Field Notes Issue 718

In Aotearoa…

Rabobank New Zealand, which specialises in food and agribusiness banking, has released a new television commercial highlighting its efforts to help rural communities across Aotearoa. The commercial which will run over the coming months is part of a wider campaign, all designed to promote the Rabo Community Fund. The Fund was established in 2021 and has supported over 100 community initiatives, contributing over $2 million.

New Zealand Apples and Pears has welcomed policy changes to the Recognised Seasonal Employer (RSE) Scheme set to be implemented in advance of the new season. The changes include lifting the suspension on accommodation cost increases, permitting the RSE workers’ minimum hours be an average over four weeks and an adjustment to the minimum wage requirement.

Red meat co-operative, Alliance Group has successfully completed the installation of a fully integrated storage and warehouse management system for frozen products at its Lorneville plant near Invercargill. The system utilises automated shuttle vehicles for product storage, retrieval, and palletising, reducing the number of people required for warehousing operations by 60. These staff members have been re-deployed to other areas within the operation.

In international news…

Pakistan is sending 1,000 agricultural graduates to China for higher education in a bid to elevate the capabilities of Pakistan’s youth. Prime Minister Shehbaz Sharif announced an agreement with Huawei to provide training for 200,000 students per year. These initiatives are designed to support Pakistan’s overall growth and advancement.

British tomato growers are reporting delays of up to six weeks due to the re-testing of tomato seeds on arrival in Britain from the EU, following the introduction of the UK’s new Border Control Post (BCP) inspections. The new BCP conducts physical inspections and identity checks for medium and high-risk animal and plant products entering the UK from the EU. The result is a delay in sowing of seeds, and the subsequent delivery of plants to growers, with other agricultural crops like oilseed rape reporting delays too.

A new law has allocated US $2.2 billion (NZ $3.6 billion) to compensate farmers who faced historical discrimination by the US Department of Agriculture (USDA). This comes after a federal lawsuit in which white farmers challenged a 2021 Congress approved 120% debt relief for Black farmers, resulting in a court induced halt to the programme. The USDA has historically refused to process loan application from Black farmers and has at times expediated the foreclosure on loans held by Black farmers.

Saturated paddocks in parts of Western Australia are causing farmers to manage their crops aerially as the fields are too wet for vehicle access. In contrast to last year when the area had the one of the driest seasons on record, this year’s rainfall has prompted farmers to use drones, planes and helicopters to apply herbicides and fertilisers due to the rainfall.

Everything You Need to Know About Upside Foods’ Lawsuit Against Florida’s Cultivated Meat Ban [14 August, Green Queen]

Upside Foods, a California based cultivated chicken startup, has initiated a legal battle against the state of Florida over its prohibition of cultivated meat, and is seeking a federal court injunction. Upside Foods is calling the ban unconstitutional, and an example of economic protectionism influenced by extensive lobbying by cattle interests. The legislation makes it a second-degree misdemeanour to manufacture, transport, commercialise or sell cultivated meat in Florida. Florida is an important market in the US for consumer-packaged goods as the third largest economy. Being unable to provide tastings and product demonstrations is impacting the ability of Upside Foods to secure business and consumer goodwill. In addition, the ban is making it more difficult to partner with restaurant groups who serve the entire country, some of whom are headquartered in Florida. Original full article here

Tags: Cultivated protein, Florida Cultivated meat ban, lawsuit

EU Commission Greenlights €700M Dutch Scheme for Livestock Producers to Voluntarily Close Their Farms  [19 August, Green Queen]

The European Commission has approved the Netherlands government’s voluntary farm closure compensation programme that will allow small and medium sized farmers in priority areas to close their sites and reduce environmental impact. The initiative which lasts until October 2029, focuses on farming in areas that have been identified as priorities by Dutch provinces and includes peatlands, stream valleys and those near protected areas. Eligible livestock farmers whose annual nitrogen emissions are over a certain threshold are eligible for direct grants and subsidised advisory services, as compensation for lost production rights and to meet the costs associated with dismantling farming operations. The EU commission found the initiative is a valid strategy to foster environmentally friendly livestock farming, with this scheme following one by the Dutch government to support farmers relocation away from nature conservation areas. Original full article here

Tags: voluntary farm closure, environmental impact

How Landify offers new ways to explore farm ownership [16 August, Farmers Weekly]

In response to the challenges faced by young New Zealand farmers aspiring to farm ownership, Sarah How and Tara Dwyer have established Landify. A digital platform, Landify bridges the gap between farmers intending to sell, and potential investors and individuals interested in farm ownership. The platform’s goal is to connect New Zealand farm owner operators who plan retire or divest their property, with skilled young farmers who lack the necessary capital to purchase farms. It provides an opportunity to explore alternatives to outright sale including equity partnerships, leasing agreements or co-investment. Since its launch earlier in August, the website has had significant interest, with sellers able to use the platform to post listings and engage with potential buyers. Original full article here

Tags: farm ownership, digital platform, alternative farm ownership models

Agribusiness platform Agrizy secures $9.8m to connect India’s small food processors with global markets [7 August, Ag Funder News]

Start-up Agrizy has built an Agri-processing platform that provides a fully managed B2B marketplace for India’s small food processors, and recently raised US $9.8 million (NZ $15.9 million) in a series A funding round. The platform is designed to support small and medium processors with advisory services, quality standardisation, technology integration and access to working capital along with providing global market access. Meanwhile it provides purchasers with access to products of consistent quality, improved pricing visibility and improved supply chain reliability through tracking of deliveries. It is estimated that the food processing sector in India will reach US $535 billion (NZ $869 billion) by 2025-2026, generating 9 million jobs, with small and medium businesses playing a key role. Original full article here 

Tags: India, advisory, food processors, global markets

Meat processors face soaring electricity bills [19 August, Farmers Weekly]

Meat processors have joined other industries in warning that the cost of electricity is materially higher than in 2022, even doubling in certain instances within a single year. ANZCO Foods said there has been a significant increase in rates over the last two years, and while they have not reduced production, they are seeking energy savings where possible. Silver Fern Farms (SFF) commented that electricity rates have doubled between 2022 and 2023 and the company is focused on reducing electricity use where possible, including introducing initiatives to help reduce energy use. These operational improvements include putting freezers into sleep mode during periods of non-use, replacing sterilisers with more energy efficient units and using waste heat from refrigeration units to heat water. Both SFF and Alliance Group have negotiated long term supply contracts for 2024 buffering the effect of these increased costs. Original full article here

Tags: meat industry, electricity cost