Business

Fine foods fuel industry growth

As a country with a reputation for top quality foods and beverages, New Zealand made products and foodservices are in demand – both nationally and from the rest of the world. It’s no wonder, then, that Fine Food New Zealand – the premier trade event for the foodservice, hospitality and retail industries – is already 60% sold out for its 2016 event. On top of a significant number of returning businesses, there are 35 new companies already on board to attend the event – many which will be hoping to capitalise on the significant growth predicted for the food and beverage industry in coming years. In fact, exports are expected to double in value in the next 15 years – following an increase of 11% per annum for the last decade.* To support current topics of interest to the industry, Fine Food NZ 2016 has launched two new zones: the “Gluten Free and Allergen Friendly Zone” with Nutritious Foods, Angel Food, Venerdi and more; and the “Artisan Alley”, to showcase artisan New Zealand goods, including products from Wangapaka Family Dairy, Creative Food Edge Co and Bees Blessing. The show is home to many key industry association events, and will again support competitions run by the Baking Industry Association of New Zealand and NZ Chefs Association, as well as hosting the show’s own Best New Product Awards – celebrating the latest innovations and developments across the food and hospitality industries. Visitors will also be treated to a high dose of caffeine-injected showmanship with the return of the Restaurant Association’s Barista Smack Down, a knock-out style coffee making competition. Brand new to Fine Food NZ is Top Shelf, a boutique drinks festival dedicated to wine, beer, premium spirits, and craft drinks. It will combine fun, education, mixology, sampling and an unrivalled line-up […]

Sheep and beef farmers to benefit from weaker NZD

Beef + Lamb New Zealand’s Economic Service released its New Season Outlook 2015-16 today. It predicts the average sheep and beef farm in New Zealand will see its profit before tax lift to $109,900 this season – 9.6 per cent more than last season, but 3.1 per cent below the five-year average. B+LNZ Chief Economist Andrew Burtt says this is positive news, at a time when the New Zealand economy will benefit from increased farm sector spending. “This season, New Zealand’s 12,300 commercial sheep and beef farmers will spend a total of $4.66 billion on fertiliser, interest, repairs and maintenance and general farm operating costs. This will be welcomed by rural suppliers and communities, particularly at this time.” Much of the extra profit is the result of an 11 per cent lift in cattle revenue, which comes on top of a 12 per cent increase in 2014-15. Meanwhile, sheep revenue is forecast to lift 2.6 per cent, which includes a 4.0 per cent increase in lamb farm-gate prices, to an average of 547 cents per kg. Mr Burtt says international demand is expected to remain strong for beef, while tight sheepmeat supplies in Australia and New Zealand should support prices – although uncertainties remain around China’s demand for sheepmeat. “In this context, the increase in export prices is primarily expected to come from a weaker New Zealand dollar. Over the next 12 months, the New Zealand dollar is expected to weaken against the three major currencies in which New Zealand agricultural products are mostly traded – the US dollar, Euro and British pound. Mr Burtt says extreme weather events last season will affect the production side of the income equation in the new season. “Export lamb production is forecast to decrease by 6.3 per cent in 2015-16. There is a […]

Dairy Graziers proactivity will stave off cost

As the fallout from the steep decline in global diary prices spreads, Crowe Horwath agribusiness specialist Haylee Preston is advising dairy graziers to be proactive to avoid being out-of-pocket this coming season. “With budgets under pressure from severely restricted cash flows, dairy farmers are moving to cut costs, with many looking to tweak their farming systems accordingly,” says Preston. “In many farming operations, supplementary feed and grazing are a significant cost when it comes to production,” indicates Preston. “This means they will be some of the most closely scrutinised costs given the current drive to save.” Preston notes some farmers are looking at reducing feed costs by culling out the bottom 5-10 per cent of their herd. “Older cows, late calvers and poor producers are being culled, reducing the number of cows on the milking platform. This allows more intense farming systems to cut back on supplemental feed costs”. This reduction in the number of cows may mean some dairy farmers will have the ability to winter more stock on-farm, leading to a reduction in demand for off-farm grazing. “There could be a 20 – 25 per cent reduction in cows needing grazing for the 2016 winter, due to more self-sustaining dairy systems and the heavy culling of herds, especially with the favourable beef schedule at the moment,” says Preston. It’s not only the milking herd which might not be heading off the farm for grazing. Preston says “by reducing herd numbers, more farmers may also look at carrying through their young stock to 18 months themselves to cut costs rather than off-farm grazing”. Preston herself is in the dairy support industry and is advising fellow graziers to speak to their agent or herd owners sooner rather than later to understand their requirements for 2016 winter grazing. “It’s important to […]

Retailers’ revenge could slow dairy recovery

While wholesale milk prices may be on their way up, we need to be aware of “retailers’ revenge”. Lincoln University Agribusiness and Food Marketing Programme Director Nic Lees says two things need to happen for the market prices to recover to anywhere near previous levels. “Retail prices need to fall to stimulate consumer demand and global supply needs to be reduced. Both of these take some time to occur. “We are starting to see the milk tap being turned off with farmers’ globally selling cull cows and reducing supplement, and plans for future expansion and conversion are being put on hold.” Low prices are hurting farmers everywhere, for example recently we have seen German dairy farmers driving tractors up to the Bavarian State Chancellery to protest low milk prices. However, he says, over the last six months retailers in New Zealand and internationally have been recovering from the squeezed margins that occurred in 2013 when wholesale milk powder prices were high at over NZ$ 8000/tonne — many manufacturers with retail brands, and the retailers, were losing money over this period. “They are now trying to recoup their losses (with lower, but rising wholesale prices) by holding the retail price, and their margin, for as long as possible, slowing a rise in demand. This is why consumers haven’t seen a major fall in the price of dairy products in the supermarket yet. “When commodity (wholesale) prices are high producers of consumer branded products tend to suffer. When prices fall they exact their revenge by holding retail prices for as long as possible to recoup the losses.” Consumer prices are only just starting to fall so it will take some time for consumers to start drinking more milk, and consuming more cheese, yoghurt and other products, Mr Lees says. New Zealand is […]

Solutions sought for saving summer fruit

In the picture: Senior tutor Roger McLenaghen in action at the workshop. Photo David Hollander. Combating pests and diseases of tree-based crops and summer fruits was the target of the latest MG Marketing ‘Growing You’ workshop held recently at Lincoln. MG Marketing, a co-operative organisation that has over 90 year of successful record of growing, distributing and selling a comprehensive range of fresh vegetables and fruit, in collaboration with Lincoln University, the Biological Husbandry Unit (BHU) and the Bio-protection Research Centre (BPRC) developed workshops for growers and commercial operators from all around New Zealand to advance their scientific knowledge and practical skills. About 20 of MG Marketing’s top growers from diverse operations such as cherries, feijoa, raspberry, citrus, and tree-based fruits, from across New Zealand travelled to Lincoln for the workshop. The main guest speakers were Dr Charles Merfield and Professor Steve Wratten, while senior tutor in the Faculty of Agriculture and Life Sciences Roger McLenaghen assisted in practical demonstrations at the workshop. “These interactions allows us to work directly together with businesses, growers and organisations, which helps us to apply and extend the reach of our work to the globe, in particular in areas such as biocontrol of pests and pathogens, biosecurity and invasion” Lincoln University Business Development Manager Dr Samuel Yu says.

Building a talent pipeline with New Zealand Young Farmers

Being part of a TeenAg club at high school kept Northland teenager Sam Moscrip in school longer than he had intended, and it has opened him up to many new possibilities in the primary industries. The TeenAg club format has been developed by New Zealand Young Farmers as a way for younger people to get started with the movement. Young Farmers are taking a “pipeline” approach, explains NZYF chief executive Terry Copeland, developing a format to suit each age group around the Young Farmers set-up. New Zealand Young Farmers has existed for more than 80 years and is for people aged 16 to 31. This work was initially part of the 7-year Transforming the Dairy Value Chain Primary Growth Partnership (PGP) programme, which is co-funded by the Ministry for Primary Industries, and is now also being funded by another PGP programme, the Red Meat Profit Partnership. The overall aim is to help more young people understand the potential opportunities in the primary industries. Along with the TeenAg clubs for 13 to 18-year-olds, Young Farmers have set up AgriKids clubs for 8 to 13-year-olds. It has certainly worked for Sam. The Agriculture teacher at Kamo High School, Colleen Rushton, suggested that he and some Year 12 mates take part in a TeenAg regional final – a hands-on competition for teenagers interested in agriculture. They got into the top three and took part in the grand final event in Dunedin, where they placed in the top seven. Through this they found out about the TeenAg clubs and set one up at their school. It took off: “We got a pretty strong membership base pretty quickly: it grew to about 35 members within a month.” They made sure the club was “user friendly” for young people. “We streamlined meetings to keep them short […]

NZ Food Awards unveils the cream of the crop in New Zealand’s food industry

The top performers in New Zealand’s food industry have been announced, with 47 products developed by 39 primary food producers, food service providers and ingredient supply companies named as national finalists in the New Zealand Food Awards for 2015. Competition was particularly tough this year with entries up 40% compared to 2014, with almost 150 products from 79 food and beverage producers vying for an award. A broad range of entrants from niche operators to large scale producers will compete to take out the top spot in a number of categories including food safety, export, convenience and gourmet, as well as the ultimate accolade of the Massey University Supreme Award. Finalists in this year’s competition include Fonterra, Chef Series by Josh Emett and Whittaker’s, with a strong presence from Wellington, Nelson and Auckland food manufacturers. Massey University Assistant Vice-Chancellor – External Relations, Penelope Barr-Sellers, says the awards are a fantastic opportunity to showcase new initiatives in New Zealand food and beverage production and manufacturing. “Massey University is proud to own and organise the NZ Food Awards, supporting our biggest export sector by providing a forum to celebrate industry excellence and innovation,” she says. “With a long and proud history of driving innovation in agriculture and food, continuing to support the development and growth of these sectors is integral to what we do.” Judges at this year’s NZ Food Awards have been impressed with the level of innovation in entries across the sector this year. Food writer Nici Wickes and Auckland restauranteur Geoff Scott say the growth and quality of entries is a testament to New Zealand’s thriving food industry. “New Zealand’s food industry is going through a period of growth, with new ideas, new technology and new techniques emerging in the market. The innovation we’re seeing is fantastic for New […]

Meat industry shareholder groups merge to push their case for reform

The two shareholder groups representing Silver Fern Farms and Alliance farmers have joined forces in a bid to encourage the two meat cooperatives to follow suit and work collaboratively. Each shareholder group has separately gained the 5 percent farmer support needed to call special meetings of their respective cooperatives to try and force the boards to investigate the benefits and risks of a merger, though dates have not yet been set for either. Alliance shareholder Jeff Grant said it is best to wait on the outcome of Silver Fern Farm’s current capital raising before holding either meeting. “If the capital raise changes the structure of the cooperative to be a non cooperative or in foreign ownership then it would be pointless having an SGM (special general meeting) at all,” he said. Silver Fern Farms suspended trading of its shares on the Unlisted exchange in late July while it tried to raise $100 million of new capital through investment bank Goldman Sachs. The company said today the capital raise process is continuing though it’s understood from meat industry sources an announcement could emerge by the end of the week. Grant said it seemed sensible to hold the Silver Fern Farms meeting first, followed by the Alliance one. He said the SFF board had indicated this will likely mean the SGMs will be held in late September or October but the timing is ultimately in the hands of the cooperative boards. Silver Fern Farms shareholder Allan Richardson said there remains an opportunity for the two groups to work together over the next couple of months to continue encouraging the two cooperatives to find a pathway forward for farmer shareholders which will give some confidence in the industry. Grant said the farmer feedback is that they want the two cooperative chairmen to take […]

Young Grower from Pukekohe wins national title

Hamish Gates from Pukekohe has been named Young Grower of the Year 2015. Hamish secured his place at the national competition after being named New Zealand Young Vegetable Grower 2015 in April. The carrot washline supervisor works for AS Wilcox & Sons in Pukekohe. The final phase of the competition saw five regional champions battle it out in a series of practical and theoretical challenges that tested their essential industry knowledge and skills. Julian Raine, President of Horticulture New Zealand, said the competition demonstrated the high calibre of ability in the country. “We have come to expect an outstanding level of talent in the competition and this year’s finalists were no exception. The knowledge and skills Hamish showed throughout the competition clearly demonstrated his ability to succeed in this industry. He gave each challenge his all, and it was this commitment that helped him come out on top.” The challenges ranged from an environment and sustainability exercise, to pest and disease identification, and quad bike health and safety. Competitors also had to participate in a leadership panel, and present a three-minute speech on the role of innovation and technology in the industry. Hamish, 24, said winning the national Young Grower of the Year 2015 title was an honour given the standard of the competition. “I feel really privileged to have won the competition. The other growers are at the top of their game and it was a tough challenge, so I am proud to be able to take this award back to Pukekohe,” says Hamish. “I learned a lot from the competition and have gained a huge amount of confidence in my ability as a grower. Hopefully my success will encourage other young people from across New Zealand to get into this great industry.” As Young Grower of the Year […]

Destruction of our soils more serious than climate change

An international soil scientist says restocking the world’s arable soil with carbon is more important than climate change. Dr John Baker says too many people around the world treat soil like dirt when it should be revered because “our lives depend on it.” He believes that because soil isn’t sexy, is not on our radar and is metaphorically beneath us, it’s taken for granted by many farmers and ignored by politicians and city dwellers. “Instead people are besotted by climate change when improving soil health and feeding the world is more important,” he says. “Climate change, while serious, is not going to starve you but the rape of our soil over the last 1,000 years through traditional tillage methods, is already leading to reduced crop yields and will eventually result in famine and malnutrition.” Dr Baker says alarming figures provided by the United National Food and Agriculture Organisation (FAO) and the UK Farmers Weekly suggest the quality of soil is rapidly diminishing. FAO predicts the world, on average, has 60 more years of growing crops left while the Farmers Weekly claims that only 100 harvests remain in the UK. Eighty percent of the world’s food comes from crops. Ironically climate change and soil health are closely related and can benefit each other Dr Baker, who has a MAgrSc in soil science and Ph.D in agricultural engineering from Massey University, New Zealand, explains. “Soil health is strongly influenced by the amount of carbon in the soil. That carbon has been oxidised by conventional tillage (ploughing) and even minimum tillage and discharged as carbon dioxide back into the atmosphere. Tillage does nothing to recapture it,” he says. “As a result the carbon that was in the soil is now in the atmosphere and contributes to climate change when it should be back […]

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