Week in Review

In Aotearoa…

Kiwifruit exports reached a record value of $3.1 billion in the year ending August 2024, a 20% increase on the previous year. According to StatsNZ data, gold kiwifruit exports rose by 24% to $2.4 billion, while green kiwifruit exports increased by 9.9% to $737 million.

North Island maize grain growers are facing uncertainty for 2025 due to an energy crisis. Maize grain, commonly used as supplementary feed in dairy and poultry, must be dried using gas-dependent facilities to reach the required moisture level. Companies have hesitated to offer planting contracts due to concerns around gas availability and costs, which directly influence grain prices.

AgriZeroNZ and the New Zealand Greenhouse Gas Research Centre will invest $13.5 million in biotech venture Lucidome Bio to develop a methane-reducing vaccine for ruminant animals. The funding will allow Lucidome Bio to progress the development of a vaccine that suppresses methane-producing microbes, reducing greenhouse gas emissions from ruminants.

Public consultation has begun on proposals to strengthen New Zealand’s biosecurity system. The Ministry for Primary Industries will lead the policy programme to amend the 30-year-old Biosecurity Act, proposing higher fines for undeclared high-risk goods, flexible import requirements, and fairer cost-sharing to protect New Zealand’s $53 billion food and fibre export industry.

In international news…

China has suspended tariff exemptions for 34 Taiwanese agricultural products, prompting Taiwanese officials to demand a return to international trade norms under World Trade Organsiation rules. This is the second time this year that China has unilaterally cancelled tariff concessions, resulting in an additional US $1.08 million (NZ $1.72 million) in tariffs for Taiwanese exporters.

Australia's largest supermarket chains, Woolworths and Coles, are facing legal action for allegedly creating fake discounts by temporarily raising prices by 15% before promoting them as special offers at the original price. The Australian Competition and Consumer Commission claims the practise misled consumers and violated consumer law, impacting their ability to make informed purchasing decisions.

Waste from Melbourne's green bins is being used as mulch in Victorian vineyards, improving grape growth and reducing chemical use. The trials with Sustainability Victoria and Melbourne Water show healthier vines, soil, and fewer weeds, although adding manure to the mulch is needed to boost nitrogen and cost-effectiveness for producers.

Spotlight Stories

Biotechnology Spotlight:

Geothermal power station

Making livestock feed from greenhouse gases in world-first research [23 September, Scion Research]

A central North Island Māori trust is collaborating with geothermal experts and New Zealand scientists on a pioneering project to develop livestock feed from geothermal gases. The nearly $5 million project, funded by the Tauhara North No. 2 Trust and the Ministry for Primary Industries, aims to progress laboratory research that converts geothermal power station emissions into protein-rich biomass using bacteria and algae. This biomass, produced by microorganisms feeding on carbon dioxide and methane, contains valuable proteins for animal feed. The four-year project, led by geothermal consultancy Upflow and several research institutions, could introduce a new biomass feedstock manufacturing industry in New Zealand, potentially worth $500 million per year by 2045. Original full article here

Tags: biomass feedstock, greenhouse gas emissions, geothermal power

Food Security Spotlight:

a pile of healthy foods

Kai Motuhake - Re-indigenising and re-localising food systems: A starting place to tackle the legacy of colonisation in Aotearoa  [17 September, Kore Hiakai Zero Hunger Collective]

The Kore Hiakai Zero Hunger Collective, a non-profit group working towards a food-secure Aotearoa, has launched a report exploring food sovereignty through the lens of te ao Māori. The report, Kai Motuhake, acknowledges the ongoing impact of colonisation on food insecurity in Aotearoa and examines the relationship between Te Tiriti o Waitangi and food. It also considers how Tangata Tiriti can work towards achieving kai motuhake. Kore Hiakai hopes the report will inspire people to collaborate and move Aotearoa towards being food secure and food sovereign through a Te Ao Māori lens. The full report can be downloaded from Kore Hiakai’s website, and a webinar discussing the findings will be hosted on 1 October. Original full article here

Tags: Kore Hiakai, food security, food sovereignty, Te Ao Māori

Headline Stories

some dairy products sitting on a desk

EU goes to WTO to challenge China dairy subsidy investigation [23 September, Agriland]

The European Commission (EU) has challenged China's investigation into subsidies provided to EU dairy producers by launching a consultation request with the World Trade Organisation. China initiated an investigation last month into EU subsidy schemes, claiming they affect its domestic dairy industry, with specific reference to schemes like Ireland's Dairy Equipment Scheme. This marks the first time the EU has taken a pre-emptive measure, citing China’s alleged pattern of initiating trade defences based on allegations and insufficient evidence. China’s investigation follows the EU’s draft decision to impose countervailing duties on battery EV imports from China as part of its own anti-subsidy investigation into the Chinese electric vehicle industry, a move that further escalated tensions between the two nations. Original full article here

Tags: World Trade Organisation, China, European Union, subsidies 

A lamb poking its head through a fence

Bluetongue virus reaches Sweden, Norway amid a surge of outbreaks [24 September, Euractiv]

The bluetongue virus (BTV) has spread to Northern Europe, with cases reported in Sweden and Norway for the first time in 15 years. The non-contagious disease is transmitted by insects and can cause high mortality rates, abortions, and reduced milk and wool production in ruminants. BTV-3, a severe strain of the disease, has also been detected in other European Union (EU) member states, prompting calls for support at the EU level. Belgium is advocating for additional funding to address virus-related economic losses in July and August of nearly €13 million (NZ $23 million), proposing the use of the EU's €450 million (NZ $798 million) Common Agricultural Policy crisis reserve. Original full article here 

Tags: biosecurity; bluetongue virus,; Common Agricultural Policy

Dairy cows grazing in a paddock

Ajinomoto and Danone join forces to tackle GHG emissions from dairy using feed supplement [20 September, Food Ingredients First]

French food multinational Danone has signed a Memorandum of Understanding with biotech company Ajinomoto to use a lysine feed supplement to reduce greenhouse gas emissions from its milk supply chain. AjiPro-L reduces the need for high-protein, high-cost feed, such as soybean meal, by up to 20% while still maintaining milk production. Additionally, the supplement has been shown to decrease nitrous oxide emissions from manure by 25%, which will help Danone achieve its 30% absolute reduction goal for dairy production methane emissions. Danone plans to introduce the supplement to their contract farms in Spain, Brazil, the US, Egypt, and Morocco. Original full article here

Tags: lysine supplement, soymeal, greenhouse gas emissions, milk supply chain

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