In this issue:
- Can NZ salmon farming leverage cutting edge tech?
- Price v Values - tough food choices for GenZ
- Israel's food investment slump
- We have been looking at...
Can NZ salmon farming leverage cutting edge tech?
Figures released last week show UK salmon export volume reduced by nearly a fifth in 2022 - a significant drop for the UK’s highest value food export with an annual return of over NZ$1 billion. Global warming and fishery management were tagged as the culprits. New Zealand salmon farming has similarly suffered with higher water temperatures in recent years, resulting in impacts on production at some locations.
With the consent process for New Zealand’s King Salmon open ocean farming operation, ‘Blue Endeavour’ all but complete, our domestic industry could see a huge lift in volume and value. New investments offer an ideal opportunity to consider bolting on new open ocean technologies. Growing kelp and other seaweeds near salmon farms has been seen to protect them from harmful microalgae growth – this mariculture also opens up the possibility of ocean farms adding carbon sequestration to their value proposition. The inclusion of ocean upwelling technology could supercharge seaweed growth.
Diminishing wild fish catches across most species have now been surpassed by farmed fish supply globally. More than half of the roughly 200m tonnes of seafood produced annually is now farmed, with seafood from all sources accounting for 17% of global animal protein consumption. Although wild and farmed salmon production volumes fell last year, market price reached record highs. Salmon remains a popular consumer choice, both farmed and wild products are valued for their rich vitamins, minerals and omega oils.
Scotland and New Zealand each produce a fraction of global farmed salmon supply. Norway supplies more than half the world’s farmed salmon of 1.5m tonnes per year. With progress into deep ocean farming and over 400million hectares of ocean to use there is clear opportunity for New Zealand production. Transparent environmental credentials may see New Zealand give Scotland a run for its money as a high-end product.
A report from consultancy McKinsey this week predicted a 14% growth in seafood demand by 2030 versus 2020 levels – however regulatory constraints are driving the world’s ‘looming seafood shortage’. Can New Zealand salmon farms leverage new technology to become a sustainable and positive growth industry for New Zealand?
Price v Values –tough Gen Z food choices
Gen Z’s complicated relationship with food was revealed recently via research from international consultancy Ketchum, who studied two thousand US youth and young adults in April this year. The report concluded that taste and affordability are king.
Gen Z has been deemed the foodie generation by marketeers. The research found that more than all generations, 63% of Gen Z-ers feel too much pressure to change the world and are more likely to believe their food choices need to signal their health, values and political beliefs. The beliefs have created negativity and anxiety. The study found they have high expectations of food wanting it “to make them happy, relaxed, healthy and confident”. They look to social media and online influencers for inspiration
However there is a gap between what they say and what they do. With a proportion of this consumer group starting out on their own and recent price increases lowering their buying power, they are buying budget.
Gen Z has emerged as a snack-focused generation, opting for multiple eating experiences throughout the day instead of larger, sit-down meals.
A report from Piper Sandler earlier this year offered a similar view finding Gen Z showed a preference for healthy eating, including more organic and natural foods that are free of additives. However, only 3% listed fruits, vegetables or nuts as a favourite snack item. This report identified that Gen Z’s top spending priority is food, at 23% of their income.
International baked goods company, Dawn Foods, also released Gen Z research this year finding that that technology had changed young people’s relationship with food. Seeking information via QR code, making touchscreen orders and social media sharing before, during and after meals is their norm. In addition they found Gen Z-ers are brand loyal, care about the ‘look’ of the food and are heavily influenced by social media.
What can New Zealand’s food producers learn from these findings? Ethical and environmental credentials will become increasingly important, building on-line brand relationships is vital, nutrient quality is important – but price still matters.
IsrAel's food tech investment slump
Israel is the widely acknowledged global hub of food innovation and agri-tech – its sophisticated funding ecosystem has produced many start-ups over the last decade. Half of Israel’s four hundred foodtech companies were founded in the past five years. Investment across Israeli tech companies rose from US$2.8 bn in 2013 to a peak of US$28.2 bn in 2021, falling to US$15.9 bn last year.
The Israeli Agriculture-Food Tech Sector H1 2023 Report released last week identifies a substantial drop in private funding, with levels plummeting by 29% from the second half (H2) of 2022. Alongside the recent global economic slowdown impacting on investor confidence and capital availability, Israel’s judicial overhaul is being pointed at as a key slowdown factor.
A lack of consensus on legislative changes – both within the government and among the public – has been reported as a factor in the levels of eroded trust between the hi-tech industry and the government, adding a layer of unpredictability to the business environment. The current conflict with Hamas could suppress global investment and longer the war continues, the war could further impact in business confidence.
In the mid-2000’s the Israeli government took a structured and hands-on approach to developing Israeli nnnovation, capitalising on global food security concerns, the inter-connectedness of the very small country enabled expertise from multiple fields such as chemistry, biology, physics, artificial intelligence, robotics, and computer vision to be assembled. What lessons can New Zealand learn from the Israeli innovation experience?
We have been looking at...
- Iceland’s fish farming regime facing radical shake-up
- Alaska’s newest gold rush seaweed
- New microbiome management tech improves the future of fish farming
- How West Africa can reap profit from global chocolate market
- Domino’s and Microsoft team up to use AI for smarter pizza orders
- Using AI to create ingredients with enhanced nutrient bioavailability
- Ben & Jerry’s relaunches plant-based line with oat recipe
- Israel and the UK clinch $2.1 million deal for joint science and innovation projects
- A smart seeder that maps soil moisture and carbon
- Technology: AI drones to help farmers optimize vegetable yields
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Published by Te Puna Whakaaronui. Not government policy.