Analysis

Survey of Cereal Areas and Volumes, 1 April 2021

The objective of this AIMI survey of New Zealand (NZ) cereal growers was to determine, as at April 1, 2021: The size of the 2021 NZ harvest of wheat, barley and oats. The sales channels, storage status and unsold amount of the 2021 NZ harvest. The tonnages of carry-over stocks on farms from the 2020 NZ harvest. NZ sowings and sowing intentions of wheat, barley and oats (both milling/malting and feed) for the autumn and winter of 2021. Key points: Rainfall for the 2020-21 season was below average across many regions in New Zealand. Overall, yields were down 3% compared to last season (averaged over all six crops). Also, less hectares were harvested than last season (3% down), and the net result was a 6% decrease in total tonnage compared to last season. On the survey farms, the 2021 harvests of milling wheat and malting barley were 100% completed by 1 April, with feed wheat harvest 99.9% complete and feed barley harvest 95% complete. The harvests of milling oats and feed oats were 71% and 73% complete, respectively, by 1 April. Carry-over stocks (both sold and unsold) of feed wheat and feed barley are low. Unsold stocks on hand of last year’s feed wheat and feed barley crops were 1.6% and 0.3% of the 2020 harvest tonnages, respectively. Stocks of unsold feed wheat from the current harvest are down 26% on unsold stocks at this time last year. Unsold stocks of feed barley are down 24% as compared to this time last year, and unsold stocks of milling wheat are down 18%. Soil moisture levels remain low heading into winter and growers are hoping for rain to improve soil levels and recharge aquifers for the season ahead. Autumn/winter sowings of feed wheat are predicted to be similar (down by […]

Farmers encouraged to tick off new wintering checklist

Farmers preparing to graze livestock on fodder crops this winter are being encouraged to use a new checklist and other practical resources now available sector-wide. The farming sector is focused on improving winter grazing and eliminating practices that impact on the environment and animal welfare. A new wintering checklist and winter grazing plans designed to help farmers make practical written plans for winter are now available from industry good bodies DairyNZ, Beef + Lamb New Zealand and Federated Farmers. A comprehensive winter grazing plan is also available through Ministry for Primary Industries (MPI). Plans are recommended to support good management and farmers can utilise an industry or MPI plan. DairyNZ farm performance general manager Sharon Morrell encourages farmers to make use of the new resources, as it helps take the right steps to continuing to lift winter grazing standards. “Planning for winter and wet weather now is important to deliver good outcomes when adverse weather arrives,” said Sharon. “Farmers will begin moving stock onto crops in the next few weeks, so now is the critical time to ensure all plans are in place for the months ahead. “We are all committed to lifting winter grazing performance and using a wintering checklist and practical plan helps farmers and graziers to do that.” The new wintering checklist helps farmers assess whether they are prepared for winter and highlight any potential gaps. The checklist is supported by other new initiatives, such as webinars, workshops and regular information from industry bodies collaborating on advice to farmers to ensure it is coordinated and consistent. The advice is in line with new guidelines released by MPI recently. “We all want to see the sector perform well this winter, with farmers and graziers making good calls during each phase […]

Synlait Milk Limited (Synlait) resets emissions reduction targets

The targets, covering greenhouse gas emissions from Synlait’s operations (scope 1 and 2), are an upgrade of the company’s inaugural sustainability targets launched in 2018. The reset targets, approved by the Science Based Targets initiative (SBTi), align with the New Zealand Government’s commitment to keep warming to 1.5°C, and will reduce: • Absolute scope 1 and 2 greenhouse gas (GHG) emissions by 45% between FY20 and FY28; and• Scope 3 GHG emissions from on-farm purchased goods and services by 30% per kgMS between FY20 and FY28. Synlait’s target for on-farm (scope 3) emissions is unchanged as it already meets the SBTi’s criteria for ambitious value chain goals. Synlait Director Sustainability and Brand Hamish Reid commented: “This is another big step for Synlait, further boosting our sustainability programme and commitment to people and planet. The upgraded targets ensure that our pledge to lower Synlait’s impact on Papatūānuku is backed by climate science, giving us increased clarity on what action we need to take.” Synlait has had a decarbonisation plan in place since 2018. The programme started with the commissioning of New Zealand’s first large-scale electrode boiler at Synlait Dunsandel. About SBTI:The SBTi is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). It defines and promotes best practice in science-based target setting and independently assesses companies’ targets. You can learn more here https://sciencebasedtargets.org/. About Synlait’s sustainability strategy:To learn more about Synlait’s sustainability strategy you can read the 2020 Sustainability Report or visit https://www.synlait.com/sustainability/.

Agricultural machinery demand continues to be buoyant

Growing demand for agricultural machinery and equipment has kicked 2021 off to fantastic start, according to the Tractor and Machinery Association of New Zealand (TAMA). The momentum began to build during spring and summer of 2020 as the result of increasing customer confidence, said TAMA president Kyle Baxter. Mr Baxter said he was seeing first-hand how strengthened commodity prices were giving farmers and rural contractors the confidence to invest in new equipment. Overall tractor sales were up more than 19 percent for the first quarter (to March 31) compared to 2020. There had been increases across every horsepower sector, with some stand out results in certain sectors such as a 30% increase in the sub 40HP sector plus a nearly 60% increase in the predominantly cropping and contracting segments of 150HP-plus. Investment in the 40Hp-150HP sector, which represents mainly horticulture and dairy, experienced a more modest growth of 8%, but this could increase quickly as new equipment arrived in the country, Mr Baxter said. Border control issues were a continuing challenge, however, affecting both the supply of staff and of equipment. “The current border restrictions have left many TAMA members short-staffed and this is extremely stressful for individual members, staff and customers. We know of course we are not alone in this problem as it’s affecting most industries. As we look to the second half of 2021, with vaccinations and digital travel passports becoming more prevalent, we are hopeful of border control relaxations to assist with the flow of skilled staff for our members.” Continued inbound and outbound supply chain challenges were also impacting members but conditions were on the improve. “Global manufacturing constraints are still very much a reality, as plants continue to work through Covid restrictions in their respective countries, but the flow of equipment into New Zealand is increasing steadily. This will offer much welcome relief for customers who are requiring new pieces of equipment to be put to work straight away. “TAMA members who manufacture in New Zealand are enjoying continued growth in customer confidence and […]

Dairy challenged to keep building momentum

Dairy farmers at DairyNZ’s Farmers’ Forum have been challenged to take their world-leading farm systems and continue toward an increasingly sustainable future. The forum in Waikato and Southland opened on Thursday, April 29, with keynote speaker Climate Change Minister Hon. James Shaw, who acknowledged the sector’s success and where dairy is heading. “We know that New Zealand’s dairy farmers have amongst the lowest carbon footprint per unit of production in the world. That is something for us to build on, to bend the curve on our total emissions output, because it is our total emissions that cause climate change,” said Mr Shaw. “There have been things happening in the sector over the past few years that are changing the way things are done. These are making significant impacts for the farmers adopting them, reducing their emissions whilst at the same time increasing their profitability. Our task now is to roll these innovations and changes in farm practice out right across the country.” “The same thing is true in every sector of the economy. There is a lot of work to be done, but if we get it right, what we’ll see is a cleaner and more productive country.” Leading New Zealand economist Cameron Bagrie also emphasised challenges facing the sector, including climate change and the labour issues, but suggests the farming sector’s sentiment in the next 10 to 20 years should be a glass half full. “Our country’s world leading agricultural sector has made big advances over the past few years, including tidying up balance sheets, and improvements can and should continue,” said Mr Bagrie. “Disruption is here, and coming thick and fast, but the dairy sector knows what it needs to do. We are going to get there.” DairyNZ chairman Jim van der Poel also said we can be […]

Climate change to be discussed at Apiculture Conference

Rotorua will be abuzz with beekeepers and honey producers this June, as the apiculture industry gathers for the annual Apiculture New Zealand Conference and Trade Exhibition. Held from 24-26 June at the Rotorua Energy Events Centre, the theme of Conference 2021 is ‘Healthy Bees, Healthy Industry, Healthy Future’. Apiculture New Zealand chief executive Karin Kos says Conference is a great chance for the apiculture industry to tackle some of the big issues facing the sector. “We have a packed schedule with presentations, panel discussions and practical seminars covering some of the important challenges facing our industry. These include the effect of climate change on pollinators, new research around managing pests like varroa, and the state of the global honey market.” The annual Apiculture New Zealand Conference is highly anticipated by beekeepers, bee scientists, apicultural suppliers and wider industry says Karin. “As always, there will be plenty to learn and share, and lots of opportunities to catch up with beekeepers from across the country. We are particularly aware this year of the importance of the social side of Conference, after COVID-19 meant last year’s event had to cancelled. People are really keen to get together.” As uncertainties around COVID-19 remain, the organising committee are also preparing ‘Plan Bee’, a fully online digital conference, should this be necessary. “We are committed to having Conference this year one way or another,” says Karin. “Our preference, of course, would be the fully on-site face-to-face event, but we know that online events can work really well and allow for lots of interaction between attendees and presenters if this is what needs to happen.” A highlight of Conference is always the National Honey Competition, where honey producers from across the country vie for medals across a range of categories. Karin says beekeepers are already preparing […]

Fooditive’s sweetener a revolution in the food industry?

The words ‘healthy’ and ‘natural’ are not often linked to sugar substitutes, but Fooditive BV wants to change that. Over the past decade, the Netherlands-based food ingredient manufacturer has been pear-suing sustain-apple solutions to combat global sugar intake. In 2018, this became a reality with its plant-based and chemical-free sweetener. Since then, Fooditive has focussed on improving the health status of products that use sugar replacements by providing an affordable alternative to other options on the market. As put by Fooditive’s Product Development Manager, Niki Karatza, “developing a sweetener that could successfully replace sugar in food products required us to first understand the true essence of sugar. We managed that by diving into the science behind sucrose, its taste and its unique functionalities.” This was achieved through an innovative process: the reverse engineering of sucrose. By starting with the end product and working backwards, it allowed Fooditive to analyse the ingredients’ properties and therefore understand how it could mimic the characteristics of sugar in its sweetener. Combining this knowledge with apple and pear waste led to the creation of Fooditive Sweetener, which is 70% as sweet as sugar and does not raise insulin or blood glucose levels. With sustainability and transitioning to a circular economy as Fooditive’s core principles, it obtains the raw materials for its sweetener in two ways. Firstly, it collaborates with Dutch farmers to salvage both organic and non-organic unwanted apples and pears, and secondly, it collects the side streams of these fruits from other production processes. Once gathered, a continuous fermentation process, which means that more sweetener can be yielded in a shorter amount of time, is used to extract fructose and convert it into keto-fructose; this end product is the sweetener. For 2021, founder and food scientist Moayad Abushokhedim has set a weekly goal to produce around 30 […]

New Zealand Food Network launches South Island branch for communities in need

The New Zealand Food Network has today announced the official opening of a second warehouse and distribution centre – in Christchurch, helping to provide an even greater level of support for food insecure communities throughout the region and beyond. One year on from the start of New Zealand’s nationwide lockdown, many Kiwis are still grappling with the financial impact of COVID-19 related job losses, redundancies and reduced hours – and the sharp increase in national food insecurity levels that came with that first lockdown has been largely sustained. Canterbury has been one of New Zealand’s hardest hit regions, with COVID-19 compounding challenges created by the 2011 earthquakes and subsequent recovery efforts. In fact, an analysis of 2018 census data reveals that, even prior to the pandemic, the Canterbury region suffered from some of the highest deprivation levels of anywhere in New Zealand. The impact of long-term border closures has also been felt particularly sharply by communities throughout Otago and Southland, as many businesses, once heavily reliant on international tourism, have been left struggling to stay afloat. New Zealand Food Network CEO, Gavin Findlay, says, “The opening of our Christchurch operation will enable us to better serve these hard-hit communities in a number of ways. “The geographic proximity means we’ll be able to respond more quickly to requests for food from food hubs around the region – providing more immediate support for communities in need. It will also enable us to tap into much-needed additional supplies from food donors throughout the South Island, that we’ve previously been unable to collect from our Auckland site. The NZFN acts as New Zealand’s food rescue facilitator, collecting and safely storing bulk food donations, with food then able to be requested on an as-needed basis (and at no cost) by approximately 40 food hubs around […]

EcoStruxure solution meets Mataura Valley Milk’s requirements

Building the world’s best nutritional business is the ambitious goal that New Zealand dairy company Mataura Valley Milk set out to achieve in August 2016. Now the company’s milk production plant is an impressive accomplishment that comfortably justifies its early ambition. Mataura Valley Milk is now benchmarking innovation and performance for other milk plants. Situated north of Gore at the bottom of the South Island, the state-of-the-art facility was delivered on-time and within budget, an impressive achievement for a greenfield project. “To achieve our goal, we knew that choosing only the best people, partners, and infrastructure was crucial,” says Brent Robinson, Mataura Valley Milk’s Projects Manager. “The success of the project was a consequence of meticulous planning and strategy. We sought out and hired the most skilled staff; we chose construction partners with proven expertise; we purchased best-in-class plant and equipment; and we partnered with industry-leading suppliers and fabricators.” Schneider Electric was one such expert partner that delivered its EcoStruxure solution, tailored to Mataura Valley Milk’s strict requirements for a fully connected and integrated facility with real-time visibility of every process. Connectivity At Mataura Valley Milk’s core is its dedication to customers. “We must have agility around what we produce with no sacrifice of quality. Producing nutritional products is a complex, high reward approach so the plant must be nimble and our expertise unmatched. To confidently make these decisions, visibility and trust in our data is crucial” says Robinson. Schneider Electric’s EcoStruxure Plant solution delivers and provides context to live, real-time data on every process at the plant through AVEVA’s System Platform, Batch Management and Manufacturing Execution System (MES) software. In short, Mataura Valley employees receive any data they require immediately and know they can trust it. Goal Mataura Valley Milk wanted to build a business that could quickly tailor production […]

Coal not in Fonterra’s future

Fonterra has been working on its transition to renewable energy for some time and says it can, and will, get out of coal, with a couple of practical constraints. Nine of its 29 sites use coal and Chief Operating Officer Fraser Whineray says there’s been a lot of progress over the last few years to get the Co-op to a position where it can make this commitment. “With customers in more than 140 countries we have global insights and long-term trends supporting these actions, which have been in progress for some time. “Last year we achieved our target of a 20 per cent reduction in energy intensity from a 2003 baseline after making thousands of improvements across sites here in New Zealand. Lifting energy efficiency is a valuable pre-requisite to larger investments. “More recently we reduced the total quantity of coal we use by 10 per cent when we converted our Te Awamutu site to burn wood pellets and this builds on our experience from converting our Brightwater site in 2018 to co-fire on wood biomass.” Conversion or replacement of existing coal boilers to renewable energy is a significant, logistical, technical and financial undertaking. “We’ve built a lot of capability in-house and with partners in New Zealand and internationally and this provides us with comfort that solutions are sustainable. “It’s important to us that New Zealand continues to be at the forefront of sustainable food production – and getting out of coal is one way we can help with this. “We already have the lowest carbon footprint among major milk producers around the world and we want to continue to build on this competitive advantage,” says Whineray. “While we’re working on this transition, we need to make sure we can deliver on our […]

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