Rural round-up

New Lincoln Hub plans unveiled:

Science and Innovation Minister Steven Joyce and Primary Industries Minister Nathan Guy have today unveiled concept plans for a world-class agricultural research and education facility to be sited at Lincoln, near Christchurch.

The Lincoln Hub concept plans and business proposal have been developed by a partnership of Lincoln University, DairyNZ and Crown Research Institutes (CRIs) AgResearch, Plant & Food Research, and Landcare Research.

“The Lincoln Hub has the potential to transform New Zealand’s farming productivity by providing a one-stop shop allowing information and ideas to be shared more easily,” Mr Joyce says. “Internationally, science and innovation parks that collect together public and private organisations in one place drive a lot of education, science and innovation. The Lincoln Hub can achieve this for New Zealand farming.” . .

AgResearch capitalises its strengths to boost science:

A mammoth $100 million investment in AgResearch’s core science resource will help boost its potential to support exports from the primary industries in reaching $60 billion by 2025, on current policy settings.

“It is no secret that some of AgResearch’s physical scientific infrastructure is getting a bit creaky,” says Dr William Rolleston, Federated Farmers Vice-President.

“It was a genuine pleasure to be at the unveiling of an impressive roadmap that will also see the “hubbing” of primary research capabilities at and with Lincoln University. . .

Meat Industry excellence Group campaign warms up - Allan Barber:

The MIE organised farmer meeting in Feilding on Friday was attended by about 700 farmers which one speaker from the floor compared unfavourably with 2000 at the Drought Shout. However there is obviously an increasing level of support for substantial change to the meat industry’s operating method which results in volatile market returns.

Alliance and Silver Fern Farms were both represented and the respective chairmen, Owen Poole and EoinGarden, spoke in support of the group’s aims. Poole told the meeting the industry was working constructively to develop an improved model which was simpler than MIE’s plan and it was important to ensure the two plans were complementary. . .

MPI’s loss is LIC’s gain but Primary still comes out on top:

The resignation of Wayne McNee, Ministry for Primary Industries Director-General, to take up the position of Chief Executive at Livestock Improvement Corporation (LIC), will still see this talented person working in and for New Zealand’s primary industries.

“This role shows the versatility of Wayne who has performed to a very high standard with the public service and now departs for a high profile leadership role in a company important to New Zealand agriculture,” says Bruce Wills, President of Federated Farmers.

“Wayne has put the Ministry on the right path for farmers following the merger of the old MAF with the Ministry of Fisheries. I feel disappointed in one regard because he leaves it, just when we are starting to see the fruits of his work appear in this new and dynamic Ministry. . .

Budget 2012; support for frontline conservation work:

An additional $20 million over four years has been allocated to the Department of Conservation in Budget 2013 to provide for additional frontline roles and the upgrade of recreational facilities, Conservation Minister Nick Smith announced today.

“The four year funding package complements the Government’s recently announced tourism investment. It recognises that DOC is the Government’s primary agency responsible for providing infrastructure, visitor services and nature-based experiences that support the tourism industry,” Dr Smith says. . .

Innovative Dairy Companies Form Partnership to Boost Exports:

Two of New Zealand’s most innovative dairy companies are forming a partnership to boost exports to one of the world’s fastest growing consumer markets.

Synlait Milk will next month despatch the first consignment of a2® Platinum™ infant formula destined for mothers and infants in China. a2 milk™ contains only the A2 version of the beta casein protein which is more comparable to protein that mothers naturally produce than other versions of the beta casein protein found in standard milk.

Synlait Milk will be processing a2 milk™ from 10 suppliers from August this year and will further expand production to meet the requirements of A2 Corporation when a2® Platinum™ infant formula becomes available to mothers in New Zealand and Australia later this year. . .

Brancott Estate Celebrates the End of a “Sensational” Vintage:

Vineyard beats the weather to harvest pristine, flavoursome fruit

Early predictions of an outstanding vintage have proven true for Brancott Estate, the pioneers of the original Marlborough Sauvignon Blanc, who have successfully completed harvest ahead of autumn rain, and with fruit that bears all the characteristics of the region.

“The season has been so dry until now and this has delivered a sensational vintage for Marlborough” says Patrick Materman, Chief Winemaker for Brancott Estate. “While we’ve enjoyed the sunshine, it hasn’t been a particularly warm season, tracking around the long-term average in terms of Growing Degree Days. This, combined with the lack of rain, is a real positive for vineyards. The dry conditions mean pristine fruit development and allow us to make harvest decisions based on optimal flavour development, while the relatively cool temperatures ensure the aromatic expression and balance of natural acidity that has made Marlborough famous.” . .

Rural round-up

Drought breaking rain sparks race to prepare for winter:

Farmers are rejoicing that the drought breaking rain finally arrived, but hope winter can hold off for a few more weeks to maximise pasture growth and better insure their feed supplies until spring.

“We have heard from nearly all our provincial presidents that the rain has broken the drought in their areas and that grass is growing again,” Federated Farmers adverse events spokesperson Katie Milne says.

“Some areas had a bit too much rain, while others are still a bit dry, but overall the rain brought by last weekend’s subtropical trough was exactly what was needed, with grass growth returning to many areas. . .

Drought status likely to remain until September:

Recent rainfall has been welcomed by farmers but the problems created by the dry summer will be felt for some time, says Minister for Primary Industries Nathan Guy.

“The dry conditions may have ended in many parts of the country but there are still major challenges ahead. It will take time to build up enough grass cover to provide feed for winter.

“There’s no doubt the rain over the last week has been a real boost, especially for those in areas that have missed out before like the central North Island. . .

Prime Minister Attends Blessing for New Fonterra Plant:

Construction of Fonterra’s new $126 million UHT milk processing plant in Waitoa today took another step forward with the site’s blessing attended by Prime Minister John Key.

Fonterra’s Chief Executive Theo Spierings said the plant, which will be running from April 2014, will enable Fonterra to increase UHT production by 100 per cent over the next few years.

“The five new UHT lines will produce a range of products including UHT white milk and UHT cream for the foodservice sector, which is a part of our business that generates more than $1 billion in sales a year and this plant will allow us to meet the growing demand in Asia for these products,” said Mr Spierings. . .

New A2 formula ready for China – Christopher Adams:

NZX-listed alternative milk company A2 Corporation says the first consignment of its new infant formula brand will be shipped to the lucrative Chinese market next month, followed by distribution in New Zealand and Australian supermarkets soon after.

The company has appointed the China State Farms Holding Company Shanghai, a subsidiary of state-owned China National Agriculture Development Group Corp, as the exclusive Chinese distributor of its Platinum formula brand.

The formula will initially be sold in Beijing, Shanghai, Guangzhou, Tianjin and Chongqing before sales are progressively expanded to other major cities in mainland China, as well as Hong Kong and Macau, A2 says. . .

Outdoor workers shun sun protection- Tamara McLean:

The sun protection slogan Slip, Slop, Slap and Wrap is being dangerously ignored by two thirds of Kiwis working in the great outdoors, with farmers and builders among the worst culprits.

A University of Otago study of more than 1000 workers across nine outdoor occupations has revealed that sun smart messages are not getting through to those who spend their lives working outside.

Just one in three outdoor workers wear sunblock or a suitably protective hat while at work, despite being more at risk of sun damage than other people. . .

Last of founding vineyard empire goes on the market for sale:

A large landholding of what was once the family-owned and operated Nobilo wine empire west of Auckland has been placed on the market for sale.
The 7.49 hectare property bordering the township of Kumeu was once planted in white and red grapes, and was part of the huge landholding created by New Zealand wine legend Nikola ‘Nick’ Nobilo.

Nick Nobilo was born in Croatia and emigrated to New Zealand with his family in 1937 to settle in Kumeu. Nobilo came from a winemaking family which had been producing vintages for some 300 years. . .

Locally bred Habibi sold after winning 6th consecutive race:

New Zealand Derby winner Habibi has been sold to a United States buyer.

A winner of six of her nine races, Habibi was sold to Pennsylvania buyer George Strawbridge after finishing fourth in unsuitably heavy conditions in the Australian Oaks at Randwick last Saturday.

Her owner-breeders Peter and Heather Crofskey will keep a minority share in the filly for the rest of her racing career. . .

Gibbston Valley mountain bike resort soft opening:

Queenstown’s new Rabbit Ridge Bike Resort will have a ‘soft’ opening on April 27 with riding available on some of the newly constructed trails. Rider numbers are limited to invitation only to reduce traffic and enable trails to bed in.

Invited local bikers, bike shop owners and front line staff will get to try out the new trails for the first time this weekend (April 27/28) at the new bike ‘playground’ on 400 hectares of land adjacent to Queenstown’s award-winning Gibbston Valley Winery.

Locals eagerly anticipating the opening of the new resort will then be able to ride the trails on Free Locals Days scheduled for the first Saturday of every month, starting May 4. . .

Rural round-up

Fonterra Announces Plan To Support And Grow Milk Supply:

Fonterra announced today a five-point plan to give farmer shareholders more flexibility in managing their farm businesses in order to support and grow milk production to support the Co-operative’s growth strategy.

The plan includes:
1. A bonus issue of one additional share or unit for every 40 held on 12 April 2013.
2. A further Supply Offer enabling Fonterra shareholders to sell the economic rights of some of their shares into the Fonterra Shareholders’ Fund[1].
3. A Dividend Reinvestment plan enabling shareholders and unit holders to elect to receive dividends in the form of shares or units.
4. Flexible contracts to give new and growing farmers more time and options to fully back their milk production with Fonterra shares.
5. New opportunities for winter milk supply contracts in the upper North Island to fuel Fonterra’s new UHT plant at Waitoa. . .

Fonterra To Develop UHT Plant At Waitoa:

Fonterra today announced it will be investing more than $100 million in a new UHT milk processing plant at its Waitoa site in the Waikato.

Fonterra Chief Executive Officer Theo Spierings said the new plant would enable the co-operative to meet growing demand for UHT products in Asia.

“The new plant will enable us to increase our UHT production by 100 per cent over the next few years. The plant will include five new UHT lines that will produce a range of products including UHT white milk and UHT cream for the foodservice sector. . .

Federated Farmers awaits Commerce Commission examination of swaps:

Federated Farmers has asked the Commerce Commission to look into the selling of debt finance instruments known as ‘swaps’. This formal request was made last November.

“It is fair to say we have received a number of inquiries from members and even non-members regarding swaps,” says Bruce Wills, Federated Farmers President.

“As most of these instruments were sold to farmers between 2007 and 2009, the impact of the global financial crisis upon interest rates saw concerns really only arise after 2009. . .

Drought makes high New Zealand dollar unjustifiable:

With widespread dry conditions and the first adverse event declaration in Northland related to drought, Federated Farmers believes there is no justification for the high New Zealand dollar.

“It seems dairy production is not just falling but in some key areas is starting to crash,” says Bruce Wills, Federated Farmers President.

“DairyNZ confirms Northland’s February milk production is some 20 percent down year to date while in the Waikato, it is about 15 percent down. Speaking to Kevin Robinson, the vice-chair of Federated Farmers Dairy, milk production at his farm is down 15-20 percent and is falling daily. . .

PGG Wrightson lifts 1H profit by 55% onr etail, ag services, pays 2.2 cent dividend:

PGG Wrightson, the rural services company controlled by Singapore-based Agria, listed first-half profit by 55 percent on earning s growth from retail and Ag services, allowing it to declare a 2.2 cents a share interim dividend.

Profit rose to $4.8 million in the six months ended Dec. 31, from $3.1 million a year earlier, the company said in a statement. Revenue from continuing operations fell to $589 million from $694 million.

Wrightson sold its finance unit to Heartland New Zealand in August 2011 and booked a loss of $3.37 million in the first half of the 2012 that wasn’t repeated in the latest period. Revenue from discontinued operations fell to $1.5 million in the latest half from $13.6 million a year earlier. . .

A2 1H profit dented by UK JV, affirms FY earnings target of $11.2M -  Paul McBeth:

Feb. 27 (BusinessDesk) – A2 Corp, which markets milk products with a protein variant claimed to have health benefits, reported an 82 percent slide in first-half profit as the cost of setting up its UK joint venture eroded the bottom line. The shares gained 3.9 percent as it affirmed its annual earnings forecast.

Net profit dropped to $243,000, or 0.09 cents per share, in the six months ended Dec. 31 from $3.4 million, or 0.53 cents, a year earlier, the Sydney-based company said in a statement. That came from a $1.5 million loss on establishing its UK joint venture with Robert Wiseman Dairies, which only started selling product in October last year. . .

Primary Wool Cooperative announces dividend payment:

Primary Wool Cooperative announces that on February 19, 2013, the Directors approved the payment of a 10% dividend to members. This comes on top of the annual 3 cents per kilogram rebate and last year’s 5% dividend, meaning that over the past 3 years, rebates and dividends have totalled an impressive $1.1M. These rebates and dividends, along with significant funding of industry-good activities such as the Campaign for Wool, demonstrate some of the ways Primary Wool Cooperative is delivering real benefit to the industry.

This is more good news for Primary Wool Cooperative, with the Just ShornTM brand being successfully rolled out into over 480 carpet retailers across North America and Canada on February the 18th 2013. . .

Farmers say ‘yes’ to rural stores merger:

Farmer Shareholders in the rural supply co-ops Farmlands and CRT have agreed to merge the two Societies with a majority of Farmlands and CRT Shareholders voting in favour of merger in today’s second special vote.

It means an immediate bonus for Shareholders in both co-ops. A bonus share issue of $32 million shares is being made to shareholders to distribute the retained earnings and unallocated reserves of the two co-operatives prior to merging.

And the two companies will distribute more than $8 million in an interim bonus rebate to Shareholders. This relates to their trading with the two co-operatives over the period 1 July– 31 December 2012. The rebate will be paid in a 60/40 share/cash split. . .

MPI Tech Transfer Survey Supports Red Meat PGP:

The findings of a Ministry for Primary Industries survey of technology transfer to farmers is more evidence of why farmers should want the red meat primary growth partnership programme to go ahead, says Beef + Lamb New Zealand chairman Mike Petersen.

The MPI survey says technology transfer has enabled farmers and growers to become world leaders in primary production during three decades of significant structural change. But the sector could now do with a boost because there are too few professionals and they need to be better linked to provide a more integrated approach to sharing new knowledge and information.

“This initiative runs right through our PGP programme that is bringing together the major meat companies, two banks and an accounting firm in an unprecedented collaboration. . .

Rural round-up

Fonterra scotches speculation of US$450m Indian acquisition – Paul McBeth:

Fonterra Cooperative Group, the world’s biggest dairy exporter, has dismissed speculation the company is among potential bidders for India’s Tirumala Milk Products.

The New Zealand cooperative scotched a Times of India report naming it with French food conglomerate Danone as vying for a controlling stake in Hyderabad-based Tirumala, with a spokesman for the dairy exporter calling it “rubbish”. The US$450 million enterprise value figure reported would be material for Fonterra and would need to be disclosed, he said. . .

Water allocation and limit setting in a changing climate – Waiology:

Last week, the Land and Water Forum released its third and final report on water management in New Zealand. It is a substantial piece of collaborative work with 67 recommendations. Number 29 is that allocation limits be set by taking into account “any flow and water level fluctuations caused by seasonal or other climate variations”. While this primarily refers to natural variability, such as the Interdecadal Pacific Oscillation, it’s also important to consider climate change. And along the same lines, last year’s National Policy Statement for Freshwater Management stated the need to account for the “foreseeable impacts” of climate change.

This is an important issue, as climate change is expected to bring about a raft of changes to New Zealand’s freshwaters (more details on that soon). Among these changes are reductions or increases in the amount of water available for use. Also importantly, climate change makes assessments of future water resources less certain. . .

Fonterra shareholder fund pricing uncertainty leaves Morningstar cold – Paul McBeth:

Investors should steer of the Fonterra Shareholders’ Fund, which seeks to raise up to $525 million to reduce the dairy cooperative’s redemption risk, until the units start trading, according to Morningstar Research.

However, the units have too many pricing uncertainties in the bookbuild phase.

The research firm gives a ‘do not subscribe’ recommendation for the fund’s initial public offering, saying Fonterra Cooperative Group lacks pricing power over its dairy commodities, generates low returns compared to its multinational peers, and investors won’t know the price they are paying until after the bookbuild process is completed on Nov. 27. . .

A2 in talks with NZX about shifting to main board – Paul McBeth:

A2 Corp, which markets milk products with a protein variant claimed to have health benefits, is in talks with the New Zealand Stock Exchange about shifting its listing on the main board.

The company, currently listed on the alternative market, qualifies for listing on the NZX main board, and managing director Geoffrey Babidge says that is a more recognised market and can provide better transparency and investor protection, according to a presentation at today’s annual meeting.

“A move to the NZX main board may provide greater liquidity and increase access to capital,” Babidge said. “To this end, the company has commenced discussions with NZX regarding a move to the NZX main board.” . . .

Kiwifruit vines credited as carbon sinks:

Three years of research by a Bay of Plenty company has found that kiwifruit orchards store a significant quantity of organic carbon in the soil.

PlusGroup Research received funding from the former Ministry of Agriculture’s sustainability farming fund to do the research, which investigated soil samples from more than 120 kiwifruit orchards across different growing regions. . .

Beef + Lamb NZ director elections:

Nominations are being called for two farmer-elected positions on the Board of Beef + Lamb New Zealand.

The positions are for the Western North Island and Central South Island electorates.

Nominations must be submitted on the official form obtained from the Returning Officer, Warwick Lampp, free phone 0508 666 003. The nominations need to be received by 5 pm on 20 December 2012. . .

Better Look Over Your Shoulder – Fish & Game Warning To Poachers:

The latest camouflaged ‘poacher cams’ are proving their worth in the Rotorua lakes district – giving trout poachers even more reason to look over their shoulder.

That’s according to Eastern Region Fish & Game, which has released information on the number of offenders caught over the last three months.

Fish & Game Officer Anthony van Dorp says that over the past three months (ending November) they’ve dealt with 30 people for a variety of offences ranging from fishing without a licence and fishing closed waters – to serious poaching offences. . .

Celebrating 150 Years in the Valley of Gold & Cardrona Vintage Fair

The historical and picturesque township of Cardrona in the breathtaking Cardrona Valley turns 150 years Gold this year. To celebrate, the iconic Cardrona Hotel and the greater community are opening their doors, hearts and rabbit cookbook’s for a birthday bash guaranteed to delight all ages.

Saturday 8th December – 150 Years of Gold celebration

From the excitement of highly trained heading dogs competing in the Dog Trials to trying your hand at gold panning, the 150 Years of Gold celebrations are local-jam-packed with fun and fascinating events for everyone. . .

Rural round-up

The Ploughman’s Lunch - Quote Unquote:

Yesterday we attended the 57th New Zealand Ploughing Championships, held nearby. Thirty-seven farmers had come from as far afield (geddit?) as Temuka, Winton, Asburton and Gore to demonstrate their skill in the conventional (i.e. with a modern tractor), reverse, vintage and horse ploughing (shown above) categories. Judging ploughing is a serious business, requiring assessment of the opening split (10 points), crown (20), main bodywork (40), finish (20), ins and outs (10), general appearance (10) and straightness (20. . .

Last week the Farming Show celebrated its 18th birthday – Farming Show Blog:

It seems only like yesterday two young blokes from Gore took a huge punt by purchasing 4ZG, the first, and only Radio New Zealand station sold to private enterprise.

Even our landlord to be, a delightful old farmer by the name of Bert Horrell, thought we were mad. But once we’d convinced him of our conviction to see this through, he gave us his blessing and some advice I’ve never forgotten. You don’t regret the things you do, you regret the things you don’t do.

What started as a five minute rural segment on a fledgling private radio station way back in 1994, has today grown to a one hour programme broadcast nationwide on a national network. . .

NZ sheep milk heads to Indonesia:

The Prime Minister is in Indonesia pushing New Zealand’s trade links there,  which includes the export of sheep milk there.

Indonesia already has plenty of interest in New   Zealand – in buying our  farm land.

An Indonesian billionaire with close links to former President Suharto’s  family has taken a 50 per cent share in a Southland farming operation based in  Brydon, Winton, and Hedge Hope.

It is a seemingly typical Southland dairy farm, but a closer look shows they  are milking sheep – a flock of 15,000.

Southlander Keith Neylon came up with the idea, saying they produce better  milk than cows. . .

AFFCO and meatworkers both holding firm – Allan Barber:

Getting on for two months into the lock out interspersed with strikes, both sides in this struggle are holding firm. There was a brief moment of hope of some degree of resolution at last week’s mediation, but it appears that after some progress in the morning, it all went downhill in the afternoon with some suggestion the union representatives weren’t all in agreement about what they were after.

At present the meat workers who are union members are in the middle of a seven day strike (or five day depending on your definition of a week) until Friday. However AFFCO says more than half its workforce are on individual employment agreements which means it can continue operating at something close to three quarter capacity. . .

Dexters smallest. oldest UK cattle - Sally Rae:

It’s a long way from Turiwhati to Fairlie.   

 But Dexter cattle enthusiasts Richard and Angela Stevens made  the journey from their West Coast home with their two heifers, Silk and Viyella, to the 114th Mackenzie Highland  Show on Easter Monday.   

 The Dexter breed is the smallest and also one of the oldest types of British cattle. It was the feature breed in the beef  cattle section at the show. . .

A2 signs supply agreement with Synlait Milk:

A2 Corp, the NZAX-listed alternative milk company, has signed a supply agreement with Canterbury processor Synlait Milk as it seeks to launch its infant formula into Asian markets.

The deal will see Synlait Milk source A2 milk from accredited Canterbury suppliers, and manufacture A2 brand nutritional powders for A2 Corp to sell in international markets. With the supply agreement sealed, A2 Corp said it will press on with negotiations to enter into marketing and distribution partnerships. . .

Drive and passion earns upreme title in Otago:

An “enthusiastic and incredibly driven” couple has been named Supreme winners of the 2012 Otago Ballance Farm Environment Awards

Blair and Jane Smith run Newhaven Farms Ltd – a North Otago sheep, beef, forestry and dairy support operation that spans three family-owned properties totalling 1528ha.

Their win was announced at a special Ballance Farm Environment Awards (BFEA) ceremony on April 13. As well as the Supreme award, the Smiths also collected the Ballance Agri-Nutrients Nutrient Management Award, the Massey University Discovery Award, PGG Wrightson Land and Life Award and the Otago Regional Council Sustainable Resource Management Award. . .