Government tackles rural connectivity barriers with regulatory changes, Wools of NZ turns profit as demand surges, and plant tech firm wins top science honour for boosting Kiwi agriculture.

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Government tackles rural connectivity barriers with regulatory changes

The Government is rolling out regulatory changes to improve rural connectivity and drive economic growth across the telecommunications sector. Communications Minister Paul Goldsmith says the initiatives will help stimulate competition while removing barriers that have limited service delivery in hard-to-reach areas.

A key focus of the changes targets smaller local fibre companies, removing regulatory barriers that have previously restricted their ability to deliver diverse wholesale telecommunication services. The adjustment will allow these providers to offer different connectivity options specifically tailored for rural communities.

The regulatory package includes several additional measures aimed at improving service reliability. These include permanently reinstating rights for fibre providers to access shared property for installations, requiring retail telecommunications providers with revenue exceeding $10 million to join industry dispute resolution schemes, and expanding regulation to capture offshore providers where relevant to their service offerings.

The changes will also amend company constitutions for Enable Networks, Tuatahi First Fibre and Northpower Fibre, expanding their permitted activities to match those already available to Chorus. This alignment aims to create a more level playing field across the industry.

 

Wools of NZ turns profit as demand surges

Wools of New Zealand has reversed years of financial struggles, posting a $165,000 profit for the August 2023 financial year. This marks a dramatic shift from their $1.4 million loss recorded just a year earlier, despite only modest revenue growth to $27.6 million.

The turnaround comes as New Zealand's wool industry experiences a fundamental market shift. For the first time in recent memory, demand now exceeds available supply, creating favorable auction conditions for farmers. Chair Richard Young told members at Tuesday's annual meeting that their dual-focus strategy is yielding tangible results – efficiently connecting farmers to international markets while simultaneously building demand through wool carpet and commercial tile products.

Farm gate prices have seen substantial improvement, with strong wool now fetching $3.50 per kilogram – nearly doubling since 2021. Select growers are securing even better returns through the company's wool carpet contracts at $5 clean per kilogram. The recently reopened Napier wool scour has eliminated a significant supply chain bottleneck, further accelerating movement through the store network.

CEO John McWhirter highlighted the achievement's significance against a backdrop of declining national sheep numbers. The company anticipates continued positive momentum heading into next month's first international auction of New Zealand wool via the Natural Fibre Exchange. Their wool carpet initiative has stabilized pricing while generating substantial new demand, with wool flooring sales jumping 25 percent over three years.

 

 

Wool auction sees prices slip amid international trade concerns

Meanwhile yesterday's South Island wool auction saw prices ease slightly across most categories as global trade uncertainties begin to influence buyer confidence. The sale achieved a 96% clearance rate with the South Island Strong Wool Indicator dropping 5 cents against a strengthening Kiwi dollar.

Crossbred fleece prices showed mixed results with good style wools dropping 1% to $3.80 per kilogram clean, while average and poor style categories showed varying performance. Average style crossbred fleece declined 1% to $3.68 while poor style surprisingly lifted 4% to $3.60, suggesting continued selective buying from processors.

Second shear wools experienced more significant pressure with good style 50-75mm length dropping 4% to $3.65, while longer 50-100mm good style wools held steady at $3.90. Average style second shears followed a similar pattern with shorter lengths weakening while crossbred oddments maintained their price at $3.00.

PGG Wrightson South Island Auction Manager Dave Burridge notes the market correction reflects broader hesitancy around potential trade tariff impacts on future negotiations. Despite overall softening, he emphasizes continued active demand for better coloured wools with low vegetable matter, though these remain in extremely limited supply.

 

Plant tech firm wins top science honour for boosting Kiwi agriculture

Grasslanz Technology has been awarded the supreme honour at the 2025 Science New Zealand Awards, recognising over two decades of agricultural innovation. The AgResearch subsidiary received the top accolade for its transformative contributions to New Zealand's livestock industries through revolutionary pasture technologies.

The company's most significant achievement has been commercialising the AR37 Epichloë endophyte developed by AgResearch scientists. This pest-resistant technology has delivered an estimated $3.6 billion to the New Zealand economy during its 20-year patent lifetime, demonstrating substantial economic impact from scientific innovation.

Grasslanz Technology chief executive Megan Skiffington attributes the award to collaborative efforts across the organisation's history. She acknowledges the critical role of both the scientific teams behind the discoveries and industry partners who helped transform research into practical solutions for farmers and growers.

The judging panel specifically highlighted Grasslanz for its economic contributions through science directly addressing primary sector challenges in both economically and environmentally sustainable ways. The recognition comes as Crown Research Institutes prepare for significant structural changes, with the government announcing earlier this year that the seven existing CRIs will merge into new Public Research Organisations.

Skiffington views the upcoming restructure as an opportunity for Grasslanz to expand its impact, particularly through technologies like genetic modification and gene editing in pasture development. She emphasises the company's proven business model will bring additional value to the new bioeconomy-focused organisation that will include AgResearch, helping more scientists deliver practical solutions to the farming sector.

 

Scientist's meat flavour innovation wins industry competition

AgResearch senior scientist Renyu Zhang has won the Meat Industry Association's inaugural Dragon's Den competition with an innovative process to transform low-value mechanically deboned meat into high-value flavour enhancers. The groundbreaking concept beat 41 other entries to secure up to $10,000 for business case development.

Zhang's winning proposal, Unamification of mechanically deboned meat, creates meat flakes with intense savoury flavour that remain stable at room temperature. The product offers dual potential as both a protein enhancer and snack food, transforming what is currently considered a lower-value meat industry byproduct.

MIA Chief Executive Sirma Karapeeva says selecting a winner proved challenging due to the exceptional quality of submissions. The competition specifically targeted bold, innovative concepts aligned with government ambitions to double export value, acknowledging that many transformative ideas lack the resources needed for development.

Zhang sees significant opportunities to convert low-value meat streams into uniquely Kiwi products that can strengthen global market presence while developing distinctive national flavor profiles.

The final competition took place at the joint AgResearch-MIA Meat Innovation Workshop in Palmerston North, where five finalists each delivered five-minute pitches followed by questions from judges and audience members. Zhang now moves forward with industry partners to develop the concept into a viable commercial product.

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