Week in Review

In Aotearoa…

A new education programme designed to encourage high school-aged girls into the primary sector has launched in the wider Wellington region. The Girls who Grow programme began as a pilot last year in Otago where 150 students were tasked to develop drought solutions including new filtration systems for dairy farms, and a vitamin mineral capsule project.

Stats NZ’s latest data release shows that overall food prices have increased 1.2% annually, while the price of fruit and vegetables have decreased 8.3%. The fall in the price of fruit and vegetables was impacted by significant decreases in the prices of kūmara, potatoes and onions.

An alternative butter spread has taken out the Supreme Award at the 2024 New Zealand Food Awards. High demand for the Vutter Avo spreadable product, made from pure avocado oil, lead to upscaled production but was done in a way to produce zero waste, reflecting the company's strong commitment to sustainability.

Silver Fern Farms Co-operative have acquired a 12.5% stake in Wool Scour NZ Ltd (WoolWorks) to create new revenue streams for farmers. The investment aims to enhance the sustainability of sheep farming, enabling their farmers to gain more value from their high-quality wool.

In international news...

The Australian federal government has dedicated AU$95 million (NZ$105 million) in preparation for the highly infectious H5N1 avian influenza. The funding will support biosecurity responses, wild bird surveillance, a national communications plan, as well as protect vulnerable species and habitats. Additionally, it will stockpile pandemic flu vaccines in case of animal-to-human infection. 

The European Union (EU) and Mercosur officials have resumed talks regarding the EU-Mercosur Trade Agreement despite opposition from several farmer organisations. The agreement could spark renewed farmer protests in Europe, particularly given the ongoing challenges of the Ukraine conflict and the high costs of energy and fertiliser.

Vietnam and China signed 10 agreements covering various areas, including agricultural cooperation and cross-border QR code payments. Vietnamese Prime Minister, Pham Minh Chinh, requested that China increase agricultural trade with Vietnam, open its market to Vietnamese farm produce, and improve customs clearance at the borders.

The US Department of Agriculture has announced an US$11 million (NZ$18 million) investment to enhance resilience within its dairy sector. The funding will support small to mid-sized dairy businesses in the development, production, marketing, and distribution of dairy products, as well as processing techniques for value-added products. 

Spotlight Stories

Food Science Spotlight:

close up of a flower on a tree shoot

Scientists See Hope in Race to Save the Banana [10 October, WJS]

The global banana industry, which is 99% composed of the Cavendish variety, faces serious threats from two diseases, Tropical Race 4 and Black Sigatoka. This has prompted scientists to urgently develop new, resilient banana varieties. Chiquita Brands International has developed a new disease-resistant banana variety called Yelloway 1, while Australian researchers have created a genetically modified disease-resistant banana. Producers are trying to avoid a repeat of losing an entire variety of bananas, like the Gros Michels variety which was wiped out by the Tropical Race 1 disease in the 1950s. Despite the progress so far, combining disease resistance with desirable traits remains difficult, and consumer acceptance of GMOs is low. Original full article here

Tags: banana; disease; GMO; Yelloway; Tropical Race 4; Black sigatoka

Labelling Spotlight:

a bunch of kiwifruits

Media Release - Kiwifruit continues to climb the ranks in the global fruit bowl [9 October, Zespri]

Global produce labelling company, Sinclair, and Kiwifruit marketer, Zespri Group Limited (Zespri) have introduced a new compostable fruit label. The label underwent rigorous testing, meeting high environmental standards with certifications globally recognised. The label is certified compostable by TÜV AUSTRIA, ABA, and DIN CERTCO for both home and industrial composting and breaks down entirely without leaving any harmful residues. The sticker matches the performance of conventional plastic labels, securely adhering to fruits and providing appropriate product information. Original full article here

Tags: kiwifruit; labelling; compostable; certification; eco-friendly

Headline Stories

coins stacked on some soil

No way to meet NZ’s climate target without overseas help – report [14 October, Farmers Weekly]

According to a report by Motu Economic and Public Policy Research, New Zealand will need to use international deals to achieve its 2030 climate target; otherwise, it will not fulfil its Paris Agreement commitments. Targets set in 2015 demand greater emission reductions than can currently be achieved in New Zealand without intervention. The report urges immediate action to prevent severe climate and economic consequences, emphasising that New Zealand must both cut domestic emissions and fund international reductions. Countries like Switzerland fund reductions abroad, but New Zealand has yet to close any similar deals despite intentions. The cost of these deals is currently projected to exceed $3 billion, potentially quadrupling if delayed until 2030. Original full article here

Tags: climate target, emission reduction; economy, Paris Agreement

cattle in a paddock

Farmers demand rural banking system reform [11 October, Farmers Weekly]

According to Federated Farmers, farmers are incurring up to 1.7% more in borrowing costs than what would be expected in a fair market, due to insufficient rural banking competition, unfair practises, and restrictive Reserve Bank regulations. Federated Farmer's submission to Parliament's banking inquiry calls for urgent reform of the agricultural banking sector. Federated Farmers stress the necessity for increased competition, transparency, and accountability in rural banking. Key recommendations involve aligning the risk-weighted assets of agricultural loans with those of residential mortgages. They propose offering interest-only loans to farmers with adequate equity and classifying farmhouses as residential properties for mortgage purposes to reduce interest rates. Original full article here

Tags: banking; lending; finance; agriculture

a bunch of white grapes

Grape growers in Australia's largest wine region frozen out of financial help [12 October, ABC News]

Farmers in Australia's largest wine-grape growing regions have been refused financial aid by the South Australian government, despite enduring frost damage causing over 80% crop losses. The South Australian Department of Primary Industries described the frost as an "unfortunate" business risk and directed growers to seek assistance from insurance providers. Growers have faced some low-income years so many have not been able to afford preventative measures, like front fans, or crop insurance. Growers are calling on governments for direct support, including zero-interest loans and improved access to the Farm Household Allowance. Original full article here

Tags: wine; front; insurance; satellite imagery; foliage; Farm Household Allowance

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