Rural round-up

Foray into farming stories for children proves fruitful - Sally Rae:

When Lee Lamb could not find books about farming to read to her young son, she decided to do something about it.

Brought up on Grampians Station, near Lake Tekapo, Mrs Lamb now lives on a sheep and beef station in northern Southland with her husband Jamie and their two young sons Jack (5) and Thomas (3).

It was while living in Omarama that she first picked up a pen, having become frustrated by being unable to buy a book about farming for Jack – who was farming-mad. She sat down one day ”and gave it a go” but did not take it any further until after moving to Waikaia and following the birth of Thomas, when she had a bit more spare time. . .

Dairy Awards Winners Achieve Goals:

The 2013 Canterbury/North Otago Sharemilker/Equity Farmers of the Year, Morgan and Hayley Easton, are using their knowledge to achieve their farming goals.

“Both Hayley and I are well educated in fields supportive of an agribusiness career, which we think is important when running large-scale dairy farms today,” Morgan Easton says. “Large dairy farms are big businesses with significant turnover and numbers of people employed. We feel the knowledge gained from our education has undoubtedly helped us achieve our farming goals to date.”

The other major winners at the Canterbury/North Otago Dairy Industry Awards dinner held at Hotel Ashburton last night were Richard Pearse, the Farm Manager of the Year, and Adam Caldwell, the Dairy Trainee of the Year. Coincidentally Mr Pearse employs Mr Caldwell as an assistant on the Ashburton farm he manages. . .

Ferret trapping programme:

The Animal Health Board is taking advantage of the scavenging habits of ferrets to track bovine tuberculosis in western Southland.

There are only two cattle herds still under movement control in the region because of TB infection, compared with 56 herds in 1996.

TBFree Southland chairman Mike O’Brien said ferret trapping plays an important role in protecting cattle and deer herds from Tb-infected wild animals because they indicate whether the disease is present in other wildlife, especially possums, which can spread the disease to livestock. . .

Freshwater changes show promise – Environment Commissioner:

The Government’s proposed changes to freshwater management are much needed, but only if they are implemented properly says the Commissioner for the Environment, Dr Jan Wright.

Dr Wright submitted on the changes this afternoon, and says moves to improve water quality are welcome.

“It’s vital we make progress on water quality, and the proposed changes are a step in the right direction. . .

Last call for applications for leading farm business management programme:

Applications close at the end of this month for this year’s Rabobank Farm Managers Program, the region’s leading agricultural business management course for the next generation of farm leaders.

Now in its eighth year, the prestigious Rabobank program offers young farmers from across New Zealand and Australia, and a range of agricultural sectors, the opportunity to develop and enhance their business management skills.

Rabobank business programs manager Nerida Sweetapple says the Farm Managers Program is constantly evolving to reflect the changing challenges and opportunities in agriculture. . .

ANZCO’s published result confirms anticipated loss – but could have been worse - Allan Barber:

ANZCO’s financial result to the end of September 2012 was posted on the Companies’ Office website on Friday in compliance with the statutory requirement for private companies. ANZCO reported losses of $25.6 pre-tax and $19.2 million after tax. We now have the details for the big three meat companies which publish their results and, as anticipated, none makes pleasant reading – total pre-tax losses of $140.4 million and post-tax $102.2 million.

But after seeing the numbers from Alliance and Silver Fern Farms in December, it was possible ANZCO’s could have been quite a bit worse. That they weren’t appears to have been the combination of strength in beef and some good management decisions which mitigated the worst effects of a very difficult year. . .

Rural round-up

Food and beverage stars for NZ to hitch its wagon to – report – sticK:

There’s not that many reports you can sit down and study and go – uumm, interesting.

But Auckland-based Coriolis has done it (again), and their ‘Investors guide to emerging growth opportunities in NZ food and beverage exports’ is, and I don’t say this lightly, quite fascinating.

The company has deliberately taken its methodology and report-back from a (potential) investor’s point of view.

The simple objective was to find the next ‘wine’ – such as that fledgling industry existed 25 years ago.
Over 500 food & beverage items, based on export trade codes, were screened down to 25 candidates for stage II in-depth investigation. . . .

Strong Finish To Spring Selling Season:

Summary

• Farm sales increase 9.8 per cent compared to October
• Median $/ha price rose 11.9 percent compared to November 2011
• After noticeable period of absence first farm buyers active in Waikato and Taranaki
• Lifestyle property sales lift 24% compared to November 2011

Data released today by the Real Estate Institute of NZ (“REINZ”) shows there were 25 more farm sales (+9.8%) for the three months ended November 2012 than for the three months ended October 2012. Overall, there were 281 farm sales in the three months to end of November 2012, compared with 315 farm sales in the three months to November 2011, a decrease of 34 sales (-10.8%). 1,417 farms were sold in the year to November 2012, 23.4% more than were sold in the year to November 2011. . .

Cheese first made at least 7,500 years ago – Maria Cheng:

Little Miss Muffet could have been separating her curds and whey 7,500 years ago, according to a new study that finds the earliest solid evidence of cheese-making.

Scientists performed a chemical analysis on fragments from 34 pottery sieves discovered in Poland to determine their purpose. Until now, experts weren’t sure whether such sieves were used to make cheese, beer or honey.

Though there is no definitive test for cheese, Richard Evershed at the University of Bristol and colleagues found large amounts of fatty milk residue on the pottery shards compared to cooking or storage pots from the same sites. That suggests the sieves were specifically used to separate fat-rich curds from liquid whey in soured milk in a crude cheese-making process. . .

Debt is good under some circumstances – Allan Barber:

After my column last week about meat industry debt levels, Keith Cooper, CEO of Silver Fern Farms, took me to task for incorrectly reporting the situation with Silver Fern Farms’ debt facility.

I stated that these expired in September 2012 and therefore the company was operating on a temporary extension. The correct position was that the debt facility was originally negotiated for two years from September 2010 and consequently due to expire in September 2012. This remained the position at balance date in September 2011. However in the 2012 annual report, the facility was stated as expiring on 31 December 2012. . . .

Farmgate raw milk sales to continue:

Farm gate sales of raw milk will continue and the amount that can be purchased is likely to increase, Food Safety Minister Kate Wilkinson said today.

Farmers will also be exempt from the current requirement to have a costly Risk Management Programme for farm gate sales of raw milk and will instead need to adhere to certain animal health and hygiene requirements.

“The current Food Act allows people to buy only up to five litres of raw milk at the farm gate to drink themselves or give to their family,” Ms Wilkinson says.

Consultation carried out by the Ministry for Primary Industries (MPI) on possible changes to rules for raw drinking milk sales attracted nearly 1700 submissions. . .

ANZCO embarks on group-wide energy management programme:

One of New Zealand’s largest exporters is set to save more than $2 million a year and enhance its global reputation as a sustainable producer through a company-wide energy management programme.

EECA Business today announced it would support the initiative over two years to help ANZCO generate long-term energy savings in its New Zealand plants.

With annual sales of NZ $1.25 billion, ANZCO Foods Ltd processes and markets New Zealand beef and lamb products around the world. The firm employs over 3,000 staff world-wide and has 11 meat processing plants in New Zealand. . .

Feedback sought about regulation of dairy herd improvement

The Ministry for Primary Industries (MPI) is looking for feedback on the rules surrounding the New Zealand dairy herd improvement industry.

The New Zealand dairy industry has been a world leader in herd improvement, and its ability to trace the performance of the national herd – through the dairy core database – has been central to that success.

Studies have shown that genetic gains through dairy herd improvement have accounted for about two thirds of the sector’s productivity over the last decade. . . .

Rural round-up

Fifty Four Farmers Complete 2012 Environmental Leadership Programme:

Another group of farming leaders is ready to spread the sustainability message, following the successful conclusion of the 2012 Building Dairy Environment Leaders Forum in Southland.

An initiative of the New Zealand Farm Environment Trust and DairyNZ, the annual forum enhances leadership qualities by giving top dairy farmers access to leading environmental and business leaders.

The 2012 event was held in Invercargill from November 27 to 29.

Forum chairman and Putaruru dairy farmer Martin Bennett said the 54 farmers participating shared their thoughts on how the dairy industry shapes its response to sustainability challenges. . .

WRONZ leader proud of legacy :

Injecting funds into research, without eroding the capital remaining after the winding up of the Wool Board, is something retiring Wool Research Organisation of New Zealand chairman David Douglas is proud of.

The North Otago farmer, who is stepping down after eight years as a director and five years as chairman of WRONZ, is one of three farmer representatives on the industry body that oversees post-farm gate wool research.

Capital had been built up from $28 million to $32 million and all research funding commitments had been met, Mr Douglas said.

A key achievement during his term had been the formation of the Wool Consortium in 2010. . .

Collaborative approach vital – Sally Rae:

Farmers intuitively know which are their best and poorest-performing paddocks.

The Pasture Renewal Charitable Trust is encouraging them to do something about the difference, citing the potential to significantly increase farm-gate returns, improve animal health and allow greater flexibility in farming systems.

The trust, an independent entity working to increase the rate of pasture renewal in New Zealand, comprises 14 agribusiness companies who sponsor key activities. . .

Meat industry’s high debt levels must concern banks – Allan Barber:

The levels of debt carried by at least some of the major meat companies must be causing concern to the bank syndicates that are providing external working capital to fund their operations. In total the big three have bank debts of a minimum of nearly $750 million.

 Silver Fern Farms is operating on a three month extension to its bank facility which expired at the end of September, but reported current (expiring within 12 months) loans of $316.7 million at the end of its 2012 financial year. In its last published annual accounts to September 2011, ANZCO had current and non-current loans of $220 million which must surely have increased in the very challenging 2012 year. Lastly at the end of September Alliance had $331.8 million of assets and non-current loans of $196.1 million which are clearly not causing any immediate concern. . .

Glamming Up For The Competition

The competition is heating up for the 2013 Beef + Lamb New Zealand Golden Lamb Awards, aka the Glammies.

More than 100 entries from across the country will be competing next year for the Grand Champion title.

The competition, sponsored by Pfizer Animal Genetics, which aims to find New Zealand’s most tender and tasty lamb is entering its seventh year and sees farmers from across the country vying for the Grand Champion title. . .

And from the Peterson Farm Brothers who brought the world We’re Farming and We Grow it: (Hat tip: PM of NZ)

 

Rural round-up

Innovative Wellington Entrepreneurs Identify Massive New Wool Markets

A small Wellington company The Formary has a plan that will help China reduce its air pollution, while at the same time creating a potentially massive new market for New Zealand wool.

After China’s rice crop is harvested in the paddy fields, millions of tonnes of rice straw are burnt, causing massive air pollution, closing airports, shutting out the sun and creating health issues for millions of people. Working with Massey University in Wellington, The Formary has developed a rice-straw-wool fabric prototype that could lead to a multi-million dollar business.

The Formary is owned by Bernadette Casey of Wellington and Sally Shanks from Gisborne and the idea is an extension of another product they developed, when they identified the potential of using waste fibre from Starbuck’s vast amount of unwanted coffee sacks and blending it with New Zealand crossbred wool to create fabric they called WoJo®. . .

Government to assist kiwifruit growers:

A package of support measures is to be made available to North Island kiwifruit growers affected by the Psa-V vine disease, Primary Industries Minister David Carter announced today.

Mr Carter has declared Psa a medium-scale biosecurity event under the Government’s Primary Sector Recovery Policy, triggering further assistance for growers dealing with the impacts of the disease. 

“The Government has worked closely with kiwifruit industry representatives to ensure that this declaration is timed to give maximum possible benefit to growers,” says Mr Carter. . .

Help for Kiwifruit Growers as Psa-V Declared an Adverse Event:

New Zealand Kiwifruit Growers Incorporated (NZKGI) welcomes Government approval for a financial and recovery support package, for kiwifruit growers hit by the vine-killing disease Psa.

NZKGI President Neil Trebilco says the organisation has worked very closely with the Government, to firstly extend the coverage of existing adverse events recovery provisions to include incursions on pests and disease, and then get the Psa-V support package approved for kiwifruit growers.

“This will give some growers most affected by Psa a level of financial and welfare support to help them through the impact of this disaster.” . .

Equity raising and change of listing to the NZX Main Board

Today, A2 Corporation Limited (“A2C” or “the Company”) announces that it is undertaking an equity raising to provide additional funding to accelerate the global growth initiatives outlined in the recently announced strategic review.

The Company will issue NZ$20 million in new equity and the Company’s three largest shareholders have resolved to sell a percentage of their holdings in the Company to new and existing investors (together “the Transaction”) at a fixed offer price of NZ$0.50 per new share (“Offer Price”) to provide additional liquidity, contemporaneous with a change in listing to the NZX Main Board, thus facilitating inclusion in the NZX50. . .

Commitment needed by wool growers to ensure sustainable, profitable wool future:

A key objective of Wools of New Zealand is to build the company, evolving within five years to be a fully commercial grower-owned sales and marketing business.

Wools of New Zealand has spent considerable time meeting with all sectors of the industry in New Zealand and internationally building strong collaborative relationships and is now pursing commercial opportunities with supply chain participants for mutual benefit. The Directors are pleased with the cooperation and progress made to date. Wools of New Zealand is, for example, very supportive of the New Zealand scouring industry which underpins the quality and integrity of our fibre which supports the Company’s branded, market-pull strategy. . .

ANZCO Foods’ new Foodplus programme – comments by Sir Graeme Harrison:

ANZCO Foods Chairman, Sir Graeme Harrison, who has worked in the meat industry in various roles since 1973, is enthusiastic about the potential of the new Foodplus programme to enhance business opportunities for the sector.

ANZCO Foods and the Ministry for Primary Industries announced joint funding for the $87million Foodplus programme earlier this week. MPI Director-General Wayne McNee approved funding from the Primary Growth Partnership, which is administered by MPI.

Sir Graeme says it will give a vital boost to the meat industry. . .

Honours earned and deserved

ANZCO chair Graeme Harrison has been awarded a knighthood in the Queen’s Birthday honours.

It is worthy recognition for his contribution to agri-business.

He is not only a leader in his business. His views on the meat industry as a whole are among few which show real understanding of its complexity and his passion for agriculture is unquestioned.

Another meat industry leader, former Alliance Group chair and Southland farmer John Turner was made an Officer of the Order of Merit.

Chairman of the Alliance Group from 1998 to 2007 and director from 1987 to 2007, Mr Turner guided the company through a financial recovery to make it the world’s largest sheepmeat processor and marketer, with a turnover of more than $1 billion.

He has been a strong advocate for the co-operative principles of ownership allowing farmers to become involved in the meat industry beyond the farm gate, encouraging them to become knowledgeable about the end user of their products and thus ensuring quality.

During his time as chairman he initiated a range of programmes encouraging farmers to be on the leading edge in the production and quality of their product and was renowned for his ability to examine situations from many angles and make sound commercial decisions.

Sheep milking pioneer Keith Neylon was also made a Member of the Order of Merit.

Another worthy recipeint of an honour was stone mason Bill Dooley who was made a member of the Order of Merit for his contribution to the restoration of historic buildings:

Mr Dooley is the head of Dooleys Masonry, the Ouse St business that has spread its influence around the globe.

He has been a stonemason all his working life, learning the trade from his father and grandfather. Although he turns 80 next month, Mr Dooley has not yet retired. However, he says he “probably” will at some stage.

Sadly Des Templeton of Riverton who was awarded a Queens Service Medal died last week. The award was made for his contribution to the flax industry.

Des Templeton may have died too soon but not before he turned his family business, a flaxmill operating at Otaitai Bush, into a scenic wonder of Southland, a museum of national significance as the only original flaxmill in New Zealand operating on its original site.

Some sneer at honours. I know enough about the work each of these men has done to be confident the awards have been earned and are deserved.

Would-be weka farmer wins Agri-Personality of Year

Roger Beattie is the Federated Farmers’  2010 Agri-Personality of the Year.

 Roger Beattie is an eco-anarchist combining conservation with business acumen. Roger is passionate about endangered species, but believes commercial farming is a better model for long term survival. His interview on Close-Up with DoC’s Al Morrison of the status quo versus farming weka, saw 83 percent of viewers side with Roger.  Roger has also rescued a flock of wild Pitt Island sheep with a plan to selling them as a gourmet food product.  His latest victory against bureaucracy is the commercialisation of Undaria – an invasive Japanese kelp used in soups and salads overseas.  After a ten year fight he finally got the greenlight to start an industry that, in five years could be worth $10 million a year.   Roger is also the force behind Eyris Blue Pearls – Paua Pearls – exported around the world. 

The Agri Business Person of the Year is Graeme Harrison, founder and chair of ANZCO Foods.

Graeme created ANZCO foods in Japan in 1984, returning to New Zealand nine years later to lead the company’s subsequent growth. Today, ANZCO has annual sales of more than $1.2 billion and employs 2,800 people on 11 production sites within New Zealand and has sales and marketing offices in Japan, Taiwan, North America, the UK and Belgium. Graeme’s vision for the future has been key in ensuring ANZCO’s past and future success and this is evident in the company’s ongoing focus in increasing investment in downstream manufacturing. This includes food solutions, pharmaceuticals, nutraceuticals and food flavourings.  Right through the process of ANZCO’s growth as a company, Graeme has shown leadership, vision and innovation and this has ensured that the business has been extremely successful.

This is the second year Federated Farmers has run the Cream of the Crop awards which Feds president Don Nicolson said gives the organisation the opportunity to celebrate how good farmers are.

The awards were sponsored by Ravensdown whose chair Bill McLeod was one of the judges.

 Other judges were Invercargill Mayor, Tim Shadbolt, farming and All Blacks legend, Sir Brian Lochore, Cathy Quinn, the Auckland based chair of law firm, Minter Ellison Rudd Watts and 2010 Veuve Clicquot businesswoman of the year and Southland netball coach, Robyn Broughton.

Meat Industry Disunity Scuttles Taskforce

Disappointment but little surprise has greeted the news that the Meat Industry Taskforce  has disbanded.

Taskforce chairman Sir John Anderson said yesterday that consultant PricewaterhouseCoopers (PWC), which was commissioned to complete an industry analysis, could not get informed consent from all industry participants.

In addition, Sir John said that in the last week one company had announced it was withdrawing its support for an industry strategy, saying it was pursuing its own plans, making it impossible to compile a report.

Meat and Wool New Zealand (MWNZ) established the taskforce earlier this year to create a red meat industry strategy to address international marketing, supplier dynamics and processing.

Owen Poole who chairs Alliance Group said his company supported the taskforce and was disappointed it had failed. 

Mr Poole said the strategy could have been the catalyst for industry aggregation, and the fact PWC was going to seek contributions from farmers, meat companies and unions, would have produced meaningful results.

“I see it as a lost opportunity,” he said.

Silver Fern Farms chief executive Keith Cooper said he supported any initiative to create an industry strategy, but the taskforce never released its terms of reference, so companies did not know what it was trying to achieve.

Mr Cooper said Silver Fern Farms (formerly PPCS) was not the reason the taskforce failed.

“In regard to the Meat Industry taskforce announcement, from a Silver Fern Farms perspective, we were never asked for informed consent by PWC on the issue.”

The company supported any initiatives to improve supplier returns.

“Silver Fern Farms supported any initiative about reviewing the industry strategy or structures.”

Anzco chairman Graeme Harrison was also supportive but not surprised it had failed, given the reluctance of the four major meat companies to co-operate on industry issues.

“Unless the four companies were prepared to talk in meaningful ways, then it was never going to happen.”

While he had reservations about the size of regulatory and commercial hurdles the taskforce faced, he said it would have provided an important circuit-breaker for farmer confidence.

Mr Harrison said commercial reality would now play its hand and there would be change.

“Sooner or later, something will happen and it will be a commercial decision.”

The 07-08 season was a very tough one for sheep farmers with falling returns and steeply increasing prices for fuel, fertiliser and other inputs. The outlook for next season’s lamb prices is more optimistic, but even so they’ll be hoping that whatever happens in the industry happens sooner not later.