Rural round-up

November 11, 2014

Cheese-making success recognised - Dene Mackenzie:

Whitestone Cheese, of North Otago, was founded in 1987 as a diversification during the 1980s rural downturn and a series of crippling droughts.

Last night, the company won the Westpac-Otago Chamber of Commerce Supreme Business Awards at the 2014 OBiz awards ceremony held in Dunedin.

About 330 people attended the function which is held every two years.

Notes provided to the Otago Daily Times said Whitestone founder Bob Berry’s experience in livestock trading was quickly applied to cheese trading. . .

Alliance pool payment first in 3 years - Sally Rae:

Alliance Group farmer shareholders will receive a pool payment for the first time in three years after a better financial result.

The company has announced an operating profit, before a $7 million pool payment distribution, of $17.6 million for the year to September, up from $8.4 million last year.

Turnover increased from $1.38 billion to $1.46 billion, while after-tax profit increased from $5.6 million to $6.2 million. . .

Merino genetics focus breeds success - Sally Rae:

When Gordon Lucas’ parents bought Nine Mile Station, the local land agent commented that it ”wouldn’t be a bad stepping stone for the lad”.

”Here I am at the end of my career and I’m still on the stepping stone,” Mr Lucas quipped.

He was outlining the story of Nine Mile Pastoral Ltd to those attending the New Zealand Grassland Association conference, which was based in Alexandra last week.

As part of several field trips, including Ida Valley Station and Hills Creek Station, those attending visited Willowbank, near Tarras, an intensive irrigated finishing property run in conjunction with Nine Mile. . .

Mobile Milking System, Bureaucrats & Regulations – Milking on the Moove:

When I decided to actually build the mobile cowshed & process my own milk, I knew that the regulatory requirements would be the hardest part.

New Zealand trades on our food safety reputation. We need to protect that reputation. I’m aware that even small scale producers have the potential to put our whole reputation at risk too.

With this in mind, I delved into all the regulations that a mobile cowshed would have to meet. 

The regulations for the farm dairy side of things are in a document named NZCP1.

People wanting to process milk will also need to know all the requirements of DCP1, DCP2, DCP3 & DCP4.  . .

MP welcomes trail initiative;

Clutha-Southland MP Todd Barclay congratulates the Gibbston community, landowners, and the Queenstown Trails Trust for delivering the $370,000 Gibbston River Trail which will join the Queenstown Trail as a part of the NZ Cycle Trail Great Rides network.

The Gibbston River Trail Upgrade was reopened today (8 November). Mr Barclay was presenting certificates to the landowners who provided easements to make the trail possible. . .

Feed Grain market tightens up:

Grain growers will be heading into the next harvest with silos completely empty, and an emerging potential for shortages. This is according to a recent study published by the Arable Industry Marketing Initiative (AIMI).

David Clark, Federated Farmers Grain and Seed vice-chairperson, says this time two years ago there was a glut of wheat and barley available to end-users.
“That has now been obliterated” he says.

“Twenty-four months ago the market had a big surplus of carry-over stock heading into the end of the year.

“Last year we made a big dent in that surplus, but these latest figures show that it has now disappeared. . .

Building the next generation of Federated Farmers - Casey Huffstutler:

When it comes down to it, people are the key to our primary industry success and even survival. They are our most precious resource.

Our value recognised in the multiple organisations set up to promote and support the industry and its people.  From education, to industry good, to insurance, to lobby organisations; New Zealanders are building a strong agri-community.  NZ Young Farmers and Federated Farmers sit at the core of this; made up of the very farmers this community exists for.

The Waikato and Bay of Plenty regions, of which I have been a NZ Young Farmers Field Officer for nearing on four years, have a great working relationship with Federated Farmers Waikato.  It is important to have cohesion between our young farmers and our farming leaders, to ensure we are supporting the next generation into the spotlight. . .

 Open Day aims to give public a peak at primary sector:

 Connecting city folk with ‘what goes on behind the gate’ is just one of the objectives for the upcoming Farm Open Day to be held at the Lincoln University Dairy Farm (LUDF).

Following on from the success of last year’s inaugural event, the farm will once again open its gates to the public to showcase the operations of a commercial dairy farm and provide perspective on the broader scientific, commercial and logistical aspects of sustainable food production.

The event is organised by the South Island Dairying Development Centre (SIDDC) and Fonterra, and will include nine outdoor educational demonstrations and displays which take people on the journey of ‘turning sunshine into food’. A central marquee will offer information to the public, along with samples of a range of milk-based products, such as cheeses, yoghurt, milk drinks and ice creams. . .

Building NZ’s reputation as a leader in food safety in China:

 New Zealand Government owned AsureQuality and PwC’s New Zealand and China firms are cooperating with COFCO, China’s largest agricultural and food products supplier, to continually improve China’s food safety and quality. All four parties signed a cooperation agreement to that effect on the side-lines of the 2014 Asia Pacific Economic Cooperation Summit in Beijing, China today.

Drawing on leading New Zealand and international food and agricultural models, the agreement formalises areas where AsureQuality and PwC will support COFCO in embedding best practice in food safety and quality across the food and agriculture industries. . .

Results Announced for the 2014 Fonterra Elections:

Returning Officer Warwick Lampp, of electionz.com Ltd, has declared the final results of the 2014 elections for the Fonterra Board of Directors, Directors’ Remuneration Committee and Shareholders’ Council.

Shareholders voted to re-elect incumbent Directors John Monaghan and David MacLeod. They will be joined by new Director Leonie Guiney.

Leonie Guiney lives and farms near Fairlie where she is Director of four dairy farming companies. Leonie has previous experience as a Consulting Officer, Dairy Production Lecturer and has studied overseas co-operatives in the Netherlands and Ireland. Leonie was the 2014 winner of the low-input Dairy Business of the Year. . .

 


Rural round-up

November 4, 2014

Read the story not just the headline – Jon Morgan:

Milk not as good as we thought? Milk may do more harm than good – not quite the headlines to lift the confidence of dairy farmers.

Unfortunately, they and others like them have been seen in major newspapers, on TV news and on news websites around the world in the past week.

They come from a study by Swedish researchers that comes to the conclusion that drinking more than three glasses of milk a day may not protect bones against breaking, and may even lead to higher rates of death.

The study suggests certain types of sugars found in milk may increase inflammation and oxidative stress, which can damage body cells.

To the credit of some reports, they also added high up in the story the researchers’ comment that they could not prove “cause and effect” and much more research was needed before anyone would be advised to limit their milk consumption. . .

Dairy farm focus on cost-cutting - Dene Mackenzie:

Dairy farmers will focus on the parts of their business they can easily change as their income drops in the 2014-15 season, according to ASB chief economist Nick Tuffley.

In his quarterly economic forecasts, released this morning, Mr Tuffley said the firstthings farmers would look at were likely to be feed and farm maintenance.

Last season, farmers had incentive to increase production through additional feed and, generally, the feed price was of secondary importance to feed availability. That resulted in palm kernel imports rising by 400 million kg, or 29%, on the previous season, at an additional cost of $120 millon, he said.

”This season, in many cases extra feed doesn’t pay. Farmers may reduce the amount of feed they purchase or make what they do have go further.” . . .

Uruguay link still strong - Sally Rae:

Back in the 1960s, a young Enrique Larraechea, from Uruguay, visited the Robertson family in West Otago and bought a Romney ram.

Decades later, Mr Larraechea has returned, recently purchasing rams from Blair Robertson at the Merrydowns stud at Waikoikoi, and his uncle David Robertson, at the Aurora stud at Palmerston.

Buying from the Robertson family had become a ”very, very nice family tradition” over the years.

”I feel very much together with them … we have complete faith in each other,” Mr Larraechea, known as Kike, said.

In the 1960s, he travelled throughout New Zealand looking at sheep. While the rams in the north were ”very nice” and very refined, they were not what he wanted in a commercial sheep. . .

Speech to Fonterra UHT plant opening in Waitoa - Nathan Guy:

It’s great to be here today at the official opening of Fonterra’s new UHT milk processing plant.

This is a $126 million project which has been completed in just 12 months, and has created 100 new local jobs.

It’s a real vote of confidence in New Zealand’s dairy industry, which continues to be a major contributor to our economy. Dairy is our biggest single export earner.

Our farmers produce a quality product that ends up in over 100 countries around the world. The primary sector is the backbone of our economy that generates around $4 million an hour. This helps the Government get back into surplus and invest in things like schools, hospitals and roads.

As a Government we have an ambitious goal of doubling the value of our primary sector exports to $64b by 2025. . .

 

 

Building sheepmeat demand globally:

The Sheepmeat Council of Australia (supported by Meat & Livestock Australia), Beef + Lamb New Zealand and Organismo de la Unidad Nacional de Ovinocultores (‘the National Mexican Sheep Producers Organisation’) have signed a Memorandum of Understanding (MoU) on sheepmeat cooperation.

The MoU recognises that the sheepmeat industries of Australia, New Zealand and Mexico share the goal of building sheepmeat demand globally. There are also a number of other common objectives including animal health and welfare, food safety, environmental sustainability, and industry profitability.

Beef + Lamb New Zealand Director Andy Fox said there are considerable advantages to be gained by working together to further these objectives.

“The Australian and New Zealand sheepmeat industries are seeking to build relationships with producer organisations from around the world. The reality is sheepmeat faces strong competition in the marketplace from other protein sources. It is important the sheepmeat industry works together to promote our premium product,” Mr Fox said. . .

New Agri One chief executive appointed:

Lincoln University and Massey University are pleased to announce the appointment of Mark Williamson as chief executive officer of their joint venture, Agri One.

Mr Williamson was formerly domestic marketing manager at Solid Energy and has extensive management and marketing experience.

Agri One was set up in 2011 with a focus on the two institutions working together to create new market opportunities. It promotes research-led education to assist farming and agri-food industries and facilitates professional development courses, joint research proposals, and seminars and symposia in the area.

It also undertakes a brokering role to introduce agri-food businesses to academics at Lincoln University and Massey University. . . .

 

 


Rural round-up

September 24, 2014

Beef surges to record on US demand for hamburgers, outlook upbeat – Tina Morrison:

(BusinessDesk) – Prices for beef used in hamburger patties in the US are likely to hold at elevated levels after surging to a record in the past year as drought-ridden American farmers rebuild their herds, boding well for kiwi farmers, an analyst says.

The price for US imported 95CL bull beef, the raw ingredient for meat patties, has surged 59 percent to US$3.18 a pound in the past year, according to Agrifax data. In New Zealand dollar terms, the price is at $8.37 per kilogram, beating the previous record of $6.60/kg in 2001.

“It has just been rocketing up very sharply. It is well into record territory now,” said Nick Handley, senior sheep and beef analyst at Agrifax. “If prices can stay anywhere near these levels, it’s extremely positive for New Zealand because you expect a lot of that to flow through to New Zealand processors and New Zealand farmers.” . . .

Time right for large irrigation schemes:

Farming and irrigation lobby groups are eager for the new Government to change environmental rules and get large-scale irrigation schemes up and running.

Lobby groups Federated Farmers and Irrigation New Zealand say the time is right, with the National Party being re-elected by a handsome margin for the Resource Management Act to be reformed.

Irrigation New Zealand chief executive Andrew Curtis said today that proposals by Labour and the Green parties to tax water did not find favour with irrigators, and National’s resounding win on Saturday gives them more confidence.

Mr Curtis said Irrigation New Zealand wants to see changes to the RMA. . .

Farmers Disappointed with Milk Price Drop, Cautious Approach Required:

Fonterra Shareholders’ Council Chairman, Ian Brown said Farmers will be disappointed following the Co-operative’s latest drop in its 2014/15 forecast farmgate Milk Price to $5.30 per kg/MS.
The Co-op also announced an estimated dividend range of 25-35 cents per share.

Mr Brown: “Even though Farmers are aware of the prevailing market conditions and the effect they have on the price they receive for their milk the announcement will add to the challenges being faced on-farm.

“It is in these seasons that Farmers will want to receive the full benefit from the integrated supply chain that their Co-op provides. . .

Great Result for Farmers Following Challenging Year for Co-Op:

Fonterra Shareholders’ Council Chairman, Ian Brown said the 2013/14 season was one of real complexities for the Co-operative yet produced a great result for Farmers.

Mr Brown: “The farmgate Milk Price of $8.40 per kg/MS has come on the back of a season in which good production was supported by strong demand and high prices.”

“This will be very well received by Farmers.”

Mr Brown said it was important to recognise that the same factors which positively affected the farmgate Milk Price, such as the demand for milk powders, contributed to the challenges faced by the business in terms of profit as evidenced by the Earnings Before Interest and Tax (EBIT) figures. . .

 Couple give their farm to university – Jill Galloway:

It was a time for celebrating.

After 10 years, Bulls-Marton farm owners Jim and Diana Howard found they could work with Lincoln University and it had a deal with local iwi Ngati Apa.

It had not been for lack of trying to find a like-minded partner.

But now it has come together – a demonstration farm that local farmers can look over the fence at, and get good ideas, as well as a farm to train people in sheep and beef and cropping.

That was what the Howards wanted and they have given their farm to the Lincoln Westoe Trust. . .

Candidates for Fonterra Board of Directors’ Election Confirmed:

Candidates for the Fonterra Directors’ Election were announced by the Returning Officer, Warwick Lampp today following the completion of the Candidate Assessment Panel (CAP) process.

This year there are six candidates standing for the Board of Directors. They are Gray Baldwin, Leonie Guiney, David MacLeod, John Monaghan, Garry Reymer and Grant Rowan.

As in previous years, the CAP process was available to assess the capabilities, experience and qualifications of Director candidates and provide Fonterra shareholders with more information to help in making an informed vote. While the CAP process is open to all Director candidates, it is not compulsory. This year all candidates went through CAP. . .

 

Pahiatua Company Announced as New Zealand Innovators Awards Finalist:

Pahiatua company, DTexH2o, has been named as a finalist in the Innovation in Agriculture & Environment category of the prestigious New Zealand Innovators Awards.

The company’s innovative product, DTexH2o, is an in-line electronic probe that detects the difference between milk and water in the cowshed milk line.

Founders of the company, Graeme and Alison Franklin, said the DTexH2o uses an alarm to stop farmers spilling milk down the drain or getting water in the milk vat during wash-down.

“When a farmer washes-up the milk line, water is pumped through the pipes, pushing the last milk through into the vat. The farmer must manually turn the valve to re-route the water to stop it going in the vat,” Alison said. . .

New Chairman Excited by Gimblett Gravels Opportunities:

Less than a week into his role, new Gimblett Gravels Winegrowers Association (GGWA) Chairman, Gordon Russell, is already working on plans for GIMBLETT GRAVELS future success.

Esk Valley’s Senior Winemaker, Gordon says, “I am honoured to become Chairman of this talented group of growers and wine producers. I would like to carry on the work of outgoing Chairman, Tony Bish of Sacred Hill, whose strategic direction and dedication over the last two years has significantly raised the profile of GIMBLETT GRAVELS wines, both in New Zealand and on the international stage. . .


Environment first for farmers

September 20, 2014

Lincoln University research shows environmental stewardship is a high priority for farmers:

Farmers on properties with a net annual profit less than $50,000 list ‘minimising pollution’, ‘improving the condition of the property’ and ‘ensuring employees enjoy their job’ as more important objectives than ‘expanding the business’ or ‘making a comfortable living’.

That’s according to the latest results from research conducted by Lincoln University Senior Lecturer in Farm Management Research, Dr Kevin Old, and Research Fellow, Dr Peter Nuthall, who sought opinions and preferences with regard to farm succession and governance.

According to the researchers, the prioritised objectives of less profitable farmers may reflect a mindset which has largely dismissed the idea of achieving larger returns or expanding the business on grounds that these are essentially unobtainable. As such, job satisfaction or meaning comes from notions of environmental stewardship or quality of life.

Interestingly, farmers on properties with lower returns also placed ‘attending field days’ as one of the lowest objectives.

There could well be a link between this apparent unwillingness to learn and low returns. But it could also be that these farmers don’t feel they can afford the time off their farms.

For more profitable farms (those with a net annual profit of $100,000-$150,000) the same objectives appear as top choices, albeit in a slightly different order. These farmers put ‘it is important to make a comfortable living’ at the top of the list. However, the other top ranked objectives are in the same order with ‘minimise pollution’ fitting in after ‘ensuring employees enjoy their job’.

Of great surprise to the researchers was the objective ‘it is important to pass the farm to family’ being placed at the bottom of the list as the lowest ranked objective. . .

I think this has changed after the ag-sag of the 80s when farms couldn’t afford to have adult children come home and they got work elsewhere.

New Zealand has historically had an orientation toward the family farm: ownership systems were simple, and most farms kept one or two people fully occupied. Likewise, objectives were orientated toward farming ‘as a way of life’. The research aimed at ascertaining whether this traditional model has changed and to what degree.

It was found that the average age of farmers in New Zealand in 2006 was 50, but in 2013 this had edged up to 53. The average farm size has similarly increased, from 557 hectares in 2006 to 591 hectares in 2013.

The average number of people working on the farms has also increased. In 2006 it was 2.05, whereas the figure for 2013 sits at 2.76.

The researchers noted that changes in employment levels per farm are most pronounced in the dairy sector. This is no doubt due to growth in the sector which has seen dairy production increase from 951.5 kilograms of milksolids per hectare in 2006 to 1134.3 kilograms of milksolids per hectare in 2013 (compared with a drop in lambing productivity from 130.3 percent to 127 percent).

The South Island in particular has seen a notable increase in average farm size, which has gone some way to contribute to the fact that 3.2 percent of all farms in New Zealand – all of which are dairy operations – now have eight or more people working on them.

Across all farm types, 25 percent are run by a single person. Farms with two people make up a further 41 percent, with three person farms covering an additional 13.5 percent. As such, close to 80 percent of farms in New Zealand are still low labour operations.

Of note, 20 percent of all New Zealand farms are sheep farms and have three people or fewer working on them.

It was also found that sheep farms experience less of a problem finding sufficient labour than dairy operations.

That reflects our experience.

Along with the increasing age of farm managers, the number of years which farmers own their farms is probably increasing. Currently the average length of ownership is 25 years.

Another change is likely to be in the number of farms each farmer has an interest in. While nearly 60 percent of farmers are involved with only one farm, the average across all farm types is 1.75 farms. This number is increasing, however, largely due to the growth in dairying, with some farmers holding an interest in more than seven farms.

It was found that family farms have a variety of ownership systems. Private companies are becoming important, with 14 percent of the respondents noting they have such a company. This might be combined with various other ownership systems, of which a trust could be one. In fact, the results showed that trusts factor into 47 percent of all properties in one form or another. Of the respondents, only 1.24 percent reported a public company ownership model.

Of all partnerships, around 70 percent involve a spouse. An additional 25 percent also involve one or more family members, but partnerships with non-family members are uncommon. A farmer’s spouse is also an important person in the case of trusts.

The researchers found that, on the whole, family ownership systems are such that the farmers themselves make most of the decisions. Indeed, the farmers reported they were the main decision maker on 71 percent of the farms, although they do frequently consult other family members before acting. It is suspected that this has probably changed over the years. Overall, it is likely that family members and other ‘important people’ are increasingly consulted.

All in all, while farms are certainly getting larger and farmers are staying longer on their farms, ownership systems largely remain relatively simple, and farmers continue to make most of the decisions on their own. Likewise, farmer objectives probably haven’t changed much, although the extra emphasis on the environment and sustainability was surprising.

“If you believe all that you read you would get the impression that New Zealand farming is going corporate,” says Dr Peter Nuthall. “But, while it is true that some corporate or quasi-corporate family arrangements exist, by far the majority of farms are simple family affairs.”

Farming doesn’t provide a high return on capital so is more suited to family operations than corporate ones which generally are more focussed on the bottom line over a shorter time period.


Rural round-up

August 10, 2014

Transformation reaps top award – Annette Scott:

David Crutchley used to feel he was a lone voice but his rise to the top in the inaugural Green Agriculture Innovation Awards has transformed that loneliness to fame. He talked to Annette Scott.

David Crutchley might be familiar to many as a champion dog trialist on the popular 1980s television series A Dog’s Show.

Now he has won fame in the inaugural Green Agriculture Innovation Awards (GAIA) for innovation in pastoral transition.

Crutchley was the supreme winner of the awards.

The humble high-country farmer achieved ground-breaking results finding a profitable way to support growing family enterprises.

“The farm was dead,” he says. . .

Late planting of crops will cause shortages - Heather Chalmers:

Canterbury arable farmers will be hoping for favourable conditions in coming weeks to get a backlog of crops in the ground, months later than usual.

Record wet, boggy conditions in autumn prevented many farmers from planting autumn-sown cereals, with the delayed planting expected to impact on yields come harvest time, says Federated Farmers South Island grain and seed vice-chairman David Clark.

Farmers on heavy soils in the Mid-Canterbury districts of Eiffelton and Wakanui as well as parts of South Canterbury were unable to get machinery on to paddocks for autumn sowing. . .

Demo farm stays on course – Tim Cronshaw:

A lower milk payout will leave little “wiggle room” for the Lincoln University demonstration dairy farm to reach planned targets under its self-imposed tightening of nitrogen losses, following its bumper profit last season.

Under a milk payment of $8.40 a kilogram of milksolids the Lincoln University Dairy Farm achieved a record $1 million result in 2013-14. This result is after farm expenses were removed but is slightly skewed as it is a demonstration farm and normally some of this return would be taken by tax, investment capital, debt, drawings and dividends.

Another $100,000 would have been added had its managers not committed to limiting nitrogen losses. . .

Dairy production for China begins – Jasmine O’Donoghue:

Pactum Dairy Group (Pactum) and China’s Bright Dairy has begun initial production of U+, which is to be shipped to China as a part of the duo’s strategic supply agreement.

The 250mL dairy product U+, will be the first Australian based high quality dairy product manufactured for a major Chinese dairy company under its own brand.

U+ will be marketed on Australia’s reputation for high quality dairy product, and will be launched in China in August. . .

2015 ANZ Young Farmer Contest Season Opens:

Young Farmers from around the country will be sharpening their agricultural skills over the coming weeks and months as entries are now open for the 2015 season of the ANZ Young Farmer Contest.

The season is set to launch in Taupo Friday 3rd October with the first district final, Bay of Plenty, held Saturday 4th October in Tihoi.

District finals run from October to December and are the entry level for the ANZ Young Farmer Contest. Entry is open and free to all paid members of New Zealand Young Farmers between the ages of 15-31 (entrants must be under 31 years of age at 1st January 2015). Competition hopefuls can enter online at www.youngfarmers.co.nz . . .

It's over and out from national office for the weekend. Here's a Friday funny to put a smile on the dial :-)


Rural round-up

August 1, 2014

Westland forecast follows Fonterra’s suit:

The dairy cooperative, Westland Milk Products, has charted a similar course to Fonterra’s benchmark forecast released yesterday for the current 2014/15 season, by announcing a pay-out forecast of $6 to $6.40 per kilogram of Milksolids (kg/MS).

“Given Fonterra’s announcement yesterday, farmer-shareholders on the Coast appreciate this early heads-up from our co-op,” says Renee Rooney, Federated Farme0rs Dairy chairperson.

“Even better is firming confirmation of the 2013/14 final payout in the $7.50 – $7.70 kg/MS range. Of course we’ve got retentions on top but it is set to be a good payout and Westland’s supplier communication has been pretty good. . .

Heads of Agreement and Strategic Relationship formed between Te Rūnanga o Ngāti Apa and Lincoln University:

Te Rūnanga o Ngāti Apa and Lincoln University today announced the signing of a Heads of Agreement and Strategic Relationship.  This relationship agreement forms the basis for partnerships across education, training, research and commercial development.  The Ngā Wairiki-Ngāti Apa people of Whangaehu, Rangitīkei and Turakina own the Rūnanga, and have interests in seeing their people developed in all levels of the primary industries.  The Rūnanga is also keen to see the general Māori population in the region given better access to primary sector training and tertiary education.

Rūnanga Chairman Pahia Turia said that “Through our Treaty settlements we have land, and we have recently established Te Hou Farms Limited Partnership which purchased the historic Flock House farms near Bulls, early in June.  We are therefore committed investors in the primary sector, and we have a real interest in seeing our own people developed and working at all levels in the primary sector on and around our investments.” . . .

The Changing Face of the Global Dairy Industry:

Standing in front of the milk powder dryer of Oceania Dairy Limited’s new factory at Glenavy, Shane Lodge has a feeling of deja vu – but with a difference.

Shane’s 30 year career in the dairy industry has seen him involved in new plant construction for Fonterra and New Zealand Dairy Limited. The difference this time, is that Oceania’s owners are Chinese and that is a reflection of the changing face of the global dairy industry. . .

How to take the anxiety out of farm succession planning:

Many farmers put succession planning into the too hard basket because of rising capital values, but it’s a crucial process that will be a lot less fraught with danger if family members are involved in the process, says Neil McAra, Crowe Horwath’s Managing Principal – Southland.

“It’s never too early to start planning for retirement and farm succession,” said Mr McAra, who noted that one key to a successful plan was distinguishing between reward for services provided by family members and the risk/reward for ownership/investment in the business.

Another key element was for the farm owners to ensure they had considered whether they would have an ongoing role in the business, and define what that role would be.
“To alleviate the possibility of things getting off track, it is important to ensure that owners adequately plan for the future of the farm and the people within it, so that all runs smoothly and they can enjoy the transition process.” . .

Fisheries (Foreign Charter Vessels and Other Matters) Amendment Bill passes third reading:

A bill to strengthen the regulation of foreign-owned commercial fishing vessels operating in New Zealand waters has passed its third and final reading in Parliament today.

The Fisheries (Foreign Charter Vessels and Other Matters) Bill will require all foreign charter vessels to carry the New Zealand flag from 1 May 2016, and operate under full New Zealand legal jurisdiction.

“This bill will help maintain our reputation around the world. It shows that we are serious about the fair treatment of fishing crews, the safety of vessels and New Zealand’s international reputation for ethical and sustainable fishing practices,” Mr Guy says. . .

Seafood New Zealand Says Kaikoura Conservation Legislation a Community Template:

Seafood New Zealand has hailed the passage of the Kaikoura (Te Tai-o-Marokura) Marine Management Bill by Parliament today as a template for seafood and environment conservation measures throughout New Zealand.

Parliament passed the bill into law on the last day of sitting before the House rose for the election campaign.

Seafood New Zealand Chief Executive Tim Pankhurst says the legislation is designed to serve the long term interests of those who use and enjoy the Kaikoura coastline. . .

Rural Valuer recognised with top industry award:

QV registered Valuer David Paterson has had his outstanding service to the valuation profession recognised with the New Zealand Institute of Valuers (NZIV) Premier Award – the John M Harcourt Memorial Award.

Paterson, who has been a valuer for more than 30 years and is the National Manager of QV business, Rural Value, accepted the award in front of 300 attendees at the NZIV conference in Rotorua earlier this month.

He told the audience, “I feel honoured to receive this award, especially when you note some of the previous recipients.” . .

Aussie investors to sell their NZ vineyard investments:

The high value of the New Zealand dollar has motivated the Australian owners of several vineyards in the heart of New Zealand’s premier sauvignon blanc grape growing region to place two of their properties on the market for sale.

Both neighbouring vineyards are in the highly-fertile Waihopai Valley in Marlborough. The larger of the two vineyards is a 43 hectare holding – with almost 38 hectares planted in a mix of sauvignon blanc and pinot gris varieties. The second vineyard is a 36 hectare landholding planted in almost 24 hectares of sauvignon blanc grapes. . . .

 


Rural round-up

July 30, 2014

Speech to Red Meat Sector conference – Nathan Guy:

Good evening and thank you for the opportunity to address you all tonight.

Following some challenging years, there are strong indications of improved results for many companies in the sector this year.

This resilience is a reflection of the hard work of people throughout the red meat sector.

The meat and wool sectors make up 21 percent of total primary sector export revenue at an estimated export value of $8 billion for the year ending 30 June 2014, which is a record.

The recovery of dry stock numbers after last year’s drought and the productivity improvements need to be acknowledged.

In the face of forecast decreases in stock numbers these capabilities will be important assets for the future. . .

Growth in global milk pool ‘unusual,’ says Spierings, in cutting forecast - Jonathan Underhill:

(BusinessDesk) – The global market for dairy products have been in the unusual situation where most producers have been lifting supply, while demand weakened in China, Southeast Asia and the Middle East, says Fonterra Cooperative Group chief executive Theo Spierings.

The world’s biggest dairy exporter today cut its Farmgate Milk Price forecast for the 2014/2015 year to $6 a kilogram of milk solids from a previous forecast of $7 kgMS, reflecting a slide in global dairy prices, which touched their lowest levels since December 2012 in the latest GlobalDairyTrade auction. It flagged a dividend of 20 cents to 25 cents, up from last year’s 10 cent payment.

“All milk pools around the world showed significant growth – we see milk coming from everywhere,” Spierings said. “On the demand side, China is looking at pretty high inventories” although in-market sales “are still very, very strong in China.” Demand in Southeast Asia and the Middle East had dropped off faster than expected as rising prices were passed onto consumers, he said. . . .

Agri industry passion leads to new appointment – Rabobank:

With a clear passion for the agricultural industry and strong knowledge of the sector, Georgia Twomey is thrilled to be appointed as a commodity analyst in Rabobank’s Food & Agribusiness Research and Advisory team.

Based in Rabobank’s Australia/New Zealand head office in Sydney, Ms Twomey will oversee sugar, cotton and wool – three key sectors for Rabobank’s business in the region.

Ms Twomey says she has always loved working in the agricultural industry, particularly being raised with a farming background, growing up in Goulburn in southern New South Wales.

“I love the agricultural industry and believe the sector really holds the key to Australia’s future economic security,” she says. . .

More emphasis on microbes required in food safety -

Current concepts regarding food safety and security may be inadequate for fully addressing what is an increasingly complex issue. That’s according to Lincoln University Senior Lecturer in Food Microbiology, Dr Malik Hussain.

Dr Hussain has been invited as a representative of the University’s Centre for Food Research and Innovation to the Asian Food Safety and Security Association Conference to be held in Vietnam in August. He will also chair a workshop at the conference on risk assessment and management with regard to food safety.

Although the matter of food safety and security may sound simple enough, it is, in fact, a multi-dimensional and complicated issue, made all the more so from increasing pressures stemming from rapid population growth. . .

Steve Yung appointed as new Sealord CEO:

Sealord Group Ltd’s Board of Directors has appointed experienced food industry leader Steve Yung as the company’s next CEO.

Canadian born Yung has most recently been Managing Director of McCain Foods Australia/New Zealand and will take up his new role, based in Auckland on the 25th August 2014. He was a member of the global Senior Leadership Team at McCain.

Sealord Group Chairman Matanuku Mahuika said Yung has a strong set of skills that will help the company’s growth and development, particularly in the Australian market. . . .

Protecting your winter grazing business:

Both graziers and those sending animals for grazing have obligations under the NAIT programme to record the movements of animals from farm to farm. It is the grazier’s responsibility to record a NAIT movement from the grazing block to the home farm for animals that have been wintered on their property.

It’s also important that the person in charge of the animals at the receiving home farm confirm with NAIT when the cattle arrive back from grazing.

This can be done through movement related notification emails that include a direct link to the NAIT system, where animal movements can be confirmed or rejected in just a few clicks. Alternatively, you can contact NAIT on 0800 624 843. . . .

UK supermarket giant partners with New Zealand Ag-Tech company for major R&D collaboration:

British supermarket Sainsbury’s is teaming up with New Zealand’s Techion Group to run an international, cutting edge, technology project. The two-year international research & development project will roll out on-farm technology to effectively manage parasites increasing product quality and profits for farmers.

 J Sainsbury Plc, in conjunction withTechion Group Ltd, has announced Sainsbury’s will support the cost of implementing Techion’s technology, the FECPAK G2 system, both in New Zealand and the UK. The project team includes meat processors Alliance Group (NZ), Dunbia (UK) and Randall Parker Foods (UK).

Greg Mirams, Founder and Managing Director of the animal parasite diagnostics company, Techion, is at the centre of the project. He is confident it will have a significant impact on farmers’ profit and efficiency here and in the UK. . .  .


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