Week in Review

[7th April 2022]

This week strong financial results and profitability growth are posted by Silver Fern Farms with over 55% increase in profit from $65.4m in 2020 to $103.8m in 2021. Synlait’s profit growth for the 6 months to 31st January was over 300% ($6.4m to $27.9m) though both companies caution that the foreseeable future remains unclear particularly amongst current disruption. It’s also a positive story for Zespri’s Ruby Red kiwifruit showing strong market performance and growth potential; while in Hawkes Bay, MPI have co-invested in a project to examine the feasibility of almond farming.

In insights shared internationally and in New Zealand, indications of impending global food shortages due to climate change and conflict are growing further, with combinations of droughts, flooding and rising costs having a significant impact on food production. This effect is worsened by the conflict in Ukraine, with Russia this week stating it may only supply agri-food products to ‘friendly’ countries following a ban on export of sunflower seed, rapeseed and the introduction of quotas on sunflower oil export. 

 

 

Foresight Focus Series

This week, Lincoln Roper investigates some of the key trends and signals currently being observed in the energy space. In a world of growing conflict, increased geopolitical instability and climate disruption, the future of energy has become a global focus, but also a source of ongoing uncertainty. The food and fibre sector has a opportunity to play in improving energy security, aiding in energy poverty, and building robust and resilient systems of generation.

New Zealand Energy: From reliance to alliance | LinkedIn

Spotlight Stories

Food Innovation Spotlight

Coke serves up its latest conceptual variety: 'pixel-flavored' cola [4 April, Food Dive]

To cater to the gaming demographic, The Coca-Cola Company have teased their upcoming new beverage, “Coca-Cola Zero Sugar Byte”. As part of their ongoing Creations platform, the flavour will be available May 2nd for US consumers and is meant to evoke the taste of pixels.

Tags: Food Innovation 

Biosecuirty Spotlight

Vicious international agriculture pest found, but no need for concern yet [1 April, Stuff]

An egg mass of fall army worms, an invasive moth species with a fondness for crops (particularly cereal crops), was discovered in Tauranga. The pest is estimated to have cost Brazil USD$400 million in crop loss annually between 1975 and 1983. Stuart Anderson, Biosecurity New Zealand’s deputy director-General, said that the pest does not present a significant risk for NZ crops due to NZ's colder climate.

Tags: Biosecurity, Horticulture

Headline Stories

Lion burger? Tiger tacos? Meet the cell cultured start-up working in exotic meats [30 March, Food Navigator]

Unlike typical alternative protein companies focused on producing traditional meats like beef and pork, cell-cultured meat start-up Primeval Foods aims to deliver exotic meats into the market. The start-up proposes that the innovation of cultured meats allows us “to go beyond domesticated species” and to “explore the tastiest, healthiest, and most nutritious [meats]”.

Tags: International, food Innovation

How is the war in Ukraine impacting the global meat industry? [4 April, Food Navigator]

Amidst the Russia and Ukraine conflict, poultry, pork, and beef consumption/production in Ukraine have seen a significant drop. Staffing and logistics issues, poor cash flow, and an outbreak of African swine flu are influencing factors for this decrease. As the world’s 8th largest exporter of poultry meat, Gira (a consultancy and market research firm) predicts that North African and Middle-eastern markets will be impacted the greatest by this disruption.

Tags: International, Red Meat, Pork, Poultry 

NZ milk production falls 8.2% in Feb – Fonterra [4 April, Food Ticker]

Fonterra Cooperative saw an 8.2% decrease in milk production this February in New Zealand compared to February prior year. Mixed weather, above typical rainfall, and drought conditions were heralded as the cause of this decrease. Comparatively, Australian milk production saw a 6.3% decrease in production during January compared to the same time prior year.

Tags: Dairy, Farming Systems, Farmers & Producers

Get in touch

 
Audit – Auckland
Ian Proudfoot
09 367 5882
iproudfoot@kpmg.co.nz
Management Consulting – Wellington
Justine Fitzmaurice
04 816 4845
jfitzmaurice@kpmg.co.nz
Agri-Food – Auckland
Jack Keeys

09 363 3502
jkeeys@kpmg.co.nz
Private Enterprise – Hamilton
Hamish McDonald 

07 858 6519
hamishmcdonald@kpmg.co.nz
Agri-Food – Auckland
Andrew Watene

09 367 5969
awatene@kpmg.co.nz
Consultant – South Island
Genevieve Steven

03 307 0761
gsteven@kpmg.co.nz

Farm Enterprise – South Island
Brent Love

03 683 1871
blove@kpmg.co.nz

Field Notes Administrator
Demosson Metu
+64 9365 4073
dmetu@kpmg.co.nz