Week in Review
In Aotearoa…
The Government has announced changes to New Zealand’s science, innovation, and technology system. These changes include establishing a Prime Minister’s Science Innovation and Technology Advisory Council, refocusing Crown Research Institutes around the areas of Biosecurity Earth Sciences, Health and Forensic Science, creating a new advanced technology research organisation, disestablishing Callaghan Innovation, and forming a new agency “Invest New Zealand” to attract foreign investment.
Zespri Group Limited and its marine cargo insurers have reached a NZ $24.1 million settlement for a mice infestation that led to a shipment of SunGold kiwifruit being condemned last April. The company believe the settlement is a positive outcome and will return 17-18 cents per tray to growers, covering a substantial portion of the losses.
A recent survey revealed that New Zealanders overestimate farm profitability, with the public believing 40% of farms make a profit compared to the reality of 27%. The data came from a recent Federated Farmers survey which showed that only 27% of farms are profitable while 33% of farms are making a loss and 39% breaking even.
Federated Farmers has partnered with Growing Future Farmers to support young sheep, beef, and deer farmers by offering access to a network of farm trainers and providing free memberships with employment resources. This collaboration aims to address the sector's ageing workforce, attract young talent into farming, and enhance the visibility and impact of agricultural education and advocacy.
In international news...
Over 130 organisations have called on the European Commission to develop an Action Plan for Plant-Based Foods by 2026, highlighting its potential benefits such as improved health, climate protection, and new business opportunities for farmers. The call follows recommendations from the Strategic Dialogue on the Future of European Union Agriculture, which emphasised making plant-based options more accessible and affordable.
In the United Kingdom (UK), The Agricultural and Horticultural Development Board reports that wheat imports remain at record high levels. From July to November 2024, the UK imported 1.45 million tonnes of wheat due to lower domestic production and quality issues.
Russian pork exports increased by 36% to a record 204,600 tonnes over the past year. Pork by-products, primarily exported to China and Vietnam, are driving the revenue increase, but future exports face potential challenges from increasing global protectionism such as tariffs.
- Reform of New Zealand’s science, innovation and technology system
- Zespri accepts settlement for mice infestation damage
- Public perception of farm profitability skewed
- Feds team up to boost young farming talent
- 130+ Organisations Demand EU Action Plan on Plant-Based Foods
- UK wheat imports remain at historically high levels
- 2024 Russian pork exports increased with record numbers
Spotlight Stories
Ocean Freight Spotlight:
Hapag-Lloyd, Maersk alliance may lower freight rates but slow delivery [The New Zealand Herald, 28 January]
Hapag-Lloyd and Maersk's new cooperation initiative, Gemini aims to lower sea freight prices and improve reliability for East-West trades by increasing shipping capacity and reducing port stops. This collaboration, effective February 1, is expected to benefit New Zealand exporters with lower shipping costs and better stability, particularly in the Red Sea region. Gemini aims for an on-time rate of 90%, significantly higher than the 55% rates of Hapag-Lloyd and Maersk. However, there may be longer delivery times due to increased transshipment under Gemini’s hub-and-spoke strategy. Original full article here
Tags: ocean freight, shipping, costs, New Zealand, Hapag-Lloyd, Maersks
Social Media Spotlight:
TikTok's increasing role in revolutionising Tasmanian cherry sales [ABC News, 25 January]
Social media platform, TikTok is increasing the sale of Tasmanian cherries by live streaming and offering deals directly to customers across Asia, similar to old-style TV shopping. Buyers can interact with sellers in real-time, ensuring a dynamic and responsive shopping experience. Chinese importer Jack Wang highlights the platform’s efficiency, with sellers moving over 1,000 boxes of cherries in under an hour and guaranteeing fast delivery. At Lucaston Park Orchards in Tasmania, owner Matt Griggs embraces TikTok as a growing sales avenue, leveraging its hype and views to deliver top-quality fresh cherries to eager Asian customers within 48 hours. Original full article here
Tags: Social Media, sales, cherries
Headline Stories
Northland peanut crop trial shows potential for industry in region [The New Zealand Herald, 25 January]
A three-year feasibility study revealed promising results, suggesting a potential new peanut industry for Northland. The NZ $1 million study, led by Picot Productions and Northland Inc, showed yields comparable to Australia and higher protein content than imported peanuts in Northland peanuts. Benefits include improved crop rotation, sustainability, and reduced import reliance. The project saw successful trials with ongoing efforts supported by partnerships and commercial arrangements to continue peanut cultivation in the region. Original full article here
Tags: peanuts, trials, Northland
Global Blueberry Crisis: Devastating Fungus Rapidly Spreading Across the Globe [SciTechDaily, 14 January]
Researchers at North Carolina State University have traced the cause of global spread of blueberry powdery mildew to the fungus Erysiphe vaccinii, costing the industry up to US $530 million (NZ $937 million) annually. Originating from the eastern United States, the fungus has expanded to several continents in two strains over the past 12 years. A new tool helps farmers identify and manage the disease, with data suggesting that enclosed growing conditions may exacerbate mildew problems. This research aims to better predict, monitor, and control the spread, offering early warnings for key blueberry-producing regions. Original full article here
Tags: blueberries, fungus
Inside the race to create a Japanese encephalitis vaccine for pigs [ABC Australia, 24 January]
The Australian pig industry hope to develop a Japanese encephalitis virus vaccine for pigs which could significantly enhance community protection. Following two cases of the mosquito-borne disease in northern Victoria, calls have intensified for such a vaccine, as the virus impacts both pig populations and human health. There are two companies trialing the vaccine with efforts to expedite its development and approval with an emergency permit underway. The vaccine has been trialed at six farms with 89,000 trial vaccines ready to be distributed, pending approval from the Australian Pesticides and Veterinary Medicines Authority. Original full article here
Tags: pig vaccine, Japanese encephalitis virus
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 |
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