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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.

Overseer appoints Chief Scientist

Overseer has appointed Dr Jacquie Harper (pictured) as its first Chief Scientist as it invests in improving OverseerFM software for farmers and growers. Overseer Chief Executive Dr Caroline Read said the appointment of a Chief Scientist reflects Overseer’s commitment to transparent and scientifically robust development of the tool. “We want to work across the science sector to ensure credibility of the science behind OverseerFM and to support ongoing capture of new science innovation into the software. “It is important that we strike the right balance between ensuring scientific rigour and incorporating new innovation to support New Zealand farmers to achieve the environmental outcomes asked of them.” Dr Harper is leading Overseer’s science strategy and will be focused on embedding a robust, evidence-based science framework that integrates agricultural and environment science and innovation into OverseerFM’s model development pipeline. She will also strengthen engagement with science and industry so Overseer can ensure it remains the best modelling tool for New Zealand’s primary sector. Dr Harper brings extensive expertise in science strategy, evaluation and translation to the role. She has led science and science evaluation across a range of disciplines, including biomedicine, chemistry and engineering and is a current member of the National Animal Ethics Advisory Committee. “The science in this area is rapidly evolving and we need to ensure the continuous improvement of the OverseerFM tool is supported by a transparent and scientifically rigorous process for translating science into practice,” says Dr Harper. “Proactive two-way science and industry engagement is vital to ensure the agricultural and environmental sectors can have confidence in OverseerFM. “The Overseer science strategy will concentrate on engagement, science uptake and evaluation to deliver this balance. “In this first phase, the engagement will focus on working with the sector on the co-development of our science. We will also be […]

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.”

Sustainable Foods Summit Asia-Pacific Key Topics

Hosted in Singapore on 07-08 September, the Sustainable Foods Summit (https://sustainablefoodssummit.com/asia) will feature ethical sourcing, sustainable ingredients, and marketing developments. Asia is suffering a major biodiversity decline caused by deforestation & habitat loss, climate change, and intensive farming. South-East Asia, a biodiversity hotspot, has lost about 15% of its forests in 15 years according to researchers. By highlighting success stories, this 3rd Asia-Pacific summit aims to encourage ethical sourcing and sustainable food production. Some of the key topics to be covered include. 1. Sustainable foods and biodiversity. Various studies show that organic and sustainable cultivation methods encourage biodiversity in ecosystems. The IBIS rice project is one such example. Launched by the Wildlife Conservation Society in 2017, the project involves the production of organic jasmine rice in northern Cambodia. Over 1,000 rice farmer families are benefiting whilst protecting 500,000 hectares of forest and wetlands that are home to 50 endangered wildlife, including the IBIS bird. Nick Spencer, CEO of IBIS Rice, will give an update on the project. He will explain how his enterprise is marketing the organic rice as a premium product to export markets. IBIS rice is currently exported to Germany, Singapore, and Hong Kong, with plans to launch in the UK and Canada. 2. Ethical sourcing of ingredients. A growing number of food and ingredient firms are undertaking ethical sourcing projects in Asia. Some involve environment & biodiversity protection, whilst others focus on social impacts. Givaudan, the world’s largest flavours and fragrances firm, will share its experiences in setting up such projects. Puifung Leung from Fairtrade Hong Kong will highlight the positive impact ethical sourcing can have on producers. 3. Sustainability of seafood. Asian consumers are some of the highest consumers of seafood in the world. However, there are growing concerns about sustainability […]

Hoop Ltd partners with Australian co-packer LJM

New Zealand brand activation specialist Hoop Ltd (Hoop) has formed a joint venture with Australia’s largest pure play co-packer LJM to fill the gap in New Zealand’s co-packing market. The partnership will position the companies as the leading retail co-packing specialists for New Zealand suppliers, with the first run scheduled for May 2020. LJM, employing over 500 people across seven high-tech sites in New South Wales and Victoria (50,000 sqm including Multipack LJM), moves approximately 60 million packaged products across 1000 SKU annually for national and global FMCG, food, beverages, spirits and pharmaceuticals companies. The aim of the joint venture is to be the go-to service provider for all co-packing requirements in the New Zealand market, enabling local suppliers to design and build specialist promotional activities. Chris Hood, Director at Hoop Ltd comments, “The co-packing industry in New Zealand is fragmented. There is a huge gap in the market for a dedicated co-packer to enter and drive the industry forward. LJM’s strong co-packing track record, size, intellectual property and technology combined with Hoop’s marketing and promotional capabilities are expected to be embraced by FMCG brands. “Hoop currently has a national field team of over 350 brand activators and a promotional logistics division. The LJM/Hoop partnership will be able to pre-build stock into displays and the national activator team will support the install and compliance process on the shop floor. A full-service circle of promotional activation will be provided. “There is an evolving need for global brands to rework their stock packing to conform with local regularities and consumer information. Speed to market with full compliance of stock filled displays is a void the new partnership will fill,” added Chris. Lance Miles Director and Founder at LJM, comments, “LJM’s extensive experience in co-packing, combined with Hoop’s client facing marketing capability will […]

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.

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 […]

Energy-Farm-model-Zero-carbon-bill-PIC-3

Zero carbon bill inspires NZ’s first Energy Demonstration Farm

Lincoln University has partnered with the Ministry for Primary Industries (MPI) to build New Zealand’s first Energy Demonstration Farm, with an aim to find sustainable energy solutions to meet the Government’s carbon reduction requirements. The Energy Demonstration Farm is designed to be fossil fuel free and feature solar and wind power, bio-fuel, and energy storage solutions while showcasing the range of technology available and how it can be applied, as well as providing data for research and innovation. Leading the project are Dr Wim de Koning and Dr Jeff Heyl (above) of Lincoln University. They said the Energy Demonstration Farm would be unique in its set-up and a world-first in its scale and scope. “Transitioning to sustainable energy in the agri-food sector is a necessity,” Dr de Koning said. “The Government’s zero carbon legislation has provided a time-frame of 30 years for completion of this transition. “To meet the Government goal of 100% renewable energy by 2035, we need to start making the first major steps with urgency. Dr de Koning said the farm would show the diverse range of sustainable energy production technology currently available, from fossil fuel to circular food production systems. “It’s leading transformation through demonstration – to facilitate sustainable, feasible and bankable solutions.” “The small and medium-sized enterprises operating in the primary industries need a pre-investment proof of concept.” “They don’t have the capacity to make mistakes by investing in the wrong technology. At the Energy Demonstration Farm we can explore alternatives, not all of which may be successful. We can provide that proof so the right choices are made.” MPI Acting Director Investment Portfolio, Cheyne Gillooly, said the Energy Demonstration Farm has the potential for farmers to explore the technology and test it before they make an investment. “Farming is a high tech, high capital […]

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, […]

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