Week in Review

In Aotearoa…

Proposed freshwater regulations aimed at reducing nitrogen run-off could result in the price of vegetables increasing by 20%, according to a report commissioned by industry body, Horticulture New Zealand. The report was written by economic consultancy firm NZIER, which reviewed the implications of the proposed regional regulations, examined the practice changes required, and the impact on the supply and affordability of vegetables.

Frozen deer velvet exports to China will resume after being halted due to Chinese regulatory changes in November 2023. The agreement between the Ministry for Primary Industries and Chinese customs authorities provides certainty for the New Zealand deer industry’s $80 million industry, with China previously accounting for 71% of exports.

Southland has recorded its wettest spring in over 50 years with some areas experiencing almost twice the average rainfall within a single month. While conditions are beginning to dry and the NIWA forecasts for the coming months predicts a 60% chance of above average temperatures and below or near average rainfall, the recent wet weather has impacted farmers bottom line who are experiencing below average milk production, light stock conditions and delayed cultivation work.

A supermarket in Christchurch has introduced New Zealand's first avocado scanner to help shoppers determine avocado ripeness, resulting in a 15% increase in sales within two weeks. The scanner at New World Ilam provides one of four ripeness messages, making it easier for customers to choose the perfect avocado with less handling and reduced waste.

In international news...

The Irish Farmers Association has called on the European Union (EU) to immediately suspend imports of Brazilian beef. The EU has published a report that found that Brazil does not comply with the health certification requirements for the non-use of hormones in beef destined for the EU market, with the controls described as ineffective.

British farmers and rural organisations are calling the government to reverse changes to a new inheritance tax regime. From April 2026, assets worth over £1 million (NZ $2.16 million) will have an effective tax rate of 20%, raising concerns about the long-term viability of farm businesses as farming families may not have the cash to pay for the tax without selling off assets.

In the United States (US), the H5N1 avian influenza virus has been detected in a pig for the first time. The non-commercial farm in Oregon has been quarantined to prevent the virus from spreading, as swine can simultaneously contract bird and human viruses, potentially mutating into strains that can infect humans.

Elsewhere in the US, slivered onions are the likely source of an E. coli outbreak linked to McDonald’s Quarter Pounders, resulting in 90 illnesses and 27 hospitalisations. McDonald's removed the onions from the 900 restaurants supplied by the production facility implicated in the outbreak. The fast-food chain says the outbreak is contained, and the chain is working to regain consumer confidence.   

Spotlight Stories

Training Spotlight:

A man using virtual reality headset

Real forestry training on virtual trees [Farmers Weekly, 1 November]

 

Crown Research Institute Scion has developed an interactive, 3D virtual reality training tool to enhance forestry worker training and teach them to make crucial thinning decisions. The tool, part of the Virtual Thinning project funded by Forest Growers Research’s Precision Silviculture Programme, immerses trainees in realistic virtual simulations of New Zealand production forests. The virtual reality tool integrates science, technology and gamification, enabling users to create "levels" for thinning difficulty and adjust variables like stocking rate, tree species and age. The tool will make training new recruits and refreshing experienced workers more engaging, logistically simpler, and safer by eliminating real-world consequences of mistakes. Original full article here

Tags: training; virtual reality; forestry 

Cyber Security Spotlight:

Digital icons and laptop keypad

More than half of all cyber-attacks in agrifood are ransomware, ‘any size’ business at risk, says threat intelligence group [Ag Funder News, 1 November]

A new report by the threat intelligence agency the Food and Ag-ISAC, identified ransomware as the top cyber threat to the US’s food and agriculture sectors, accounting for over half of all cyber-attacks. Despite accounting for 5% of reported ransomware incidents across the US, the food and agriculture sectors faced 2,400 ransomware attacks in 2024, with 138 directly impacting the sector. Ransomware attacks are opportunistic with groups scanning the internet for vulnerable systems to gain access, often targeting intellectual property theft or infrastructure disruption. Awareness is growing in the agrifood industry, but small- and medium-sised enterprises are less prepared for these threats. Original full article here

Tags: cyber threat; ransomware; intellectual property; infrastructure disruption; agrifood

Headline Stories

birds eye view of forests

Supply set to tighten on carbon credits [Farmers Weekly, 4 November]

The final Emission Trading Scheme (ETS) auction of the year is set to occur on December 1, with foresters and traders are hoping it will bring stability. The previous two carbon unit auctions failed to clear, should the same occur in December, the government faces a shortfall of NZ $700million in ETS revenue. However, those in the industry think at least a partial clearance will occur in the December auction as the government has halved the supply of units available by 2030. Whilst the tightening of rules and unit supply within the ETS may create more farmer interest in forestry, total planting is estimated to 33% less in 2025 on this years' area. Original full article here

Tags: emisssions trading scheme; carbon unit supply; December auction

container ship sailing into the sunset

Gulf nations trade deal struck after almost two decades [RNZ, 1 November]

New Zealand has finalised a trade deal with the six Gulf nations ensuring duty-free access for 99% of New Zealand's exports over ten years. The agreement, achieved after nearly two decades of negotiations, will make 51% of New Zealand's exports to the Middle East immediately tariff-free. Trade between New Zealand and the Gulf Cooperation Council (GCC) is valued at over NZ$3 billion annually, which includes NZ$1.8 billion in dairy products, NZ$260 million in red meat and NZ$72 million in horticultural goods. The deal guarantees access for New Zealand businesses to central government contracts in most GCC member countries as well as commitments to labour standards, women's economic empowerment, climate objectives, whilst honouring the Treaty of Waitangi. Original full article here

Tags: trade deal; Gulf Cooperation Council; tariff

Picture of hazelnuts

Hazelnut growers use robotic dogs to scare birds and boost domestic production [ABC Australia, 4 November]

The Australian hazelnut industry has received AU$2 million (NZ$ 2.2 million) from the Rural Research and Development Corporation, Agri Futures Australia, to invest in research and development, including attracting new growers to the industry. Despite strong demand by Australian consumers for hazelnuts, there are not enough growers to supply the domestic market, meaning the majority of hazelnuts consumed in Australia are imported. Areas of research for this funding include the drying and storing of nuts, boosting production, and trialling innovative methods to deter bird attacks. Bird attacks have been a significant deterrent for new growers to enter the industry as they cost the industry millions of dollars in lost production each year. Among the ideas being trialled is the introduction of four-legged robot dogs to walk through orchards and scare off birds. Original full article here

Tags: hazelnut; investment; attraction; bird attacks; robot dogs

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