Week in Review

[26th May 2022]

This week food security concerns internationally and in Aotearoa New Zealand continue to grow. Different version of the headline ‘Upcoming food catastrophe’ have appeared across national and global media, following UN Secretary General António Guterres’s comments on “spectre of a global food shortage that could last for years”, with concerns of hunger rates almost quadrupling due to lag effects of Covid-19, the Ukraine conflict, and various climate change related events.  This week we saw a localised reminder after a ‘freak tornado’ and hailstorm damaged crops across the Horowhenua district. These challenges are compounded by labour constraints, another example of this appearing this week with a 12% yield reduction estimate announced for NZ apple and pears.

Alternative dairy hit headlines this week too, after forecasts demonstrated plant-milk is expected to overtake cow’s milk in Australian cafes, and a new flavoured milk is launched in the US through direct to consumer sales using Perfect Day’s animal-free dairy proteins (created through precision fermentation).

Foresight Focus Series

This week, Matthew Lancaster (KPMG Propagate advisor) investigates the future of gamification in our lives and its possible extension into education, talent acquisition, and waste reduction.

"The way we engage with the world around us is changing rapidly. Gamification is poised to dominate our daily interactions with the environment, other people, and ourselves. My question is – how are you going to engage with gamification?"

Gamification – What are the opportunities when combined with the technology of tomorrow? | LinkedIn

Spotlight Stories

International Spotlight

Food and energy billionaires $453bn richer than two years ago, finds Oxfam [23 May, The Guardian]

A recent report published by international charity Oxfam finds that food and energy billionaires have increased their wallets by USD$453 billion over the past two years from heightened energy and commodity prices. With rising food prices expected to cause an additional 263 million individuals to experience acute poverty, Oxfam recommends governments implement tax reforms to help solve this issue.

Tags: International, Agribusiness, Food security

Dairy Spotlight

Fonterra develops new products for $100b health & wellness market [20 May, Stuff]

Aiming to reach greater profits and to offset recent trends of decreasing milk volumes, the Fonterra co-op plans to enter the NZD$100 billion global health and wellness / dietary supplement market. The co-op anticipates its new products, focused on improving mental health and wellbeing, will be available to consumers over the next few months.

Tags: Food Innovation, Dairy, Food Marketing

Headline Stories

Adding up agriculture’s budget haul [20 May, Farmers Weekly]

In addition to pre-budget announcements of NZD$710 million to reduce agricultural emissions and NZD$110 million to boost the country's biosecurity systems, the government revealed an additional NZD$190 million in this year's budget. The figure comprises NZD$31.6 million for improving and maintaining animal welfare, NZD$40 million for forestry, and NZD$118.4 million for farm advisory services.

Tags: Policy & Regulation, Agribusiness

NZ exporters unlikely to capitalise on US infant formula shortage [19 May, The Country]

As the US continues to face a baby formula shortage due to supply chain issues, Jan Carey (Infant Nutrition Council of Australia and New Zealand CEO) expects the crisis to end over the next two months as operations recover. Factoring in strict US import regulations, Carey is pessimistic about any NZ profits to be made from the crisis.

Tags: International, Dairy, Policy & Regulation

Russian McDonald's buyer to rebrand restaurants [20 May, BBC News]

After more than 30 years of operation in Russia and nearly 850 stores, Mcdonald's announces that its Russian stores will be sold to businessman Alexander Govor. Hinted as coming at a USD$1 billion loss for the company, McDonald's CEO Chris Kempczinski affirmed that the business must stick to its values. Prior year reports show that 9% of McDonald's revenue came from Russia and Ukraine.

Tags: International, Trade & Exports

Get in touch

 
Audit – Auckland
Ian Proudfoot
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Agri-Food – Auckland
Jack Keeys

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Private Enterprise – Hamilton
Hamish McDonald 

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Agri-Food – Auckland
Andrew Watene

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Consultant – South Island
Genevieve Steven

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Farm Enterprise – South Island
Brent Love

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