Rural round-up

September 29, 2014

Te Puni Kōkiri Chief Executive Hails Growing Success Of Māori Agribusiness at Ahuwhenua competition launch – 2014 FOMA Conference:

Speaking at the official launch of the 2015 BNZ Māori in Farming Award – Sheep & Beef (Ahuwhenua Trophy) at the FoMA Conference in Whanganui this evening, Te Puni Kōkiri chief executive Michelle Hippolite said: “The Ahuwhenua Trophy Competition remains a preeminent showcase for excellence, achievement, and for growing Māori innovation for economic prosperity.”
Looking around the room, Michelle said that those at the conference showed the depth and calibre of talent at the helm of large Māori farming enterprises around the country.

“Over the years, most of these Māori farm enterprises had featured as entrants and finalists in the Ahuwhenua Trophy Competition,” she said. “Today the competition could be credited with driving continued improvements occurring in Māori agribusiness, and which were now pushing it to the forefront of the sector.” . . .

Second hand TradeMe buys boosts farm change – Jill Galloway & Sandra Crosbie:

Ryley Short says that when the Fonterra tanker first came to collect milk at her Mt Stewart farm there were 10 people there cheering. They were all involved in converting the farm to dairy, wanting to see it succeed.

“The tanker driver was a bit surprised,” Ryley says. “He asked if this was the first milk picked up. It was. It had been a sheep and beef farm before the conversion.”

The switch by Ryley Short and her husband Mike to dairying is a conversion with a difference. They have relied a great deal on Trade Me for secondhand equipment, which they often get cheaply. Even the dairy shed came through the online auction website. . .

Production at demo farm reaches record level  -

Daily milksolids (MS) production for each cow on the Waimate West Demonstration Farm near Manaia in Taranaki is at its highest ever.

The daily per cow MS production has reached two kilograms in the third and final season of a trial that’s investigating the viability of integrating cropping on the dairy platform.

Twenty-five per cent of the farm is being planted in crops for the trial.

At last week’s spring field day on the farm, DairyNZ scientist Kevin Macdonald produced figures showing daily milksolids per cow to mid-September was almost half a kilogram higher than last year’s figure of 1.56kg. . . .

National’s Freshwater Fund may spur on-farm wetlands:

 Having worked with DairyNZ to analyse the $100m freshwater fund policy, recently announced by the National Party, Federated Farmers believes it could vastly improve water quality outcomes.

“The Fund to retire farmland would be perhaps better interpreted as a policy to create on-farm wetlands,” says Ian Mackenzie, Federated Farmers Environment spokesperson.

“After talking with the team at DairyNZ we’ve arrived at a very different conclusion to that other groups have come up with.

“Instead of looking at this as a linear purchase of land, or trying to recreate MAF’s old farm advisory division, think more along the lines of NIWA’s guidelines for constructed wetlands.

“A fund $10 million a year could purchase at least 286 hectares. Using NIWA guidelines and if turned into strategically located wetlands, DairyNZ and Federated Farmers believe it could remove 60-70 percent of Nitrogen from around 9,500 hectares of farmland. . .

 Sweet Success for Villa Maria at International Wine Show:

It was sweet success for Villa Maria last evening, collecting nine gold medals and the trophy for Champion Sweet Wine at the New Zealand International Wine Show, held at the Crowne Plaza Hotel in Auckland.

The New Zealand International Wine show is the country’s largest wine show, in its tenth year with over 2000 global entries, it gives recognition to wines that are or will be sold in New Zealand.

The world renowned show organised by Kingsley Wood of First Glass Wines of Auckland, has a panel of over twenty experts judging the high calibre of entrants, overseen by Chief Judge Bob Campbell, MW. . .

 


NZIER: water taxes will suck Otago & Canterbury dry

September 18, 2014

Water taxes could become a regional tax on Canterbury and Otago, seriously impacting those regional economies.

This is the conclusion of a New Zealand Institute of Economic Research (NZIER) report for Federated Farmers.

Care needs  to  be  taken  when  considering  taxing  competitive  agricultural  sectors since  countries  which  have  done  so  without  strong  justification  have  performed poorly (e.g. Argentina).

While there is little policy relevant data to tell us how much water is being used by the rural sector, preliminary estimates suggest that for every cent (per cubic metre of water) the rural sector is charged, $39 million will be taken out of rural communities.

This assumes  that  the  policy  is  enforceable  and  that  any  exceptions  could  be adequately  accommodated.1

Further, if  focused  on  irrigation  only,  the  tax  will predominantly fall on Canterbury and Otago  water users  (see following table), while traditional dairying areas such as Taranaki and Waikato will pay a minimal water tax.

While water  quality  is  reasonably  good,  maintaining  water  quality  is  a  major challenge that needs  to be overcome  with the  spotlight firmly on non-point  source agricultural run-off. Farmers need to be proactive in addressing this issue or others (e.g.  over-zealous  regulators, foreign consumers)  will do so  instead, possibly in ways that are less efficient for farmers and the country than an industry-driven initiative.

Doing nothing about water quality  is  not a sensible  option.  Neither is rushing ahead without sufficient information.  

But this is not a new problem. New Zealand can learn from other countries’ water quality regulatory experiences here and hopefully avoid making their mistakes. Some key lessons are:

  •  Addressing water quality that impacts on agriculture is a long term game. Rash decisions made now could have significant and costly unintended consequences
  •  Use science to determine minimum flows to sustain healthy water ways, and be flexible and adaptive in the management of the environment as scientific knowledge improves
  •  Using markets to allocate water between competing uses can be efficient and effective when conditions allow, but be aware that market forces alone will not solve all problems
  •  Water taxes will not be an effective allocation mechanism if significant physical, regulatory or information barriers exist. Specifically, further work is required in understanding the detailed water use trade-offs since we lack the necessary policy-relevant information, data and institutional capability
  •  Where possible, including urban areas within the same water allocation and trading framework will improve efficiency. . . .

It compares the policies of the National, Labour and Green parties and says:

There certainly  needs  to  be  a  step  up  in  primary  sector  –  and  other  sectors’  – responsiveness to this issue. But durable, effective water  trading  solutions take time to develop and must be based on robust analysis and facts, not rhetoric and ideology.

Voters should  be  wary  about  promised  policy  outcomes  when  the  evidence  base around  the  economic,  environmental,  social  and  cultural  impacts  of  the  proposed policies is far from complete. . .

There are no credible arguments against the importance of good water quality, the need to prevent degradation of water ways and clean up the dirty ones.

But imposing a water tax on Canterbury and Otago farmers to address problems all over the country, some of which have nothing to do with irrigation or farming, is not the answer to poor water quality in some areas and will create other problems.

It will also impose huge costs on a relatively small number of farmers in two regions:

“Let’s not kid ourselves that the road Labour and the Greens are travelling down with Water Taxes, looks more like regional farming taxes to us,” says Ian Mackenzie, Federated Farmers Environment spokesperson.

“The NZIER have calculated that a water tax of one cent on every cubic metre (m3) of water used for irrigated and stock purposes, means $39 million would need to be paid by farmers. 

“While Labour and the Green Party won’t confirm what they are considering, in 2011, the Greens campaigned on ten cents a cubic metre.

“If that happened then Canterbury’s farmers would foot 62 percent of the cost ($248 million) while 21 percent of the cost would fall on Otago’s farmers ($82 million).  Those two regions being where most of New Zealand’s irrigation happens.

“This represents something like a 13 percent bite out of agricultural GDP in Canterbury and 12.5 percent out of Otago’s agricultural GDP.  That’s one heck of a wallop and for what?

“These taxes have little to do with the political rhetoric of tackling water quality. There are plenty of regions with little or no irrigation, which have water quality challenges due to agriculture, industry and municipal influences.  

“It seems more about revenue generation to plug big spending promises and farmers, horticulturalists and vintners in Otago and Canterbury are being lined up to foot the bill.

“There’s no mention that these same businesses already pay thousands of dollars each year in ‘taxes’ to regional and district councils for the privilege  of accessing water.

“It doesn’t take a rocket scientist to work out that water taxes will only drive up the cost of food production, especially locally grown fresh vegetables and fruit.

“Are Kiwis really prepared to gift our domestic food market to other countries by pricing ourselves off the market?

“Labour and the Greens claim it will drive better and more efficient use of water. Well they are too late. Over the past ten years or so, farmers have been spending hundreds of millions of dollars upgrading on and off-farm irrigation infrastructure to more efficiently use water.

“This is plainly obvious for all to see in Canterbury with the proliferation of centre pivot irrigators.  With each one costing some $250,000, they allow the farmer to use substantially less water producing more food and fibre over traditional border dykes.

“There’s only so much money to go around for farmers to invest.  These proposed tastes will only slow down or stop a farmers’ ability to invest in new technologies.

“You’ve got to remember that we’re only using a fraction of New Zealand’s renewable freshwater resource, but the proper word is renewing.

“As the NZIER also notes, there are large informational, institutional and implementation gaps on water taxes. In our view, water tax proposals should have ‘use with caution’ in flashing red lights.

“If you want an example of a country with ill-founded and ill-thought out taxes that are like a wrecking ball through the primary industries then Argentina provides it.  Dr William Rolleston visited it earlier this year and saw for himself how everyone loses out there.

“By attacking Canterbury and Otago irrigators, there is such a dislocation between who you tax and the problem you want to solve, that the only thing you hurt is the economy.

“That’s why the media, politicians and commentators need to heed NZIER’s advice that, “care needs to be taken when considering taxing competitive agricultural sectors since countries which have done so without strong justification have performed poorly”.

“With some trading partners increasingly believing we are not responsibly harnessing our water resources to guarantee production, this is no place for policy experiments,” Mr Mackenzie finished by saying.

We don’t need an expensive experiment the direct costs of which will be carried by a relatively small number of farmers and the indirect costs of which will impact on Otago and Canterbury.

We need more of what’s already working.

This includes independently audited environmental plans for farms, which is what the North Otago Irrigation Company requires of all its water users.

Farmers already had lots of reasons to vote for another National-led government. This report provides them with more.


How much will people pay?

September 9, 2014

A correspondent to the Otago Daily Times, rev Steve O’Connor, (not online) asks:

Is it stupid to try to clean up our rivers and lakes inside a generation? Is it stupid to aspire to having all rivers and lakes swimmable, fishable and suitable for food gathering? Is it stupid to have regulatory safeguards and charge a little bit for large water takes for irrigation? . . .

We don’t have to choose between a thriving primary industry and clean water. We can have both. . .

To which Ian Mackenzie, a Federated Farmers board member responds:

The question Rev Steve O’Connor should be asking is how much he is prepared to pay in extra rates to clean up the Leith to swimming standards? that is to the standards of Moana Pool.

At the moment, run-off from the streets of Dunedin contaminates the Leith to about four times the acceptable level of E. Coli for safe swimming.

That has nothing to do with farming but it is he and the greater population of North Dunedin who are responsible.

I can now swim safely in the creek that flows through my farm because for years we have been investing in stock exclusion and riparian planting to ensure good water quality .

What did the rev O’Connor’s boss say about ‘he who is without sin’?

It is possible to have a thriving primary industry and clean water.

It is also possible to have clean water in urban areas but it will take time and money to achieve the high standard required for food gathering and swimming in many places.

How do the urban people so keen to have farmers – who by and large are already doing their bit to clean up the waterways they border – pay more, feel about paying to clean up waterways in their towns and cities?


Water policy attack on rural NZ

August 11, 2014

Environment Minister Amy Adams says Labour’s water tax is a pointed attack on rural New Zealand and small businesses that operate there.

“Labour is suggesting that rural New Zealand should pay taxes that no other New Zealander has to pay and should abide by rules that other water users aren’t subject to,” Ms Adams says.

“In fact, under Labour’s plan, the productive sector could be hit with a $60 million bill for every one cent of tax Labour imposes per cubic metre of water.

“You have to ask why Labour is looking to penalise farmers and small, rural businesses by making them and only them pay for water use when the issue of water quality is one that applies across urban and rural New Zealand.

“It’s an out-and-out attack on rural and provincial New Zealand.

“Only a few days ago Labour was claiming they supported small businesses. However, Labour’s water tax, which they are hiding the amount of, would cause real damage to hundreds of small, rural businesses in the productive sector.

“It’s not just costs dairy farmers would have to bear. Sheep and beef farmers in Canterbury, apricot growers in Roxburgh, market gardeners in Pukekohe and kumara growers in Dargaville could all be hit by Labour’s water tax.

“As Irrigation New Zealand points out, an equitable and affordable water tax will be impossible to implement and will cost a fortune to establish.

“If it was really about ensuring efficient water use, why is every other commercial water user, except farmers, exempt?

“A water tax will increase the cost of production which could mean higher costs for New Zealanders for products like milk, cheese and fresh vegetables.

“Improving the quality of our freshwater is important to us all but we must do it sensibly so it doesn’t cost thousands and thousands of jobs across regional New Zealand and impose millions of dollars of costs on communities.

“National’s plan will improve and maintain the economic health of our regions while improving the health of our lakes and rivers at the same time.

“With policies like this, Labour might as well give up the pretence that they care about rural and provincial New Zealand and the small businesses that are at the heart of these areas.”

Labour plans to tax “big” water takes but only those in the country that are used for irrigation.

If water has a taxable value for irrigation, why doesn’t it have a one for other big takes – like power generation and urban water supplies?

Labour isn’t going there because that would be too cost them far too much support.

For all they keep talking about supporting the regions they know they’ve got hardly any support there so it doesn’t matter to them that the tax will add costs to farming.

Unfortunately, while doing that,   it won’t contribute to their aim to clean up waterways:

. . .  IrrigationNZ does not believe that imposing an irrigation tax will lead to New Zealand’s rivers and lakes becoming swimmable.

“This policy fails to recognise the complexities of freshwater management in New Zealand and ignores the billions of dollars of on-farm capital investment which has been put into improving our waterways,” says Andrew Curtis, IrrigationNZ CEO. “A ‘fair and affordable’ variable rate water tax will be impossible to implement and will cost a fortune to establish,” he says. “In no other country in the world is irrigated water paid for through a tax.”

“There is much about Labour’s water policy which aims to yield the economic and recreational benefits of New Zealand’s water for all, this is good, but punishing irrigators by imposing a water tax is not the way to achieve this.

“The only robust and long term solution to restoring waterways is on a case by case basis engaging local communities to find solutions.

“It is time that the value of irrigation in terms of food production and creating jobs is recognised in New Zealand, as it is in every other part of the world. There is considerable public good gained from sustainably managed irrigated agriculture.”

IrrigationNZ would like to point out the following:

• Horticulture and viticulture is not possible in New Zealand without irrigation, therefore an irrigation tax will increase the cost of production and will be passed onto the public when they buy their fresh produce;

• irrigation in New Zealand is not free: irrigators pay for a water permit, pay to be part of an irrigation scheme, and operate within strict limits;

• it is inequitable to single out irrigators when hydro generators, commercial users and urban user will not be charged for their water takes;

• a charge on irrigators will reduce money available for mitigating environmental impacts;

• agriculture has been the backbone of this economy through what have been very challenging economic times globally – everyone has benefitted and now everyone needs to be part of the solution for cleaning up our waterways.

INZ is committed to finding a way for New Zealand to develop sustainably managed irrigation schemes within acceptable environmental limits.

“Water is our most valuable renewable resource and we believe that irrigation in New Zealand is essential to protect against climatic variations and to enhance the country’s ability to feed its population and to contribute to feeding the world,” says Mr Curtis.

Federated Farmers says its a thinly disguised anti-farming policy:

Federated Farmers is asking why the Hon David Cunliffe is talking about helping regional economies on one hand, while announcing new taxes on those same regions to knock them back on the other.

“This is a thinly disguised anti-farming policy that is trying to blame farmers and particularly farmers who irrigate, for all of New Zealand’s water problems,” says Ian Mackenzie, Federated Farmers Environment spokesperson.

“It is clearly misguided and worse it is opening the divide between town and country when we should be working together.

“They know they cannot bring all rivers and lakes up to swimming standards without rebuilding all urban storm water systems and clearing New Zealand of wildfowl at all, let alone, in 25 years.

“Taxing irrigators in Canterbury and Otago to fix up degraded waterways in other parts of the country seems patently unfair.

“As for the practical effect of their anti-farming Resource Rental policy, it can be summarised in Northland, Auckland and the Bay of Plenty as being principally a tax on horticulture.

“In Marlborough and I guess in parts of Hawke’s Bay plus Wairarapa too, it is a tax on grapes as well as fruit and vegetables.

“For the rest of us, it is a tax on wheat, vegetables and pasture production.

“Independent economic modelling indicates that a Resource Rental on water at one-cent per cubic metre of water takes $39 million out of farms and provincial economies.

“This is all money that farmers are currently spending on protecting rivers and streams. Money that is making the towns of Ashburton, Pleasant Point and Oamaru places of employment for thousands of people. The same provincial economies that David Cunliffe wants to help.

“I don’t understand how you can help those towns by punitively taxing the one thing that has driven some prosperity in those regions.

“The Greens want to beat up dairy farmers, Labour wants to do it to irrigators. When will these people realise that others in New Zealand take and pollute water as well.

“Irrigation may take 57 percent of water used but residential and industrial users take 43 percent according to Labour’s own source document. It seems a bit one sided to continuously blame only one sector of the community for effects caused by everyone.

“As New Zealanders we need to collectively own up to our responsibilities and work together if we are to make a difference.

“Farmers have done that. It is time Labour and the Greens recognised that and argued for policies that encouraged the rest of New Zealand to do so too,” Mr Mackenzie.

A general charge would impose costs on production which will affect profit margins or be passed on to consumers in higher prices for food.

It will also be imposed on those doing all they can to keep water clean – which is the majority of farmers – rather than directly targeting the few who don’t.

Water didn’t get dirty overnight.

It will take time to clean it up but good work is being done already with co-operation between farmers, milk companies, councils and community organisations.

That work won’t be helped by labour’s policy which is merely another of their anti-farming taxes.


Blue better for water than Green

July 30, 2014

Green isn’t the best colour for water, Federated Farmers environment spokesman Ian Mackenzie says:

The National Policy Statement (NPS) for freshwater may not have razzmatazz, but arose from that exercise in consensual collaboration called the Land and Water Forum [LawF].  It was the first time industry, councils, government departments and groups from Federated Farmers to Fish & Game, sat down to openly address water issues and find solutions.

At the heart of the NPS are our regional councils, who have been tasked with maintaining and improving water quality while bringing the poorest water quality up to a national minimum standard.  With next to no exceptions, this policy applies to all water bodies whether they are in town or country. This was an essential part of the LawF consensus and the government chose secondary human contact as the national minimum standard.  All of New Zealand’s top water scientists were involved in this.

The Green Party claim they are advocates for the environment and I would have thought they would have welcomed this important piece of legislation; whose intent is to keep New Zealand’s fresh water as the best in the world.

Being a farmer and with so many conflicting claims about water quality you may be dubious about what I am saying.  For an objective ‘warts and all’ water picture, can I direct you to the Land and Water Aotearoa (LAWA) website at www.lawa.org.nz.  It confirms our water quality is generally good, with many rivers and streams improving thanks to farmers’ efforts at riparian protection.

What we know is that most swimming spots monitored by regional councils over the warmer months are generally satisfactory for swimming.  The Greens often claim “60 percent of our water” is unsafe, but a vast number of sites are affected by urban runoff.  

When poor water standards are mentioned too many people blame farming but some of the worst water quality is in urban areas and the result of urban activities.

Now, the Green Party wants to make all water bodies swimmable.   This is disingenuous because of the sheer difficulty and cost of achieving it.

There are 425,000 kilometres of waterways in New Zealand, which would have to meet those swimming standards, 24 hours a day and 365-days of the year. 

The LAWA website states, “rivers and streams in (or downstream of) urban areas tend to have the poorest water quality (the highest concentrations of nutrients and bacteria, and lowest macroinvertebrate community index (MCI) scores).” This is because all our urban storm water systems are designed to use urban rivers and streams to take away all this run-off.  

The Landcare Trust is running a community project to clean up some of the urban streams that flow into the Tamaki River. Regardless of that effort and enthusiasm they will never be able to stop those streams from being contaminated to the extent that they will become safe for swimming. Think of the 150-page NZ Standard for public swimming pools, “to ensure the risk to public health is minimised.”  Most small schools have had to close their swimming pools because of problems maintaining that and other standards.   Trying to apply that standard to all fresh water bodies is a nonsense. 

This is where the Green Party is disingenuous.

When they say ‘all water bodies,’ they really mean only those in the countryside because they do not wish to alarm their core urban constituency.  The Green Party ignores the huge shift in farmers’ attitude towards environmental stewardship and underplays quantum leaps in management and mitigation of farm nutrients, the fencing of waterways, riparian planting, the strategic application of fertilisers and nutrient budgeting and the effects these are having on improving water quality.  The Greens do not mention that many of the sites NIWA test for its National Rivers Network that fail swimming standards are in fact rivers and lakes affected by urban run off. Instead they continue to blame farmers.

There is still more to be done but the imposition of higher standards by regional councils and improvements in farming practices are making a positive difference in many areas.

Farmers like me acknowledge that there is a lot more work we need to do and the vast majority of us are adopting practices and spending tens of millions of dollars a year which, given time,  will sort out our contribution.  But we are not the sole cause or the sole solution.  River quality reports are already showing the benefit of a change in farmers’ attitude toward environmental stewardship, but this narrative doesn’t fit the Green’s script.

The NPS by contrast will be law.  It gives communities the power to decide how much progress needs to be made and over what timeframe. It specifically encourages communities to decide what they want for their rivers and lakes while balancing that with the costs to society and the economy. It has the fish hook that over time, all water bodies will have plans for how they will meet community aspirations, so if the students of North Dunedin decide they wish to swim in the Leith at anytime and the ratepayers of that great Southern town can afford it and are prepared to prioritise that spending over all other, then that is their choice. My guess is the cost will have that city’s burghers muttering darkly at their haggis and prevarication will win.  That’s been the case in most major urban centres. 

The NPS may not have the sexy but implausible sound bite ‘swimmable for all’ but it gives that choice to the community to decide. It is practical, pragmatic and is the law. With water we’re in this together and the NPS underscores that. 

 The idea of being able to swim in every body of water is attractive but expensive and almost certainly an impossible standard to reach everywhere.

Dairying and recent intensification is blamed for poorer water quality but dirty water isn’t new.

My father was a carpenter at what was then Waitaki freezing works at Pukeuri  more than 40 years ago. That’s when the company had to build a huge reservoir to hold water which had to be treated because the water from the Waitaki River, which supplied Oamaru and other smaller settlements, wasn’t fit to wash export meat.

We’ve come a long way since then and while dairying is blamed for the problem it’s also working hard to be part of the solution with initiatives such as Fonterra’s Grassroots Fund:

Fonterra Grass Roots Fund

For those of you in Southland, head on down to Fonterra’s Living Water programme tomorrow with the Department of Conservation which works to enhance sensitive water catchments across New Zealand! Hear our plans, suggest ideas and get involved with some future volunteer opportunities. Enjoy demonstrations by freshwater scientists, a live fish tank display of local freshwater species and a BBQ lunch. It should be a great day! Address: Craws Creek Scenic Reserve, Waituna Lagoon Road, Friday 25th 2014 from 9:30 – 12:30. Any questions, please contact livingwater@fonterra.com
Photo: For those of you in Southland, head on down to Fonterra's Living Water programme tomorrow with the Department of Conservation which works to enhance sensitive water catchments across New Zealand! Hear our plans, suggest ideas and get involved with some future volunteer opportunities. Enjoy demonstrations by freshwater scientists, a live fish tank display of local freshwater species and a BBQ lunch. It should be a great day! Address: Craws Creek Scenic Reserve, Waituna Lagoon Road, Friday 25th 2014 from 9:30 – 12:30. Any questions, please contact livingwater@fonterra.com

There is general acceptance of a need to improve water quality in many areas.

The argument is about how far improvements need to go.

National’s policy imposes a a minimum standard.

It leaves it up to communities to decide how much higher they want, and can afford, their water quality to be.

They are the ones with the most to gain from cleaner water and they are the ones who will have to pay for it.

The Green policy sets an impossibly high standard and leaves communities with no choice regardless of their wishes and priorities.

Blue is a much better colour for water than green.


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 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. . .


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