Field Notes - issue 561

[10 June 2021]

With just one week until the launch of this years’ KPMG Agribusiness Agenda, we are looking forward to sharing the insights and foresight gained from our research and conversations with experts from across New Zealand and the world.

This years’ Agenda is one of the largest ever, exploring the State of the Nation and key themes here in New Zealand, In-depth Consumer market insights, and the future of food for the New Zealand and the world.

Following the official Fieldays launch on the 16^th June, you will find the 2021 Agribusiness Agenda available through next week’s Field Notes email (17^th June).

This week, read Ian Proudfoot’s recent article ‘Unlocking the Oceans’ potential’, published internationally and exploring some of the opportunities of the sea.

You can access the full article here.

To read previous editions of Field Notes please click here.

Global food prices rise at rapid pace in May [04 June]

Following a series of price increases, global food prices have risen again in May, growing at the highest monthly rate in over a decade. Prices increased 4.8% from April to May 2021, and were 39.7% higher than May 2020. Sugar price, Meat price and Dairy price increased 6.8%, 2.2% and 1.8% respectively from April to May 2021.

Tag: International, Food Security

Drugs, biofuel and handbags: meat byproducts are big business [07 June, Stuff NZ]

Statistics from the Meat Industry Association of New Zealand show that 17% of the meat industries exports by value were byproducts such as tallow, collagen and blood. The combined export value of these products reached $1.6 billion last year, and Alliance Group alone produced 450 specialty ingredients and materials for export.

Tag: Red Meat, Food Innovation

Cyberattack on world’s biggest meat supplier [02 June, Washington Post]

The world’s largest meat supplier was the victim of a significant cyber attack which shut down both United States, Canadian and Australian operations. The ransomware attack is believed to have originated from a criminal group in Russia, where criminal group ‘DarkSide’ have extracted USD$46 million in ransom payments in 2021 including a recent USD$4.4m from Colonial Pipeline.

Tag: International, Food Security, Red Meat

Brazil's Amazon deforestation levels jump 41% to record levels for May [05 June, One News]

According to new satellite images, the area of the Amazon deforested in May has increased 41% on the previous year, with a loss of 1,180 square kilometres in the single month. This is particularly concerning as May marks just the beginning of the dry season, during which deforestation rates usually peak. Brazils President Jair Bolsonaro and officials including the Government’s environment minister are facing scrutiny for the deforestation, and are also under an investigation of illegal timber cutting and export activities.

Tag: International, Environment & Emissions

Millions of tiny apples wing their way to export markets [08 June, Stuff NZ]

Rockit Global is expecting to quadruple its number of export trays from 100 million this year, to 400 million by 2025. With the recent 21,000 metre pack house, cool store and global office set-up, Rockit plans to be able to pack up to 500,000 tubes of its 100g miniature  apples per day. The apples are grown in Australia, United states and several countries in Europe, though the largest plantation is in New Zealand with 500ha planted, and another 400ha expected across the next two years.

Tag: Horticulture, Trade & Exports

Red meat sector exports steady in April but strained by supply chain issues [4 June, NZ Herald]

According to the Meat Industry Association (MIA), New Zealand red meat exports remained steady in April 2021 with NZ$863 million worth of meat and co-products exported globally. Despite meat exports being steady compared to a year ago, current issues regarding supply chain disruptions have been raised with the Government. MIA chief executive Simra Karapeeva said, “we are seeing healthy signs that trade is returning to more regular pre-Covid-19 patterns alongside the ongoing strong demand from China as African Swine Fever drives a growing demand for protein such as beef and lamb.”

Tag: Red Meat, Trade & Exports

Teaming up to stop and fight melanoma [3 June, Rural News Group]

FMG has announced a partnership with Melanoma New Zealand to help prevent avoidable suffering and deaths caused by skin cancer. FMG’s chief client officer Andrea Brunner said “our farmers and growers are among the most at risk of melanoma in the world due to New Zealand’s UV radiation intensity”. Increasing the awareness in New Zealand’s rural communities of how to protect your skin when outdoors, and the importance of having regular skin checks will save lives, says Melanoma New Zealand chief executive Andrea Newland.

Tag: Rural Communities, Farmers & Producers

Growers to vote on kiwifruit China trial [2 June, Farmers Weekly]

Kiwifruit growers have until 15 June 2021 to vote whether they are in support of conducting a one-season trial in the Chinese Sichuan Province and monitoring the growing, procurement and marketing of 200,000 trays of fruit. Currently, the fruit in China is grown from Zespri-bred vines planted without authorisation after they were illegally imported from New Zealand. This is Zespri’s second attempt to get the trial programme over the line after Kiwifruit NZ turned down Zespri’s initial application due to the large risk of fruit quality, food safety and brand reputation to NZ growers.

Tag: Horticulture, International

Sheep levy increase proposed [3 June, Farmers Weekly]

Under proposed new Beef + Lamb NZ levies, sheep farmers will be asked to pay an extra 5 cents a head (an increase from 70c to 75c) from 1 October 2021 while the beef levy will remain unchanged at NZ$5.40 a head. If it gets the backing of farmers, the levy increase is expected to bring in an extra NZ$1 million. Amongst other programmes, these funds will be used to help fund facial eczema and internal parasite research, which will become increasingly important as the climate changes.

Tag: Red Meat, Farmers & Producers

NZ not in trade talk race with Aus [4 June, Farmers Weekly]

According to Trade Minister Damien O’Connor, New Zealand is in no rush to conclude trade talks with the United Kingdom despite Australia potentially being just days away from snatching the British market with its own free trade deal. O’Connor says “we will hold out for a valuable trade agreement and we will not be pressured by somebody else’s timelines,” as he heads to London and Brussels later this month to finalise trade talks. British media have reported the UK is getting ready to offer tariff and quota-free access for Australian agricultural imports.

Tag: Trade & Exports

Aussie retailer boosts direct milk buying model [09 June, Rural News Group]

Food retailer Coles in Australia is offering Australian dairy farmers a full season price of AUD$7.19/kgMS. This is one of the highest prices in the market, and ahead of Fonterra’s Australia price offering of $AUD$6.55/kgMS. Coles General Manager for dairy Charlotte Rhodes stated "Extending our direct-sourcing model is part of our commitment to investing in a sustainable future for the Australian dairy sector, and our farmers have told us that it has made a real difference for their businesses."

Tag: International, Dairy, Agribusiness

Is sheep milking more kind on environment? [09 June, Rural News Group]

AgResearch scientist Dr Diana Selbie has been researching the environmental footprint of dairy sheep, leading a project funded by MBIE. Research has demonstrated that N leaching is between 10-50% lower from dairy sheep in comparison to dairy cows. Research also indicated a lower greenhouse gas footprint for dairy sheep on a per hectare basis, but only when sheep aren’t in fully housed systems.

Tag: Research & Development, Farming Systems, Environment & Emissions

Hawke's Bay coolstores awash with fruit as exporters struggle to get it onto ships [08 June, NZ Herald]

International shipping companies are now longer allowing forward freight bookings between New Zealand and Australia. Pre-Christmas price surges are expected to rise from $500 to $5000 on top of already high shipping costs, coupled with challenges of congestion at overseas ports. Larger companies that have been able to charter their own ships have fared better than companies of smaller scale, with some supply chains requiring farmers, growers and fishers to reduce or stop activities with product unable to be transported.

Tag: Trade & Exports

Organic milk price dropped [08 June, Rural News Group]

After a record payout of NZ$10.26/kgMS last season, organic farmers supplying Fonterra Co-operative Group have been told to expect a NZ$9.00 payout for the current season. Chief Executive Miles Hurrell stated, "Despite the increasing demand, organic milk supply globally remains in surplus and this is negatively impacting global prices”.

Tag: Dairy, Trade & Exports, Food Marketing

Māori land owners are working together to create large farming businesses and economic rangatiratanga [08 June, Stuff NZ]

Māori organisations and landowners such as Miro, Miraka and Kono are providing leading examples of successful New Zealand businesses. A genuine focus on sustainability and social impact working from a significant asset base has provided Māori businesses with a platform to build scaled international export business, often attracting premium prices for their products infused with a strong cultural story. Of the $68.7 billion Māori asset base, $23b is held in the primary sector.

Tag: Rural Communities, Agribusiness

Niwa defends dredging decision despite Opito Bay scallop rāhui, community feels 'violated' [05 June, Stuff NZ]

A voluntary scallop rāhui has been placed on waters at Opito Bay after a significant decline in scallop numbers and a lack of support or enforcement from government to protect the species. The rāhui is said to have been enacted successfully with locals and visitors respecting the area. However, a Niwa ship was found dredging a commercial area upsetting locals who had believed Niwa would only be diving. Niwa stated that they needed to combine dredging and diving data to complete a comprehensive nationwide assessment.

Tag: Research & Development, Rural Communities, Fisheries

Sharemarket gains as relaxation of Chinese baby rules boosts Synlait [04 June]

After the Chinese Governemnt’s announcement that couples would now be allowed to have up to three children, New Zealand’s stock market showed a 0.5% gain Synlait increased 6.8% alongside other milk stock increases, with an anticipated increase in demand.

Tag: Agribusiness

Big rain, big pain, big cost - Canterbury's week of flooding devastation [05 June, Stuff NZ]

Despite having advanced warning of the high rainfall events anticipated in Canterbury’s recent flooding, there was only so much preparation that could be completed. Multiple farms have been severely damaged as rivers burst their banks and flowed into completely new areas, often flooding farmland and causing thousands of dollars of destruction to fences and other farm infrastructure, with costs for some farms expected to reach $500,000.

Tag: Rural Communities, Farmers & Producers

Plant and Food open new research facility in Riwaka [05 June]

A collaborative investment between Wakatū Incorporation and Plant and Food Research (PFR) has enabled the opening of a new crop research laboratory at Riwaka. With the site spanning 36 hectares of research orchards and employing over 55 PFR staff, the upgraded facilities are expected to bring the laboratories up to international standards.

Tag: Research & Development

USDA sending $1 billion in funding to country’s food bank networks [04 June, PBS News]

The United States Department of Agriculture is providing USD$1 billion to food bank networks across the country to support better acquisition and distribution of aid. According to food bank operator Feeding America, requests for food assistance have risen 55% over the past year, with an expected 42 million more people to experience food insecurity in 2021.

Tag: International, Agribusiness

Agribusiness Remains a Target for Hackers [03 June, JD Supra]

Ransomware attacks are expected to increase, and agribusinesses are particularly vulnerable due to their important role in providing food, and the continued increase in technology use. The recent cyber attack on JBS is estimated to have reduced the world’s largest meat producers production by almost 20%.

Tag: International, Food Security