PMAC Weekly Update 12 to 19Th March

PMAC weekly update 12 to 19th March

1. Government agencies: ICPR changes; Primary sector exports forecast to rise to over $42 billion in 2018; Surveillance programme finds Salt marsh mosquito

1. New Zealand News: New Zealand and Colombia building closer ties; New Zealand partnership to drive innovation in perennial fruits; Māori-owned company to breed unique berries; ANZ Agri Focus: Success with avocados is there for the picking; Zespri shareholders vote for change; Apple harvest earliest in recent history; Picking labour shortage declared in Hawke’s Bay; Fruit Day presents organic Posy apples from New Zealand; South Island trade gateway closed by strike;Assistance for cyclone-hit Tasman and Taranaki regions; New Zealand Feijoa growers hit by devastating disease

1. International news: GAIN reports; Bayer publishes crop protection safety studies; China conditionally approves Bayer-Monsanto deal; US: Bayer-Monsanto deal faces antitrust hurdles; Bayer reports progress in talks with Russia over Monsanto deal; Carrefour extend Blockchain use to dairy and meat product ranges; Maersk teams up with Israeli start-up accelerator TheDock; Research into potential of Feijoas to become Australia's next 'superfood'; China: Consumption trends - JD 2018 Report on New Year consumption of fresh food; Yidu Group Pioneers New Model for Chile to China Fresh Fruit Shipment; Rockmelon listeria: Rombola Family Farms named as source of outbreak

Editors comments

Three areas are particularly interesting in this weeks crop of articles.

Most sobering is the effect that the listeria outbreak in Rock Melons is having on the Australian Industry with sales falling 90%. A timely reminder of how important food safety is for the entire industry.

Then there are three detailed gain reports (based on an Euromonitor report ) about cities in China. These are easy to read and provide good background information on Hangzhou, Nanjing and Wuhan.

Last but not least are a number of articles on the glacial progress of the Bayer/ Monsanto amalgamation- a $62.5 billion deal. More countries are agreeing to the deal but all are insisting that the company spin off parts of the existing business to prevent the company having a monopoly in

multiple areas. As a major innovator this new company will have the ability to have either a positive or negative effect on primary industry

1. Agency news

1.1.ICPR changes

The ICPR for China has been updated by

• removing a note regarding Avocado export to China
• removing the Maximum Pest List

See Importing Countries Phytosanitary Requirements If you need any further clarification please contact your IVA.

1.2.Primarysector exports forecast to rise to over $42 billion in 2018

New Zealand's primary industry exports are forecast to rise nearly 11% in the year ending June 2018 to $42.2 billion.

This would be the largest annual increase since 2014, according to the Ministry for Primary Industries' (MPI's) latest quarterly update.Increases are expected across all primary industries.

MPI has said high returns and new policies are likely to create investment opportunities across the primary industries, says Mr Mair.MPI's Situation and outlook for primary industries report provides a snapshot and forecast for New Zealand's major primary sectors.Full article available here

1.3.Surveillance programme finds Salt marsh mosquito

Over the last 2 weeks MPI has found 3 larvae of the Culexsitiens mosquito in the KawauParau Inlet, in the Kaipara harbour north of Helensville.Extensive sampling and trapping in a 5-kilometre area around an initial find identified 2 more larvae when the area was resampled.SeeSurveillance programme finds exotic mosquito and Surveillance programme finds more exotic mosquito larvae

1. New Zealand News

2.1.New Zealand and Colombia building closer ties

Under-Secretary for Foreign Affairs Fletcher Tabuteau represented the New Zealand Government at the formal opening of the New Zealand Embassy in Bogotá last week.He said “New Zealand businesses are already investing in dairy development and water catchment management projects and are moving into the agribusiness, food processing, retail, construction, aviation, and health sector.“New Zealand has contributed $1 million to humanitarian demining efforts in Colombia and is working with The Halo Trust to use New Zealand-developed technology to safely dispose of mines.Full article available here

General

2.2.New Zealand partnership to drive innovation in perennial fruits

AgTech solutions company Autogrow and Plant & Food Research signed a Memorandum of Understanding (MoU) confirming their intention to collaborate in the development of protocols to maximise yield and enable continuous production of perennial fruits.Autogrowis an Auckland company that has more than 20 years experience working with growers around the world, helping them deliver on their projects through automated dosing, climate control and fertigation.
Plant & Food Research are responsible for some of the best cultivars to come onto the global market and their science expertise combined with our knowledge of controlled environment agriculture will take perennial fruits to the next level,” said the CEO of autogrow. Autogrow’s Director of Plant Science and Agronomy Dr Tharindu Weeraratne will head up Autogrow’s team as part of the MoU.Full article available here

2.3.Māori-owned company to breed unique berries

A joint venture company has been created to breed and develop new unique berry varieties to be marketed exclusively by Māori-owned firm Miro Limited Partnership (Miro). Plant & Food Research and Miro signed a 50:50 joint venture agreement . The agreement provides the new company with access to Plant & Food Research berry genetics for the development of proprietary new varieties. The joint venture partners will create a breeding programme for new high-value berry varieties, and Miro will grow, market and sell the berries in New Zealand and globally with support from BerryCo NZ Limited.
The joint venture is a milestone in horticultural entrepreneur Steve Saunders’ vision for Miro, to create a step-change in both the New Zealand berry industry and the regional Māori economy for current and future generations. Miro is owned by over twenty Māori trusts, iwi and entities from across New Zealand.

In simple terms, Miro is aiming to build a business every bit as successful as Zespri. It represents a high-value, market-led, vertically integrated berry export business. There’s no reason why berries can’t be the next billion dollar New Zealand horticulture industry.”Full article available here

Industry news

2.4.ANZ Agri Focus: Success with avocados is there for the picking

The avocado sector is in a good position for growth, with increasing demand outstripping supply, according to ANZ Agri Focus.And that was creating new greenfield development opportunities in the upper North Island."Globally, many countries are eating more and more avocados due to their versatility, trendiness and health benefits. Due to a long lead time for development, supply is struggling to keep up," ANZ rural economist Con Williams said.That growing global demand, along with recent opening up of the Chinese market, highlighted the opportunity for New Zealand to increase the value of the industry from $146 million to the high $200 million mark over the next five years.

Currently the fresh domestic (32 per cent) and Australian market (56 per cent) accounted for the lion's share of the crop. Australia accounted for around 80 per cent of export revenue, with Japan (4 per cent), Singapore, Thailand and Korea (2 per cent apiece) being the other major markets.

"China (where the first New Zealand avocados arrived last month) has long been viewed as a significant opportunity, even though many Chinese palates are unfamiliar with the fruit

Initial volumes into China would be low, and there would be extra marketing costs in establishing a profile and building the brand.Currently the Bay of Plenty accounted for 60 per cent of avocado production by area, and Northland 36 per cent.Full article available here

2.5.Zespri shareholders vote for change

Last week changes to Zespri’s constitution were backed by more than 75 percent of shareholders voting in a Special Meeting held on Wednesday in Mount Maunganui. The resolutions implement a number of changes arising from a recent industry consultation.
Zespri Chairman Peter McBride, explaining the new constitution, addressed the problem of a growing misalignment between growers who supply kiwifruit to Zespri and people who own shares in Zespri. “A significant number of New Zealand kiwifruit orchard owners do not own Zespri shares and over 18 million shares are held by people who have left the kiwifruit industry,”.
The constitution puts in place a share cap with a maximum shareholding of four shares for each tray of production and introduces dividend restrictions on shareholders who do not grow kiwifruit. “Without these measures, there is a risk that, over time, ownership of Zespri would progressively move away from the current growers supplying Zespri and undermine the stability of our industry structure.”
Mr McBride says shareholders have voted to take advantage of a uniquely-important moment for the New Zealand kiwifruit industry. “This support for change reflects the cohesiveness of our industry and a common interest among growers and former growers in seeing it prosper. Another step to improve alignment is a targeted share issue and buyback programme. This was supported through a shareholder resolution and is planned for the second half of this year. It will be based on an independent valuation and target a share issue to unshared and under-shared growers, and a buy-back offer to non-producers and over-shared shareholders.
The changes to Zespri’s constitution follow a long period of consultation with growers, spanning nearly five years. It involved a grower referendum in 2015 with the highest turnout in a horticultural referendum in recent history, followed by amendments to the Kiwifruit Export Regulations last year.
Full article available here

Crop news

2.6.Appleharvest earliest in recent history

Central Otago's apples are in the spotlight, having their earliest harvest in decades.

The season's warm weather, as well as bringing the season forward, had also increased the size of the apples, and good-sized, ''very clean and presentable'' apples with ''very good colour'' were expected. This year has also had the earliest seasons in recent history for strawberries, cherries, apricots, grapes and pumpkins. Full article available here

2.7.Picking labour shortage declared in Hawke’s Bay

The Ministry of Social Development has declared a seasonal labour shortage across Hawke’s Bay in the midst of the bumper apple and pear season. East Coast Regional Commissioner, Annie Aranui, said the declaration was for the March 12 to April 6 period. She added that they would continue to support jobseekers still facing unemployment to enter the horticulture industry and that they were running specialised seminars to identify and refer jobseekers. New Zealand Apples and Pears supported the labour shortage declaration. Full article available here

2.8.Fruit Day presents organic Posy apples from New Zealand

Recently, Fruit Day has exclusively imported organic Posy applesinto China from New Zealand.Posy apples have only just come into mass production and this is the also the first time they have been exported to China.Posy organic apples are produced in the Hawke's Bay region of North Island in New Zealand. It is an early spring variety that has a high sweetness of 14+, a red and shiny skin and its taste has tender notes of honey, melon, watermelon, and peach.

The first organic apples came from New Zealand's largest organic apple grower Mr. John Bostock.His plantation has more than 470 hectares of certified gardens. It produces 90% of all New Zealand's organic apples. Full article available here

Other

2.9.South Island trade gateway closed by strike

The strike by the Rail and Maritime Union of New Zealand (RMTU) has shut Lyttelton Port, a vital trade gateway for the South Island.According to LPC Operations Manager Paul Monk, if shipping is unable to come in or out of the Port for thirteen days during the RMTU strikes from 13 to 25 March, there will be serious supply shortages.
It manages more than half the South Island’s container volume, including 70% of imports.. Each year more than 450 container vessels and over 500 cargo ships need to access Lyttelton Port. We load and unload more than 400,000 TEUs of cargo annually. In the last financial year we managed $4.8 billion in exports and $4.2 billion of imports.”Full article available here

2.10.Assistance for cyclone-hit Tasman and Taranaki regions

Tasman and Taranaki residents struggling to clear up the mess left by ex-Tropical Cyclone Gita can access a helping hand following an announcement today by Minister for Social Development Carmel Sepuloni. The Government will activate Enhanced Taskforce Green, making up to $500,000 of funding available.

“Five hectares of apple orchards in the Tasman District were completely destroyed by flooding silt and debris, the key focus will be on orchards needing silt cleared from around the trees and vines.“So far ten orchards, mostly apple and Kiwifruit, have been identified as potentially needing support in some of the hardest hit areas. Not requiring specific skills or heavy machinery, these are perfect places for temporary workers to make a difference.
“Enhanced Taskforce Green is a work programme that employs job seekers to assist with clean-up following emergency events. Anyone who needs support should contact the Tasman District Council.
Full article available here

2.11.New Zealand Feijoa growers hit by devastating disease

Feijoa crops in Kerikeri in Northland are being devastated by a fungal disease. The situation is costing growers hundreds of thousands of dollars. In Northland, Anthracnose disease is rife in all but two of Kerikeri’s 20 orchards. Orchard owner Stuart Duff has just over 1800 trees and 600 of them have the fungus. The feijoa season has just started but Duff says he's already thrown away just over three tonnes of the fruit.
The fungus is a mutation that starts off as a small black spot which spreads all over the fruit within three days. While it's not dangerous to eat, it means the fruit isn't saleable. The disease isn't curable.
Scientists from Plant and Food Research have visited the area and have told growers they are working to apply for funding to get some sort of program up and running to help them. Full article available here

1. International news

Comment

3.1.GAIN reports

Gain reports are from the “Global Agricultural Information Network” and are produced by the USDA. They are designed to provide timely information on the economy, products and issues in foreign countries that are likely to have an impact on United States agricultural production and trade. The information in them is written for USA exporters but the majority is equally relevant to New Zealand. With regard to import regulations for a particular market New Zealand exporters should first check the countries ICPR on MPI’s web site. These are collated specifically for New Zealand product. However the Gain reports often provide additional information that is useful e.g. on grading and labelling, economic profiles. This week see:

a)BelgiumFAIRS Export Certificate ReportBelgium is a Member State of the European Union (EU) and applies the certification requirements described in the EU-28 Food and Agricultural Import Regulations and Standards (FAIRS) Certification 2018 Report. Products not yet harmonized are subject to Belgian national rules. FAIRS Export Certificate Report - Belgium_Brussels USEU_Belgium [without Luxembourg]_3-13-2018

b)China Emerging City Market Report – Hangzhou The data and analyses shown in this reportare the result of a market research project conducted by Euromonitoron the behalf of theAgricultural Trade Office in Shanghai. The data and analyses in this report are not the position of the U.S. Department of Agriculture. Rather, the data and analyses are information collected from in-field research to give the Agricultural Trade Office in Shanghai further insight into the local market.Emerging City Market Report - Hangzhou_Shanghai ATO_China - Peoples Republic of_3-11-2018

c)Emerging City Market Report – NanjingEmerging City Market Report - Nanjing_Shanghai ATO_China - Peoples Republic of_3-1-2018

d)Emerging City Market Report – WuhanEmerging City Market Report - Wuhan_Shanghai ATO_China - Peoples Republic of_3-12-2018

Regulatory

3.2.Bayer publishes crop protection safety studies

Bayer, through its transparency initiative, is now offering full, in-depth, safety-related study reports providing they are not used for commercial purpose. Bayer’s transparency platform, cropscience-transparency.bayer.com demonstrates how transparency around crop protection safety studies can be improved, while at the same time safeguarding confidential business information.
First announced in 2016, Bayer’s transparency initiative aims to break down barriers to build public trust and foster a fair, science-based dialogue around crop protection products. The platform was launched in 2017. Until now, mostly study summaries were available in addition to safety-related study reports on the active substance imidacloprid.cropscience-transparency.bayer.com

Full article available here

3.3.China conditionally approves Bayer-Monsanto deal

Bayer has secured conditional approval from China’s commerce ministry for its planned acquisition of Monsanto, chalking up a victory in the onerous struggle to win over watchdogs across the globe. The ministry also ordered the German drug and crop chemicals maker to spin off some businesses globally, including vegetable seeds, corn, soybean, cotton, and herbicide.
Bayer has secured the go-ahead from Brazilian regulators, while people familiar with the matter told Reuters two weeks ago that Bayer was in the frame to win conditional antitrust approval from the European Union for the $62.5 billion deal. Full article available here