Week in Review

In Aotearoa鈥�

The Agri-Women鈥檚 Development Trust (AWDT) has released a survey to help shape their future farm business programmes. The programmes support rural women to gain further knowledge and skills to engage confidently in their farming/growing businesses and create change if needed. The survey takes 15 minutes to complete, the data will be used to help AWDT develop and tailor their programmes.

Fonterra Co-operative Group Limited has narrowed and raised its farmgate milk price forecast, with the midpoint for the 2024/25 season lifting by 50 cents to $9.50 per kilogram of milksolids (kgMS). This follows price increases in the Global Dairy Trade auctions, driven by strong demand from China, Africa, the Middle East and Southeast Asia where domestic production is expected to be below expectations.

Lincoln University and Environment Canterbury have signed a Memorandum of Understanding to promote collaboration on research efforts benefiting the wider Canterbury region. The two organisations are set to work together on various joint research projects with a particular focus on major challenges facing land-based sectors. Examples of topics include agriculture impact on the environment, adaptation and mitigation of climate change and waterways management.

The arable sector will reveal a new industry strategy later this month. The strategy, Future Fields 2030, is a collaboration between Foundation for Arable Research, Federated Farmers, United Wheatgrowers and the Ministry for Primary Industries.

In international news...

The US state of California has introduced new labelling requirements on most beverage products sold in the state to encourage recycling. Beverage containers filled and labelled after January 1, 2024, and sold from July 1, 2025, must include a California Redemption Value (CRV) statement. Consumers will pay a CRV upon purchase and receive a CRV refund when containers are returned for recycling.

A German-based shrimp farming company, Oceanloop, has secured a 鈧�35 million (NZ$63 million) loan to expand their operations. This is to increase existing farm capacity by 12 times, and to build a new 2,000 tonne capacity facility in the Canary Islands. Oceanloop focuses on producing high-quality, sustainable, traceable, and animal welfare-compliant alternative to shrimp imports from outside the EU.

In the United Kingdom, the Competition and Markets Authority issued a report expressing concerns that parents are paying excessively for baby formula. Regulations prohibit the price promotion of baby formula to avoid discouraging breastfeeding but leave little incentives for suppliers to compete in price, therefore, costs tend to be passed on to consumers.   

Spotlight Stories

Food Technology Spotlight:

grocery shelf

[FoodBev Media, 8 November]

Indian-based dairy company MilkyMist has introduced the first long-life probiotic buttermilk, in collaboration with SIG and AnaBio Technologies. The breakthrough development enables probiotics to be packaged in shelf-stable aseptic cartons. This was previously not possible due to ultra-high temperature processing compromising the viability of the probiotics. MilkyMist鈥檚 probiotic product can remain shelf-stable and does not need to be refrigerated due to AnaBio鈥檚 patented encapsulation technology and SIG鈥檚 aseptic filling technology.

Tags: long-life; dairy; buttermilk; probiotics; aseptic carton

Artificial Intelligence Spotlight:

Cobbler working on a piece of leather

[RNZ, 7 November]

A New Zealand tech business, MindHive Global, which uses artificial intelligence to grade cowhides during tanning is expanding to the world鈥檚 largest beef export market, Brazil. As part of the expansion, MindHive Global has signed a Memorandum of Understanding with Brazilian multi-national, JBS, the largest meat processer globally. MindHive鈥檚 technology is currently installed in eight countries, with Brazil becoming the ninth. The technology can assess a hide in six to eight seconds, with outcomes that human graders could not match for consistency and accuracy.

Tags: artificial intelligence; cowhide; tanning; grade

Headline Stories

Silvercoins stacked on some dirt

[Farmers Weekly, 8 November]

New Zealand and Ireland have invested an extra NZ$9.6 million into the Ireland-New Zealand Pilot Joint Research Initiative, bringing the total investment to over NZ$35 million. The joint research initiative between New Zealand's Ministry for Primary Industries and Ireland's Department of Agriculture, Food and the Marine focuses on developing science-based, practical tools to address specific on-farm challenges faced by New Zealand farmers, such as greenhouse gas mitigation and improving methane emission estimates. So far, the initiative has helped enhance greenhouse gas inventories and progress in breeding low-emission livestock.

Tags: research; funding; greenhouse gas mitigation; methane emission

a pair of sheep

[NZ Herald, 12 November]

New Zealand tourism company, Outdoor Gravity, has diversified their business to produce environmentally friendly hot tubs, replacing polystyrene and plastic with recycled native timber, hemp fibres, and New Zealand wool. Traditional hot tubs, made with unsustainable materials, often end up in landfills at the end of their life. In total, NZ$243,000 was invested in the project last year, 60% from Outdoor Gravity and the remainder from the Ministry for Primary Industries. Initial testing by Outdoor Gravity has shown that wool insulation provides an extra degree or two of warming in the tubs, potentially saving around NZ$400 annually in electricity costs. With more testing in various environments, Outdoor Gravity hopes to scale their production soon and sell their product domestically, and eventually internationally.

Tags: hot tub; timber; hemp fibre; wool; insulation; eco-friendly

Picture of pistachios

[AP News, 10 November]

In California, pistachio farming is booming, with the industry generating nearly US$3 billion (NZ$5 billion) in the state last year. Pistachios have become California鈥檚 sixth-largest agricultural commodity in value, surpassing traditional crops like strawberries and tomatoes. Subsequently, the U.S. has also become the world鈥檚 largest exporter, surpassing Iran in the last decade. Unlike other nut crops, pistachio orchards can be sustained with minimal water during drought conditions and rely on wind instead of bees for pollination. Although California almond production is significantly larger by acreage compared to pistachios, almond prices dropped due to an oversupply following the pandemic. This, combined with drought and increasing input costs, resulted in some farmers choosing not to replant ageing almond orchards when it was time to remove them, instead opting for pistachios.

Tags: pistachio; farming; water; acreage; supply; demand; almond

Get in touch

 

Audit 鈥� Auckland
Ian Proudfoot
09 367 5882
iproudfoot@kpmg.co.nz
Agri-Food 鈥� Auckland
Andrew Watene

09 367 5969
awatene@kpmg.co.nz
Management Consulting 鈥� Wellington
Justine Fitzmaurice
04 816 4845
jfitzmaurice@kpmg.co.nz
Private Enterprise 鈥� Hamilton
Hamish McDonald 

07 858 6519
hamishmcdonald@kpmg.co.nz
Farm Enterprise 鈥� South Island
Brent Love

03 683 1871
blove@kpmg.co.nz
Agri-Food - South Island

+64 2788 61744
pauletteelliott@kpmg.co.nz