Week in Review

In Aotearoa…

A new report from Rabobank outlines the potential impacts the new American administration could have on agricultural trade in Australia and New Zealand. According to the report, increased tariffs on Asian products imported into the United States may strain their economies. This could directly impact demand for Australian and New Zealand agricultural products as Asian countries may have less spending power. 

State-owned farming company, Landcorp Farming Limited (Pāmu), has opened a methane testing facility at its St Kilda farm (Taupō) to evaluate cattle feed conversion efficiency, methane emissions, and test mitigation technologies. The facility will support low-methane breeding programmes, potentially contributing to New Zealand's greenhouse gas reduction commitments while addressing a national gap in low-methane beef cattle breeding by supplying genetics.

The a2 Milk Company has introduced its first dividend policy, targeting a payout of 60%-80% of net profit after tax, with the initial dividend expected in February 2025. This decision reflects the operational progress and the company’s strong balance sheet, with future semi-annual dividends paid to its shareholders dependent on market conditions and financial performance.

Whenua Haumanu, a seven-year regenerative agriculture research programme, hosted a field day with over 200 people in attendance. The programme, led by Massey University and funded by the Ministry for Primary Industries, is in its third year and examines the effects of various pasture mixes and management practises on soil health, as well as looking at pasture growth, nutrient leaching, emissions, and animal production.

In international news...

In Australia, grower-owned research and development body Hort Innovation has partnered with investment firm Artesian to deliver a AU$60 million (NZ$66.8 million) fund to support innovation in the horticulture sector. The world-first “Hort Innovation Venture Fund” will target tech solutions to improve the productivity and sustainability of fruit, vegetable and nut growers. The fund aims to attract domestic and international developers ready to commericalise their idea.

Meanwhile, a new joint research project between Australia and the United Kingdom could enable agricultural drones to navigate across unlimited distance without GPS.  Similar to fingerprint scanners, the new technology scans the changing terrain and matches it to a pre-existing database of the Earth's surface enabling precise and repeatable farming operations, even in environments with poor GPS signals.

French supermarket chain, Carrefour, has announced it will not market meat imported from Mercosur countries (Brazil, Argentina, Paraguay, Uruguay and Bolivia) following protests by farmers against a recent trade deal. The trade agreement would permit an additional 99,000 tonnes of Mercosur beef to enter the European Union tariff free, raising concerns among farmers over the potential impact on domestic production and Mercosur’s ability to meet EU standards and requirements.

Spotlight Stories

Seaweed Farming Spotlight:

fish swimming through some seaweed

Seaweed farming: Hauraki Gulf pilot programme paves way for potential aquaculture industry [RNZ, 23 November]

The Greenwave Aotearoa project has successfully completed its three-year pilot programme, testing native seaweed cultivation in the Hauraki Gulf. The initiative, co-funded by the Ministry for Primary Industries, focused on exploring native seaweed cultivation methods to develop a new aquaculture industry. The pilot successfully demonstrated the feasibility of seaweed aquaculture in New Zealand, even adding Gigartina atropurpurea (red seaweed) to the pilot in the final year. Despite facing challenges with marine pests, supply chain issues, various environmental and biophysical conditions, the pilot proved that the native seaweed, Ecklonia radiata (Brown Kelp) can be farmed in the Hauraki Gulf, especially in multitrophic areas alongside mussels. Original full article here

Tags: seaweed; farming; aquaculture; Ecklonia radiata; Gigartina atropurpurea

Food Waste Spotlight

two pieces of meat on a cutting board

Good Trash and Silver Fern Farms Partner to Transform Food Waste into Culinary Innovation [Newswire, 13 November]

A new circular menu concept, Good Bites, has been developed to address food waste and demonstrate alternative uses for food industry by-products. The initiative, a collaboration between Silver Fern Farms Limited and Good Trash, seeks to upcycle waste meat trimmings into profitable, sustainable menu items reducing the environmental footprint. The initiative has shown how innovative partnerships can address environmental challenges while highlighting new revenue streams and sustainable practices in the food industry. Food waste accounts for up to 10% of global emissions, exceeding the impact of the aviation industry. The concept was launched at a reception previewing Silver Fern Farms' new product range ahead of their seventh consecutive appearance at the China International Import Expo in Shanghai. Original full article here

Tags: by-product; food waste; emissions; innovative

Headline Stories

a farmers market with fresh produce including tomatoes

They CRISPR'ed tomatoes to make them sweet and large [Popular Science, 14 November]

Researchers have used the gene editing technique, CRISPR, to develop tomatoes that are as large as modern varieties, but sweeter. A team at the Chinese Academy of Agricultural Sciences identified two genes, SlCDPK27 and SlCDPK26, that act as "sugar brakes" by degrading enzymes responsible for sucrose production. By deactivating these genes, the tomatoes resulted in 30% more glucose and fructose without affecting size or yield. Researchers say that the new tomatoes represent an improvement over those found in supermarkets, not only in terms of flavour but also in the reduced water content. This is particularly beneficial for processing products like tomato paste, where removing water typically requires time, energy and money.  Original full article here

Tags: tomato; gene editing; sweet; flavour; CRISPR

Fishermen catching fish

EU-funded project Searcular tackling marine plastics with circular fishing gear program [Seafood Source, 22 November]

A three-year project is attempting to reduce marine litter and microplastics through a circular fishing gear programme. The Searcular project,funded by the European Union, is a collaboration with fishers, gear manufacturers, and researchers to explore end-of-life solutions for old gear and develop sustainable gear options for the future. The project focuses on four main areas, the first, reconditioning end-of-life purse-seine nets into tougher, less fray-prone dolly ropes. It is also developing bio-seine ropes with biodegradable polymer coatings to replace traditional steel ropes coated in synthetic fibres. Additionally, the project is testing eco fish aggregating devices made of biodegradable materials to replace the hard plastic ones discarded by purse-seine tuna-fishing vessels. Finally, it aims to implement circular port-based gear solutions by recycling, sorting, and reconditioning gear at ports to prevent old gear from ending up in landfills. Original full article here

Tags: fishing; microplastic; gear; bio-seine; biodegradable; recycle

a food shelf in a grocery store

Blind Box Mania: why Chinese consumers love it [ChinaSkinny, 19 November]

Blind boxes have become a popular solution to the overwhelming range of shopping options available to Chinese consumers. The mystery boxes offer a simple yet addictive concept where consumers purchase them without knowing the exact contents. A recent survey by Sanlian Life Lab and the JD Research Institute for Consumption and Industrial Development highlighted a change in consumer attitudes towards their regular shopping. It revealed convenience and novelty are key motivators when purchasing blind boxes; 40% of respondents to the survey highlighted that blind box sets save time and effort while offering a diverse range of products.  Blind boxes are also often viewed as a more economical option compared to buying individual items. Original full article here

Tags: consumer; shopping; blind box; mystery; convenience

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