Carbon Footprints,Life Cycle Analysis,Food Miles: Global Trade Trends and Market Issues

Abstract

Growing international concern about the environment is a great threat to New Zealand access into high value markets. In particular the issue of climate change has grown in political importance as illustrated by the application of the Kyoto Protocol and public debate about issues such as 'food miles'. Whilst the paper concentrates upon the impact of the latter debates on United Kingdom and European Union markets, there is growing evidence that consumer concerns are not just an issue for those markets. Other markets are also showing increasing concern. Food miles is a concept which has gained traction with the popular press arguing that the further food travels, the more energy is used, and carbon emissions are greater. But what is the reality behind the political rhetoric? Using a food miles methodology, this paper compares New Zealand production shipped to the UK with a UK source. The study reported here found that, due to the different production systems, even when shipping was accounted for, New Zealand dairy products used half the energy of their UK counterparts, and in the case of lamb, a quarter of the energy. In the case of apples, the New Zealand source was 10 percent more energy efficient. In case of onions, whilst New Zealand used slightly more energy in production, the energy cost of shipping was less than the cost of storage in the UK, making New Zealand onions more energy efficient overall. In light of these findings, it is argued that climate change should be addressed through a trade policy focus on the more comprehensive task of reducing carbon footprints over time, rather than a narrower focus on carbon miles.