Week in Review

[2nd June 2022]

It’s difficult to pull specific themes from this week’s set of news stories – but we have seen several interesting headlines appear over the past seven days.

In Aotearoa New Zealand, we hear how Fonterra Co-operative Group and a2 milk company have made FDA applications to support the US in their infant milk formula shortages. A world bank report ‘State and Trends of Carbon Pricing’ has suggested New Zealand’s carbon price may need to double to achieve its targets, and new stories pushing for New Zealand to update our gene editing regulation have now been in the headlines for the 10th week in a row.

Internationally, a ransomware attack hits agriculture with a global tractor and machinery manufacturer AGCO severely impacting their production facilities. Concerns are raised about potential access restrictions for red meat into the EU, and Singapore shares it’s ‘urine beer’, a beverage made using filtered waste-water as an environmental success. 

Opportunity of the Week

It’s your last chance to apply for the Sprout agrifoodtech accelerator, a leading 12-week programme for start-up entrepreneurs, with applications closing 4th June.

Find out more and apply here

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

Animal Welfare Spotlight

Chilled out cows make better beef [28 May, Rural News]

By focusing on raising their cows without the typical stressors of cattle life, Hawkes Bay farm Matangi Angus Beef ensures the meat that they produce is of the top most quality. Implementing a stress-free approach has allowed the farm to achieve as high as a six in its beef's marbling score. Farm Manager Jamie Gaddum says everyday stressors like loud dogs and irregular feeding result in lower quality beef.

Tags: Animal Welfare, Farming Systems, Red Meat

International Spotlight

Firmenich and DSM merger creates ‘unparalleled’ leader in nutrition, beauty, and wellbeing [31 May, Food Navigator]

International fragrance and flavour company Firmenich and nutrition and materials company DSM announces their plan to merge, forming DSM-Firmenich. Together the world leader companies reported an EBITDA of GBP$11.4 billion, with GBP$2.7 billion owing to food and beverage during 2021. Expected outcomes of the merger include higher profit margins, increased research and development budgets, and strengthened supply chains.

Tags: International, Agribusiness

Headline Stories

Fake meat was touted as the ‘future of food.’ Why did it fail to deliver? [28 May, The Globe and Mail]

Since its inception, the alternative meat sector has consistently seen significant growth year on year, but with recent global events, the industry is slowing down. In the US, plant-based meat sales growth has decreased from 46% to 0%, and in Canada 34% to 7%. Increasing prices resulting in more money-conscious consumers are heralded as a significant factor of the downtrend due to meat-alternatives typically running higher than just purchasing meat.

Tags: International, Alternative Proteins

Africa warns of food crisis due to Russian blockade of Ukraine’s ports [31 May, The Guardian]

Senegal president and African Union chair Macky Sall calls on the EU to do all they can to remove the Russian blockade on Ukraine ports to prevent the continent’s looming food crisis. With African countries importing 44% of their wheat from Ukraine and Russia, and amongst rising oil and fertilization costs, flow-on effects of Covid-19, and drought in other markets, the continent is left in a distressing situation. Proposals are currently underway to try and solve this issue.

Tags: International, Food Security

Instant grocery delivery’s future looks murky as Getir, Gorillas & Zapp announce cuts [26 May, AgFunder Network]

Receiving the largest amount of capital investments in the agrifoodtech space during 2021 (USD$18.5 billion), the instant grocery service is facing significant slowdowns, with leading brands reporting staff layoffs as high as 13%. Consistent with global downtrends in the technological space, analysts warn that with rising prices, convenience services like home grocery deliveries are deprioritised as consumers become more money-conscious.

Tags: International, Covid-19, Food Retail 

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