Green Party co-leader and Minister for Climate Change James Shaw speaks at the Southland Federated Farmers annual meeting in Invercargill.

Reducing agricultural emissions shouldn't be seen as a "sunk cost", but an investment in future value, Green Party co-leader James Shaw says.

Shaw, who is the Minister for Climate Change, was in Invercargill for the Southland Federated Farmers annual meeting on Friday to talk about climate change. He claimed to be a big believer in the agricultural industry's vision to produce high quality food for the world, and said dealing with climate change was quickly becoming a part of the consumer demand as they became more invested in where their food was coming from.

"I think that there has been some incredible work going on in the agricultural sector and in farming over time but especially in the last few years."

While there were those who would say imposing extra costs on themselves to become environmentally sustainable was pointless, Shaw argued it would be a source of "incredible" economic value if farmers saw it more as an investment.

READ MORE: Baird reaches end of term as Federated Farmers president

Shaw's belief that reducing emissions would be an investment, rather than a cost, were solidified in him after a United Nations Climate Change Conference in Bonn, Germany. He said at least five delegates from different nations had approached him to ask what New Zealand was doing to reduce its agricultural emissions.

"They're looking to us for leadership and for guidance."

New Zealand could be the one to provide the technology, science, methodologies, products and services to the world, he said. Being at the forefront could give New Zealand its competitive advantage, he said.

There had been a lot of focus on agriculture's role in emissions, but the industry was not alone in solving this problem. Shaw said the Government was trying to be very mindful that everyone had a role to play in reducing emissions.

"Every country in the world has got to go through this transformation. It's major in New Zealand, but it's major everywhere."

While the country's methane emissions have only increased five per cent since 1998, transport emissions have gone up 78 per cent, he said. "So stop buying Hiluxs, buy electric," he joked.

Shaw's three biggest focuses in the coming year are the Zero Carbon Act, changes to the Emissions Trading Scheme and the formation of the Interim Climate Committee.

"The whole point of the Emissions Trading Scheme is to have our emissions down and in the 10 years we've had it they've gone up."

Shaw hoped to introduce changes to the scheme before Christmas, while the climate committee worked on the circumstances that the agricultural industry would have to meet if it were to join the scheme.

BRITTANY PICKETT/STUFF Newly elected Southland Federated Farmers president Geoffrey Young.

Elsewhere at the meeting, Southland Federated Farmers president Allan Baird stood down after three years in the role.

Northern Southland high country sheep and beef farmer Geoffrey Young was voted into the position with no contest, as well as retaining his high country representative position. Meat and wool chairwoman Bernadette Hunt will assume the position of senior vice president, while arable chairman Chris Dillon will take over as junior vice president.

A born and bred Southlander, Young was raised in western Southland as the fourth generation on a farm near Tuatapere. Looking for a change he moved to Cattle Flat Station in 1993, and has been there ever since.

"I have enjoyed the challenge immensely. I've farmed most of my life and I still have a huge passion. I've grown up with the notion farming is is the most honourable profession in the world."

Young said he hoped to defend farmers' rights, as well as working collaboratively with other groups towards mutually beneficial compromise.

Executive member David Rose was made a life member of the Southland branch, after joining as a young farmer representative in the 1980s.