PMAC weekly update 7th to 14th January

1. Government agencies: ICPR changes

2. New Zealand News: Central Otago fruit growers back call for help; Slowing Chinese growth likely to weigh on prices; Genetically modified NZ apples; Northland export growth in September 2018; Extreme weather causes Auckland supermarket to run out of vegetables; Primary industry figures celebrate as Tasmania declared fruit fly free.

3. International news: Beijing: US-China officials begin trade war talks; US: Government shutdown and the upcoming Valentine’s high season; Japan and Australia trying out year-round fruit production; Canada’s new Safe Food law just one week away; New German law implements EU no-variety-denominations rule in trademarks; Chile: Fruit exports increased by 10.8% in 2018; High prices but no certificates for some imported fruit; Chengdu will have the first intelligent and automated railway port in China; Major New Soil Pollution Legislation Comes into Effect in China; Buyer Programme and Aggressive New Pricing for China Fruit Logistica; Imported fruit gaining ground quickly in western China; Pocket-size food scanner to battle food waste; “The French agricultural model is the most sustainable in the world”; Are pesticides necessary to feed the world?; Consumers expect flowers to last 8+ days"; Tomato health benefits; Blueberries to lower risk of tooth decay; Daily orange juice consumption, key to preventing loss of subjective cognitive functions; Diabetes management: Broccoli may help regulate blood sugar levels

Editors comments A very quiet week for New Zealand and Government agency news .The only article I find interesting is one on a red fleshed apple that has been developed by Plant and Food using genetic manipulation which is regarded by NZ authorities as genetically modified These apples had to be sent to the USA before they can be tasted. I understand the precaution but why can’t intelligent New Zealanders be allowed to choose whether they are prepared to taste a GE apple as part of an experiment ! I presume these New Zealand bred apples will never be grown or tasted here.

In the international section I was interested in the formal agreement between Japan and New Zealand to coordinate fruit production and supply fruit year round to markets. A good initiative. The other area of note is the batch of articles from China which show how China is moving to become a first world country. Two deal with the opening up of China - Chengdu ( an inland city of 14 million) has built a state of the art automated railway port demonstrating how fast the transport infrastructure in China is developing and the second mentions the increasing market for imported fruit in western China (an area previously difficult to get to. Then there is a detailed article about the new soil pollution legislation which shows how determined Chinese officials

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are to clean up the country and another about Government investigations to prove ( or otherwise) the origin of “imported” fruit for sale in Nanjing.

1. Agency news

1.1. ICPR changes

The ICPR for

Japan has been updated in section 2.2.1 to clarify when an import permit is required. 

Korea has been updated with the following changes:

Prohibitions list in section 2.1 updated.

Quarantine pest list in appendix 1 updated.

Reference to Cherries to Korea Official Assurance Programme added in section 4.1.1.

If you need any further clarification about these ICPR please contact your Independent Verification Agency or see the ICPR at Importing Countries Phytosanitary Requirements (ICPRs)

2. New Zealand News

2.1. Central Otago fruit growers back call for helpCentral Otago fruit growers are supporting industry calls for the government to help with labour shortages. New Zealand Apples and Pears has called on the Government to allow overseas visitors to pick fruit without a work visa, when required. The group has suggested this could occur if a seasonal labour shortage was declared. Full article available here

Bits and pieces

2.2. Slowing Chinese growth likely to weigh on prices Slowing Chinese growth is likely to put pressure on New Zealand commodity prices this year, ABS senior rural economist Nathan Penny says. This year's more modest outlook followed relatively positive prices throughout last year. The average level of prices last year was comfortably above the 10-year average in both USD and NZD terms.

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In ASB's latest Commodities Weekly report, Penny said economic growth in China was slowing and that was expected to lead to more modest demand for New Zealand commodities. China accounted for about one-fifth of New Zealand's overall goods exports and larger amounts for the log, dairy and sheep meat sectors. The global economy is also slowing, which was likely to lead to a broader slowing in demand for New Zealand export commodities.

However, there were positive offsets in play and the bank maintained a "glass half full" view for overall New Zealand commodity prices this year, just ''not as rosy'' as what was seen over 2018, Penny said. The New Zealand dollar was at a supportive level and likely to mostly stay that way over the year. As a result, commodity prices in NZD terms, if not USD terms, were still likely to remain above long-term averages.

And while overall Chinese economic growth was slowing, the household sector was expected to hold up better than the industrial and export sectors. Full article available here

2.3. Genetically modified NZ applesRed-fleshed apples developed by Plant and Food Research's scientist Professor Andrew Allan and his team are so contentious they're not allowed to eat them in New Zealand. They had to take them to the US. The cores were removed from the apples, so no seeds were present. They were triple-bagged and sealed. Then, phytosanitary certificates were gained to get approval to move the apples from their glasshouse in Auckland's Mount Albert to the airport, and then on to the United States where a taste-testing panel of 50 people waited.

Plant and Food Research's Mount Albert glasshouse is a contained facility, with regulatory and logistical hurdles, because Allan's apples are genetically modified. After six years of working on the apple he was keen to understand whether the apple was a winner or a fizzer. Eating is banned within the glasshouse – even sipping a cup of coffee is a no-no. So taking a bite of the apples within the greenhouse was out of the question. Two years spent trying to gain approval to taste-test them outside the glasshouse were unsuccessful. The only solution was to take the apples to a country where eating fresh genetically modified foods was permissible.

The apples tasted like winners, according to Allan. The blind-folded taste-testers identified them as Royal Gala apples and rated them favourably on flavour. Full article available here

2.4. Northland export growth in September 2018Northland avocado growers supplied 1.1 million trays of fruit for export in 2017/18 and while that was 27 percent down on the previous year, it was the largest regional

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contribution in New Zealand. Northland's share of total exports rose to 50 percent due to a 65 percent decrease in production in the Bay of Plenty. Full article available here

2.5. Extreme weather causes Auckland supermarket to run out of vegetables

An Auckland supermarket ran low on vegetables last week and it seems extreme weather across the country had something to do with it. The supermarket has been facing issues with supplies of fruit and vegetables over the past few weeks due to heavy rain in December: And now that the weather has turned warmer, the demand for salad and meat has increased as barbecue season kicks into gear, putting pressure on supermarkets. "Full article available here

Biosecurity

2.6. Primary industry figures celebrate as Tasmania declared fruit fly freeTwo weeks ago, growers, biosecurity scientists and politicians celebrated the return of Tasmania’s coveted ‘fruit fly free’ epithet. Full article available here

3. International news

Government and Regulatory

3.1. Beijing: US-China officials begin trade war talksLast week American and Chinese officials began talks in Beijing, aimed at resolving the economically damaging trade dispute. In 2018, both countries imposed billions of dollars of tariffs on one another's goods. The two-day talks marked the first formal meeting since the pair agreed to refrain from any further tariffs for 90 days.

Officials from China and the US were expected to cover a range of difficult issues. The White House said in December the two sides would negotiate "structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft." The US says China's "unfair" trade practices have contributed to a lofty trade deficit and accuses China of intellectual property theft. As reported by bbc.com, the stakes are high - failure to achieve a deal could see both countries resume taxing one another's goods. Full article available here

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3.2. US: Government shutdown and the upcoming Valentine’s high seasonFollowing President Trump’s televised address on border security last Tuesday night, the partial shutdown of the federal government continued, moving the standoff in Washington into its third week.

Still, even while the shutdown continues, there are signs it could end sooner than some experts are predicting. “What we are hearing is that there are officials in the White House and in both the Republican and Democratic leadership who are finding paths for compromise,” said Shawn McBurney, the Society of American Florists (SAP) ’ senior director of government relations. “The challenge will be convincing the President that these compromises are a win.” But, with a Chinese delegation expected to visit the U.S. soon to finalize trade deal details, McBurney said the administration could be increasingly motivated to end the shutdown. “This administration has made significant progress with trade negotiations with China,” McBurney noted. “They don’t want talk of the shutdown to cloud out that news.”

A number of government agencies floral industry members depend on for services and business processes are affected in some way by the shutdown, including the Departments of Agriculture, Commerce, Health and Human Services, Homeland Security, Interior, Justice, State, and Transportation, along the Environmental Protection Agency and Small Business Administration.SAF will continue to monitor the shutdown and report to its members on key issues. In the meantime, they list the most significant effects of the shutdown as they relate to the industry.

Concern is high about the lack of inspectors to cope with increased flower imports for Valentine’s Day. Customs and Border Protection (CBP) will have all of the local staff working doing the inspections, not getting paid, but working to make sure that trade does not stop. All of the CBP inspectors have agreed to continue working and understand the volume increases that come with the Valentine’s season. They are also willing to work on reimbursable overtime if there’s a backup or not enough current staff on that shift. However there is no opportunity to move additional inspectors from other areas into high volume ports. Without the funding to pay for their housing, food and expenses they are not able to come. CBP says that they will continue to have them on hold and as soon as the government gets funding they will move inspectors.

"As far as USDA there’s no change. The government shutdown does not affect the identifiers or officers that oversee the fumigations. There’s no change in their services. So, if there are pest identifications needed or fumigations they are fully staffed and available. Full article available here

3.3. Japan and Australia trying out year-round fruit production

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As early as April of this year, Japan and Australia will start a joint project to harvest high-end fruit all year round. The goal is to take advantage of two countries' seasonal differences. The two countries will contribute farmland, personnel and technology for the project, which is also aimed at encouraging businesses to participate in the unique farming structure.

The two governments mean to develop new markets for luxury produce, which will be targeted at wealthy consumers in China and Southeast Asia. According to asia.nikkei.com¸ the deal will enable Japanese farmers, who usually grow fruit in summer and fall, to also grow them in Australia when Japan is in winter, allowing them to harvest in all seasons. As the two countries have little time difference, farmers in one can monitor farms in the other in real time using video and provide instructions to staff on site. Full article available here

3.4. Canada’s new Safe Food law just one week awayThe crucial day for Canada’s Safe Food for Canadians Act (SFCA) and the Safe Food for Canadians Regulations (SFCR) is just one week away. The new Safe Food law and regulations will replace 14 sets of regulations on Jan. 15, 2019. Canada’s food safety focus will shift to prevention of food-borne illnesses “by focusing on prevention through more rigorous risk management and increasing the focus on traceability,” according to the Canadian Food Inspection Agency (CFIA). Full article available here

Also see MPI’s FYI on the impacts of these safe food laws. Click here Safe Food for Canadians Act and Regulations – Information and Guidance

3.5. New German law implements EU no-variety-denominations rule in trademarks

On January 14, 2019, the German Law on Modernisation of the Trademark Law (MaMoG ) will enter into force. The MaMoG implements the provisions of the Directive (EU) 2015/2436 of 16 December 2015.

Pursuant to the new § 8 (2) (12) of the German Trademark Act, the following trademarks shall not be registered or, if registered, shall be deemed invalid:“(12) trademarks which consist of, or reproduce in their essential elements, an earlier plant variety denomination registered in accordance with German law, European Union legislation or international agreements to which the European Union or Germany is party, providing protection for Plant Variety Rights, and which are in respect of plant varieties of the same or closely related species.”

As a consequence of this change already numerous applicants have been faced with a provisional refusal of their class 31 EUTM application since the application covered also registered variety denominations. With the transposition of the variety denomination rule into the national German law, also the German Patent and Trademark Office will have to adapt its examination practice for class 31 applications. Going forward choosing a

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national German trademark application as an alternative will no longer result in registration.

This and further relevant issues and practical consequences of the new law will be dealt with in the EU trademark Module of the CIOPORA Academy on April 1, 2019, in Stellenbosch, South Africa. Full article available here

Business/ Industry

3.6. Chile: Fruit exports increased by 10.8% in 2018According to data from ODEPA and its latest Fruit Bulletin, the volume of fruit exported in 2018 increased by 10.8% when compared to 2017. A total of 2.9 million tons of fruit in 2018 compared with 2.65 million tons in 2017 . The main export product was the apple, with more than 776 thousand tons, relegating table grapes again to the second place, with 724 thousand tons. Cherries ranked third with 185 thousand tons. 2018 was marked by the increase in the export volume of cherries, a species whose shipments grew by an impressive 126.7%, from 82 thousand tons in 2017 to 185 thousand in 2018.

"The value of fruit exports in 2018 exceeded 5.5 billion dollars FOB, the highest that our industry has seen in an annual cycle," said the president of Fedefruta, Jorge Valenzuela. "We are experiencing an increase in exports of high-value fruits, such as cherries and blueberries, a phenomenon that would explain the rise in the shipment values."

The table grape sector is expectant about the situation of the Chilean table grape in the United States, a market that had a historical oversupply - up to 33% by the end of October -, which made producer fear prices would drop. This scenario, caused by the commercial war between the US and China, which didn't allow California to export its grapes, has taken a positive turn in recent days after the USDA reported a significant reduction in stock, which went from more than 18 million boxes in October, to 1.5 million at the end of December.

The export volume of some stone fruits, other than cherry, was also outstanding. In 2018 Plum shipments increased by 29.3%, going from 97 thousand tons in 2017 to 120 thousand tons.Meanwhile, nectarine exports increased by 10.4% (from 59 thousand to 65 thousand tons), in a year driven by shipments to China following the entry protocol signed at the end of 2016. In 2017 the country exported 7,600 tons of nectarines to China, while in 2018 it shipped more than 16,500 tons to that destination. Meanwhile, peach exports increased by 30.1%, as they went from 24 thousand to 31 thousand tons.

In 2018 the country exported 170,000 tons of mandarins and clementines, i.e. 45.6% more than in 2017. Finally, avocado exports in 2018 amounted to 132 thousand tons, 25.2% less than in 2017, due to the strengthening of the Chilean market for this product, as well as to the climatic conditions that marked the harvest. Full article available here

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China

3.7. High prices but no certificates for some imported fruitAccording to the Voice of China, there are many so-called "imported fruits" with "foreign labels" on the market. But are these so-called "imported fruits" really coming from overseas? In a recent investigation and verification programme undertaken by the market supervision department, a range of fruit in Nanjing supermarkets which were advertised as imported were discovered to be domestically produced.

According to the relevant laws and regulations of China, imported fruits must have animal and plant quarantine licences and phytosanitary certificates issued by the exporting countries and regions, and relevant purchase receipts should be kept to trace the fruit's origin. However, law enforcement officers of the Jiangning District Market Supervision Bureau found that most of the vendors could not show the relevant certificates. Full article available here

3.8. Chengdu will have the first intelligent and automated railway port in China

The first fully intelligent and automated international railway port in China will be built in Chengdu city, Sichuan province. The new infrastructure will be able to move 1.5 million containers per year.Its mechanical devices will be fully automated, assisted by advanced technologies such as the Internet of Things, communication, and intelligent navigation, which will allow it to become the fastest port for moving goods from China. According to the authorities, the port is expected to release 85% of its operators and increase the efficiency of unloading, reception, dispatch, horizontal transport, and container storage operations by 30%. To date, the port is China's largest internal port, mainly in terms of annual performance. Between January and November 2018, it handled a total of 660,500 containers. Full article available here

3.9. Major New Soil Pollution Legislation Comes into Effect in ChinaA new Soil Pollution Prevention and Control Law, was passed by the Chinese Government in August by the Standing Committee of the National People’s Congress (NPC) of China and came into force on the first day of January.

It is China's first comprehensive soil pollution prevention and restoration legislation, and will be based largely on minimum standards set by the national-level Ministry of Ecology and Environment—with local-level environmental protection bureaus encouraged to create even more stringent standards as dictated by local conditions. Although the law

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addresses soil pollution prevention and rehabilitation on all types of land, regulation of agricultural land is a major focus.

Presently, Chinese farmers on average use some of the highest levels of fertilizer and pesticides per unit of land in the world. Over-application is a major problem, with excess fertilizer and other chemicals polluting soil and water supplies and leading to increased resistance among pests. According to government findings published in 2014, 16.1% percent of soil samples taken during a national survey contained excessive levels of pollutants.

The Soil Pollution Prevention and Control Law is the clearest evidence yet of the urgency China's national government is putting on getting farmers to adopt sustainable agricultural practices. It also introduces potential tax breaks for companies operating in the field of soil pollution control and restoration, while simultaneously urging financial institutions to price the cost of soil pollution control and potential risk of soil pollution penalties or remediation costs into financial transactions involving the transfer of land rights.

The Soil Pollution Prevention and Control Law also introduces new and unprecedented punishments for organizations and individuals found to have polluted the soil in violation of the law. For example, the legislation lists 25 specific types of illegal actions that will result in legal liability for soil pollution. It's also the first time the first time that a "double penalty" system will be applied for soil pollution: this mean that when a company fails to control soil pollution or live up to its responsibility to rehabilitate polluted soil, individuals-in-charge within the company may also be simultaneously penalized. It is recommended that all international companies with agricultural operations in China seek expert advice on its potential impact on their business. Full article available here

3.10. Buyer Programme and Aggressive New Pricing for China Fruit LogisticaChina’s leading trade fair for the fresh fruit and vegetable business is investing millions of RMB in a brand-new assisted buyer programme and an aggressive new pricing strategy for exhibitors with the aim to deliver an even better fresh produce business event in China every year.

It is allocating a multi-million RMB budget to fund more than 300 key fresh fruit and vegetables buyers from every province in China to the annual trade fair, the second edition of which takes place in Shanghai in May 2019.

At the same time, CHINA FRUIT LOGISTICA is reducing the price for exhibitors by almost half to make it more affordable for the China market, which means that the best growers, distributors, brands, and new technologies from China and the rest of the world can come and exhibit at our trade fair.” Full article available here

3.11. Imported fruit gaining ground quickly in western China

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In 2018, besides common fruit like apples and oranges, more tropical fruit has hit China's western regions since the fruit market has been opening wider to the world. An increasing number of imported fruit markets have emerged in the city of Lanzhou since last year. In the supermarkets, shelves or booths for imported fruit have been placed in areas where they can easily grab customers' attention.

"Customers have higher requirements for fruit variety and quality since living standards have been improved and more people are pursuing a healthy diet," said Hu Junyi, a marketing department manager of a Lanzhou-based fruit company. "Upgrading of the consumption structure leads to the increase of imported fruit markets, as well as more reasonable prices and diversified options." Hu credits this to the opening-up policy of the country. Full article available here

3.12. Pocket-size food scanner to battle food wasteThrough the “We Rescue Food” alliance, the Bavarian Ministry of Food, Agriculture and Forestry wants to combat waste by means of 17 initiatives. One of the projects concerns the food scanner designed to help reduce waste at the end of the value chain – in stores and in the homes of consumers. In future, the inexpensive pocket-size device will determine the actual freshness of food, whether packaged or unpackaged..

The core of the mobile scanner is a near-infrared (NIR) sensor that measures the ripeness of the food and identifies the amount and composition of its contents. “Infrared light is beamed with high precision at the product to be investigated and then the scanner measures the spectrum of the reflected light. The absorbed wavelengths allow us to make inferences about the chemical composition of the food,” “In the laboratory, we’ve long been able to quantify individual components using near-infrared spectroscopy. What’s new is that this can now be done with small, low-cost sensors,”

“Foodstuffs are often counterfeited – for example, salmon trout is sold as salmon. Once suitably trained, our device can determine the authenticity of a product. It can also identify whether products such as olive oil have been adulterated,” says the physicist involved. However the scanner can only evaluate the product quality of homogeneous foods. To this end, the scientists are investigating high-spatial-resolution technologies such as hyperspectral imaging and fusion-based approaches using colour images and spectral sensors.

To be able to determine the quality of food based on the sensor data and the measured infrared spectra and compute the shelf life predictions, the research teams are developing intelligent algorithms that search for telling patterns and regularities in the data. “Through machine learning, we can increase the recognition potential. In their tests, they studied tomatoes and ground beef.

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The scanner sends the measured data via Bluetooth to a database for analysis. This database is a specially developed cloud solution in which the evaluation methods are stored. Next, the test results are transmitted to an app that displays them to the user and shows how long the food item will remain fresh under different storage conditions, or indicates that its shelf life has already expired. In addition, the consumer is given tips on alternative ways of using food that is past its best-before date. A test phase is due to begin in supermarkets at the start of 2019, which will investigate how consumers respond to the device. Full article available here

3.13. “The French agricultural model is the most sustainable in the world”For the third year in a row, the sustainability index for the French food and agriculture model is at the top of the world ranking according to the British magazine “The Economist”. It is the result of a comparative study of the different ways of consuming and producing in 67 countries (which represent alone 90% of the world’s GDP and 80% of the population). In order to set up this index, some forty criteria were taken into account and divided into three categories: 1- the waste of water and food, 2- the sustainability of the agricultural methods, 3- the management of nutritional problems.

The author of the study, Martin Koehring, also highlights the effectiveness of the fight against food waste in France: “in a world where one third of all food produced is wasted, France is at the forefront in its policies against food waste.” This year, France made significant progress in terms of the sustainability of its agricultural practices. “The Economist” applauds the actions taken by France among others, in terms of preserving biodiversity, fighting against the artificialization of soils and diversifying the crops. The efforts made by France and its farmers in the agro-ecological transition.For more information, the complete study is available here: Food Sustainability Index Full article available here

3.14. Are pesticides necessary to feed the world?The most aggressive pesticides have been banned for years in the European Union, but they are still found in the river basins of many rivers. In addition to affecting animal and plant species, according to the UN, the inappropriate use of these substances causes the death of 200,000 people a year, especially in developing countries. This article makes a case for biological control using cassava as an example. Full article available here

Floral news

3.15. Consumers expect flowers to last 8+ days"

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A large scale consumer research (8,000 respondents) conducted by Q&A in Europe, commissioned by Chrysal, shows that 91% of consumers find the freshness of flowers the most important aspect when purchasing flowers. Moreover, consumers expect the flowers to last at least 8 days. And to fulfil these expectations it is essential to use flower food. However, the research shows that only 54% (European average) of consumers consistently use the flower food sachet attached to the flowers. Many consumers are still not aware of the benefits of flower food. Once it is explained that flower food will make flowers stay beautiful, 85% of customers will start using flower food more often. Full article available here

Health

3.16. Tomato health benefitsA medium tomato provides just 22 calories, and about 5 grams of total carbs, with 3 as sugar and 1.5 as fibre. But this low-calorie, low-carb package is chock-full of nutrients, and has been linked to a variety of health benefits. These article lists seven, ways in which tomatoes will provide health benefits.Full article available here

3.17. Blueberries to lower risk of tooth decayThe Oral Health Foundation claims that blueberries (and cranberries) seem ‘especially good for oral health’. Dentists have urged manufacturers of mouthwash and toothpastes to start using the blueberries in their products. It comes after scientists found the berries can reduce the risk of tooth decay by lowering the activity of bacteria in the mouth. Fruits such as these are a rich source of polyphenols which are antioxidants, already known to protect against free radicals in the body. The ‘polyphenols stick around in our saliva and will continue to help our mouth, even after we’ve swallowed them’. Full article available here

3.18. Daily orange juice consumption, key to preventing loss of subjective cognitive functions

The regular consumption of orange juice has been associated with a significantly lower probability of suffering from deficiencies in subjective cognitive functions (SCF) at older ages. Orange juice is a source of the β-cryptoxanthin carotenoid that could contribute to the benefits observed. The link between the consumption of juice and its benefits in mental health is more pronounced the more advanced the age, so this food would be especially beneficial for elderly people. Full article available here

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3.19. Diabetes management: Broccoli may help regulate blood sugar levelsThe ever-so nutritious broccoli is one such vegetable that is said to do wonders for diabetes management. For a list of its advantages see the Full article here

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