PMAC weekly update 11th to 18th January

1. Government agencies: ICPR Changes, 2021 Primary Industries Good Employer Awards opens for entries, WTO Notifications

2. New Zealand News: International Year Of Fruits & Vegetables 2021, The New Trade Environment Through An Indigenous Lens, Brexit clears way for NZ negotiations, Briefing papers explores COVID’s impact on ag, Cherry harvest devastated by rain but growers grateful to have the staff to help salvage crop, Southland blueberry season delayed but going well, More government help may be necessary for Motueka growers, Straight to the Source: A direct line between growers and chefs, Change in NZ consumers purchasing patterns

3. International news: GAIN reports; A CRISPR picture emerges on European Union GMO directive; New direction for the International New Varieties Network (INN), "This new concept of Fruit Logistica Special Edition is our plan B”, Seven trends to watch in 2021, Redefining locally-grown produce with urban farming, New York mayoral candidate talks healthy eating, urban farming, and food deserts; COVID-19 inspections of imported cold chain products in China, China: Prices of imported cherry drop due to oversupply, Australian cherry growers deny Chinese claims their fruit is inferior, Chinese currency is strengthening, Maersk now freight forwarders and shippers; Sea Freight Prices Skyrocket, Chinese Exporters Feeling the Pressure; Hapag-Lloyd will implement the Asia Express service during the Chilean fruit season; First zero emission airfreight route launched; MSC considers its carbon position; Sustainable alternative for cleaning food surfaces, What FDA’s Foods Program Achieved in 2020, Seed saving movement calls for seeds to be publicly owned; COVIID-19 is changing packaging; French ready for compostable packaging; Smart farming supply chains could decrease food wastage by 50%; Innovative low oxygen box extends cut flower shelf life

Comments As we come towards the end of New Zealand’s traditional summer holiday period this week’s news is again dominated by the International section. There is however one especially interesting article that’s worth reading in full if you are interested in how New Zealand’s approach to trade is being described as we introduction to our year as the host APEC “The New Trade Environment Through An Indigenous Lens “. The article shows how the Trade for All policy is shaping our conversations and it is interesting to see how the Maori economy is being promoted.

In the International section I’d like to point you to three areas. Firstly – increasing consumer interest in Buy local and so vertical farming. One article states that a shipping container set up as a vertical farm in the USA is as productive as 2 acres of open ground production.

PMAC weekly update Page 1

Secondly Freight continues to be high profile with another article about freight problems and the expectation that high prices will continue for some time. At the same time one air freight company and a shipping line are making headway with low carbon alternatives. I suspect these alternative will not be cheap but they will improve the acceptability of imported food to climate change conscious consumers.

The last article worth a read is the Food safety work completed by the FDA last year. This article describes not only the work achieved but also talks about areas that will have an ongoing emphasis within the FDA.

1. Agency news 1.1. ICPR changesThe ICPR for Chile has been updated by removing the import permit requirement for Plantago

lanceolata from section 4.4.1 Seeds, Grains and Nuts for Sowing. See ICPR Chile

1.2. 2021 Primary Industries Good Employer Awards opens for entriesEntries are open for the 2021 Primary Industries Good Employer Awards, says Ministry for Primary Industries' director of investment, skills and performance, Cheyne Gillooly. The awards, run by the Ministry for Primary Industries (MPI) and the Agricultural and Marketing Research and Development Trust (AGMARDT), celebrate primary sector employers who demonstrate exceptional employment practices.

Entries close at 5 pm on 5 February 2021. Entry details and requirements available here https://www.mpi.govt.nz/about-mpi/our-work/scholarships-awards/primary-industries-good-employer-awards/#entering. Full article available here

1.3. WTO Notifications Please find attached the most recent WTO notifications from countries that are considering changes to their plant import requirements for specific products. If you have any concerns about the notifications being presented please contact Plant.exports@mpi.govt.nz so that they can potentially make a submission to the notifying country. Changes notified over the last week include:

Australia Changed requirements for the import of seed Canada, Japan, Korea and USA MRL’s USA registration review of Chlorpyrifos

PMAC weekly update Page 2

The embedded files for the last week (which has links through to the original notifications) is available

here

2. New Zealand News

Commentary 2.1. International Year Of Fruits & Vegetables 2021The 74th Session of the United Nations General Assembly declared 2021 as the International Year of Fruits and Vegetables. The initiative aims at raising awareness on the nutritional and health benefits of fruit and vegetable consumption. The International Year of Fruits and Vegetables is meant to serve as a launchpad for the uptake of effective actions that will strengthen the role of smallholder and family farmers in sustainable farming and production.

United Fresh and Horticulture New Zealand are working together to raise the profile of the International Year of Fruits and Vegetables. Full article available here

2.2. The New Trade Environment Through An Indigenous LensAn article well worth reading. The article contains the text of a speech delivered on Friday 4 December 2020 by Rachel Taulelei, CEO, KONO on behalf of the APEC Business Advisory Council. The speech was delivered to the Auckland Trade and Economic Policy School. The speech includes concepts identified in the Fit for a better world roadmap , highlights the Maori economy and emphasises the need for trade to be inclusive and positively impact all people.

The speech is a good demonstration of how the present Government is approaching trade and helps sets the scene for this years APEC meeting which is being hosted by New Zealand. Full article available here

2.3. Brexit clears way for NZ negotiationsFormer special agricultural trade envoy Mike Petersen says post-Brexit, now is the time for the EU and UK to start making offers that would align with their rhetoric about NZ being a favoured country and wanting to work with us in international trade.

PMAC weekly update Page 3

Exporters fed up with the dismal agricultural market access offers made by the European Union in two-and-a-half years of trade talks with New Zealand say there should be no more excuses now that it has sorted out its future trading relationship with the United Kingdom. The EU and NZ wrapped up the ninth round of negotiations in early December without a revised offer from the Europeans on agricultural market access. The tenth round of negotiations between the EU and NZ is due to begin later this month. Full article available here

2.4. Briefing papers explores COVID’s impact on agThe briefing papers to the incoming Cabinet ministers warn the global recession will weaken consumer demand and soften prices affecting agricultural production and trade volumes unevenly. Agriculture has performed well during the Covid-19 pandemic, but briefing papers to the incoming Cabinet ministers warns the outlook is challenging.

The pandemic has created what the briefing notes call “significant challenges.” These include operation and production constraints due to safe operating practices, supply chain disruptions, falling and changeable demand across markets, especially foodservice, and the inability to access critical foreign workers. The assessment is included in briefings to Primary Industries and Land Information Minister Damien O’Connor, Environment Minister David Parker, Forestry Minister Stuart Nash and Climate Change Minister James Shaw.

The papers warn the global recession will weaken consumer demand and soften prices affecting agricultural production and trade volumes unevenly, “with uncertain timing and magnitude.”“Despite this uncertain and challenging outlook, the agriculture sector’s performance over the past few decades through several shocks and downturns suggests it will play a critical role to NZ’s economic resilience and recovery, as it has done previously,” the brief said. The balance of the article provides details about several of the primary sectors, and talks about the effect a number of policies and Bills will have on primary Industry Full article available here

2.5. Cherry harvest devastated by rain but growers grateful to have the staff to help salvage crop

Central Otago cherry growers have been dealt another blow this season with heavy rain just after New Year causing major damage to fruit about to be harvested. Although the full extent of the damage is yet to be quantified, it is expected that up to 50% of the season’s bumper cherry crop has been lost due to splitting, resulting in the loss of $50 million in export revenue to the country. The impact of the weather event isn’t confined to just this season as damage to trees will potentially affect next season’s crop.

"It is incredibly sad to see growers lose so much of their crop in this way,’ says Summerfruit NZ chief executive Richard Palmer. ‘Growers are working hard to harvest the remainder of the crop, and with good weather ahead there is still substantial work for pickers and packers.’ "We also feel for all the

PMAC weekly update Page 4

people who came to help with the harvest as they responded so generously to the industry’s call for help. Damage to the other summerfruit crops – apricot, nectarine, peach and plum looks to be fairly limited and with the remaining cherry harvest, provides ongoing opportunity for some harvest staff. The viticulture sector is also looking to take on more workers sooner to provide employment for cherry pickers." Full article available here

A second article provides more detail and comment from several orchardists. Full article available here

2.6. Southland blueberry season delayed but going wellBlueberry Country general manager Simon Bardon has stated that the Otautau orchard would usually start its season around new year but the wet ground meant a delay of about two weeks. Despite the growing season being affected by the weather, the big stock losses in his orchard were not die to the weather but due to birds, Mr Bardon said. The company loses on average five tonnes of blueberries a week, which meant about 10% of its production.

Before the season started, Bardon was worried about not finding enough workers however about 100 people went to an open day at the orchard looking for a job, and Mr Bardon managed to hire 85 people for the season. Full article available here

2.7. More government help may be necessary for Motueka growersLast week, New Zealand Apples and Pears chief executive Alan Pollard met orchardists in Nelson to get more feedback on the effect of the Boxing Day hail storm, and to help coordinate support for those struggling through the aftermath. At a meeting in Upper Moutere, Pollard was joined by service and technical support providers from the industry, representatives from the Ministry of Social Development and the Ministry for Primary Industries and the Rural Support Trust.

Pollard said the two key objectives of the meeting were to offer support and advice on how to prepare their orchards for the next season, and to hear first-hand from farmers about their biggest issues.“They are certainly challenged by this extra pressure," Pollard told stuff.co.nz. “On top of the Covid lockdown, on top of a labour shortage and now this hits, it's been a constant level of stress and pressure for 12 months now. At the moment we’re particularly concerned about the mental health of growers, and their families and their staff as well.” Pollard said one of the key concerns for growers was the welfare and wellbeing of their permanent staff, and the ability to keep them employed through the next year. Full article available here

Bits and pieces

PMAC weekly update Page 5

2.8. Straight to the Source: A direct line between growers and chefsStraight to the Source provides a direct online link between Australian and New Zealand producers and food enthusiasts, food producers and chefs. (https://straighttothesource.com.au/) The directory is free to use. Users will be able to peruse a brand's profile, giving them detailed product information, contact details, stockists and key accolades among other things. Full article available here

2.9. Change in NZ consumers purchasing patternsThe unprecedented scale of the COVID-19 pandemic has touched the lives of every New Zealander and the implications of the national lockdown will be felt for years to come. In the nation’s grocery aisles, there has been a significant shift in consumer behaviour. United fresh last week released a trend report and picked the following top trends to watch for in 2021.

The ultimate health kick Over 20 percent of shoppers are actively seeking out immunity-boosting food and beverage options; fresh fruit and vegetables, with their natural ‘health halo’, are top of the list. Food hygiene is also an emerging trend as shoppers express concern about the safety of the items in their trolley. Ironically, the popularity of plastic wrapped produce has increased in the search for hygienically disinfected ‘low touch’ groceries despite the environmental concerns.

The big shop is back For several years now the trend towards shopping more often for smaller amounts has been number one on the list of consumer behaviour changes. Kiwis are now making around 50 percent fewer visits to stores each week despite our lack of community transmission.

Online and ongoing In 2019, less than 10 percent of Kiwis shopped for groceries online numbers have now surged to nearly 30 percent. Online shopping trends have also enabled wholesalers to enter the retail landscape offering ‘farm to door’ delivery services. Ordering a box of apples direct from the orchard enables shoppers to connect directly with the grower.

The brand connection Consumers in 2021 will be increasingly critical of the brands that they support. In the supermarket aisle, home brands are growing rapidly - as much as three times faster than other brands in some categories. Post lockdown, most retailers have moved away from paper-based marketing with new digital technology offerings such as digital mailers tied to store cards. This advancement provides a tailored approach enabling retailers to target individual consumers based on their buying behaviour and saves an extraordinary 60 tonnes of paper each week. For the full trend report, please click here. Full article available here

3. International news

Comment 3.1. GAIN reports-

PMAC weekly update Page 6

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.

At this time of the year many of the reports are updated. I have listed all reports updated since the 18 th December and have only provided links for those reports that I consider exporters will be interested in viewing. To see the full report, click on the link provided after a notification or in not link is supplied use the search tool at https://gain.fas.usda.gov/#/ This week see:

a) Exporter Guide –Brazil, Burma, France, Honduras, Pakistan, Turkey, UK, Ukraine, Vietnam

b) Food and Agricultural Import Regulations and Standards Country Report Czech Republic, Israel, Kenya Taiwan, UK

c) Food and Agricultural Import Regulations and Standards Export Certificate Report: - Czech, Israel, Kenya, Spain, Taiwan, UK

d) China Exporter Guide China Exporter Guide_Beijing ATO_China - Peoples Republic of_01-03-2021

e) EU Green Deal - January 2021 Update provides details on the status of the EU Green Deal objectives and strategies including the Farm to Fork Strategy (F2F), Biodiversity Strategy, the Climate Target Plan, the EU Methane Strategy, and the Circular Economy Action Plan. EU Green Deal - January 2021 Update _Brussels USEU_European Union_01-10-2021

f) EU Commission Publishes Roadmap on the Upcoming Revision of Food Labeling Requirements Commission Publishes Roadmap on the Upcoming Revision of Food Labeling Requirements_Brussels USEU_European Union_01-05-2021

g) India COVID-19 in India - Weekly Port Situation Update COVID-19 in India - Weekly Port Situation Update_Mumbai_India_01-08-2021

h) Indonesia Exporter Guide Exporter Guide_Jakarta_Indonesia_12-31-2020

Regulatory3.2. A CRISPR picture emerges on European Union GMO directive

PMAC weekly update Page 7

A European Court ruling widely interpreted to mean that all gene-edited organisms are GMOs (Genetically Modified Organisms) may not be as prescriptive as many first assumed. In the ruling of July 2018, the Court of Justice of the European Union (CJEU) confirmed that organisms obtained by newer methods of directed mutagenesis such as genome editing are not excluded from the scope of the EU GMO directive. A key factor in interpreting the ruling, the authors argue, has been determining whether organisms fall under the GMO definition in the first place, because if they do not, then the exemption – and therefore the ruling – is not relevant to them. The EU definition of a GMO is where: ‘the genetic material of the resulting organisms has been altered in a way that does not occur naturally.’

One of the authors Dr Penny Hundleby, from the John Innes Centre, said: ““The European scientific community needs the best possible tools to tackle the challenges ahead of climate change, food security and sustainable food production. For this reason, it is imperative that the regulatory status of organisms developed through novel genomic techniques is clarified as a matter of urgency.”Read the complete article on www.european-seed.com. Full article available here

Business/ Industry3.3. New direction for the International New Varieties Network (INN)The International New Varieties Network (INN) has undertaken a strategic review to ensure that the business continues to support the global industry into the future. This has resulted in the new mission for INN ‘To connect the Global fruit industry to New Varieties’ and a clear driver to be the first-choice partner for breeders, IP managers and marketing companies in the commercialisation and development of new varieties of Apple, Pears and Cherries or Tree Fruit. This means moving INN from a network of businesses to a centralised structure that will support globally coordinated distribution, evaluation and development of new varieties and brands. “Our job has always been to support the global fruit industry to find better varieties for producers, marketers and consumers. We are now building on our existing network capabilities to support new variety development with a global view and to manage and coordinate new developments as one group” said Bruno Simpson, Chair of INN.

To support INN’s new mission Garry Langford has taken on the role of General Manager. Garry Langford has been involved in the Fruit industry in Australia and internationally for the past 35 years. He has extensive experience in the creation, selection, management and commercialisation of new varieties in Australia and around the world. He was a founding director of Prevar (the company that developed and licenced the varieties behind the apple brands Dazzle®, Smitten®, Rockit® and more) and supported the continued development of the Pink Lady® brand globally, through his role as the head of IP at Apple and Pear Australia (APAL) (the owner of the Pink Lady® trade marks).

INN has also adopted a new brand identity and website to support our new focus. INN’s website provides more information about the service it offers and the history and membership of the group. www.inn-varietiesnetwork.com Full article available here

PMAC weekly update Page 8

3.4. "This new concept of Fruit Logistica Special Edition is our plan B”Normally in January the whole of the fresh produce sector would be preparing to head to Berlin for Fruit Logistica. This year everything is different and the Fruit Logistica Special Edition will take place in Berlin on 18, 19,20 May. At this stage a purely digital event is not planned but instead an on-site event with digital elements. We all know that trust between buyer and seller plays an essential role in the fresh produce business and for that face-to-face meetings are essential. At this stage organisers are not organising an alternative approach i.e., there is no plan B.

500 companies from more than 50 countries have already registered. Almost half of the registered companies are from the fresh produce sector, and more than 20 percent are from the machinery and technology sector. Full article available here

3.5. Seven trends to watch in 2021Another article on trends to watch. Like many of them other articles it lists and discusses in some detail: Online shopping – they predict more than 20 per cent of total grocery sales will be online by 2025. Produce packaging the demand for packaging (to ensure safety) and sustainability is up Local comes of age- in many areas this is being achieved by deploying non-traditional vertical

farms and greenhouses in many local markets and reducing the need to ship selected products long distances.

Family dining is in the house A recent study from the National Restaurant Association shares that nearly 17 per cent of US restaurants have closed either permanently or long-term amid the coronavirus pandemic. While restaurants have been innovative and have offered expanded takeout and outdoor seating options, restaurant access remains restricted in most US states. Also, the continued shift to work from home has increased eating occasions at home.

Focus on food as medicine Supply chain partnerships With the explosion of online shopping from home, retailers rapidly

diversified how consumers could order and receive food to protect their market share and diversify risk. In this increasingly omnichannel world, fresh produce companies should consider new options to help protect their profitability. Pursuing strategic partnerships to help lock-in contracts for distribution through omnichannel alternatives can help remove variability from supply and demand planning for fresh produce companies.

The search for fresh and new We recommend that fresh produce companies focus on the following:- Innovative new ways to present and communicate your products using packaging and new channels to reach new buyers.- New value-added products, including flavours, varieties, and ready-to-cook options- Creating recipes for your product offering with other uniquely flavoured ingredients to offer fresh and unexpected new ways to serve and enjoy your products- Use digital media and packaging to communicate these new flavourful recipes and methods

Full article available here

PMAC weekly update Page 9

And another article looks at 5 trends (most of which overlap with the above)1. System upgrade: digitally enhancing operations2. Escalating ecommerce: driving online and profitability3. Making a meal of it: creating inspiration and excitement4. Holistic health: supporting health and wellness5. Recuperative retail: focusing on sustainability- With climate change remaining a top priority, retailers globally will push ahead with initiatives to support goals in this area Full article available here

Indoor production 3.6. Redefining locally-grown produce with urban farmingUrban farms check a variety of boxes for today’s consumers: locally grown, sustainable, low carbon footprint — not to mention fresh, healthy and tasty. Minneapolis-based North Market installed a Freight Farms hydroponic vertical container farm in the summer of 2020. “Now we have a repurposed shipping container, growing the equivalent of two acres of outdoor growing space, using only five gallons of water a day, entirely powered by solar panels, selling into a grocery store located 50 feet away,” said Ethan Neal, food systems manager for Pillsbury United Communities, the non-profit organization that funded the farm. Full article available here

3.7. New York mayoral candidate talks healthy eating, urban farming, and food desertsBrooklyn Borough President Eric Adams, one of the leading candidates in the race right now, believes food is a key component in any future recovery. Passionate about urban farming, he wants to set up a citywide network of vertical and rooftop farms that feed hospitals, schools, prisons, and beyond while educating schoolchildren and getting trucks off the road. Full article available here

China3.8. COVID-19 inspections of imported cold chain products in China China is tightening restrictions on imported cold chain products amid the ongoing coronavirus epidemic. Some companies have adopted digital methods to strengthen product tracing. Check out this newly launched system in Guangzhou City, south China's Guangdong Province. Full article available here

3.9. China: Prices of imported cherry drop due to oversupplyImported cherry prices have dropped 20 percent resulting from an oversupply as exporters hope for a rebound in Chinese consumption amid the pandemic. A main reason for the plunge is the large output in source countries, traders said. Chile, a major exporter of cherries, saw a bumper harvest in the 2020-

PMAC weekly update Page 10

2021 season with the expected export volume increasing by 30 percent, and about 500,000 tons of cherries will arrive in the Chinese market. Full article available here

In a recent report by China’s CCTV Finance and Economics television channel, merchants from the fruit section of the Lingjiatang Agricultural Trade Wholesale Market in Jiangsu province shared that in the past, cherries have sold for at least 500 yuan a box at this time of year — this year, however, they are selling for a mere 200 yuan per box. Shortly after the CCTV news report was aired, cherries hit number one in the “hot search” rankings on major Chinese social media platform Weibo, indicating that netizens are currently paying plenty of attention to cherries. As for the claim that cherry prices have been “slashed in half,” Produce Report interviewed a number of industry stakeholders to get their opinions; fruit sellers expressed that the market is currently heating up and prices are rebounding.

According to industry insiders, as a result of fierce competition among large e-commerce merchants, this year many sales platforms are using J-size cherries as a “hook” to entice customers, taking up a sizeable chunk of the market in lower-tier cities and rural areas. These platforms are splitting large five-kilogram packages of cherries into small portions weighing 100–250 grams and using them in “subsidized” sales promotions to attract new customers and boost transaction volumes, which has driven down retail prices

This year, Liu added, more and more sales channels are devising new methods to bring better value for money to consumers buying Chilean cherries. At the beginning of January, consumers could purchase five-kilogram packs of Chilean cherries from a number of retailers such as Hema Fresh and Carrefour for less than 300 yuan. This has brought many consumers “cherry freedom” — in other words, it has passed along the benefit to more Chinese consumers. This is the result of a joint effort across the entire value chain, including cherry growers, exporters, importers, distributors and retailers. Liu also mentioned that Southern Hemisphere cherry crops have now reached peak ripeness, so come what may, he is confident that the industry can deal with whatever comes its way through collaboration at every stage of the value chain, and that this year’s cherry season will be a successful one.This article also explains that there is little chance of COVID 19 being spread by cherries because they are a plant based product with a long shipping time and they are tested by officials on arrival. Full article available here

3.10. Australian cherry growers deny Chinese claims their fruit is inferiorAustralian cherry growers have countered Chinese claims that their fruit is inferior to that from other countries. This came after a report in Chinese state-owned media that the taste and quality of Australian cherries had dropped, prompting buyers to turn to other countries’ products. Full article available here

3.11. Chinese currency is strengthening

PMAC weekly update Page 11

The Chinese economy is the world's first economy to recover from the pandemic, and it seems its currency is coming along for the ride. The yuan has shot up to its strongest level in 2.5 years against the US dollar in 18 months. And at 6.46 CNY per dollar Monday, it looks ready to jump even more. In mid-2014, the currency was hovering pretty close to breaching 6 CNY. This might not seem like a big deal for any other currency, but for China, which is notorious for keeping a tight leash on its currency, it is unusual. A stronger yuan has direct implications for companies that have factories in China. It could make those goods costlier in the rest of the world, although the effect is somewhat muted up until now.Investors world-wide are getting attracted to China. At a time when interest rates around the world are approaching zero, China's benchmark rates (at 3.85 percent) look lucrative. Higher returns have encouraged investors to buy yuan assets. Full article available here

Freight 3.12. Maersk now freight forwarders and shippers After Maersk announced in September it would dissolve the Damco freight forwarder brand by the end of 2020, it has disappeared from the field. Maersk absorbed Damco's air and ocean less-than-container-load shipping to combine it with Maersk’s logistics and services products so that the company now has provides a seamless service. Full article available here

3.13. Sea Freight Prices Skyrocket, Chinese Exporters Feeling the PressureAs the new year gets underway, sky-high global shipping prices are continuing to rise, impacting cross-border fruit and vegetable supply chains. At present, the critical global shortage of refrigerated containers is ongoing, leading to issues with overbooking of cargo, containers being rejected and ships being redirected to alternative ports, a situation that remains unresolved. The article provides a lot of detail about rates for individual routes For example one Chinese fruit and vegetable exporter, in the past it generally cost approximately $2,000 to ship one container from a Chinese port to a European port, a figure that has now risen to around $9,000 — almost five times the normal rate. Aside from the sudden increase in cost, the biggest challenge facing exporters is the continuing container shortage, making refrigerated containers hard to procure. Despite a rapid increase in overseas orders, exporters are facing substantial pressure due to the current sea freight situation. It is unlikely there fore that proves will decrease or that the normal decrease in shipping will drop as the usually do during Chinese New Year. Full article available here

3.14. Hapag-Lloyd will implement the Asia Express service during the Chilean fruit seasonHapag-Lloyd announced that it will implement its Asia Express service (AN1 Service) in the first quarter of 2021 to reduce the transit time from Valparaiso to Hong Kong during the Chilean fruit season.The Service will run almost weekly starting in week 3 with the Corcovado ship departing from Valparaiso on January 20, 2021, and it will run until week 13. The seasonal Express service quickly

PMAC weekly update Page 12

connects Valparaiso and Hong Kong, with a transit time of 22 days. It also has a reliable connection to Shanghai via Hong Kong in 27 days and an extensive network of feeders that ensures flexible and express delivery of cargo to other destinations in Asia via Hong Kong. Full article available here

3.15. First zero emission airfreight route launchedKuehne+Nagel and Air France KLM Cargo have launched the first carbon neutral airfreight lane between North America and Europe. Flights will be fully fuelled by sustainable aviation fuel (SAF). With the chemical and physical characteristics almost identical to those of conventional jet fuel, SAF is the most effective measure the industry has to significantly reduce its carbon footprint. To ensure the lane is fully carbon neutral, all CO2 emissions generated during the production, processing and transportation of SAF will be offset by Kuehne+Nagel supporting carbon reduction projects that carry the highest quality certification currently available, Verified Carbon Standard and/or Gold Standard.Full article available here

3.16. MSC considers its carbon positionThe Mediterranean Shipping Company (MSC) has announced it has joined the Hydrogen Council to help foster cross-sector collaboration that will accelerate R&D related to clean hydrogen-derived fuels and solutions. “MSC is actively engaging with a wide range of stakeholders to accelerate the development of clean hydrogen fuels for shipping," said Bud Darr, executive vice-president, maritime policy and government affairs, MSC Group.

"The future of shipping and decarbonisation will rely on strong partnerships from both the perspective of technology collaboration and procurement," he explained. "There must be a massive injection of energy and capital into R&D efforts to bring alternative fuels and alternative propulsion technologies to the marketplace to decarbonise all industries in the longer term. The Hydrogen Council is a global CEO-led initiative that brings together leading companies with a united vision and long-term ambition for hydrogen to foster the clean energy transition. Full article available here

Food safetySustainable alternative for cleaning food surfacesMoleaer, a nanobubble technology company, in partnership with researchers from Virginia Tech, have evaluated and concluded that oxygen-filled nanobubbles are successful in disrupting microbial biofilms, including Escherichia. coli, Listeria innocua, and Vibro parahaemolyticus. The study, published in Food and Bioprocess Technology, observed nanobubbles reducing and effectively eliminating microbes on plastic and stainless steel surfaces typically used for food handling within five minutes of exposure.“Following recent romaine lettuce recalls, this latest research is promising for our food industry. From cleaning food prep surfaces to washing leafy greens, fruits and vegetables, our technology has the

PMAC weekly update Page 13

potential to provide a powerful sustainable and chemical-free enhancement to traditional cleaning methods,” said Nick Dyner, CEO, Moleaer.

Beyond eliminating pathogens such as E. coli and Listeria, nanobubbles have been providing farmers and indoor growers at more than 150 facilities and farms worldwide with a chemical-free irrigation solution. Leafy greens and vegetables grown with nanobubbles have increased plant and root health, shortened growing times and increased yields. Full article available here

3.17. What FDA’s Foods Program Achieved in 2020 Frank Yiannas shares some of the FDA’s 2020 accomplishments which includes:

The Food Program’s COVID-19 Response-, the FDA played a critical role in reassuring consumers that there is no evidence that the virus that causes COVID-19 is transmitted by food or food packaging. They also assisted other departments to develop and share resources to help food workers stay safe.

T he New Era of Smarter Food Safety blueprint was released laying out how the FDA will build on the Food Safety Modernization Act (FSMA) over the next decade to continue modernizing our approaches and creating a more digital, traceable, and safer food system. The pandemic has shown an accelerated need for enhancing traceability, exploring the use of remote inspections, addressing safety vulnerabilities for foods ordered online and supporting food safety culture.

2020 Leafy Greens STEC Action Plan Between 2009 and 2018, the FDA and CDC identified 40 outbreaks of Shiga-toxin producing E. coli (STEC) with a confirmed or suspected link to fresh leafy greens. Therefore, in March of 2020, we released the 2020 Leafy Greens STEC Action Plan, outlining a holistic body of work in three areas: prevention; response; and research gaps. The action plan has resulted in more collaborative work being done by the FDA and stakeholders to advance the safety of leafy greens Employing Artificial Intelligence, We are conducting a pilot program to learn the added benefits of using artificial intelligence (AI), to rapidly analyse data, in the screening of foods imported into the U.S. In August, the agency announced the results of a proof-of-concept to validate the approach we’re taking. The results show machine learning can almost triple the likelihood that we will identify a shipment containing potentially contaminated products. Data is potentially one of our most powerful tools to fight foodborne illnesses, leveraging tools such as AI to strengthen our predictive capabilities could be a game-changer for food safety.

Proposed Food Traceability Rule In September the FDA issued its Proposed Rule for Food Traceability.

PMAC weekly update Page 14

Agricultural Water In 2020, the FDA announced a new protocol for the development and registration of antimicrobial treatments for preharvest agricultural water, such as the water used in farm irrigation systems.

Outbreak Investigations We made several enhancements to our foodborne outbreak investigation processes to try and identify the root cause of outbreaks. As part of our commitment to transparency, we now publish and update weekly a new outbreaks investigation table. This lists information on all foodborne outbreaks as soon as the FDA begins an investigation, before there’s a public health advisory or food recall. Full article available here

3.18. Seed saving movement calls for seeds to be publicly ownedSeeds need to be brought back into public ownership, rather than belonging to a small group of agrochemical companies, say campaigners, after a year in which seed-swapping and saving has reached new heights of popularity. From March onwards, when the pandemic hit the UK, seed producers and seed banks across the country were overwhelmed with demand. Organisations such as the Seed Cooperative, Vital Seeds and Irish Seed Savers saw a sharp surge in orders, 600% in some cases.

This has in turn drawn attention to the seed saving movement, which has been quietly growing in the UK for some time. Made up of growers of all types – from farms, small allotments, back gardens and even school playgrounds – these individuals and groups are linked through formal and informal networks. Full article available here

3.19. COVID-19 is changing packaging Shifting consumer shopping habits during the COVID-19 pandemic drove changes all up and down the supply chain — including in the way goods are packaged. The pandemic-accelerated shift to e-commerce has also driven changes in packaging size, consumer perception of packaging and waste, and design for more return-friendly packaging. The shift may finally get rid of the need to encase every item in impossible-to-open plastic.

The pandemic pushed consumers toward e-commerce, which drove retailers to rethink how they got product into customers' hands. For a lot of retailers, that meant adding ship from store, essentially turning brick-and-mortar stores into fulfilment centres, albeit ones that sent smaller packages.That meant a higher demand for smaller packaging and also smaller packaging equipment to fit into backrooms of stores not necessarily designed as fulfilment centres.

"Corrugated has long been the tried and true shipping method for years, but we’re seeing a lot of customers moving more and more toward mailers (compostable plastic mail type bags) Mailers also

PMAC weekly update Page 15

have a smaller environmental footprint, a goal that hasn’t been lost with the pandemic. "The packaging is changing now that it’s ending up in people’s houses and they’re dealing with more of that waste and that packaging," he said. "Eventually, people will become much more aware of this and the importance of recycled materials."

McKinsey & Company's Sustainability in Packaging: Inside the Minds of Global Consumers report, which surveyed 10,000 consumers around the world, found that the overwhelming majority of respondents say they're willing to pay more for sustainable packaging. The highest percentage was in China at 86% willing to pay more for sustainable packaging in the food service industry; the U.S. clocked in at 68%. U.S. consumer perception on package sustainability (1 is most sustainable)Rank Type of packaging

1 Paper-based cartons2 Glass bottles and jars3 Plastic films made from renewable, compostable materials4 Flexible paper5 Fully recyclable plastic bottles/containers6 Fully recyclable plastic films7 Metal containers8 Plastic bottles/containers made from recycled plastics9 Aluminium foil wraps

10 Packaging combining plastic, paper and aluminium foil

Touchless packaging was in demand from customers too. Specifically, consumers wanted to know where the item was produced and packaged, and also the extent to which the product was processed in a touch-free environment. .Full article available here

3.20. French ready for compostable packaging A recent survey of 1,000 French shoppers showed 89 per cent believed more food should be packed in compostable packaging instead of plastic. In addition, 65 per cent stated a willingness to pay more for products wrapped in compostable packaging. 76 per cent said they were concerned about the increase in plastic waste during the Covid-19 lockdowns, and the environmental impact. In addition, 88 per cent said they were either already home-composting their compostable packaging or were willing to do so. Full article available here

3.21. Smart farming supply chains could decrease food wastage by 50%In a recent study by the FAO, it was discovered that approximately 1.6 billion tons of food per year are either lost or wasted globally, resulting in annual losses of US$1.2 trillion. However, food wastage

PMAC weekly update Page 16

worldwide could be reduced by 20% by the year 2025 (and by 50% in 2030) if food and produce supply chains can be reoutfitted with IoT - Internet of Things- sensor labels. IoT labels can even measure the properties of fruit and vegetables such as the colour, size and shape, while they are still growing. That data can then be used to control growing conditions like water supply, helping accurately ascertain the best harvest date, and consequently determine the amount of stock that should be reduced from the outset, before it even enters the supply chain. Full article available here

Floral news

3.22. Innovative low oxygen box extends cut flower shelf lifeThe Low oxygen box does not only enable flower growers to extend their season, it also makes them more flexible in deciding when to sell the flowers. In France the box has been used for Paeony’s. tulips and Rooses

Flowers, vegetables and fruits are all living products and are 'breathing'. The target of our box is slowing down the breathing and at the same time the aging process. To make it happen, we use selective membranes which are decreasing the oxygen level that is inside the box and letting the carbon-dioxide out. The optimal oxygen rate needs to be 5% or lower. As a result, the shelf life of the product increases. In the case of peonies, it can be 10 to 12 week.

The flowers should first be in perfect sanitary condition. If one product has fungus, it is going to develop inside. Another important factor is the temperature. "It needs to be the right temperature for the product and it needs to be stable all the time. For peonies, for example, the perfect temperature is 2 Degrees Celsius. Full article available here

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

PMAC weekly update Page 17