Week in Review

In Aotearoa…

The latest Global Dairy Trade auction has seen the GDT price index lift by 1.4%, largely driven by a 5% increase in whole milk powder prices. Despite a 7.8% drop in anhydrous milk fat prices, gains in whole milk powder, cheese, butter, and skim milk powder supported prices to reach levels not seen since March 2022.

Legal controls on moving fruit and vegetables in South Auckland’s Papatoetoe suburb will continue until mid-February following the discovery of a single male Oriental fruit fly earlier this month. Authorities have not found additional flies in the surveillance traps to date but will continue to inspect produce for larvae.

The Ministry for Primary Industries has completed the first phase of its investigation into animal welfare breaches in shearing practices. The investigation was initiated by undercover video footage showing mistreatment of sheep on 11 farms.

A new upgrade to the genetic analysis tool for the sheep industry has been launched. The New Zealand Genetic Evaluation Version 6 was launched with new capabilities, including broader genomics application and  more traits, to support better sheep breeding decisions.

In international news...

British supermarket Morrisons is seeking a High Court injunction to stop farmers protesting the Government’s proposed inheritance tax changes, with any protest actions aimed at disrupting their operations. The injunction will prohibit disruptive activities such as entering Morrison’s property or causing obstructions to traffic to their sites.

The European Union (EU) has concluded negotiations with Mexico on an updated trade agreement, modernising their existing agreement. The deal removes high tariffs on EU exports of food and agricultural products and includes binding commitments on labour rights, environmental protection, and dispute settlement, while also protecting traditional European products.

Meanwhile, The European Bank for Reconstruction and Development has approved its new Food and Agribusiness Strategy 2025. The strategy focuses on sustainable transformation in the agrifood sector, emphasising environmental, social, and economic sustainability, private-sector engagement, and increased green investment.

In the United States, USDA’s Agricultural Marketing Service announced a final rule amending the uniform pricing formulas for all 11 federal milk marketing orders (FMMOs). FMMOs establish provisions under which dairy processors buy fresh milk from dairy farmers. Most of the changes will take effect on June 1, 2025, receiving mixed reactions from the dairy industry; some praise fairer pricing, while others, particularly from the organic sector, worry about increased costs and regulatory disparities.

Spotlight Stories

Ultra Processed Foods Spotlight:

a table full of ultra processed foods

Non-GMO Project Launches Non-Ultra processed Foods Verification [Globe Newswire, 16 January]

American nonprofit organisation, The Non-GMO Project has announced a new certification program aiming to combat the rising public health crisis of ultra processed foods (UPFs). According to research by The Non-GMO Project, 85% of shoppers wish to avoid UPFs but face challenges identifying them. The new certification, Non-UPF Verified, will help consumers choose healthier, minimally processed options and will launch its pilot phase in spring 2025. 

Tags: ultra processed foods, sugar, food vertification

Innovation Spotlight:

Picture of a water treatment plant

New tech extracts fertiliser from wastewater urine [Farmers Weekly, 22 January]

Researchers in China have developed a novel method to purify urban wastewater, and extract urea for fertiliser. The team says their scalable, cost-effective electrochemical process offers economic and environmental benefits, with potential applications in water treatment, disinfection, and agriculture. Despite its potential, the technology faces challenges in being applied in urban systems, due to the difficulty of separating urine from effluent, so it is too early to know if the technology could ever be applied to be used in the primary sector. 

Tags: waste water, fertiliser, urea

Headline Stories

bottles of wine

NZ wines take top spot in UK [Farmers Weekly, 17 January] 

In the United Kingdom (UK), New Zealand led wine sales over the holiday period. New Zealand white wines were the top country-of-origin for still white wines. Nielsen IQ data revealed that New Zealand wines maintained a high average price of £8.09 (NZ $17.60) per bottle compared to the market average of £6.69 (NZ $14.54). Overall, New Zealand wine exports in the year ending June 2024 reached NZ $2.1 billion, with exports to the UK totalling NZ $440 million, 21% of the total exports

Tags: United Kingdom, wine, New Zealand, 

Singapore skyline

Singapore food operators with revoked licenses to be banned from reapplying for up to three years [CNA, 8 January]

Singapore has passed a new law updating its food safety regime, which includes disqualifying operators from holding licenses for up to three years if they are revoked due to severe breaches or fraud. The law also introduces stiffer penalties for food-related offences and updates import limits for private food consumption. The legislation is a response to several high-profile food poisoning cases and aims to strengthen Singapore's food supply resilience and safety.

Tags: food safety, legislation, food supply resilience, food related offences

a piglet wth a mother pig

Tesco launches expanded Sustainable Pig Group to boost support [Farming UK, 17 January]

British supermarket, Tesco has expanded its Tesco Sustainable Pig Group (TSPG) to provide long-term support and pricing stability for pig farmers. The new contract arrangements will see farmers receive a combination of a cost of production and market price plus incentives from the retailer. The TSPG will improve animal welfare and sustainability, supporting on-farm investments and reducing stocking densities. This relaunch follows Tesco's increased use of British pork in its products by 20% in the past 18 months. 

Tags: Sustainability, pork, United Kingdom

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