Analysis

Increasing demand for Greek fruit and veg amid Covid-19

Spain and Italy experience low harvest due to unfavourable weather conditions Tridge, a global sourcing and market intelligence hub for food buyers and suppliers, has reported the latest market trends affecting the food and agriculture sector. This week the biggest news relates to the increasing demand for Greek produce. Greek fruit and vegetable exporters are experiencing prolific sales as the demand for healthier produce has increased due to the impacts of the Covid-19 outbreak. Since, Greece’s measures against the pandemic have been effective, Greek products are seen as safer in comparison to other produce producing countries. Low harvest seasons in Italy and Spain due to a combination of unfavourable weather conditions and labour shortages have also contributed to the rise in demand for Greek produce. Border closures in Spain and Italy have delayed seasonal workers returning to farms – an issue that has rippled across most of Europe. Hoshik Shin, founder and CEO at Tridge said: “The effects of Covid-19 have been felt around the world, and many buyers are seeking alternative suppliers to meet the consumer demand for safer and healthier products. Aside from the impacts of the pandemic, weather conditions can also significantly impact a harvest season, meaning that buyers need more options when sourcing suppliers. Using an online trading platform such as Tridge can open up more choices for both buyers and suppliers, which is especially important when trying to find quality products and good prices”.

Govt backing horticulture to succeed

The Government is backing a new $27 million project aimed at boosting sustainable horticulture production and New Zealand’s COVID-19 recovery efforts, says Agriculture Minister Damien O’Connor. “Our horticulture sector has long been one of New Zealand’s export star performers, contributing around $6 billion a year to our economy. During and post lockdown they’ve become a lifeline for a number of redeployed workers from industries such as tourism, forestry and hospitality,” he said. “Our growers and producers will play a critical role in our economic recovery. The Government knows this which is why in Budget 2020 we committed $38.5 million to help the sector seize further opportunities for future growth. This adds to that investment. Mr O’Connor said A Lighter Touch is a collaboration between government and industry. The aim is to create new growing methods and crop protection measures that reduce chemical use, and spur greater production. “Our high-value overseas consumers want to know the story behind their food. They want greater assurances that the food and fibre they buy is produced in a sustainable way – and they’re willing to pay a premium for it. “We have a great story to tell because our growers are among the most efficient and sustainable in the world. There is an opportunity for New Zealand to become the world’s preferred supplier of plant-based food products. This project will help us seize that opportunity, create more demand, generate higher export returns, and grow rural communities with new jobs.” Horticulture New Zealand Chief Executive Mike Chapman said the importance of biological methods and increasing production was reflected in the investment from the different sectors. “Our growers want to take greater care of the environment but there are only a few viable options for pest and disease control currently. “This is why this project is […]

Turbulence in the meat industry detrimental to consumer confidence

Following the news (June 3rd) that Brazilian labor prosecutors have filed a petition with a local court demanding the closure of a JBS SA pork plant due to the outbreak of novel Coronavirus, a decision that is still pending according to news reports. Carmen Bryan, Consumer Analyst at GlobalData, a leading data and analytics company, offers her commentary on how this could impact consumer confidence: “The challenges JBS are currently facing from Covid-19 are shared across the entire meat sector worldwide; meat processing plants are quickly being labelled as hotspots for the virus and, should this continue, it could deter many consumers from purchasing such products. Confusion around how the virus is spread and where it came from reinforces what we are already seeing as cautionary behavior from some consumers, and may lead them to opt for alternative meat offerings. “It’s worth noting that, as of week 10 of GlobalData’s weekly Covid-19 tracker survey, published on June 3rd, 73% of Brazilian consumers are concerned about the safety of product packaging* – and such concerns will also translate to production further down in the supply chain, particularly as people demand more transparency from brands and operators. Across different sectors, Covid-19 has highlighted the importance of adapting operations to guarantee people and product safety in the face of the crisis – something that the meat industry continues to strive to achieve.”

Difficult road ahead

We are currently in the eye of the Covid-19 storm. In New Zealand life is returning to normal as lockdown conditions ease much faster than was originally deemed feasible. While the end of the disruption is very welcome, the real economic damage this pandemic is causing is only beginning to become evident. In other parts of the world the health impact of the disease has been far more severe than here, and the economies of virtually every country in the world have been significantly impacted by this disease. New Zealand’s exports are highly dependent on economic conditions in the markets in which we sell our produce. Although the whole world is affected, diversification of markets is nonetheless valuable. People have to eat, and our increased exposure to developing markets is a blessing in the current situation as food demand in these economies may prove more resilient than the developed economies where a large portion of the food spend is more discretionary. Global dairy commodity prices have held up exceptionally well so far, but a further weakening in pricing is anticipated, which will put downward pressure on the farmgate milk price. Meat export prices have generally softened despite global supply disruption, with the more expensive, restaurant-oriented cuts unsurprisingly suffering the most. The horticulture and arable sectors have done an outstanding job, as the level 4 lockdown coincided with the harvest of fruit and grain. Kiwifruit is benefiting from global consumers focusing on healthy products, while the fortunes of wine producers vary depending on their typical sales channel. Land sales remain subdued, although the recently released freshwater policy may spur some more sales activity. There has also been a lift in firms looking to invest in the primary sector now that returns from many other sectors are subdued. This has the potential […]

Improving flexibility in food and beverage packaging

The iTRAK 5730 small-frame intelligent track system can improve throughput in multi- product applications Food and beverage manufacturers are constantly under pressure to package a wider variety of products in more types of packaging without compromising productivity. Now they can answer these trends while increasing throughput using the new iTRAK 5730 small-frame intelligent track system from Rockwell Automation. The system uses independent cart technology to support smart, flexible and efficient machines. Independent cart technology offers many benefits over traditional gear, chain and belt conveyors, including unlimited machine flexibility, better traceability and increased uptime. By using magnetic propulsion, the individually controlled carts can quickly start and stop with high precision, which reduces machine wear and is highly energy efficient. The technology also quickly manages changeovers using pre-configured move profiles that can be implemented with the push of a button from an HMI. The iTRAK 5730 system has the smallest footprint within Rockwell Automation’s independent cart portfolio. It has a 50 mm minimum pitch that makes it ideal for primary packaging applications, such as flow wrapping, end load cartoning, and form-fill-and-seal pouching. The system also easily integrates into a manufacturer’s architecture, providing analytics that help optimize energy use, monitor parts wear and reduce downtime. The iTRAK 5730 system extends the flexibility and productivity benefits of iTRAK to meet the growing demand for customised food and beverage products. The technology is truly scalable. Your system can have as little as a 50 mm pitch in a small, standalone machine, or be as large as 100 meters and part of a large, complex line. In addition to delivering a smarter form of motion control, the iTRAK 5730 also offers integrated safety. Features such as safe torque off, Safe Stop 1, a SIL 3, PLe safety rating and the ability to create safety zones help […]

Dairy farmers say ‘yes’ to milksolids levy

Levy paying dairy farmers have voted to continue the sector’s milksolids levy. The one in six-year milksolids levy vote closed on May 30, with provisional results showing 57 percent of the 11,747 levy paying dairy farmers voted – and of those who voted, 69 percent voted ‘yes’ to continuing the levy. Weighting the vote by milksolids production shows even greater representation and support for the levy, with this year’s votes equating to a 67 percent farmer vote and 74 percent voting ‘yes’. DairyNZ, the industry good body for dairy farmers, is funded by the milksolids levy. Chair Jim van der Poel said the vote provides DairyNZ with confidence as it heads into the future. “New Zealand’s dairy sector is progressive and our farmers have illustrated a clear mandate that they want an industry good organisation which represents and supports them to continue as a successful sector,” said Mr van der Poel. “The milksolids levy underpins a wide range of industry good work, including the sector strategy Dairy Tomorrow, and we are pleased this year’s levy vote will enable DairyNZ to continue that work on behalf of dairy farmers.” The milksolids levy vote was a simple ‘yes’ or ‘no’ vote for each levy paying farm owner, sharemilker or leaseholder. “Final results will be available once the total milksolids produced for the 2019/20 season is known in late June. However, we don’t expect any significant change.” A clear indication of farmer support is required for DairyNZ to make a new levy application to the Minister for Primary Industries to approve the ongoing levy for the next six years. “I’d like to thank every dairy farmer who voted. Having a farmer mandate gives us a stronger voice when important decisions are underway, where sector feedback can result in significant change.” Mr van der […]

Essential changes made to freshwater regulations, but issues remain

Sector feedback has resulted in significant change to the Government’s Essential Freshwater package but there is still a sting in the tail, says DairyNZ chief executive Dr Tim Mackle. “Over the last eight months DairyNZ has advocated for an evidence-based and pragmatic approach to freshwater regulation. We are pleased to see Government has listened and made significant changes to some of the more controversial elements of their original proposal,” said Dr Mackle. “Like all New Zealanders, dairy farmers share ambitions for healthy waterways and have invested a lot of time and money for over a decade in improved management systems, upgrading effluent systems, riparian planting and fencing streams to exclude cattle. “Looking at where the policy has landed, it appears that the Government have taken a better approach in terms of scientific rigour and practicality for farmers on the ground.” Dr Mackle said although farmers will have a generation to implement the changes needed, the regulatory settings they see today will influence their confidence to invest for the future. “The Government have parked the dissolved inorganic nitrogen (DIN) measure and removed the impractical and expensive requirement for farmers to move existing fences to meet new stock exclusion guidelines. These two issues were of great concern for farmers so this will provide reassurance.” Dr Mackle said it is pleasing the Government listened to DairyNZ’s guidance on using the nitrate toxicity measure, which will achieve the environmental outcomes with less economic and social disruption. “While we agree that nitrate toxicity is the right measure, we disagree with the standard which has been set. DairyNZ advocated for 3.8 as a significant progression on the old NPS and double the existing standard.” Dr Mackle says the proposed 95% protection standard will severely affect […]

Mycoplasma bovis eradication reaches two year milestone in good shape

New Zealand’s world-first plan to eradicate the cattle disease Mycoplasma bovis is on track the latest technical data shows, says Agriculture and Biosecurity Minister Damien O’Connor. “Two years ago the Government, DairyNZ and Beef + Lamb New Zealand and industry partners made a bold decision to go hard and commit to a 10-year, $880 million programme to eradicate M. bovis to protect our most important sector and the economy. “Recent events have shown what an important moment this decision was for our economy. “Had we thrown up our hands and said ‘it’s too hard’ and left this disease to run rampant, I’m not sure our dairy and beef sectors would have been able to weather the economic storm of Covid-19 and the challenges of drought conditions as well as they have. “Beef and dairy export prices have held up. In fact, there was record demand for our meat. In March total red meat monthly exports topped $1 billion for the first time. This shows that these sectors are well-placed to lead us out of this economic crisis. “As we have with our response to COVID-19, this Government showed leadership, made a tough decision and have managed this eradication effort with discipline and focus, because we knew we were doing it for the economic and social good of the country. “We’ve also shown, again, that we’re able to do what others countries have not in terms of disease eradication efforts. That’s something our farming community should be really proud of. I’m certainly very proud of them. “One key measure of success, the Estimated Dissemination Rate (EDR), shows strongly that we have M. bovis firmly in our sights. If the EDR is greater than one, then the disease is growing. If it’s below one, we’re shrinking the disease. “The EDR is now […]

The five ‘silver linings’ to Covid-19

-Dr Troy Coyle, HERA Director Our current state of play has created a massive disruption to business as usual – but are there any positives to come out from the Covid-19 pandemic? Covid-19 has dramatically impacted us all in many different ways. Of course, most discussions have been on the negatives of Covid-19, but here are five silver linings that we think may help build our resilience in the longer term. After all, it is those that take a negative and turn it into a positive that come out of situations for the better! So lets ensure that it is our NZ metals industry that is taking advantage! The significance of domestic manufacturing has come to the fore from Covid-19. We have had significant disruption to global supply chains. The expected market response is likely to be a shortening of supply chains and a strategy of securing supply chains. This undoubtedly favours local manufacturing. For a long time, manufacturing has not received the attention and support that it should have had – in terms of national security of supply chains and Government support. The PM’s specific mention of manufacturing in her announcement on 20 April indicates the sudden attention to manufacturing as a core requirement of Kiwi’s economic and human wellbeing. There is also likely to be a market change toward greater support for local manufacturing in consumer decision-making. Changes in consumer purchasing are also likely to support increased on-line purchasing. Both of these are, in turn, likely to lead to increased warehousing requirements and this will stimulate warehouse developments, with structural steel playing a role in via, for example, portal frame designs. There will necessarily be an increased focus on the upskilling of our workforce. Businesses were already struggling to attract and retain quality staff and many had gone offshore […]

Jobs aplenty, good pay on dairy farms for COVID unemployed

DairyNZ wants people who have lost jobs due to COVID-19 know there is plenty of work on dairy farms, especially in Waikato, Canterbury, Otago and Southland – and that they might well earn more than in their previous role. With the national unemployment rate forecast to rise sharply due to COVID-19, DairyNZ is encouraging people to consider work on dairy farms in a new Go Dairy campaign that also includes entry level training to help their transition to farming. Immediately, there are 1,000 jobs up for grabs on dairy farms, says DairyNZ’s chief executive Dr Tim Mackle. “As the new season gets under way on June 1, even more positions are likely to become available,” says Dr Mackle. “For people who’re looking for work and like the idea of caring for animals and the environment, there are lots of jobs – and career progression opportunities.” People interested in knowing more about working on dairy farms, where the jobs are and the introductory training can visit godairy.co.nz/career-changers where they can register their interest. While the Go Dairy career changers campaign, which is supported by Federated Farmers, aims to create awareness of the job opportunities, there is a big emphasis on ensuring new staff understand what is involved in farm life. “We want a win-win situation – for new dairy farming employees to be happy and fulfilled in their new lifestyle and jobs, and for farm employers to have great talent working for them,” Dr Mackle says. He adds that dairy also pays one of the highest average wages of all the primary sectors. “For the most part, we’re anticipating interested people will be from the regions where there are big job losses in tourism and hospitality – and where there is dairying close […]

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