Fonterra drops payout, ups dividend

September 24, 2014

Fonterra has dropped its forecast payout for this season but increased the forecast dividend:

Fonterra Co-operative Group Limited today reduced its forecast Farmgate Milk Price for the 2014/15 season from $6.00 to $5.30 per kgMS, and increased and widened the estimated dividend range from 20-25 cents per share to 25-35 cents – amounting to a forecast Cash Payout of $5.55-$5.65 for the current season.

Chairman John Wilson said the lower forecast Farmgate Milk Price reflected continuing volatility, with the GlobalDairyTrade price index declining 6 per cent in the past two trading events.

“The market is currently influenced by strong milk production globally, the impact of Russia’s ban on the importation of dairy products, and the levels of inventory in China. Some relief has been provided by exchange rates, with the NZ dollar recently showing some signs of falling against the US dollar.

“Under the current market conditions, there is further downside risk.  However, the forecast reflects expectations that prices will increase in the medium term,” Mr Wilson said.

Chief Executive Theo Spierings said the estimated dividend range reflected the positive impact of a lower forecast Farmgate Milk Price on product margins but also significant volatility in commodity prices.

“A lower forecast Farmgate Milk Price reduces input costs in our consumer and foodservice businesses. In turn, we do expect to deliver increased returns as a result of a recovery in margins on our products.

“In addition, stream returns for Non-Reference Commodity Products such as cheese and casein are currently making a positive earnings contribution, but it is still very early in the financial year.

“With volatility in commodity prices, a wide range of outcomes are possible in relation to stream returns. The wider dividend range reflects this volatility, and at this stage of the financial year, it is not realistic to be able to accurately forecast the final result for the year within a narrower range.”

Mr Wilson said that the forecast Farmgate Milk Price remained reliant on increasing dairy prices in the medium term.

“The forecast Farmgate Milk Price is reduced based on current estimates of future pricing. There remains significant volatility in international dairy commodity prices and given this, this forecast is our best judgment at this time.

“As always, we recommend caution with regards to on-farm budgets in this environment of continuing uncertainty.”

The news wasn’t all bad. Fonterra confirmed a record payout for last season:

Fonterra Co-operative Group announced today a final Cash Payout of $8.50 for the 2014 year for a 100 percent share-backed farmer, comprising a Farmgate Milk Price of $8.40 per kgMS and a dividend of 10 cents per share.

Chairman John Wilson said that the Cash Payout to the Co-operative’s 10,500 farmer shareholders was the highest ever made since Fonterra’s formation in 2001.

“The Farmgate Milk Price on its own represents an injection of more than $13.3 billion to the New Zealand economy for the season.

“It is a strong result, reflecting the determination of our farmer shareholders to lift on-farm performance, matched within the business by a focus on driving revenue.

“Our farmers took advantage of good conditions to produce 1,584 million kgMS, eight percent more than last season, to make the most of the good prevailing prices early in the season.

“North Island volumes were up nine percent at 969 million kgMS, while the South Island delivered a seven per cent rise in volumes to 615 million kgMS.

“A very good spring saw our farmer shareholders achieve record milk production through an extended peak, stretching our production capacity for powders. This led to early impacts on stream returns from the less valuable products we were forced to make.”

Fonterra CEO Theo Spierings said the Co-operative had come through a very demanding year.

“We have continued to stay on track with our strategy, focusing on securing the best returns to our farmer shareholders.

“We achieved record revenue of $22.3 billion for the year, a direct result of the focus on achieving the highest possible revenue line that is good for the Farmgate Milk Price.

“Constrained margins in our foodservice and consumer businesses and on non-milk powder products were the knock-on effect, contributing to a 27 per cent rise to $19.8 billion in the cost of goods sold. However, we maintained our focus on efficiency and achieved a two per cent reduction of $46 million in our operating costs.

“Our higher cost of goods sold, along with higher interest and taxation, saw our net profit after tax decline by 76 per cent to $179 million.” . . .

The cut in this season’s forecast was expected and last season’s record payout will be some compensation.

However, the reduced payout will impact not just on farmers but the people and businesses who service and supply them and the wider economy.

When the price goes up there’s always calls from the left for farmers to subsidise consumers.

There won’t be a call to subsidise farmers now the price has gone down, nor would we want it.


Rural round-up

September 15, 2014

Forestry workers dodge poachers’ bullets – Sonita Chandar:

Forestry workers are dodging bullets from poachers, says a forest manager.

They are being fired at by people hunting wild pigs illegally released in the private forests.

”Our staff shouldn’t have to worry about going to work and being shot, but this is the reality,” said Phil De La Mare, Otago regional manager for forestry plantation company, Ernslaw One.

”These unpermitted hunters forget it is a workplace and go shooting any time, even when there are people out working.

”Their actions are putting our staff and contractors in a risky situation and for us.

”Providing a safe workplace environment has become a challenge.” . .

 Putting Rustling back into the history books – Rick Powdrell:

Contrary to talk, the meat and fibre industries are not broken as the fundamentals to take both sectors forward to much greater heights remain. Still, it requires an entire industry shared vision going forward and that’s of course easier said than done.

 This undoubtedly involves strong leadership accompanied by a strong grassroots involvement.  It hardly entails re-inventing the wheel, but rather more awareness of the areas we need to improve and a path developed to redeem theses issues.

 The red meat sector strategy has already identified significant issues, with the Beef + Lamb: Red Meat Profit Partnership focusing on topics behind the farm gate with the aim of lifting on farm performance.

 This collaboration of Beef + Lamb NZ, meat companies, banks and government foreshadows a united industry approach. . .

NZ exports to EU may face stricter pesticide standards – Yvonne O’Hara:

New Zealand’s fruit and vegetable export trade to Europe could be affected by as much as $600 million if a proposed European Union (EU) reduction of some pesticide residue levels on imported food goes ahead, Agcarm chief executive Graeme Peters says.

The European Commission (EC) had been looking at regulating common crop protection products that had endocrine-disrupting properties. The EC believed reducing endocrine-disrupting pesticides would benefit the environment; be good for the health of growers, workers, rural communities and consumers; and boost the economy.

It will release criteria to identify those properties in the next few weeks. . .

Commission releases final report on 2013/14 review of Fonterra’s base milk price calculation:

The Commerce Commission today released its final report on Fonterra’s base milk price calculation for the 2013/14 dairy season. The base milk price is the price Fonterra pays to farmers for raw milk.

The Commission is required to review Fonterra’s calculation of the base milk price each year as part of the Dairy Industry Restructuring Act’s milk price monitoring regime. The review assesses whether Fonterra’s calculation approach provides incentives for it to operate efficiently and provides for contestability in the market for purchasing farmers’ milk.

The most significant issue in this year’s review has been Fonterra’s decision to pay farmers an adjusted price for the 2013/14 season that is less than the milk price calculated under the company’s Milk Price Manual.

The Commission’s overall findings are that the way Fonterra is calculating and applying its proposed adjustment to the base milk price is not consistent with incentives for it to operate efficiently; however, the approach is consistent with contestability in the market under the Act. . .

Field day to give insight into rural work  – Yvonne O’Hara:

Rural Contractors New Zealand (RCNZ) is to hold its second field day on September 17 at Brian Hughes’ yard at Waimatua, near Invercargill, from 10am to 3pm.

RCNZ vice-president and contractor David Kean, of Centre Bush, said the field day, held in association with Work and Income, encouraged people to find out what it was like working in the agricultural contracting sector.

”People can drift in and drift out again throughout the day,” Mr Kean said.

Those attending the field day would have the opportunity to drive large tractors and operate an assortment of machinery under supervision. . .

Farmers’ need for speed – Chris Lewis:

We are ready when you are, and we have been ready for some time. The key investors and the next government need to know farmers and rural households are sick of the inferior connectivity they are receiving. We are in the need for speed and reliable connectivity; it is not only imperative for rural productivity, but for empowering rural households.

The agricultural industry generates 73 percent of New Zealand’s merchandise exports, so you would think that the powers and investors that be, would recognise a gaping hole when they see it. What is not ok is that whilst rural businesses and households are paying for the same services as our urban counterparts, we are not getting the same results.

Market research proves rural New Zealand is being neglected. We are armed with the latest devices, on average 9 connectable devices per business and 5 to 6 of those connected at one time, but have limited infrastructure to use them. Chorus recently went to the rural market through Colmar Brunton to find out exactly what we have been dealing with, and it should come as no surprise that they found we have the same level of needs as urban businesses and households. . .

In Burundi, Viola Nsengiyumva turns two acres into a profitable business - Food Tank:

Viola looks out over the two acres of land she and her husband, Deo, inherited from her father. The fields are thick with bushy, yellow-green vines. The beans are ready to be harvested.

Two and a half years ago, Viola’s fields were nearly bare. Even though she and Deo had land, they could not afford the seed and fertilizer needed to plant on all of it. Harvests were low, with just enough to feed the family. There was no surplus to sell for income.

“Before One Acre Fund, we would just manage to have enough to eat. We couldn’t sell anything we grew,” Viola says. “I would go to purchase fertilizer, but I would not be able to buy enough.” . . .

Do You Have the Correct Licence for the Coming Season?:

Rural Contractors New Zealand (RCNZ) is urging its members to ensure they have all the correct transport licences for the coming season.

RCNZ president Steve Levet says with the new season fast approaching it is timely for rural contractors and their staff to check to see they have the correct licence AND a ‘Wheels Endorsements’ if required.

“It is incumbent on rural contractors to ensure both they and their staff have all the correct licences when moving their tractors and machinery around the country,” he adds.

“There are no excuses for not having the correct licenses and/or wheels endorsement. If contractors are not sure they should find out – all the necessary information is under the members section of our website: www.ruralcontractors.org.nz .”

Mr Levet says the different types of licences rural contractors may require include: . . .


Rural round-up

September 6, 2014

All change this election -Andrew Hoggard :

This election hasn’t been the best advertisement for democracy.  I cannot recall when a Minister quit Cabinet during an election campaign but the actions of bloggers, hackers, emails and a political feeding frenzy, distract us from the real issues.

I’m pretty certain my Grandfather, who spent close on four years inside POW camps, would be spitting tacks if he were still around today and saw the impact a German playboy was having on our democracy.

After the election we could see political parties giving two fingers to the traditional baubles of office in favour of what’s called the cross-benches. What that means in practice is that the Opposition cannot afford to attack you while the government has to go cap and hand on every single policy.  It makes for electoral gridlock.  A tyranny of the minority.

I’d like to give this farce a wide berth but it impacts upon what farmers do. . .

World is a step closer to low-emission sheep – Jamie Morton:

The world is a step closer to a low-emission sheep, thanks to leading work by Kiwi and US researchers.

Methane belched from sheep and other ruminants, such as cows, accounts for around 28 per cent of global methane emissions from human-related activities.

The methane is produced in the rumen by microbes called methanogens and the work targeting these organisms is aimed at reducing methane emissions from ruminants.

New Zealand has the largest methane emission rate — six times the global average — and this primarily comes from enteric fermentation in ruminant livestock, with sheep the greatest single source. . . .

Move to save yarn business – Alan Williams:

Primary Wool Co-operative (PWC) group has confirmed its bid to save the last wool-spinning business in the southern hemisphere, Christchurch Yarns (NZ).

It has given itself less than a month to raise $3 million in equity to fund the purchase of the operating assets of Christchurch Yarns from the company’s receiver.

Directors and main shareholders Bay and Hamish de Lautour are putting in $150,000 between them to a new company, NZ Yarn, as a show of confidence to other potential investors. . . .

Taratahi Signs MOU with China:

On September 4 Taratahi Agricultural Training Centre signed a memorandum of understanding with the China Rural Technology Development Centre (CRTD).

CRTDC sits under the Ministry of Science and Technology. They are committed to promoting technological progress for all aspects of rural development in China by maintaining close ties with relevant rural science and technology management authorities, research institutes and universities in China as well as other international organisations.

The MOU focuses on improving the cooperation between New Zealand and China in terms of agricultural policy research, technology training and livestock breeding and encourages cooperation and communication of the governments, universities and corporations of both countries, to improve global agricultural sustainable development. . .

 

Butter prices soar in the US:

Butter futures reached an all-time high in Chicago as Americans’ rising appetite for the fatty dairy spread and rising exports erode US inventories.

Domestic consumption is projected to rise 0.8 per cent to 788,000 metric tons in 2014, according to the US Department of Agriculture. That would be the second-highest ever in data going back to 1965. Shipments in the first six months of the year were up 42 per cent from 2013.

Demand is rising as milk production trailed analyst expectations, while fat content, used to make butter, is also dropping, according to Eric Meyer, the president of Chicago-based HighGround Dairy. . .

Nominations Have Closed for the 2014 Fonterra Elections:

Nominations for the 2014 Fonterra Elections closed at 12 noon today.

The candidates for the Fonterra Board of Directors’ Election will be announced on Tuesday, 23 September 2014 following the completion of the Candidate Assessment Panel (CAP) process.

The Returning Officer, Warwick Lampp, confirmed there will be no election for the Directors’ Remuneration Committee, as Shareholders Murray Holdaway and Philip Wilson have been elected unopposed.

Nominations were also called for candidates for the Shareholders’ Council in 22 wards. An election is required in four wards, as follows: . . .

 

Give other options a ‘WIRL’ – Wools of New Zealand:

Wool research behind the farm gate was important but needed to be attached to work already being undertaken in the wool industry, says Wools of New Zealand in its wool levy position paper released today.

The grower owned wool marketing and sales company says while it is important for all growers to have their say, they need to be “armed with the facts relating to costs, benefits and possible alternatives before they vote.”

While WNZ agrees there is a need for additional training and tech transfer both inside the farm gate and beyond, it believes these functions can be provided by existing agencies such as Tectra and AgITO while there were also other options to creating yet another structure in an already cluttered industry. . .

 


Rural round-up

September 4, 2014

New Season Looking Positive for Sheep And Beef Farmers:

New Zealand sheep and beef farmers can look forward to a positive 2014-15 season, according to analysis released by Beef + Lamb New Zealand’s (B+LNZ) Economic Service today.

B+LNZ Economic Service executive director, Rob Davison says the season’s favourable climatic conditions so far, expected higher product prices and a more export-friendly exchange rate collectively translate to improved returns for the country’s sheep and beef farmers.

New Season Outlook 2014-15 predicts the average sheep and beef farm profit before tax will increase 8.0 per cent on last season, to $110,800.

Mr Davison says a 6.3 per cent lift in sheep revenue is largely responsible for the increase, while total farm expenditure should only rise by an average of 2.3 per cent. . .

 Unravelling the schedule gap between North and South Islands – Allan Barber:

Every year when livestock numbers pass their peak in the North Island, there is a constant stream of trucks carting stock across the Cook Strait to plants for slaughter. There are two obvious reasons for this – either there isn’t enough South Island capacity at the time or the cost of procurement plus transport is less than the price in the North Island.

 These two explanations are two sides of the same coin, because there is no need for South Island processors to pay more than they have to when their plants are full. This is even more evident from the species with the largest price gap which is cull cows, possibly wider than it has ever been. However there is absolutely no point in paying dairy farmers over the odds for what is a fully depreciated asset they have to get rid of. . . .

Rock Lobster Industry Welcomes Prime Minister’s Pledge of Farmland Buffer Zones:

The New Zealand Rock Lobster Industry Council has today praised the National Party pledge to spend $100 million over 10 years to buy and retire farmland next to waterways to provide a buffer and improve water quality.

The pledge was made by Prime Minister John Key in Southland this morning.

Rock Lobster Executive Officer Daryl Sykes says the National Party pledge represents an appropriate recognition of the quality and integrity of private property rights and invokes market mechanisms to resolve concerns about the natural environment. . .

Independent Inquiry Welcomes Fonterra Progress:

The Independent Inquiry Committee which reviewed the circumstances giving rise to the precautionary recall of whey protein concentrate (WPC80) last year has welcomed Fonterra’s progress on implementing recommended improvements.

The Committee completed a nine-month checkpoint on Fonterra’s progress which itself was one of the Committee’s recommendations.

Committee Chair Sir Ralph Norris said the Co-operative’s leadership had taken responsible measures to distil the Inquiry’s recommendations into a significant programme of work. . . .

 Seeka offers kiwifruit growers share incentive in exchange for trays – Suze Metherell:

 (BusinessDesk) – Seeka Kiwifruit Industries, the fruit grower and coolstore and packhouse operator, is looking to secure kiwifruit supply over the next three years by offering growers shares in return for exclusive supply from their orchards.

Under the growers incentive scheme eligible growers will be issued new shares annually in proportion to the number of trays provided, at a rate of 10 cents worth of shares to every tray, until 2016, the Te Puke-based company said in statement. Seeka shares were unchanged near a five-year high at $3.29 on the NZX and have gained 57 percent this year.

Local kiwifruit growers have been struggling with the outbreak of Pseudomonas syringae PV actinidiae in 2010, which infected about 40 percent of the nation’s orchards, with gold fruit varieties hardest hit. Seeka expects the gold market to double in 2015 once re-grafted SunGold orchards reach commercial volume. . . .

Rural Equities doubles annual profit on record milk production and prices – Suze Metherell:

(BusinessDesk) – Rural Equities, the farming group controlled by the Cushing family, doubled annual profit and lifted its dividend 17 percent on the back of record dairy production and prices.

Profit rose to $24 million in the 12 months ended June 30, up from $10.9 million a year earlier, the Hastings-based company said in a statement. Operating earnings before interest and tax doubled to $6.43 million from $3.33 million, as its six dairy farms produced a record 1.67 million kilograms of milk solids and the price of dairy products soared.

Production at its three Waikato farms benefited from rising beef, lamb and wool prices, and “contributed materially to increased earnings,” the company said. . . .

Oz turns to selfies in free trade bid:

AUSTRALIAN DAIRY Farmers (ADF) have launched a selfie campaign to push for a China free trade agreement which they say will put them on an equal footing with New Zealand farmers.

 It says the campaign had reached 1.6 million Twitter users by today, September 2. ADF is urging all Australians to get behind its #FTA4dairy ‘selfie’ campaign to help secure a China-Australia free trade agreement (FTA) which could see $30 million in tariff savings per year placed back into the pockets of Australians.

Showing your support is as simple as uploading a #FTA4dairy selfie holding up a postive message, and posting it online incorporating the #FTA4dairy and #FTA4farmers hashtags, the group says. . .

The Campaign for Wool partners with the Harris Tweed Ride:

On Sunday 31st August, tweed clad ladies and gents from all over Scotland gathered outside the luxury Blythswood Square Hotel for the annual Harris Tweed ride, this year in partnership with the Campaign for Wool.

The Harris Tweed ride has continued to become increasingly popular with this year’s ride being no exception. Over 120 cyclists and wool lovers took part in the ride covering Glasgow Green and Kelvingrove Park taking in some of Glasgow’s most iconic sites as well as guiding riders past some of Glasgow’s top dining establishments. . .

 

 


Rural round-up

September 2, 2014

Farming app in running for award – Phillipa Webb:

A Manawatu-developed smartphone app could see dairy farmers spending more time on smartphones and less time in paddocks.

The Grass2Milk app developed by the OneFarm Centre of Excellence in Farm Business Management – a joint venture by Massey and Lincoln universities – was shortlisted in the environmental category of the 2014 World Summit Award mobile competition.

Massey University agri-business student Hamish Hammond helped to test the app, which allowed farmers to see whether herds were fed enough to reach daily milk and body condition targets to plan feed allocations for the day.

“Most farmers would be really intuitive when it comes to feeding, but they could use [the app] as a gauge.” . . .

China deal factor in Fonterra’s lower credit rating – Sally Rae:

Fonterra’s credit rating has taken a hit following the announcement of its proposed partnership with a Chinese infant food manufacturer.

Credit rating agency Standard and Poor’s has lowered the dairy co-operative’s long-term rating from A+ to A and affirmed its short-term rating of A-1.

Last week, Fonterra said it was forming a global partnership with Beingmate to help meet China’s growing demand for infant formula.

Fonterra’s proposed sizable shareholding in a commercial company operating in China indicated a financial risk appetite that was ”more aggressive” than Standard and Poor’s had factored into the previous rating, credit analyst Brenda Wardlaw said in a statement. . . .

Teasing out the beta-casein evidence – Keith Woodford:

In last week’s column I advocated that the mainstream dairy industry should convert New Zealand herds away from the production of A1 beta-casein. To not do so creates unnecessary long term risk to the industry. However, the mainstream industry remains locked into a defensive position.

In this article I will therefore briefly review some of the major strands of health evidence. I cannot cover it all – it took me a whole book to do so back in 2007. Since then, there has been a lot more evidence forthcoming.

In assessing the evidence, it is helpful to recognise that A1 beta-casein is the consequence of a historical mutation. Goats, sheep camels, buffalo, Asian cattle and humans produce beta-casein that is totally of the A2 type. It is only cows of European ancestry which produce A1 beta-casein. . .

Allied Farmers back in black as livestock unit grows – Paul McBeth:

(BusinessDesk) – Allied Farmers, which is rebuilding from a disastrous takeover of the Hanover and United Finance loan books, returned to profit as its core livestock unit lifted income with gains in Taranaki and Waikato.

The Hawera-based company reported a profit of $1.03 million, or 1.03 cents per share, in the 12 months ended June 30, turning around a loss of $1.12 million, or 2.94 cents, a year earlier, it said in a statement. Revenue in the slimmed down entity shrank 38 percent to $16.9 million.

“The focus for the coming year will be to continue to grow the livestock business and to leverage off the client relationships and trust that exists with those clients to provide value for money services,” chairman Garry Bluett said. “The effect of the reduced dairy payout is likely to have some uncertain impact on dairy livestock sales going forward and the continuing high dollar is already having some impact on meat exports at the early stage of this season.” . . .

 New Zealand firm creates health focused flavoured milk; export potential:

Christchurch-based New Zealand Dairy Brands believes it is a world leader in its sector in the production of health products with the launch of its highly innovative Go Milk flavoured milks.

The range has no added sugar, a low GI (glycaemic loading) and is low fat, making it suitable for diabetics and excellent in the fight against obesity. The product was a recent finalist in the NZIFST awards in the product innovation category.

Just released on New World and Pak n Save supermarket shelves in New Zealand, a trial export shipment of Go Milk has already been sent to China and the product is destined for the Australian market also. . . .

 Compass points new crop direction – Gregor Heard:

RESEARCHERS are excited about the prospects of a new barley variety set to be commercialised next year.

Speaking at a trial walk at last week’s Grains Research and Development Corporation (GRDC) grower update in Horsham, Birchip Cropping Group research agronomist Simon Craig said the Compass variety, developed by the University of Adelaide research team and commercialised by Seednet, showed outstanding promise.

“It looks to have a very good fit right across a range of low to medium rainfall zones.” . . .


Rural round-up

September 1, 2014

Agri-careers promoted - Sally Rae:

Agriculture is ”far more than milking cows and drafting sheep”.

That was the message from Jacqueline Rowarth, professor of agribusiness at Waikato University, to a group of Dunedin secondary school pupils last week.

”It’s everything that New Zealand does because New Zealand business is agribusiness … Our whole lifestyle is from what we export,” she said. . . .

Effluent making power, hot water :

Dairy effluent could be used as a source of heat and electricity on Southland dairy farms.

If trials are successful, the dairy farming waste product could become a valued resource in the future.

Monitoring at two farms in Dacre and Pukerau has shown that anaerobic digestion of dairy farm effluent in unheated effluent ponds, is consistently producing large volumes of methane, even during the cold conditions of the Southland winter. . .

Retiring Fonterra director looks for new challenges  – Gerald Piddock:

Jim van der Poel has lived and breathed Fonterra for more than a decade.

But after serving on the board of the country’s biggest company for 12 years, the Waikato farmer will step down as a director at Fonterra’s annual meeting in November.

A board member since 2002, van der Poel was immensely satisfied with the role he played in Fonterra’s development over the past decade. . .

No excuse now – Richard Rennie:

The right kit, the right market conditions, and high-quality supply mean there will be no excuses for Fonterra’s executive not to deliver higher dividends and milk prices to its shareholders.

Large-scale south Waikato farmer Ian Elliott believes that after last week’s $1.2 billion investment announcement into plant and Chinese market ventures, the company should be poised to achieve its full potential for New Zealand and farmer shareholders.

“Having investment into plants that can produce higher value products removes that last barrier to achieving the optimum returns for farmers,” Elliott said. . .

Time to leverage export dominance -

Fonterra has given its value-creation wheel a strong crank by announcing more processing plant construction at home and a new joint venture with Beingmate, the No 1 infant formula company in China.

Its borrowing intentions of $1.2 billion will increase the debt:equity ratio to 45%.

At home it needs to expand peak processing capacity and avoid the constraints which cost farmers about $900 million last season in foregone revenue. . .

Council approves dam funds -

Hawke’s Bay Regional Council has approved an advance of $3.1 million to the Hawke’s Bay Regional Investment Company (HBRIC) to cover the period until financial close on the Ruataniwha Water Storage Scheme.

The decision was made in a public-excluded session of Wednesday’s council meeting and supported by all councillors present.

Given the lodging of appeals to the High Court on the proposal, financial close for the scheme will no longer occur by September 30, with the best estimate now March 31 next year.

All investment funds contributed by the council in this development phase are part of its overall financial contribution to the Ruataniwha Water Storage Scheme.  . . .

 

 

 


Rural round-up

August 31, 2014

Co-operation at a strategic level – Glenys Christian:

There could be downstream as well as upstream benefits to Fonterra’s $615 million deal with Chinese infant food manufacturer Beingmate, starting at the onfarm level in that country.

Fonterra chairman John Wilson said after the announcement of the move was made on Wednesday that discussions had been held about how the co-operative could help out in other areas.

“Beingmate has its own farms,” he said.

That meant there were opportunities to look at the two companies joining together more in farm management with Fonterra already having one hub of dairy farms up and running in China, a second hub started, and commitment to a third. 

“We’ve had discussions about more alignment,” he said.

“There may be benefits upstream and downstream in the future.” . . .

Honour for noted sheep breeder - Jon Morgan:

In 1956, 23-year-old romney stud breeder Roger Marshall sold his first rams at the Manawatu and West Coast Ram Fair in Feilding. The Rangitikei Mail reported that when the first ram was knocked down at 1400 guineas after spirited bidding the large bench of buyers broke into spontaneous applause.

“I remember being quite worried because it had rained for several days before the sale, and all my rams had wet wool, but to get 1400 guineas was terrific – that was the price of a new Holden car in those days,” the quiet- spoken farmer says. “It was a great incentive for me.”

It was a sparkling opening to a career in sheep breeding that eventually took him to the other side of the world in search of new blood to rejuvenate the sheep industry. . .

A2 poised for US start – Alan Williams:

The strong NZ dollar has cut into reported profits but A2 Milk Company remains confident it can fund development of three new markets from its existing cash and cashflows.

A2 had $16 million cash in the bank at June 30 and is booking strong Australian sales and operating cashflows.

It will use them to build on its slowly developing markets in China and the United Kingdom and to begin sales in the United States next year. . .

Manuka honey sector gets boost with trial expansion:

The lucrative Manuka honey healthcare market is set to expand after New Zealand’s largest farmer, Landcorp Farming, announced it’ll be planting an additional 93 hectares of mānuka honey trees.

The new plantings are part of the High Performance Mānuka Plantations programme — a seven year Primary Growth Partnership (PGP) between the mānuka honey industry and the Ministry for Primary Industries (MPI) to increase the yield and reliability of supply of medical grade mānuka honey.

The PGP trials, involving Landcorp, Hawke’s Bay Regional Council, Comvita, Aborex Industries, Don and Conchita Tweeddale and Nukuhau Carbon Ltd, were launched in 2011 to increase the value of the mānuka honey industry from an estimated $75 million towards $1.2 billion per annum by 2028.

Maori Trustee Te Tumu Paeroa is also a shareholder in the programme. . .

Californian drought is so severe it’s ‘causing the ground to move':

Vanishing water is causing the ground to rise in the western United States, according to a new study.

 Scientists estimate that 63 trillion gallons of water has been lost in the west over the past 18 months. 

The surface of the Earth is much more springy than you might think. When you put something very heavy on it, there’s a good chance the ground will sink at least a little bit. And in the same way, when you remove something very heavy, the ground will lift.

As it turns out, 63 trillion gallons of water is pretty heavy. . . .

Rural Women Drive Post-conflict Recovery in Bosnia and Herzegovina – Food tank:

The International Fund for Agricultural Development‘s (IFAD) Livestock and Rural Finance Development Project has helped transition rural businesses in Bosnia and Herzegovina from the initial stages of post-conflict recovery to long-term sustainable development. The program has financed rural infrastructure redevelopment and provided credit and training to small business owners. This program has particularly focused on reengaging women in the workforce.

On a macro-level, the program has helped to improve producer access to markets. At the local level, the program has encouraged the formation of producers’ associations and helped provide individuals with machinery and technical support services. For example, members of the Nevesinje’s Producers’ Association have received credit and trainings on food safety, handling, and storage of their product from the program.

The program has also helped open up a discriminatory workforce to women. In the decade following the Bosnian War, there was a marked decrease in women in the workforce and a resurgence of traditional attitudes about gender roles. . .

 

Just punctuate. </p><br /><br /> <p>#grammar


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