. Is there any objection? There is none.

Document, by leave, laid on the Table of the House.

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