Analysis

New Lincoln University Council members bring wealth of experience to the table

Co-chair of Silver Fern Farms Limited and Chair of Farmlands Co-operative, Rob Hewett (pictured), and Ecological Economist, Dr Marjan van den Belt, have joined the Lincoln University Council. Mr Hewett brings extensive governance experience in the agricultural and agribusiness sectors to the role, while Dr van den Belt has 25 years combined experience of knowledge brokering and entrepreneurship in research, teaching and consulting across multiple sectors. Silver Fern Farms is New Zealand’s largest meat processor and exporter, exporting to over 60 countries globally. Mr Hewett is also Director, immediate past-Chair, and a shareholder of Silver Fern Farms Co-operative Limited, which is owned by 16,000 farmer shareholders and supplies sheep meat, beef and venison to Silver Fern Farms Limited. He is also the Chair of Farmlands Cooperative Society, New Zealand’s largest diversified rural supplies business with 70,000 farmer shareholders, and a Director of T&G Global Ltd, an Auckland based, globally focused pipfruit and vegetable growing and import-export business. He has governance roles in the energy sector, as a Director for Pioneer Energy Limited, a diversified energy company with generating assets across wind, hydro, biomass, thermal and gas throughout New Zealand. Mr Hewett also has experience in sustainable ventures, owning a 960ha carbon-zero sheep and beef breeding and finishing farm with significant forestry and wind farm interests in Manuka Gorge, South Otago, since 2002. He holds Bachelor’s and Master’s degrees in Commerce from Lincoln University. Dr van den Belt has a life-long passion for ecological sustainability, social and cultural fairness and innovative economic solutions. This is reflected in a unique combination of academic qualifications, inter/trans-disciplinary research, and management and governance experience. A strategic partner with Terra Moana Ltd, she seeks to serve communities of people and organisations who critically engage with a vision for a regenerative society through enterprise, board positions, facilitation, […]

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.”

Low emissions pork sector needs to be considered separately

Proposed reforms to the Emissions Trading Scheme (ETS) must recognise that New Zealand pig farming produces very low emissions. Pig farming currently contributes just 0.2 per cent of New Zealand’s total Greenhouse Gas (GHG) agricultural emissions but pigs have been included in the proposal to price emissions at a farm level. “The research and analysis that has been done to make the decision on pricing agricultural emissions has been based on other farming systems,” says NZPork General Manager David Baines. “However, pigs have monogastric digestive systems, like people, so they naturally produce much lower methane emissions than ruminant animals like cattle or sheep. “Our industry is much smaller, our emissions are comparatively minimal, and our methods of farming are very different. Our farmers are also competing with cheaper imported pork products, which is placing pressure on the industry. “Decisions on emissions pricing need to avoid disproportionately impacting pig farmers by including them in a system that wasn’t designed for them.” NZPork is calling for the Government to consider the impacts of emissions pricing on the pork sector, and to investigate alternative options for supporting emissions reductions. “There is real potential for the pork industry, as a naturally low emission animal protein, to play a valuable role in feeding New Zealanders in our future low emissions economy,” says Mr Baines. “In order to do that, pig farmers need to participate in a system that is fair to them, will help to reduce emissions and will not disproportionately impact them.” Despite already being a low emission sector, pig farmers are committed to reducing GHG emissions. “We are focused on helping our farmers understand the emissions profile of their farm, understand options for emissions reductions at the farm level and supporting them to implement mitigation measures to reduce emissions.”

Global food industry M&A deals total $199.75m in January 2020

Total food industry M&A deals in January 2020 worth $199.75m were announced globally, according to GlobalData’s deals database. The value marked a decrease of 95.7% over the previous month and a drop of 89.7% when compared with the last 12-month average, which stood at $1.94bn. Comparing deals value in different regions of the globe, Asia-Pacific held the top position, with total announced deals in the period worth $199.08m. At the country level, the Philippines topped the list in terms of deal value at $130m. In terms of volumes, North America emerged as the top region for food industry M&A deals globally, followed by Asia-Pacific and then Europe. The top country in terms of M&A deals activity in January 2020 was the US with 11 deals, followed by China with three and Ethiopia with one. In 2020, as of the end of January 2020, food M&A deals worth $199.75m were announced globally, marking a decrease of 70.01% year on year. Food industry M&A deals in January 2020: Top deals The top five food industry M&A deals accounted for 99.7% of the overall value during January 2020. The combined value of the top five food M&A deals stood at $199.08m, against the overall value of $199.75m recorded for the month. The top five food industry deals of January 2020 tracked by GlobalData were: SEA Diner Holdings’ $130m acquisition of Del Monte Philippines The $40.66m acquisition of Shanghai Ground Food Tech by China Mengniu Dairy THADI’s $18.47m acquisition of Hung Vuong The $8.79m acquisition of Calpis Osotspa by Osotspa Public Inner Mongolia Mengniu Dairy (Group)’s acquisition of Inner Mongolia Shengmu High-Tech Dairy for $1.16m.

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, […]

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.

Our Vision is Clear: let’s all improve our waterways, without destroying rural communities

Today’s Essential Freshwater Package shows healthy and swimmable waterways are important to all New Zealanders, including dairy farmers, who share the same aspirations to protect our streams, rivers, lakes and wetlands. DairyNZ chief executive Dr Tim Mackle said the dairy sector and our farmers share the same vision communities, Maori and Government have to protect and improve our freshwater resources. “The Essential Freshwater Package announced today provides a real opportunity for everyone to have their say in this important conversation. We know we can’t farm without healthy water and land, and we reflect this in our Dairy Tomorrow sector strategy, and we need to acknowledge the work that’s already taken place,” said Dr Mackle. “Our dairy sector is already on the journey to improve and protect water quality and our farmers have been working towards this for more than a decade.” Dr Mackle said at the same time it is acknowledged that, in some catchments, community expectations for water quality has not yet been met. Here, further action is required by all land users, including dairy, to halt a decline and longer-term solutions put in place to restore the health of these waterways. “This policy package focuses not only on dairy but all land use activities, including sheep and beef, horticulture and urban activities, reflecting that we all have a part to play in improving our waterways,” said Dr Mackle. “We agree with a focus on ecosystem health and alongside this, options to better track the impact of improvements farmers are making to work towards this. However, we have serious concerns that the proposed approach of reducing nitrogen and phosphorus may not achieve improved ecosystem health and could have a significant impact on the viability of farm businesses and rural communities. We need to understand this better and what it […]

Lessons in mass production

Socrates and his student, Plato, are a perfect example of how good leaders are shaped by observant students. Here, Darcy Simonis, industry network leader for food and beverage at ABB, explains what can be learned from global manufacturing leaders such as China. China, a leader in mass production, has firm plans to build upon its proud history by investing in the robotics and automation industry. However, because labor is plentiful, mass production is not always automated in China at present. Because China’s working-age population is falling significantly, labor costs are increasing by 15-20 per cent year on year, compared to only 1.6 per cent in the US. This opens opportunities for automation across all economies. In 2014, the International Federation of Robotics announced that China was buying more robots than any other country each year, partly due to government funds as part of China’s five-year plan to develop intelligent manufacturing. This trend has continued, in 2015 China bought more robots than every European country combined. Generally speaking, Chinese manufacturers are choosing to buy robots from the same global suppliers as other countries, including ABB, despite there being a number of small Chinese robot manufacturers. “This trend is driven by the Chinese Government´s 2025 initiative to support automation. The country aims to become a leader in automation globally,” explained Joe Gemma, President of the International Federation of Robotics, in February 2017. Given the clear manufacturing focus in several governments’ foreign policies, including UK and US policy, it’s clear that the progress China is making in automating mass production is something that many countries aspire to. But there is also a clear reciprocal relationship, just as there is with Plato and Socrates, which is allowing countries around the globe to benefit from technological advances. History Mass production became possible because technology and […]

How global exporters are keeping up with demand

Regardless of whether Venetian explorer Marco Polo really was the first to introduce pasta to Italy in the thirteenth century, food has been exported for thousands of years. For example, the UK has become heavily reliant on imported goods. In the first half of 2018, it imported £23 billion worth of food, with a proportion of five billion pounds of imported meat. In most towns, there is a corner shop that sells imported foods and supermarkets now have ‘world’ food aisles. With a rise in demand for globally imported foods, how do food manufacturers keep up with the demand for exported produce? Here, Darcy Simonis, industry network leader for ABB’s food and beverage segment, explains. Attitudes to cultures and foods has changed. More than fifteen years ago, global foods were not as widely accessible as they are now. From Asia and eastern Europe, to Africa and the Caribbean, it is now as easy to buy foods from these parts of the world as it is to buy domestic products from the country you live in. Merging travel with cultures Travel has developed significantly, opening more opportunities to experience different cultures and food, and as a result, cultures are merging. The convenience and appeal of being able to explore more places around the world quicker than ever, means that we are subject to a variety of different cuisines that we want to be able to enjoy at home. As we have become more accepting and adventurous to try foods from different countries, it’s become fashionable to embrace other cultures and experience their food, increasing the demand for exported food. Automating your plant With these factors influencing the desire for foods from around the world, companies need to increase production and enable efficient processing to meet the demand. For instance, Hungarian company, […]

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