Week in Review

[28th April 2022]

This week in Aotearoa New Zealand, it’s all about decarbonisation!

NZ$8.75m has been granted by the Government to eight food companies for co-investment in initiatives to reduce fossil-fuel use. These include funding for capsicum growers, meat processors, seafood and a brewery, for investments including environmentally efficient boilers, high-temperature heat pumps, and pulsed electric fields.

The other top theme this week is Dairy both here and around the world. New Zealand’s Government has approved changes to enable Fonterra Co-operative Group’s capital restructure; pro-longed lockdowns in major areas of China are proposed as the reason for a third drop in GDT prices; and European-based business ‘Remilk’ announces the development of the world largest precision fermentation site for alternative milk.

Event of the Week

Next week sees the return of the annual Eat New Zealand Hui (gathering) with the theme #LotsofLittle, “the resilience of small and diverse solutions in such uncertain times.” Hosted by renowned chef Nadia Lim and including special guest Dan Barber, the event will take place over two days online and in person in Christchurch NZ. For more info or to purchase tickets, click here.

Foresight Focus Series

This week in our Foresight Focus Series, Brig Ravera investigates the future of our honey industry. Certain honeys have remarkable medicinal properties and we are seeing huge sums being spent on medical grade honey globally, there is also existing technology that is well along the path to solving many of the challenges that bees face globally. This presents an opportunity for our New Zealand honey industry to revolutionise for the future.

Nectar of the gods: how New Zealand could revolutionize our honey industry from food to medicine | LinkedIn

Spotlight Stories

Farming Systems Spotlight

Ukraine export woes prompt NZ sunflower oil business to amend plans [22 April, The Country]

In expectation of a global shortage of sunflower oil due to the Russia & Ukraine conflict, New Zealand company Pure Oil is preparing to increase its sunflower crop area from 300 hectares to 1000. Ukraine, the world’s largest sunflower oil producer (typically producing 7.5 million tonnes a year), faces significant hurdles, with only 60% of typical sunflower crops planted so far this season and exportation issues due to port blockades by the military.

Tags: Farming Systems, International

Alternative Proteins Spotlight

Global alt-seafood investment doubled in 2021 – GFI [21 April, Foodticker]

In its latest state of the industry report, The Good Foods Institute (a non-profit organisation that promotes alternative animal products), shows USD$175 million was invested into the alternative seafood sector in 2021. The figure represents a 92% increase over 2020 and brings the total investment into the industry since 2013 to USD$313 million. The Asia Pacific region represents the bulk of investments into the sector due to its high position in global fish consumption.

Tags: Alternative Proteins, International, Fisheries

Headline Stories

McDonald's $489 million New Zealand food bill [22 April, Stuff]

Managing Director of McDonald's New Zealand, David Howse, reports the company spent NZD$498 million obtaining goods from domestic suppliers for 2021. Howse states that the fast-food chain obtains nearly 90% of its produce from local businesses for its NZ stores. NZ exports to other McDonald's markets saw an increase in 2021 with NZD$325 million exported overseas, up NZD$118.6 million from 2020, said Howse.

Tags: Food Retail, Trade & Exports

Indonesia’s palm oil export ban sparks concern over global food prices [26 April, The Guardian]

Experts warn of a dramatic increase in vegetable oil prices due to Indonesia’s sudden ban on palm oil exports despite already adverse global conditions plaguing the industry. Palm oil accounts for 60% of global vegetable oil shipments and is used in various products ranging from ice cream to cleaning products. Indonesia, producer of 56% of the world’s palm oil supply, made the decision to combat rising domestic prices.

Tags: International, Trade & Exports

State support for Māori farmers [21 April, Dairy News]

Comprised of 20 Māori land trusts/incorporations and totalling 24,000 hectares of land, the Māori Agribusiness Sheep Milk Collective is to receive NZD$700,000 from the Government as part of its Fit for a Better World roadmap. The funds are to assist in examining the feasibility of sustainable sheep milk at scale and job creation. In 2020 NZ’s sheep milk product exports were estimated at NZD$20 million.

Tags: Agribusiness, Farming Systems

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