Week in Review

In Aotearoa news, Otis Oat M!lk has established a dedicated manufacturing facility in East Auckland for their premium oat milk, moving production from their previous location in Sweden. This follows an 18-month partnership with domestic, German, and Swedish food technology suppliers in developing a world-class plant-based milk production facility. Sheep milk company, Spring Sheep New Zealand has acquired 12% ownership of Melody Dairies, the facility that processes their milk. The acquisition will allow Spring Sheep to ensure future processing capacity and enhance quality control measures. The Poultry Industry Association of New Zealand has won the New Zealand Veterinary Association’s Antimicrobial Resistance Award for eliminating the use of antibiotic zinc bacitracin (ZB); this is the first time an industry body has won the award. Previously the industry had used ZB as a preventative measure given to chickens in their daily feed, but through phasing it out New Zealand has become one of the few poultry industries in the world that uses no antibiotics prophylactically. In dairy news, New Zealand’s milk production is projected to increase by only 0.5% annually over the next decade due to land and environmental constraints, according to the OECD’s FAO in their Agricultural Outlook 2024-2033 report.

In international news, the United Kingdom’s general election result means a new government after the Labour Party’s huge victory. The National Farmers’ Union sees it as a pivotal moment for British farming after 14 years of the previous government. There are several key policies in Labour's manifesto, which the industry wants to see implemented such as legislation to boost public procurement, and the setting of core food import standards. In Brazil, experts have raised concerns over increased risks for indigenous people, riverine communities, small farmers, and the biodiversity of the Amazon Rainforest following recent legislative changes allowing the use of pesticides banned in other parts of the world. Over the last decade, Brazil has increased pesticide use by 78%, particularly in the advancing agricultural region of the Amazon. In Vietnam, coffee producers are concerned about the possibility of a 50% decrease by 2050 in farming land for robusta coffee due to climate change. Subsequent consequences could result in increased prices globally for instant coffee. Some producers have been proactive in mitigating its effects, including the use of AI technology and sustainable farming practices. In trade news, the European Commission has announced that eggs and sugar from Ukraine will lose their exemption from duties and quotas. Since 2022, the EU has tried to support Ukraine in its war efforts by relaxing import rules. However, the surge in cheap Ukrainian products and pressure from farmers has led to the reintroduction of tariff quotas from the 2016 Free Trade Agreement with Ukraine.

Spotlight Stories

Food Regulation Spotlight:

a piece of meat on a wooden board

'Lab-Grown' Meat Maker Upside Foods Hosts Farewell Tasting in Miami Ahead of Cultivated Meat Ban in Florida  [1 July, Tech Times]

Prior to the implementation of Florida's ban on lab-grown meat on July 1st, Upside Foods, a company producing cultivated meat, hosted a farewell tasting event in Miami. Although the US approved the sale of "cell-cultivated" or "cell-cultured" meat in June last year, the states of Florida and Alabama have banned selling cultivated meat and seafood derived from animal cells, with concerns over potential safety risks and the impact on traditional farmers. Cultivated products are produced in stainless steel tanks using cells from living animals, fertilised eggs, or cell banks, and are sustained with a unique blend of water, sugar, vitamins, and fats. Despite addressing health and environmental issues associated with traditional meat production, cultivated meat and seafood remains prohibitively expensive and has yet to appear in grocery stores in the United States. Original full article here

Tags: cell-cultivated; regulations; ban; lab-grown

Trade Spotlight:

birds eye view of a container shipping port

New Zealand Refuses India’s Application for Basmati Rice Trademark [4 July, Quality Oracle]

The Intellectual Property Office of New Zealand (IPONZ) has rejected the Government of India’s basmati rice trademark application, corresponding to a geographical indication. Reasons for rejecting the application given by IPONZ were primarily due to basmati rice being farmed and produced in multiple rice-producing countries beyond the Indian region. Australia declined the same application for similar reasons. Basmati rice is traditionally produced in the Indian subcontinent and holds a dominant position in global trade, however, neighbouring countries such as Sri Lanka and Pakistan (the second-largest producer of basmati rice) also produce basmati rice. The Government of Pakistan also applied for the ‘BASMATI’ trademark last year, and the case is still pending as of 2024. Original full article here

Tags: trademark; geographical indication; intellectual property

Headline Stories

A man standing in a field with a tablet

Virtual work experience to drive awareness of farming careers [5 July, Farming UK]

The UK-based farming skills organisation, The Institute for Agriculture and Horticulture, has introduced a virtual work experience (VWEX) program to offer young people exposure to careers in agriculture and horticulture. The programme will include virtual tours to operational farms and facilities, interviews with industry professionals, interactive activities, and webinars. The programme aims to tackle industry challenges such as limited awareness of agricultural careers, outdated perceptions, and a lack of diversity in the sector. The virtual format seeks to overcome geographical and financial barriers that have previously restricted access to farming work experience. The VWEX programme will be accessible at no cost to all registered participants until April 2025. Original full article here

Tags: farming skills; virtual; work experience; horticulture; agriculture; career

A bunch of green grapes

Craigmore’s offshore owners plant for future [4 July, Farmers Weekly]

New Zealand investment company, Craigmore Sustainables, plans to increase its horticulture business from $400 million to $650-$700 million in total assets within the next 18 months. Thirty-seven percent of Craigmore’s capital has already been invested in horticulture, with further investments planned. This expansion strategy involves additional planting on existing kiwifruit, apple, and grape properties, alongside newly acquired land. Most of these horticulture investments focus on capital-intensive conversion of bare land to modern orchards using new structures and protected varieties of intellectual property. Craigmore's horticulture operations employ approximately 80 to 85 full-time-equivalent workers, with seasonal workforce needs expanding rapidly as canopies mature and the harvest crop load increases. Craigmore has a unique structure compared to other offshore landowners in New Zealand, maintaining New Zealand control over management and governance while accessing offshore capital. Original full article here

Tags: horticulture; assets; investment; expansion

A meat processing line with trays of meat

Quorn to supply mycoprotein for hybrid meat products in UK hospitals [5 July, FoodBev Media]

Quorn, a UK-based company specialising in vegetarian meat alternatives, is collaborating with foodservice partners to produce hybrid meat products containing Quorn's mycoprotein. The blended meat products will serve as substitutes for traditional menu items that are 100% meat. One of the partnerships is with the National Health Service aiming to reduce its carbon footprint and achieve climate targets for its health system, along with reducing the saturated fat and cholesterol from employees’ and patients’ diets and adding more fibre. The hybrid meat products will not carry the Quorn brand but will be produced by Quorn's catering partners with mycoprotein being referenced in the products' ingredients. It is anticipated that products will feature on menus before the end of 2024. Original full article here

Tags: meat alternatives; mycoprotein; foodservice

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