Week in Review

In Aotearoa, the Bank of New Zealand (BNZ) has joined the growing number of companies in the AgriZeroNZ investment fund tasked with accelerating emission reduction tools for New Zealand farmers. BNZ’s $4 million contribution will be matched by the government bringing total funds to $191 million. In arable industry news, over 70 farmers and industry representatives attended the annual New Zealand Grain and Seed Trade Association forum where a new royalty system for saved seeds was introduced. The system aims to collect royalties on Plant Variety Rights-protected seeds that have been saved and replanted to support fair returns for plant breeders and encourage the development of top-quality varieties for local growers. In meat processing, a 5% increase in the slaughter of prime lambs and cattle, compared to last year, has resulted in a decrease in winter supplies. The high early kill in late summer, early autumn was due to a range of factors, including dry and limited feed conditions, low farmgate prices, and no staff shortages for the first time in several years at meat processing facilities. Rabobank’s latest Rural Confidence Survey has found mixed results; farmers are optimistic about the performance of their own operations, but pessimistic about the wider sector’s outlook due to higher input prices, lower commodity prices, and rising interest rates. Meanwhile, the Commerce Commission has postponed its decision on the merger of grocery companies Foodstuffs North Island and Foodstuffs South Island until the 1st of October. The commission indicated that it would issue a statement of unresolved issues and detail areas of concern regarding the proposed merger.

In international news, an Australian-based startup, Farmbot, has raised AUD $4.6 million (NZ $5.0 million) for their expansion plans in the United States. Their products aid with water management, including functions such as water level monitoring in tanks, bores, and dams, leak detection, rainfall monitoring and automation of water pumps. In the Australian state of Queensland, the harvesting of native hardwood in state-owned forests will be prohibited to support sustainable timber and wildlife conservation. There are concerns this may result in increased construction expenses and waiting times as native hardwood is a key material for structural beams, posts, flooring, cladding, and decking. Industry body, Timber Queensland, is advocating for the allocation of new 20-year hardwood supply contracts from current state forests and other crown land for processors. In Ireland, a memorandum of understanding has been signed with Vietnam signifying a stronger diplomatic and trade relationship. It will focus on knowledge exchange, cooperative development, and agri-food innovation; however, the agreement does not stipulate Irish market entry into Vietnam. According to new official figures, Scottish farming reduced their emissions by nearly 12% between 1990 and 2022, amounting to a 1 million tonne reduction in carbon dioxide emissions.

Spotlight Stories

Emissions and Environment Spotlight:

Stacks of silver coins on top of soil

Denmark announces world-first climate tax on agriculture – earmarks billions for rewilding [25 June, CHP Post]

Denmark is the world's first country to implement a tax on agricultural emissions. In 2030, landowners will be taxed DKK 120 (NZ $28) per tonne of carbon dioxide emitted. They will have five years to transition, and the tax will rise to DKK 300 (NZ $70) per tonne from 2035. The agreement was reached after five months of negotiations between government, nature and agricultural associations and NGOs. Landowners will pay based on their emissions from livestock, fertiliser, forestry, and the disturbance of carbon-rich agricultural soils. The drainage and cultivation of former wetlands, including bogs, lakes, river valleys, and meadows in Denmark’s low-lying land, are main sources of carbon dioxide emissions in the Danish agricultural sector. A DKK 40 billion (NZ $9.38 billion) fund will be allocated to subsidise and aid rewilding efforts, with the agreement pledging to raise 250,000 hectares of new forests. Original full article here

Tags: climate tax, greenhouse gas emissions, rewilding

Food & Grocery Spotlight:

Grocery shelf with beverages

‘Unclear’: Coles, Woolworths crackdown a win for farmers, but consumers still paying too much for groceries [24 June, The New Daily]

The Australian government has pledged to implement all recommendations from a review of the food and grocery code of conduct they published on Monday 24th June. The government aims to improve dealings between suppliers and supermarkets, which is hoped will also lower grocery prices and relieve financially burdened families. This may involve imposing multi-billion dollar fines for misconduct based on supermarket revenues. The proposed reforms are designed to level the playing field, making it simpler and more secure for farmers to lodge complaints. There is an emphasis on increasing transparency and enhancing supplier protections, particularly through a new provision to safeguard their identities. Experts, however, argue that these measures may not be adequate to bring about a significant price reduction for consumers unless further action is taken to challenge the market dominance of major retailers. Original full article here

Tags: consumers, farmers, grocery, pricing, food and grocery code of conduct

Headline Stories

A man standing in a field with a tablet

Growers experiment with synthetic nitrogen alternatives [17 June, Farmers Weekly]

Arable growers in Canterbury and Waikato are experimenting with alternative nitrogen sources to reduce their reliance on synthetic nitrogen due to price increases, and likely future pricing of nitrogen fertiliser-related emissions. The on-farm experiments are conducted through the Foundation for Arable Research’s Growers Leading Change programme, focusing on cereal crops in Canterbury and maize in Waikato. Cereal crops were tested with a seaweed-based alternative applied with reduced applications of synthetic nitrogen and revealed no significant differences in yield but resulted in lower greenhouse gas emissions. They are also currently experimenting with nitrogen-fixing faba beans. Maize farmers are testing alternative nitrogen products such as chicken manure, dairy effluent, composted dairy effluent, and winter legumes in conjunction with synthetic nitrogen to assess their effects on yield. The on-farm experiments are not fully scientifically replicated trials but still provide useful insights for growers. Original full article here

Tags: synthetic nitrogen alternatives, seaweed, yield, arable, greenhouse gas emissions

3 mens standing in a field

The University of Georgia and Grand Farm Announce Agriculture Innovation Partnership  [13 June, Grand Farm]

The University of Georgia’s, College of Agricultural and Environmental Sciences, and leading innovator in agricultural technology, Grand Farm, have partnered to establish an innovative agricultural hub aiming to transform the methods of providing food and fibre for the global population. Grand Farm is a collaboration network initiative designed to inspire collaboration among businesses, organisations, & entrepreneurs to develop the future farm. The University of Georgia Grand Farm will be a working innovation farm, and will act as a centre for research, education, and sustainable agriculture practises, using precision agriculture, robotics, and data analytics to boost productivity, conserve resources, and secure food for the future. The farm will be located on 250 acres (101 ha) in Perry, Georgia, at the heart the state’s agricultural landscape with plans to launch the initial field projects in 2025. Original full article here

Tags: innovation, future farm, productivity, food security, collaboration

long distant view of hills

Suntory launches low-carbon sugarcane farming project in Thailand [19 June, FoodBev Media]

Japanese multinational beverage company, Suntory Holdings, is leading a major three-year effort to decrease carbon emissions in Thailand’s sugarcane farming sector. The project is in collaboration with the VIVE Programme, a voluntary sustainability programme for ingredient and energy supply chains, and Kaset Thai International Sugar Corporation Public (KTIS), one of the leading sugar producers in Thailand. Suntory is sponsoring a pilot programme aiming to implement low-carbon farming interventions rooted in regenerative agricultural practices, as recommended by experts from KTIS and VIVE. The primary goal of this programme is to assist KTIS and its associated farms in establishing scalable and low-carbon sugarcane production methods. Ultimately, this effort will contribute to Suntory's overarching objective of lowering greenhouse gas emissions in its value chain by 30% before 2030. Original full article here

Tags: carbon emissions, sugarcane, regenerative agriculture

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