Week in Review

In Aotearoa, DairyNZ’s recent Economic Survey has revealed that the 2022-2023 season was the most expensive in a decade for dairy farmers; with operating costs for owner operators increasing by 5% reaching NZ $6.67 per kgMS. Overall operating profits dropped to NZ $2.57 per kgMS compared to the previous season of NZ $3.46 per kgMS, with feed continuing to be the largest operating expense making up 30% of total farm expenses. The country of origin Taste Pure Nature marketing programme will enter a new phase with exporters taking the lead for the programme to raise awareness and drive preference for New Zealand grass-fed beef and lamb offshore. Beef + Lamb New Zealand and the Meat Industry Association will each contribute NZ $2 million over the next three years for continued investment into targeted markets such as China. Olive oil producers are reporting a significant reduction in production, with growers in Wairarapa, Nelson, Marlborough, and Canterbury pressing a third fewer olives than last season. The drop is due to drought conditions, bird strikes, and early frosts damaging crops. Meanwhile, Australasian poultry company Agright, has received approval by the Overseas Investment Office to buy 239 hectares of land near Paeroa, Waikato, to build a 25-hectare broiler chicken farm that will incorporate large-scale solar and battery storage renewable energy. 

In international news, Australian seafood company Tassal has proposed plans to expand their barramundi operations to Western Australia’s Environmental Protection Authority. The proposal includes seven new aquaculture leases, totalling 84 new fish cages over 817 hectares of ocean. In the United Kingdom, supermarket chain Aldi will trial replacing the plastic banana packaging with eco-friendly paper bands. The initiative is part of their broader waste reduction strategy potentially eliminating 234 tonnes of plastic banana packaging annually. In Ireland, the Minister for Agriculture, Food and the Marine has allocated nearly €300,000 (NZ $530,000) in funding to 17 local agri-food tourism initiatives through the 2024 Rural Innovation and Development Fund. These projects aim to promote agricultural experiences, local cuisine, and artisan crafts, supporting the development of the agri-food tourism sector and its importance to communities across the country. Meanwhile, the International Flavors and Fragrances company has developed a Sustainability Brewing Calculator to support breweries in sustainable decision making. The online tool uses Life Cycle Assessment methodology and sustainability data to help make decisions around water and energy efficiencies, carbon emissions, and land uses. 

Spotlight Stories

Food System Spotlight:

a pile of food sitting on a table

FoodDrinkEurope outlines roadmap to boost Europe's competitiveness and sustainability [27 June, FoodBev Media]

FoodDrinkEurope, the organisation representing Europe’s food and drink industry, has announced a plan to guide policymakers to maximise the competitive potential of the industry, focusing on sustainability and food security. Among the recommendations, the 'Food Investment and Resilience Plan' suggests creating a European Union Food Investment Strategy to address funding gaps and drive public and private financing in areas such as sustainable agriculture and digital infrastructure. The plan outlines a five-step approach to support a competitive sustainable industry, focused on stimulating investment, supporting innovation, boosting trade, and securing supply, building better regulation, and improving governance. Original full article here

Agri-technology Spotlight:

vineyard

Specialty crop equipment leader CNH partners with Bluewhite to bring autonomous tech to orchards, vineyards [25 June, Ag Funder News]

Farm equipment manufacturer CNH has partnered with Bluewhite an autonomous farming startup to integrate their technology into New Holland tractors, allowing them to operate autonomously in orchards and vineyards. Bluewhite's approach is to outfit existing machines with its advanced system that uses computer vision, AI, and navigation technology to enable autonomous task execution. Bluewhite’s founder Ben Alfi described the process to an "IKEA build" as they provide the system to a dealership which is then installed into an existing machine by the dealership within 14 hours. This collaboration aims to deliver consistent and precise farming results, minimise human error and worker fatigue, enhance worker safety, and improve data visibility. Original full article here

Headline Stories

cow in a paddock with a drone

New Zealand government launches major campaign to help UK farmers through transition [ 25 June, Farming Life]

New Zealand Trade and Enterprise has launched a campaign in the United Kingdom to promote New Zealand’s agri-tech solutions to UK farmers. The initiative offers free guides and recommendations on a range of topics including on farm business management, livestock, dairying, animal health, genetics, grass management, and machinery. The guides focus on building efficiencies and resilience into farm businesses, providing British farmers with information on the latest technologies as well as case studies to demonstrate the benefits of incorporating new innovations on farm. The transition for UK farmers from the Basic Payment Scheme to environmentally-led support payments means farmers will need to increase efficiencies and profitability of their businesses to ensure long term viability. Original full article here 

Tags: agritech, Basic Payment Scheme, New Zealand Trade and Enterprise 

3 mens standing in a field

Spooked forestry set to plant 41% less [27 June, Farmers Weekly]

A recent survey by the Ministry for Primary Industries suggests that new forestry planting for 2024 is expected to be 41% less than the previous year, marking the first decrease since 2019. The survey confirms that forest owners lack confidence due to policy uncertainty, particularly related to the recent changes in the Emissions Trading Scheme and are still recovering from Cyclone Gabrielle, this has led to reduced planting intentions for the upcoming season. The sector has also reported delays and challenges in the Overseas Investment Office approval process, local government regulations, and difficulty obtaining resource consents as additional factors deterring potential investors. Original full article here

Tags: forestry, planting decline, emissions trading scheme

long distant view of hills

Chatham Islands farmers hope to off-load stock after three months of no shipments [25 June, The Country - RNZ]

Farmers on the Chatham Islands are facing challenges as the Southern Tiare, the 38-year-old ship that transports stock to mainland New Zealand, has been out of service for the past three months for ongoing maintenance and repairs. This has led to a backlog of 50,000 stock units that are awaiting transport. Farmers are now facing winter feed challenges as well as cashflow and potential animal welfare issues, some farmers have already had to cull stock on farm. The Ministry for Primary Industries is working with local farmers to address the situation, including providing on-farm support for feed management. Original full article here

Tags: Chatham Islands, shipping disruptions, Southern Tiare ship

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