Week in Review

In Aotearoa…

The Comprehensive Economic Partnership Agreement was signed by New Zealand and the United Arab Emirates (UAE) further enhancing the NZ$1.3 billion trade relationship. The trade agreement provides preferential access by eliminating duties on 98.5% of New Zealand exports to the UAE immediately, increasing to 99% within three years.  

New research from the University of Canterbury and Fire and Emergency New Zealand explores the impact of hedgerows and shelterbelts in rural Canterbury to understand their influence on wildfire behaviour. The research indicates that using native plantings, creating breaks, and distancing hedgerows and shelterbelts from buildings can mitigate fire risk, leading to the development of a risk index to identify high-risk areas.

Central Otago cherry growers are expecting a profit increase this season due to significantly higher yields, overall better-quality cherries, and strong domestic and international demand. Production has increased by approximately 30-40%, with the industry expecting around 5000 more export tonnes compared to last year.

Meanwhile in Taupō, movement restrictions for livestock have been expanded to limit the spread of bovine Tuberculosis as the number of infected herds increased to five. OSPRI's investigation indicates local wildlife, such as pigs and possums as the primary carriers of the disease, leading authorities to increase testing and precautionary measures across the region.

In international news...

The British Government has announced an import ban on German cattle, pigs and sheep to prevent the spread of Foot and Mouth Disease (FMD). Whilst there are no confirmed cases of FMD in the United Kingdom, authorities have reassured farmers of their robust contingency plans to manage the risk of disease to protect Britain’s food security.

British retailer Tesco has announced plans for two low carbon concept farms to trial innovative farming methods and demonstrate pathways to net zero emissions. These farms will explore technologies such as low carbon fertilisers, alternative fuels, cold storage innovations, and improved soil health and grazing management to promote sustainable practises across their supply network.

Stakeholders in the European Union’s (EU) agriculture and food-producing sector are urging the European Commission to take a balanced approach to any further trade liberalisation with Ukraine, emphasising the need to protect sensitive EU sectors. They are calling for the maintenance of mechanisms like tariff-rate quotas to safeguard EU producers, while cautioning against fully liberalising products not yet impacted by Ukrainian imports.

Australia has exported a record 2.24 million tonnes of red meat including beef, lamb, mutton, and goatmeat to 104 countries in 2024. Meat and Livestock Australia attribute the milestone to consistent international demand, strong domestic supply, and strategic market access primarily through free trade agreements, with the United States and China emerging as the largest markets for Australian red meat.

Spotlight Stories

Biomanufacturing Spotlight:

Man standing in a factoy looking a biomanufacturing

Biosphere emerges from stealth, raises $8.8m for UV-sterilized bioreactors it claims can slash bioproduction costs [AgFunder News, 9 January]

American-based startup, Biosphere, has received US $8.8 million (NZ $15.66 million) in seed funding to develop UV-sterilised bioreactors to reduce biomanufacturing costs. The technology sterilises bioreactors using UV light instead of steam to remove unwanted microorganisms that compromise the quality and safety of the ingredient. Biosphere’s approach aims to revolutionise biomanufacturing by reducing capital and maintenance costs and speeding up sterilisation, potentially leading to more cost-effective production of bioproducts across industries such as nutrition, fuels, and green chemicals.  Original full article here

 

Tags: biomanufacturing; UV sterilisation; steam; 

Sustainability Spotlight:

man standing in a paddock

World's first global carbon insetting programme launched [Farming UK, 10 January]

Agricultural initiative, Regenagri has launched the world's first carbon insetting programme specifically for the global agri-supply chain, allowing farmers to monetise their positive environmental impacts. An initial group of ten producer organisations across six countries have joined the programme, covering over 870,000 acres of regenerative farming practises, including crops like cotton, coffee, and cereals. Farms undergo annual third-party audits to validate their emissions and carbon reduction data, with the aim to expand to 1.5 million acres and generate over 600,000 carbon insetting units by 2025. This programme provides both financial benefits to farmers and an opportunity for supply chains to decarbonise by purchasing carbon insetting units directly from the farms they source from. Original full article here 

Tags: carbon insetting; regenerative farming practises; decarbonise

Headline Stories

A picture of man standing in a paddock of oats

Plantopia turns to sprouted oats for cost-effective production of animal-free dairy [Ag Funder News, 14 January]

Molecular farming startup Plantopia is aiming to launch pilot-scale production of animal-free dairy proteins using sprouted oats by the second half of 2025. Founded in 2018, the Israeli company shifted its focus from lettuce to oats to achieve higher expression levels of all four casein proteins crucial for dairy production. This approach plans to combine the four casein proteins post-extraction to mimic the natural process in cow’s milk. Sprouted oats can rapidly produce these proteins and present fewer regulatory and allergen concerns than soy and corn, while also enabling cost-effective large-scale indoor production. Original full article here

Tags: animal free dairy proteins; dairy productions; sprouted oats.

A picture of beef being packaged

China’s beef with imports blindsides NZ [Farmers Weekly, 15 January]

 

China’s Commerce Ministry has announced an investigation into beef imports from Brazil, Argentina, Uruguay, Australia, the United States and New Zealand, to determine if increased imports have impacted its domestic beef industry. The investigation was sparked by claims from multiple Chinese agricultural associations that a 106% surge in beef imports between 2019 and 2024 had negatively impacted profit margins for Chinese beef farmers which fell from 20% to -12% over the same period.  China has commented that tariffs, or quantitative restrictions on imports, could be considered if the investigation establishes a link between imports and falling domestic beef prices, contradicting the 2008 Free Trade Agreement. Original full article here

Tags: China domestic beef; beef import; investigation; 

A man standing in a field holding a tablet

Meat snacks a new avenue for venison [Farmers Weekly, 15 January]

According to sustainable meat snack company Miti, New Zealand deer farmers have an opportunity to capitalise on the growing meat snack industry, projected to reach US$30 billion by 2030. Miti has plans to add venison to their product line offering farmers a higher-value alternative for their animals before winter.  Supported by grants, collaborations with the University of Otago and funding from the Ministry for Primary Industries, Miti developed a proof of concept to extend meat product shelf life using natural methods. This innovation presents a path for the deer industry to enhance sustainability, decrease environmental footprints, and increase profitability by leveraging high-value, convenient meat snack products. Original full article here

Tags: vension; deer; meat snack industry

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