Agri-Food Field Notes June 2024

• In Europe, the European Union Commission plans to incorporate simplification and flexibility into the new Common Agricultural Policy (CAP). The reformed CAP aims to reward farmers for additional work regarding climate and environment objectives. It is anticipated to come into force in 2028 and will maintain a focus on achieving climate neutrality by 2050.
• ADM and Bayer are expanding their jointly delivered regenerative agriculture programme in Europe after successful trials that reduced carbon emissions on farms by 15%. The programme initially tested on oilseed rape farms in Poland included reducing tillage, planting cover crops, and adopting organic and bio-based inputs. The programme is looking to extend to more oilseed rape farms as well as additional crops in Eastern Europe, with the aim of reducing greenhouse gas emissions by up to 40% and improve soil quality and biodiversity.

• The United Kingdom’s three main political parties have pledged to support farmers if elected in the upcoming election. The Liberal Democrats and the Conservatives have pledged to increase the UK agriculture budget by £1 billion (NZ $ 2.07 billion), whilst Labour has promised to introduce a legally binding target to increase food security. All three parties have also agreed to support farmers by increasing the public sector’s sourcing from British farms.
• Meanwhile, new legislation in Wales will require farmers to screen their herds for bovine viral diarrhoea (BVD) annually and isolate infected animals. The BVD Order 2024 was developed by the cattle sector and Welsh government to eradicate BVD, improve animal health and welfare, advance net zero targets, and reduce the sector’s carbon footprint.

• In the United States, a third human case of H5N1 avian influenza has been reported, but health authorities say that the risk to humans remains low. The virus has now been detected in 68 dairy herds in nine states.

• In Australia, hundreds of trucks and farm vehicles protested in Perth, in response to the federal government's announced ban on live sheep exports by 2028. Western Australia accounts for nearly all of Australia’s live sheep exports, valued at AU $85.2 million (NZ $91.6 million).
• The state of South Australia has recorded one of its driest starts to the year impacting farmers confidence. According to Rabobank’s latest farmer survey, confidence has decreased significantly from 19% in Quarter one 2024, to -34% in Quarter two 2024. Whilst most of the state’s winter crop has been planted with little rain to begin germination, the department remains hopeful that the state will still produce close to the 10-year average of 8.5 million tonnes if the forecasted late season rain arrives.

• The Ministry for Primary Industries' latest report (SOPI) forecasts a 5% decline in food and fibre export revenue to $54.6 billion for the year ending June 2024. Dairy revenue is expected to fall 7% to NZ $24.2 billion, while arable export revenue is predicted to increase by 12% to NZ $310 million.
• From July 2024, agriculture will be excluded from the Emissions Trading Scheme, and He Waka Eke Noa will be disbanded later in the year. The government will work with levy bodies and industry organizations to create a Pastoral Sector Group to help farmers reduce emissions without compromising production or exports.
• New Zealand’s major fertilizer co-operatives, Ballance Agri-Nutrients Limited and Ravensdown Limited, have reduced urea prices by NZ $100/mt due to decreased global demand and increased supply.
• Gallagher Holdings Limited and Barenbrug New Zealand have acquired Farmote Systems' assets, forming Farmote Technologies. The new venture will integrate Farmote's pasture monitoring system into their product offerings, including eShepherd virtual fencing and the new Auto Weigher.

Multibillion-euro fund opens door for NZ
[31 May, Farmers Weekly]

Lincoln Agritech is the first New Zealand research organisation to successfully access the Horizon Europe research funding programme, an almost €9 billion (NZ $15.6 billion) fund that opens Europe’s resources and researchers to companies keen to collaborate.

Horizon Europe has six funding clusters, with the €8.9 billion (NZ $15.6 billion) fund dedicated to research in the areas of food, bioeconomy, natural resources, and agriculture-environment. Lincoln Agritech’s project is in developing digital technology to support plant health early detection, specialising in apple pest monitoring.

New Zealand's reputation for high-quality biosecurity systems was identified as unique and appealing to European partners, the southern hemisphere opposite seasons also adds appeal. To date, there have been 61 submissions involving New Zealand partners submitted to the Horizon Europe fund, and out of the 23 decisions made so far, seven have been successful, including Lincoln Agritech’s.

Kipster is second firm in US to commit to in ovo sexing tech to end culling of male chicks
[30 May, AgFunderNews]

Dutch egg producer, Kipster, which sells its certified humane and carbon neutral eggs into the United States (US), has become the second company in the US to pledge to implementing in-ovo sexing technology as an alternative to culling male chicks.

Currently in the US, when eggs hatch after 21 days, trained individuals are hired to determine their sex. In the US, male chicks have no value to the food industry, due to a lack of demand for their meat and their inability to lay eggs and are therefore culled.

The in-ovo sexing technology determines the sex of chicks prior to hatching, Kipster will use allantoic sampling, which involves extracting a small amount of liquid from eggs around day nine of incubation and testing for biomarkers to identify the sex of an egg.

Short rotation forestry could lower fossil fuel dependency
[06 June, Rural News]

A two-year research project by Scion has highlighted the potential for regional New Zealand to implement short rotation forestry (SRF) for bioenergy production. SRF is a forestry practice that involves growing and harvesting trees on a short rotation cycle, between 12 – 18 years to produce wood biomass, as opposed to the traditional 28 year-harvesting cycle.

Scion's modelling suggests that SRF could replace 6% of New Zealand's annual fossil fuel demand using less than 1% of the land area. The research suggests that SRF can diversify regional economies, aid sustainable land management, and contribute to environmental benefits, as New Zealand aims to achieve net-zero emissions by 2050.

The key project outcome is a 'how-to' guide for SRF targeting landowners, forest investors, and government agencies, and recommends establishing SRF on lower value land in specific regions. 

First seedless blackberry developed using CRISPR technology
[3 June, AgDaily]

American company Pairwise has developed a gene-edited seedless blackberry using CRISPR applications. Pairwise’s research shows that over 30% of berry consumers dislike seeds, indicating a strong consumer preference for seedless varieties. In addition to being seedless, Pairwise has engineered high-density compact and thornless traits in the berries, aiming to reduce waste and improve harvest efficiency for a more sustainable food system.

The innovations have been achieved without compromising flavour or quality. The company plans to conduct outdoor field trials and eventually make the berries available to the public in the coming years.