Week in Review

In Aotearoa…

Muka Tangata have launched Te Huamako, a Workforce Development Plan aimed at supporting Māori to participate and thrive within the sector. The Workforce Development Council for People, Food and Fibre's plan outlines a range of actions including qualifications and training that work better for Māori, leadership development and supporting career pathways.

The Dairy Industry Restructuring (Export Licences Allocation) Amendment Bill passed its first reading in parliament and is now in front of the Primary Production Select Committee. Public submissions are sought on the bill, which will change the allocation of dairy export quotas. Currently based on the proportion of milksolids companies collect from New Zealand farmers, the bill will change allocation to be based on the company’s export history.

Ballance Agri-Nutrients has launched a lower-cost service model, SimplyFert. This model allows farmer shareholders to purchase bulk fertiliser without having to pay for additional cost, such as nutrient advice, on-farm visits, or Ballance’s digital support tools.

In international news...

Farmers in the United States are harvesting the largest soybean and second largest corn crops in history. Dry weather is increasing the pace of this year’s harvests, straining farmer’s grain storage, forcing some to store corn outside rather than in storage bins. The influx of crops and storage constraints are challenging growers to consider selling some crops for less than the cost to produce due to four-year low grain prices.

The United Kingdom’s Agriculture and Horticulture Development Board reports that domestic sheep production has fallen 8% from 2023 volumes while import volumes has increased. This decline is due to a significant reduction in the slaughter of adult and clean sheep, while imports from Australia have doubled since August 2023.

The German government has granted €2.6 million (NZ$4.66 million) to develop technology that converts dairy waste into fungi. The collaborative project between the Hamburg University of Technology and food tech startup, Infinite Roots, will upcycle whey, the liquid left over after milk is curdled and strained, into a feedstock for mycelium fermentation.

A Luxembourg-based molecular farming startup has received the first regulatory approval in the United States for its genetically engineered peas. Moolec Science’s peas produce iron-rich bovine myoglobin, a heme protein found in mammalian muscle cells that is responsible for the colour and iron content in meat and seafood.

Spotlight Stories

Biodiversity Spotlight:

silver coins stacked on a pile of dirt

Reversing NZ’s biodiversity crisis could save $270b over next 50 years - analysis commissioned by WWF-New Zealand [The New Zealand Herald, 17 October]

A report commissioned by the World Wildlife Fund (WWF) suggests New Zealand could save over $270 billion in the next 50 years by reversing its biodiversity crisis, but would need to increase its current annual investment from $4 billion to $22.5 billion. The report highlights that more than 4000 native species are at risk of extinction, worsening with climate change. WWF-New Zealand stresses that protecting nature makes both economic and environmental sense and calls for substantial investment and systemic changes, including business accountability for nature impacts. Original full article here

Tags: World Wildlife Fund; biodiversity; climate change; economic, environmental

Succession Spotlight:

A man standing in a field with a tablet

Pāmu invites contracts on 4 of its dairy farms [Farmers Weekly, 17 October]

State-owned enterprise Landcorp Farming Limited, trading as Pāmu Farms, is offering contracting opportunities on four of its dairy farms, including herd-owning sharemilking, variable order sharemilking, and contract milking. This initiative aims to create pathways for farm ownership, develop talent, and provide career progression within the sector. Contracts will commence on 1 June 2025, and Pāmu is targeting high-performing individuals experienced in large-scale, pasture-based dairy farming. The move will also free up capital, focus on core business operations, and improve commercial returns for Pāmu.  Original full article here

Tags: farming; contracting; pasture; dairy; milking

Headline Stories

Close up of a flower on a tree shoot

UV-C Treatment: Viticulture game changer [Rural News, 17 October]
A new system that uses UV-C light could provide a solution for the viticulture and horticulture industries to treat plant pathogens and diseases without chemicals. Vertex Engineers and Agri Automation have developed the UVEX, which uses a UV-C light system mounted on an autonomous vehicle. The UVEX offers an alternative to traditional spraying methods by using light treatment that alters the molecular bond of the DNA within diseases such as powdery mildew and botrytis, destroying their ability to reproduce. Field trials already completed in New Zealand in the 2023-24 season support replacing every second spray application with a UVEX treatment, with an estimated cost savings of approximately $500-$550 per hectare. Original full article here

Tags: horticulture; viticulture; innovation; UV-C light; sustainable

A bunch of cows in a paddock

NZ invokes mandatory talks to settle dairy dispute [Rural News, 18 October]
New Zealand and Canada are entering mandatory negotiations regarding a dairy quota dispute under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) agreement. This follows a ruling in September 2023 that Canada breached its obligations by limiting New Zealand dairy access, and subsequent non-compliance by Canada to rectify the issue. The negotiations are the latest step by the New Zealand government to ensure fair treatment for New Zealand dairy exporters. Canada’s dairy market remains 95% closed to New Zealand dairy exporters outside of the import quotas. The dispute can be resolved if Canada meets its CPTPP obligations, otherwise New Zealand is owed compensation. Original full article here

Tags: Canada; New Zealand; trade; partnership; access; dairy; export

Combine harverster in a wheat field

Global wheat woes boost NZ arable outlook [Farmers Weekly, 17 October]
New Zealand arable farmers could see advantageous increased demand and higher prices for their grain due to poor harvests in Australia and the United Kingdom. Crop damage is expected to significantly reduce Australia's wheat production, while the United Kingdom faces its second-worst harvest on record. Meanwhile, New Zealand farmers are facing uncertainty around maize grain for 2025 due to costs with gas-dependent drying facilities, raising concern for the impacts of this for the dairy, pig and poultry industries. Original full article here

Tags: wheat; harvest; grain; demand

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