Trade Minister welcomes Saudi delegation to boost export opportunities, dairy conversion interest surges in Canterbury, and new app tackles parasites on sheep farms.

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Trade Minister welcomes Saudi delegation to boost export opportunities

Trade Minister Todd McClay has welcomed Saudi Arabia's Minister of Environment, Water and Agriculture to New Zealand, kickstarting talks aimed at strengthening export opportunities for Kiwi farmers and businesses. Minister AlFadley is leading a delegation of more than 35 senior Saudi officials and business representatives for the 9th New Zealand-Saudi Arabia Joint Ministerial Commission.

The high-level meeting builds on momentum following last year's successful conclusion of negotiations for the New Zealand-Gulf Cooperation Council Free Trade Agreement.

The Commission will showcase world-class New Zealand agricultural products while promoting investment opportunities in technology and digital innovation sectors.

Both Ministers will participate in business outreach activities specifically targeting agriculture, technology and digital innovation during the visit. 

Saudi Arabia, as the Gulf's largest economy, represents a crucial market for New Zealand exporters, with exports reaching $1.14 billion last year.

 

Otago egg farm back in business after avian flu eradication

Mainland's Otago egg farm is set to begin repopulating after successfully eradicating high pathogenic avian influenza, with biosecurity restrictions now lifted. The H7N6 strain detected in December last year was contained entirely to the Hillgrove property, marking the first-ever case of HPAI in New Zealand.

Biosecurity Minister Andrew Hoggard credits the rapid response from both the farmer and MPI as crucial to preventing the spread beyond the initial outbreak. 

The wider poultry industry played a vital role in containing the outbreak, providing expertise and support throughout the response. This collaborative approach ensured the disease was stamped out quickly, safeguarding the competitive advantage New Zealand farmers enjoy due to our freedom from many pests and diseases.

While this H7N6 strain is less virulent than the devastating H5N1 strain that has decimated poultry flocks overseas, the response served as a valuable test of New Zealand's preparedness plans.

 

Dairy conversion interest surges in Canterbury

Canterbury could be on the cusp of another dairy conversion boom as strong milk prices and changing regulations spark renewed interest in expanding the region's dairy footprint. Environment Canterbury has already granted three new conversion consents and one for intensifying an existing farm since the start of this year.

Industry insiders report that up to 25 conversions may be underway in Canterbury, which currently produces 14% of New Zealand's milk. The renewed interest coincides with record farmgate milk prices likely to exceed $10 per kilogram of milk solids for the first time, alongside forecasts for another strong season starting June 1st.

Fonterra reports conversion and restart numbers across the country have reached double figures, while Synlait Milk is fielding significant inquiries from farmers looking to convert. Banks are reporting increased inquiry levels but say this represents a significant shift from three years ago when conversions weren't being discussed. 

While Canterbury shows the strongest interest, some conversions are also occurring in Southland, Otago, central North Island and Waikato regions.

 

New app tackles parasites on sheep farms

A Waimate veterinarian is creating an innovative app to help sheep farmers battle drench resistance, with testing set to begin later this year. Ryan Luckman's DAGI, Drench and Grazing Integration app simplifies the complex challenge of parasite management on farm.

The technology guides farmers on optimal grazing decisions for young stock while maintaining refugia – populations of worms not exposed to drench treatments. Luckman developed the concept after recognising how difficult it was for farmers to implement effective Wormwise principles.

With over 30 percent of sheep farms now experiencing drench resistance, the app works behind the scenes to alert farmers when paddocks might pose larval risks despite appearing to offer quality feed. This helps break the cycle where parasites reduce feed intake, slow growth, and increase drench dependency.

DAGI has earned finalist status in the Fieldays Innovation Awards' Prototype category and received industry support. Luckman is now seeking sheep farmers to participate in testing later this year.

 

US trade policy sours outlook for NZ wine heavyweight

Oyster Bay producer Delegat is feeling the pinch of international trade tensions with a significant earnings downgrade despite exceptional harvest results. The premium wine exporter has cut profit forecasts to between $47 and $50 million, abandoning earlier projections of $55 to $60 million as American distributors grow increasingly cautious about future commitments.

The newly imposed 10 percent US tariff has created a ripple effect throughout Delegat's global distribution network, particularly affecting the crucial April to June sales quarter. This market disruption has forced the company to revise global case sales downward by 5 percent to approximately 3.2 million units according to their NZX statement released today.

For grape growers supplying Delegat, the situation presents a frustrating contrast. The 2025 vintage has delivered outstanding quality with volumes soaring nearly 40 percent above last year's harvest levels, creating a potential surplus situation if international sales targets aren't met.

Industry analysts suggest this highlights the vulnerability of New Zealand's premium wine sector to overseas trade policies, with American market access becoming increasingly unpredictable.

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