Week in Review

In Aotearoa…

Lamb and beef prices have quickly increased to levels well above seasonal averages due to a shortage of finished livestock. In the last month, procurement pressures have caused increases in lamb slaughter prices of 40- 45c per kg and cattle slaughter prices of 25-75c per kg.

New Zealand Cabinet has decided to opt out of the joint Australia-New Zealand standards on infant formula labelling after their review request was denied. The standard restricts the amount of promotional material on packaging. Instead, New Zealand will implement its own standard over the next five years.

A new nutrient management decision making tool was launched for the vegetable farming industry. The Sustainable Vegetable Systems tool integrates nitrogen planning with soil testing to provide growers with real-time data to help meet sustainability and regulatory requirements.

Northland's port company is appealing a decision to refuse consent for a major expansion. The 12-hectare reclamation and 250-metre wharf extension were rejected due to adverse effects on the cultural values of tāngata whenua and the impact on public access to the coast.

In international news…

American plant-based company, Impossible Foods, has opened its first brick and mortar foodservice concept at the XMarket Food Hall in Chicago. “Impossible Quality Meats” is open for a limited time and will bring together its beef, chicken and pork portfolio through a range of menu items.

The United States Department of Agriculture has allocated an additional US $300 million (NZ $ 494 million) to help grow export markets for food producers. The US $1.2 billion (NZ $2 billion) Regional Agricultural Promotion Programme established last October funds market development projects in regions including Africa, Latin America and Asia.

Industry lobbying in the United Kingdom has prompted the Department for Environment, Food and Rural Affairs to make further changes to the Sustainable Farming Incentive. Most significantly, legume fallow has been added as a rotational option, allowing arable farmers greater flexibility to sustainably produce food.

Spotlight Stories

Biosecurity Spotlight:

A sheep

EU fights outbreak of sheep and goat plague  [5 August, Politico]

Officials in Southeastern Europe are working to contain an outbreak of the sheep and goat virus, Peste des Petits Ruminants (PPR) which was detected in early July. Greek authorities have already quarantined and preventively culled over 10,000 sheep while Bulgaria are disinfecting vehicles and implementing a compulsory PCR testing for all animals entering the country. The PPR virus is deadly to livestock, killing up to 70% of infected animals. The virus was first detected in the European Union in 2018 where authorities quickly locked down several villages and culled 2,000 livestock which contained the epidemic. Original full article here

Tags: plague, Peste des Petits Ruminants, biosecurity, livestock

Artificial Intelligence Spotlight:

men standing in field

FAR puts AI at growers’ fingertips  [9 August, Farmers Weekly]

The Foundation for Arable Research (FAR) has introduced a new Artificial Intelligence (AI) tool, Ask FAR, to help growers search and summarise the information available on their website about growing and harvesting different crops. This tool is a unique application in New Zealand and will provide users with summarised information on commonly asked questions, saving farmers from having to digest and interpret multiple sources of information.  Ask FAR aims to simplify the search process and only considers information from the FAR website to ensure the answers are based on credible and independent New Zealand research. Original full article here

Tags: artifical intelligence, crops, farming, The Foundation for Arable Research 

Headline Stories

a bunch of cows in a field

Halter launches in the US [12 August, Farmers Weekly]

New Zealand virtual fencing company, Halter, has launched in the United States (US) at the AgMedia Summit in Kansas City, Missouri. The technology has already been installed on cattle ranches and dairy farms in California, Oregon, Colorado, Texas, and Louisiana. Founder and CEO Craig Piggott explains that the US presents a huge opportunity for Halter, as it is the second-largest beef producer, with at least 60% of its cattle grazing pastures. Halter will target calf-cow operations and backgrounding beef operations and is looking to expand its US-based team to continue growing its customer base. Original full article here

Tags: virtual fencing, US market, expansion

A bird's eye view of a container ship

Vet kits and fodder sent to Gaza to help improve livestock health [12 August, Agriland]

The Food and Agriculture Organisation of the United Nations (FAO) will send fodder and veterinary kits to the Gaza Strip to support local food production. The first shipment will deliver 2,452 essential veterinary kits containing multivitamins, disinfectants, salt blocks, and iodine wound spray to improve animal health and welfare. The conflict has prevented farmers from providing basic care to their livestock, impacting food security in the region. The FAO has already delivered 500 metric tonnes of fodder, with an additional 500 metric tonnes en route, which will be delivered to over 4,000 farmers. Original full article here

Tags: FAO, fodder aid, food security

green grapes on a vine

Uncertain times: Rollercoaster sales, light harvest, rising costs & excess stock [6 August, Rural News Group]

At a Grape Days event, New Zealand Winegrowers Chief Executive, Phillip Gregan explained the increasing complexities and uncertainty the industry is facing as it reports a 21% decrease in grapes harvested compared to the previous vintage. Despite a growth in total vineyard area, the 2021 and 2024 vintages represent two of the three lowest yielding crops in the last decade. Winegrowers are facing high interest rates and input costs, while experiencing a decline in demand combined with high inventory levels, impacting sales. However, the industry remains hopeful there are still market opportunities with the Ministry of Primary Industries reporting demand for Sauvignon Blanc will continue in 2025.  Original full article here

Tags: wine, 2024 vintage, New Zealand wine production

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