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.

Feds seek foreign land register

Federated Farmers wants a foreign land register to provide more information on farms and rural businesses in overseas ownership.

National president Bruce Wills told the Primary Industry Forum his organisation supports foreign investment because the country was built on it and can’t progress without it.

He says the Overseas Investment Act strikes the right balance and Federated Farmers wouldn’t support further controls on foreigners buying farmland.

But he says more information is needed about the amount of land in foreign hands. . .

I don’t think we need any more controls on foreign ownership but it would help the discussion if there was better information on the issue.

We know when foreigners buy land but we don’t always know what happens to it after that.

If a foreign buyer sells to another it will need Overseas Investment Office approval and become public but sales to New Zealanders aren’t always publicised.

Nor do we always know if the foreigners who buy land or businesses are residents about which most people have fewer reservations.

However, a report by the New Zealand Initiative does debunk several myths including:

Myth: Asians are increasing taking over New Zealand.
Fact: It is Australians who have largely been taking over New Zealand. In the year to March 2012, they own 55.8% of foreign investment – up from 31.5% in March 2001. In March 2012, Asian investors owned just 3.1%.

Myth: New Zealanders are becoming tenants in their own country.
Fact: Of the 28.7 million hectares in New Zealand, only one million is owned by foreigners, while the Department of Conservation alone owns eight million.

Myth: Foreign investment is a one-way street with New Zealand an easy target.
Fact: New Zealand has one of the most restrictive regimes in the world and there has been no obvious upward trend since 2000 relative to GDP. New Zealand investment abroad has dropped slightly from just above 13% relative to GDP in 2002-03 to 12% in 2012. This up markedly in dollar terms since the 1990s.

The report is here.

 

Rural round-up

Looking out for one another is positive for all - James Houghton:

Rural New Zealand has traditionally been made up of close-knit communities.

The knowledge that the people around you were looking out for you in tough times, as well as good, was a source of huge strength for heartland New Zealand. Lately I feel our rural communities are not as close as they used to be.

This is probably a reflection of society as a whole, but it would be great if we all made more effort to look out for our neighbours and get that sense of community back.

Are we in an era of entirely corporate thinking? Does extracting the value of every dollar and cent make us stronger?

I believe self-interest and self- preservation sometimes work against people. . .

Contestants battle elements as well as each other – Hugh Stringleman:

Seven Young Farmer Contest grand finalists and hundreds of supporters and schoolchildren battled steady rain at Kumeu Showgounds last Friday.

The weather got worse as the contestants tired, which made the combined technical and practical day an endurance test.

About 500 schoolchildren from Auckland secondary schools attended to hear presentations by primary sector leaders on career choices. That part was undercover and was well attended. . .

Mackenzie agreement confirms it is a working landscape:

Farmers who work the Mackenzie country are central to its future and that has been recognised in the Mackenzie Agreement, which was launched on Sunday. This Agreement fundamentally recognises the iconic region to be a working rural landscape.

“The Mackenzie Agreement is a significant achievement,” says Dr William Rolleston, Federated Farmers Vice-President.

“This agreement is a tribute to all those who sat down to understand each other’s point of view. It is environmental groups, recreational users and tourism interests reaching common ground with farmers that the Mackenzie is a working landscape with high conservation values. . .

Small grazing blocks drive rural sale volumes:

While Real Estate Institute of NZ (REINZ) data shows 67 more farm sales took place in the three-months to April 2013, this has been driven by the sale of smaller grazing blocks and comes with the median price per hectare falling 9.3 percent.

“While more farms were sold, 42 of them were grazing blocks with a median size of 65 hectares,” says Bruce Wills, Federated Farmers President.

“Perhaps more significant is that the median price per hectare across all farm types actually fell. At $20,241 per hectare, this is 9.3 percent down on the previous median of $22,317. . . .

Farmlands Marketing Man to Head New $2.2 Billion Co-op Marketing Team:

He’s headed marketing teams in industries as diverse as frozen foods, fragrances and farming and now Allister Bathgate’s success sees him appointed to an executive management role in New Zealand’s major rural retail co-operative.

Mr Bathgate’s new role as General Manger Marketing for Farmlands Co-operative Society Limited is a significant opportunity that doesn’t come along every day so he’s “rapt about it”.

Formerly the General Manager of Innovation and Communication for Farmlands, Waikato-born and bred Mr Bathgate’s new role is a result of the recent merger of rural retailers Farmlands and CRT. . .

NZ fine dining salmon wins global award:

New Zealand’s Ōra King salmon has been judged as ‘remarkable’ at the iTQi Superior Taste Awards in Belgium.

The brand has been developed specifically for fine dining by Nelson-based New Zealand King Salmon and was launched only last year.

Ōra King Fresh Whole Salmon achieved two stars in the awards and an overall mark of 83.1 per cent.

The iTQi Superior Taste Awards are in their ninth year and are judged by more than 120 of the world’s opinion-leading chefs and sommeliers. . .

Rural round-up

Fixed price contracts not priority for most meat companies – Marie Taylor:

As debate on the state of the red-meat sector continues, Marie Taylor asked 12 meat processors what they had to offer farmers in terms of stable pricing they could bank on.

Fixed-price contracts are few and far between in the meat industry.

The New Zealand Farmers Weekly surveyed 12 meat companies in New Zealand to find out what was on offer in terms of predictable, stable pricing farmers could bank on.

The most encouraging responses came from Silver Fern Farms, Ovation, Progressive Meats, Lean Meats and Firstlight Foods. . .

New animal welfare strategy released:

Minister for Primary Industries Nathan Guy has launched the New Zealand Animal Welfare Strategy today, setting out a high level framework for how we treat animals.

“The strategy Animal Welfare Matters sets out a formal foundation for New Zealand’s animal welfare legislation and policy,” says Mr Guy.

“It says that it matters how animals are treated, and that we have responsibilities toward animals. It also says that using animals for activities like farming and racing is acceptable as long as it is humane.”

The strategy lists four main routes to improved animal welfare: . . .

Federated Farmers back new animal welfare strategy:

Federated Farmers is fully supporting the release of the Ministry for Primary Industries (MPI) Animal Welfare Strategy.

“The strategy reflects Federated Farmers own policy on animal welfare,” says Bruce Wills, Federated Farmers President.

“It really does matter how animals are treated and farmers have both a moral and ethical responsibility to ensure requirements are adhered to.

“New Zealand’s farmers are actually world leaders in integrating animal health and welfare into their farm management planning. Something recognised by the World Society for the Protection of Animals (WSPA).

“This strategy reaffirms our international leadership and reputation. It is a strategic means to ensure this reputation is not only maintained but improved and Federated Farmers supports it. . .

Word of Hawke’s Bay Wines Spreading In China:

Hawke’s Bay wines, in particular high quality reds, are steadily gaining exposure in the expansive Chinese market with two recent initiatives adding to the awareness. 

Four influential Chinese media writers visited the region and were hosted by Hawke’s Bay Winegrowers and five wineries, while four local wineries attended one of China’s most important international wine trade fairs, the Chengdu Wine & Spirits Fair.

Immediately after her visit, Sophie Liu, an independent wine writer and educator, has blogged positively about her time in Hawke’s Bay and is planning articles to appear in Wine World, Wine & Taste and World Cuisine magazines, as well as http://www.wines-info.com

Her colleague Fan Yiren, who is one of China’s most influential social bloggers with accumulated fans of 63,374,307 on one site and over 330,000 on Weibo (Chinese Facebook equivalent), blogged daily. He is also planning to write four to five feature blogs. . .

At home and overseas, New Zealand seafood is on the dinner table:

When fish is on the menu, the type of fish you get can depend heavily on where you live.

Salmon, tarakihi, and gurnard are the most-commonly available fish species in supermarkets and fish shops as tracked in the consumers price index (CPI), Statistics NZ said today. However, some species are not widely available in all regions.

“Snapper and trevally are generally available in shops from Nelson northwards, but barely feature further south where sole is more commonly available,” prices manager Chris Pike said.

New Zealand’s seafood industry, published today by Statistics NZ, gives an economic overview of selected parts of the country’s seafood industry and provides a comparison between 2007 and 2012. . .

Trials show there’s a lot to love about molasses:

A further round of farm trials in the Waikato has reconfirmed the value of Crystalyx Dry Cow dehydrated molasses blocks as a Dry Cow winter management tool.

The results were shared at a farm open day in Putaruru, in March, with Jackie Aveling, Animal Nutrition Manager at Altum, saying the good turnout reflected farmers’ interest.

“Overseas trials over some 20 years have consistently confirmed the performance of dehydrated molasses blocks. Farmers want to know if the same results can be achieved in New Zealand. Our trial work with Crystalyx, which is specifically formulated for local conditions, gives them the facts they need to support its performance.”

The repeated trial work done by Dr Mark Oliver, science director of the Liggins Institute’s Ngapouri Farm research station near Rotorua, which saw a control herd supplemented with magnesium and trace elements following current best practice guidelines, and the other Crystalyx Dry Cow. . .

Organic Farm Pioneers High-tech Voluntary Milking System:

Robotic or voluntary milking systems, where the cows choose for themselves when they want to be milked and the whole job is done by a computerised machine, are still as rare as tits on a bull in New Zealand.

Heritage Farm, a certified organic dairy farm at Karaka, just south of Auckland, was the first farm in New Zealand to install a DeLaval Voluntary Milking System.

Early adopters David and Cathy Yates, who own and run Heritage Farm with their son Brian, are really pleased with their move to computerised milking. They have now had two and a half year’s experience with the system and say that its benefits go way beyond not having to spend hours in the milking shed every day putting on and taking off teat cups. They include improved animal health and welfare, and better pasture and feed management – all made possible by the quantity and quality of the data that the system provides, along with doing the manual work of milking. . .

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.” . .

Those were the bad old days

Bruce Wills, Federated Farmers president, reminds us how it was in the bad old days:

. . .  the good old days, was one of wage and price freezes, exchange rate controls and carless days.

To those of us who can recall this period, it was not a stellar time for New Zealand economically.

An increasingly desperate government had all but exhausted the interventionist toolkit.

We seemed to have more controls than what the international space station currently has.

Tourists would joke, “I came to New Zealand but it was closed”.  From 1945 until October 1980, shops opened Monday to Thursday at 9am and closed at 5pm; late night Friday trading to 9pm was the week’s highlight. Limited Saturday trading from 1980 meant just that and families would wander the streets “window shopping” – an expression out of favour with those born from the late 1980’s.  Those who now shop on Sunday should know it only arrived in 1990 and following deregulation.

Prior to the 1980’s economic reforms, the entire New Zealand tax system was a dog’s breakfast.

The largest tax burden fell upon wage and salary earners who, in 1983/84, carried 64 percent of the burden. Today, it is less than 40 percent.

Personal income taxes were eye-wateringly high with 66 percent as the top rate and that started at $38,000 ($106,817 in today’s dollars). Tax avoidance and evasion were rife due to copious tax shelters, dodges and “cash jobs”. 

When it came to business and industry, if it moved it was taxed and regulated. If it stopped moving then it was protected and subsidised.

Looking back this led to some truly bizarre endeavours.

Up until the 1990’s, car manufacturers would build a car in Japan, disassemble it, put it into a container and ship it to New Zealand. Here, it would be reassembled but not necessarily as well. Today, we don’t much use the “Monday” or “Friday” car to denote reliability; indicative of car factory workers keen to get home, or to the pub.

You could also forget JetStar because the government-owned Air New Zealand had a monopoly on domestic air travel.

Trucks were limited to distance and to what they could carry to protect the government-owned railway.

Even then, the railway was legendary for high staffing and ability to wreck or lose goods.

Domestic shipping was protected to shelter the government-owned shipping corporation and the Cook Straight Ferry.

Ports were an inefficient union closed-shop.

Relevant to Labour’s desire to turn the clock back on power, private sector electricity generation was all but banned to protect government-owned generators.

Even courier services were strictly controlled to protect the government-owned Post Office’s monopoly.

As for telecommunications, you could forget moving house and having a phone immediately.

Outside of the state system, occupations behaved like guilds under legislative protection.  Numbers were strictly controlled to ensure that fortunate elite had a good life and an even better income.

In agriculture, subsidies filled warehouses all because government knew much better than the international marketplace.

These helped to create an expression some may still recognise, “the Queen Street Farmer”.

It was wrong but the system was milked until Federated Farmers worked with the Lange Labour Government to row it back.

Then again, the old Producer Board’s reputedly exchanged product for Lada cars made in the defunct Soviet Union.  At that time, I doubt many could have told our respective economic systems apart.

This was a New Zealand where strikes were a union tactic and going out consisted of a buffet restaurant. It was only in the late 1970’s that restaurants and sports clubs found it slightly easier to sell wine with food.

This is why I struggle with those who look back to a past that never was. . .

Those won’t the good old days and a LabourGreen government would take us back there.

Rural round-up

Concerns For Sheep and Beef Farmer Viability Show In
rural Confidence Survey:

Results at a Glance

• Half of sheep and beef farmers are concerned about their business viability

• Dairy farmers are the most optimistic of the sectors, driving some improvement in overall rural confidence

• One in three farmers on the North Island say their farm is severely impacted by drought

Half of New Zealand’s sheep and beef farmers are worried about their ongoing viability as the impact of drought and a sharp fall in lamb prices over the past year take their toll, the latest quarterly Rabobank Rural Confidence Survey has showed. . .

Fonterra Announces Management Changes:

Fonterra Co-operative Limited announced today senior management changes in its Asia Pacific Middle East Africa (APMEA) business unit, including the departure of the existing Managing Director APMEA and the appointment of a new Managing Director for Australia.

Fonterra CEO Theo Spierings said a new leadership team had now been confirmed for APMEA, effective June 1. It included a new Managing Director Australia, Judith Swales, who joins Fonterra after leading Heinz across Australasia and before that the Goodyear Dunlop Business in Australia.

“Judith has considerable experience in delivering business turnarounds across a number of industry sectors, with a great understanding of consumer, customer and operations which will be critical in our Australian business,” said Mr Spierings. . .

Farmers to learn about environmental best practice:

Federated Farmers is proudly promoting regional Field Days for the Ballance Farm Environment Supreme Award Winners. Details of these upcoming Field Days are below.

“What Ballance Farm Environment Supreme Award Winners showcase, is how farmers are responsibly using the environment,” says Bruce Wills Federated Farmers President.

“While they say you cannot teach an old dog new tricks, that saying does not hold with agriculture. Farmers devour information and use field days to learn better ways of doing things.

“In March, I was among 200 farmers at the Smedley Station Field Day in Hawke’s Bay. This gives you an idea as to how popular these Ballance Farm Environment Award Supreme Winner Field Days are. . .

Dairy Awards Drives Progress In Industry:

The New Zealand Dairy Industry Awards is succeeding in its goal of recognising excellence among farmers as they progress in the dairy industry.
 
Three of the 11 finalists in the 2013 New Zealand Sharemilker/Equity Farmer of the Year competition are past entrants and regional winners in the New Zealand Farm Manager of the Year contest.
 
National convenor Chris Keeping says it is an exciting development in the awards programme, which has run in its current format since 2006 when the sharemilker/equity farmer, farm manager and New Zealand Dairy Trainee of the Year competitions were brought together. . .

New Zealand Seafood Industry Welcomes the National Plan of Action – Seabird:

The New Zealand seafood industry welcomes the new National Plan of Action – Seabirds launched today by the Minister for Primary Industries, the Hon Nathan Guy.

“The Ministry for Primary Industries has involved many groups including industry and environmental NGOs, in developing the National Plan of Action. This collaborative approach has led to common-sense processes that will deliver results,” says Tim Pankhurst, Chief Executive of Seafood New Zealand.

“New Zealand is geographically a global centre for seabirds and the New Zealand industry is committed to maintaining its role as world leader in reducing interactions between seabirds and fishing. . .

Countdown to the Ultimate Rural Challenge:

The Grand Final of the 2013 ANZ Young Farmer Contest is just weeks away and the countdown is on. Tickets are still available for the different events, visit www.youngfarmers.co.nz for more details.

The Grand Final will take place between 16-18 May in Auckland at the Kumeu Showgrounds and SKYCITY, and there is sure to be something entertaining for all ages and interests.

The series of events kick off at 4.00pm, Thursday 16 May, with the Official Opening at Aotea Square. Here, spectators will be entertained with the first Head-to-Head Challenge and introduced to the seven Grand Finalists: Ian Douglas of Northern, Tim Van de Molen of Waikato/Bay of Plenty, Cam Brown of Taranaki/Manawatu, Aaron Passey of East Coast, Reuben Carter of Tasman, Matthew Bell of Aorangi, and Dean Rabbidge of Otago/Southland. . .

Karaka Million Payments Due Tuesday:

Payments for New Zealand Bloodstock’s $1 million Karaka Million– New Zealand’s richest race – are due next Tuesday 30 April.

Horses that were entered by the Entry Deadline of Wednesday 6 March have until 5pm (NZ time) on Tuesday 30 April to pay the Entry Fee of $1,750 + GST per nominated yearling in accordance with the Conditions of Entry.

Please note that any party who has not paid the nomination fee(s) by the deadline will remain liable for the entry fee but their yearling(s) will no longer be eligible for the Karaka Million 2YO or Karaka 3YO Mile. . .

Rural round-up

New Zealander joins World Farmers Organisation board:

Federated Farmers President, Bruce Wills, has been appointed to the World Farmers Organisation Board as its Oceania representative. This assures New Zealand a key voice on the peak body representing farmer organisations from over 50 countries.

“It has been a superb General-Assembly in Japan,” says Bruce Wills, Federated Farmers President, speaking from Niigata, Japan.

“Federated Farmers has helped to broker a breakthrough trade policy for the World Farmers Organisation. I need to acknowledge the high level policy work involving not only Federated Farmers’ staff but kindred organisations too. . .

Cracks appear between farmer groups – Allan Barber:

It hasn’t taken long for the cracks to appear in the ‘united farmers for change’ movement started by the Meat Industry Excellence group which held its first meeting in Gore a couple of weeks ago with a resoundingly successful response.

The next meeting organised by MIE will be held in Christchurch this Friday, but without Gerry Eckhoff who chaired the Gore meeting but has resigned over a disagreement with the strategy. Having said on the National programme the morning after the meeting that the new system and structure could be in place by next season at the beginning of October, he is now saying this is completely unrealistic. I told you so, Gerry! . .

Drought Declarations in March Dominate Rural Marketplace:

Summary

Data released today by the Real Estate Institute of NZ (“REINZ”) shows there were 21 fewer farm sales (-5.3%) for the three months ended March 2013 than for the three months ended March 2012. Overall, there were 376 farm sales in the three months to end of March 2013, compared with 379 farm sales in the three months to February 2013, a decrease of 3 sales (-0.8%). 1,433 farms were sold in the year to March 2013, 2.4% more than were sold in the year to March 2012.

The median price per hectare for all farms sold in the three months to March 2013 was $22,317; an 11.3% increase on the $20,056 recorded for three months ended March 2012. The median price per hectare increased by 1.7% compared to February.

The REINZ All Farm Price Index eased by 1.1% in the three months to March compared to the three months to February, from 2,939.42 to 2,907.18. Compared to March 2012 the REINZ All Farm Price Index fell by 7.2%. Further details on the REINZ All Farm Price Index are set out below. . .

Govt supports development of dairy women leaders:

Associate Minister for Primary Industries Jo Goodhew has announced that the Dairy Women’s Network has been approved for a Sustainable Farming Fund grant of $180,000 over three years.

“The Government is investing in the development of female leaders in dairying to ensure the sector is well-placed to face future challenges,” said Mrs Goodhew.

“The Dairy Women’s Network has a track record of linking up and empowering women in dairying.

“The Network has identified the need for leaders to drive reform in the dairy sector so that it’s meeting social and environmental footprint obligations without compromising overall productivity.” . . .

Dairy Women’s Network Chief Executive Resigns :

The Dairy Women’s Network has announced the resignation of chief executive Sarah Speight.
 
Backed by significant national and international dairy industry experience, Mrs Speight joined the Network in 2011 as the first full-time chief executive in its 15 year history.
 
For the past two years she has been commuting from her home in Tauranga to the Network’s Hamilton-based offices. Mrs Speight said that to take the Dairy Women’s Network to the next stage and do the role justice requires someone who is Waikato-based.
 
“Being in Tauranga and with significant family and community commitments has made me rethink my priorities. I have decided to resign from the role of chief executive to spend more time with my family in the immediate future.” . . .

Govt funding to help support eucalpyt forestry:

Associate Minister for Primary Industries Jo Goodhew has announced that two projects focusing on eucalypts have been approved for Sustainable Farming Fund grants.

“The Government is investing in the development of eucalypts as a foresting option,” said Mrs Goodhew.

“Eucalypts offer a useful planting option. They are an alternative landuse for dryland areas and produce a naturally durable timber product.”

A project being run by the NZ Dryland Forests Initiative to share information about how to effectively manage plantations of durable eucalypts in dryland areas will receive SFF funding of $216,000. . .

Change Of Directors On Fonterra Board:

Fonterra Co-operative Group Limited announced today the appointment of a new Director, Simon Israel, following the retirement of Ralph Waters.

Chairman John Wilson said the Board welcomed Mr Israel, a Singaporean who has exceptional governance, consumer and wider Asian business experience.

“Simon is based in Singapore and has worked in Asia for many years. He has significant business credentials in Asia and in consumer and investment businesses. He will bring to the Board invaluable knowledge and insights as Fonterra pursues its business strategy, particularly with its emphasis on emerging markets,” said Mr Wilson. . .

Synlait Milk Launches its ISO 65 Accredited Dairy Farm Assurance System:

Synlait Milk launched its internationally accredited ISO 65 dairy farm assurance system called Lead With Pride to its 150 strong milk supply base today.

The only system of its kind in Australasia, Lead With Pride recognises and financially rewards certified milk suppliers for achieving dairy farming excellence.

“It is about demonstrating industry leadership in food safety and sustainability, and guarantees the integrity, safety and quality of pure natural milk produced on certified dairy farms .

“It enables our world leading health and nutrition customers to differentiate their products using Gold Plus or Gold Elite certified milk that has been sustainably produced,” says Synlait Milk CEO Dr John Penno. . .

Funding to help sustainable aquaculture porjects:

Five important projects focusing on aquaculture will benefit from the latest round of Sustainable Farming Fund grants, Minister for Primary Industries Nathan Guy has announced today.

“New Zealand seafood is a premium product and it’s great to see groups looking to improve their production and value by developing aquaculture,” says Mr Guy.

The projects with funding are:

• Koura Aquaculture, by Wai-Koura South: $119,420
• Farming Premium Salmon, by the Salmon Improvement Group: $600,000
• Management of the GLM9 Greenlipped Mussel Spat Resource, by GML9 Advisory Group: $20,000
• Tuna (Shortfin-eel) Aquaculture, by Te Ohu Tiaki o Rangitane Te Ika a Mauri Trust (MIO): $600,000
• Aquaculture custom bacterial vaccines, by Aquaculture New Zealand: $115,686. . .

Easy lamb roast (hat tip: Whale Oil):

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.

Why waste water?

A woman once told me that water should be left to flow from the mountains to the sea as God intended it.

I wasn’t quick enough to ask her if God also intended oil to be left in the ground and if so was she going to stop driving a car.

Not everyone uses God as a reason to oppose irrigation but the objections by some of a dark green persuasion have a religious fervour which I don’t understand.

Irrigation has positive economic, environmental and social impacts and the absence of it where it’s needed inflicts a very high cost.

New Zealand has “heaps” of water, but the country is not good at using it efficiently, says Federated Farmers president Bruce Wills, as the country suffers one of the worst droughts in 70 years.

“We let most of it run out to sea in the winter, and the economy gets whacked, (by drought)” Wills said. . .

Government officials now believe the drought could carve as much as $2 billion out of the economy.

After selling off lots of stock because of the lack of grass and feed, farms were now like supermarkets with only half their shelves full.

“It is very hard to make money on that basis,” Wills said and when they restocked it would be at higher prices than when they bailed out and sent stock off to the works.

“It will be a tough few years to go, the impact will go on for some time,” Wills said.

There would be a “good number” of farmers making losses this year, but he hoped only a small number would be pushed to the wall and forced to sell up.

Fertiliser spending had already halted so trucks and planes were not moving and that meant a tough impact on provincial towns.

“Belts will be tightened and chequebooks put away,” Wills said. . .

But for all drought-hit farmers: “If winter comes early it will be tough,” Wills said. “A lot of farmers are still on a knife-edge and a lot will depend on what happens next month, if we get some more rain and more warmth.

“Drought is far from over when the rain comes; that’s just the start of the recovery.”

Farmers had to get through the latest drought, but plan better to get through similar future events, Wills said.

“We have massive potential in this country to sensibly and carefully irrigate vast areas of land,” Wills said.

There were big-scale proposals to help make more parts of the country less prone to drought. . .

These include the $230 million Ruataniwha water storage scheme in Hawke’s Bay.

It is proposed a public-private scheme will build a dam west of Waipukurau that would hold 90 million cubic metres, capable of eventually irrigating 30,000 hectares. At present, just 6000 hectares of land in Hawkes Bay is irrigated.

“That’s on a big scale to be more efficient, so there’s lots we can do,” Wills said, to lessen the impact of drought, including water storage, pasture management and different feed regimes and breeds that cope with drought.

The Ruataniwha scheme would build “sensible” resilience into the economy.

In South Canterbury, the Opuha dam irrigation schemes made the area “substantially” drought proof.

The Wairarapa Water Use Project plans to irrigate more than 60,000 hectares and fuel a boom in farming in the region. But the nine proposed reservoirs would also destroy 35 homes, sever roads and flood land, with local home owners concerned about the secretive process.

But Wills said water storage and irrigation had wider benefits.

“It is not just for farmers. It is for the entire economy,” he said, with the 2008 drought costing the country $2.8 billion. Those costs could be mitigated far more than they are today.

Government studies of Opuha suggest that every 1000ha irrigated created 27 jobs and injects $7.7 million into the local economy. With 30 potential projects covering around 1 million ha up the eastern seaboard that’s about $7.5 billion extra revenue for the country each year and 27,000 new jobs. . .

A few decades ago farmers often waited for government help before making decisions. Now there are no subsidies they know they have to make decisions early, and to be prepared for drought.

Wills says most farmers are good at responding to the signals of drought.

He changed the way he farmed dramatically after the last bad drought in 2007.

“This has been tough, but we have got through this drought much better than 2007, because we have done dramatic things,” he said.

In 2007, his farm had 85 per cent sheep and the balance in cattle. This year he had 60 per cent cattle and just 40 per cent sheep. “We massively changed,” he said.

Wills farms in hill country in Northern Hawke’s Bay, but after the 2007 drought he built 60 new dams for stock water, which was a cheap way to store water.

“We learnt last time, when you run out of water, you run out of options,” he said. “We get plenty of rain in the winter, just not enough in the summer”. . .

That’s where storage, for stock water and irrigation comes in.

Why waste water when there’s too much when it’s possible to store it?

If you accept that some use of water is alright, taking it from rivers at high flow and storing it until it’s needed has the least impact on rivers and a big impact on soil health, pasture growth and farming profitability.

Farmers not scientists

Federated Farmers’ President Bruce Wills was on the Herald’s live-chat this week.

Some highlights:

If farmers have been suffering so much from the recent droughts, why have many farmers (& your association) in the past been deniers of climate change?

by LouisOutlook April 10 at 12:01 PM

we aren’t scientists we are farmers, we choose not to debate the science but work hard to deal with changing weather patterns.

by bwills April 10 at 12:03 PM

• Are you aware of Dept of Labour officials (Manukau office) visiting farms & lifestyle blocks offering advice on quad-bike safety? If you converse with them on the subject and admit that you don’t always wear a safety helmet, they then send you a formal warning letter under S.17 of the H & S in Employment Act 1992. The effect is that if they catch you on the quad bike without a helmet they don’t have to give you a prior warning under the Act before issuing an Infringement Notice. This practice is heavy-handed and deceitful. What should I do to deal with this abuse of power on getting such a warning letter? (I do now wear the helmet, incidentally, but I resent being “set up” in this way.)

  by Franklin April 10 at 12:04 PM
• 
  This is an area where we are closely involved with Labour dept and others. Agree farmers should not be treated as criminals for not wearing a helmet. Our preference is education to over time change behaviour.

  by bwills April 10 at 12:07 PM
• 
  Hi Bruce, we often hear about Govt assistance for farmers during times of drought. But the manufacturing sector says it gets hit hard by things like the high value of the NZ dollar. And they are expected to bear the brunt themselves. What is the nature of Govt assistance during drought? Is it cash in the hand? Deferred tax payment dates etc…? How does it actually work?

  by Business April 10 at 12:07 PM
• 
  Short answer! For Ag a bit different than your example, it is an act of god that the farmer has no control over, 95% of support is emotional recognition and help by Rural Support Trust, a small RAP payment heavily means tested to those that can’t feed their families,

  by bwills April 10 at 12:10 PM
• 
  Bruce, could you say a bit more about the mental health campaign? How are you reaching people with your message, how do you measure the results of it and how do you raise the issue with a demographic that’s traditionally been pretty staunch?

  by Ben April 10 at 12:10 PM
• 
  Early days, sent out 20,000 cards with a strong attention grabber” when life’s a bitch” with numbers to call. Lots of response. Now dealing with a number of the help providers to ensure people in need are getting the assistance they require. Only kicked off in Jan’13 so yet to do detailed analysis of impact. At 16 deaths per 100,000 in rural NZ we just want to save lives .

  by bwills April 10 at 12:15 PM

  The NZ$ has risen very strongly over the last 4 years, and is now as high as ever. While that has made exporting tough, do you think that it has also had an effect of “raising the bar” in terms of on-farm and related services efficiency?

  by Laurie April 10 at 12:47 PM

  

  A very topical question! Just 12 yrs ago we were 41c against the US, if we had told exporters then that it was going to more than double by 2013 we would have had a riot! You are right, although very challenging exporters have responded remarkably well and it does keep us on our toes, albeit uncomfortably.

  by bwills April 10 at 12:50 PM

• Just going back to the drought, is there any support in place for the business that rely on the dairy sector such as farm irrigation and effluent specialists as surely they will be directly effected as well.

  by kiwifolk April 10 at 12:51 PM
• 
  I don’t believe so. Most service businesses have a spread of clientelle which does give some buffer compared with the direct hit that a weather impacted farmer may face but certainly the pain does go much wider than just farming. We need to remember that drought relief is largely about ‘emotional support’, then is no financial handouts. It is the trauma of struggling to feed your animals caused by something outside any farmers control that leads to the worrying mental health issues we have in rural NZ particularly.

  by bwills April 10 at 12:58 PM

Rural round-up

Gore couple take home Sharemilker of Year title – Terri Russell:

More than 500 people attended the 2013 Southland Dairy Industry Awards in Invercargill last night to celebrate the achievements of standout individuals in Southland’s dairy industry.

Gore sharemilkers Don and Jess Moore, who are in their second season 50 per cent sharemilking 950 cows, were named the Sharemilker-Equity Farmers of the Year.

The couple said that entering into the awards made them look at their business closely – from the day-to-day running to goals for the future.

“We also enjoy the opportunity to network with some of the standout leaders within the dairy industry, as that is what makes this industry so strong,” they said. . .

Government’s irrigation promises offer hope to farmers:

The comments from Primary Industries Minister Nathan Guy re-confirming the government’s commitment to supporting large scale irrigation projects are exactly what drought-stricken farmers needed to hear, Federated Farmers national president Bruce Wills says.

“It is great to see Primary Industries Minister Nathan Guy publically reiterating the Government’s commitment to investing up to $400 million to encourage third-party capital investment in regional water storage projects to better insure farmers against droughts such as the one currently ravaging the North Island,” Wills says.

“We need these schemes because no matter how many on-farm water dams farmers build, they will never have enough capacity to see us through droughts like this one.

“It is not just farmers who will feel the effects of the prolonged dry season. The entire New Zealand economy is set to take a $2 billion hit, which will affect everyone, from all walks of life, everywhere in the country. . .

Shear speed triumph for Fagan:

Veteran shearer David Fagan threw down the gauntlet to his rivals on the first night of the 29th New Zealand Shearing Championships when he won the competition’s annual Speedshear in Te Kuiti last night.

The 51-year-old Fagan blasted the wool off his final sheep in 22.52 seconds to win the $1000 first prize in front of his home crowd in the Waitomo Cultural and Arts Centre, where he’s been the star of the show since the Championships were first held in Te Kuiti in 1985.

Hastings shearer Dion King, who had headed the 10 qualifiers after the heats, finished second in 23.1sec, while Digger Balme, originally from Tuakau but based in Te Kuiti for many years, was third, in 24.26sec. . .

SFF firms stance against co-op:

Silver Fern Farms chief executive Keith Cooper has further distanced the company from calls to centralise the red meat industry.

A Meat Industry Excellence Group meeting in Gore last month attracted about 1000 farmers wanting changes to the meat industry and many supported reordering the country’s meat companies into one co-operative controlling a majority of product.

The Southland Times reported Silver Fern Farms did not support the idea because it felt it did not necessarily reflect the best interests of its shareholders. . .

Sealord’s results marred by Argentinian impairment as other units prosper – Jonathan Underhill

(BusinessDesk) – Sealord, New Zealand’s second-largest fishing company, reported a full-year profit that was dented by a charge against its Argentinian business, where a soaring peso and rampant inflation are driving up costs.

Profit was $5.2 million in the 12 months ended Sept. 30, from $13.4 million in the corresponding 15 month period, according to the Nelson-based company’s annual report. Sealord’s holding company, Kura, changed its balance sheet in the interim. Sales were $487 million in the latest year.

Sealord, which is jointly owned by Maori tribal interests through Aotearoa Fisheries and Japan’s Nippon Suisan Kaisha, took a $10 million charge against its Yuken business in Argentina in 2012, notes to its accounts show. That business also had an operating loss of $7 million in the period, so effectively $17 million was shaved off Sealord’s results in the latest period. . .

Seize the day – Valerie Davies:

Today was not one of those days, but One of Those Days.  Yesterday, as I watched the tiny, greenery- yallery birds we call silver- eyes in the trees, hunting for insects and the like, I thought how I hadn’t seen the cock pheasant for months. He must have found another home, I thought.

When I awoke this morning I jumped out of bed and looked out of the open window to the sea as usual. There, right below my window, was the pheasant, in the garden bed with the bromeliads. He slowly pecked and ambled his way down through the vegetable beds to the petanque court, and then sauntereded off down the path into the wild patch. A moment earlier or later, and I would have missed him. Do I believe in coincidences, or did the pheasant pick up my wave-length? . . . (you’ll have to click the link above to get to the rural theme and a good read).

Sheep etiquette in New Zealand:

Follow the journey of Luca an Italian tourist exploring Lake Tekapo. In this beautiful alpine village in the heart of the South Island, Luca enjoys the stunning scenery, wonderful attractions and the hospitality of the locals. What he wasn’t prepared for was the uninvited but special friendship he would establish with Lulu…….. confirming for Luca, South Canterbury is a great place to make friends! . . .

And from Facebook:

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Rural round-up

Farmers need to agree what they want – Allan Barber:

The recent meeting in Gore, organised by the Meat Industry Excellence Committee and attended by about 1000 farmers, gave an overwhelming mandate for change to the present condition of the meat industry.

Key aspects of the Excellence Committee’s plan are one company controlling 80% of processing and marketing, a change in farmer supply culture, procurement equality and transparency, farmers to fund the restructure with assistance from the banks, and government backing.

This wish list may sound completely logical and comparatively simple, but it contains a number of assumptions, all of them very hard to achieve and some pretty unrealistic. In the first flush of optimism after the meeting Gerry Eckhoff suggested the new structure could be in place by the start of next season in October. That is patently ridiculous because a wish list doesn’t equate to a workable strategy and business plan. . .

Drought saves gold kiwifruit harvest in north:

The drought that has plagued Northland this summer has brought an unexpected reprieve for kiwifruit growers battling the PSA virus.

The dry weather has stopped the spread of the disease and, against all expectation, Northland’s gold kiwifruit harvest is shaping up to be a good one.

Fruitgrowers Federation Northland director Rick Curtis says growers feared the worst when the virulent strain of PSA was reported in several orchards in and around Kerikeri last spring. . .

Federated Farmers promotes Commerce Commission swaps investigation:

Having written to the Commerce Commission last November, Federated Farmers welcomes the Commerce Commission’s update on its investigation into the promotion and sale of interest rate swaps marketed by various banks.

“If farmers have concerns about the mis-selling of swaps then now is the time to raise them with the Commerce Commission,” says Bruce Wills, Federated Farmers President.

“Having broken the $50 billion barrier the rural debt market is large and some of the debt instruments are complicated. There has also been a lot of discussion about swaps so the Commerce Commission is best placed to properly investigate them.

“The Commission is rightly looking at swaps from the perspective of the Fair Trading Act 1986. This includes misleading and deceptive conduct in trade such as false and misleading representations. . .

Forest owners vote yes:

The Forest Voice referendum will deliver a clear yes vote in favour of a commodity levy when final results are released in a few days.

The levy, which will be used to fund activities that benefit all forest owners, was the subject of a referendum that ran from 1-29 March. . .

Campaign for Wool — Wool House in Design Spotlight:

International enthusiasm and accolades endorsed wool in London recently at a Campaign for Wool showcase, Wool House.

Over 15,000 people visted Wool House, a two-week event hosted in Somerset House Wool House presented wool as a modern, versatile, lifestyle fibre. It featured a showcase of interiors, fashion and the world of artisan and craft making, along with a hi-tech educational suite.

Wool House invited leading interior designers to offer their vision and seven individual rooms to show how the design community uses wool extensively within their work. Exclusive room sets from designers Donna Wilson, Ashley Hicks, Josephine Ryan, Anne Kyyro Quinn, Mary Fox Linton of Fox Linton Associates and Kit Kemp featured alongside a wool art installation commissioned by the Campaign from Dutch tapestry artist Claudy Jongstra. . .

Coopers Creek Vineyard joins the fight to save our kauri forests:

The Kauri Dieback (KDB) Programme has formed a marketing alliance with New Zealand vineyard Coopers Creek, in an effort to slow the spread of kauri dieback disease.

Relationship Manager for the KDB Programme, Ian Mitchell says, “We are really excited and pleased to welcome Coopers Creek into the ‘save our kauri forests whānau’. Kauri dieback is a devastating disease. Hundreds of our majestic kauri trees have died and we need all the help we can get to prevent it spreading.

Coopers Creek winery is close to Auckland’s Waitakere Ranges where many patches of the forest have been decimated. “We’re acutely aware of the kauri dieback problem”, says Coopers Creek General Manager, David Nicholas. . .

Global Glassware Masters to Create Wine Glass for Central Otago Pinot Noir:

The Austrian director of the esteemed Riedel Glass Company, Georg J. Riedel has travelled to Queenstown to develop a specialty wine glass for Central Otago Pinot Noir in consultation with a group of New Zealand’s leading wine experts.

More than 20 wine producers and writers, including Master of Wine Bob Campbell, took part in a blind glassware taste test with Georg at Jacks Point, Queenstown on Tuesday 19 March to help Riedel create the perfect glass shape for Central Otago Pinot Noir.

Georg is a 10th generation member of the Riedel dynasty, which is renowned for producing high-quality, wine-friendly stemware which delivers the bouquet, taste, balance and finish of a wine to the senses. . .

Farming will adapt

The wailing and gnashing of teeth about New Zealand’s response to climate change is generally motivated by politics rather than environmental concerns.

Anyone who thinks that beggaring our economy to reduce greenhouse gases will make any significant impact on the climate doesn’t understand the numbers.

Our emissions are tiny by world standards and most come from animals which provide protein, the bulk of which is exported.

If we reduce our contribution to feeding the world, farmers in other countries will fill the gap and almost certainly do so in a less efficient and environmentally sustainable way than we do it here.

While the wailers and gnashers are getting political, others, like Federated Farmers’ President Bruce Wills,  are being practical.

As the climate has always changed there are negatives, yes, but many positives too. A more Mediterranean climate may bring new pests and diseases but it will also see off many cold climate ailments too.  

Take Northland, which by the end of this century, could end up with a climate similar to that found in southern Queensland. 

For livestock farmers that will see what they farm and even genetic lines tailored to regional climates.

It may mean commercial crops of soybean, sorghum and potentially rice may become possible.

From reading I even understand everything from mangoes to Thai galangalginger is found in Northland.  Among these and other tropical fruit could be the next ‘Chinese gooseberry’ breakthrough.  It is not beyond the realm of fantasy that even Oil Palm could one day become viable. 

My point is that farming will continue but its nature will evolve and adapt.  We must be open-minded about the possibilities and ensure we have all the tools in place to turn challenges into opportunities.

Take the engine room of any farm; its pasture and crops. We are already seeing a renaissance in deep-rooted Lucerne championed by farmer Doug Avery.

You can add to that drought tolerant crops of chicory, plantain and not to mention deciduous trees like poplars and willows. New cultivars of drought-resistant pasture will also come forward as we add new tools to our toolbox.

Our farm pastures are also a significant if unheralded environmental tool. 

They are arguably our best means of keeping nutrients on-farm and out of water yet it needs three things to flourish; high soil temperatures, long sunshine hours and water. . .

He points out we have tow of these three, but need more of the third.

The Opuha Dam has effectively drought-proofed a large swathe of South Canterbury.

Opuha has been lauded by Labour and National politicians. Even Dr Russel Norman seemed impressed when Federated Farmers hosted him there several years ago. It provides water for farms, an environment for aquatic life, a place to recreate and minimum flows to the formerly summer dry Opihi River.

Economically, it has exceeded all expectations but it also opened back in 1998 and remains our sole example of modern water storage.

For intensive cropping, dairy and horticulture, the benefits of irrigation are self-evident.  Yet much irrigation is dependent upon groundwater or river takes and both are affected by drought or just summer.

Capturing and storing water during winter frees irrigators from river takes and groundwater.

Yet water storage is also a breakthrough for drystock farming too. Irrigating even 20 hectares of a farm becomes a pasture generator reducing that climatic lottery we currently have. 

According to the ANZ Bank the current drought has already cost New Zealand over a billion dollars. Irrigation NZ estimates this sum, if invested in water storage projects, could future proof Canterbury for the next 100 years.

Like Irrigation NZ, Federated believes the solution lies in a combination of regional and on-farm water storage.

Farmers are smart adaptive people but as our climate will change, isn’t it smarter for public policy to enable the solutions we will all need to meet it?

Is it a coincidence that the same people who don’t think we’re doing enough to combat climate change are often the ones who are likely to oppose water storage which is one of the best ways to adapt to it?

Or is it proof that they are more focussed on political problems than practical solutions?

Govt doesn’t give special treatment to drought-hit farmers

The declaration of drought and assistance to farmers has led to accusations that farmers get special treatment.

Federated Farmers’ President Bruce Wills says that isn’t so:

Talkback callers say small businesses cannot get government bailouts so why should farmers?  We agree with that statement 100 Percent.

Agriculture had state intervention in the 1970’s and 80’s and not only did it not work, it destroyed lives – something I was reminded of when talking to the Otago Daily Times’ Neal Wallace, who is writing a book on the Rogernonmics era.

It may be the curse of the ‘here and now’ but the late great Sir Peter Elworthy, when President of Federated Farmers, gave Labour the impetus to end subsidies.  This also means we cannot rock up to the Beehive when it stops raining to be given an envelope of cash so long as we give some ‘secret farmers handshake’.  That is fantasy.

It is not hard to Google Rural Assistance Payments via Work and Income and read the criteria. To the credit of most media that is what they have done. 

A RAP is the dole and as such is means and asset tested like any other benefit. For the avoidance of doubt testing includes trusts too.  One member of the media who called our comms team late on Friday believed there had been zero applications.  We will check that out.

Farm businesses are no different to any other so we don’t expect or want government to ‘bail us out’.  If you don’t believe me examine Vote Agriculture & Forestry from Budget 2012.

You will find the budget for Adverse Climatic Events, to provide recovery assistance in the aftermath of adverse events and to assist rural support trusts, is $526,000.  As a point of comparison policy advice to government ‘on the community and voluntary sector’ is some three times greater than the entire budget for Adverse Climatic Events.

This budget is also only unlocked by an adverse events declaration. Sadly it is getting a top-up because the last time drought was this bad was 1983.

Then again the rural support trusts who deliver services are run by volunteers on the smell of an oily rag.  These trusts are about supporting a community to help itself and it was that kind of ethos we bought to Christchurch with the Farmy Army.

As Katie Milne added in her blogger response, “you must be pretty heartless to say that because you are a farming family who has lost everything or pretty much close to it, that you must be banned from our social welfare safety net just because your occupation was farmer”.  The same safety net rightfully is there for Café owners caught out by the economy right through to lawyers falling on desperate times. . . 

The RAP is available only to those in the most desperate circumstance, the ones who’d get emergency assistance if they turned up at WINZ.

Any other help is directed at animal welfare and community assistance.

The latter highlights the fact that a drought hits businesses, not just farms but enterprises which support and supply them, across whole regions.

That is very different from an isolated business failure here or there, which is tough for those directly affected but doesn’t have nearly so wide an impact beyond them.

But this is community support. It is not provide a subsidy or direct financial help for individual farmers or their businesses.

New Zealand farmers were brought into the real world without subsidies in the 1980s and even during droughts they’d be foolish to want to go back there.

Rural round-up

North Island drought confirmed. West Coast makes request:

Federated Farmers welcomes confirmation that the entire North Island has been declared a medium scale adverse event due to drought. The West Coast is today forwarding its request to the Ministry for Primary Industries for a medium scale adverse event declaration.

“The 2012-13 drought came late in the season but is North Island wide and that’s something Wellingtonians know all too well,” says Katie Milne, Federated Farmers Adverse Events spokesperson.

“I can now confirm the West Coast of the South Island is also requesting a medium scale adverse event declaration due to drought. . .

Dairy Farmers Say Core Financial Skills Getting Them Through Summer Drought:

As drought bites throughout the North Island, Kevin White is one dairy farmer who, at first glance, seems to have a secret for staving off panic.

Kevin has farmed for seven years and currently manages a 350-cow herd just south of Te Aroha. He says he’s like every other dairy farmer around the North Island, in that he’s watching the clouds and hoping for rain. In the meantime, he says the key to getting through and managing anxiety levels is pretty simple: have a plan.

He completed the National Diploma in Agribusiness Management two years ago, having started it during the last drought in 2007/08, and says, “one major thing I took away was that smart farmers always have a contingency plan in place for the worst case scenarios – in this case a major drought. . .

Farm Days Starring Fonterra Milk Tankers And Milk This Weekend And Next:

Fonterra Cooperative Group is bringing its high-tech milk tankers to the special ‘Farming in Drought’ Farm Days taking place this Sunday, March 17, in Wellington and Rotorua and next weekend in Tauranga (Sunday, March 24). Farm Day is completely free and is open to the public.

“Every one at Federated Farmers thanks Fonterra Cooperative Group because these milk tankers could rival the Star Ship Enterprise,” says Bruce Wills, Federated Farmers President.

“What is more Fonterra is bringing wholesome milk products to try. A taster for Fonterra Milk in Schools, which by Term One next year, will see most New Zealand primary-aged children enjoying the goodness of dairy every school day through free milk in schools.

“It is truly exciting to have New Zealand’s largest cooperative and exporter partnering with us on Farm Days 2013. . . .

Don’t Wait for Rain, Drill Now:

A leading world authority on soil science is recommending that, even in severe drought conditions, farmers should be drilling new seed now.

Dr John Baker says even after weeks of drought, seeds can still survive in the ground until the weather breaks. He explains that dry sowing is common in Australia and even Wairarapa.

There could still be moisture vapour in the soil even if there’s no usable liquid moisture present he says. But even if there’s no moisture vapour the seeds won’t come to any harm until it rains. . .

Kapiti Most Awarded Cheesemaker:

Kapiti has received the highest number of awards at the 2013 Champion of Cheese Awards, taking away a total of four category trophies and 22 medals.
Fifty nine cheese companies entered 413 cheeses in this year’s competition, with the winners announced at a gala dinner and awards ceremony at The Langham.

As well as winning the Champion Washed Rind, Champion Blue Cheese, New World Champion Favourite and Champion Original Cheese category trophies, Kapiti cheeses won a slew of gold, silver and bronze medals for a wide range of their cheese across almost all categories.

Founded in 1984, Kapiti prides itself on being dedicated to using the finest New Zealand produce to create cheese which is original, unique and handcrafted. . .

Trees on Farms Workshop:

The first Trees on Farms workshop for 2013 focuses on riparian plantings, a hot topic for the country’s dairy farmers.

The Sustainable Dairying: Water Accord is set to be in place for the start of the dairy season in August, and will cover all of the country’s 12,000 dairy farmers, not just Fonterra suppliers. Every Fonterra farmer’s annual Farm Dairy and Environmental assessment and the company’s conditions of supply require all Accord-type waterways to be fenced by the end of this year. But fencing off waterways is only part of the sustainable dairying equation – dairy farmers also need to get their heads around how to plant and manage their riparian areas.

This straight talking workshop has been specifically designed for dairy farmers, by dairy farmers, all locals and all experienced tree planters, and will particularly look at how riparian planting can provide cost effective, sustainable long term land use solutions. . .

Sweet as! Long hot summer results in delicious tomato crop at great prices:

The long hot summer has proved the ideal climate for tomato growing, with a bumper crop of sweet ripe fruit.

TomatoesNZ, Vice Chairman, Frank Van Rijen said that with tomatoes retailing around $2/kg it’s an ideal time to enjoy plenty of your favourite tomato recipes.

“Fresh tomatoes are great eating and excellent value right now,” said Mr Van Rijen. “If you are planning on making preserves or pasta sauces or soups to bottle or freeze for winter, then this is also the ideal time to take advantage of great seasonal prices. . .

Organic Lamb All About Queenstown:

Twin Rivers Organic Lamb launches today to bring local organic lamb cuts and whole lambs to Queenstown through its online store.

“The need to localise food and celebrate New Zealand Produce is so important. We want to share that with kiwis in a way they can relate to though.”

“People live in Queenstown for the lifestyle and that’s what we wanted to promoteeating quality meat and produce with good friends and family in a beautiful place. We love it.” Said company Director Dave Hockly. . .

Young talent to be tested in Gore:

Eight of the best Young Farmers will be competing at the Otago-Southland Regional Final Saturday 23 March in Gore for the 2013 ANZ Young Farmer Contest.

Contest hopefuls will complete four different Challenges during the Practical Day at the Southern Field Days Site and then straight into the Evening Show at the St James Theatre.

By the end of the evening one contestant will have secured their spot at the Grand Final (16-18 May, Auckland) and their share of the Regional Prize Pool worth $13,000 thanks to ANZ, AGMARDT, Lincoln University, Ravensdown, Silver Fern Farms, Honda, and Husqvarna. The top prize is worth an impressive $9000. . . .

Drought pin to prick dollar balloon

Quote of the day:

. . . Right now our dollar is a balloon and drought declarations ought to be the sharp pin. Given the droughts of 2007-9 cost New Zealand $2.8 billion and were tipping points for the last recession, investors buying the Kiwi ignore reality at their peril. Bruce Wills, Federated Farmers president.

He was writing on the impact of the drought which ANZ puts it at $1 billion and counting.

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

Primary industry experts on National Science Challenges panel on National Science Challenges Panel:

Federated Farmers is excited three experts from the primary industries are part of the eleven person panel charged with identifying New Zealand’s science challenges.

“We are excited to see the primary industries are part of tomorrow’s world,” says Dr William Rolleston, Federated Farmers spokesperson on food production sciences.

“We have three experts representing the primary industries and this underscores that primary food production and value-added processing is not just about the now, but the future too.

“Plant and Food Research’s Chief Scientist, Dr Ian Ferguson and Waikato University’s Professor Jacqueline Rowarth are highly regarded scientists.

“Both have received Royal Honours for their contribution with Professor Rowarth being a former Federated Farmers Agri-Personality of the Year. . .

Range of investors expected in regional irrigation schemes:

The superannuation fund, ACC and other private equity funds are expected to be among key investors in regional irrigation schemes, partnering with the state and regional councils.

The Government will set up a company to spend an initial $80 million on irrigation projects.

Paul Callow, a Deloitte’s partner who specialises in infrastructure and energy, says the Crown-owned company will operate like Crown Fibre Holdings, which was set up for the rollout of ultra-fast broadband.

He says the problem with projects like irrigation is that a very large capital investment is needed when there is an uncertain uptake and the private sector is not usually very enthusiastic about that risk profile. . .

Primary ITO welcomes changes to apprenticeship schemes:

The Primary Industry Training Organisation (Primary ITO) welcomes the new apprenticeship initiatives announced by government following the 18-month industry training review. Primary ITO is one of the largest ITO’s in New Zealand, facilitating training in the agriculture, horticulture, equine, water and sports turf sectors.

As the primary industry is one of New Zealand’s most important sectors, investing in the skills and knowledge of our people ensures the primary sector continues to thrive. Agricultural and horticultural products account for 40% of New Zealand’s exports. Education is vital to ensuring the productivity and profitability of the primary industries.

The recently announced changes mean that Modern Apprenticeships and other apprenticeship-type training will come under an expanded and improved scheme called New Zealand Apprenticeships. . .

First Steps to Better Farm Business Governance -  Pasture to Profit:

Good Farm Governance…”A process of Getting Advice to provide a Better Perspective”

Good Governance, Management and Operational efficiency are critical to all dairy farm businesses.

First Step to Better Farm Business Governance is to separate the Farm roles.

On every dairy farm there are Operational tasks where most dairy farmers spend most of their time (day to day routine jobs). The Management role which is making tactical decisions (organising & controlling land, resources & people).  Management is about making decisions. These tactical decisions often relate to this week or over the next one or two months.

Governance is the big picture strategy “what business are we really in? What personal & family values are really important to our business? . .

2013 AgriKidsNZ Competition set to sizzle:

The AgriKidsNZ Competition is about to launch into the Regional Finals stage around New Zealand and over 600 Primary School children are in agreement that the Regionals are the place to be!

New Zealand Young Farmers (NZYF) organise the competitions which take place alongside the ANZ Young Farmer Contest Regional Finals and TeenAg Competitions from February 9th to March 31st. The first AgriKidsNZ Regional Final takes place this weekend on Saturday 9th February in Whangarei at the Barge Park Showgrounds.

Teams of three will be tested on their knowledge of all things farming and all things New Zealand and after a whopping 600 children competed last year, organisers are looking forward to more of the same great action this year. . .

Loving the man and the land – Art 4 Agriculture:

Today’s guest blog by journalist turned farmer Bessie Blore comes to us with these words of wisdon

… there is room for fresh blood in our farming future, and there are new, inspiring, exciting stories to be started from today…

Bessie story is a fascinating and very entertaining tale.indeed. I don’t know about you but when I read this I thought to myself this must be one handsome man and one special girl.

Now we’re the only two human inhabitants of “Burragan,” 70,000 acres of grazing land, more than 100 kilometres from the closest town of Wilcannia. And over the past 24 months I have developed a passion for life on the land, and wool growing in particular, that borders on crazed and psychotic at times, I’m sure most of my city friends think I’m far too enthusiastic about dirt, sheep, and isolation.

Seriously 100 km from the closest town!!!!. You would want to pay close attention to detail writing the grocery list. . .

And:

Dairy leads farm confidence survey

Federated Farmers’ 2012/13 Mid-Season Farm Confidence Survey reveals any increase in farmer confidence is largely confined to the dairy sector and even that comes off a low base.

“At the mid-point in what is a tough 2012/13 season, we are seeing some improvement in confidence since the start of this season. That masks a real split between dairy and the rest of pastoral agriculture,” says Federated Farmers President, Bruce Wills.

“Undoubtedly rising global dairy prices and upward revisions in payout forecasts have helped the dairy sector regain some confidence. Then again, this comes off deep pessimism recorded at the start of the season and things are hardly buoyant now.

“Then we have the strong Kiwi dollar acting like a sea anchor on all export returns.

“What dairy farmers are saying is that they are less pessimistic but this is not the breaking of a new dawn. The good news for the economy is that dairy farmers expect to increase production and spending, with only a small drop in those expecting to reduce debt.

“On the other hand, in the sheep, beef and grain sectors, confidence continues to sink. Meat and fibre farmers have seen prices reverse while the high dollar erodes what they ultimately get paid.

“Beef had been treading water but just this week dropped ten cents per kilogram.

“Sheep farmers are feeling the heat because lamb prices are down around 35 percent on the same time last year. Wool is also struggling and this has seen meat and fibre farmers become even more pessimistic about their profitability.

“That pessimism continues into the wider economy, with a growing sense of frustration about filling skilled vacancies.

“All farmers agree they are struggling to find skilled and motivated staff and this seems odd given unemployment figures. Skilled and motivated dairy staff are especially hard to find so is there a mismatch between where people live as opposed to where the jobs are?

“And these jobs are not low skilled or low paid either. I can say that having reviewed Federated Farmers Farm Remuneration survey we send to our members.

We’ve always had less trouble finding good people for sheep and beef farms than for dairying.

However, the good ones we’ve got in dairying are very good – enthusiastic, motivated and skilled.

“Unlike last season, the mild El Nino means sheep and beef production will likely be down this season. Sheep and beef farmers cannot increase production to offset lower prices and the high dollar.

“As the survey was in the field in the first half of January, the current dry spell will be of mounting concern. We are also aware the ‘dry’ is now biting into dairy production in the North Island especially.

It’s been raining off and on in North Otago all morning which is very welcome after the hot weather of the last couple of weeks.

“While some dairy farmers expect to increase debt most do not, however, more meat and fibre farmers expect to reduce spending and increase debt to get through. It is a concern as agricultural debt approaches $50bn, then again, households now owe over $191bn.

“You can summarise the big issues of concern to farmers as the increasing cost of farming staples, including the cost of regulation and compliance, what we are getting paid for our products and of course, that high Kiwi dollar.

The high dollar also means imports, including big ticket ones like fuel, fertiliser and machinery, are less expensive.

When debt servicing is a major cost, low interest rates are also benefiting farmers.

“It underscores the need for the Government to focus its spending on those things that will increase production while simplifying and streamlining regulation. It may not be ‘sexy’ but it is what the economy desperately needs.

“Tackling the high dollar starts not with a printing press, but by central and local government cutting back on borrowing. While some agriculture debt is about survival, government still has an entrenched ‘borrow and spend’ culture that needs to change.

“Cutting seems to be the policy option ‘that dare not speak its name’ in some quarters.

“Our 2012/13 Mid-Season Farm Confidence Survey shows pastoral farming to be in two speeds. It is encouraging that dairy farmers are more positive than six months ago, but the deepening pessimism of meat and fibre and our grain farmers is concerning.

“We can only hope the second half of the 2012/13 season turns around because the global demand is there and the recently announced Primary Growth Partnership for red meat must deliver what Federated Farmers has striven for; unity,” Mr Wills concluded.

Survey results are here.