Field Notes Issue 662

In Aotearoa as more weather hits the East Coast customers may face vegetable shortages in the short term. Supermarket Countdown has already warned their customers of potential shortages of bagged salads, lettuce, broccoli and mandarins. This is another setback for consumers as grocery prices continue to climb, with data from Stats NZ showing annual food prices increased 12.5% for the year to April 2023, with fruit and vegetables seeing the greatest increase at 22.5%. The New Zealand Institute of Forestry (NZIF) is concerned that the recent government decisions on Emissions Trading Scheme auction settings have undermined the forestry industry's potential to help meet New Zealand's climate change targets and will result in planting rates falling below required levels. NZFI has written an open letter to media and MPs, warning that recent policy decisions could lead to serious repercussions for the forestry industry. Scientists at the University of Canterbury are creating real-time test kits to help farmers monitor and measure phosphates in nearby waterways and control fertiliser use on their land. This is in response to demand for accurate tools with recent nutrient management laws, the project is expected to take three years to complete. The Ahuwhenua Trophy, the most prestigious award for excellence in Māori farming and horticulture, has been announced this week. Wi Pere Trust based near Gisborne took the trophy home for the second time in a row for their horticultural enterprise, following last year’s win for their sheep and beef operation.

In international news, Prime Minister Chris Hipkins embarked on a week-long trade trip to New Zealand’s largest trading partner China, with the hope to strengthen trade relations. Also in China, their agricultural sector is facing both floods and extreme heat which is significantly obstructing food security. Floods have caused wheat kernels to turn black and become unsuitable for consumption, while the extreme heat has had a significant impact including the death of fish in rice paddies in Guangxi Province and the loss of hundreds of pigs in Nantong City. The European Commission is set to propose the relaxation of crop technology rules next month. The regulations would ease for crops made with new genomic technologies that have improved tolerance to diseases, pests, and environmental stresses. The shift is being considered as current gene editing developments are out-pacing regulation. 

KPMG has collaborated with the University of Waikato to deliver a refreshed Food and Fibre Insights Course which runs over six weeks, covering cutting-edge ideas in the food and fibre sector including the future of food, innovation, global consumers, value chain and growth.

This tertiary-level course empowers working professionals from all walks of life, agri-preneurs, agribusiness teachers and farm business leaders, to develop skills and knowledge including foresight, value chain, and critical thinking. The course is intended to be a thought provoking, stimulating and informative professional development, designed to assist participants entering a new career path in the food and fibre sector or strengthen their existing career path in the industry.

For more information. Please click here.

Maximising your R&D credits through in-year payments  [June, KPMG NZ]

A new piece of thought leadership from our KPMG tax team covers the Research and Development Tax Incentive (RDTI) regime in New Zealand which now offers in-year payments, which provide an interest-free government loan to businesses for their expected R&D credit. This new scheme allows companies to receive support closer to when R&D costs are incurred (up to three cash payments during the year), rather than waiting for the R&D tax credit to be issued in the following year. The KPMG tax team are available to discuss the changes to the rules and how they might help your organisation to accelerate its innovation activities.

Tags: Research & Development

Disruptive food trend has already peaked – report [22 June, Farmers Weekly]

A report from Rabobank suggests that the development of disruptive food innovation over the last 10 years has peaked, and the next few years will see more incremental innovations and fewer disruptions in food trends. A recommendation from the report titled, Disruptive Food Products Prove To be More Hype than Bite, suggests investors who continue to seek out disruptive innovations will need to ensure product alignment with consumers in terms of taste, health, and convenience. Incremental innovation offers more immediate benefits, such as supply chain simplicity, sustainability, and cost reduction, Rabobank’s senior consumer food analyst Thomas Bailey reports.

Tags: Food Innovation

World-first disbudding alternative developed by NZ vets [23 June, Farmers Weekly]

Welfare Concepts a New Zealand-based animal health company has developed a world-first product that prevents the development of horn buds in young calves. The patented pharmaceutical developed by vets is injected under the area where the buds develop. The product has the potential to replace the painful "disbudding" procedure, which involves the use of a hot iron to cauterise the tissue where horns would normally develop, which up to a million calves in New Zealand undergo every year. Welfare Concepts has successfully tested the product on calves and is now optimising it in preparation for clinical trials

Tags: Animal Welfare, Dairy

New Zealand-farmed king salmon sold domestically 'has a significantly lower carbon footprint than beef, lamb and cheese' [26 June, Stuff]

A life cycle assessment has found that farmed king salmon sold in New Zealand has a lower carbon footprint than beef, lamb, and cheese. The assessment evaluated the environmental impact of salmon throughout its entire lifecycle, including production, packaging, transportation, cooking, and disposal. The report provides transparency on the sustainability of New Zealand farmed salmon and enables businesses to target and improve areas with the most significant impact. The report was commissioned by Fisheries New Zealand, Aquaculture New Zealand, and the New Zealand Salmon Farmers Association.

Tags: Aquaculture, Environment & Emissions

Cheaper to import wheat from Australia than within NZ, growers say [26 June, Stuff]

South Island wheat growers are struggling to compete for North Island supply with imported Australian wheat, due to the high transport costs of shipping across the Cook Strait. The industry needs more shipping options, larger cargo loads, and infrastructure investment to be competitive, stated Brain Leadley, wheat grower and board director at United Wheat Growers. As an example to the need for more shipping options, Leadley states presently only small loads of 500 to 1000 tonnes can be shipped domestically, compared to international ships carrying up to 30,000 tonnes. The New Zealand Ministry of Transport is set to release a strategy to address freight and supply chain challenges, and improve social and environmental outcomes.

Tags: Economics & Trade, Arable