A recent report titled “Tasting the Future” highlights the need for New Zealand’s protein sector to adapt to China’s rapidly changing environmental policies in food production.
The report underscores China’s shift towards implementing four key policy priorities: reducing the environmental footprint of agriculture, mitigating the climate impacts of agriculture, reducing food packaging, and minimising food waste.
John McKinnon, Chair of the New Zealand China Council, notes that these policies are part of the Chinese government’s growing focus on environmental protection and climate change. This shift is expected to fundamentally transform China’s domestic protein market at the producer level, with major Chinese protein companies already committing to voluntary net-zero targets in anticipation of government directives.
McKinnon points out that while food security remains China’s top agri-food priority, sustainable production practices that align with this goal are likely to lead to rapid changes in Chinese protein production and consumer preferences.
He stresses that New Zealand producers, traditionally known for their ‘clean green’ high-quality protein, must refine their value proposition to maintain market share in light of China’s increasing focus on sustainability.
The report identifies China’s policies on reducing food packaging and waste as the most immediate factors likely to impact New Zealand producers. McKinnon highlights the complexity and rapid evolution of regulations related to packaging recyclability, food safety, and waste reduction. He advises New Zealand exporters to develop products and packaging that align with China’s efforts to minimise spoilage and waste.
While China’s emphasis on food security is not expected to immediately impact New Zealand’s protein export market, McKinnon warns of growing competition. This competition arises not only from global producers but also from local Chinese companies, which have improved in quality due to significant domestic investment.
He emphasises the need for New Zealand producers to understand the long-term drivers of China’s agri-food system, which is expected to undergo significant changes in the next decade.
The report also explores the potential of China’s alternative and novel protein sector, including plant-based meat and dairy substitutes, and products developed through microbial fermentation and other emerging processes.
Cleo Gilmour, Chair of the Council’s Sustainable Food Working Group, notes that while traditional proteins will remain dominant in China for the foreseeable future, there are opportunities for New Zealand exporters and producers in the alternative protein sector.
She points out that regulatory concerns about food safety may limit the introduction of new technologies, but areas aligning with government priorities could scale up rapidly.
Gilmour highlights New Zealand’s strengths in developing world-leading food technologies and innovation, emphasising the importance of understanding China’s policy goals to capitalise on investment and collaboration opportunities in this evolving market.
