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

A new project has been launched across 14 nations in Europe to increase the time spent between newborn dairy calves and their mothers, often referred to as the Cow-Calf Contact (CCC) system. The €3 million initiative aims to ramp up the adoption of the system through establishing a European network addressing farmers' needs and knowledge gaps. It will also use national hubs to test new CCC practises, benefiting calves, cows, and farmers while meeting consumer demand.

A new joint research project between Australia and the United Kingdom could enable agricultural drones to navigate across unlimited distance without GPS. Similar to fingerprint scanners, the new technology scans the changing terrain and matches it to a pre-existing database of the Earth's surface enabling precise and repeatable farming operations, even in environments with poor GPS signals.

French supermarket chain, Carrefour, has announced it will not market meat imported from Mercosur countries (Brazil, Argentina, Paraguay, Uruguay and Bolivia) following protests by farmers against a recent trade deal. The trade agreement would permit an additional 99,000 tonnes of Mercosur beef to enter the European Union tariff free, raising concerns among farmers over the potential impact on domestic production and Mercosur’s ability to meet EU standards and requirements.   

Ukrainian exports of grain, oilseeds, meal, and oil grew by US$1.6 billion in the 2024/2025 July-October season compared to the previous season. Farmers generated significantly higher earnings from exporting wheat, barley, rapeseed, and soybeans. However, corn exports are predicted to decline due to reduced demand from China, prompting exporters to diversify their markets.

The European Union (EU) has launched the "Garden of Europe" campaign to boost the market presence and consumer awareness of European agri-food products. The initiative emphasises the high quality, safety standards, and nutritional benefits of EU products, ensuring consumers receive premium goods. It is currently targeting Greek kiwifruits and Polish apples in Indonesia, India, and other markets to boost exports.

US

The United States Forest Service are proposing to allow increased logging on federal lands across the Pacific Northwest to fight wildfires and boost rural economies. The proposal aims to change the Northwest Forest Plan, increasing timber harvests by at least 33% and allowing the removal of trees up to 120 years old in certain areas to reduce the risk of wildfires.

Elsewhere in the United States, the Food and Drug Administration is recalling various brands of organic carrots due to E. Coli contamination. The Centers for Disease Control and Prevention reported that the contaminated carrots could be the cause of a multi-state E. Coli outbreak, causing 39 illnesses, 15 hospitalisations, and one death in California.

Australia & New Zealand

The culling of 80,000 hens is in progress at an Otago poultry farm to control the highly pathogenic H7N6 avian flu virus outbreak. While aggressive, this avian influenza is not the H5N1 strain that has raised concerns internationally. Investigations are underway at a second poultry farm in Otago, however no links have been found between the two poultry farms yet.

ApiNZ and the Unique Manuka Factor Honey Association will merge to form a new honey industry body. The move comes after ApiNZ recognised that its voluntary membership funding had become financially unsustainable, particularly in light of the industry’s decreasing honey returns to producers. The merger aims to create a united industry with a strong export focus while advocating for bee health and government issues.

Fonterra Co-operative Group Limited’s season-to-date milk collection is nearly 5% ahead of last season's, largely due to favourable weather conditions in the North Island. Collections totalled 512.2 million kilogrammes of milk solids since 1 June this year, representing $3.7 billion in farmgate milk payouts so far.

In Australia, up to 1,500 warehouse workers for supermarket Woolworths are in their second week of 24-hour strikes, resulting in empty shelves in stores. Woolworths confirmed that there was "limited stock flow" in some stores in Victoria, New South Wales, and the Australian Capital Territory. While all stores are still receiving regular deliveries, there is reduced frequency in some cases.

Grower-owned research and development body Hort Innovation has partnered with investment firm Artesian to deliver a AU$60 million fund to support innovation in the horticulture sector. The world-first “Hort Innovation Venture Fund” will target tech solutions to improve the productivity and sustainability of fruit, vegetable and nut growers. The fund aims to attract domestic and international developers ready to commericalise their idea

Headlines

Milk chillers save money, reduce emissions
[Farmers Weekly, 2 December]

A year after launching, nearly 50 farmers have installed new milk chilling technology through a "pay as you save" programme which is a collaboration between milk refrigeration company Coolcare, dairy processor Fonterra Co-operative Group Limited and investment finance providers.

The programme offers a seven-year lease, allowing farmers to stay up to date with current technology. The milk chilling unit utilises fourth-generation refrigerant gases producing approximately 80% less carbon dioxide than older systems, to date the scheme has prevented the use of 5,800 tonnes of carbon equivalent cooling gas.

The technology is also cost-effective, with one farmer saving $972 in electricity costs in just 30 days.

Controversial 'fish milk' touted as a drink option for kids
[New York Post, 25 November]

Indonesia is converting fish protein into milk to address their nation’s shortage of cows and, consequently, milk. Abundant catches of ponyfish are deboned and processed into a fine white, protein-filled powder and then strawberry or chocolate flavour and water are added to produce the ‘milk’.

The fish milk is being considered for Indonesia’s school lunch programmes in 2025, and they hope it could potentially become a US$4.5 billion (NZ$7.6 billion) industry and create 200,000 jobs. Whilst experts have hopes this will create a new industry, they face sceptics including the Indonesian Health Minister who believes there are many other options to combat the milk shortage.

Helen Clark Foundation calls for political action to reduce the prevalence of junk food and improve access to healthy foods to quell New Zealand’s growing obesity rates
[The Helen Clark Foundation, 25 November]

A report released by public policy think tank, The Helen Clark Foundation, is calling for government action to address New Zealand's high obesity rates and their negative health and economic impacts. The report highlights that current policies focusing on personal responsibility are challenging to implement effectively due to food system barriers that hinder healthy choices.

Obesity is costly, not only on the healthcare system, but the report suggests it causes a further $9 billion in lost productivity annually. The report urges the government to adopt policies like those in other countries to increase the accessibility of healthy food for New Zealanders, limit the marketing of unhealthy food to children, and facilitate adoption of new technologies for obesity treatment.

EU-funded project Searcular tackling marine plastics with circular fishing gear program
[Seafood Source, 22 November]

A three-year project is attempting to reduce marine litter and microplastics through a circular fishing gear programme. The Searcular project,funded by the European Union, is a collaboration with fishers, gear manufacturers, and researchers to explore end-of-life solutions for old gear and develop sustainable gear options for the future.

The project focuses on four main areas, the first, reconditioning end-of-life purse-seine nets into tougher, less fray-prone dolly ropes. It is also developing bio-seine ropes with biodegradable polymer coatings to replace traditional steel ropes coated in synthetic fibres.

Additionally, the project is testing eco fish aggregating devices made of biodegradable materials to replace the hard plastic ones discarded by purse-seine tuna-fishing vessels. Finally, it aims to implement circular port-based gear solutions by recycling, sorting, and reconditioning gear at ports to prevent old gear from ending up in landfills.

Spotlight stories

Food Security Collaboration Spotlight:

Instacart partnership seeks to improve food access for expectant mothers
[The Packer, 27 November]

In Michigan, USA, a new initiative through the partnership of delivery company, Instacart, and multi-state healthcare provider, Molina Healthcare, is aiming to address food insecurity for expectant mothers. The aim of the collaboration is to reduce birth outcome disparities and improve equity for underserved populations throughout Michigan.

A study highlighted that pregnant women living more than 1.5 miles (2.4 kilometres) from a supermarket are three times more likely to have a low-birth-weight child. The joint programme offers Instacart+ memberships and grocery stipends to expectant mothers facing food insecurity, enabling online grocery shopping with free delivery, thus enhancing access to healthy food options, convenience, and better nutrition.

Food Waste Spotlight

Good Trash and Silver Fern Farms Partner to Transform Food Waste into Culinary Innovation
[Newswire, 13 November]

A new circular menu concept, Good Bites, has been developed to address food waste and demonstrate alternative uses for food industry by-products. The initiative, a collaboration between Silver Fern Farms Limited and Good Trash, seeks to upcycle waste meat trimmings into profitable, sustainable menu items reducing the environmental footprint.

The initiative has shown how innovative partnerships can address environmental challenges while highlighting new revenue streams and sustainable practices in the food industry. Food waste accounts for up to 10% of global emissions, exceeding the impact of the aviation industry.

The concept was launched at a reception previewing Silver Fern Farms' new product range ahead of their seventh consecutive appearance at the China International Import Expo in Shanghai.

Seaweed Farming Spotlight

Seaweed farming: Hauraki Gulf pilot programme paves way for potential aquaculture industry
[RNZ, 23 November]

The Greenwave Aotearoa project has successfully completed its three-year pilot programme, testing native seaweed cultivation in the Hauraki Gulf. The initiative, co-funded by the Ministry for Primary Industries, focused on exploring native seaweed cultivation methods to develop a new aquaculture industry.

The pilot successfully demonstrated the feasibility of seaweed aquaculture in New Zealand, even adding Gigartina atropurpurea (red seaweed) to the pilot in the final year. Despite facing challenges with marine pests, supply chain issues, various environmental and biophysical conditions, the pilot proved that the native seaweed, Ecklonia radiata (Brown Kelp) can be farmed in the Hauraki Gulf, especially in multitrophic areas alongside mussels.

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. 

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