PMAC weekly update 19th to 26th April

Government agencies: New Food recall guidance, MFAT’s Global Trade and Economic Update for NZ Businesses – 22 April 2022

New Zealand News: New High Commissioner to Tonga announced, Fit for a better world magazine, Talks to fast-track supermarket regulation and break apart stores, NZ supermarket duopoly is locking people out of nutrition', NZ: Food prices are up, but the cost to grow it has skyrocketed, Can GM save the planet? Some farmers think it's worth a go, Is this the technology to win Kiwis over to genetic engineering?, Ardern undertakes Asia-bound trade talks, Prime Minister Ardern opens Japan's $600 mln kiwifruit season, Kiwifruit growers' High Court Gisborne council rates spat: Valuer General gets involved, Freighter departs from Eastland Port with second load of Gisborne kiwis, Trial cannabis farm in Mataura a success, Lesser banded hornet found in Auckland for first time

RNZ Rural news – More Sunflowers to be grown in NZ , rules about on-farm plastic waste disposal and Tractors for Tonga

International news: GAIN reports; Dutch cabinet invests €42 million in CROP-XR institute, National Plant Biosecurity Strategy released by Plant Health Australia, Saudi Arabia amends import licenses for fruits and vegetables, Singapore names orchid after New Zealand PM to mark visit, ‘European Central Bank must act soon to avoid currency crisis’, Zimbabwe joins Southern Hemisphere Association of Fresh Fruit Exporters, Chinese Domestic Fruit Prices Rising, Apples and Bananas Hit 10-Year Highs, Skincare brand launched that is 100% powered by vertical farms, "The high domestic profile of Chinese horticulture much more than production only", Fifth of world’s containerships bogged down in port congestion, North America logistics show improvement but long-term structural changes expected, China is combating a logistical chaos, Researchers find link between timing of harvests and E. coli in romaine lettuce, US (CA): Organic zucchini voluntarily recalled because of Salmonella, Shoppers keep food safety in mind when sourcing CEA produce, Dole plc joins Freshfel Europe in launching fresh produce Environmental Footprint Initiative, Dole carries out fresh produce survey., Flying gardens and floating greenhouses

Comment

The cost of food in New Zealand and the need for a national conversation about the use of genetic engineering (GE) are the two standout topics this week. Increases in the cost of food and especially fruit and vegetables have been high profile for the last couple of months and often the two are linked to the need to bring in more competition for our supermarket duopoly. One article this week talks about Minister Parkers desire to see that competition arrive sooner rather than later. Pleasingly there is also an article making it clear that part of the price rise in fruit and vegetables is due also to the increased costs growers are being faced with. It is important the public understand the impact of input prices so that growers do not receive negative publicity in the future when the supermarket landscape changes but fruit and vegetable prices do not fall back to pre-covid levels.

The need for a national conversation about GE has also been simmering for quite a while and is a conversation that I would suggest is just as if not more important than supermarket duopolies. It is also much bigger than just horticulture and new varieties . There are two article this week about GE. The first talks about GE and the potential for adapting to climate change and sustainability ( particularly from a farming perspective) while the second considers other uses for GE and the production of a range of foods and chemicals in fermentation vats using microbes. Both provide good background and between them the breadth of uses for GE. Opponents to GE however will say there are distinct advantages in NZ remaining GE free . Its going to be an interesting debate but an essential one to have.

And if you’re interested in where the future could go take a look at the very last article “Flying gardens and floating greenhouses”. The development of these forms of horticulture would have an enormous effect what it means to buy local and so on New Zealand’s value proposition

Agency news

New Food recall guidance

New Zealand Food Safety has updated its food recall guidance to make it faster and easier for businesses to prepare for and conduct food recalls. The updated guidance will drive consistent best practice across all food business no matter their size or business model. The new guidance includes a toolbox of example procedures, checklists, and spreadsheets. You can find these on MPI’s website, as well as an updated recall risk assessment form and recall audit form."

MFAT

MFAT’s Global Trade and Economic Update for NZ Businesses – 22 April 2022

MFAT update is available at https://www.mfat.govt.nz/en/trade/mfat-market-reports/market-reports-global/weekly-global-economic-round-up-22-april-2022/ Amongst other entries included in this weeks edition are news of :

Prime Minister Jacinda Ardern Singapore’s Prime Minister Lee Hsien Loong in Singapore. To help build resilience against current and future supply chain disruption, the Prime Ministers agreed to launch a Singapore and New Zealand Supply Chain Working Group. They asked officials, working closely with the private sector, to identify opportunities for collaboration in support of more productive, resilient, sustainable, and digitally enhanced supply chains for enterprises of all sizes and for improved food and energy security in both countries. Joint Statement by the Prime Ministers of New Zealand and Singapore | Beehive.govt.nz(external link)

Shanghai remains in a city-wide lockdown to limit the spread of COVID-19 in line with China’s zero COVID regulations, with supply chains continuing to be impacted and operating under significant constraints. The Economist has suggested that a one-month lockdown of Shanghai and its spillover effects could knock 4% off China’s GDP in that period(external link). Air New Zealand is currently operating a reduced cargo service into Pudong Airport with trucking services across the country available but severely constrained. Trucking activity around Shanghai is reportedly operating at 15% of normal levels, with nationwide trucking activity by some reports down as much as 40% from mid-March. Most New Zealand companies are experiencing disruptions – with some considering contingency planning – but most are still able to get supplies into Shanghai and cleared. Officials are continuing to monitor the impacts of the lockdown and its impact on New Zealand businesses.

The government of the Republic of Korea (ROK) moved forward in its plans to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Deputy The government will first complete internal procedures before submitting an official bid, which is expected before the new administration comes in to office on 10 May Read the official press release here(external link).

New Zealand News

New High Commissioner to Tonga announced

Foreign Minister Nanaia Mahuta last week announced the appointment of Matt Howell as new High Commissioner to Tonga. Matt Howell has a background in international development and has had a long career working in the Pacific. He was most recently the Wellington-based New Zealand High Commissioner to Tuvalu and has previously served at the New Zealand High Commission in Honiara.

Mr Howell takes up his position in May.

Consultations

Fit for a better world magazine

The Fit for a better world initiative is being encouraged by the Fit for a better world organisation. This unit provides a periodic update on work underway and MPI investments that will help deliver the fit for a better world vision . The latest edition was released last week . Included in this version are a number of articles that will be of interest to plant product exporters ( all of which have previously been included in this newsletter). They include articles about :Medical Cannabis, Could Almonds be the next big thing?, Attracting Pacific youth into horticulture

Also included is access to Rural delivery a weekly TV programme on TV1 . This site provides access to a number of interesting recent videos ( about 6 ½ to 7 minutes long )about horticulture :Caythorpe cherries – 7 minutes video about a Cherry orchard near Blenheim

Ranui essentials a Wairarapa lavender farm and distillery

Bananas and dairying

Otama Marere A kiwifruit farm highlighting innovation and excellence in Māori farming.

Peanut trials

Commentary

Talks to fast-track supermarket regulation and break apart stores

The Government is ready to move faster and further than the Commerce Commission's cautious advice, to ensure supermarket competition brings down food prices. Commerce Minister David Clark told Newsroom he would respond next month to the commission's report on competition. He wants to move quickly on agreed changes, most likely a code of conduct to prevent the chains exploiting farmers and other suppliers, and consistent unit pricing so shoppers can compare how much different products really cost.

But the big questions his officials are discussing with the Commerce Commission is whether lawmakers can go further than the commission was able to, under its constrained deadlines. The Government is understood to be considering whether it can break open the wholesale duopoly or, more likely, the cosy club of retailers.

As Dunedin MP, he was hearing his constituents express concerns about rising food costs. "Cost of living is top of mind to people on fixed and modest incomes," he said. When he went shopping he winced at the price of tomatoes, broccoli and lettuce. "Every New Zealander can see the cost of food when they go to do their weekly shop."

Though there are many grocery retail brands in the market – Countdown, Pak'nSave, New World, Four Square, Super Value, Freshchoice, Fresh Collective and more – they are all just shopfronts for the two big chains. More than 560 of the stores are Foodstuffs, and the remaining 250-plus are owned or franchised to Woolworths NZ. The Government is sending a shot across the bows of the supermarkets, if they don't return some of their excessive profits to suppliers and consumers. Officials are considering whether they could be forced to separate and sell some of their stores to a local challenger such as the Warehouse, Night'n Day or an iwi consortium, or to an overseas player such as Aldi or Costco.

One supermarket owner told Newsroom they were constrained at present by franchise agreements with restrictive non-compete clauses if they left. But the Government could require the removal of those restrictions.

He wasn't sure ministers entirely understood how difficult it was: "No one in Government, I think, has ever owned a business. "The owner agreed with the Commerce Commission's analysis that the supermarkets were earning excess profits of about $1 million a day, over the top of appropriate revenues. "The profit as stated was correct," he said. "The issue as I see it - and Quin is correct on this - that the cost of doing business in New Zealand is horrific. Think about it: we are a country of 5 million, which is one city in Oz stretched over 2000 kilometres."

Clark is also concerned to see Kiwi producers treated better. "Some of the stories I've heard about the way suppliers have been treated are cause for concern. It highlights the need to have regulatory oversight of the sector, and a code of conduct that guides those who are involved.

NZ supermarket duopoly is locking people out of nutrition'

New Zealand health advocates say they want their government to urgently break up the Countdown and Foodstuffs duopoly. They claim people’s health is being put at risk by high fruit and vegetable prices. In March, the cost of fruits and vegetables increased by nearly 20 per cent, compared to the same time the year before. Food prices increased by 7.6 per cent – the highest rise in a decade.

“We’re in a tailspin of higher and higher prices that benefit supermarket profit margins while locking people out of nutrition,” Health Coalition Aotearoa food policy expert group co-chairperson Dr Lisa Te Morenga said.

NZ: Food prices are up, but the cost to grow it has skyrocketed

Food prices were 7.6% higher in March 2022 compared to March 2021, Stats NZ says, but farmers say this does not reflect the price they are paying to grow what Kiwis are eating. Between March 2021 and March, 2022 grocery food prices increased 6.7% and monthly food prices rose 0.7% in March 2022 compared with February 2022, Stats NZ said last week.

It was reported earlier that Waikato potato and onion grower Chris Nicholson, director at Hinemoa Quality Producers, said his fuel bill had increased by about a third compared to this time last year. In March he had to increase the price of a bag of onions by $1 per bag and was very close to not breaking even if he did not get the farm gate price he wanted. Data from the Ministry of Business, Innovation, and Employment showed significant increases in commercial diesel costs. Minimum wage increases were only a drop in the bucket compared to many farm costs, but the shortage of skilled labor had been a political tug-of-war between farmers and the government for the past few months. There was some relief as the government was allowing more workers to enter New Zealand.

Fertiliser costs were the greatest concern for farmers. A March 2022 Rabobank outlook showed most fertiliser prices increased drastically as a result of the war in Ukraine. About 23% of global ammonia trade, 14% of urea and 10% of phosphates were exported by Russia. Data from Index Mundi showed the New Zealand Dollar price for Urea skyrocketed from the end of 2021.

Can GM save the planet? Some farmers think it's worth a go

A recent report from the commission, titled Reaching for the Frontier, said research of GM technologies was an important pathway to innovation in the primary industry and offered new opportunities to respond to climate risks, biosecurity threats and could also boost farm productivity.

“Gene-editing technologies can be used to improve plant traits such as drought tolerance, disease resistance, and reducing greenhouse gas emissions in grazed animals, and animal traits such as increased disease resistance,” the report said.

GM organisms and technologies are regulated by New Zealand’s Hazardous Substances and New Organisms Act. The purpose of the act was to protect the environment and communities by preventing or managing the adverse effects of hazardous substances and new organisms. The report notes the HSNO defines GM organisms (GMO) as those derived from genetic material that has been modified in a test tube or petri dish.

But it says the problem with this is that the GMOs are defined by how they were developed and not the attributes of the actual products. Approval to develop, trial or commercialise GMO’s had to be given by the Environmental Protection Authority (EPA). However, regulations were last reviewed in 2001 and technologies had since moved on significantly. There had been advances in gene editing producing technologies such as CRISPR, which enabled precise modification, the report said.

Andrew Hoggard, national president of Federated Farmers, said the conversation about whether GM technology should be allowed in New Zealand agriculture had been on the back burner since the 2000 “corngate” incident, when animals were allegedly given genetically engineered sweetcorn to eat and a national row about it ensued. But since then, the technology had been used worldwide and created viable climate solutions. .

The precision of gene editing means these changes can be indistinguishable from naturally occurring organisms,” the report said. The report also pointed out that food produced with gene technology had to be approved by Food Standards Australia New Zealand (FSANZ) and was subject to labelling requirements. FSANZ had approved a range of GM crop varieties for use in foods. While many of the base crops were grown in New Zealand, the GM varieties were not. But GM varieties could be sold and consumed in New Zealand.

Besides considering changes in technologies, New Zealand regulators also had to look into what competing markets were doing, the report said. “The review should consider the emerging regulatory approaches in other jurisdictions, particularly New Zealand’s key product destination and competitor markets, and the trade and regulatory enforcement impacts from different treatment of GM technologies in different markets,” the report said.

But would consumer accept and eat meat products that was raised on GM grasses or that according to some was frankensteined? Dr Sommer Kapitan, consumer behaviour specialist, says if you give consumers a valid environmentally friendly reason to continue eating meat then many will accept it.

Is this the technology to win Kiwis over to genetic engineering?

This in-depth article is not directly about horticulture but it does show the potential use of technologies that can target specific changes to an organisms genome. Using this technology there is huge potential for example the use of genetically modified microbes in vat fermentation to produce such things as enzymes and milk proteins from a plant substrate. A national conversation about GE looks almost certain so if you are interested in this space this article is a worth reading.

Ardern undertakes Asia-bound trade talks

Jacinda Ardern sat with Singapore's Prime Minister last week in her first meeting with a foreign leader overseas since the pandemic began. A delegation of trade and business leaders were with her, including Zespri. External Relations Director Michael Fox emphasized how incredibly important the Asian market is.He says Japan is their second largest market and one of the fastest growing - and Singapore is also important with a number of global team members there, including their CEO.

“These markets are really important to Zespri, they actually represent $800 million worth of sales,” Zespri chief people officer Edith Skyes said. The aim is to boost that number now face to face meetings are possible again, Zespri is part of the group of businesses travelling with the prime minister.

“There is absolutely joy and delight to be able to do this face to face, we've been so long without it,” Skyes said.

Prime Minister Ardern opens Japan's $600 mln kiwifruit season

While Prime Minister Jacinda Ardern was in Japan she attended an event by kiwifruit marketing company Zespri to open the kiwifruit season in Japan. Zespri has a monopoly on kiwifruit exports from New Zealand (except for in Australia) and a huge market in Japan, with $600 million in exports in 2021. Zespri say it is generally a $750m market. Ardern told Japanese media she expected the industry to grow in Japan with the introduction of the red kiwifruit variety. Ardern also noted that her grandparents used to grow kiwifruit.

Freighter departs from Eastland Port with second load of Gisborne kiwis

The freighter Kowhai is set to sail from Eastland Port with the second consignment of Gisborne kiwifruit bound for overseas markets. The Kowhai is taking away 1200 pallets and follows the freighter C S Service which also loaded 1200 pallets last weekend.

Trial cannabis farm in Mataura a success

A medical cannabis or hemp crop planted near Gore has performed above expectations despite dry conditions and a short growing season. The 1ha crop is one of four trial plots being grown in Southland for Mataura company Southern Medicinal which has set up a hemp propagating and manufacturing business in the town's former paper mill.

Despite problems planting the crop it is estimated the plants would produce between 500 and 800 kg of flowers per hectare. The plants required little input in terms of fertiliser and pesticides.

Compared with its close relative cannabis, hemp had low amounts of tetrahydrocannabinol (THC), which was the ingredient that gave cannabis users a high. Hemp was grown for its bioactive components, including cannabidiol (CBD).Bioactive components are compounds that affect the biology of the body. While it had been legal to use therapeutic products made from cannabis and hemp since 2018, a doctor's prescription was required.

After the flowers were extracted from the plant most of the biomass of the plant was left and would be processed into dried pellets for animal food, he said. Trials would be undertaken at Lincoln University to confirm it was suitable as stock food.

The company's business model was based on about 150 farmers growing from 2ha to 5ha each. At full production, the company aimed to have 1 million plants a year growing in Southland.

Radio NZ Rural news

Midday Rural News for 21 April 2022

Growing sunflowers - Potential increased acreage of sunflowers to be grown in New Zealand next year to replace oil from Ukraine

Morning Rural news for 21 April 2022

To give back to communities that have provided so many RSE workers for New Zealand the adverse event growers relief fund ( lead by Julian Raine) are looking for older , small easier to maintain tractors that could be sent to Tonga to help communities that have been devastated in the Tsunami . It is hoped that MPI will help with freight costs

Midday Rural News for 20 April 2022

A consultation document has been released by the Government on changes to the supply chain – to future proof it for the next 30 years

There is a call for more regional rules to control the disposal on farm of plastic waste

Biosecurity

Lesser banded hornet found in Auckland for first time

A new invasive species of wasp has been found in St Marys Bay, central Auckland. An information flier given to St Marys Bay residents this week by Biosecurity New Zealand said the non-native pest wasp hadn’t been seen in Aotearoa, until now. “Biosecurity New Zealand is interested in any further sightings of this insect as we would like to be sure there are no others in the area. ”Dr Wendy McDonald said the hornet found was a worker hornet, and was not able to establish a population on its own.

International news

Comment

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. To see the full report, click on the link in each notification This week see:

China Country Report In 2021, China released several regulations and standards, including the revised Administrative Measures on Import and Export Food Safety, revised Regulations on the Registration and Administration of Overseas Producers of Imported Food, regulations overseeing variety registration of major crops and the safety assessment of agriculture GMOs, and the full text of the National Food Safety Standard of Maximum Residue Limits for Pesticides in Food (GB 2763-2021). Food and Agricultural Import Regulations and Standards Country Report_Beijing_China - People's Republic of_CH2022-0038

Philippines Country Report Annual FAIRS Annual Country Report Annual_Manila_Philippines_RP2022-0012

Philippines FAIRS Export Certificate Report FAIRS Export Certificate Report Annual_Manila_Philippines_RP2022-0017

Regulatory

Dutch cabinet invests €42 million in CROP-XR institute

Over the next ten years, the Dutch government will invest 42 million euros in CROP-XR, a new, virtual institute aimed at developing agricultural crops that are more resistant to climate change and less dependent on plant protection products.

Rapid development of extra-resilient crops is an urgent need worldwide because in many places climate conditions are becoming more extreme. At the same time, due to stricter environmental regulations, farmers will be less able to use chemical fertilizers and crop protection products to protect plants against environmental threats (such as heat, drought, flooding, and pathogens).

In CROP-XR, prominent Dutch research groups together with leading Dutch plant breeding companies will develop a revolutionary method to make crops more resilient more quickly. By innovatively integrating modern plant biology with artificial intelligence (AI) and functional modelling, they will learn to understand and predict how plants can better withstand stress conditions thanks to a complex interplay of genetic factors. This knowledge will then be used to develop stronger, more resilient varieties of several model crops, that can be grown sustainably. With existing methods, this development would be very difficult and take much longer. The new method can be applied to 'new breeding methods' but to classical forms of plant breeding as well.

National Plant Biosecurity Strategy released by Plant Health Australia

The 2021-2031 National Plant Biosecurity Strategy (NPBS) was released last week by Plant Health Australia (PHA) and provides a framework to strengthen Australia’s plant biosecurity system over the next decade. The second-generation strategy outlines four focus areas needed to build a resilient and contemporary national plant biosecurity system that will continue to support Australian plant industries, economy, environment and communities.

The Australian Government Department of Agriculture, Water and the Environment (DAWE) will fund PHA to coordinate a National Plant Biosecurity Strategy Implementation Group to oversee implementation of the strategy.

The National Plant Biosecurity Strategy follows the release late last year of national sub-strategies and implementation plans on preparedness, surveillance and diagnostics that sit under the National Plant Biosecurity Strategy and support its implementation. For more information: planthealthaustralia.com.au

Saudi Arabia amends import licenses for fruits and vegetables

Saudi Arabia has amended its import licensing guide by adding fresh fruits and vegetables so that the Ministry of Environment, Water, and Agriculture will be the competent authority to issue these licenses,

Adding fresh fruits and vegetables to the import licensing directory, which specifys the requirements, includes the requirements that the importer, whether a Saudi or a foreign investor, must be authorized.

Singapore names orchid after New Zealand PM to mark visit

The prime minister of New Zealand, Jacinda Ardern, will now have a permanent footprint in the lush gardens of Singapore after the city-state decided to name a new orchid – the national flower of the island – in her honor. She has become the latest leader to be honored under the so-called “orchid diplomacy,” a tradition of naming a new orchid species grown in Singapore after a foreign leader or celebrity. The Dendrobium Jacinda Ardern, has white flowers with a subtle shade of violet at the tip of the petal and is one of the around 220 orchids native to Singapore.

‘European Central Bank must act soon to avoid currency crisis’

The euro has declined steadily for the past year from above 1.22 per dollar to within close range of the 1.0640 low of March 2020, when the pandemic first hit. A test of parity to the dollar later this year is no longer a low-probability risk. Inflation and the Ukraine war are exacerbating this decrease The only logical answer seems to be for the ECB to raise its official deposit rate from the current super-stimulatory negative 50 basis points. But it must also ever-so-carefully keep financial conditions lax via other monetary tools, such as bank lending incentives.

Business/ Industry

Zimbabwe joins Southern Hemisphere Association of Fresh Fruit Exporters

Zimbabwe joined SHAFFE, represented through the Zimbabwe Horticultural Development Council during Fruit Logistica in early April.

Chinese Domestic Fruit Prices Rising, Apples and Bananas Hit 10-Year Highs

In early April, the average wholesale price of domestic fruit in China reached its highest level for this period in 10 years. The average wholesale price for six monitored fruits during week 14 of 2022 saw an increase of 3% compared with the previous week and an increase of 9.9% compared with last year.

This article contains information about the recent changes in fruit price and in particular apples and export of domestically grown apples.

Domestic fruit prices continue to rise amid intense discrepancies between supply and demand. The domestic fruit supply tends to decrease between March and June. Furthermore, over the past two years, the pandemic has led to a year-on-year decline in imports, along with an overall decrease in domestic fruit supply. Moreover, the stockpiling of goods by some people during the pandemic has led to a significant increase in demand for apples and other more long-lasting fruits.

Skincare brand launched that is 100% powered by vertical farms

Shiseido, an international Japanese skincare brand, launched Ulé, its first brand developed in Europe. The prestige, conscious skincare line, Ulé, is the first skincare brand powered by 100% local, vertical farming, and it's an entrepreneurial, innovative and courageous adventure within the Shiseido Group.

Housed near Paris, in the Ule Eco-Farm, botanists are able to grow exotic plants locally, maintaining their maximum freshness and the highest purity. The plants are then cold-milled to create a high-potency extract, brimming with molecules and nutrients for the greatest benefit to the skin.

"The high domestic profile of Chinese horticulture much more than production only"

The horticulture industry is also visible in China. People can literally experience, see, taste, touch. “A good example is the various agriculture theme parks. It’s really a day out for the whole family, and people enjoy seeing how cultivation is actually done. It’s really an experience. And one that can generate income. In the Netherlands, growers only look at production, but in China they also have entire theme parks. You shouldn’t focus only on production. If in the end it helps the industry reach a higher level, that’s just great.”

The government also plays an important role in advertising the sector. The government is very aware of the bottlenecks here. That’s why indoor cultivation is also a part of the new five year plan. With various measures, investors are stimulated to finance horticulture, and the government itself is also an investor. In addition, government companies themselves also do a lot of work in the sector. ”The Chinese government also looks at things like energy prices and alternative energy sources, Fulco says. “They look at giving companies a boost, as well as making sure the environment remains liveable, using the carrot and stick method.”

2025 is an important reference point for Chinese horticulture. The idea is that more will be done locally by then, which is why companies are asked to settle in China and to produce there, and local companies should also do more themselves. “That can be a threat if you only import. There will be a point where that will become increasingly difficult, because of the rise of local producers.”

Freight

Fifth of world’s containerships bogged down in port congestion

With lockdowns impacting the movement of vessels at the major Chinese ports, the congestion appears to be spreading to other ports around the globe. New data from maritime AI company Windward shows that a fifth of all the world’s containerships are stuck in port congestion. The company has calculated that a quarter of all the ships are specifically stuck at Chinese ports.

There are increasing reports of the number of containerships diverting away from Shanghai, but that is adding to the delays at other ports such as Ningbo-Zhoushan due to the added volumes, or carriers are resorting to blanked sailings. “The number of container vessels waiting outside of Chinese ports today is 195 percent higher than it was in February.”

North America logistics show improvement but long-term structural changes expected

Are things improving on shipping and logistics in North America? It does look as though truck rates have stabilized following the recently seen escalating rates and even come back down to pre-pandemic levels. “However, while that’s good news, what remains following months of what many growers and shippers have described as a chaotic logistics season, are potential ripple effects. And as these effects get sorted through, there could possibly be longer-term structural changes around logistics. “

Following months of challenges around increasing rates and difficulty accessing containers, container issues are expected to improve in the next 10-12 months and better movement is already being seen. But longer-term structural changes in logistics are going to be seen in overall rates. “For bulk ag products, for example, hauling crops from the field to first-level processing are experiencing year-over-year re-calibration of pricing to the ag processor and ultimately food manufacturing,” says Aure-Flynn. “As labour markets change, and to attract professional drivers to these seasonal and demanding assignments, prices have been increasing 12-15 percent a year, and in some places more.” And while fuel surcharges of course are connected to the up and downs of fuel prices, driver wages are only expected to continue to go up.

So with the domestic agriculture season developing and more stable logistics costs expected, the industry will remain watchful for the upcoming fall/winter season, particularly as both the pandemic and the war in Ukraine continue. “Logistics are going to require more forward planning, partnering and cost. Logistics suppliers are likely going to continue to consolidate and mature. Look for partnering and contracting to become increasingly sophisticated, as data-analytics, regulatory constraints, pricing and uncertainty drive need for innovation/efficiencies,” says Aure-Flynn.

And while container shortages and delays at the ports seem to be alleviating, albeit slowly, it will take some time for issues to work through the system and trade flow is expected to flow more smoothly in 10-12 months.

China is combating a logistical chaos

Chinese imports have dropped 0,1% compared to the previous year in dollar terms, constituting the first drop since August 2020 , with a figure well below the median forecast of an increase of 8,4%. eanwhile, exports grew 14,7%, customs data showed, above the 12,8% forecast but slower than the 16,3% increase in the first two months of the year.

Port congestion and logistics bottlenecks worsened in March, affecting both inbound and outbound maritime traffic. The blockade of the city of Shanghai has created congestion at the world's largest port, with growing queues of ships there and at other ports trying to handle diverted shipments. The number of container ships waiting off Shanghai from April 11 was 15% higher than the previous month.

The blockades are suffered by 17,3 million truckers. Drivers are hampered by repeated mandatory COVID testing and the need to show negative results at multiple checkpoints.

Food safety

Researchers find link between timing of harvests and E. coli in romaine lettuce

Scientists from the USDA’s Agricultural Research Service have begun to uncover details underlying a pattern of seasonal ( grown and harvested at the end of the season) E. coli O157:H7 outbreaks linked to bagged romaine lettuce.

“That E. coli O157:H7 infection outbreaks connected to romaine are more frequently associated with lettuce commercially grown and harvested at the end of the growing seasons in California and Arizona has been recognized for several years,” according to the scientists.

Between 1998 and 2019, there were 36 outbreaks that traced back to lettuce. One of the most significant findings of the study was that E. coli survived on average 5.6 times better in cold-stored packaged romaine harvested in the fall than on the same varieties harvested in late spring.

The team of scientists demonstrated that the bacterial community present on bagged romaine differed by season, lettuce deterioration state, and whether survival of E. coli on the lettuce was high or low. This suggests a potential for using the microbiome as an indicator of the microbial quality of fresh-cut bagged lettuce. The results strongly indicate that fall-harvested romaine and the microbe communities it harbours have intrinsic characteristics that make them a better place for E. coli to survive in fresh-cut product.

US (CA): Organic zucchini voluntarily recalled because of Salmonella

World Variety Produce, Inc. of Los Angeles, CA is voluntarily recalling a lot of Organic Zucchini, because it has the potential to be contaminated with Salmonella, No illnesses have been reported to date. This recall was initiated because a single lot of imported organic zucchini tested positive for salmonella as a result of a routine FDA sampling.

Shoppers keep food safety in mind when sourcing CEA produce

Shoppers are looking for a greater variety of produce and they are looking for produce with specific production attributes. Older generations report a greater interest in produce that is locally sourced and grown in the USA whereas younger generations report having a greater interest in organic, sustainably grown, and hydroponic or greenhouse-grown produce, according to The Power of Produce 2022.

Controlled environment agriculture (CEA) operations, such as hydroponics and indoor farming, can help with meeting the needs of shoppers by providing a variety of fresh produce that is sourced locally.

Eight-five percent of Americans report having confidence in the safety of fresh fruits and vegetables they purchase in the grocery store (The Power of Produce 2022). The food industry is committed to maintaining a high-level of trust by safeguarding the fresh produce supply and assuring all produce is as safe as possible.

Dole plc joins Freshfel Europe in launching fresh produce Environmental Footprint Initiative

Dole plc is pleased to confirm that it has joined Freshfel, the European fresh produce association in embarking on an Environmental Footprint Initiative to develop a fresh fruit and vegetable environmental footprint methodology and digital tool.

With participating members from right across the supply chain from Europe and beyond, the scope of this initiative will extend from farm to fork, from producers to consumers. The shared objective is to develop an objective, standardised environmental footprint methodology, database and digital tool for the fresh produce sector that is broadly accepted by the industry, stakeholders and consumers. It will align with the Product Environmental Footprint (PEF) methodology as recommended by the European Union and which is likely to be employed by the European Commission in upcoming legislation concerning the substantiation of green claims and the harmonisation of EU sustainability labelling framework. Category rules specific to the fruit and vegetables sector will be developed ensuring comparable results of PEF-calculations.

Dole carries out fresh produce survey

Dole Food Company conducted its first Dole Fresh Produce Survey in March, as it looks to determine how much of an impact sustainability issues have on purchasing choices. The results of the survey, which took place on 3-11 March and covered 1,038 adults, will be used by Dole as part of its ​efforts to inform activities that can help Americans adopt a healthier, more sustainable lifestyle.

The complete survey results will be released on 26 May, which is National Eat More Fruits and Vegetables Day however Dole is releasing a preview of some of the results now

27 per cent of respondents agreed that environmental issues, such as a food’s impact on land use, water use and quality, package recyclability, greenhouse gas emissions, air quality, etc, had a significant or very significant impact on their personal eating habits.

28 per cent said they make a significant or very significant effort to choose foods and brands that minimise impact on climate change.

38 per cent said they have changed the foods and brands they purchase because of their impact on climate change. Full article available here

Innovation

Flying gardens and floating greenhouses

Some projects that might seem to belong to the realm of science fiction, such as flying orchards or floating greenhouses, are closer to reality than we know. The Aeroponic 2100 project, from the Mcheileh Studio, in New York, proposes building aeroponic gardens in blimps so that they fly over towns, cities, residential spaces, and even areas away from urban centers, distributing food.

The aeroponic - and hydroponic - crops, distributed on vertically stacked platforms inside the self-propelled aerostats, will use filtered rainwater that is collected from the aircraft's outer frame, as well as desalinated water collected from the seas, according to the Studio. These airships or flying gardens would help eliminate the need to transport food over long distances using transportation means that generates high carbon emissions and would allow releasing land that is currently used for agriculture and that is degraded by the use of pesticides, the company detailed. The aircraft would be powered by solar and wind power and would be designed to travel anywhere in the world.

Meanwhile, the N-ARK study, in Hamamatsu (Japan), is developing an innovative architecture focused on solving social problems derived from environmental impacts, such as the rising sea level and salinity of coastal soils following floods. N-ARK is developing a ‘salt-resistant‘ floating orchard prototype that will combine greenhouse crops, with a 'salt farming‘ method that uses seawater as a direct source of nutrients for vegetables. Each orchard of the Green Ocean project will have two distinct green spaces destined for the cultivation of vegetables: one at sea level and the other underwater.

"This project will allow growing vegetables that use seawater as a source of nutrients, improve the underwater environment by growing algae that absorb CO₂ favouring the growth of plankton, and it will allow delivering fresh vegetables quickly to restaurants in coastal areas such as New York," N-ARK stated.

Subscribe/ Unsubscribe If you no longer wish to receive this email please send a note to info@pmac.co.nz asking to be added/ removed and providing the nominated email address

Disclaimer Please note this information has been accessed from emails that have been forwarded to info@PMAC.co.nz and are distributed as a weekly update. If you intend using this information please sight the original document to ensure you are aware of the context within which any changes have been made and to guard against any transcription changes