Welcome to our latest issue of Field Notes, a summary of Agribusiness news from across the sector, prepared by the KPMG Agribusiness network.
International updates
EU
The German government has granted €2.6 million (NZ$4.66 million) to develop technology that converts dairy waste into fungi. The collaborative project between the Hamburg University of Technology and food tech startup, Infinite Roots, will upcycle whey, the liquid left over after milk is curled and strained, into a feedstock for mycelium fermentation.
A Luxembourg-based molecular farming startup has received the first regulatory approval in the United States for its genetically engineered peas. Moolec Science’s peas produce iron-rich bovine myoglobin, a heme protein found in mammalian muscle cells that is responsible for the colour and iron content in meat and seafood.
The European Union (EU) and Mercosur officials have resumed talks regarding the EU-Mercosur Trade Agreement despite opposition from several farmer organisations. The agreement could spark renewed farmer protests in Europe, particularly given the ongoing challenges of the Ukraine conflict and the high costs of energy and fertiliser.
United Kingdom
US
The US Department of Agriculture has announced an US$11 million (NZ$18 million) investment to enhance resilience within its dairy sector. The funding will support small to mid-sized dairy businesses in the development, production, marketing, and distribution of dairy products, as well as processing techniques for value-added products.
Farmers in the United States are harvesting the largest soybean and second largest corn crops in history. Dry weather is increasing the pace of this year’s harvests, straining farmer’s grain storage, forcing some to store corn outside rather than in storage bins. The influx of crops and storage constraints are challenging growers to consider selling some crops for less than the cost to produce due to four-year low grain prices.
Australia
The Australian federal government has dedicated AU$95 million (NZ$105 million) in preparation for the highly infectious H5N1 avian influenza. The funding will support biosecurity responses, wild bird surveillance, a national communications plan, as well as protect vulnerable species and habitats. Additionally, it will stockpile pandemic flu vaccines in case of animal-to-human infection.
New Zealand
The Dairy Industry Restructuring (Export Licences Allocation) Amendment Bill passed its first reading in parliament and is now in front of the Primary Production Select Committee. Public submissions are sought on the bill, which will change the allocation of dairy export quotas. Currently based on the proportion of milksolids companies collect from
New Zealand farmers, the bill will change allocation to be based on the company’s export history.
An alternative butter spread has taken out the Supreme Award at the 2024 New Zealand Food Awards. High demand for the Vutter Avo spreadable product, made from pure avocado oil, lead to upscaled production but was done in a way to produce zero waste, reflecting the company's strong commitment to sustainability.
Silver Fern Farms Co-operative have acquired a 12.5% stake in Wool Scour NZ Ltd (WoolWorks) to create new revenue streams for farmers. The investment aims to enhance the sustainability of sheep farming, enabling their farmers to gain more value from their high-quality wool.
Stats NZ’s latest data release shows that overall food prices have increased 1.2% annually, while the price of fruit and vegetables have decreased 8.3%. The fall in the price of fruit and vegetables was impacted by significant decreases in the prices of kūmara, potatoes and onions.
Headlines
No way to meet NZ’s climate target without overseas help – report
14 Oct – Farmers Weekly
According to a report by Motu Economic and Public Policy Research, New Zealand will need to use international deals to achieve its 2030 climate target; otherwise, it will not fulfil its Paris Agreement commitments. Targets set in 2015 demand greater emission reductions than can currently be achieved in New Zealand without intervention.
The report urges immediate action to prevent severe climate and economic consequences, emphasising that New Zealand must both cut domestic emissions and fund international reductions. Countries like Switzerland fund reductions abroad, but New Zealand has yet to close any similar deals despite intentions. The cost of these deals is currently projected to exceed $3 billion, potentially quadrupling if delayed until 2030
UV-C Treatment: Viticulture game changer
17 Oct – Rural News
A new system that uses UV-C light could provide a solution for the viticulture and horticulture industries to treat plant pathogens and diseases without chemicals. Vertex Engineers and Agri Automation have developed the UVEX, which uses a UV-C light system mounted on an autonomous vehicle.
The UVEX offers an alternative to traditional spraying methods by using light treatment that alters the molecular bond of the DNA within diseases such as powdery mildew and botrytis, destroying their ability to reproduce. Field trials already completed in New Zealand in the 2023-24 season support replacing every second spray application with a UVEX treatment, with an estimated cost savings of approximately $500-$550 per hectare.
Grape growers in Australia's largest wine region frozen out of financial help
12 Oct – ABC News
Farmers in Australia's largest wine-grape growing regions have been refused financial aid by the South Australian government, despite enduring frost damage causing over 80% crop losses. The South Australian Department of Primary Industries described the frost as an "unfortunate" business risk and directed growers to seek assistance from insurance providers.
Growers have faced some low-income years so many have not been able to afford preventative measures, like front fans, or crop insurance. Growers are calling on governments for direct support, including zero-interest loans and improved access to the Farm Household Allowance.
Spotlight stories
Food Science Spotlight
Scientists See Hope in Race to Save the Banana
10 Oct - WJS
The global banana industry, which is 99% composed of the Cavendish variety, faces serious threats from two diseases, Tropical Race 4 and Black Sigatoka. This has prompted scientists to urgently develop new, resilient banana varieties. Chiquita Brands International has developed a new disease-resistant banana variety called Yelloway 1, while Australian researchers have created a genetically modified disease-resistant banana.
Producers are trying to avoid a repeat of losing an entire variety of bananas, like the Gros Michels variety which was wiped out by the Tropical Race 1 disease in the 1950s. Despite the progress so far, combining disease resistance with desirable traits remains difficult, and consumer acceptance of GMOs is low.
Labelling Spotlight
Media Release - Kiwifruit continues to climb the ranks in the global fruit bowl
9 Oct - Zespri
Global produce labelling company, Sinclair, and Kiwifruit marketer, Zespri Group Limited (Zespri) have introduced a new compostable fruit label. The label underwent rigorous testing, meeting high environmental standards with certifications globally recognised.
The label is certified compostable by TÜV AUSTRIA, ABA, and DIN CERTCO for both home and industrial composting and breaks down entirely without leaving any harmful residues. The sticker matches the performance of conventional plastic labels, securely adhering to fruits and providing appropriate product information.
Biodiversity Spotlight
Reversing NZ’s biodiversity crisis could save $270b over next 50 years - analysis commissioned by WWF-New Zealand
17 Oct - The New Zealand Herald
A report commissioned by the World Wildlife Fund (WWF) suggests New Zealand could save over $270 billion in the next 50 years by reversing its biodiversity crisis, but would need to increase its current annual investment from $4 billion to $22.5 billion.
The report highlights that more than 4000 native species are at risk of extinction, worsening with climate change.
WWF-New Zealand stresses that protecting nature makes both economic and environmental sense and calls for substantial investment and systemic changes, including business accountability for nature impacts.
Succession Spotlight
Pāmu invites contracts on 4 of its dairy farms
17 Oct - Farmers Weekly
State-owned enterprise Landcorp Farming Limited, trading as Pāmu Farms, is offering contracting opportunities on four of its dairy farms, including herd-owning sharemilking, variable order sharemilking, and contract milking. This initiative aims to create pathways for farm ownership, develop talent, and provide career progression within the sector.
Contracts will commence on 1 June 2025, and Pāmu is targeting high-performing individuals experienced in large-scale, pasture-based dairy farming. The move will also free up capital, focus on core business operations, and improve commercial returns for Pāmu.
Agri Business Agenda 2024
The 2024 KPMG Agribusiness Agenda, titled 'Today’s potential, tomorrow’s possibilities', presents the findings from the annual KPMG Agribusiness Leaders Priority Survey, alongside insights from over 150 food and fibre industry leaders who have contributed their insights and perspectives on the pressing issues facing the sector.
Get in touch
Interested in delving deeper into the latest insights on the agri-food industry? Don't hesitate to get in touch with our team of industry experts.
Contact Tom McEvoy, Head of Agribusiness for an initial conversation; we'd be delighted to hear from you.
Tom McEvoy
Partner, Head of Food & Agribusiness
KPMG in Ireland