IN THIS ISSUE: ...Cold comfort for global wine....Seeds of success...Weather eye on shipping...
Cold comfort for global wine
A report last week from the International Organization of Vine and Wine, found global wine production in 2023 is at its lowest in 60 years. The report found adverse weather conditions in Europe, the US and the top-growing countries in the Southern Hemisphere hurt production. The only country in Southern Hemisphere with above-average production is New Zealand.
Grapes are fussy about the weather and terroir is fundamental to the quality and taste of the end product. Frost, heavy rainfall, and drought have significantly impacted global output with consistently high temperatures threatening up to 85% of current wine-growing areas, unless growers diversify and expand what and where they grow.
A year of fire and ice is driving industry wide change with heavy investment in robotics, climate management systems, economical water use, varietal research and more. Sustainability is a major focus, with some industry experts predicting the extinction of glass, cork, and even true vintage wines. The traditional volume producers of Italy, France, California, Chile, South Africa and Australia are adopting a range of innovations. A vineyard in Italy, the top wine exporting country by volume, has even taken inspiration from work growing plants using zeolite on NASA’s International Space Station.
France, predictably, has made much progress with practice change, pruning later to avoid frost damage, using leaf canopy to shade grapes, horse-drawn tillage and planting around vines for soil health and moisture. Strict appellation d’origine contrôlée has seen up to 12% of harvest area lost in some regions. With national exports worth €12.3 billion and accounting for about one-third of total global exports, it’s clearly worth the effort.
The ‘New World’ is not any better placed than Old World vineyards when it comes to resilience. Once booming, the value of Australian wine exports plummeted by 10% to AU$1.86 billion in the year to June 2023, the lowest level since 2014. Climate change is affecting traditional growing areas and yields, and consumer preference is moving towards better quality wines at the expense of volume brands.
Previously cold regions such as Japan, Ireland, Poland and Scandinavia are experimenting with viticulture. Sweden's wine industry is thriving as climate change sparks innovation and growth. Although impacted by rain-storms and working through distribution issues, wine production is flourishing as a result of climate change-induced warming temperatures and adapted grape varieties. India and China have been suggested as future growing regions.
New Zealand wine producers increased export sales by a record 23% over the past year, exports surged to NZ$2.4bn in the year to 30 June 2023, the largest one-year growth in the industry's history. Climate change will have long-term consequences for New Zealand’s $6 billion horticultural industries with disease a significant risk. Results of a Lincoln University industry research project to understand risk and adaption methods, due this month, are being eagerly awaited by some.
Does New Zealand have a clear natural advantage? Can our wine production industry adapt by introducing new varietals across out changing microclimates?
Seeds of success
A study of under-utilised crops released last week by the UK’s Food Farming Futures considered why nearly 50% of global calorie consumption comes from the same three crops: wheat, rice, and maize. It examined the role of food production policy and value chain approaches in relation to access to diversity of seeds, the ecological aspects of agricultural production, the power positions of stakeholders, the nutritional value of food, and food security and sovereignty.
Historically, foods have had strong regional crop variation with a diversity of tastes, textures, diets, and nutritional value. Modernisation and global markets have resulted in mainstream production of only 1% of the edible plants available to us. Underutilised-crops (UCs) are often defined by their relatively low yield potentials, and while they can significantly reduce the use of agrochemicals, most are not considered suitable for today’s energy and carbon-intensive agriculture. International trade agreements have contributed to the homogenisation of food production by defining what should be grown and where. In Europe this resulted in a legume-dependent, cereal-specialised cropping system, discouraging farmers from diversifying cultivation.
Food Farming Future considered the work of the European RADIANT (Realizing Dynamic Value Chains for Underutilised Crops) project which is investigating the conditions which would enable a return to cultivation of UCs. The fragmented policy landscape from seed production and marketing, to cultivation, processing, retail, and consumption is a main barrier. They found:
- the current seed regime is organised around common crops, limiting exchange of seeds of less common species and varieties;
- large-scale, industrialised processing facilities cannot provide adequate solutions for UCs;
- power asymmetries in trade and competition, put farmers in a weak position;
- the EU Common Agricultural Policy, does not fully complement the Food to Fork strategy, incentivising cash crop production without addressing nutritional, dietary needs, food sovereignty, and security; and
- niche markets are being developed; and,
- short supply chains can enable greater use of UCs, are more resilient and can reduce reliance on imported goods.
RADIANT concludes that coherent, environmentally guided, food policies such as the Green Deal or the Farm-to-Fork Strategy, are fundamental for healthier, sustainably production although there is much work to be done. Does New Zealand need a food strategy? Can our $221m seed export sector grow through production of under-utilised crop initiatives?
Weather Eye on SHipping
Supply chain traffic-jams driven by pandemic disruption have faded into our collective memory as most global trade hubs are mostly back on track. The Federal Reserve Bank of New York’s global supply chain pressure index, which accounts for transportation costs and manufacturing indicators, shows a return to below pre-pandemic levels.
However, there are a raft of reasons why global supply is not plain sailing:
- satellite data shows nearly 100 cargo ships, carrying fuel, bulk dry goods, containers and cars, are currently waiting outside major South African ports. The terminals are dealing with issues ranging from bad weather to aging equipment and are adding costs estimated at US$5m per day. One of the world’s biggest container lines will apply a congestion surcharge of US$210 per 20-foot container through SA ports next week.
- The El Niño drought is leaving the Panama Canal parched, impacting traffic, with at least one oil tanker carrying fuel to New York adding thousands of miles to its journey in order to avoid disruption.
- Ships sailing to European ports face a combined carbon-emissions bill of EU$3.6 billion next year, the start of a levy that’s almost certainly going to rise as the continent steps up efforts to combat climate change.
- In mid-November Australia's second-largest port operator shut down because of a cyber security incident, impacting the movement of goods in and out of the country.
- Last week Nigeria re-iterated demands for shipping companies to pay outstanding tax bills totalling millions of dollars, reviving a dispute that triggered a spike in freight costs and prompted some tankers to steer clear of its waters.
So what does this mean for New Zealand –with a total of 99% of trade by volume, and 78% of imports by value, carried as sea freight we are exposed to the vagaries of international shipping. How can New Zealand build resilience into shipping services?
We have been looking at...
- Why farmers are sprinkling volcanic dust in their fields; a Scottish startup is spreading crushed basalt rock on farmland to remove carbon dioxide from the atmosphere.
- While consumers are spending less, inflation continues to boost FMCG sales. A new report finds growth and resilience are possible through strategic pricing structures that support new product development and sustainability.
- Study finds some longevity-related diets, particularly involving whole grains and nuts, can increase our lives by up to a decade.
- Gourmet pureed foods ... for adults
- How 2023 scorched our dinner plates – the impact of the record-breaking heat around the world on food prices.
- Food labels should show if ingredients come from overseas, UK Farmers Union
- Enhanced rural connectivity has the potential to provide rural manufacturers with a 7%+ turnover boost, adding an extra £8.8bn to the UK economy, new research suggests.
- Fruit and veg shortages to be “new normal” for shoppers, empty supermarket shelves could become “business as usual” as existing challenges worsen and new ones emerge.
- Thirty-six alt seafood startups spanning fourteen countries o-fish-ally joined forces to create the Future Ocean Foods Association.
Published by Te Puna Whakaaronui. Not government policy.