GDT milk price up 1.1%

The trade weighted index went up by 1.1% in this morning’s GlobalDairyTrade auction.

The price of anhydrous milk fat increased 1.7%, butter was up 4.7%; butter milk powder was down 2.2%; cheddar dropped 6.5%; skim milk powder was up 3.9% and whole milk powder increased 2.2%.

Strengthening links to the east

We are reaping the benefits from strengthening links with countries to our west, in particular China.

Prime Minister John Key’s trip to Latin America signalled we’re also taking links with countries to our east more seriously.

There is good potential for business relationships, trade and also links through education:

Education Minister Hekia Parata has announced that seven 15 and 16 year-old Spanish language students from New Zealand will travel to Santiago later this year as part of a new exchange programme.

The “Flying Kiwis” programme has been developed in response to the highly-successful Chilean government-sponsored “Penguins without Borders” programme, which was piloted in New Zealand this year, and saw forty Chilean students come to New Zealand to live and study for two terms in the first half of the year.

The New Zealand students will go to school in Santiago and stay with the families of the Chilean students who participated in the “Penguins without Borders” programme.

Ms Parata made the announcement today during her meeting with Chile’s Minister of Economy, Development and Tourism, Felix de Vicente in Santiago.

“The “Flying Kiwis” programme is an exciting opportunity for our students. It will enable them to see and experience life in Chile and immerse themselves in the Spanish language,’’ says Ms Parata.

“It was an honour for New Zealand to be chosen to host the pilot of the “Penguins without Borders” programme and a great pleasure for our schools and communities to host the first group of Chilean students. I know that the schools and families in Santiago will welcome and look after our students in true Chilean style.’’

The New Zealand students will be chosen from those learning the Spanish language at schools currently hosting the Chilean students in New Zealand.  Their travel will be sponsored by Education New Zealand, the government’s agency for international education.

“Education exchange is a wonderful opportunity that brings a new world of experience for all involved.  Scholarship and exchange programmes such as “Flying Kiwis” and “Penguins without Borders” create lifelong connections for both the Chilean and New Zealand students taking part. We look forward to continued involvement in such programmes.”

Earlier today Ms Parata met with Chile’s Minister of Education, Carolina Schmidt, and invited Chile to the International Summit on the Teaching Profession which New Zealand will host in March 2014.

Ms Parata is in Chile to reinforce the bilateral relationship, in which education is a key strand, between Chile and New Zealand, following on from Prime Minster John Key’s visit to Chile earlier in the year.

There’s a huge element of luck in exchanges. We got the jackpot when we hosted a teenager from Argentina for a year through AFS and his family is now ours.

The Chilean exchanges are shorter, just a few weeks, but that is time for those involved to learn a lot and establish relationships which could endure.

The programme might lead to longer exchanges and other educational opportunities.

Year-long exchanges between countries in the southern hemisphere, like Chile and Argentina,  make it easier for students because the educational calendar is similar whereas those going to or from the northern hemisphere countries like Japan or China have to come or leave part way through a school-year.

 

 

Rural round-up

2013 New Zealand Wine Vintage Set to Be One of the Best:

The 2013 New Zealand grape harvest has been completed with high quality grapes picked in all regions. Winemakers across the country are heralding it as one of the best vintages in history.

“An outstanding New Zealand summer provided near perfect conditions for growing grapes across the country” said Philip Gregan, chief executive officer of New Zealand Winegrowers. “The result is that we expect the 2013 wines to be vibrant, fruit driven and complex expressions of our diverse grape growing regions. 2013 looks set to be a vintage to remember.”

According to the 2013 Vintage Survey, 345,000 tonnes of grapes were harvested. The 2013 crop is up 28% on the small harvest last year but up only 5% on 2011. . .

Fieldays: new forecasting service for farmers -

A new weather and environmental forecasting service has been launched at the National Fieldays by NIWA today.

The service provides farmers with tailored information about weather conditions on their farm.

The web-based weather forecasting information service called NIWA forecast aims to help farmers and growers identify the right time to carry out weather-dependent operations like irrigation, spraying and harvesting.

NIWA chief scientist, atmosphere, Dr Murray Poulter said the new service takes forecasting to another level because different forecasts can now be created for properties as little as 12km apart.

“NIWA forecast can deliver valuable climate analysis and forecasts from the present to 15 days ahead direct to farmers’ and growers’ computers via the internet direct to their farm.” . . .

Meat Industry Excellence gets into the first gear of reform:

With the 2013 National Agricultural Fieldays now underway, so is reform of New Zealand’s red meat sector being championed by Meat Industry Excellence (MIE). MIE is shifting the gears of reform following intensive meetings held in Christchurch and Wellington last week.

“Having met with Beef+Lamb NZ Chairman, Mike Petersen and Federated Farmers’ Meat and Fibre executive, there is recognition and support among farmers for a truly sustainable red meat sector,” says Richard Young, MIE Chairman.

“MIE sees its role as shifting the gear for reform out of neutral. For an industry bedevilled by past infighting it is great to know that Federated Farmers and Beef+Lamb NZ want to work with us. . .

Federated Farmers Meat & Fibre works on reform:

Federated Farmers Meat and Fibre will follow up on a positive meeting with the Meat Industry Excellence Group (MIE) with a discussion on reform and farmer behaviour at its 2013 conference in Ashburton next month.
“MIE gave us an update on where they are at and some of the changes they are working on,” Federated Farmers Meat & Fibre chairperson Jeanette Maxwell said.

“We had a highly constructive conversation around meat industry issues and many areas of alignment emerged.

“Both organisations realise they have much in common and want to achieve the same goals. In the next couple of weeks there will be a lot more information to emerge from MIE. . .

Farmers to have equal say in Fairtrade:

Farmers from Africa, Asia Pacific and Latin America are to have an equal say in running the global Fairtrade movement for the first time this week.

In a ground-breaking move, producers of tea, coffee, bananas and other goods will have half the votes at Fairtrade International’s annual General Assembly in Germany on Wednesday, 12 June 2013. . .

Fairtrade is the first major development organisation to pioneer such power-sharing between groups in the northern and southern hemisphere. . .

Less bureaucracy more trade

Quote of the day:

. . . the findings that apply to foreign trade will also obviously apply to the inland trade as well. The more bureaucracy there is then the less trade will get done: the simpler (or less of it) the bureaucracy there more trade will get done. And as it is indeed trade that produces economic wealth this would make us all richer.

What’s really interesting about the less bureaucracy on foreign trade results is that small firms gain as well as large. Thus we’re not seeing the small guy being trampled when the big boys are let off the regulatory leash.

So, there really seems to be no reason at all why we should not reduce bureaucracy in order to make us all richer. And those bureaucrats will now have to go and do something useful for a living: shame, isn’t it? Tim Worstall

He was opining on Anti Dismal’s post Making trade easier and less bureaucratic actually helps trade.

 

Milk price down 5.3% in GDT auction

The trade weighted price of mik dropped 5.3% in his morning’s GlobablDairyTrade auction.

The price of anhydrous mik fat dropped 4.3%; butter was down 2.6%; butter milk increased 3.3%; skim milk powder was down 3.1% and wholemilk powder dropped 7.1%.

 

Perfect storm shows sheepmeat challenges

A report from Rabobank shows the challenges facing the sheep industry:

The New Zealand sheepmeat industry has been riding a ‘rollercoaster of returns’ in recent years, according to agribusiness banking specialist, Rabobank. A perfect storm of high supply, strong local currency and weak consumer demand has reduced returns and some key challenges must be addressed in order to secure a prosperous future for the sector.

In its recently released report ‘Sheepmeat – riding the rollercoaster of returns’ reviewing the sheepmeat sectors in New Zealand and Australia, Rabobank says in order to capitalise as conditions improve in established export markets, the sector will need to retain sufficient scale and market presence relative to competing meats.

Rabobank CEO New Zealand Ben Russell says the industry has experienced extreme volatility in returns throughout the value chain, and that is likely to continue with an expected supply shortfall looming in the coming season.

“The New Zealand sheep flock has been declining in size for many years with the drought and lower prices last season likely to see that trend continue next year,” he said.

“The shrinking flock has created structural over-capacity that will need to be addressed, however there are risks and practical challenges in achieving this that need to be carefully considered by processing companies.

“Ultimately the path to greater industry prosperity and growth is creating more value for consumers and a more efficient supply chain, including on-farm, procurement, processing and marketing.”

Better returns for sheep farmers depend not just on better prices for meat, it requires better returns for by-products including wool.

New Zealand’s sheep industry started to produce wool. The introduction of refrigeration enabled meat to be exported too but wool was still an important part of sheep farmers’ incomes.

Two or three seasons ago strong wool prices were reasonable but they’re fallen away again and that is one of the reasons sheep farmers’ incomes have slumped.

Notwithstanding the challenges facing the sheepmeat industry, Mr Russell says Rabobank remains enthusiastic about the long-term potential for the sector in New Zealand, and working alongside its clients throughout the supply chain to capitalise on future opportunities.

Report author, Rabobank animal proteins analyst Matt Costello says that, given the sector’s exposure to and reliance on export markets, and the fact that sheepmeat is a higher valued product, the sheepmeat industry is dependent on the economic environment and consumers in these markets.

“Market demand for sheepmeat has been subdued as a result of higher prices and fragile economies, especially in Europe, whereas Asia and the Middle East have emerged as stronger markets and should be cultivated,” he says.

“With an improving outlook in some of the lucrative sheepmeat export markets and with the optimism surrounding the potential of developing markets such as China – New Media Release June 3, 2013 2
Zealand and Australia will be the only countries positioned to supply consumers around the world.

“It is increasingly important that the sheepmeat sector retains significant scale and market presence in comparison to competing meats to remain viable and capitalise on the longer-term growth opportunities.”

Part of the problem in New Zealand isn’t competition from other meats in export markets, it’s competition for land from dairying.

Dairy returns are better and improving which has pushed up farm prices. Growing demand for milk can support the increase in prices, volatile returns for sheepmeat can’t.

The big ‘dip’

The Rabobank report finds that the variation in returns for sheepmeat producers and exporters over the past few years has been significant, with “unprecedented” volatility.

Mr Costello says there is a lack of confidence among producers across the sheepmeat industries in both countries.

“The extreme high and low points over the past few years have not helped anyone, only serving to add to frustration and disillusionment,” he says.

“In simple terms, historically tight supply from both New Zealand and Australia underpinned the initial surge in livestock prices during 2010 and 2011, and the ensuing weak prices through 2012 and 2013 have been driven by higher short-term production due to the extremely dry conditions across both countries.”

While tighter supply in 2013/14 will assist to firm pricing over the coming year, a more sustainable market recovery will need to be driven by improved consumer demand and ultimately a more buoyant global economy.

Sheepmeat isn’t a traditional food in many parts of the world but the demand for protein from developing countries might help that.

Emerging markets

Globally, rising prices have been met by stubborn consumers in the major sheepmeat export markets of the EU, UK and the US. The emergence of developing markets throughout Asia and the Middle East has helped to offset the declines in volumes and, to a lesser extent, returns from the traditional export markets.

Not only is weak consumer demand impacting returns for the industry currently, but a persistently high exchange rate has also been challenging both countries.

Even with a slight fall in recent weeks, the prolonged high dollar in both New Zealand and Australia has been pressuring competitiveness in the global market, resulting in substitution and weaker export demand for sheepmeat, the Rabobank report says.
China, the report says, is a good example of the emerging market demand for sheepmeat.

Mr Costello says China became the largest single sheepmeat export market for New Zealand in 2012, surpassing the UK for the first time ever. Furthermore, China is now Australia’s largest sheepmeat export destination. Media Release June 3, 2013 3
“The emergence of China has seen a much greater utilisation of the whole carcass as demand has grown for items that were once rendered or offloaded at a discount and sheepmeat demand is expected to grow as affluence continues to increase,” Mr Costello says.

Utilisation of the whole carcass helps returns.

If only we could persuade the Chinese to embrace wool as well . . .

Meat impasse caused by paper work mistake

The impasse over New Zealand meat on Chinese wharves has been resolved.

A resolution has been agreed which should see authorities clearing New Zealand meat exports to China from next week, Primary Industries Minister Nathan Guy has announced.

“Chinese authorities have agreed they will begin releasing consignments under the name of the New Zealand Food Safety Authority.

“Officials are working around the clock to reissue certificates for all the meat consignments that are held up at ports or on the water.

“This is positive news for farmers and exporters after what has been a frustrating time.

“The Ministry for Primary Industries have now released information on how and why this delay occurred. It provided certification in a format which AQSIQ had not yet approved, and in doing so caused confusion for Chinese inspectors.

“I am very disappointed in the Ministry for Primary Industries for its mistakes in certification which have caused this delay.

“Accurately certifying exports of New Zealand agricultural goods is a core function for the Ministry and this mistake should never have occurred. Officials have a responsibility to meat exporters and to all New Zealanders to get the basic details right. . .

What all this polite language means is there was a stuff-up with the paper work.

“I am grateful to the Chinese authorities for their willingness to work constructively with New Zealand officials to find a way through this administrative error. I am also grateful to the New Zealand meat industry for their patience.

“At the moment our number one priority is ensuring the product gets off the wharf and onto the plates of Chinese consumers as quickly as possible.

“MPI officials have also let themselves down in two further ways: by not informing Ministers of the scale and seriousness of this issue early enough, and in being too slow to provide information on exactly why this problem occurred.

“The Director-General of MPI first informed Food Safety Minister Nikki Kaye and I of this issue on Tuesday 14 May. However, the size of this issue was not made clear until I began receiving calls from the meat industry on Friday 17 May.

“After making my own inquiries it became apparent the issue was bigger than what officials had been telling me so I called the officials in for an explanation on Saturday morning.

“I’m disappointed it has taken so long to get to the bottom of this problem and for the Ministry to come up with a proper explanation. This has been frustrating for myself, the public and meat exporters.

“Overall we have a strong system and a mistake like this is highly unusual. I have given the Director-General of MPI clear instructions to ensure this does not happen again,” says Mr Guy.

When there’s a stuff-up it’s important to sort it out, find out why it happened and do everything possible to ensure it doesn’t happen again.

Different country, different ways

New Zealand has a well deserved reputation for the safety and quality of its primary produce and its lack of corruption.

China’s reputation for both is somewhat less desirable.

But no-one is suggesting the hold-up of our meat at China’s border is due to either safety concerns or corruption.

Whatever the cause, Minister for Primary Industries Nathan Guy said sorting out the problem is MPI’s top priority.

“New Zealand officials have worked around the clock to provide additional technical information to Chinese authorities over the weekend.

“This information will be given to AQSIQ, the Chinese organisation responsible for border clearances. This will enable them to pass it on to port authorities, a process which may take some days.

“New Zealand officials are also talking with their counterparts in China today to see what, if any, further information or support is needed.

“Overall trade to China is still flowing well and this issue appears confined to some shipments of meat.

“Most product is frozen and is being properly stored, while priority for clearance is being given to chilled meat.

“The Ministry for Primary Industries is also keeping in close contact with the meat industry and updating them on a daily basis.

“New Zealand is a trading nation and from time to time these kind of technical delays will occur. This is a temporary issue, but we’re confident it can be resolved,” says Mr Guy.

There is no convenient time for such a hold-up but this is another blow in what has been a particularly difficult season for sheep farmers.

“On top of the drought and the meat schedules this is causing concern amongst sheep and beef farmers,” says Bruce Wills, Federated Farmers President and its trade spokesperson.

“It is reassuring to see Minister Nathan Guy confirm that its speedy resolution is the Ministry for Primary Industries number one priority.

“Sheep and beef farmers will be affected one way or another as suppliers or shareholders. A number of the exporters involved in the delay are cooperatives. This means any financial impact ultimately falls back upon the farmers who cooperatively own them.

“What I can say is that New Zealand’s farmers truly value the Chinese market for our lamb.

“We want to build a much closer relationship with Chinese consumers and our Chinese farming counterparts too. It is about establishing a true-two way relationship and we hope these messages can be conveyed to the right authorities.

 “I know our farmers will want a speedy resolution to any confusion around export certificates. Farmers genuinely appreciate the hard work being put in by our embassy staff in China and that of the Chinese Government.

“We must now urgently resolve this matter to the satisfaction of the Chinese authorities. Comment must be responsible and informed by fact because speculation could do New Zealand damage in a vital market,” Mr Wills concluded.

China is a very important trading partner but doing business there is not like doing business here.

It’s a different country with a very different culture and different ways of doing business.

What works here will not necessarily work there and we will have to learn to adapt to that.

Last Shepherd

Roger Buchanan begins Last Shepherd at the end with a brief summary of the wool industry’s recent history.

He then goes back in time, setting the scene for his life-long interest in wool from his childhood on the family farm, Aratika, 16 kilometres from Fielding. He traverses his school days and career and ends back where he began looking at the industry today and where it might go.

Buchanan began his working life with a wool merchant and tutored at Massey  before his career took him to various statutory organisations. He was the Wool Board’s final chief executive and oversaw its winding down.

The book combines history, analysis, marketing, trade, policy  and politics with  personal anecdotes to give a comprehensive story of the wool industry, the people  involved in it and the challenges they faced.

Not all of the latter were business ones. The book includes tales of travel misadventures, attempted bribery and unusual culinary encounters.

The Last Shepherd will be of most interest to farmers and others who are, or have been, involved in the industry. The politics, marketing, travel and trade tales could appeal to a wider readership.

Last Shepherd: Anecdotes and observations from five decades in the wool industry by Roger Buchanan.

Published by Mahico.

Paperback 312 pages, $45.

Links for ebooks at Last Shepherd.

Milk price down 2.1% in GDT auction

The trade weighted index was down 2.1% in this morning’s GlobalDairyTrade auction.

This was the second drop in a row after nine consecutive increases.

Prices were still well above the long term average.

 

The price of anhydrous milk fat was down.2%; butter dropped 12.4%; butter milk powder fell 5.1%;  rennet casein increased 3.7%; skim milk powder was down 2.8% and whole milk powder was down 1.7%.

 

 

GDT TWI drops 7.3%

The trade weighted price of milk in this morning’s GlobalDairyTrade auction dropped 7.3%.

The price is still well above the long term average.

 

The price of anhydrous milk fat dropped 5.2%; butter was down 6.7%; butter milk powder was down 3.3%; cheddar was down 3.4%; rennet casein was down 3.1%; skim milk powder fell 9.5%; and whole milk powder dropped 10.2%.

 

Rural round-up

NZ Super Fund sells forestry blocks to Chines, local investors - Paul McBeth:

The New Zealand Superannuation Fund, which today said the value of its portfolio topped $22 billion, has sold the bulk of 11 forestry blocks in the North Island to China National Forest Products Trading Corp for an undisclosed sum, with the remaining going to local investors.

The Chinese company, a subsidiary of state-owned China Forestry Group Corp, bought the majority of the portfolio, subject to Chinese regulatory approval, after getting the thumbs up from New Zealand’s Overseas Investment Office, the super fund said in a statement.

The Cullen Fund, so-called for its architect former Finance Minister Michael Cullen, was looking for a buyer for the blocks last year, when it valued the estates at some $91.1 million as at June 30. General manager investments Matt Whineray said the sale would let the fund focus on other domestic and international investment opportunities. . . 

Pivotal time for central farms - Mark Price:

Dozens of centre-pivot irrigation machines installed in the past couple of years are turning the dry plains of Central Otago into lush meadows. But, as Mark Price reports, this is just the beginning.

One farm on the flat near Tarras installed four irrigation pivots over the summer.

Another, on terraces above Tarras, installed eight or nine.

And, when the Tarras water scheme goes ahead there will be room for another 80 to 90 in that area alone.

In the world of irrigation, pivots are the state-of-the-art way of growing crops to feed dairy cows. . .

Maori land bursting with farm potential -Ben Dalton:

Primary industries generate over 70 per cent of New Zealand’s merchandise exports.

You’d be forgiven then for thinking that every last hectare of rural land is producing at its maximum. But you’d be wrong.

It has been known for some time that a significant proportion of Maori land is not delivering its potential.

A 2011 Ministry of Agriculture and Forestry report estimated that close to one million hectares were under-productive.

Now, a report commissioned by the Ministry of Primary Industries has allowed a glimpse of what’s at stake in bringing this land into full production – for Maori, the primary industries, and the country. . .

Quest for semi-rural playground – Alison Rudd:

The organisation which runs most of Southland’s kindergartens wants to buy a back yard for urban children who have no access to a semi-rural playground.

Kindergarten South wants a 1ha block close to Invercargill with trees, native bush and perhaps a stream. It will be a place where the 3 and 4-year-olds can ”get back to good old-fashioned play”, business development manager Sandra King said.

”It’s somewhere where they can climb trees, dig worms, puddle in water, draw pictures on the ground using sticks, learn to take a bit of a risk.”. . .

Delegat’s buys Australia’s Barossa Valley Estate assets out of receivership for A$24.7M - Paul McBeth:

Delegat’s Group has bought the assets of Australia’s Barossa Valley Estate out of receivership for A$24.7 million, just two months after snapping up the distressed vineyard and winery assets of Matariki Wines and Stony Bay Wines.

The Auckland-based winemaker, whose stable includes the Oyster Bay brand, will acquire a 5,000 tonne winery, a 41 hectare vineyard in the Barossa Valley, grape grower contracts and inventory and brands, it said in a statement. The deal is expected to settle in June, and will be funded through existing bank facilities. . .

Gunn Estate Ups the Ante With Reserve Range:

Hawke’s Bay’s popular Gunn Estate has just launched a range of Reserve wines, adding to the long history of the brand.

The 2012 Reserve range includes Sauvignon Blanc, Pinot Gris, Pinot Noir and Merlot/Cabernet varieties, made with grapes from specially selected vineyards in Hawke’s Bay and Marlborough.

Gunn Estate spokesman Denis Gunn says the new range represents the brand’s strong tradition.

“The Gunn Family has worked the land in Hawke’s Bay since 1920 and these wines are about keeping the passion and determination of three generations alive and well,” Mr Gunn says.

Grosser misses WTO job

Trade Minister Tim Groser is out of contention for the Director General of the World Trade Organisation.

Only two candidates, Mexico’s Herminio Blanco and Brazil’s Roberto Azevedo, remain in the running to replace outgoing Director General Pascal Lamy after two of three election rounds, Reuters reports.

Groser was well qualified for the position and a determined advocate for free trade.

He will continue to put his talents into working for New Zealand’s interests in trade.

Rural round-up

World record for Canterbury merino farmer – Tim Cronshaw:

Canterbury merino farmer Anna Emmerson has beaten the Australians at their own game by winning the Loro Piana Challenge Cup in Hong Kong with a world record bale of the finest merino wool.

She broke her own record of 10.9 microns set in 2010 with an ultra-fine bale in the competition held in Paris.

In the past, winning bales have made around $200,000, paid by the family owned clothing and fabric maker Loro Piana, led by Italian brothers Pier Luigi Loro Piana and Sergio Loro Piana.

The business does not disclose the amount paid other than that a premium was offered above its market value if it breaks a record. . .

First Australian for Kellogg leaders’ programme:

Lincoln University’s Kellogg Rural Leaders Programme has extended its welcome, with the course accepting its first Australian participant this year.

 The programme has welcomed Mary Johnson as the first Australian to join the course and also the youngest applicant in its 34-year history.

“I found out about the programme through my line of work at Cattle Council Australia and then through the Australian Beef Industry Foundation,” says Johnson.
“I did some of my own research and found that the Kellogg programme is all over the world, so I jumped at the opportunity.” . .

Partnership offers promise of profit – Tim Cronshaw:

Meat companies cannot afford to suffer more financial losses after losing $200 million last season, and farmers must commit stock to one company to ensure a healthy red- meat industry, says Lincoln University agribusiness professor Keith Woodford.

He told 600 farmers at a Christchurch meeting of the new Meat Industry Excellence (MIE) group on Wednesday that they had to work in partnership with the rest of the industry, because the combative approach was not working.

A sustainable industry, in which everyone made money, was the end game, he said. This would be challenging and require some restructuring. . .

Australians push for Korean FTA:

AUSTRALIAN BEEF farmers are pushing the Gillard Government to restart free trade agreement talks with South Korea. Industry leaders visited Seoul this month seeking to resume talks with the South Koreans.

The National Farmers Union says Australian beef producers stand to miss out on A$1.4 billion in exports to Korea unless a FTA is in place soon. It says the threat to other exports like wheat (A$350 million) and dairy (A$100 million) is also high.

FTA talks between Australia and South Korea stalled after the Australian cabinet banned even starting talks which require settling any type of investor-state dispute (allowing companies unhappy with their treatment in another country to seek arbitration in an agreed third jurisdiction). . .

Farmer protests fail to sway government -

Protest meetings in Victoria and South Australia, further planned demonstrations and a direct meeting have all left Federal Agriculture Minister Joe Ludwig unmoved.

Farmer Power representatives met with Minister Ludwig last month at a meeting hosted by the Victorian Farmers Federation. The United Dairy Farmers of Victoria also attended.

The group asked for cash assistance to help farmers address cash flow problems. . .

Southern Clams Plans to Diversify with Bluff Oysters in Otago Harbour:

Within twelve months, Dunedin restaurants, could be serving live oysters on the shell straight from Otago Harbour. The plan is the brainchild of Southern Clams who have identified a unique opportunity to diversify their shellfish operations by utilising the certified growing waters of Otago Harbour.

In a consent application to the Otago Regional Council, tabled today, Southern Clams is proposing to take two year old oysters, which have been farmed by New Zealand’s Bluff Oyster Company (NZBO) in Bluff Harbour, and re-lay them in Otago Harbour for up to four weeks, until they meet statutory regulations for commercial harvest. . .

WFO backs break-through trade policy

The World Farmers Organisation has backed a break-through trade policy:

“While we haven’t agreed with 100 percent of everything in this WFO trade policy, the policy is a major pro-trade breakthrough and a huge step in the right direction,” says Bruce Wills, Federated Farmers President, speaking from Japan where the WFO is meeting.

“Getting 50 countries to agree a policy is challenging and you do not get perfect outcomes, however all recognised the need to free up the trade of food to meet the needs of a growing global population has been grasped by the world’s leading farmer organisations.

“The WFO’s guiding principles commit the WFO to the parallel elimination of all forms of export subsidies and disciplines on all export measures with equivalent effect. It all boils down to improved market access.

“The WFO also wants a substantial reduction in trade-distorting domestic support but with special and differential treatment for developing countries and the least developed.

“The feeling from the WFO is that strengthened rules should apply to export prohibition/restriction and export taxes too.

“Proper protection of geographical indications as provided for under the WTO agreement on trade in intellectual property and recognition of country-of-origin requirements that allows countries to distinguish their products without distorting trade is also important.

“The WFO strongly supports the World Trade Organisation and believes that multilateral negotiations leading to a comprehensive trade agreement is the best way to pursue these objectives.

“That said bilateral and regional trade agreements, like the Trans Pacific Partnership, also work. So long, I should say, that they contribute towards these objectives in a WTO compatible way respecting the WFO’s Guiding Principles.

“Farmers everywhere need a fair, transparent and predictable trading environment but international trade itself needs to be guided by some fundamental principles and the WFO has taken a huge stride forward by the adoption of this trade policy” Mr Wills concluded.

New Zealand farmers have been unsubsidised since the 1980s.

We’re stronger for it and the New Zealand taxpayer is better for it.

Our customers also benefit because we have to produce what the market wants at competitive prices.

GDT price up .6%

The trade weighted index went up .6% in this morning’s GlobalDdairyTrade auction.

This is the ninth increase in a row and follows two big increases.

 

The price of anhydrous milk fat increased 5.9%; butter went up 6.8%; butter milk powder rose 1.3%; cheddar increased 3.4%; rennet casein was up by 7.2%; skim milk powder dropped 3.2%; and whole milk powder increased 2.4%.

 

Rural round-up

Planning: our rural romance mustn’t stop us building homes:

This evening many of us may find escape by watching the first of 42 hours of the BBC’s chronicle of 100 years of rural life, The Village, set in the lushly dramatic countryside of Edale and Hayfield in the Peak District.

A few of us – 165,095, in England and Wales, to be precise – might be doing so in the comfort of a second home, deep in the heart of Cornwall, perhaps, facing rolling green fields with not another dwelling in sight.

Yet, whatever the romantic view of our green and pleasant land, in fact and fiction, in our towns and cities, an all too real crisis of space and homes is already upon us.

As rents rise, mortgages are elusive and home ownership for increasing numbers of young people becomes a distant dream, the refusal to concede so much as an inch of greenfield terrain by organisations such as the National Trust appears less and less reasonable. . .

Focus on rural crime – Jill Galloway:

In a first, crime prevention advocate Crimestoppers is launching a campaign aimed at giving rural communities greater confidence to speak up about suspicious or criminal activity.

It is called “Shut the gate on rural crime”, and is supported by New Zealand rural insurer FMG and New Zealand Post.

Chief executive of Crimestoppers Jude Mannion said there were about 50 calls a day from all around New Zealand – urban and rural areas.

“Things like stock theft are now more professional and organised than they were. And in rural areas there are fewer people and that brings a problem of isolation.” . .

City docs ‘go rural’:

HEALTH Minister Lawrence Springborg’s plan to turn Beaudesert Hospital into a training facility for rural doctors has been given a positive prognosis from young city GPs keen on taking their much-needed medical skills bush.

The urban based doctors were recently at the South East Queensland medical facility for a ‘Go Rural Queensland – a day in the life of a rural doctor’ workshop run by Health Workforce Queensland.

While Beaudesert might only be a one-hour’s drive from Brisbane, the town’s medical services still operate in a rural context that would appear foreign to how services are delivered in the city, according to Health Workforce Queensland CEO Chris Mitchell. . .

Feed dispenser takes top award – Gerald Piddock:

A dispenser that provides dairy cattle with a daily dose of mineral supplements has taken top honours at the South Island Field Days innovation awards.

Called the Conedose, the machine dispenses molasses mixed with mineral supplements to cattle in the dairy shed.

It was designed by Southland-based company Winton Stock Feed and won the class one New Zealand-made farm machinery award at the South Island Field Days at Lincoln.

The Conedose dispensed non-soluble minerals, which other feeders could not do, Winton Stock Feed operations manager Paul Jackson said. . .

Mesh covers could beat TPP – Gerald Piddock:

A simple mesh cover could be the answer to halting one of the country’s most devastating tomato and potato pests.

The covers are being trialled at the Lincoln University Future Farming Centre to see if they stop the tomato potato psyllid (TPP) from invading the plants.

The results so far look extremely promising despite the trials being in their first season, centre head Charles Merfield says. . .

Beef, Lamb & Chelsea: A Recipe For Success:

In an exciting new partnership, Beef + Lamb New Zealand has today announced a partnership with Chelsea Winter, winner of Master Chef New Zealand 2012.

Winter’s recipes will be gracing butchery shelves and supermarket in abundance from this month.

Winter is joining the team as the face of mEAT magazine, Beef + Lamb New Zealand’s free, quarterly guide to beef and lamb.

“This is a really exciting partnership and we have had so much fun developing fresh new recipes to complement the new-look mEAT magazine, which I am sure readers are going to love,” says Winter. . .

Richie Mccaw Visits Fonterra’s Sri Lanka Operations:

Fonterra’s global ambassador Richie McCaw has gained an up-close view of Fonterra in Sri Lanka last week during a two day tour of the Co-operative’s operations in the country.

McCaw said it was great to see first hand how Fonterra was growing its business in the region.

“It’s my first time in Sri Lanka and it made me realise how big Fonterra and Anchor are in the region. You drive through Colombo and see Anchor signs everywhere – it’s amazing that Sri Lankan kids are drinking the same milk that I grew up on in Canterbury.

“You sometimes forget that Fonterra’s got such a global reach. The kids and farmers that I met during the trip all told me that Fonterra and Anchor are a big part of their lives – not only because of the products Fonterra supplies but because the Co-op has become part of the community over the last 35 years,” said McCaw. . .

From here via Campaign for Wool we have tartan sheep:

Price up volume down in GDT auction

The trade weighted index increased 14.2% in Fonterra’s latest GlobalDairyTrade auction, however the volume sold dropped.

 

 

 

The price of anhydrous milk fat increased 6%; butter was down 2.7; butter milk was up .8%; cheddar increased 6.6%; rennet casein was up 4.4%; skim milk powder increased 27.8% and whole milk powder rose 7%.

Fonterra announced an increase in the farm milk price and dividend last week however, supply is lower because of the drought.

Anhydrous Milk Fat
Butter	n.a.	-2.4%	-2.6%	-3.9%	n.a.	n.a.	-2.7%
Butter Milk Powder (BMP)	n.a.	0.8%	n.a.	n.a.	n.a.	n.a.	0.8%
Cheddar (Ched)	n.a.	4.4%	10.3%	n.a.	n.a.	n.a.	6.6%
Lactose (LAC)	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
Milk Protein Concentrate (MPC70)	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
Rennet Casein (RenCas)	n.a.	4.4%	n.a.	n.a.	n.a.	n.a.	4.4%
Skim Milk Powder (SMP)	10.0%	24.5%	37.3%	27.8%	33.4%	42.3%	27.8%
Whole Milk Powder (WMP)	n.a.	12.8%	10.7%	18.6%	-7.9%	7.7%	7.0%
All Products (Trade-Weighted)	10.0%	16.0%	19.3%	21.6%	8.4%	21.8%	14.2%

US dairy farmers fear free trade

The prospect of free trade is worrying United States dairy producers.

Organisations representing rural America are urging the US government not to give Fonterra more access to their domestic dairy market – saying its unfair market power has the potential to seriously damage American livelihoods.

Eleven groups representing US dairy farmers and rural communities have written to the Senate finance committee arguing that the Trans-Pacifc Partnership (TPP) free-trade agreement currently being negotiated threatens their dairy sector. . .

Farmers here were equally concerned when we lost subsidies and protection. But that was nearly three decades ago and I don’t know anyone who would want to go back to those bad old days.

US dairy farmers are a powerful lobby and their concern is understandable.

But there will be a lot more consumers who will benefit from the greater choice and lower prices that free trade will provide.

Dairy prices up 14.8%

The trade weighted price of milk increased 14.8% in this morning’s GlobalDairyTrade auction.

This is the seventh increase in a row.

The price of anhydrous milk fat rose 16.3%; butter milk powder increased 8.6%; butter 11.5%; cheddar was up 13.7%; rennet casein gained 3.1% and skim milk powder rose 7.7%.

The price of whole milk powder gained 21.2%.

Whole milk is the main determinant for the payout.

Various pundits have suggested the payout will increase but it is very late in the season and volume is reduced because of the drought so I think the forecast payout is likely to remain unchanged.