PMAC weekly update 7th to 14th September

1. Government agencies: ICPR Changes

2. New Zealand News: NZ horticultural industry pushes for extended worker visas; McCain resumes normal chip production; Bright future for avocados in New Zealand; Group to advise on freshwater rules; Black gold: Biochar; Sustainable Vegetable Systems receives $4.7m; Tomato shortage follows lockdown; AbacusBio signs deal with Bayer; New gene-editing test a 'game changer' for New Zealand; Rural businesses vulnerable to hack attack; Oprah Magazine reviews Jazz™ apples

3. International news: Using blockchain to combat Australia’s food and wine fraud problem; We call on governments to support the adoption of ePhyto'; EC prepares new initiatives to boost organic farming sector; Key priorities for EU Agri ministers during COVID-19; US: Walmart to roll out a new supplier excellence program in early 2021; Kenyan trade surges as COVID-19 restrictions lift globally; Italy-China Forum: a new Silk Road for the fruit and vegetable sector; Asia Fruit Logistica ON opens exhibitor registrations; Maersk confirms Asia-Europe ocean-rail route; Maersk snaps up customs service group; Container shipping reaches near pre-Covid levels’; Platform to improve visibility on air cargo infrastructure and capabilities; Air Freight Cost for Australian Cherries Doubles, Even With Subsidies; China’s Fruit Import/Export Statistics for First Half of 2020 Released; US (CA): Ten things being done to ensure leafy greens safety this fall; Bardsley targets carbon-negative output; Is hydroponic farming actually sustainable?; Eco-responsible orchards label; Food insecurity a global threat; Hotel decoration trends for 2020/2021; Floraconcepts linked to Floriday; Research offers plant efficiency hope

Comments While last weeks articles may have been pedestrian this weeks article are diverse with many interesting themes – for example articles dealing with freight are becoming more frequent with 5 in this week’s International section. Since the beginning of this year articles on freight have increases in number from an average of one a month in 2019. One other article I’d like to draw your attention to in this section is one that talks about the Australian Government’s support to establish a blockchain system. This will support Australian exports by providing greater transparency about their origin and authenticity. While the Australian Government is not building or endorsing a blockchain system it does have a policy of encouraging . If you are interested in the Australian blockchain road map it is available here

In the New Zealand section, I’ve included an article on cyber security and the threat to rural businesses. A timely reminder given the recent increase in cyber-attacks and the fact that even though a business is rural it is just as vulnerable as any urban business.

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A new development this week that is significant for New Zealand producers and exporters is the news that a test has been developed which can show if a new variety is a result of CRISPR editing. To date it has been impossible to show that gene editing (where no foreign DNA is introduced) has occurred during the development of a new variety. Gene editing is not permitted in the EU or New Zealand. Many other countries are now using this method to develop new varieties with characteristics that make them more tolerant to climate extremes and/ or provide additional health benefits. This test will allow conventionally bred varieties to benefit from the claim of being GE free. If New Zealand is to continue to reject gene editing this test hopefully will allow out exporters to command a premium in some markets and to allow us to compete with varieties that have characterises that in other respects could make them more attractive to producers and consumers.

1. Agency news 1.1. ICPR changesThe ICPR for the European Union has been updated with changes the species listed in Appendix 2 –

which provides the Plant species requiring an additional declaration for Xylella fastidiosa and removed

all references to Reunion Island from Part 2.4 Phytosanitary Certificates.

2. New Zealand News

2.1. NZ horticultural industry pushes for extended worker visasIn July, the horticultural industry warned it might have to cut back on the harvest if the government did not move quickly to head off a critical labour shortage in spring. At that time, former Immigration Minister Iain Lees-Galloway promised the horticultural industry that it would be able to recruit up to 14,400 registered seasonal workers from Pacific Islands later this year.

It was announced weeks ago that those already in the country with visitor visas due to expire before the end of October would have their visa automatically extended for five months. Temporary migrants unable to leave due to international travel restrictions would receive a new two-month Covid-19 short-term visa, which would kick in when their current visa expired. Full article available here

2.2. McCain resumes normal chip productionDue to a decreased demand in New Zealand, one of the country’s largest potato chip manufacturers was forced to cut production significantly for six weeks at its Timaru factory. McCain Foods agriculture director Australia and New Zealand John Jackson said the company’s factory at Washdyke, Timaru, had reduced its usual 24/7 production to five day a week shifts when stock built up due to reduced

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orders. The plant usually operates 24 hours a day, seven days of the week for about 330 days of the year, he said.

At its Washdyke plant, McCain employs 140 people; Jackson said they were able to retain all staff during the period of reduced production. Fifteen weeks after takeaway food businesses and restaurants were allowed to re-open, the factory has returned to normal production. According to stuff.co.nz¸ all 550 million potatoes, processed through the McCain Foods Timaru plant each year, are harvested from New Zealand soil. Full article available here

2.3. Bright future for avocados in New ZealandLast year the Avocado sector generated $150 million in sales from 6.4 million trays of fruit, with two-thirds of that being export income. The industry has high hopes for expansion, with a target of $1 billion worth of sales set for 2040. Much of the land change shift is coming in Northland where large scale syndicates and kiwi investment is helping change the landscape from what has been largely pastoral, dry stock and dairy properties to expansive orchard operations. In the coming years, the rate of expansion is expected to shift the balance of avocado orchards shared between Northland and Bay of Plenty from its present 40:60 split to nearer 50:50. This expansion is based upon some promising market outlooks for New Zealand avocados. Full article available here

2.4. Group to advise on freshwater rulesA Governance group that includes farming leaders has been established to interpret and help implement the new freshwater reforms. The group is made up of four representatives from regional councils (two chairs and two chief executives), DairyNZ, Beef + Lamb NZ and Horticulture NZ chief executives Tim Mackle, Sam McIvor and Mike Chapman, and representatives from the Maori Freshwater Forum Kahui Wai Maori. It also includes representatives from environmental NGOs, the Ministry for the Environment and the Ministry for Primary Industries.

The group’s co-chair, Taranaki Regional Council chair David MacLeod, says its meeting schedule is yet to be finalised as the group’s secretariat is at present determining the priority of work that needs to be undertaken. The group’s terms of reference specifically state that it is not to consider policy changes to the Government’s Essential Freshwater package.Instead, it is tasked with ensuring the new rules can be consistently implemented across the country, although MacLeod says there will clearly be local aspects to regional plan developments. Councils are the bodies that will have to enforce the new rules, which he says will come at a “significant” cost to them, as it’s highly likely additional staff will be needed to carry that role out.

Many of those councils are currently in the process of preparing long-term plans to cover the next three years and MacLeod says their role enforcing the regulations will affect the budgets contained in those

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plans. He says the governance group has a big and important job ahead of it to ensure there is a clear vision as to how the regulations will be implemented. Full article available here

2.5. Black gold: BiocharBiochar is carbon that's been specially burnt to add to soil and, like a sponge, it holds onto water, oxygen and nutrients. “It also provides a habitat for micro-organisms and that's fundamental for a soil,” said Biochar Network New Zealand's Dennis Enright.By itself, biochar has little nutrient value. It needs to be charged like a battery. Mixing it with water and fertilisers makes it become a storage system for soil. It turns it into slow-released fertiliser so it's not going down the drain.Down the drain is an accurate phrase, because biochar means the soil needs less water.Jason Thomas of ST Growers has been adding biochar to his potato crop for five years. And has seen a 40 to 50 per cent reduction in their commercial fertiliser bills,” Full article available here

2.6. Sustainable Vegetable Systems receives $4.7m A project to boost vegetable growers’ environmental efforts has received funding from the Ministry for Primary Industries (MPI). The funding is in addition to $2.8 million already invested by industry into Sustainable Vegetable Systems (SVS), a four-year project focused on improving crop nutrient management for the growing of potatoes, onions, brassicas, butternut squash, carrots, and leafy greens.

The SVS project was established by Potatoes NZ, partnering with Horticulture New Zealand and vegetable groups Onions New Zealand, Vegetables New Zealand, Processed Vegetables New Zealand, and NZ Buttercup Squash, under their umbrella of the Vegetable Research and Innovation Board. “This project will give growers the ability to accurately manage nutrient flows, while meeting demand for quality produce, meaning better environmental outcomes,” says Potatoes NZ chief executive, Chris Claridge.

Plant & Food Research is undertaking the work to quantify and model nitrate leaching. The project will engage with vegetable growers around New Zealand, providing tools to help them apply effective nitrate management techniques suited to their land and operations. The Sustainable Vegetable Systems project will have nine commercial field sites across the country in Canterbury, Hawke’s Bay, Horowhenua, Waikato and Pukekohe as well as trials at Plant & Food Research facilities in Lincoln and Hawke’s Bay. “This project will enable growers to assess which management techniques will best reduce their risk of nitrate leaching, so they can confidently make changes in practice,” says Claridge. Full article available here

2.7. Tomato shortage follows lockdown

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Tomato prices rose 38 percent in August 2020 to a weighted average price of $13.65 per kilo, an all-time high, Stats NZ said last week. A shortage of tomatoes due to COVID-19 uncertainty caused higher than normal prices. “About 40–50 percent of tomatoes are sold to independent grocers, cafes, and restaurants, which were unable to open during COVID alert levels 3 and 4 in April,” consumer prices manager Nicola Growden said. “Due to the uncertainty of COVID-19, many growers delayed or reduced replanting tomato crops at this time. We are now experiencing this supply shortage, which is the main reason for this price rise. Tomato prices follow a very seasonal pattern peaking in August. This peak has been generally trending downwards, but this year tomato prices have climbed to a new high.”

A significant rise in prices for both the emissions trading scheme and natural gases added extra pressure on winter tomato growers as costs for heating glasshouses increased.

Annual food prices increased 4.2 percent in the year ended August 2020, with fruit and vegetable prices increasing 19 percent. The main contributors to higher fruit and vegetable prices included prices for: tomatoes (+ 37 %), potatoes (+ 37 %), courgettes (+ 183 %), lettuce (+ 24 %) and cucumber (+ 39 %). The only fresh fruit and vegetable prices that decreased in the year were nectarines, onions, pineapples, and olives. Full article available here

Bits and pieces2.8. AbacusBio signs deal with BayerDunedin-founded agribusiness consulting company AbacusBio has announced a deal with global multinational company Bayer around predictive plant breeding. Under the agreement, Bayer would incorporate AbacusBio’s expertise in trait prioritisation and valuation to advance products that anticipated grower and market needs.

AbacusBio’s technology could improve predictions that influenced trait improvement priorities, market segmentation and economic potential. One of the key factors that underpinned the success of genetic improvement programmes was balancing genetic gain across a combination of traits to meet production, quality and sustainability needs in the market.The Bayer deal had also occurred during the Covid-19 pandemic and it showed innovation could continue — and happen remotely — when people were unable to travel. It was also another step in ensuring sustainability of elements of food production. Full article available here

2.9. New gene-editing test a 'game changer' for New ZealandA newly-developed test that can tell whether a crop has been genetically altered has been called a “game changer” for New Zealand’s high-value export market. New research, partly funded by a New Zealand group, has outlined a method for discovering whether a crop has been gene edited (GE).

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Rapid advances in gene editing technology have led to claims that genetically altered crops could not be differentiated from their natural counterparts. The open-source test, published last Tuesday morning, has shown that is not the case. Among the international groups behind the research was the Sustainability Council of New Zealand, which said the test could have significant implications for New Zealand's high-value food producers.

A recent survey of 9000 New Zealanders on a range of topics found GMOs were among the most divisive issues. Those who oppose GMOs have concerns about their safety, and the way in which they could undercut local food producers. Others have argued gene editing more generally could be beneficial to New Zealand; It could increase the yield of some crops, or make pastures more productive. It could also be important in the country’s Predator Free 2050 goal.

Those issues aside, some have argued there is a strategic benefit in remaining GMO free. The likes of Fonterra and Zespri have products certified as GMO Free, which can fetch a premium in markets such as Europe, where public opposition to GMOs is entrenched. A threat to this GMO-free status has been the development of genome editing methods such as CRISPR, which allow highly targeted modifications to specific genes. Until now, it has been unclear whether genome edits could be detected, which would pose a problem for regulators wanting to enforce anti-GMO laws. The flow on effect would mean no food producer could plausibly claim a product was GE free.

Only two gene edited crops are grown commercially worldwide. As technology develops, however, it has potential to become a major influence in global food production. “For leading New Zealand exporters selling to markets that reject GMOs, and those who go the extra mile to gain ‘non-GM’ certification, the test is a valuable tool,” said Simon Terry, the Sustainability Council’s executive director. Full article available here

2.10. Rural businesses vulnerable to hack attackThousands of agribusiness firms and farms are open to internet hackers, thanks to a lack of investment in security technology and a growing number of sophisticated assaults upon accounts. Coming the same week as the NZX faced continual denial-of-service (DDoS) attacks, a survey by telco 2degrees has revealed 52% of small to medium agribusinesses do not have a security resource in place to protect business data from cyber threats.

A security resource can be as simple as firewall and password protection, or as advanced as a subscriber-based internet security software programme. Cyber attacks on New Zealand businesses reported to monitoring agency CertNZ increased 38% since 2018, with phishing and credential harvesting being the most common, followed by scams and then fraud. Total financial loss also jumped from $14 million in 2018 to $16.7m.

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“In the case of many agribusinesses and farms, there is often the perception you are quite isolated and removed from risks urban businesses face. In fact, that’s far from the case with the internet,” 2degrees chief business officer Andrew Fairgray said. It is a level of naivety that leaves businesses vulnerable to hacking practices including phishing emails. These seek sensitive information on the entity by way of a seemingly authentic email. Other assaults include ransom-ware extortion demands and surreptitious software access to devices seeking out personal data. This can include the ability to monitor and record keystrokes, effectively uplifting all passwords used on any accounts.

Fairgray says there is a misconception that if data was moved to the cloud it would be more secure than keeping it on a computer hard drive. However, there was still the risk that visiting unsecure websites gave hackers access to the device’s data.

Failure to maintain and update websites was one area many smaller agribusinesses left themselves vulnerable. With websites built using third party plug-ins like a contact link or order form, each plug- in needs to be updated as security patches come out, and so often that just does not happen, This leaves the website vulnerable to the insertion of code that would then be used to access accounts and steal data.

Some of the simplest security lapses can be the most dangerous. The mobile phone often holds more sensitive data than a PC, and one without a password was easily stolen, exposing the digital heart of the individual and their business. Farms are also particularly vulnerable due to the blurring of business and home use.

People to be smarter about their passwords. They need to be strong and they need to be unique,” A good way to arrange this is to use of password lookup apps like LastPass as a way to store multiple passwords that only require one-for-all, and can be entered without using key strokes. Programmes like Office 365 have military grade security, but it comes to nothing without a sound password attached.Keeping up with software updates, rather than just ignoring the update alert would also keep machines safer.“CERTNZ was established to improve New Zealand’s cyber security and has some valuable pointers for businesses to help stay safe online. Its website offers some key tips to reduce increasingly common cyber-attacks.

Install software updates: these fix vulnerabilities that hackers can otherwise exploit for access. Use two-factor authentication (2FA): anyone logging in needs to provide another device to

validate their access. Back up data: all data needs a second storage site in case it is compromised, in an easily

restorable form. Secure your devices: ensure any anti-malware software is enabled to prevent malicious software being

downloaded. This includes staff devices being used on-farm or business. Visit www.cert.govt.nz for more information. Full article available here

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2.11. Oprah Magazine reviews Jazz™ applesThe Oprah Magazine, described Jazz apples as “irresistibly crisp and juicy” in a story about the nutritional benefits of apples. A good example of how to raise the profile of a New Zealand Bred apple variety so it becomes a lifestyle must To read the full article, click here. Full article available here

3. International news

Comment

Regulatory3.1. Using blockchain to combat Australia’s food and wine fraud problemNational Blockchain Lead Chloe White -from the Department of Industry- recently stated that as Australia is a significant exporter of fruit and vegetables, making use of blockchain innovation can offer a provenance option to the food and wine fraud that costs Australia a minimum of $1.7 billion yearly. Confirming the credibility of fruit and vegetables that are declared to be Australian, but in reality are made in regional and abroad markets, is among the biggest difficulties dealing with the nation’s farming market.

Now, a supply chain online forum including regional specialists and federal government authorities has actually promoted utilizing blockchain innovation to combat the $1.7 billion worth of food fraud yearly damaging Australia’s main sector. Click here to read the full article. Full article available here

3.2. We call on governments to support the adoption of ePhyto'The Industry Advisory Group (IAG) of the IPPC ePhyto Solution calls on governments to support the adoption of ePhyto to facilitate international agricultural trade, which would be crucial in safeguarding global food security beyond the Covid-19 recovery period.

Global trading operations of plant products rely on crucial communication and transparency of phytosanitary requirements to protect plant health and ensure international unrestricted and safe trade of goods. Phytosanitary certificates facilitate such trade and benefit plant production sectors as well as consumers. Electronic certification as part of a broader endeavor for trade facilitation has proven itself indispensable during the ongoing Covid-19 pandemic to maintain continuity of agricultural trade despite limitations on air traffic and courier services. The IPPC ePhyto Solution is a globally uniform approach with improved crisis resilience, consistency, security, fraud prevention, sustainability and replacement of paper documentation.

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The ePhyto Solution is led by the IPPC Secretariat with the involvement of other international organizations and governments, to which 90+ countries are registered. A number of countries such as Argentina, Chile, Fiji, Ghana, Morocco, Netherlands, New Zealand, Sri Lanka, Samoa and USA are already operating the system to transmit phytosanitary certificates safely from NPPO to NPPO. The EU TRACES system was connected to the ePhyto Hub in May 2020 for imports only with the aim to be fully operational by the end of the year.

The IAG is concerned that many countries have taken a very individual path to digital certification, that may end when the emergency measures expire. This has unfortunately led to additional work and for both operators and government organizations. Full article available here

3.3. EC prepares new initiatives to boost organic farming sectorThe European Commission has launched a public consultation on its future Action Plan on Organic Farming. This sector will play an important role in achieving the European Green Deal ambition, and reaching the objectives set out in the Farm to Fork and Biodiversity Strategies. It is a priority for the Commission to ensure that the organic farming sector has the right tools in place as well as a well-functioning and consensual legal framework which is key to achieving the objective of 25% of agricultural land dedicated to organic farming. While the new organic regulation provides a solid basis, secondary legislation still to be adopted needs to be equally resilient. At the request of Member States, the European Parliament, third countries, and other stakeholders, the Commission therefore proposed last week postpone the entry into force of the new organic legislation by one year, from 1 January 2021 to 1 January 2022.

The Commission's Farm to Fork and Biodiversity Strategies includes the target of reaching 25% of agricultural land under organic farming by 2030. To help reach this target, the European Commission is putting in place and making use of key tools:

An Action Plan for Organic Farming, which will be instrumental in helping boost the sector, both at demand and supply level. The public consultation aims at gathering feedback on the draft plan from citizens, national authorities and relevant stakeholders. The questionnaire will be online for a period of 12 weeks, until 27 November

The new organic legislation, which will reflect the changing nature of this rapidly growing sector. The postponement will allow sufficient time for the necessary extensive consultations and legislative scrutiny.

The EU agri-food promotion policy, which supports the European agricultural sector by promoting its quality features on the internal market and in third countries. For the year 2021, the Commission plans to allocate a specific budget of €40 million to organic farming under the promotion policy. This budget will co-finance promotion actions and information campaigns on the EU organic sector, raising awareness about its qualities and aiming at stimulating demand.

In addition to these key tools, the current and future Common Agricultural Policy (CAP) will continue to support the further development of organic farming in the EU. Full article available here

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3.4. Key priorities for EU Agri ministers during COVID-19The political start of the second semester 2020 was eagerly awaited by the entire European farming community. Many essential issues were put on the agenda of the German Presidency Informal Council on Agriculture held in August .During his speech Copa President Joachim Rukwied stated “The outbreak of the coronavirus is still causing a dramatic impact on rural areas across the EU, with both immediate and medium- to long-term consequences in many sectors, as recognised by the Commission. The Union’s medium- to long-term response to the pandemic must be based on a solid and robust economic recovery programme that takes into consideration an increased sustainability, a response to climate change and an improved biodiversity protection. It must also continue to strive to improve the Union’s single market and the functioning of the food supply chain.” He underlined the three key points which must be taken into account: EU food security, farming competitiveness and decent income for farmers. Full article available here

Business/ Industry3.5. US: Walmart to roll out a new supplier excellence program in early 2021Walmart told its more than 100,000 suppliers about its new Supplier Quality Excellence Program (SQEP) which will measure suppliers on four areas as part of an effort to improve supply chain efficiency. Through SQEP, suppliers will be required to meet Walmart supply chain standards. Suppliers will be charged when product shipped through the supply chain does not meet the standards to offset any costs generated because of non-compliance, according to the memo.: talkbusiness.net

3.6. Kenyan trade surges as COVID-19 restrictions lift globallyKenya's exports and imports rose significantly in July as various countries lessened COVID-19 restrictions, boosting trade activities. Exports rose to 481 million dollars in July from a low of 398 million in April when COVID-19 had hit many countries, according to KNBS. Full article available here

3.7. Italy-China Forum: a new Silk Road for the fruit and vegetable sectorIn the first six months of 2020, China’s imports of Italian fruit and vegetables increased by 74%, while last year a 20% increase was recorded. However, it is also true that Italy accounts for 1% of exports to China. These numbers emerged from the China-Europe debate that kicked off the second day of Macfrut Digital (9 September).

Renzo Piraccini, President of Macfrut, opened the Forum and talked about a “New Silk Road” for the fruit and vegetable sector. ‘These numbers show that the European market has tremendous potential to offer to China. We have set ourselves the goal of creating a logistics hub in Northeast Italy for Chinese

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agri-food products intended for the European market and turn the platform into a hub for exporting fruits and vegetables to China. It is a great opportunity and we must seize it if we are to further expand this fruit and vegetable market, since 86% of products are intended for Europe. Adequate infrastructure is essential in order to achieve internationalisation.’

Ma Hongtao, General Manager of the ATPC (Agricultural Trade Promotion Centre), the promotional body of the Chinese Ministry of Agriculture and Rural Affairs, also focused on the theme of the Silk Road. ‘China and Italy have a long-standing history of trade. We have a new mission: to rebuild a new, modern Silk Road as a bridge to connect two distant countries, Europe and China, and the fruit and vegetable sector is a great start to this process. In 2019, China exported over 1 million tonnes of fruit and vegetable products to the EU, 24% of total agricultural exports, including 136,000 tonnes to Italy. ’ Full article available here

3.8. Asia Fruit Logistica ON opens exhibitor registrationsAsia Fruit Logistica will take place on 18-20 November in an entirely new format this year. Asia Fruit Logistica – the new online home for the thousands of exhibitors and visitors who attend Asia’s leading fresh fruit and vegetable trade show every year – provides a unique opportunity to reconnect and do business in Asia. Exhibitor registrations are officially open, with exhibitors at this year’s event able to choose from three options: ON Business; ON Premium; and ON Corporate. Information regarding each of the options can be found here.

Asia Fruit Logistica ON features an online meeting place that uses the latest software for business matchmaking and meeting scheduling. The concierge-style platform uses a sophisticated algorithm to recommend the most relevant people and content to each attendee. Asiafruit Congress ON streams live on 17 November, as always one day ahead of Asia Fruit Logistica ON. Full article available here

3.9. Maersk confirms Asia-Europe ocean-rail routeMaersk has announced its AE19 ocean-rail product from Asia to Europe will become a permanent weekly service following increased demand. The service was originally launched in July 2019 and includes a combination of a short-sea and intercontinental rail product, which connects several origins in Asia with ports in Northern Europe. Full article available here

3.10. Maersk snaps up customs service groupAP Moller–Maersk has announced that is has finalised the acquisition of KGH Customs Services, a pan-European customs services provider, as it further strengths its capabilities as an integrated container logistics company offering end-to-end supply chain solutions to its global customers.Full article available here

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3.11. Container shipping reaches near pre-Covid levels’In recent months, container shipping has staged a sharp rebound, now nearing pre-pandemic levels. However, the outlook remains clouded in uncertainty.

He attributed the expected rebound to three main factors: a surge in demand for personal protection equipment (such as masks and gloves), and medical

goods; inventory build-up during the shutdowns are returning online again; a shift in consumer purchasing behavior as people cut back on travel and hospitality and spend

more time and money at home.ONE's liner network services more than 100 countries, operating in a sector that moves over 90% of global goods, which gives the company a unique window into global economic activity. Though there appears to be a rising tide lifting most boats, the group's CEO says some pockets of weakness remain. "A lot of the automotive production, whether in Europe, America, Asia -particularly in Japan- is still quite weak," Nixon explained .Full article available here

3.12. Platform to improve visibility on air cargo infrastructure and capabilitiesThe International Air Transport Association (IATA) has launched IATA ONE Source, an online platform which helps the air cargo industry match shipping needs with the availability of infrastructure capabilities and certifications of service providers across the value chain.

ONE Source lists the latest operational information on airlines, airports, cargo handling facilities, freight forwarders, ground handlers, shippers, and trucking companies. All critical information contained on ONE Source has been verified by IATA to help ensure its accuracy. IATA ONE Source is free for all service providers across the air cargo supply chain. Full article available here

3.13. Air Freight Cost for Australian Cherries Doubles, Even With SubsidiesAccording to projections from the U.S. Department of Agriculture’s Foreign Agricultural Service, the production of Australian cherries in marketing year (MY) 2020/21 is expected to increase to 21,000 metric tons, assuming that the weather holds steady. Official statistics for the production volume in MY 2019/20 have not yet been released, although current industry projections put last year’s figure at approximately 18,500 metric tons.

The export volume in MY 2020/21 is expected to reach approximately 5,000 metric tons. Although this represents an increase from last year, transportation is expected to present a serious challenge.

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Almost all Australian cherry exports in the past five years have been shipped via air freight, with only 1% being shipped by sea. Unfortunately, air freight has also been heavily disrupted by the COVID-19 pandemic. Previously, cherries were often shipped on readily available passenger flights. Exporters are certain to face issues if they have to switch to cargo planes because of the limited availability of passenger flights.

The Australian government has implemented an assistance package called the International Freight Assistance Mechanism to help producers successfully export perishable goods. Nevertheless, industry sources have indicated that even with this government support, exporters will still have to pay almost twice as much in shipping costs compared to pre-COVID rates.. Australia exported 4,550 metric tons of cherries in MY 2019/20, with China being the number one market at 33%, followed by Hong Kong at 14%. Full article available here

3.14. China’s Fruit Import/Export Statistics for First Half of 2020 ReleasedRecently released data from China reveal that in the first six months of 2020 China imported approximately 3.64 million tons of fruit with a total value of $6.33 billion, corresponding to an 8% decrease in volume and a 14% increase in value relative to the same period of last year.

Imports Ten categories accounted for 84% of the total import value. Ranked in descending order of value, the top ten exporters of fruit to China in the first half of 2020 were Thailand, Chile, Vietnam, the Philippines, Australia, New Zealand, Peru, Ecuador, Indonesia and Egypt.

Second in value Fresh cherries were fresh cherries ($1.23 billion, +34% YOY) In the first half of 2020, China imported 169,000 tons of fresh cherries, corresponding to a 27% YOY increase. The vast majority (165,000 tons, +28% YOY) originated from Chile.

Fresh kiwifruit 8th in value ($180 million, +0% YOY). China imported 51,000 tons of fresh kiwifruit in the first half of 2020. The main exporters of kiwifruit to China over this period were New Zealand (35,000 tons, +3% YOY), Chile (8,000 tons, −45% YOY), Italy (6,000 tons, +44% YOY) and Greece (1,400 tons, −26%).

Fresh apples Between January and June, China’s fresh apple imports fell by 32% to 46,000 tons, with an import value totalling $79.81 million (−34% YOY). Over half of this import volume (25,000 tons) originated from New Zealand, corresponding to a 29% YOY decrease. In 2019, owing to a sharp drop in the production of domestically grown apples, China’s imports of apples from New Zealand witnessed a 77% YOY increase. However, as the supply of domestic apples began to recover in late 2019, the market demand for imported apples displayed a clearly waning trend in the first six months of 2020.

Exports The top seven fruit categories by export value in the first six months of 2020 were fresh apples ($510 million, +21% YOY), citrus (including mandarin oranges and satsuma oranges, $440 million, +30% YOY), fresh pears ($300 million, +88% YOY), lemons and limes ($120 million, +59% YOY), fresh grapes ($90 million, +13% YOY), peaches and nectarines ($70 million, +20% YOY) and oranges ($60 million, +0% YOY). These seven categories accounted for approximately 80% of the total export value.The top ten markets for China by export value were Vietnam, Thailand, the Philippines, Indonesia, Malaysia, Hong Kong, Myanmar, Bangladesh, the U.S. and Japan. Full article available here

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Food safety3.15. US (CA): Ten things being done to ensure leafy greens safety this fallTo help communicate all that is being done throughout the leafy green Industry in the USA , the California Leafy Greens Marketing Agreement has issued an action list of ten things being done to keep leafy greens safe.

The list of the ten things being done to make leafy greens safer:1. LGMA food safety audits are ongoing during COVID-19.2. The California LGMA is 'heavying up' audits during the season transition.3. LGMA requires 100% compliance.4. 2019 irrigation water standards are being implemented and enforced.5. New food safety updates approved by LGMA Board in August 2020.6. State agencies are monitoring compost used on leafy greens farms.7. Government inspectors are working to ensure farms are in compliance with the Produce Safety

Rule.8. New research projects are underway to learn more about potential risks involved in farming

leafy greens.9. The LGMA verifies with every audit that a traceability system is in place at all member

companies.10. The LGMA supports a Leafy Greens Traceability Pilot to improve traceback through the supply

chain.Full article available here

3.16. Bardsley targets carbon-negative outputBardsley England has teamed up with energy regeneration firm Engie to achieve its target of delivering carbon-negative fruit.According to Bardsley, the new partnership will help it to transition to net-zero across all its UK fruit-producing operations and support its move to become a carbon-negative business.

The contract will see the two organisations work closely together on a roadmap of projects to first identify all emissions - direct, indirect and through the supply chain (Scopes 1, 2 & 3) associated with cultivation, harvest, land management, storage, packaging, processing, transportation and waste disposal. Full article available here

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3.17. Is hydroponic farming actually sustainable?According to the UN, the world is on the brink of its worst food crisis in 50 years. The global food industry is searching for a more sustainable and accessible system for producing healthy food, particularly fresh fruit and vegetables. Techniques such as hydroponics and vertical farming may provide the solution by maximizing overall output and minimizing the use of space, soil, and other resources.

But what exactly is hydroponic farming? And is it actually sustainable? This article provides a sentence description of the 3 different forms of hydroponic farming and states “it is able to produce nutrient-dense food anywhere in the world, at any time of year, and using fewer resources than traditional methods.” Full article available here

3.18. Eco-responsible orchards label In France with a popularity reaching 49% in 2019, the Eco-responsible Orchards label is perfectly in line with societal expectations, even stronger since the lockdown. Exclusively French, the eco-responsible orchards bring a guarantee of respect for the environment and biodiversity in order to offer healthy fruit to consumers.

The producers certified Eco-responsible have been carrying out their thorough technical work for 20 years. The objective? To best meet societal expectations with an agro-ecological production that limits its environmental impact as much as possible. They are also committed to a project aiming to reduce CO2 emissions in order to obtain the Low Carbon label for the Eco-responsible Orchards by 2024.In 10 years, the Eco-responsible Orchards have gained a nice reputation in France, where it is known by 1 out of 2 consumers. It is also the label which French consumers trust the most, at more than 79% compared to the other labels. Full article available here

3.19. Food insecurity a global threatThe inaugural edition of the Ecological Threat Register (ETR), produced by the Institute for Economics and Peace (IEP), has outlined the regions of the world expected to be least likely to cope with extreme ecological shocks. The report identified sub-Saharan Africa, South Asia, the Middle East and North Africa as the regions facing the largest number of ecological threats.

A total of 5bn people could suffer from food insecurity by 2050, according to the report, 1.5bn more than today. A lack of resilience in many at-risk countries is expected to lead to "worsening food insecurity and competition over resources, increasing civil unrest and mass displacement, exposing developed countries to increased influxes of refugees", the report warned. Over 1bn people live in 31 countries unlikely to sufficiently withstand the impact of ecological events by 2050, the report stated, contributing to mass population displacement.

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By 2040, it warned, a total of 5.4bn people – over half of the world’s projected population – would reside in the 59 countries experiencing high or extreme water stress. The Ecological Threat Register analyses risk from population growth, water stress, food insecurity, droughts, floods, cyclones, rising temperatures and sea levels. The report found that 141 countries would be exposed to at least one ecological threat by 2050. Full article available here

Floral news

3.20. Hotel decoration trends for 2020/2021Just like restaurant decoration and other businesses, hotels try to get new clients all the time. Hotel decoration has become one of the most important aspects of opening a new hotel and it makes a huge difference. In this post, Verdissimo talks about the main trends in hotel decoration in 2020, looking carefully at hotel buffet decoration, hotel room decoration, in the decoration of reception area and halls.Full article available here

3.21. Floraconcepts linked to FloridayDuring the summer season, Floriday has made it possible to link Floraconcepts ( a site where photo’s and display ideas for plants and flowers are available) and Floriday. Floriday is the sales site developed by Royal FloraHolland and FloraXchange to allow growers to sell and buyers anywhere in the world to buy and sell flowers. Full article available here

Innovation3.22. Research offers plant efficiency hopeResearchers have discovered how a protein in plant roots controls the uptake of minerals and water - a finding they say could improve the tolerance of crops to climate change and reduce the need for chemical fertilisers. This research is important in revealing the molecular mechanics underpinning efforts to improve mineral nutrient and water-use efficiencies and enhanced stress tolerance, making crops more able to withstand flooding, drought, nutrient deficiencies and trace element toxicities.Such improvements in agricultural and horticultural crops could also potentially benefit subsistence farmers with limited access to inorganic fertilisers which include nitrogen, phosphate and potassium and also sulphur and magnesium. This would help to reduce the cost burden such fertilisers impose and reduce the environmental and ecological damage their production and excess use causes. Improved water-use efficiency and stress tolerance will also improve yields for subsistence farmers cultivating marginal lands. Full article available here

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