Week in Review

In Aotearoa, the government has released the terms of reference for a regulatory review of agricultural and horticultural products. The review aims to streamline access to new products such as pesticides, inhibitors, feed, and fertilisers to maintain competitiveness for New Zealand farmers and growers. Wool carpet manufacturer, Bremworth, plans to allocate NZ $2 million towards a series of new marketing initiatives aimed at addressing misconceptions about wool and increasing demand for New Zealand wool both locally and in the Trans-Tasman region. Meanwhile, Wools of New Zealand has signed their first agreement with Chinese manufacturer Yangxin Ruixin Group, permitting the use of Wools of New Zealand’s brand for products containing a minimum of 60% of fibre supplied by Wools of New Zealand. The agreement also means Wools of New Zealand have a partner in the Chinese market that can ensure the protection of the brand’s authenticity and reputation. A new report from the Meat Industry Association has highlighted that the overall value of red meat exports increased by 2% in June due to the strong demand from the United States, Japan, United Kingdom, and Canada, despite a Chinese market downturn which declined by 38%. Horticulture New Zealand is supporting plans to extend planning permission for post-cyclone rural recovery work in Hawke’s Bay and is pushing for the inclusion of Tairāwhiti Gisborne as well. This would enable land users in the region to complete rural recovery works, such as removing or contouring silt, without the cost and delays of a resource consent.

In international news, the new Industrial and Livestock Rearing Emissions Directive has come into force in the European Union, aiming to reduce emissions to air, water, and land. The directive includes not only industrial facilities, but also large pig and poultry farms. Farmers affected by the new regulations will be given time to adjust, with the rules set to become applicable between 2030 and 2032, depending on farm size. In Scotland, farmers and food producers are eligible to apply for grants up to £5,000 (NZ $10,744) for the promotion of local produce through their government's £100,000 (NZ $214,890) Regional Food Fund. Previous projects have included festivals, campaigns, market weekends, food and beverage tours and new equipment. In Britain, the pharmaceutical company, Elanco Animal Health, has gained authorisation for the use of their vaccine to protect broiler chickens from avian encephalomyelitis. The disease causes symptoms including nervous signs, imbalance with birds sitting on their hocks, as well as paralysis and tremors of the head, neck, and wings that can lead to high mortality and morbidity of 5-60%. In the United States, the Senate Oceans Caucus have proposed a bipartisan legislation to ban commercial octopus farming and prohibit imports of farmed octopus.

Spotlight Stories

Supply Chain Spotlight:

A farmers market

Bangladesh’s Fashol tackles the agrifood supply chain to stabilize food prices for farmers and reduce food waste [30 July, AgFunder News]

Fashol, a Bangladesh-based startup, aims to connect farmers directly with retailers and customers, to stabilise food prices and reduce food waste. The company, which was established in 2020, recently raised US $1 million (NZ $1.68 million) to create a platform that helps Bangladeshi farmers sell their product profitably and sustainably. Fashol provides a solution that allows retailers to place orders as late as 10 to 11pm and receive a delivery the next morning. This ensures that they order only what is needed, thereby reducing food waste, and eliminating the need for retailers to visit wholesalers during the early hours of the morning. Bangladesh’s agrifood production exceeds domestic requirements, so the start-up is also aiming to expand their operations to include export opportunities. Original full article here

Tags: supply chain; farmers; retailers; delivery; food waste

Food Technology Spotlight:

Grocery shelf stocked with packaged foods

Nestlé develops technology to reduce fat in dairy ingredients [ 24 July, Agriculture Dive]

Food and beverage multinational, Nestlé, has created a method to decrease fat in milk powder by 60% while maintaining quality, flavour, and creamy texture. The proprietary technology is based on the binding of larger milk protein clusters, called aggregates, during the normal manufacturing of milk powders. Nestlé's technology is currently implemented solely in Ninho Adulto, a popular milk powder in Brazil but the company intends to expand into other dairy products. This innovation comes as many food producers, including Nestlé, face increased demands to improve the nutritional profile of their product offerings from consumers seeking healthier options. Nestlé has pledged to increase the sales of more nutritious products in its product portfolio by 50% by 2030. Original full article here

Tags: fat reduction; technology; nutrition

Headline Stories

A bunch of daffodils outside on a sunny day

Methane-blocking extract from daffodils to be trialled in New Zealand [31 July, AgriZeroNZ]

AgriZeroNZ has teamed up with Welsh research firm Agroceutical Products, committing a NZ $4 million investment to test an extract (Haemanthamine) from daffodils following UK research revealing its potential to decrease methane emissions from cattle. Previous lab trials showed that livestock methane emissions reduced by 30% when the daffodil extract was consumed as a feed additive. To maximise the amount of the compound in the plants, Daffodils first need to be grown in challenging, high-altitude environments, and Agroceutical Products is considering growing them in the Southern Hemisphere, with New Zealand being a prime location due to its rugged hill country. Daffodils could also offer another source of revenue for sheep farmers in New Zealand, as they can be seamlessly incorporated into sheep farming practises and collected for extraction without requiring substantial capital investment or causing harm to the surrounding pasture. Original full article here

Tags: methane emissions; livestock; daffodil; sheep

A bird's eye view of a container shipping port

Red Sea tension: New Zealand exporters struggling with doubled shipping costs [31 July, NZ Herald]

Global shipping rates have almost doubled for New Zealand exporters since late April due to the Red Sea disturbances, resulting in increased demand for shipping services to European and Asian destinations. The conflict in Israel has led to increased Houthi rebel attacks in the Red Sea, resulting in a 50% drop in shipping through the Suez Canal since December. By contrast, this has increased sailings around the Cape of Good Hope by 70%, impacting the cost and transit time and contributing to complexity and uncertainty for exporters. Original full article here

Tags: shipping; red sea; Houthi; rebel attacks; trade; export; middle east conflict

Sheep grazing on a clifftop overlooking the ocean

Significant interest in CPD incentive programme [5 August, Rural News Group]

Safer Farms new industry-wide initiative, Safer Rides programme has seen 110 farm businesses across New Zealand sign up to a pilot scheme to have crush protection devices (CPDs) installed on their quad bikes at discounted rates of up to 75%. CPDs create space under an overturned quad bike by distributing its weight or allow the bike to roll off the individual. Farmers shared that some of the reasons for applying for the discount were the savings but also the heartbreaking accounts of losing loved ones to quad bike accidents. From 2019 to 2023, there were 22 quad bike deaths in New Zealand, mainly due to rollovers and steep slopes. Original full article here

Tags: safety; quad bike; discount; farmers; accidents

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