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      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

      UK

      • 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.

      US

      • 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.

      International

      The World Bank has announced it has increased its initial fund to tackle food insecurity from US $30 to $45 billion (NZ $48.5 to $72.7 billion). Their food and nutrition insecurity portfolio now spans 90 countries, with a particular focus on Africa. The initiative is expected to benefit 335 million individuals, representing 44% of the malnourished global population; 53% of the people who will benefit from it are women.

      Europe

      • 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.

      New Zealand

      • 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.

      Australia

      • 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.

      Headlines

      alarm_on

      [3 June, Firstpost]

      China enacts first food security law to ensure ‘absolute self-sufficiency’ in staple grains'

      China’s first food security law aiming for complete self-sufficiency came into effect on 1 June. The legislation provides a legal structure to raise food production, including the protection of farmland, germplasm resources, and preventing wastage. The law holds central and provincial governments responsible for integrating food security into their economic and development strategies.

      However, experts argue that the law's language is ambiguous and may not have a substantial effect on China's efforts to increase food production, essentially formalising current methods in legislation without necessarily altering them. Original full article here

      alarm_on

      [31 May, Farmers Weekly]

      Govt challenged as ‘methane mitigation tech sidelined in NZ’

      New Zealand parliamentarians have been challenged on the nation's Agricultural Compounds and Veterinary Medicines (ACVM) regulations. The founder of CH4 Global, which uses red seaweed to mitigate methane emissions, highlighted to a parliamentary select committee that despite producing seaweed in New Zealand, they cannot sell it domestically with claims about its methane reduction capabilities.

      Strict ACVM regulations have deterred both domestic and international interest due to high veterinary medicine standards. New Zealand Food Safety defended the regulations, citing animal welfare, trade, public health, food safety, and biosecurity risks. The government is considering streamlining legislation and possibly exempting certain inhibitor products from registration. Original full article here

      alarm_on

      [4 June, Green Queen]

      Climate Finance Programme for Developing Nations is Funnelling Billions Back to Rich Countries

      A new investigation by news agency Reuters and Big Local News, a Stanford University journalism programme, has suggested that wealthy nations are directing climate funds to developing nations in methods that financially benefit themselves.

      In 2009, US $100 billion (NZ $160 billion) was pledged by developed nations to support low- and middle-income nations to cut emissions and adapt to climate change. The investigation analysed OECD data and found that at least US $18 billion (NZ $29 billion) has been loaned at market interest rates, not the norm for climate and other aid-related loans.

      In addition, another US $11 billion (NZ $18 billion) in loans required recipients to hire or purchase materials from companies in the lending countries. The investigation raises questions around the fairness and transparency of climate finance and whether there should be greater scrutiny on the terms and conditions. Original full article here

      alarm_on

      [30 May, Petfood Industry]

      BioCraft's cultivated mouse meat reaches price parity with premium pet food

      Biotech company BioCraft Pet Nutrition has achieved a significant milestone, offering their customers cultivated mouse meat for dogs and cats at a price on par with premium pet food. The company was able to cut costs by moving away from animal derived materials to grains as well as reviewing their use of growth media.

      As a result, the company has achieved cost parity whilst enhancing the nutritional profile of its mouse meat. The cultivated meat has a sale price of US $2 to US $2.50 per pound (NZ $3.25 – NZ $4.10), matching the cost of premium pet food, which was the main market barrier. BioCraft plans to introduce its cultivated meat in branded pet food by early 2026. Original full article here

      alarm_on

      [4 June, TechEU]

      Aeropowder secures £150K investment for feather-based thermal packaging

      Aeropowder, a West London materials innovation startup, has secured a £150,000 (NZ $310,500) investment from the British Design Fund to launch thermal packaging made from repurposed feathers. It is an eco-friendly alternative to single-use plastics, such as polystyrene, for storing and moving temperature-sensitive goods.

      This patented solution maintains an internal temperature of 2-8°C for over 72 hours, even when external temperatures average 30°C. Aeropowder's other upcoming product developments will include acoustic panels and various building insulation materials. Additionally, the company's second patent is centered on oil absorption materials to aid in environmental spill cleanup without resorting to plastic foams. Original full article here

      Spotlight stories

      alarm_on

      Research Spotlight

      [31 May, Farmers Weekly]

      Multibillion-euro fund opens door for NZ

      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.

      alarm_on

      Animal Welfare Spotlight

      [30 May, AgFunderNews]

      Kipster is second firm in US to commit to in ovo sexing tech to end culling of male chicks

      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.

      alarm_on

      Forestry Spotlight

      [06 June, Rural News]

      Short rotation forestry could lower fossil fuel dependency

      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. 

      alarm_on

      Innovation Spotlight

      [3 June, AgDaily]

      First seedless blackberry developed using CRISPR technology

      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.

      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. 

      Read the report

      Today’s potential, tomorrow’s possibilities.
      Read more

      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
      Tom McEvoy

      Partner

      KPMG in Ireland

      KPMG’s Food & Agribusiness group can help you improve the efficiency and profitability of your business
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