Agriculture

Fieldays 2020 pioneering a digital future

The future of Fieldays is secure despite the ongoing developments of the COVID-19 virus. Event organisers, the New Zealand National Fieldays Society, are pioneering an entirely new experience of Fieldays that will ensure its longevity in an age of social isolation and measures to reduce the spread of coronavirus. Visitors will get a taste of the event via a virtual experience on digital platforms until the physical event is able to take place. Following the governmental announcement on Monday 16th of March, to cancel all large gatherings of over 500 people, the Society knew this was an opportunity to adapt the Fieldays event in an innovative way. The virtual experience promises to offer an entirely new spin on the event whilst retaining all it’s treasured parts. From Fieldays Future Focus talks to the beloved Fieldays Innovation programme, the technology will allow for an immersive experience from the comfort of one’s own home. “We understand the economic ramifications would be extensive if Fieldays was cancelled entirely hence why we’ve decided it’s a chance to be innovative in this time of global uncertainty. We’ll still be delivering a world class event on the world stage – albeit a digital version,” Society CEO Peter Nation says. “The event is treasured, not just to the agricultural industry but as Kiwis altogether. Many people save the date a year in advance. We know of people that have never missed a Fieldays! “The NZ agricultural industry is one of the most innovative and dynamic of its kind in the world. Crises are not new to the primary sector. We had M.Bovis a few years back, droughts, the GFC. These are all things farmers and communities have had to endure and ride through. Uncertainty has paved the way for innovation in times where there was no other […]

Food production and exporting remains essential

— ExportNZ says there is no reason for concern about food manufacturing and exporting during the Covid-19 crisis. Concerns are being expressed on talkback and social media about food manufacturers and food exporters continuing to operate during the lockdown. But ExportNZ Executive Director Catherine Beard says supplying food is an essential activity, and all governments around the world – including New Zealand – are prioritising food production, importing and exporting. “New Zealand is part of a global food supply chain which would be disrupted if we started putting restrictions on food exports,” Catherine Beard said. “Food exports are going to help New Zealand weather this economic storm. 70-80% of goods exports are food-related and they are essential to our economy. “Nor is there cause for concern about working conditions, as food manufacturing businesses are already highly regulated and sanitised environments. “Employers will be taking extra care about working conditions to keep employees safe, in line with Government recommendations for safe working conditions in a Covid19 situation. “Any employee with safety concerns should talk to their employer. Employers don’t want sick workers coming to work with even a cold. Employers will be highly vigilant around the safety of their workers as they don’t want to risk a shut down.”

Commission grants clearance for T&G application to acquire Freshmax

The Commerce Commission has granted clearance for Turners & Growers Fresh Limited to acquire 100% of the shares in Freshmax NZ Limited. In reaching its decision, the Commission considered the potential impact of the proposed acquisition on competition in the markets for the wholesale supply of fresh produce, cool-chain distribution services and contract ripening services in New Zealand. Chair Anna Rawlings said the Commission was satisfied that the acquisition is unlikely to substantially lessen competition in any New Zealand market. “We consider that the presence of competing suppliers in the relevant markets, along with the countervailing power of some customers and growers, is likely to constrain the ability of T&G to raise prices or reduce service quality,” Ms Rawlings said. “In addition, we considered whether the acquisition could affect competition by enabling T&G to coordinate with its competitors. We are satisfied that the fluctuating nature of supply and demand for fresh produce and the ability of customers to buy direct from growers would make coordination between the merged entity and other wholesalers unlikely.” A public version of the written reasons for the decision will be available on the Commission’s case register in the near future. Background This decision relates to a clearance application from T&G that we registered on 11 February 2020, the subject transaction which T&G announced to the NZX on 17 December 2019. T&G and Freshmax are both involved in the supply of fruit and vegetables (fresh produce) to retailers and other parties in New Zealand. T&G grows, imports and wholesales fresh produce in New Zealand and exports locally grown fresh produce. T&G also operates a produce distribution network and undertakes contract ripening for customers. T&G is a wholly owned subsidiary of T&G Global Limited. Freshmax imports and wholesales fresh produce in New Zealand. Freshmax provides […]

COVID-19: Farming focused on playing its part

A week into the COVID-19 lockdown, DairyNZ says dairy farmers are settling into life in lockdown but the sector’s focus remains on ensuring support for farms. DairyNZ chief executive Dr Tim Mackle said the Government support for farming as an essential service has been positive to date and is helping ensure all farms can be kept ticking. “DairyNZ is working closely with dairy farmers and agri-partners to ensure all farming families, staff and support services are safe, and that farmers have access to the equipment, services and people they need,” said Dr Mackle. “We all share concerns about the health and economic effects COVID-19 will have on our families, communities and New Zealand, and farmers are working hard to minimise risks to keep their businesses running smoothly. “Farmers by nature are resourceful and dedicated, and are fortunate right now to be making a positive difference at a time of great need, by contributing to our communities and the economy. “As a sector, our immediate priority is ensuring the safety of our 46,000-strong workforce and their support services, so we can continue as an essential service and the responsibilities that come with that.” Dr Mackle said a number of issues are high on DairyNZ’s radar right now. “We are working to ensure dairy farmers have access to the people they need – particularly staff and our migrant workers. We have worked closely with the Government to see certainty provided around immigration and employment. We are pleased to see the visa extension recently announced,” said Dr Mackle. “A second priority area is employment – there is opportunity for New Zealanders to find careers in dairying and help fill staff shortages. We are working with the Government on a programme which may provide options for people to go dairying. “We are also looking […]

Butchers now allowed to process pork

Changes have been made to allow butchers to process pork, only for supply to supermarkets or other processors or retailers that are open, Agriculture Minister Damien O’Connor has announced. “We carefully weighed the risk of allowing butchers to open their shops for retail customers, but the risk of spreading COVID-19 is too great so that will not be allowed”, Minister O’Connor said. “The aim in Alert Level 4 is to minimise retail outlets being open in order to minimise risk to public health. This decision maintains that aim while also ensuring there are no unintended adverse impacts on animals. “Butchers are an essential part of the supply chain in New Zealand for pork. At present, there is not enough capacity to hold surplus pigs on farms or pig carcasses in processing facilities, which could create an animal welfare issue. We need them to operating to ensure that pigs can continue to be processed and are not backing up on farms leading to animal welfare issues. ”The pork industry is domestically focused with limited export to the Pacific Islands so there aren’t as many avenues to offload product into other markets. “The pork industry raised this issue with Government and Cabinet agreed that there were strong enough grounds for a change to be made to address specific concerns in relation to animal welfare. Mr O’Connor says butchers who choose to operate will need to follow health guidelines for distancing in the workplace to ensure staff safety and prevent the spread of COVID-19.

In brief

Sugar – United KingdomThe net importer of sugar, United Kingdom needs to buy around 50% of its national consumption at international markets, accounting for an average of 1MMT of sugar per year. Half of that volume is supplied by the EU and the other half comes from emerging economies. The EU is basically responsible to provide white sugar, where mostly shipments are coming from France, while emerging markets supply raw. The question that is laid out for a Hard Brexit, is whether raw sugar suppliers from least developed countries and America could supplement the British famine for a sweeter taste? That could potentially boost the UK’s refining industry, although the country must underline what is the actual processing capacity and balances with the current and future subsidies it gives to sugar beet farmers (3,000 growers produce home grown sugar). From a few years back (2013) the UK was importing 700,000 mt of raw sugar to process. All the speculations are yet to be unfolded for if the UK would potentially keep its trade agreement with emerging markets or engages Europe’s bloc. On the other hand, the EU is discussing a deal with Mercosur for an additional 180 thousand tonnes of raw sugar imports. The deadline for the transition period is by December 2020, and an extension request shall be given until July this year. Sugar – ThailandThe production of cane sugar is low this year due to the drought. Out of 57 sugar factories in Thailand, only eight factories are still operating. The remaining have no raw material for the feed. Avocado – Peru Coronavirus is affecting some avocado supplies in Europe. As buyers are unaware of when or how the situation is going to be resolved, they have put a halt on their purchases. The situation is generating a […]

2019 a solid year for tractor and machinery sales

Tractor and farm machinery sales were down on 2019 compared to 2018 but hopefully 2020 will see previously deferred purchase decisions realised, says Tractor and Machinery Association (TAMA) president John Tulloch. TAMA statistics showed that during 2019, overall machinery sales were 4382 units compared to 4531 of all types sold in 2018. Mr Tulloch said as these units included everything from $1000 sprayers through $500,000 harvesters, it was more useful for meaningful comparisons to focus on the key machinery areas of grass and forage harvesting. These sales were 1787 units in 2018 compared to 1665 units last year: a decline of about 6.8%. In turn there were 4007 tractor sales in 2019 compared to 4640 in 2018, a drop of 13.6%. “Anything over 4000 tractor units is still a respectable result and showed we had a pretty solid year. And certainly within the machinery sector, we had a better year than many were expecting considering the conditions.” These conditions included uncertainties around government policy on water quality and emissions plus challenges in obtaining finance as banks beefed up their equity reserves. 2020 was also shaping up to be another year of uncertainty with the unknown effects of the coronavirus and a general election. COVID19 could affect buyer confidence and there may be some impact on sourcing components from China although this had not yet occurred. “We just don’t know the actual impact yet. It could end up being positive as New Zealand is known as a safe country for food production. We have stringent and well-recognised food safety systems so could be seen as a preferred supplier. But only time will tell.” Mr Tulloch said the North Island drought conditions would have an effect on farmers although contractors might have a good season as feed reserves have been used up, […]

Fieldays 2020 postponed

Following Prime Minister Jacinda Ardern’s announcement yesterday, regarding the cancellation of large gatherings to prohibit the spread of COVID-19, the New Zealand National Fieldays Society will be postponing the Fieldays event scheduled for 10-13 June 2020. “The Society stands by the governments’ decision to cancel events that draw crowds over 500 in order to stall the spread of COVID-19”, says Society CEO Peter Nation. “We value our loyal stakeholders, including the many exhibitors, suppliers, volunteers, visitors, staff and their extended family, immensely. The whole event is about them. Their health and safety is of utmost importance to us and we take the government’s decision seriously.” Fieldays remains a central part of the New Zealand agricultural community and calendar. It’s a chance for friends to catch up, local and global businesses to network, cutting edge innovations are out on show and education is at the heart of the events’ delivery. “The world may be undergoing major challenges in response to COVID-19, but in this changing environment Fieldays will remain, albeit at a later date.”

The milk of human genius

The end of the cow is near as animal-free milk is likely to decimate the traditional dairy industry within the decade, and plant-based meat is set to upend the beef market Meet Daisy, a typical Australian dairy cow. Daisy is likely to be a Holstein Friesian, whose ancestors grazed the cool lush pastures of northern Germany and the Netherlands. When she was only a day or so old, Daisy would have been separated from her mother, and raised for her first few weeks on bottled milk before being put out to graze. Sometime in her first six months, Daisy would have been “disbudded”, her developing horn buds heat-cauterised without anaesthetic or sedation, to prevent subsequent horn growth. At about two years old, Daisy will give birth to her first calf, having been artificially inseminated nine and a half months previously. Within a day, the calf, if female, will be separated to be raised like her mother as part of the dairy herd. If her calf is a male “bobby calf”, he will be surplus to requirements, with only two fates possible – either to be transported to an abattoir at about five days old, or to be fattened up for a few months then slaughtered for veal. After her calf is taken away, Daisy will continue to produce milk for about 10 months. Then after a few weeks respite she will be ready to conceive again, and the lactation–pregnancy cycle will continue. For the rest of Daisy’s life, she will be a factory on legs, turning grass into something you can put on your cereal or in your coffee. Daisy’s natural lifespan is about 20 years, but she is unlikely to live past six or seven, by which time her milk production will have declined to a point where she […]

Global food industry deals total $665.89m in January 2020

Total food industry deals for January 2020 worth $665.89m were announced globally, according to GlobalData’s deals database. The value marked a decrease of 88.1% over the previous month and a drop of 76.4% when compared with the last 12-month average of $2.82bn. In terms of number of deals, the sector saw a drop of 17.9% over the last 12-month average with 55 deals against the average of 67 deals. In value terms, North America led the activity with deals worth $424.07m. Food industry deals in January 2020: Top deals The top five food deals accounted for 88.4% of the overall value during January 2020. The combined value of the top five food deals stood at $588.66m, against the overall value of $665.89m recorded for the month. The top five food industry deals of January 2020 tracked by GlobalData were: Green Monday, Qatar Investment Authority and Temasek Holdings (HK)’s $225m venture financing of Califia Farms The $161m venture financing of Memphis Meats by Bill Gates, Cargill, CPT Capital, Fifty Years Fund, Finistere Ventures, Future Ventures, Kimbal Musk, Norwest Venture Partners, Richard Branson, SoftBank Group, Temasek Holdings (Private), Threshold Ventures. and Tyson Foods SEA Diner Holdings’ $130m acquisition of Del Monte Philippines The $40.66m acquisition of Shanghai Ground Food Tech by China Mengniu Dairy 301,(US), Almanac Investments, CPT Capital, Greenleaf Foods, New Crop Capital, Rocana Venture Partners and Stray Dog Capital’s venture financing of SeaCo Foods International for $32m.

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