Rural round-up

Red meat is worth 35 annual Avatars and could be much more:

Federated Farmers has started consultation among its membership covering reform of New Zealand’s $6 billion Red Meat industry.  The red-meat industry is currently worth around 35 annual Avatar movies to the New Zealand economy.

“Given Avatar Director James Cameron is also a Wairarapa farmer, reform of New Zealand’s red meat industry represents our economic blockbuster if we can pull it off,” says Jeanette Maxwell, Federated Farmers Meat & Fibre spokesperson.

“From the number of calls I have already received, I know both the media and our meat processors are very keen to see a copy of our paper. . .

Feds’ members only meat report:

FEDERATED FARMERS has put “three broad options” to its members on meat industry reform in a paper to be publicly released in the New Year.

Meat & Fibre section national chair Jeanette Maxwell says the solutions within the options are “more like a pick a mix” and suggests the processor focussed option will generate much discussion.
“There is a push by some in the industry to merge the cooperatives, something that’s much easier said than done. If the thinking is ‘just copy Fonterra’ then it will not succeed. To work, any merger needs a reassessment of the entire industry but especially its capital structures.” . . .

Alliance group’s Blue Sky Meat takeover talks fail – Tina Morrison:

(BusinessDesk) Meat co-operative Alliance Group’s talks about a potential takeover of rival South Island processor Blue Sky Meats have ended when Blue Sky withdrew after a failure to agree on key terms.

Blue Sky withdrew from the “respectful and amicable” talks early this month after being approached by Alliance a couple of months ago, Blue Sky chairman Graham Cooney said.

Both processing companies were based in Invercargill.

The farmer-led Meat Industry Excellence group had this year been pushing for closer integration of meat companies in an attempt to improve efficiency and boost profits.  . .

Farmers’ dairying halt boosts river -

Dairy farmers are adapting to the massive pressures of farming under the close scrutiny of the public eye, but one farmer on the outskirts of Palmerston township in East Otago has more at stake than most.

For a start, Alan and Iain Ford’s 100ha Glenlurgan dairy farm on fertile river terraces is neatly split in two by the Shag River.

To complicate matters further, the townships of Palmerston, Dunback and Goodwood all draw their water from a pumping station intake at the lower end of the farm. . .

A timely reminder:

Fonterra dropped a bombshell last week when it announced its latest consideration on its farmgate milk price.

For farmer shareholders in New Zealand’s largest company, it had been shaping up to be a particularly merry Christmas, with economists suggesting the milk price could be lifted as much as 40c.

Elevated prices, which have defied predictions and remained at very high levels – the GlobalDairyTrade price index was just 7% below its April high and about 50% higher than a year ago – raised expectations for the forecast to rise. . .

Christmas comes early for Westland dairy farmers:

Federated Farmers is thrilled about the latest announcement from Westland Milk Products regarding their milk pay-out forecast of $8.30 per kilogram of milk solids.

“Dairy farmers have had Christmas early this year with this pay-out announcement,” says Richard Reynolds, Federated Farmers West Coast Dairy chair.

“This is a huge difference from last years pay-out and I know a lot of dairy farmers on the West Coast will be ecstatic at this announcement. . .

Taranaki provincial president hands over the reins:

Federated Farmers is saddened to lose its Taranaki provincial president, Harvey Leach, following his resignation this week.

“Harvey has been a huge influence and a game changer in the Taranaki region, and we will all be sad to see him go,” says Bruce Wills, Federated Farmers President.

“The role of provincial president is voluntary and takes a lot of time and dedication.Our provincial presidents do a lot of great work that does not get a lot of coverage, but Harvey has always been one of life’s true gentlemen. He will be missed but he leaves his province in great shape. . .

Bloodstock – setting up to succeed:

The New Zealand’s bloodstock sector is more than just an agribusiness niche and is attracting renewed interest from investors, says Geoff Roan, Senior Manager, Bloodstock, for Crowe Horwath.

While sometimes seen as a high risk investment, if structured correctly and professionally managed as a business, the bloodstock sector can be both profitable and fun, says Mr Roan.

The bloodstock sector was valued at $1.6 bn in NZ by New Zealand Racing Board in 2010, which compares favourably with viticulture ($1.5 bn) and aquaculture ($1.7 bn).

Contribution to GDP $1.64 billion $1.5 billion $1.7 billion Direct employment impact FTE $8,877 $5,940 $10,520 Total employment impact FTE $17,000 $16,500 $26,600 . . .

2013 Waipara Hills Sauvignon Blanc textural and bursting with flavour:

Waipara Hills release their 2013 Waipara Hills Marlborough Sauvignon Blanc, just in time for what is predicted to be a hot summer. The new release Sauvignon Blanc is the perfect partner on a balmy summer evening, with its fresh flavours of guava, melon, nettles and flint that flow from the nose into the mouth.

Waipara Hills Winemaker, Simon McGeorge, is really looking forward to showing off the 2013 Waipara Hills Sauvignon Blanc in the coming year. “I love the rich burst of fruit on the first sip, but it’s the texture and structure that I think are exciting. A grapefruit pith character, along with a nice rich mid-palate, gives this wine vibrancy and complexity which I believe will really have broad appeal.” Simon said. . .

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