{"id":591029,"date":"2026-09-05T13:48:12","date_gmt":"2026-09-05T13:48:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/591029\/"},"modified":"2026-09-05T13:48:12","modified_gmt":"2026-09-05T13:48:12","slug":"grain-sector-disappointed-farmers-are-choosing-cheap-palm-kernel-feed-over-local-grain","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/591029\/","title":{"rendered":"Grain sector &#8216;disappointed&#8217; farmers are choosing cheap palm kernel feed over local grain"},"content":{"rendered":"<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">Disappointment is deepening in New Zealand&#8217;s struggling arable sector over farmers continuing to opt for imported animal feeds over local grain.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">New Zealand was one of the largest importers of palm kernel expeller (PKE) in the world, using the byproduct of the palm oil industry as a feed supplement for dairy cattle, largely when pasture was scarce.<\/p>\n<p>Midday rural news for 4 September 2026<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">Arable farmers growing feed grain had long fought for greater uptake of their product domestically, but struggled to be competitive against similar imported products on price.<\/p>\n<p><a href=\"https:\/\/www.rnz.co.nz\/news\/country\/580278\/thirty-two-more-dairy-farms-for-canterbury-some-grain-growers-go-for-milk\" class=\"underline-brand-hover visited:text-foreground-secondary hover:visited:text-foreground-primary\" rel=\"nofollow noopener\" target=\"_blank\">More new dairy farms for Canterbury: Grain growers go for milk<\/a><\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">The issue was raised at the industry association Seed and Grain New Zealand (SGNZ) conference in Christchurch this week, where some of the country&#8217;s top arable and seed companies and government officials explored challenges and opportunities for the legacy sectors.<\/p>\n<p><a href=\"https:\/\/www.rnz.co.nz\/news\/country\/1244955\/under-pressure-seed-and-grain-seek-green-shoots-in-challenging-market\" class=\"underline-brand-hover visited:text-foreground-secondary hover:visited:text-foreground-primary\" rel=\"nofollow noopener\" target=\"_blank\">&#8216;Under pressure&#8217; seed and grain seek green shoots in challenging market<\/a><\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">At the conference, SGNZ vice president Jo Townshend of Midlands Seed in Mid Canterbury raised concerns about the challenges for arable to compete against the usually cheaper imports.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">Townshend said New Zealand&#8217;s arable domestic manufacturing sector lacked government support to help it remain viable and cost competitive.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;It&#8217;s a huge amount of importing coming into this country, possibly due to free trade agreements or other agreements, that are really putting a ceiling on the ability of arable farmers to support our own domestic economy, including process growers,&#8221; she said.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;I mean, for $2 billion worth of animal feed coming into the country, for a country that&#8217;s pretty good at producing it itself, is pretty disappointing.&#8221;<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">Aotearoa imported more than 2 million tonnes of the PKE feed product from countries like Indonesia and Malaysia each year, a mostly dry matter product from the fruit of the palm.<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/09\/4MW653J_image_crop_98465.jpeg\"  alt=\"A dry Waikato for this jersey herd\" width=\"614\" height=\"384\" class=\"ml:max-h-[50rem] max-w-full aspect-[16\/10] object-cover\"  decoding=\"async\" loading=\"lazy\" fetchpriority=\"auto\"\/><\/p>\n<p>When pastures are dry, farmers have a choice of supplementary feeds for dairy herds.<\/p>\n<p class=\"text-foreground-secondary flex-shrink-0 ml-4\">Susan Murray RNZ<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">Environmentalists <a href=\"https:\/\/www.rnz.co.nz\/news\/country\/533765\/protesters-call-for-fonterra-to-phase-out-use-of-palm-kernel-expeller\" class=\"underline-brand-hover visited:text-foreground-secondary hover:visited:text-foreground-primary\" rel=\"nofollow noopener\" target=\"_blank\">opposed importing PKE<\/a>, due to its environmental effects and links to deforesting tropical rainforests.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">SGNZ president Edward Luisetti <a href=\"https:\/\/www.rnz.co.nz\/news\/country\/551089\/sowing-the-seeds-of-success\" class=\"underline-brand-hover visited:text-foreground-secondary hover:visited:text-foreground-primary\" rel=\"nofollow noopener\" target=\"_blank\">of Canterbury&#8217;s Luisetti Seeds<\/a> said arable farmers with irrigation were looking forward to a warmer summer, particularly on the East Coast, if El Ni\u00f1o arrived as forecast.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">However, he also expected the drier conditions to drive up farmers&#8217; PKE imports this year.<\/p>\n<p><a href=\"https:\/\/www.rnz.co.nz\/news\/environment_climate\/1113080\/how-will-this-year-s-record-breaking-el-nino-affect-nz-and-the-world-five-things-to-know\" class=\"underline-brand-hover visited:text-foreground-secondary hover:visited:text-foreground-primary\" rel=\"nofollow noopener\" target=\"_blank\">How will this year&#8217;s record\u2011breaking El Ni\u00f1o affect NZ and the world? Five things to know<\/a><a href=\"https:\/\/www.rnz.co.nz\/news\/weather\/854771\/el-nino-could-bring-a-highly-unusual-warm-spring\" class=\"underline-brand-hover visited:text-foreground-secondary hover:visited:text-foreground-primary\" rel=\"nofollow noopener\" target=\"_blank\">El Ni\u00f1o could bring a &#8216;highly unusual warm&#8217; spring<\/a><\/p>\n<p>Competitive price point<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">Farming leader Nathan Guy was a former Horowhenua dairy farmer and agriculture minister, and now <a href=\"https:\/\/www.rnz.co.nz\/news\/business\/597709\/booming-rural-economy-on-display-at-sold-out-fieldays\" class=\"underline-brand-hover visited:text-foreground-secondary hover:visited:text-foreground-primary\" rel=\"nofollow noopener\" target=\"_blank\">is the country&#8217;s special agricultural trade envoy<\/a>, flying the flag with government officials to grow New Zealand agriculture exports.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">In response to questions from Jo Townshend at the event, Guy said he fed his cattle PKE and found it was an easy supplement to switch on and off.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;A benefit with PK is you can start the cows on it tomorrow. There&#8217;s no rumen digestion change as there is with some other feeds.&#8221;<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">But he said the costs for PKE had increased, and local grain was less price competitive.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;PK&#8217;s very expensive right now, very expensive with shipping costs,&#8221; he said.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;But I think right now there&#8217;s a price point.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;Is there a way of potentially the arable over time becomes more cost competitive?&#8221;<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">He said many farmers, including himself, would get to a point where they would look to grow maize themselves in the face of rising costs.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">One farmer who contacted RNZ said PKE was $300 per tonne, versus $500 for grain, and dairy was a business not a national charity.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">Fonterra said its cows were 96 percent grass-fed (including silage, hay and forage crops like legumes and brassicas).<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">The dairy co-op and world&#8217;s largest exporter of dairy <a href=\"https:\/\/www.rnz.co.nz\/news\/country\/533765\/protesters-call-for-fonterra-to-phase-out-use-of-palm-kernel-expeller\" class=\"underline-brand-hover visited:text-foreground-secondary hover:visited:text-foreground-primary\" rel=\"nofollow noopener\" target=\"_blank\">previously told RNZ<\/a> that PKE made up less than 2 percent on average of its farmer-shareholders&#8217; cows&#8217; overall diet<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">Meanwhile, Greenpeace activists <a href=\"https:\/\/www.rnz.co.nz\/news\/crime-and-justice\/557314\/palm-kernel-protesters-breach-security-at-port-taranaki\" class=\"underline-brand-hover visited:text-foreground-secondary hover:visited:text-foreground-primary\" rel=\"nofollow noopener\" target=\"_blank\">staged a protest<\/a> at an Agrifeeds PKE storage shed at Port Taranaki last year.<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/09\/4K9DFT4_IMG_2592_1_1_JPG.jpeg\"  alt=\"Six Greenpeace activists are occupying part of Taranaki's port to protest Fonterra's use of palm kernel.\" width=\"614\" height=\"384\" class=\"ml:max-h-[50rem] max-w-full aspect-[16\/10] object-cover\"  decoding=\"async\" loading=\"lazy\" fetchpriority=\"auto\"\/><\/p>\n<p>Greenpeace activists occupied part of Taranaki&#8217;s port in April last year, to protest Fonterra&#8217;s use of palm kernel.<\/p>\n<p class=\"text-foreground-secondary flex-shrink-0 ml-4\">Supplied \/ Greenpeace<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">Its global project lead for agriculture, Amanda Larsson, said the palm kernel supply chain was &#8220;incredibly murky&#8221; and made it difficult to guarantee that no rainforests were destroyed in the process.<\/p>\n<p><a href=\"https:\/\/www.rnz.co.nz\/news\/business\/591253\/fonterra-settles-activists-misleading-packaging-lawsuit-for-100-percent-nz-grass-fed-claims\" class=\"underline-brand-hover visited:text-foreground-secondary hover:visited:text-foreground-primary\" rel=\"nofollow noopener\" target=\"_blank\">Fonterra settles activists&#8217; misleading packaging lawsuit for &#8216;100 percent NZ grass-fed&#8217; claims<\/a><\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;We&#8217;re pretty aligned with the arable farmers on this one,&#8221; Larsson said.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">&#8220;I think most New Zealanders would be pretty horrified to hear the dairy industry is connected to rainforest destruction, when there is a homegrown alternative that would actually support New Zealand&#8217;s own farmers.&#8221;<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">Larsson said farmers may need support in transitioning to more diverse and less monocultural farming systems, in the face of climate change.<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/09\/4KGQCNI_shared_image_1_jfif.jpeg\"  alt=\"Delegates arriving at the Fonterra AGM were greeted by a Greenpeace protest about the use of palm kernel as a stock feed. Police prevented a truck displaying a protest banner from getting into the car park of the conference venue.\" width=\"614\" height=\"384\" class=\"ml:max-h-[50rem] max-w-full aspect-[16\/10] object-cover\"  decoding=\"async\" loading=\"lazy\" fetchpriority=\"auto\"\/><\/p>\n<p>Delegates at the 2024 Fonterra AGM were greeted by a Greenpeace protest about the use of palm kernel as a stock feed.<\/p>\n<p class=\"text-foreground-secondary flex-shrink-0 ml-4\">RNZ \/ Robin Martin<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">The Foundation for Arable Research (FAR) [<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">https:\/\/www.rnz.co.nz\/news\/country\/575244\/arable-sector-launches-new-trademark-to-champion-nz-grain-over-imports launched a landmark NZ Grown Grains certification last year], to help consumers identify products made with local grain and promote local uptake among farmers.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">More than 34 producers were now certified, with more being assessed, including grain for animal feed.<\/p>\n<p class=\"[&amp;_em]:font-serif-text-italic [&amp;_cite]:font-serif-text-italic\">FAR also released new research last month showing local feed grains had a lower carbon footprint than imported feeds, going off earlier assessments also by AgResearch.<\/p>\n","protected":false},"excerpt":{"rendered":"Disappointment is deepening in New Zealand&#8217;s struggling arable sector over farmers continuing to opt for imported animal feeds&hellip;\n","protected":false},"author":2,"featured_media":591030,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[111,43,139,69],"class_list":["post-591029","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-zealand","tag-new-zealand","tag-news","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/591029","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=591029"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/591029\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/591030"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=591029"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=591029"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=591029"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}