New Zealand’s farming sector is under pressure as critical agricultural innovations remain stuck in regulatory limbo. Farmers are losing access to global technologies, and investor confidence is faltering amid protracted approval delays from the New Zealand Food Safety (NZFS) and the Environmental Protection Authority (EPA).
“That’s at a time New Zealand is absolutely crying out to welcome investors, and we are waving goodbye to them,” said Liz Shackleton, CEO of Animal and Plant Health New Zealand. “It is make-or-break time. Right now, many investors are deciding their futures here. That’s really bad news for farmers and growers.”
Five-Year Approval Delays Undermine Sector Competitiveness
Delays in product approvals by New Zealand Food Safety and the Environmental Protection Authority are drawing increasing concern across the agricultural sector.
Under the Agricultural Compounds and Veterinary Medicines (ACVM) Act and the Hazardous Substances and New Organisms (HSNO) Act, new products—ranging from fertilisers to veterinary medicines—face wait times that significantly exceed global norms, now reaching five years or more.
Investor Confidence Eroding Amid Bureaucratic Hurdles
Shackleton’s warning has already materialised. A major international investor has withdrawn from New Zealand, citing frustrations with prolonged regulatory delays. Others are reportedly reviewing their positions, raising concerns about future flows of foreign capital—at a time when the sector relies on it for access to advanced technologies.
Companies like Corteva and Sipcam are directly affected. Corteva, for example, submitted an application for an agricultural herbicide in 2022 and does not anticipate approval before late 2027.
“Meanwhile, other Asian nations have surpassed New Zealand, establishing stable and predictable regulatory systems with strict adherence to timelines,” wrote Kent Davies of Corteva in a letter to Agriculture Minister Todd McClay. “To the point where a number of other regulatory systems and a number of other countries have already overtaken New Zealand and are now getting access earlier than New Zealand.” Davies noted that while Australia processes applications in about 24 months, New Zealand now takes three to five years.
Industry Calls for Deep Regulatory Overhaul
Calls for systemic reform are intensifying. Sipcam New Zealand chief executive David MacGibbon described the regulatory gridlock as worsening.
“The logjam had just got larger and larger… it’s at the stage where it needs serious surgery,” he said.
A 2023 review by the Ministry for Regulation echoed those concerns, finding that while the regulatory structure protects health and the environment, it fails on speed and operational efficiency. The review outlined 16 key changes, such as adopting international data and improving strategic focus.
Cabinet approved all reforms, projecting a potential $272 million benefit over 20 years. Yet industry leaders remain sceptical about whether change will materialise.
“Ultimately, the test is around if regulators can turn this ship around,” Shackleton noted. “For our members, this is real, and they need to see real change.”
Regulator Response Underway but Timelines Remain Uncertain
The Environmental Protection Authority has launched a new team focused on hazardous substances, reallocating internal resources to create 11 new positions aimed at reducing assessment backlogs.
“We hope to see a material impact on the hazardous substance applications queue in about 12 to 18 months after the new staff are recruited,” said Dr Chris Hill, general manager of hazardous substances and new organisms.
The queue had fallen to 105 by April—its lowest since late 2022. Recruitment hurdles persist, particularly in finding ecotoxicologists, whose expertise remains in short supply worldwide following the pandemic.
Global Innovation Pipeline at Risk Without Swift Reform
David MacGibbon has called for the establishment of a sector leaders’ forum—one of the Ministry’s central recommendations—to serve as a watchdog for implementation progress.
“The global development dollars are held outside of the country. It’s a finite amount… New Zealand is a small market with a smaller return on investment,” he said. “That’s no longer the case. The global view is that we’re now well behind.”