Grain producers in New Zealand are concerned about the demand for imported palm kernel expeller.

The issue of feed import substitution became a central topic at the Seed and Grain New Zealand (SGNZ) association conference in Christchurch. Industry representatives noted that domestic grain producers cannot compete with foreign suppliers on product cost. In particular, SGNZ Vice President Joe Townsend stated that the lack of government support limits the potential of local farmers, while the annual volume of imported feed raw materials reaches 2 billion dollars.

The main imported product is palm kernel expeller (PKE), a by-product of the palm oil industry, imported primarily from Indonesia and Malaysia in volumes exceeding 2 million tons annually. Special agricultural trade representative Nathan Guy explained that farmers often choose PKE due to its ease of use as an additive, despite rising prices. According to one farmer, the cost of a ton of palm kernel expeller is 300 dollars, whereas local grain costs 500 dollars per ton.

Environmental organizations, including Greenpeace, criticize the use of PKE, pointing to the lack of transparency in supply chains and the risks of tropical rainforest destruction. For its part, the Fonterra cooperative reports that palm kernel expeller makes up less than 2% of the total cow diet, with the majority of feed provided through grazing, silage, and hay.

As support measures for the domestic sector, the Foundation for Arable Research (Far) has launched the NZ Grown Grains certification, which helps identify local grain. At present, more than 34 producers have received the status. Furthermore, research by Far and AgResearch indicates that the carbon footprint of local forage crops is lower than that of imported counterparts.