Rather than providing subsidies for individual farms, the New Zealand government looks to provide a framework which enables sustainable economic growth.
Farmers in New Zealand are improving productivity for the long term, making management decisions based on the responsible and efficient delivery of high-quality products to market.
From 1984 to 2007, the agriculture sector’s total productivity increased by an annual compound growth rate of 3.3 percent. Although New Zealand has cut its sheep flock by more than 50 percent to 30.8 million since 1984, it still produces similar volumes of sheep meat through the use of best practice integrated systems from seeds, pasture, genetics, animal health and farm management to food processing.
Although it does not subsidise farmers, New Zealand publicly funds certain areas of research and development with a view to improving agricultural productivity and profitability. New Zealand has two government-funded research organisations, AgResearch and Plant and Food and also partners with industry through the Ministry for Primary Industries administered Primary Growth Partnership.