Published in the National Business Review of 31 August 2007

A Lincoln University economist's work in the so-called food miles debate has won her the annual Economics Award presented by the NZIER in association with the NBR.

Professor Caroline Saunders and her colleagues have debunked charges that New Zealand's food exports hurt the environment at Lincoln University showing that even after being transporting nearly 20 000 kms, the produce had fewer carbon emissions than if grown in the UK.

Her report said that "food miles is a very simplistic concept, and is misleading as it does not consider total energy use, especially in the production of the product."

She adds, "food miles is a contrivance - it got picked up by some bodies as a way to boost their own products," she says.

Fifty per cent of New Zealand's exports are in food and beverages, and about a third of these go to European Union markets, so "the potential risk is significant."

Comparing CO2 emissions on a life cycle assessment - that is, including production as well as transport - Saunders and her colleagues were able to show that the UK used twice as much energy per tonne of milk solids produced than New Zealand.

The figure for lamb was four times as high in the UK, and New Zealand also rated better for the production of apples and onions.

The argument that food should be sourced as close as possible to where it is consumed is seductive, but often inaccurate, as the Economist has pointed out. "A study of Britain's food system found that nearly half of the food vehicle miles were driven by cars going to and from the shops."

Caroline Saunders first came to New Zealand in 1994 having grown up in Lytham St Anne's near Blackpool and after studying at the University of Wales and getting a PhD from Newcastle University.

"I was a reluctant student, and not well motivated at school, but I discovered that I liked economics, and micro economics became my thing."

She is now well established in New Zealand, the professor of trade and environmental economics at Lincoln University. She is a past president of the Association of Economists, and involved with the Royal Society's social sciences committee.

"I'm ten minutes from work on a life style block. I can do interesting work, and raise sports horses," she says. "I appreciate the work environment here. It's encouraging and people aren't put down all the time, as they so often are in UK academic circles."

As to the award itself, "I was surprised, pleased and honoured."
The agricultural economic research unit began in 1962 under the late Brian Philpott. "We do good applied relevant research, something that will make a difference," Professor Saunders says.

Applied work includes the Lincoln Trade and Economic Model, which models the risks and benefits to New Zealand of various events and possible strategies.

"If there is an expansion of biofuels in the US for example, what effect might that have on the meat and dairy sectors? The model's a series of what ifs, which will inform decision making by New Zealand producers."