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How climate change will affect food production and security

Julian Heyes, Head of School of Food and Advanced Technology@ISHS_CMFV, Massey University According to the United Nations, food shortages are a threat due to climate change. Are food shortages a major threat to New Zealand due to climate change? Climate change is altering conditions that sustain food production, with cascading consequences for food security and global economies. Recent research evaluated the simultaneous impacts of climate change on agriculture and marine fisheries globally. Modelling of those impacts under a business-as-usual carbon emission scenario suggested about 90% of the world’s population – most of whom live in the least developed countries – will experience reductions in food production this century. New Zealanders are fortunate to live in a part of the world blessed with relatively fertile soils, adequate water supplies and mild temperatures. This gives us a comparative advantage for agriculture and horticulture over many other countries, including our main trading partner, Australia. New Zealand produces more than enough food for its population. Exports exceed local consumption, and climate-change induced food shortages should not be an imminent risk for New Zealand. But behind every general statement like this lies some rather more troubling detail. Overcoming domestic challenges As residents of a developed country, we are accustomed to accessing the world’s resources through supermarkets. New Zealanders take for granted that most foods (even those we do not produce, like rice or bananas) will be available all year round. Asparagus, new potatoes and strawberries are examples of foods New Zealanders may expect to see only at particular times of the year, but if apples or kiwifruit are out of stock, people usually complain. Our expectations are based on imports of products when they are out of season in New Zealand. The availability of those imports may be seriously compromised by climate change. A recent Ministry for the […]

Manufacturing – A year in review

-Dieter Adam, Chief Executive, The Manufacturers’ Network. It is the time again to look back on the year that was – how did our manufacturing sector do, and what were the major developments that impacted our sector in another year of political change, both in New Zealand and around the world? Internationally, issues around trade have dominated much of the economic headlines, with the trade war between the USA and China, but conflict between the USA and Europe not far behind – not to mention Brexit, the trade implications of which appear to be just as uncertain as the question of whether it’ll actually happen or not. While these trade disagreements have not yet had a major impact New Zealand exporters, they remain as a downside risk if they start impacting the wider flow of goods and supply chain which our companies are involved in. The exchange rate experienced some depreciation throughout this year, however, much of this has been eroded over the last month. While 2018 has experienced a more favorable exchange rate than the highs experienced in 2014 and 2016, it remains systemically higher than the average of the previous decade, with the AUD cross-rate remaining as the biggest concern. Domestically in 2018, we have seen a number of policy changes which will impact our sector. The improvements made to the Government’s R&D policy, increasing the proposed tax credit rate to 15% while halving the eligibility threshold to $50,000, have been a good step forward, and the move to use a committee for monetary policy decisions at the Reserve Bank makes solid sense. On the downside, the Employment Relations Amendment bill has been moving through the parliamentary process largely unchanged, with the only material concession being a weakening of the requirement to participate in collective bargaining by introducing […]

Free trade with Korea a boon for Kiwi exporters

– Jack Stenhouse, NZTE Trade Commissioner for South Korea. The eleventh largest economy in the world, the Republic of Korea, is home to some technology and manufacturing giants – names we all recognise, like Samsung, Hyundai, LG and Daewoo. Korea’s economic success is founded on access to world markets, and that’s great news for New Zealand exporters. While it’s still early days, the Korea-New Zealand Free Trade Agreement signed in 2015 looks to be delivering on its promise to boost business and strengthen ties between our two countries. This relationship has been reinforced by President Moon Jae-In’s visit to New Zealand this week. J-Nomics and the rise of consumer spending Korea is our fifth largest goods export market, and two-way trade recently surpassed NZ$4 billion in value. Since the New Zealand-Korea Free Trade Agreement (FTA) came into force three years ago, two-thirds of our exports now enter Korea duty free, a figure that will eventually reach 98 percent. This softening of Korea’s traditionally protective trade policies translates to further opportunities for Kiwi exporters, and Korea’s focus on lifting wages and creating jobs brings more good news. President Moon Jae-In’s economic reforms, dubbed ‘J-Nomics’ aim to raise wages among lower and middle income earners, and increase domestic consumer spending. This, combined with a solid growth outlook, means Korea remains a reliable market for New Zealand businesses. While forestry products account for a decent amount of our exports to Korea (to the tune of almost NZ$500 million), it’s an even more attractive and significant market for our food and beverage exporters, where the FTA has seen trade in the F&B sector increase by 35 percent to top NZ$700 million. We’re winning because Korean consumers value our reputation for safe, reliable and premium products, but there’s definitely room for ongoing marketing investment to increase consumer […]

How do food manufacturers pick those dates on their product packaging?

No one wants to serve spoiled food to their families. Conversely, consumers don’t want to throw food away unnecessarily – but we certainly do. Part of these losses are due to consumers being confused about the “use-by” and “best before” dates on food packaging. Contrary to popular impression, the current system of food product dating isn’t really designed to help us figure out when something from the fridge has passed the line from edible to inedible. Aside from the labelling issues, how are these dates even generated? Food producers, particularly small-scale companies just entering the food business, often have a difficult time knowing what dates to put on their items. But manufacturers have a few ways – both art and science – to figure out how long their foods will be safe to eat. Dates can be about rotating product, not necessarily when it’s safe to eat the food. Consumer confusion Out of a mistaken concern for food safety, 91 percent of consumers occasionally throw food away based on the “sell by” date – which isn’t really about product safety at all. “Sell by” dates are meant to let stores know how to rotate their stock. A survey conducted by the Food Marketing Institute in 2011 found that among their actions to keep food safe, 37 percent of consumers reported discarding food “every time” it’s past the “use by” date – even though the date only denotes “peak quality” as determined by the manufacturer. The most we can get from the dates currently listed on food products is a general idea of how long that particular item has been in the marketplace. They don’t tell consumers when the product shifts from being safe to not safe. Figuring out when food’s gone foul A lot of factors determine the usable life of […]

Discerning customers drive demand for West Coast butter

New Zealand sales of Westgold butter have just soared past the three million mark, on the back of a consumer shift towards more natural fats. Produced in Hokitika by Westland Milk Products, Westgold is marketed as the ‘everyday gourmet butter’. It appeared in nearly a quarter of Kiwi fridges last year, and Westgold’s salted butter was the third most purchased butter in North Island New World supermarkets, according to recent Nielsen data. The three million sales milestone has been achieved in just three years, following the product’s domestic launch in 2015. Westgold has only two ingredients – cream and salt. Recent reports indicate that demand for butter, cream and other dairy-rich products continues to increase globally, in line with consumers’ renewed taste for natural fats. International retail butter sales are expected to expand by 2.9 percent to (US) $19.4 billion in 2018, outpacing the 1.9 percent growth in sales volumes, according to Euromonitor International. Westland General Manager Marketing and Innovation Hamish Yates says discerning consumers appreciate the fact that not all butter is created equal. “Globally, we are seeing an increasing consumer demand for natural, wholesome foods, and a return to the simplicity that products such as butter offer,” says Hamish. “Westland is proudly owned by our shareholders, the vast majority of whom farm on the West Coast. “The West Coast has New Zealand’s highest proportion of jersey and jersey-cross cows, which are renowned for producing milk high in butterfat. We think this, combined with our traditional churning technique, helps make Westgold butter so special. “We also find that there is a real appeal for the West Coast from North Island customers, who associate the region’s rugged beauty with a more natural product,” adds Hamish. One of Westland’s farmer shareholders is John Marshall. Along with his partner Anna, John milks […]

Dirty water and perfect pollens to improve bee health

Newly announced James Cook Research Fellowship recipient, Lincoln University Ecology Professor Steve Wratten, will address one of the major biodiversity challenges facing the future of agriculture: threats to bee populations and their pollination efficacy. “Agriculture has been called the biggest ecological experiment on earth. This global activity occupies 36% of the earth’s arable land and contributes up to 40% of the GDP in developing countries, but less than 1% in developed ones, “ Professor Wratten said. “The idea of ‘sustainable intensification’ is being advocated by the world’s policy makers: a system in which agricultural yields are increased while minimising adverse environmental impact. Agriculture has inadvertent but major negative consequences, including a severe impact on biodiversity, human health and the environment.” Professor Wratten will employ a vital new approach to the understanding and enhancement of pollinator populations. It is based on the recent discovery that the pollen of some flower species does not have an appropriate ratio of nutrients for bee health, particularly with respect to sodium. This element, along with others such as potassium, calcium, magnesium, and iron, are vital for the health of pollinators. “Currently, when floral mixtures are selected to improve bee health, no account is taken of the pollen nutrient composition.” He will analyse the chemical composition of pollens in a range of plant species to assess their suitability to bees and other pollinating insects. He will also develop science-based drinking water for bees, supplemented with a balanced mixture of soil-derived minerals to provide the nutrients appropriate for bee health. These research methods also have the potential to increase bee resistance to pathogens and parasites, including the Varroa mite, thereby addressing some of the causes of bee population decline. This novel approach employed by Professor Wratten can provide world-class management protocols for bees and other pollinating insects […]

Aurecon appoints CSIRO leader to manufacturing practice

Will bring advanced technical capability and strategic thought leadership to Aurecon’s manufacturing business. Global engineering and infrastructure advisory company Aurecon has appointed Dr Ingrid Appelqvist as its new Client Director for Manufacturing. The appointment of Dr Appelqvist, effective September 17, comes as Aurecon grows its manufacturing work in response to Australia’s and New Zealand’s growing importance as a food supplier to Asia. The Australian Trade Commission says that by 2050, 60 per cent of the global demand for food will come from Asia.[1] Dr Appelqvist is a distinguished food scientist with a strong track record as a leader. She joins Aurecon from CSIRO, where she led the Food Structure group at the Agriculture and Food Business Unit – a position that saw her working on healthier foods that retain palatability and nutrition-uptake in the body. Her expertise in food design includes advanced food manufacturing processes and technologies, an expertise she will facilitate for Aurecon’s agri-food clients. Dr Alex Wonhas, Managing Director – Energy, Resources and Manufacturing at Aurecon, said the hiring of Dr Appelqvist will bring advanced technical capability and strategic thought-leadership to Aurecon’s manufacturing business at a time when Australia’s and New Zealand’s agri-business industries are gearing up for growth. “There is growing demand for high-quality and innovative food products from Asian markets. The ANZ agri-food-dairy industry has an opportunity to capture the most lucrative segments of these value-chains,” said Dr Wonhas. “Dr Appelqvist will help our clients implement leading-edge technologies and processes to give them an advantage in these growth markets.” Dr Wonhas said advanced manufacturing techniques – underpinned by new innovative process technologies, sensors, automation and machine learning – could enable higher quality and higher margin products. Aurecon’s food manufacturing practice takes a supply-chain view of the industry and focuses on quality of the product, food safety […]

Sustainability experts join Fonterra’s new advisory panel

Fonterra has appointed an independent Sustainability Advisory Panel to guide the Co-operative as it strives to be a world leader in sustainably produced dairy nutrition. The panel features a diverse range of experts including: Sir Rob Fenwick (Chair), who co-founded the New Zealand Business Council for Sustainable Development and was the first New Zealander knighted for services to both business and conservation. Paul Gilding, a Fellow at the University of Cambridge’s Institute for Sustainability Leadership, author and former global head of Greenpeace. Aroha Mead, a Research Associate specialising in Mātauranga Māori and indigenous knowledge. Bridget Coates, Chairperson of White Cloud Dairy Innovation, Director of Tegel Group Holdings Ltd and former Director of the Reserve Bank of New Zealand. Hugh Logan, who Chaired the Land and Water Forum and has 40 years’ experience in natural resource management. Michelle Pye, owner of large scale agricultural business Pye Group and member of the Fonterra Shareholders’ Council. CEO Miles Hurrell says the panel represents one part of the Co-op’s wider strategy to build sustainability into everything it does. “Our independent panel will help ensure our strategy is relevant to current and evolving sustainability trends while being integrated into commercial objectives,” says Hurrell. “Some of the world’s biggest sustainability challenges are around food and we believe, like many, that the global food system must shift from being part of the problem to becoming a greater part of the solution. Our Co-op is already taking action to support healthy environments and strong communities, but we know we must do more.” Hurrell says collaboration is key. “Environment Minister David Parker and Agriculture Minister Damien O’Connor have just announced the New Zealand Government’s blueprint to improve freshwater quality which is encouraging to see and we support their overall objective. We share their commitment to deliver healthy waterways […]

Fonterra revises 2018/19 forecast

Fonterra Co-operative Group Limited has revised its 2018/19 forecast Farmgate Milk Price from $6.75 per kgMS to a range of $6.25-$6.50 per kgMS and increased its forecast New Zealand milk collection volumes by 1.3 per cent to 1,550 million kgMS. Fonterra Chief Executive, Miles Hurrell, says the change in the forecast Farmgate Milk Price was due to a stronger global milk supply relative to demand at this time. “I know how hard it is for farmers when the forecast Farmgate Milk Price drops, but it’s important they have the most up to date picture so they can make the best decisions for their farming businesses. “We are still seeing strong production coming from Europe, US and Argentina. While the hot weather in Europe has slowed down the region’s production growth, it is still tracking ahead of last year. US milk production is up slightly and Argentina’s is up 6.8%. “Here in New Zealand, the season has got off to a positive start, mainly thanks to good weather and early calving in the South Island. As a result, we have increased our forecast milk collections for the year to 1,550 million kgMS – up from 1,525 million kgMS. Mr Hurrell says that global demand is simply not matching current increases in supply. “At recent Global Dairy Trade (GDT) events, prices for all products that make up the milk price have fallen. Demand for WMP, in particular, continues to grow in China, and it remains strong across South East Asia, but it simply isn’t matching current levels of supply.” Talking about the new move to provide a range for the forecast Farmgate Milk Price, Mr Hurrell says it was part of the Co-op’s intention to provide the best possible signals. “We operate in a hugely volatile global market place, so it is […]

Breakthrough technology could save dairy industry millions

A Milk-Guard device in action at a dairy processing plant, operated by Dr Matthew Jones (CEO, CertusBio). A new device that detects processing losses in dairy plants could save the industry millions of dollars a year and help prevent pollutants from entering waterways. Lincoln University-owned research and development company, Lincoln Agritech Ltd, developed the breakthrough technology and it was then commercialised by Christchurch-based start-up company, CertusBio. The result is a robust, automated biosensor capable of continuous monitoring in commercial operating conditions. Known as Milk-Guard, the device uses a lactose-specific enzyme to measure the percentage of dairy products present in waste streams and processing lines. These percentages are automatically sent to a dairy plant process control room, where operators can monitor them and make changes to the production process if necessary. CertusBio CEO Dr Matthew Jones said that due to the vast quantity of dairy products processed in New Zealand, large amounts of valuable products could be lost quickly. “Given the significant economic return to New Zealand from the dairy industry, it is vital to extract as much value from dairy processing as possible by using reliable, fully automated systems to accurately and rapidly monitor losses in dairy processing waste streams. “Dairy plant operators will be able to improve the resource and energy efficiency of their plant processes by reducing losses of valuable dairy products and ultimately increasing company profitability.” Dr Jones said current loss-monitoring methods were reliant on retrospective testing collected over 24 hours. “Because this testing is done after the dairy products have been processed, it doesn’t allow for adjustments to be made while the plant is operating, so losses can’t be limited in real time.” Two-to-three per cent of all dairy products are lost during processing and while this is inevitable to a certain extent, a significant […]

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