Will the payout go down?

July 18, 2014

When Fonterra announced its forecast payout for the 2014/15 season some thought it was optimistic.

After this week’s large drop in the GlobalDairyTrade price index and no encouraging signs for recovery in the short term a revised forecast for a lower payout is expected.

Federated Farmers is warning farmers to prepare for something less than the opening forecast of $7:

“The reality is that the world is having a near-perfect production season with Europe and the Americas having a blinder,” says Andrew Hoggard, Federated Farmers Dairy chair.

“The fall in GlobalDairyTrade reflects supply and demand.  With good weather, high milk prices and grain availability, global dairy production has ramped up.

“While GDT Prices may have come off there is no milk lake of yesteryear.  The world needs to grow a lot more than New Zealand’s annual production every year just to meet demand.

“In the short term, I would recommend dairy farmers start planning for payout forecasts being predicted by the banks of $6 to $6.25 kg/MS.  We need to remember $6 kg/MS is the practical breakeven for about twenty percent of the industry with high production costs.

“Be conservative by focussing on debt and prioritising productive investment.

“This volatility in the payout shows that when politicians start mouthing off about new taxes specifically for farmers, without a clear objective of what they could achieve aide from being affordable in one year, they miss the reality that good years usually alternate with bad years. . .

Many farmers used last season’s record payout to repay debt and the prudent budgeted for a reduced income this season.

Even so, a lower payout will mean farmers re-look at budgets and there will be less money to spend in rural communities and the wider economy.

However, while the payout will be lower than last season’s and almost certainly lower than the opening forecast, it is still expected to be at least at, if not better than the average for the last few years.

The outlook isn’t as optimistic as hoped but that’s no reason to be pessimistic about it, or dairying.


GDT drops 8.9%

July 16, 2014

The GlobalDairyTrade price index dropped 8.9% in this morning’s auction.

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The drop to US$3,309 a tonne takes the GDT to the lowest price since December 2012.

. . . The New Zealand dollar was trading at 88.16 US cents before the release. It dropped as low as 87.50 cents and was recently trading at 87.65 cents. . .

One factor influencing the price is the drop in the price of corn in the USA which is making milk production cheaper there.


Fonterra holds 4th place in global dairy rank

July 16, 2014

Fonterra has held fourth place in Rabobank’s global dairy rankings:

  The latest annual Rabobank survey of the world’s largest dairy companies highlights the giants of one of the world’s most valuable food sectors.

The last 18 months have seen most of these players battle challenging conditions, with weak economies and supply constraints undermining sales growth in key markets. Againt this backdrop, mergers and acquistions have become an attractive route to growth and profitability. But with billion dollar deals increasingly hard to come by, dairy giants will need to acquire or tie up with more companies to sustain the same rates of growth in future. Those adept at acquiring and embracing new businesses will remain well positioned to survive and thrive. 

“Once again, giants Nestlé, Danone and Lactalis top the list, showing that the world’s largest dairy companies are reasonably entrenched,” commented Rabobank analyst Tim Hunt. “We continue to see some companies outperform their peers in sheer growth terms. In particular, the Chinese giants Yili and Mengniu, which saw their sales expand by 14% and 20% respectively, with Yili entering the top 10 for the first time ever”. 

Saputo continued its march up the list to push to eighth place, in part due to several recent acquisitions. Meiji and Morinaga slipped down the list largely due to the sharp decline in the value of the Yen (in which most of their products are sold).  

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2013 was a challenging year for most of the world’s major dairy companies, with stagnant sales volumes in most OECD dairy markets. Acquisitions have become a more attractive route to grow sales and in 2013, there were 124 dairy transactions, up from 111 in 2012 and the highest since 2007.

Positioning for maximum effectiveness in the expanding Chinese market remains prominent. In 2013, joint ventures were announced between Mengniu and Whitewave and COFCO and Danone while Yili announced a partnership agreement with Dairy Farmers of America.

Mengniu took a stake in China Modern Dairy to secure raw milk supply. A further joint venture is pending between FrieslandCampina and Huishan. Despite the increase in transactions, the dairy sector saw no billion dollar deals in the 12 months to 30 June 2014.

While underlying growth will pick up in coming years, many markets will not return to the rapid growth rates seen before 2008. In this context, mergers, acquisitions and joint ventures will remain a key avenue to growth and profitability.

“The catch is that the number of attractive targets is shrinking and multiples have risen,”  explained Hunt. “With billion dollar value deals harder to come by, dairy giants will need to acquire or tie up with more companies than in the past to sustain the same rates of growth”.

Fonterra made a record pay out to its suppliers last season but that was overshadowed in the media by its poor handling of the whey protein concentrate debacle.

However, it maintained its 4th place in the rankings.


Rural round-up

July 14, 2014

Help sought for flooded farms:

Northland Rural Support Trust has put out a call for emergency grazing and feed supplies for farmers whose land is under water after the past week’s storm and prolonged rainfall.

Trust co-ordinator Julie Jonker said the flood prone Hikurangi Swamp area, north of Whangarei, has been one of the worst affected.

“We’ve got up to 30 farms flooded in the Hikurangi Swamp area, we’ve got nine at least flooded further down in Tangiteroria, and even those that aren’t actually flooded are still cut off”, she said. . .

Greens’ water policy unrealistic:

Irrigation New Zealand (INZ) thinks that there is some merit in the Green Party’s environmental policy relating to water announced today, but is concerned about the economic and social impacts of the policy and about how the Green Party will achieve its outcomes.

INZ agrees that dams must not be built on New Zealand’s pristine rivers and where possible new dams should be located off-river. It also agrees that ‘no go’ areas should be identified.

But INZ does not agree that dams and irrigation destroy rivers or add to pollution if they are designed and constructed properly.

“The reality is that New Zealand needs large scale water storage. This is essential for town and city drinking water supplies, as well as to produce fresh food,” says Andrew Curtis, chief executive of INZ.. .

Green’s need to get on the water policy bus:

Instead of attacking policy that will massively improve New Zealand water quality, Federated Farmers says the Green Party would be more credible if it showed a lot more bipartisan leadership in supporting that policy.

“The new National Policy Statement (NPS) of Freshwater, actually requires regional councils to maintain or improve water quality while giving the wider community the choice of how far they want to go in order to improve our lakes and rivers,” says Ian Mackenzie, Federated Farmers Environment spokesperson.

“If the community wants to ensure that certain rivers and lakes are safe for swimming that is supported within the NPS.  But the NPS also requires they be fully informed as to the effect upon jobs, rates and their local economy, when making that choice.

“To leap into swimming as the gold standard for all, without some sort of exceptions regime, will likely cost urban ratepayers massively in the pocket. . .

Fonterra cheese jewel on target - Esther Ashby-Coventry:

The $73 million expansion of the Fonterra mozzarella factory at Clandeboye near Timaru is on track to go online in August 2015.

More than 360 contractors and tradespeople have been working on the project this off-season, with the majority from local companies. Most of the construction materials were bought within New Zealand and the rest manufactured offshore. At any one time there are between 75 and 100 people on the project.

More than 25 new staff members will be required for the factory once it is complete. They are being employed in staggered groups to begin their training. . .

Where is PGG Wrightson heading? -  Keith Woodford:

The last decade has been tumultuous for leading agricultural services company PGG Wrightson. The current company was formed in 2005 with the merger of Pyne Gould Guinness and Wrightson. That merger was led by well-known agribusiness entrepreneur and former Fonterra CEO, Craig Norgate,

Norgate then took PGG Wrightson on a rough ride. It was he who provided the intellectual leadership behind the massive land buying associated with the PGG Wrightson offshoot Farming Systems Uruguay. This subsequently ran into trouble with the coalescence of a major drought and the 2008 Global Financial Crisis. Norgate also led the proposal for PGG Wrightson to purchase a 50% share in Silver Fern Farms for $220 million. That too ran into trouble due to the Global Financial Crisis. . . .

NZ butchers defend tri-nations title -

New Zealand’s Sharp Blacks have defended their tri-nations butchers title against Australia and the United Kingdom.

The team of six Kiwis battled the Brits and Aussies over two hours at the Royal Yorkshire Show in Harrogate as they turned a side of beef and a whole lamb into 50 products fit for a top shelf butcher’s display.

New Zealand won the tri-nations on home slabs at Wanaka last year and captain Corey Winder, from Christchurch, says winning gold on the other side of the world has been a career highlight. . . 

Japan deal opens FDI money flow - Tony Boyd:

ONE of the least understood aspects of the Australia-Japan trade agreement signed this week is the profound change it will bring to foreign direct investment (FDI) into Australia.

The agreement lifts the screening threshold at which private Japanese investment in non-sensitive sectors is considered by the Foreign Investment Review Board (FIRB) from $248 million to $1 billion.

Japanese takeovers in excess of $250 million have never caused a problem for the FIRB and there have been plenty of those over the past 10 years. Nevertheless, the free trade agreement has reserved policy space to screen proposals for investment in agricultural land and agribusinesses at lower levels than $1 billion. . .

New Zealand bra fence braless again:

A fence with hundreds of bras tied to it in Central Otago is looking a bit bare.

Hundreds of bras were cut from the controversial Cardrona Valley bra fence about four or five days ago, Cardrona Residents and Ratepayers Association chairman Barrie Morgan told NZ Newswire.

The whimsical fence has existed for about 14 years and has become a popular tourist attraction but some locals regard it as an eyesore and traffic hazard.

The council took it down in 2006 but it was revived a short time later. Bras were mysteriously removed in 2013. . .


Rural round-up

July 12, 2014

Trade deal with Japan could prove too costly:

Japan’s Prime Minister, Shinzo Abe, must have noticed a striking difference between New Zealand and Australia when he visited the countries on consecutive days this week. In New Zealand he found a firm commitment to a comprehensive trade agreement, the Trans Pacific Partnership. In Australia he was able to sign a soft bilateral “free trade” agreement, settling for much less on agriculture than other food producers hope to gain from the TPP. Australia is not a team player on trade – it is prepared to undermine collective efforts when offered a lesser but exclusive deal. Japan’s attitude is more important.

It is a country in economic and demographic decline but it is still one of the world’s largest economies, second only to the United States among the 12 nations negotiating the TPP. Its side-deal with Australia was disappointing, bearing out New Zealand’s expressed doubts that admitting Japan to the talks was a good idea. But elsewhere hopes persist that Mr Abe is serious when he uses the TPP as leverage for much needed and long overdue reforms of Japan’s economy. . .

Council not investing in water scheme:

Another potential investor has decided against putting money into Hawke’s Bay’s controversial Ruataniwha water storage scheme.

The Central Hawke’s Bay District Council says it believes the proposed $600 million scheme, which could irrigate about 25,000 hectares, could be a huge money- and job-spinner for the region.

But deputy mayor Ian Sharp said on Friday the council won’t be investing in it, now that residents have overwhelmingly opposed borrowing the $5 million needed to do so.

“I think it’s important we distinguish between support for the water scheme and borrowing money to invest in the water scheme,” he said.

“A number of the submitters who did not want us to borrow money to invest are 100 percent behind the scheme, they just felt it was fiscally irresponsible for the council to borrow money to invest in the scheme.” . . .

Reappointments to FSANZ board:

Minister for Food Safety Nikki Kaye today announced the reappointment of Andrew McKenzie and Neil Walker to the Food Standards Australia and New Zealand (FSANZ) Board.

Dr McKenzie has a background in veterinary public health, food safety, food regulation, international and financial management.  He has extensive knowledge of the New Zealand food regulation system having led the New Zealand Food Safety Authority from its inception in 2002 until 2010.

Mr Walker is a food scientist and has spent 35 years working in senior roles in New Zealand’s dairy industry.  He has strong governance experience and has been a chair, director, trustee and committee member of public councils and authorities.

The reappointments were proposed by New Zealand in a formal process that required acceptance by the Australia and New Zealand Ministerial Forum on Food Regulation. . .

Fonterra and Abbott to Form Strategic Alliance for Dairy Farming in China:

First Farm Expected to Produce Milk in First Half of 2017

Fonterra Co-operative Group Ltd and Abbott today announced the signing of an agreement to develop a proposed dairy farm hub in China. The strategic alliance, which is subject to Chinese regulatory approval, will leverage Fonterra’s expertise in dairy nutrition and farming in China and Abbott’s continued commitment to business development in China.

Dairy consumption in China has been rising steadily over the past 10 years. The continued development of safe, high-quality milk sources is essential to meeting this growing demand from Chinese consumers. Fonterra and Abbott are pleased to be able to work together and through this alliance to make a positive contribution to the growth and development of China’s dairy industry. . . .

Fonterra seeks Hokkaido farmers for dairy study:

Fonterra is seeking four Hokkaido dairy farms to take part in a study to increase the efficiency and profitability of grassland dairy farming in Japan.

The study, which begins in December this year, will involve the collection and monitoring of physical, production and economic performance data from four leading Hokkaido grassland dairy farms. The analysis will take place over one production season and include data collection over summer outside grazing periods and during indoor winter housing.   . .

Top food science award for Massey professor:

MASSEY UNIVERSITY Professor Richard Archer has been awarded the New Zealand Institute of Food Science and Technology’s most prestigious honour, the JC Andrews Award.

The annual award is in memory of Massey’s first Chancellor, Dr John Clark Andrews, who proposed that New Zealand’s first food technology degree be established in 1964. The award recognises institute members who have made a substantial contribution to science and technology and leadership in the food industry. . .

A brilliant new wound care products – Medihoney:

Now available at the SummerGlow Apiaries online store is the Comvita Medihoney range of products.

Medihoney combines leading wound care and therapeutic skincare products made with an exceptionally high quality medical grade Manuka Honey.

Comvita uses advanced scientific knowledge to maximise this honey’s potential in all of its therapeutic products.

Medihoney products challenge the reliance on synthetic medicines and treatments and provide a natural alternative for wound and skin care, suitable for use by the whole family. . .

It's Cow Appreciation Day! Let's pause for a little moment and think about all the  amazing cows in the world. It’s easy to forget how awesome these animals are and how integral to our daily life. #CowAppreciationDay


Rural round-up

July 6, 2014

Young Farmer named for 2014:

David Kidd has beaten seven finalists over three days of competition to become the 2014 Young Farmer of the year.

In the 46 years of the contest’s history, Mr Kidd is the first Northern region finalist to take the title.

His father Richard Kidd was third in a young farmer competition in 1984.

Mr Kidd joked his inspiration for competing was to better his father and said he’ll be rubbing it in when he sees him. . .

Evil among us – farm community closes ranks – Rebecca Ryan:

The quiet and friendly community of Ngapara has been shaken.

Neighbours are watching out for neighbours, new chains and locks have been placed on gates and security cameras on fence posts, some residents are unable to sleep at night and farmers are requiring help to carry out basic farm work – all fearful after a mass killing of more than 215 sheep on two different properties in the area, two weekends in a row.

They are all hopeful the culprit, or culprits, do not return this weekend.

Police believe the killings may be linked and a firearm was used in both. . .

Dairy head to focus on environment - Gerard Hutching:

Newly elected Federated Farmers dairy chairman Andrew Hoggard said focusing on the environment was one of his two main priorities.

The other was to deal with the issue of labour standards.

A Feilding dairy farmer, Hoggard said it frustrated him that farmers were always trying to play catch up when it came to dealing with environmental issues.

He acknowledged there was a “real issue” of water quality being affected by dairying.

“Cows urinate and that’s got a lot of nitrogen in it, but a lot of people perceive there’s a pipe coming out of a cow shed and into a river. There are a few ratbags but things are in place for farmers to do the right thing. I don’t defend those who don’t,” he said. . .

Firm finds cunning niches – Emma Rawson:

From a mechanism that cleans up geese poop, to small parts for a Fisher & Paykel baby incubator – the range of machinery designed and manufactured by Dannevirke company Metalform is about as broad as it gets.

But the products have one thing in common: they provide solutions to problems deemed too small for the big international manufacturing giants to produce.

Solving Canada’s geese waste issue might not be big business for an agricultural giant like John Deere, but for family-owned Metalform, its Tow and Collect product has been a winner.

Tow and Collect is being used in North American towns to clean up after Canadian geese, which leave a large volume of mess on golf courses and parks during their migration. . .

Fieldays set to get even bigger – Andrea Fox:

National Fieldays will offer up to 100 extra exhibitor sites next year and a new dairy innovation centre is in the pipeline.

Chief executive Jon Calder said the new sites were part of a master plan for the Mystery Creek Events Centre and would maximise the central exhibition space area.

Large-scale exhibitors who have been seeking a new area are likely to benefit but Calder said the flow-on effect for all exhibitors of an improved design and layout would be positive.

The planned dairy innovation centre, which might not be ready until 2016, would be based on a pavilion model in Canada and would bring together in one area exhibits devoted to the dairy industry, including a herd of cows, live robotic milking, interactive plant and equipment displays, and effluent systems, Calder said. . .

Fonterra targets audience of two billion - Hugh Stringleman:

Fonterra intends to be a dairy co-operative that makes a difference in the lives of two billion people by 2025, chief executive Theo Spierings says.

It was already the world’s largest milk processor and dairy exporter and now it wanted to be a globally relevant co-operative, Spierings said.

Growth in demand was forecast to exceed dairy product supply growth by 3% each year in the massive markets of China and India from now until 2020, he said.

India’s forecast compound annual growth rate was 10% and China’s 7%, whereas their supply growth rates were 7% and 4% respectively. . . .

Life in the saddle – Pip Courtney:

PIP COURTNEY, PRESENTER: In the bush, no-one likes a skite. But while modesty’s an admirable trait, it’s kept many with fascinating lives from writing their memoirs.

Alwyn Torenbeek’s a good example. Despite an extraordinary life, it took years of badgering from his family before the 77-year-old retired drover agreed to put pen to paper.

At just 21, he was Australia’s bronc-riding champion, known for his bravery, natural talent and cheeky showmanship. But his biography is about more than fame. There’s adventure, tragedy, romance and mateship, and that indomitable bush trait, endurance.

An endurance riding camp has its own pace. There’s plenty of time to catch up with mates and swap stories, some of them tall.

At Alwyn Torenbeek’s camp, you’re assured of a yarn or five. . .

Good calving nutrition can better support calving season

With calving season just around the corner, the Dairy Women’s Network (DWN) and SealesWinslow have teamed up to educate dairying women around the importance of good calf nutrition.

Ballance Agri-Nutrients, through its animal nutrition business, SealesWinslow, will be running a series of interactive calf nutrition days across nine locations in New Zealand during June and July.

Mike Stephens, dairy category manager for Ballance Agri-Nutrients said the sessions will provide participants with practical, hands-on skills to raise healthy calves and, in the long term, build healthier and more profitable herds. . .


Rural round-up

July 5, 2014

 Proud to be a dairy farmer – Will Leferink:

You could say I started back in the day when no one would likely tweet what you said or even know what a tweet was.

I will probably end my Feds career on the national stage with someone tweeting something right now.

So please Tweet this.

I am so very proud of New Zealand’s dairy farmers.

To use farming vernacular you are good buggers.

I am not talking our immense economic contribution because everyone gets that.

I am talking about the fantastic contribution being made by us environmentally. . .

Minister corrects incorrect claims about national freshwater standards:

Environment Minister Amy Adams has today moved to correct incorrect and misleading comments made about the Government’s ground-breaking national freshwater standards.

The Government yesterday announced clear, robust national standards for freshwater that will make a significant improvement to the way freshwater is managed.

This means, for the first time, New Zealand’s rivers and lakes will have minimum requirements that must be achieved so the water quality is suitable for ecosystem and human health.

However, some, including the Green Party, the Labour Party and Massey University environmental ecologist Dr Mike Joy, have resorted to making incorrect claims about the freshwater reforms that have gone unchallenged.

“Some of New Zealand’s best freshwater scientists came up with numeric values for the national standards.

“Ministers have not been involved in any way in the scientific detail of the framework. We were deliberately hands-off during this part of the process so we could get the best scientific information. . .

Environment the winner in freshwater reforms:

The National Policy Statement for Freshwater Management, incorporating the National Objective Framework, is the most comprehensive approach to sorting environmental issues for this country’s freshwater resource. While tough on farmers it is equally tough on urban New Zealand.

“Unlike the Green Party, which has the divisive notion the dairy industry should be held accountable for absolutely all water quality, this seminal policy makes it clear that urban and rural water must be treated equally,” says Ian Mackenzie, Federated Farmers Water and Environment Spokesperson, who was also on the NOF reference group.

“Using a local example, this applies equally to the Avon River, the South Island’s most polluted urban waterway even before the earthquakes, as it does to the Hinds River in Mid-Canterbury. . .

Dairy farmers ready to take action to implement water quality standards

Dairy farmers are up for the challenge of working with local communities to fix local water quality problems and deliver on the Government’s new national water quality standards.

“DairyNZ will implement these new standards with farmers. We have a firm commitment from the industry and from our farmers on that front. Where there’s an agreed problem that needs fixing, we’ll get in there and do our bit,” says DairyNZ’s strategy and investment leader for sustainability, Dr Rick Pridmore.

“The dairy industry supports farming to environmental limits to solve identified water quality problems. We’re already doing that kind of work across the country with farmers and councils in 15 priority areas. We also spend more than $11 million a year of dairy farmers’ levy money on environmental initiatives including local water quality studies and supporting farmers to take action to fix issues.” . . .

Earthquake-prone buildings farm exemption welcomed as a first step:

Federated Farmers is delighted Government has seen the logic of exempting farm structures from the Building (Earthquake-prone Buildings) Amendment Bill as a first step to ensuring the viability of rural towns is not compromised.

“It was mind boggling to hear the Minister cost the inclusion of farm structures in the Building (Earthquake-prone Buildings) Amendment Bill as being an imposition of $170 million,” says Anders Crofoot, Federated Farmers new Vice-President.

“We naturally welcome this exemption since no one in the recorded history of farming in New Zealand has ever been killed in a collapsing farm structure during an earthquake. It was a clear case of regulatory overreach. . .

Fonterra Forms Exclusive Partnership with UK-Based Dairy Crest:

Fonterra has entered into an exclusive partnership with UK-based Dairy Crest to market and sell two products for the fast growing global baby food market.

The products – Galacto-oligosaccharide (GOS) and Demineralised Whey – are both used in the manufacture of infant formulas, and will be manufactured by Dairy Crest. Fonterra will be the dedicated and exclusive sales channel for the infant formula ingredients produced.

Dairy Crest is entering into a newly-formed joint venture with UK-based Fayrefield Foods to produce the GOS. These plants are expected to begin production in 2015. . . .

First NZ tourism attraction to gain certification:

Rotorua’s Te Puia became the first visitor attraction in New Zealand to have staff certified in rural skills today, with its Environment Team members presented with a National Certificate in General Skills Agriculture (Level 2) – Primary Sector.

The Primary ITO, New Zealand’s largest industry training organisation, officially presented the certificates this morning, after 12 months of training on and off-site. The qualification included training in the use of chemicals; driver training for tractors, forklifts and quad bikes; chainsaw use and health and safety.

Te Puia’s Environment Team are responsible for all maintenance across the 70 hectare geothermal site, including horticulture, hygiene and the conservation of native flora and fauna. Part of their role has involved the removal of undergrowth to expose natural geothermal features, with an ongoing focus on ensuring pathways are clear and safe for visitors. . . .

96 Points Rapaura Springs Marlborough Sauvignon Blanc 2013 and Back to Back Double Gold’s:

Marlborough Winery Rapaura Springs is justifiably proud of its recent Double Gold award and 96 point rating at the prestigious San Francisco International Wine Challenge 2014.

One of only a handful of wines from New Zealand to achieve this award, it’s made all the better by the fact we received the same recognition from the esteemed panel of judges last year. Both the 2013 and 2012 vintage Marlborough Sauvignon Blanc wines have been awarded Double Gold medals. Talk about consistent!

Owner Brendan Neylon praises “a great team effort and an unwavering focus on quality, from the vineyard to the winery”. . .

Luring British Wine Professionals to New Zealand’s Largest Wine region:

Wine Marlborough and the NZ-UK Link Foundation are proud to announce that applications for the 2014/2015 Wine Marlborough NZ-UK Link Foundation scholarship are now open.

The history of the scholarship began in 2009 when Wine Marlborough and the NZ-UK Link Foundation, together with the late John Avery MW, established a scholarship to fund an exceptional wine industry professional from the UK to travel to New Zealand to experience Marlborough’s wine industry. The aim of the scholarship is to further the recipient’s wine knowledge and assist in their personal development as a potential leader in the wine industry. . .


Rural round-up

July 4, 2014

Red Meat Profit Partnership tries to answer crucial question - Allan Barber:

Analysis of the objectives and methodology of the RMPP suggests the programme has highlighted the most important issue facing the red meat sector. Briefly stated, it is to work out why there is still such a significant gap between the top farmers and those in the middle of the pack and to lift the average closer to the top performers.

When the Red Meat Sector Strategy identified behind the farm gate specifically as a major area of potential improvement, there was much mumbling about why the industry structure wasn’t being more usefully exposed as the area most in need of improvement. But figures released by the B+LNZ Economic Service show this isn’t the case. . .

 Out of cow muck comes magic – Emma Rawson:

Although it has grizzly beginnings in the blood and gore of the meatworks, there is a fairytale element to the story of biomaterials company Southern Lights.

A little like the Brothers Grimm’s goblin Rumpelstiltskin, who spun straw into gold, the Napier company transforms cow byproducts which would otherwise be destined for pet food and fertiliser into extremely lucrative Type 1 polymeric collagen.

At about $50,000 a kilogram it is no exaggeration to say the polymeric collagen is worth its weight in gold – only a few thousand shy of the price of bullion. . .

Award for science professor:

Lincoln University plant science professor Derrick Moot has won an award recognising the successful application of research or experience to an aspect of animal production.

Prof Moot was presented with the New Zealand Society of Animal Production’s Sir Arthur Ward Award at the society’s 74th annual conference on Tuesday night.

Prof Moot has been identifying plant pasture species which will survive and thrive on the dry East Coast, and developing ways to incorporate them into mostly sheep and beef farming systems – but also some dairying ones.

Lucerne ticked most of the boxes as it was a legume which fixed nitrogen from the atmosphere, was high in protein and energy and also had a deeper rooting system than other pastures, he said. . .

Filthy pigs? Not on our patch … – Sue O’Dowd:

The proud co-owner of a Taranaki piggery is so confident about its cleanliness that he sometimes walks around in it in his socks.

Ron Stanley, of Oaonui, is frustrated at this week’s television portrayal of a Canterbury piggery. Filmed earlier this year, the footage showed squalid conditions, severe overcrowding, and suffering animals.

The Stanley Piggery co-owner found the footage disturbing.

“That’s not the way we keep our animals,” he said. “I always say if I can’t come over to the piggery in my socks on a dry day, then there’s a problem. . .

Farm buildings to be exempt from assessment:

Farm buildings are to be exempt from the requirements for assessments under the Government’s earthquake-prone buildings policy, Building and Construction Minister Dr Nick Smith and Primary Industries Minister Nathan Guy announced today.

“The Government is not satisfied that the risks posed by farm buildings justify the cost of every building being assessed. These buildings have a low occupancy rate and there is no record of a fatality caused by a farm building collapsing in an earthquake,” Dr Smith says.

The Building (Earthquake-prone Buildings) Amendment Bill requires all buildings to be assessed in the next five years and for those under 34 per cent of the building standard to be upgraded within a period of 15 years, with a further 10-year extension available for heritage buildings. The Bill currently excludes residential buildings except those that are multi-storey and contain more than two homes. . .

Farmers welcome windfall from wind farms - Gerard Hutching:

Wind turbines west of Wellington are not only changing the landscape, they are also transforming landowners’ bank balances.

“They’re music to my ears, actually,” says Ohariu Valley sheep and beef farmer Gavin Bruce, who has a 440-hectare property with eight turbines.

All told there are 88 turbines on two Meridian Energy wind farms: 62 on the West Wind farm, situated on both Meridian’s own property as well as on Terawhiti Station, south of Makara; and 26 on the Mill Creek wind farm on four properties in the Ohariu Valley. . .

Driving safety home to farmers:

Rural retailers are backing government’s safety message to farmers.

The Environmental Protection Authority (EPA), in partnership with Agcarm and WorkSafe New Zealand, is launching a campaign to increase awareness about the importance of wearing the right safety gear when using farm chemicals.

The campaign directly addresses the “she’ll be right” attitude toward using safety gear.

Agcarm distributor members across New Zealand will display posters and distribute flyers with practical tips about safety gear. . .

US Company churns out cloned cows -

In the meadow, four white-haired Shorthorn heifers peel off from the others, raising their heads at the same time in the same direction. Unsettling, when you know they are clones.

From their ears dangle yellow tags marked with the same number: 434P. Only the numbers that follow are different: 2, 3, 4 and 6.

The tag also bears the name of the company that bred them and is holding them temporarily in a field at its headquarters in Sioux Centre, Iowa: Trans Ova Genetics, the only large US company selling cloned cows.

A few miles away, four Trans Ova scientists in white lab jackets bend over high-tech microscopes in the company’s laboratories. They are meticulously working with the minute elements of life to create, in Petri dishes, genetically identical copies of existing animals. . . .

You Won’t Believe What This Guy Did With Old Farm Scrap Metal. Seriously, WOW:

Farmers of South Dakota, if you see John Lopez going through your garbage, please let him continue to do so. In his hands, what was unfixable or unwanted to you becomes art. Not just any art, though. Big, striking sculptures that celebrate the American Old West. The kind of stuff you’d probably like! At the very least, you’ll be impressed by his work. Who wouldn’t be? . . .

https://twitter.com/Fonterra/status/484566445662027776


Rural round-up

July 2, 2014

Amazing claptrap over wind thrown trees:

Federated Farmers West Coast is staggered by the rhetoric on the Wind Thrown Trees Bill, passed under urgency last night, which allows for the recovery and use of native timber felled in Cyclone Ita.

“Being a Coaster, recycling dead trees into jobs will be good for us all,” says Katie Milne, Federated Farmers West Coast provincial president. 

“We’ll be able to salvage something from Ita’s natural calamity being jobs if not new businesses.  That’s something Federated Farmers supports.

“Even if some guys come in from outside the Coast, they have to stay somewhere and they have to be fed and watered too.  They will also need to have their equipment serviced so we’re more open-minded.  . .

Meat & Fibre – Climbing to the top:

Speech by Jeanette Maxwell Federated Farmers Meat & Fibre Chairperson, to Federated Farmers Meat & Fibre Council at Federated Farmers AGM, Palmerston North

It is my pleasure to welcome you here to my last Meat & Fibre AGM as your chair.

Since our last AGM, in Ashburton last year, there has been some significant engagement within the industry and amongst our Meat & Fibre Council. . .

Launch of Wool Levy Farmer Consultation:

The Wool Levy Referendum Wool Grower Consultation was officially launched at Federated Farmers Meat & Fibre AGM today, in an effort to add value to the industry.

“Wool should be our first choice, it is the fibre of the future and this referendum’s is the industry’s chance to make a difference to its future,” says Sandra Faulkner, Federated Farmers Meat & Fibre Executive and Wool Levy Group Chairperson.

“Sheep is not a one dimensional animal, it is dual purpose but the value of wool is not recognised here or overseas, and as a result we are underselling ourselves in the market. New Zealand is the world’s third largest wool producer supplying 45 percent of the world’s carpet wool. With 30 industry bodies in New Zealand, wool is the only primary sector that isn’t represented. . .

Farmers get into the Port business:

Three years after welcoming the formation of Kotahi, the joint freight logistics of Fonterra Cooperative Group and Silver Fern Farms, Federated Farmers South Canterbury is excited that the Port of Timaru will play a leading role in exporting South Island product to the world.

“Since Kotahi translates as standing together as one Federated Farmers is excited about what this means for South Canterbury’s development as a major South Island’s logistics hub,” says Ivon Hurst, Federated Farmers South Canterbury provincial president.

“News that Kotahi is to hub out of Timaru is great. News that Kotahi has taken a half-share in the Port of Tauranga owned container terminal operating assets at PrimePort is fantastic. . .

Top Chefs Do Amazing Things with Vegetables

The winners of the New Zealand Vegetarian Dish Challenge 2014, a national competition celebrating the very best of fresh New Zealand vegetables were announced today.

Auckland’s The Riverhead’s demi-chef, Subhashini Sathanantham won the Breakfast category with her inspired dish of golden kumara and red beetroot tart, quail eggs, cauliflower sausage, potato toast, garlic-infused vine tomatoes, buttered spinach and pumpkin hollandaise.

Subhashini said that the win had given her a huge step up in her career and she was thrilled her passion for vegetables had caught the judges’ attention. . .

Seed Company Gains Organic Certification:

A Bay of Plenty business has just become New Zealand’s Largest Organically Certified Mail Order Seed Company. Kings Seeds have always lead the way when it comes to supplying gardeners the best range of seeds online and via their popular catalogue. After an extensive certification process overseen by BioGro NZ, the Kings Seeds team is proud to announce their status as having New Zealand’s largest range of Organically Certified seed.

Gerard Martin, Owner, Kings Seeds, says; “We’ve only ever supplied internationally certified organic seeds so it just made sense to formalise this by applying for New Zealand accreditation. For us, it reinforces our commitment to provide New Zealand gardeners with the most extensive range of organic seeds. A big thanks to the BioGro NZ team who did a thorough job of scrutinizing our business to ensure that we met their strict criteria. We’re extremely proud to have come through the process with flying colours.” . . .

Anglers appalled at Labour’s recreational fishing ideas:

Anglers are appalled at the policy and ideas being advocated by Labour’s candidate for Kaikoura, Janette Walker, and the support she has gained from Gareth Morgan, the Green benefactor who has ideas of aerially poisoning Stewart Island with 1080 and caging the family cat.

Alan Simmons, Outdoors spokeperson for United Future and an active angler was gob smacked when he read of her ideas presented to a meeting of Marlborough Recreational Fishers last week and then championed by Gareth Morgan as politician of the week.

Labour’s Ideas of licensing and charging all anglers and using the funds to buy quota from the commercial fishing industry will infuriate recreational anglers.  Furthermore Janette Walker and Labour are talking about reducing recreational catches as commercial demand increases forcing anglers to buy back their rights to their fish. . . .

Winter Mixed Bloodstock Sale Catalogue Available Now:

Catalogues for New Zealand Bloodstock’s Winter Mixed Bloodstock Sale on Friday 1 August are in the post and available to be viewed online now.

A selection of 97 broodmares account for the majority of this year’s catalogue which also features five yearlings, six two-year-olds, seven unraced stock and 14 racehorses.

Prolific broodmare sire Zabeel has three mares featuring in the Sale, the recently retired Cambridge Stud stalwart is the dam sire of 24 Group 1 winners to date. Also with three mares in the Sale is fellow super sire Danehill, the dam sire of 51 Group 1 winners worldwide. . . .


GDT drops 4.9%

July 2, 2014

The GlobalDairyTrade price index dropped 4.9% in this morning’s auction.

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Rural round-up

June 23, 2014

Leave TPP slowcoaches behind, New Zealand farmers urge

With Prime Minister John Key and President Barack Obama showing strong support for a comprehensive Trans Pacific Partnership, New Zealand farmers will support leaving countries behind that are not prepared to eliminate agricultural tariffs.

“The Trans Pacific Partnership was established to eliminate all tariffs and bring a new level of discipline to the use of non-tariff barriers,” says Bruce Wills, the National President of Federated Farmers of New Zealand.

“If we have a country that is not prepared to accept this reality, then they should not be allowed to slow down progress for all. . .

US milk exports affecting NZ farms – Tim Cronshaw:

Fonterra’s milk suppliers are wary of the ability of United States feedlot farmers to step up or slow down milk production faster than they can.

When grain is cheap and commodity prices are high, as was the case in the soon-to-finish 2013-14 season, this can be to the advantage of operators keeping cows in confined feedlots. As they ramp up milking, this has a bearing on world supplies and the prices Kiwi farmers receive.

Logic would say they will ease off as global commodity prices falter, but narrowing down their next move is complicated. . . .

The noblest of farmersBruce Wills:

The word nobility, to me at least, describes people who give of themselves without thought of personal advancement or enrichment.

As this will be one of my final columns as the President of Federated Farmers, I am in awe of the people who work incredibly hard for this organisation and farmers in general. To be fair, having a good team makes leadership easy and in our provinces and branches we are blessed with great people.  People who meet councillors and officers on plan changes one day, maybe Worksafe NZ the next and then may help to resolve a dispute among neighbours.  Being available 24/7, they work with the Rural Support Trusts when either we don’t have the right kind of weather or too much of it. 

Throughout it all, they still have their farm to run and their family to care for.

Our people do this because they are not just passionate about farming but they care for its future. They believe, as I do, that farmers and farming are a force for good in our country. While farming defines part of our national identity we are not immune from the odd ratbag.  In saying that, farmers are overwhelmingly honest, decent and generous folk who genuinely care. . . .

Techno Expo gets off to a flyer:

AN INAUGURAL Technology Expo run as part of Beef + Lamb New Zealand’s Central Otago ‘Farming For Profit’ programme has been hailed a success by organisers.

The event, in Alexandra earlier this month, featured parallel presentations from a string of companies and organisations with products, services, and – in the case of Otago Regional Council – regulations, which are set to change the way we farm.

“I’ve been pleasantly surprised by the turnout,” BLNZ central South Island extension manager Aaron Meikle told Rural News. “Both seminars have been busy all day. I’d suggest there’s been well over a 100 people come through during the day.” . . .

Couple getting in the olive groove – Gerard Hutching:

There are several ways to harvest olives: laboriously beating the trees with sticks, using a hand rake, or using a mechanical rake.

But Helen Meehan, owner of olive grove Olivo in Martinborough, in the Wairarapa, prefers the relatively new method of mechanically shaking the tree until the olives drop into nets.

It’s all about saving time, she explains, even though about 20 per cent of the crop stays on the tree. . . .


Rural round-up

June 20, 2014

New Zealand features at “Olympics” of TB control

New Zealand’s expertise in the eradication of bovine tuberculosis (TB) will be showcased in Wales this month at the prestigious international M.bovis conference.

TBfree New Zealand TB Eradication and Research Manager Dr Paul Livingstone QSO will be a keynote speaker at the conference. He is well known for advising other countries, including Wales, Ireland, Chile and the United States, on TB management.

Dr Livingstone has spent his working life managing the disease and has been a key part of TBfree New Zealand’s success. He said it is a privilege to speak in front of such an esteemed gathering of experts from around the world, with about 500 attendees expected at the conference. . .

Antimicrobial resistance worries vets:

Growing resistance to antimicrobials has vets worried.

The New Zealand Veterinary Association at its annual conference in Hamilton this week, regards it as one of the greatest threat to human and animal health.

Bacteria, which is the major cause of disease develops the ability to withstand the antibiotic used to control them.

Keynote speaker at the conference, Australian vet, Stephen Page said that while the problem in animals is not nearly as great as in humans, farmers and vets can’t afford to relax. . .

Rural professionals needed – Vet Assn:

The Veterinary Association says the lack of young people wanting to take up careers in agribusiness and sciences is likely to affect the number of vets being produced in this country.

The Ministry for Primary Industries puts the number of rural professionals currently at about 2000.

Association president Steve Merchant said for this country to achieve an increase in its primary exports at double the current rate, more rural professionals were needed. . . .

Research to focus on environment:

Dairy industry research funded by farmer levies will have a stronger focus on environmental issues.

The industry body Dairy NZ has received strong farmer support for renewing the levies it collects from them for another six years.

That will take effect when the Primary Industries Minister signs a new commodity levies order, which needs to happen by February next year. . . .

HRH The Prince of Wales hosts Campaign for Wool’s 5th Anniversary:

To commemorate the 5th anniversary of the Campaign for Wool, the campaign’s Patron His Royal Highness The Prince of Wales hosted a major celebration of wool at Clarence House.

Attended by a host of key guests representing brands and fashion designers from the Wool Collection, the occasion was marked with enlightening talks by very special guests including Nicholas Coleridge CBE, Chairman of the Campaign for Wool (pictured below with HRH The Prince of Wales). Seeking to highlight two of the Campaign’s most frequently made claims regarding wool’s benefits: firstly, that it is a supremely safe fibre thanks to its natural fire retardant properties and that secondly, wool quickly biodegrades in soil – a key ecological benefit, the day centred around two tests and an immersive wool fashion and interiors presentation. . . .

To commemorate the 5th anniversary of the Campaign for Wool, the campaign’s Patron His Royal Highness The Prince of Wales hosted a major celebration of wool at Clarence House.

Attended by a host of key guests representing brands and fashion designers from the Wool Collection, the occasion was marked with enlightening talks by very special guests including Nicholas Coleridge CBE, Chairman of the Campaign for Wool (pictured below with HRH The Prince of Wales). Seeking to highlight two of the Campaign’s most frequently made claims regarding wool’s benefits: firstly, that it is a supremely safe fibre thanks to its natural fire retardant properties and that secondly, wool quickly biodegrades in soil – a key ecological benefit, the day centred around two tests and an immersive wool fashion and interiors presentation.

- See more at: http://www.campaignforwool.org/news-item/hrh-the-prince-of-wales-hosts-campaign-for-wools-5th-anniversary/#sthash.4Zt2b9RF.dpuf

‘Farming in the Cloud’ online accounting launched by Xero:

Online accounting software company Xero today formally launched its dedicated rural online accounting and farm management solution – Farming in the Cloud – together with key farming solution partner, Figured, at the National Fieldays in Mystery Creek.

Xero also announced that rural services company, RD1 has joined Farming in the Cloud as a partner, and as part of this is working with the wider Fonterra group to explore opportunities for integration.

Ben Richmond, CA, Xero Rural Strategy Lead said: “We are excited to now have all our major rural supplier partnerships in place. Figured has been instrumental in taking Xero to the farming market. Now, having RD1 on board, alongside the likes of PGG Wrightson which is already a partner, really validates the power of Farming in the Cloud as a ground-breaking farm productivity tool, and looking ahead we’re pleased to be broadening our relationship with Fonterra.” . . .

Kahungunu Harvesting Our Future:

Ngāti Kahungunu Iwi is hosting a second in a series of Agribusiness Conferences to showcase current farming talent and to provide roadways into the future for landowners and shareholders who in the past leased their land to neighbouring farmers.

This conference is being held on Thursday 26th June at The Hub in Dannevirke.

We will highlight successful business women in farming and successful grouping of Māori interests that take produce from the ‘Nuku to the Puku’ meaning from the land to the tables of the world.
Dannevirke is already a hot bed of energy and innovation when it comes to farming. The success stories from this area will be a good example for other small communities that see the value of cooperation and partnership.

Ngāti Kahungunu is well known in iwi circles for our generous hospitality to visitors. This trait has built lifelong relationships throughout the country and one we want to extend to the world. . .

Fonterra Announces Two Senior Appointments:

Fonterra Co-operative Group Limited today announced two senior appointments to the Fonterra Management Team.

Kelvin Wickham, who is currently President Greater China, will take up the newly created position of Managing Director Global Ingredients.

Johan Priem, who is currently a member of the Office of the CEO, will become President Greater China, when Mr Wickham assumes his new role on 1 August. . . .

New Zealand Site Dominates U.S. Wine World:

The most influential wine website in the U.S. is not based in Silicon Valley but the Auckland suburb of New Lynn.

The VinePair Wine Web Power Index measures the influence of selected wine websites and mobile apps within the United States and West Auckland-based Wine Searcher is top of the list.

Wine Searcher is a search engine for wine that lists more than 5.5 million wines and prices from almost 40,000 merchants around the world. Master of Wine Jancis Robinson calls it “the most successful, and seriously useful, price comparison website.” . . .


Dairy prices up in GDT auction

June 18, 2014

The price index increased .9%  in this morning’s GlobalDairyTrade auction.

That’s the first price rise since February and follow eight drops.

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Rural round-up

June 14, 2014

Integrated agri-food value chains - Keith Woodford:

Many New Zealand agri-food companies are still struggling to understand the global shift to integrated agri-food value chains. This move has been playing out most spectacularly in the infant formula industry, where the small companies have been badly caught out, but the trend is much broader than that.

A key driver is the need to have food safety systems in place that span from consumers back to producers. It is not simply a case of the food having to be safe, it is also a case of there being a transparent evidential trail. Food testing is just a small part of this system.
A major focus has to be on overall business systems that react to first stage mistakes before they compound into major events. It was just such a failure to react to the warning signals that led Fonterra down a shambolic path with the botulism scare in 2013.

There is also a key idea relating to provenance. Consumers not only want to know that something is safe; they also want to know that they are buying is what they think they are buying, and that the brand is genuine. . .

Milk spill stopper wins innovation award – Jamie Small:

The dragons have chosen, and another farm invention is one step closer to commercial success.

For the second year running, Fieldays had its own Dragons Den-style competition for agricultural innovations.

The joint initiative, run by Fieldays and Hamilton business incubator Soda Inc, selected nine innovators from a pool of 20 to present their gadgets to a panel of experienced investors and business leaders.

The top prize, Most Viable Business, went to Pahiatua couple Graeme and Alison Franklin with the DTexH2o. . . .

Primary Industry’s outlook good:

Federated Farmers believes the ‘2014 Situation and Outlook for Primary Industries’, released by the Ministry for Primary Industries, shows a promising future for the New Zealand economy thanks to kiwi farmers.

“This report shows an increase of 16.3 percent in primary sector exports, to $37.7b on the previous year, which translates to increased farmgate incomes of 22 percent and an increase in off farm spending of 11 percent,” says Bruce Wills, Federated Farmers National President.

“These statistics remind us of the importance of exports to New Zealand, in particular the impact on farmgate incomes and spending on farm inputs, which has a direct influence on rural and provincial economies. . . .

Applauding the night away: superb exporters win top recognition:

Spectacular export growth of hundreds of chicken and turkey products has won Tegel Foods the Supreme Award in the 2014 Air New Zealand Cargo Export NZ Auckland export awards.

Prime Minister John Key presented the award last night at the Langham hotel in Auckland also attended by Auckland Mayor Len Brown and ‘Minister for Business’, Steven Joyce.

The judges said Tegel has been an iconic brand in New Zealand for more than 50 years and began developing export markets 11 years ago. . . .

Fonterra slapped with $150,000 fine over NZX disclosure – Suze Metherell:

(BusinessDesk) – The New Zealand Markets Disciplinary Tribunal has fined Fonterra Cooperative Group $150,000 for breaching continuous disclosure requirements to the NZX during the dairy manufacturer and exporter’s botulism false alarm last August.

Auckland-based Fonterra undertook a world wide recall after it quarantined several batches of whey protein concentrate last August on concern it was contaminated with a potentially dangerous strain of clostridium bacteria, capable of causing botulism. The strain was ultimately shown to be harmless. . . .

Boys from the farm turn on the charm - Libby Wilson:

Fieldays’ rural bachelor contestants have done the hard yards in the leadup to their event.

The eight eligible blokes chased sheep, shot clay targets, and went zorbing on their journey from Auckland to Mystery Creek.

And the action continued yesterday, with fencing, speed-dating and cooking.

Yesterday morning they faced questions from Waikato women.

It seems ladies into a romantic but rural first anniversary picnic would be a good match with Wanganui’s Fraser Laird, 26. “I’ve got some back paddocks at the back of the farm. It’s got a bloody good view. Serious,” he said. . . .

Farmers encouraged to embrace technology - Susie Nordqvis:

Accounting firm Xero is laying down a challenge to farmers this week’s Fieldays: start embracing technology and innovation to maximise profits and grow the economy.

The innovation hub at Fieldays is not quite Dragon’s Den, but it is a sure fire way of fast-tracking participants onto the national stage.

“We have developed an ice maker that makes a slurry and you can reduce milk from 32degC down to 5degC in three seconds,” says innovation den participant Richard Upperton.

Xero says if more people followed Mr Upperton’s lead then the economy would be in better shape. . .

New Zealanders and shearing - Ali Ikram:

Sheep outnumber New Zealanders seven to one. 

They’re crucial to our economy and they get a bad wrap when it comes to their intelligence.

But there was one question we desperately wanted answered – as New Zealanders, can we all shear a sheep?

Is it innate in us – a birth-right?

Or are there some born and bred in cities who simply can’t shear, no matter what? . . .


Rural round-up

June 12, 2014

$16m export fish gets top sustainability marks:

New Zealand hake, a small but growing white fish export to Spain, China and Japan, has received a glowing report in an independent assessment, taking it one step closer to achieving certification from the Marine Stewardship Council (MSC).

The MSC holds the world’s best standards for sustainably managed fisheries. Its assessment process, which is transparent and inclusive, requires all fishery assessment reports to go through a public consultation period before certification can be achieved.

While many overseas hake fisheries have been overfished, the MSC independent assessment has confirmed New Zealand hake fisheries as having well managed, healthy fish stocks that are harvested with minimal impacts on the marine environment. . . .

International marketing specialist stands for Zespri board:

International produce marketing specialist, Hillary Brick, has announced her nomination for the upcoming director elections for the board of kiwifruit exporter Zespri.

Hillary is a New Zealander who has been living in the United States for the past 30 years.

Originally from Te Puke, Hillary is a long-term shareholder in a family owned kiwifruit orchard near the town.

“I have been very fortunate to enjoy 25 years of experience in international fruit marketing”, she said, “I’d be privileged to give back to an industry which has played such an important part in my life.” . . .

Firewood ‘slicer dicer’ on display at Fieldays – Mike McRoberts:

Mahoe Sawmill is at Fieldays with their firewood “slicer dicer”.

Mahoe’s John Bergman says the machine is part of the Fieldays innovation awards and is the first of its kind that the company has developed.

“It makes it [chopping firewood] really easy.” . .

Lessons with the Sharp Blacks: Can Campbell Live make the cut? -

Kiwis are a nation of meat exporters – we all know that.

But who knew that there’s an international competition for the men and women who process that meat for our shops, and for global markets? Or that we have our own national butchery team?

They’re called the Pure South Sharp Blacks, and they are rather successful at what they do.  . . .

New code set to speed up rate of innovation in NZ rural industry:

The Farm Data Code of Practice, launched today, is a first for the New Zealand agricultural industry.

The new Code of Practice outlines steps organisations must take to safeguard farmers’ data. Adoption and implementation of the Farm Data Code of Practice is expected to improve how farm information is shared and used.

Development of the Farm Data Code of Practice was funded by New Zealand dairy farmers through DairyNZ, and also the Ministry for Primary Industries (MPI) andFarmIQ. It is part of the Transforming the Dairy Value Chain programme, led by DairyNZ and Fonterra, under MPI’s Primary Growth Partnership. . . .

Fonterra explains why it thinks international demand for milk powders and cheese will remain relatively strong - Interest.Co.NZ:

A shift in supply and demand over the past few months is indicating that volatility continued to exert influence over the global outlook for dairy.

Prices have come off the peak reached in February this year.

There is currently more milk available for the international market to absorb, although demand from China and Russia still appears strong as global supply and demand rebalances.

Fonterra’s assessment of published industry statistics indicates that total dairy exports have reached 14.2 million MT, up 3% for the 12 months through to February 2014. Most of this growth appears to be from the European Union (EU), New Zealand (NZ) and the United States (US). . . .

Ballance hits half way in its biggest product innovation programme:

Ballance Agri-Nutrients has reached the half-way mark in its $19.5 million programme under the Ministry for Primary Industries’ Primary Growth Partnership (PGP).

The seven-year Clearview Innovations PGP programme is aimed at developing products, technology and knowledge to support sustainable, profitable farming. The programme has $9.75 million in support from the PGP.

Ballance Research and Development Manager, Warwick Catto, says the co-operative has made nitrogen and phosphorus efficiency a high priority in the programme. It is aiming to increase nitrogen uptake efficiency from the usual 10:1 return to 15:1 and to increase phosphate efficiency by 20 percent while minimising losses. . . .

Hamilton-based SummerGlow Apiaries applauds a new Manuka Honey testing method.

TE KOWHAI’S SummerGlow Apiaries has welcomed news from Hill Laboratories of a new manuka testing method which could save the honey industry millions of dollars a year.

The test checks for the “Manuka factor” are in the honey. This is an indicator of antibacterial activity, used to determine whether honey is pure manuka or a blend. Not all manuka honey has the unique activity and among those that do then the strength varies.

The tests used to cost $105 each, or $315 for all three, but “this new three-in-one can achieve it for only $70.

“This initiative is an important step in the right direction. SummerGlow Apiaries applauds any scientific developments that focus the consumer on Manuka Honey’s all important Non Peroxide Activity,” says James Jeffrey of SummerGlow Apiaries. . . .

 

You might need to be a ram breeder to appreciate this:
Postura das pernas do posterior....


Rural round-up

June 10, 2014

More qualifications needed in future:

A new report released by the Ministry for Primary Industries indicates a lot more people in the sector are going to have to have a tertiary qualification if they hope to take advantage of a predicted 15 percent increase in jobs by 2025.

MPI manager of science and skills policy Naomi Parker said even roles that traditionally did not require post secondary school qualifications would do so in future because of the increasing reliance on technology. . . .

Eradicating TB from Rangitoto enhances biodiversity:

TBfree New Zealand is working with environmental groups to stamp out pests in the Rangitoto Range to control bovine tuberculosis (TB) and bring the birds back.

The Hauhungaroa and Rangitoto ranges make up a part of New Zealand’s 10 million hectare TB risk area in which TB-infected wild animals have been found.

The objective of the national pest management plan is to eradicate the disease from at least 2.5 million hectares of the country’s total TB risk area by 2026. TBfree New Zealand aims to eradicate the disease from the Rangitoto Range as part of this plan. . . .

Water and governance under scrutiny at Massey:

Framing new ways for organisations to collaborate over controversial decisions, such as water use, is the focus of a Massey University symposium involving some of New Zealand’s key leaders in governance.

The July 8 symposium, Redefining Governance for the new New Zealand, brings together a diverse range of experts and thought leaders with experience in governance.

Speakers and panellists include Alastair Bisley (chair of the Land and Water
orum), Suzanne Snivelly (economic strategist), David Shand (public sector reformer and a member of the Royal Commission on Auckland Governance), Grant Taylor (Auckland Council’s governance director), and Dave Hansford (award-winning photographer and environmental journalist). . . .

Fonterra Appoints MD Global Operations:

Fonterra Co-operative Group Limited announced today the appointment of Robert Spurway to the role of Managing Director Global Operations, a newly-created position on Fonterra’s management team.

Chief Executive Theo Spierings said Mr Spurway was uniquely qualified for the position.

“Robert is currently Acting Director New Zealand Operations in NZ Milk Products, responsible for overseeing milk collection, manufacturing and logistics for the Co-operative’s New Zealand milk supply.

“One of our top business priorities is to optimise our global ingredients sales and operations footprint, so we can better manage price volatility and increase value, while ensuring a total focus on food safety and quality, and our customers’ needs. . .

 

 Technology to top farmers’ shopping list:

Agricultural Fieldays 2014 will be a measure of how the agribusiness sector is gearing up to capitalise on growing export opportunities, according to New Zealand’s largest agricultural lender, ANZ New Zealand.

“With an economic recovery in full swing and growing export demand for New Zealand agricultural products, the scene is set for farmers to again invest in the technology that will drive productivity,” said Graham Turley, ANZ’s Managing Director Commercial & Agri.

“Agri-business is New Zealand’s most productive and successful business sector and it achieves this through ongoing investment in market leading technology. Agri businesses are only as successful as they are because they constantly innovate. . .

 

Hottest new dairy technology designed in New Zealand:

Technology designed to bring the power of intelligent communication and unprecedented future proofing to dairy farmers’ milking systems will be highlighted at National Fieldays.

The product in the spotlight at this year’s show (11-14 June) on the Waikato Milking Systems stand is a newly designed product known as the Bail Marshal.

The New Zealand owned company’s Chief Executive Dean Bell says the innovative product has been designed to enable all technology devices on a milking system to work together seamlessly and continually communicate with each other. . . .

Sharp Blacks Get Ready for the Tri-Nations:

 

Pure South Sharp Blacks

Our national butchery team diced up their final practice yesterday proving they have got what it takes to defend their title against Australia and England next month.
This year our team of six top butchers, the Pure South Sharp Blacks, travel to Yorkshire, England to compete in the Tri-Nations Butchers’ Challenge.

After many months of refining their skill, the Pure South Sharp Blacks performance at their last practice, held at Wilson Hellaby in Auckland, has confirmed just how promising our national team is. . .

Ambitious Butchers Make the Cut:

The Alto Young Butcher and Competenz Butcher Apprentice of the Year is well underway with the Lower North Island Regional held yesterday in Palmerston North.

The Alto Young Butcher winner Alex Harper of The Village Butcher in Frimley, Hastings and Competenz Butcher Apprentice winner Amy Jones of New World Taumarunui have successfully secured their place to challenge some of the finest butchery talent in the country at the Grand Final in September.

Alex and Amy’s motivations are high with a study tour around Europe up for grabs if they are successful in the next stage of the competition. . . .

A taste of New Zealand in Dubai, Taiwan and Singapore:

New Zealand Trade and Enterprise has been giving the world a taste of New Zealand.

In Dubai, New Zealand was centre stage for the 2014 Taste New Zealand chef competition. Targeted at professional chefs, the competition aims to raise awareness of the diversity and quality of New Zealand food and drink products available in the United Arab Emirates amongst chefs, buyers, and food service and retail industry leaders. Last year, the competition helped NZTE customers secure $4 million in new deals. . . .


Rural round-up

June 9, 2014

Review Panel releases consultation document and plans for travel:

The Independent Forestry Safety Review Panel released its public consultation document today. The document can be found on the Review’s website at www.ifsr.co.nz.

WorkSafe New Zealand statistics showed that between 2008 and 2013, there have been 967 reported instances of serious injury related to forestry and logging. In this time 28 workers died in accidents. That is just one person fewer than were killed in the Pike River mining disaster. The Review is being undertaken to address this very poor safety record.

Panel Chair, George Adams commented that “Forestry in New Zealand is far too dangerous. Everyone in the industry recognises that fact and that’s why the Review has been established. It is clear change must occur to prevent injuries and save lives. The consultation document provides an opportunity for everyone in the industry and the public to have a say in what those changes should be”. . . .

Forestry industry leaders need to own, manage and measure contractor health and safety:

Forestry industry leaders need to make themselves accountable for the health and safety of their contractors if the industry’s poor safety record is to improve, the Business Leaders’ Health and Safety Forum says.

“They need to own this issue, and they need to manage it and measure how well they and their contractors are performing on health and safety,” says Forum Executive Director Julian Hughes.

A consultation document released today by the Independent Forestry Safety Review Panel highlights that there is no simple fix to forestry’s safety problems, Julian says. . .

Time for Silent Majority to be heard:

Forest safety is something that many of the leading forest contractors take seriously. So the next step in the forest safety review process is being welcomed by Forest Industry Contractors Association (FICA) and the many forest workers their members employ.

Several industry associations have a keen interest in ensuring that as many workers as possible get their voices heard by the panel members as they move around the country to discuss forest safety and how it can be improved.

One of the groups, the Forest Industry Contractors Association, represents over 55% of the companies providing forest operations and harvesting services. With staff numbers in the thousands it is important that they find their voice and make sure it is heard by review panel members. . .

TPP to live on in other acronyms even if it fails: Groser – Pattrick Smellie:

(BusinessDesk) – The negotiated positions of parties to the Trans-Pacific Partnership trade agreement will be crucial in developing other free trade pacts that are either emerging or on the table now, even if the current negotiations fail, says International Trade Minister Tim Groser.

Speaking in the Philippines as part of a business delegation in the capital, Manila, Groser said the TPP negotiations were now “at a crucial stage”, but that if the talks were to fail, the developments they achieved would still prove useful for the ultimate liberalised trade zone, the Free Trade Area in the Asia-Pacific, otherwise known as FTAAP. . .

Spider venom may hold key to saving bees:

Researchers believe spider venom may hold the key to protecting bees from harmful toxins after finding a bio-pesticide made from a combination of plant proteins and the arachnids poison is harmful to pests but not honeybees.

It is thought that neonicotinoid pesticides are behind the dramatic decline in honeybee populations, and this catastrophe could spell disaster for humans as food production greatly relies on pollinators such as the bees.

A team of Newcastle University scientists tested a combination of natural toxins from the venom of the Australian funnel web spider and snowdrop lectin bio-pesticides and found that it allowed honeybees to forage without harm even when exposed to unusually high doses. . .

Agricultural Fieldays keeps growing:

The sprawling national agricultural fieldays site at Mystery Creek near Hamilton has been a hive of activity as exhibitors get ready for the biggest annual event on New Zealand’s rural calendar.

Most of the major structures are up, but preparations and fine tuning will continue into the late hours on Tuesday night, before the gates open on Wednesday morning.

The exhibition area covers about 50 hectares with more than 900 exhibitors on 1380 sites. . .

Top NZ dairy technology goes on show in China:

For dairy operators in China looking to build new dairy complexes, leading dairy technology innovator Waikato Milking Systems and herd management technology company Afimilk offer total milking solutions.

Whether dairy companies in China’s growing dairy industry want a whole new large-scale milking system, or high-technology products to get more out of their existing milking system, these two companies have the expertise to deliver results. The companies will have a joint display at the World Dairy Expo in Xi’an in China on 13 to 15 June 2014. . . .

Commission begins process for the 2013/14 review of Fonterra’s milk price calculation

The Commerce Commission today released a paper outlining the proposed process and timeline for a review of Fonterra’s base milk price calculation for the 2013/14 dairy season. The base milk price is what Fonterra pays the farmers who supply them milk.

The Commission is required to review Fonterra’s calculation of the base milk price each year and 2013/14 is the second time the Commission will undertake a calculation review. The review will assess the extent to which Fonterra’s approach provides incentives for it to operate efficiently while providing for contestability in the market for purchasing farmers’ milk. The scope of the review is to only look at the base milk price, not the retail price that consumers pay for milk. . . .

Beef + Lamb New Zealand Welcomes Primary Sector Future Capability Report:

Beef + Lamb New Zealand says it’s important to have an understanding of the sector’s workforce requirements, to be well placed to take full advantage of the opportunities ahead.

The Minister for Primary Industries, Hon Nathan Guy, has today launched the ‘Future capability needs for primary industries in New Zealand’ report that forecasts the future workforce needs of the primary industries.

The report says that for red meat and wool, the challenge will be in training and retaining people with market and product-oriented skills as well as cultural and language capabilities. This is because over 90 per cent of the sheepmeat and beef produced in New Zealand is exported to overseas markets. . . .

Applications Open for Fonterra Farmers to Lock in Guaranteed Milk Price:

Following last week’s announcement of the 2014/15 forecast Farmgate Milk Price, applications are now open for Fonterra farmers to lock in a price for a percentage of their milk.

Building on the success of the Guaranteed Milk Price (GMP) pilot in the 2013/14 season, Fonterra has further developed the programme to give farmers even more flexibility to help manage the effects of commodity price volatility and give greater income certainty.

There will now be two opportunities in the 2014/15 season to secure a GMP on 60 million kgMS – up to 40 million kgMS is available in June, and up to 20 million kgMS is available in December. There is also a new approach to determine each GMP and allocate the available volume. . . .

Leading New Zealand wine brand celebrates a new beginning:

Matariki, one of New Zealand’s most prestigious wine brands has formally announced its return to market with the launch of its ultra-premium 2009 wines.

Now under the ownership of Taurus Wine Group Limited, the wines remain under the stewardship of John O’Connor and the watchful eye of the mother and her six daughters that form the visible stars in the Matariki constellation, appropriately re-appearing in the night sky on June 28 heralding the Maori New Year.

Matariki is marking its new beginning with the release of its flagship red blend, Quintology and single varietal range Les Filles (The Daughters), all from the 2009 vintage. . .

SATO Signs Master Service Agreement with Fonterra:

SATO, a leader in barcode printing, labeling, and EPC/RFID solutions, announced today that it has signed a Master Service Agreement (MSA) with Fonterra Cooperative Group Limited, a leading global dairy company based in New Zealand, to provide supplies, services, and support for barcode systems in Fonterra’s factories and distribution centers worldwide.

SATO has been working closely with Fonterra in New Zealand and Australia, playing an instrumental role in standardizing their barcoding systems and configurations. Furthering this partnership, SATO Holdings Corporation and Fonterra have signed an MSA which will cover all countries Fonterra operates in, allowing SATO’s global subsidiaries to better offer localized services matching the requirements of Fonterra operations in each country. Key applications that can be provided under the agreement include product traceability solutions, product anti-counterfeiting solutions, label management and printing solutions, wireless infrastructure solutions, and many more. . . .

Grand Final tickets selling out:

The showcase event of the rural community is just weeks away and tickets for events are selling out fast.

New Zealand Young Farmers members, supporters and competitors will descend upon Christchurch for the 2014 ANZ Young Farmer Contest Grand Final, 3-5 July.

Over a demanding three days the seven Grand Finalists will be put through their paces in a number of challenges, tested on all facets of New Zealand agriculture and farming.
Lincoln University Library will play host to the Official Opening, Thursday 3 July, 4.30pm, as the Grand Finalists come together for the first of two head-to-head challenges. Free for spectators. . .


Rural round-up

June 7, 2014

Use of blunt force on calves banned:

Primary Industries Minister Nathan Guy has confirmed the use of blunt force to euthanise calves will now be ruled out, except in unforeseen emergency cases.

“In February this year I asked the National Animal Welfare Advisory Committee (NAWAC) for advice on euthanising calves on farms by manual blunt force,” says Mr Guy.

“NAWAC received 357 submissions during consultation and a large proportion supported the proposed changes to the code. . .

  Minister launches primary industries capability report:

Primary Industries Minister Nathan Guy today launched The Future capability needs for the primary industries in New Zealand – a report that forecasts the future workforce needs of the primary sector.

“The report highlights that employment in the primary industries is expected to increase by 50,000 by 2025 to reach the Government’s goal of an export double. Over half of these workers will need a Tertiary or Level 4 Qualification,” says Mr Guy.

“New Zealand has a proud tradition in the primary industries – it’s an innovative sector that requires our best and brightest across a range of skills. As international markets become more sophisticated and competitive, it is crucial New Zealand’s primary industries keep pace. . .

  Sharemilkers and dairy farmers respond to vote call:

After being sent a rocket just over a week before DairyNZ’s 2014 levy referendum vote closed, sharemilkers and dairy farmers have responded with the strongest turnout since 2002.

“What an amazing turnaround from apathy to action,” says Neil Filer, Federated Farmers Sharemilkers section chairperson.

“From just over 20 percent sharemilker turnout with a week to go we’ve ended up with a shareholder turnout, 13 percent up on the 2008 result. . . .

US dairy takes aim at Fonterra:

A group of dairy companies in the United States has written to the country’s trade representatives urging them to tackle what it says is Fonterra’s unfair advantage during the Trans Pacific Partnership trade negotiations.

Companies aligned with the National Milk Producers Federation and the US Dairy Export Council wrote that the serious non-tariff policies of the New Zealand government have unfairly and uniquely given advantage to Fonterra.

They say these policies have allowed Fonterra to become the largest dairy exporting company in the world. . .

Warning about wild kiwifruit vines:

Bay of Plenty Regional Council and Kiwifruit Vine Health are urging kiwifruit orchardists and farmers to be careful about what they do with reject kiwifruit, as the picking season comes to a close.

They are also encouraging everyone to keep an eye out for wild kiwifruit vines and report sightings to the council.

The council said birds feed on kiwifruit that was left out on vines, in reject bins or dumped in paddocks for stock feed. Seeds dropped by the birds grow into wild kiwifruit vines in native bush and forestry blocks. . .

Why haven’t chickens died out yet?

A new UK government-funded project aims to unravel the history of bird domestication.

The ‘Chicken Coop’ experiment will examine human history from the perspective of our feathery friends.

It plans to find out everything from their dietary habits to why they haven’t been wiped out by disease caused by inbreeding. . . .


Dairy price down, dollar down

June 5, 2014

The GlobalDairyTrade price index fell 4.2% in yesterday’s auction, the eight fall in a row.

gdt4.6.14

 

 

 

 

That’s a reflection on increased supply of milk here and overseas.

gdt4614

 

 

 

 

 

 

 

 

 

It’s not a reason for panic.

Fonterra’s opening forecast for this season of $7 is the fourth highest.

The value of our dollar declined after the announcement which might be of comfort for those who think it’s too high.

That’s all of the opposition, most of whom are at best not very enthusiastic about dairying.

A conspiracy theorist might think their antipathy to dairying is, at least unconsciously, linked to their desire to erode the value of everyone’s earnings by devaluing our currency.

 

 

 

 

 

 


What’s in a glass of milk?

June 1, 2014

Happy World Milk Day:

 

Photo: Isn't it amazing stuff? Happy World Milk Day 2014! #fonterra #funfacts #worldmilkday
Photo: It's World Milk Day today! To join the global celebrations we will share some fun facts about #milk today with you. Around the world, 87,717 glasses of milk are consumed every second of every day. Amazing, isn’t it? Like if you agree! #fonterra #funfacts #worldmilkday

#worldmilkday


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