Andrew Curtis: Benefits huge if water well managed

Andrew Curtis.

There was much in the news last week debating whether new irrigation schemes are necessary in the wake of the dairy downturn.

What the dairy industry certainly doesn't need at the moment is kicking when it's down and what this storm in a teacup has brought to light is a need for Irrigation NZ to better foster relationships and promote understanding of modern irrigation across the board.

Let's start with the facts - in New Zealand water is plentiful. We average 145 million litres per person in New Zealand compared with 82 in Canada, 22 in Australia, nine in the US, two in China and two in the UK. We are water rich but are yet to make the most of this potential.

The issue is harnessing the resource. We need water in the right place at the right time. Water storage projects that in part provide for irrigation development are the solution. The benefits for New Zealand Inc is huge if we better harvest and distribute just a small percentage of our water resource. Currently 98.2 per cent of the water that falls as rain and snow in New Zealand makes it out to sea.

Using only 1.8 per cent of our water for irrigated farms contribute between $2.2 and $3 billion to New Zealand's economy, and more than double this in terms of the benefits to the wider community from adding value to irrigated produce. For example New Zealand wouldn't have a wine industry without irrigation.

Irrigated agriculture underpins many of the provincial economies on the east coast of New Zealand. Sun-parched towns like Hastings, Blenheim, Ashburton, Timaru, Oamaru, Cromwell and Alexandra are now green, vibrant and resilient.

But irrigation is about far more than increasing production; it is also an insurance against drought. Climate modelling suggests droughts will become increasingly common in many parts of the country including some areas that have a limited history of water storage and irrigation such as Northland, the Manawatu and the Bay of Plenty. This puts farming and the viability of local and regional economies at risk.

We were fortunate this year the El Nino weather pattern never really eventuated in the predicted 'hum-dinger' drought. But regardless of drought severity, certainty around water means farmers can confidently plan for the future and are more able to cope with market fluctuation and changing weather patterns.

Another point to be disputed is irrigation makes for high cost production - it is unaffordable in the current commodity downturn. This couldn't be further from the truth. Well-run irrigated dairy farmers have some of the lowest production costs per unit of production around.

Colin Glass chief executive of a number of South Island dairy farms, Dairy Holdings says that cost of production in Canterbury compared to dryland farming in the South Island is generally lower because of the extra grass production and corresponding increased milk solid production that comes from irrigation.

In other words, efficient irrigation systems enable dairy farmers to better withstand a low milk price environment. Dairy Holdings Ltd has been able to expand its South Island dairy operations as a result of enhanced water-use efficiently by way of modern irrigation systems.

Getting through tough times is about producing more from less - increasing production whilst reducing operating costs. Tough times breed attention to detail and innovation. The resulting efficiency gains also create wins for the environment. What people are frequently missing in all the commentary on the dairy downturn is the need to maintain production, not just cut costs. Irrigation does just that it maintains production.

It's also good to remember irrigation in the regions supports far more than just dairy. The reality is that dairy accounts for about 50 percent of the irrigated area in New Zealand, with 25 percent relating to sheep and beef finishing and the remainder going into horticulture, arable and winegrowing. A reliable supply of water is the only way to diversify production.

So what about the environment and water quality? Like the Prime Minister said this week, irrigation can be good for the environment. All the new and proposed schemes address environmental challenges that have arisen over time, including inherited water quality concerns as a result of increased land-use and general population growth in urban centres.

There are a growing number of examples where irrigators have helped to restore environmental legacy issues; Wakakihi stream - Morven Glenavy Ikawai Irrigation, Pahau stream - Amuri Irrigation, Waiareka Creek - North Otago Irrigation Company. Irrigators have also led the way in adopting Audited Environmental Farm Plans. These plans create bottom-lines for farm environmental performance, helping irrigators continuously improve performance and be accountable for their actions.

Where to from here? The benefits for large-scale irrigation schemes are unanimously recognised, overseas irrigation development and water storage projects are employed by governments to create jobs and stimulate business growth.

In New Zealand it's great to have a government that understands and supports irrigation because water storage projects are complex and costly long-term developments, they take 10-15 years to scope, design and build. Projects such as these are generational decisions that require investment in businesses overtime. Studies such as at Opuha have shown that with irrigation comes the next generation of innovative farmers and poor performers exit.

We need to continue to take a long-term view to ensure the best use of our water resources, while maximising the advantages for each regional community and looking after our environment.

- Andrew Curtis is CEO of Irrigation NZ.