Week in Review

In Aotearoa, the Ministry for Primary Industries has released the latest Situation and Outlook for the Primary Industries report (SOPI), which forecasts a 5% decline in food and fibre export revenue to $54.6 billion for the year ending June 2024, compared to the previous year. Most sectors are predicted to have a significant decline in revenue including dairy, which is expected to fall 7% to NZ $24.2 billion. However, some sectors have a more positive outlook including arable, with export revenue predicted to increase by 12% to NZ $310 million. Meanwhile, the coalition government has announced that from July 2024, agriculture will be excluded from the Emissions Trading Scheme and the climate change initiative He Waka Eke Noa will be disbanded later in the year. The government will engage with levy bodies and industry organisations to create a Pastoral Sector Group that will find practical tools and technology for farmers to reduce their emissions without compromising production or exports. New Zealand’s major fertiliser co-operatives, Ballance Agri-Nutrients Limited and Ravensdown Limited, have dropped their prices by NZ $100/mt (for urea) as farmers begin spring planning. Whilst the international commodity market remains volatile, the price change is driven by a reduction in global demand after traditionally high prices and increased global supply. Gallagher Holdings Limited and Barenbrug New Zealand have jointly acquired the assets of Farmote Systems, forming a new venture called Farmote Technologies with 70% and 30% ownership respectively. Whilst still in the early stages, Farmote Technologies' pasture monitoring system will be integrated into the extensive product offerings of both companies and will support other offerings such as eShepherd virtual fencing and its new Auto Weigher.

In international news, 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. 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. 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.

Spotlight Stories

Forestry Spotlight:

a line of cows in a paddock

Short rotation forestry could lower fossil fuel dependency [06 June, Rural News]

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. Original full article here

Tags: short rotation forestry, bioenergy, forestry practices 

Innovation Spotlight:

picture of berries

First seedless blackberry developed using CRISPR technology [13 June, AgDaily]

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. Original full article here

Tags: seedless berries, CRISPR,  gene-edited 

Headline Stories

scientists in a lab

BioCraft's cultivated mouse meat reaches price parity with premium pet food [30 May, Petfood Industry]

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

Tags: petfood, cultivated meats, price parity 

packaging spilt

Aeropowder secures £150K investment for feather-based thermal packaging  [4 June, TechEU]

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

Tags: investment, startup. thermal packaging, feathers

Fieldays

Fieldays - 106,000 visitors, 1069 exhibitors graced Fieldays [18 June, Rural News]

The 56th Annual National Fieldays at Mystery Creek attracted 106,000 visitors and featured 1,069 exhibitors in 2024. There were two new features at this year’s event, including the Fieldays VIP Business Plus Lounge and the Fieldays Rural Advocacy Hub. Despite the current economic conditions many exhibitors were surprised by buyer spending, with companies such as Case IH reporting a 28% growth on last year’s sales. Compared to previous years there was a strong international representation, with 49 businesses from nine countries exhibiting, 25 delegations registered from 15 countries, and delegates from 17 embassies attending the four-day event. Original full article here

Tags: Fieldays 2024, international delegations, buyer spending

Get in touch

 

Audit – Auckland
Ian Proudfoot
09 367 5882
iproudfoot@kpmg.co.nz
Agri-Food – Auckland
Andrew Watene

09 367 5969
awatene@kpmg.co.nz
Management Consulting – Wellington
Justine Fitzmaurice
04 816 4845
jfitzmaurice@kpmg.co.nz
Private Enterprise – Hamilton
Hamish McDonald 

07 858 6519
hamishmcdonald@kpmg.co.nz
Farm Enterprise – South Island
Brent Love

03 683 1871
blove@kpmg.co.nz
Agri-Food - South Island
Paulette Elliott
+64 2788 61744
pauletteelliott@kpmg.co.nz