Rural round-up

Field Days opinion poll reveals effects of the drought is seen as biggest challenge for agricultural industry:

An opinion poll of visitors to the annual Agricultural Field Days 2013 shows that 54% of respondents believe the effects of the nationwide drought are the biggest challenge facing New Zealand’s agricultural industry this year.

The Aggreko Thought Generator poll was conducted during the first three days of Field Days event. Visitors completed an iPad questionnaire hosted by Aggreko, the world leader in the supply of temporary power and temperature control solutions. The poll aimed to gauge industry sentiment around a number of topical issues. . .

Key notes: supporting rural communities:

New Zealand’s primary industries have been in the spotlight this week, with the annual Fieldays taking place at Mystery Creek near Hamilton.  I’m enjoying talking to farmers, exhibitors, and members of the public at the event today.

Fieldays is an opportunity for us to reflect on the importance of our rural communities.  Agriculture and the wider primary sector are the backbone of New Zealand’s economy.  When it succeeds, New Zealand succeeds.

National’s economic plan has real benefits for the primary sector. When we cut the company tax rate to 28 cents in the dollar in 2010, we knew this would make life easier for New Zealand businesses, including farmers. And it has. . . .

Bloody Friday – Offsetting Behaviour:

Saturday mornings, I cook pancakes. While cooking pancakes, I listen to Duncan Smith and Susan Murray’s Country Life programme on Radio New Zealand (as do all good Kiwis). It’s often a wonderful celebration of rural entrepreneurship.

I had never heard of Bloody Friday. And so I last week learned something new.

Friday, 9 June, 1978: 300 farmers released 1300 ewes onto the streets of Invercargill, herded them through the streets, then slaughtered them right there to the surprise of onlookers.

The Meatworkers’ Union had made it impossible for the farmers to get their stock to slaughter. Sheep were starving in the paddocks because the feed had run out; the farmers had planned on getting their stock to market rather earlier. . .

Bloody Friday farmers praised for bravery -Terri Russell:

 Hundreds of Southland farmers involved in the 1978 “Bloody Friday” protest were praised for their bravery at the weekend.

About 200 people gathered at the Invercargill Workingmen’s Club for the 35th anniversary of the protest, when farmers ran 1300 ewes down Dee St before slaughtering them on a Victoria Ave section.

Farmers were frustrated by industrial chaos across the meat industry, exacerbated by the worst drought much of the province had seen since 1956.

Protest leader Syd Slee said there were about 200 people at the reunion and half were involved in the protest. “We’re very proud looking back on the protest,” he said. . . .

New Leadership for Young Farmers:

Cole Groves has been voted the new Chairman for New Zealand Young Farmers. Mr Groves takes the helm after Paul Olsen who stepped down from his two-year term.

“It’s a fantastic group of people”, Mr Groves said. “It’s a big honour”.

Mr Groves previously served on the board as an elected member for two years, and he views his new appointment as an opportunity to give back to an organisation that has given him plenty.

“I’ve gotten so much out of my involvement with Young Farmers; from self-development to growing my business contacts”, commented Mr Groves. . .

Wools of NZ appoints new CEO:

Wools of New Zealand Limited is pleased to announce the appointment of Ross Townshend as its new Chief Executive Officer. The appointment follows the successful capitalisation of Wools of New Zealand completed in March of this year and is in line with the company’s strategy of putting the necessary people and processes in place to effectively run a 100% grower-owned sales and marketing company.

Mark Shadbolt, Chairman of Wools of New Zealand, said that after a rigorous selection process spanning several months the Board was delighted that Townshend, a Waikato sheep farmer and a shareholder of Wools of New Zealand, had accepted the role. . . .

Bioenergy association  statement – Woodscape:

Bioenergy Association is encouraged by the wood processing sector identification of the value of business opportunities from biofuels.

Recent research undertaken for the forestry and wood processing sector has identified that some emerging biofuel technologies can provide attractive additional revenue streams for existing businesses.

Speaking today, Mr Brian Cox, Executive Officer of the Bioenergy Association of New Zealand (BANZ) said that “BANZ welcomes the release of the Woodco research project (WoodScape) which evaluates a number of possible investment opportunities for the wood processing sector. The report shows that the emerging technologies for producing transport biofuels can be financially attractive as new enterprises. However these would be even more attractive as bolt-ons to existing business which already have the infrastructure and technical capabilities to extend into these new products.” . . .

Industry Happy to Talk About Sharing the Otago-Southland Paua Fishery:

The Otago Southland paua industry says it wants to make the most of the next few months to try to reach agreement with recreational and customary paua divers over shared access for areas of the coastline.

The Minister for Primary Industries, Nathan Guy, has announced that consultation on commercial access would continue for areas that previously had been closed because of a health risk. . .

Release of new fish stock assessment:

The Ministry for Primary Industries (MPI) has released the latest comprehensive scientific assessment of the status of New Zealand’s fisheries.

“The 2013 plenary report provides us with valuable, peer-reviewed scientific information on the status of our fish stocks and fisheries” says Dr Pamela Mace, Principal Advisor Fisheries Science for MPI.

“Many of the assessments indicate there is scope for increases in current catch limits. Hoki is the “star” performer. A few short years ago, there was concern that the western stock had become depleted. Science has driven strong and decisive management action and ensured the full restoration of hoki New Zealand-wide, even surpassing management benchmarks.” . . .

Rural round-up

Basting a chop won’t make a steak – Chalkie:

Poor old Red Meat. There she is, best frock on, hair done, smiling with her eyes and showing a bit of leg, only to find that tarty dairy cow getting all the attention.

Dairy co-op Fonterra teased investors for years before finally letting them on to third base late last year, with explosive results. Units in its Shareholders Fund quickly shot up to well over $7 after being issued at $5.50 a mere two months ago.

Meat co-op Silver Fern Farms, on the other hand, is still working the street corner.

After a reform of its capital structure in 2009, ordinary shares in Silver Fern became tradeable by any Tom, Dick and Harry on the unlisted market, but they have not been pursued with any passion. . .

NZ meats on Singapore menu -

New Zealand beef, lamb and, most likely venison, are on the menu at the Lone Star’s first overseas restaurant in a top waterfront precinct in Singapore.

The meat, branded Pure South, is being supplied by meat processor and exporter Alliance Group to the Fern & Kiwi restaurant, an offshoot of the Lone Star bar and restaurant chain.

A New Zealand-themed menu was worked out by consultant chef Mathew Metcalfe, who has cooked for the late Steve Jobs and leading Hollywood figures.

The meat range will come from farms across the country and processed at Alliance’s Group’s eight plants. . .

Carter laments stubborn attitudes – Jon Morgan:

Outgoing Minister for Primary Industries David Carter reels off a long list of what he calls “a good number” of achievements during his four years in office, but at the end of it he has to admit to a few lows as well.

The intransigent wool and meat industries have both defeated him, as they have ministers before him.

It obviously frustrates him. He puts it down to warring personalities in leading roles and the farmers’ apathy that lets this continue. . .

NZ wool floors show crowds - Tim Cronshaw:

The reaction of customers to Wools of New Zealand’s (WNZ) carpet wool at the world’s largest flooring show has reinforced to its leaders they are on the right track with capital raising a minimum of $5 million.

A share offer to commercialise WNZ into a sales and marketing company was extended to February 25 after the capital raising reached more than $4.1m last year from 500-plus strong wool farmers committing 12 million kilograms of annual wool production.

WNZ chairman Mark Shadbolt said growing interest by spinners and manufacturers in WNZ carpet ranges at the world’s largest flooring trade show, Domotex, this month had been encouraging. The trade show was attended by 40,000-plus visitors. . .

Safety shake-up call – Gerald Piddock:

Farmers are going to have to make health and safety a normal part of running their business if the number of on-farm accidents is to be cut.

Some farmers struggle to give health and safety the same amount of attention as they do to stock health or pasture management, industry-good Farmsafe national manager Grant Hadfield says.

“It’s considered a bit of an ogre. It shouldn’t be because it’s pretty easy to put systems in place.” . . .

Plaudits for irrigation policy - Gerald Piddock:

The Government’s decision to become a minority investor in irrigation schemes will ensure those projects get off the ground, say farmers with close ties to irrigation schemes in South Canterbury.

The Government announced last week that it would establish a company to act as a bridging investor for regional water infrastructure development.

The yet-to-be-named company would take minority stakes in water projects with a long-term goal of getting out and leaving the projects to the private sector. . .

Submitters discuss Tarras irrigation scheme – Jessica Maddock:

There was passionate opposition to an Otago Regional Council proposal to invest in a $39 million Tarras irrigation scheme at a hearing yesterday, with submitters saying it would be using ratepayer money to benefit only a few.

The council is considering buying $3.5m of redeemable preference shares. It would also pay up to $500,000 annually for five years, toward the fixed costs.

Tarras Water is planning the scheme to benefit 40 families, by taking up to 73.6 million cubic metres a year from the Clutha River to irrigate about 6000 hectares.

Nearly 70 people lodged a submission on the investment proposal, with the majority in opposition.

Eleven submitters spoke at a hearing in Cromwell yesterday, before four council members. Eight opposed the proposal and three supported it. The first day of the two-day hearing was in Dunedin on Thursday. . .

Rural round-up

We are the picture that a child draws of a farm – SticK:

A child draws a picture of a farm.

The sun is shining, the water is clean, the animals are happy.

A question could be, ‘What is the name of that picture?’

Our farms, done correctly, are that picture. There’s a heck of a lot of science to validate it as well.

But, like the picture, we’ve never given a name to what and how we do things.

Without a name, we’re undifferentiated from factory farming. . .

Chatham rock phosphate use would drastically reduce farm run-off, says CRP

The solution to run-off of phosphate into waterways lies in more use of direct application rock phosphate fertiliser, according to Chatham Rock Phosphate chief executive Chris Castle.

Mr Castle said a range of scientific studies over many years has shown direct application rock phosphate offers strong environmental benefits.

CRP has evaluated some of the studies undertaken which compare the use of rock phosphate and super phosphate on New Zealand and international farmland. . .

Harvard sells down Kaingaroa stake to Canadian Pension fund, NZ Super fund:

Harvard Management Company, which manages Harvard University’s US$30.7 billion endowment fund, has sold down its stake in the central North Island Kaingaroa forest.

Canada’s public sector pension fund picking up the bulk and the New Zealand Superannuation Fund taking a small bite.

Canada’s C$64.5 billion Public Sector Pension Investment Board will take a 30 percent stake in the 178,000 hectare forest, while the NZ Super Fund lifted its share 1.25 percentage points to 41.25 percent. Harvard Management will keep a 28.75 percent stake in the forestry company. . .

Rabobank’s latest Agribusiness Review for Australia and New Zealand.

Prepared by the bank’s Food & Agribusiness Research and Advisory division, the report provides monthly commentary on Australian and New Zealand agricultural conditions.

Key highlights:
• In New Zealand, a tornado triggered by a series of intense thunderstorms caused extensive damage to parts of Auckland on December 6. In Australia, according to the Bureau of Meteorology, the first ‘normal’ summer since 2005/06 is expected. Meanwhile, the Murray-Darling Basin Plan passed through parliament in November and is scheduled to begin transitional implementation in 2013.

• Much of the attention in global markets is focussed on the US fiscal cliff. Despite some positive employment data in the US, consumer and business confidence has been dragged lower by uncertainty surrounding the impact of the fiscal cliff. . .

Dairy herd up – an extra 370 bottles of milk each :

The number of dairy cattle in New Zealand continues to surge, and is up by more than a million since 2007, Statistics New Zealand said today. At 6.5 million, there are 1.2 million more dairy cattle in 2012 than in 2007.

“Dairy numbers have been booming in the last five years. The extra production equates to about 370 2-litre bottles of milk a year for everyone in the country,” agriculture statistics manager Hamish Hill said.

These provisional numbers are from the latest five-yearly agricultural production census. . .

Background for newly elected Fonterra Board member Blue Read:

The newly elected Fonterra board member, North Taranaki dairy farmer Blue Read, is a passionate champion for the cooperative business model.

As chairperson of the Cooperative Business New Zealand (CBNZ), Mr Read led New Zealand’s celebration of the UN International Year of Cooperatives. This included a Parliamentary launch, and crowning Ashburton the Cooperative Capital of New Zealand, along with national and international speaking engagements.

CBNZ executive director Ramsey Margolis said there had been a noticeable surge of interest from start-up businesses opting for the cooperative model over the last year. A number of existing businesses were also looking at converting to a cooperative. . .

Shareholders Vote In Favour Of Board Resolutions At Fonterra Annual Meeting

Fonterra shareholders have voted overwhelming in favour of a resolution to lock in protections around the size of the Fonterra Shareholders’ Fund and the integrity of the Farmgate Milk Price. . .

Fonterra Protection Voted In

Federated Farmers has welcomed the 89.51 percent vote in favour of constitutional safeguards around Trading Among Farmers (TAF).

“We can finally put the ghost of June’s TAF vote to bed where the concept was backed but not the constitutional safeguards,” says Willy Leferink, Federated Farmers Dairy Chairperson.

“A 89.51 percent vote is nearly as comprehensive as you can possibly get and Fonterra shareholders have shown good judgement. . .

Wools of New Zealand Extends Offer Deadline:

Wools of New Zealand has extended the deadline for its share offer to wool growers to 5:00 pm, 25 February 2013 to ensure growers have been given as much time as possible to consider and connect to the offer. The directors are committed and determined to start.

Mark Shadbolt, chairman of Wools of New Zealand, said the extension had been made to provide every opportunity for growers to take advantage of the offer, which to date had attracted positive support though remained short of the minimum level required of $5 million. The offer aims to raise $10 million from growers to pursue the Wools of New Zealand international marketing and sales strategies. . .

Rural round-up

Irrigation fund project given green light:

Primary Industries Minister David Carter says the go-ahead for the Wairarapa Water Use Project has the potential to irrigate an additional 30,000 to 50,000 hectares of land and boost the area’s GDP by $400 million.

Speaking at the launch of the Business Growth Agenda – Building Natural Resources progress report, Mr Carter welcomed today’s announcement of a $2.5 million pre-feasibility study to develop water storage and distribution in the Wairarapa.

The study is jointly funded by the Government’s Irrigation Acceleration Fund and the Greater Wellington Regional Council. . .

Meat and dairy products lead manufacturing rise:

Meat and dairy products dominated the rise in total manufacturing sales for the September 2012 quarter, Statistics New Zealand said today.

After adjusting for seasonal effects, the value of total manufacturing sales rose 1.6 percent ($370 million), led by the 9.3 percent ($612 million) increase in meat and dairy product manufacturing.

When price changes are removed, the volume of manufacturing sales rose 2.6 percent, also led by meat and dairy product manufacturing, up 13 percent.

“The volume increase in meat and dairy manufacturing is reflected in the rise of export volumes for dairy and meat products, with increases of 32 percent in dairy, and 15 percent in meat,” industry and labour statistics manager Blair

Wider use of crossbred wools urged – Sally Rae:

Crossbred wool has a future – but its uses need to be diversified instead of just concentrating on carpets.

That is the belief of Arrowtown man Tom Murdoch, a former manager of the Alliance Textiles mill in Oamaru (now Summit Wool Spinners).

Mr Murdoch, who spent 28 years in Oamaru, has had a long involvement with the wool industry.

Before moving to Oamaru, he ran a factory in Mauritius which produced knitted Shetland garments. After leaving North Otago, he got involved in a spinning mill in Bangkok and then helped set up a dye-house. . .

Apathy problems for Wools of New Zealand - Gerald Piddock:

Wools of New Zealand chairman Mark Shadbolt hopes farmer apathy won’t derail the company’s $5 million capital raise following low turnouts at meetings nationwide.

One of the final meetings of the wool company’s nationwide roadshow in Waimate last week drew only about 20 farmers.

Overcoming the apathy shown by farmers was their biggest challenge. The small audience at Waimate was typical of the turnout at the meetings, Mr Shadbolt said.

The meetings are to promote Wools of New Zealand’s prospectus, asking wool growers to invest at least $5 million to buy shares in the company and to commit wool for deals to high-end users such as airlines, hotels, luxury apartments and cruise ships. . .

Two appointments made to Dairy Women’s Network Board:

The Dairy Women’s Network has welcomed two new trustees to its Board, Maree Crowley-Hughes from Thornbury and Robyn Judd from Oamaru.

A hands-on farmer and experienced business woman, Maree and husband Peter Hughes own seven farms in Southland and Otago, which collectively milk 5000 cows producing more than two million kilograms of milk solids per year. . .

Cardno said. . .

Knives Out For Former Meatworks:

The former AFFCO meat killing and processing plant at Taumarunui in the Central North Island has been placed on the market for sale – at less than five per cent of what it was once worth.

The 10,000 square metre plant – sitting on 5.5 hectares of land – was once valued at $18million during its peak production period in the 1980s and 1990s. The plant was made redundant in 2009 and has largely remained idle ever since.

The huge site adjacent to State Highway 4 is now being marketed for sale by Bayleys Hamilton at an auction being held on December 13. Jim McKinlay of Bayleys Hamilton said the vendor’s price expectations was upwards of $450,000. . .

And ACC Minister Judith Collins in ACC’s new milking shed safety apron:

Rural round-up

Synlait Farms Takes Out South Island Farmer of the Year title for 2012

Canterbury-based dairy enterprise Synlait Farms clinched the Lincoln University Foundation’s South Island Farmer of the Year competition for 2012 last night (Thursday 8 November 2012) with an entry that judges hailed as a prime example of New Zealand’s leadership role in innovative and entrepreneurial agricultural practice.

Chief Judge Bob Simpson said that all four finalists demonstrated leadership, excellence and innovation.

“Any of the finalists could have won this award tonight,” Simpson said. “But in the finish it was Synlait’s blend of family-based traditional farming practices with the very best of modern corporate innovation and management systems that saw this multi-farm company stand out. Synlait’s approach to its people, its stock and its land can be held up as an example of what can be achieved when good leadership and good people go hand-in-hand.” . . .

Landcorp ready to run Crafar farms – Andrea Fox:

State farmer Landcorp says its Chinese client Shanghai Pengxin will settle the Crafar farms purchase with receivers on November 30 and it is scheduled to start managing the dairy farming estate the next day.

Landcorp chief executive Chris Kelly said that to the best of his knowledge this was the timetable that would mark the end of the tortuous three-year Crafar farms sales process.

Landcorp’s management of the 16 central North Island farms is a condition of Government consent to the controversial sale to the Chinese company, which has waited through a string of court challenges and consent processes to put its money on the table as receiver KordaMentha’s preferred bidder. . .

Wool growers asked for $10m – Gerald Piddock:

Wools of New Zealand is asking for $10 million from strong wool growers in a capital raising offer to expand its sales and marketing capabilities.

The raising would give strong wool growers the opportunity to invest in a grower-owned sales and marketing, company, chairman Mark Shadbolt said.

The company has made significant inroads into transforming Wools of New Zealand into a commercial entity, aimed at connecting customer to grower, he said. . .

Wine sector senses a whiff of recovery – Claire Rogers:

The wine industry is on the mend after a gruelling few years that prompted a string of closures and collapses, New Zealand Winegrowers says.

One recent high-profile casualty, Hawke’s Bay winery and vineyard Matariki Group was put into receivership in September owing creditors, including the Government, about $11.2 million. Receivers PricewaterhouseCoopers said the winery struck financial trouble after reduced harvests in 2011 and 2012 led to weak sales, and that was compounded by a lack of capital.

New Zealand Winegrowers chief executive Philip Gregan said the 2012 harvest was down 19 per cent on 2011, and that had dealt another blow to the industry, which had been struggling since 2008 with over-supply and weak demand from the global downturn. . .

Sea air tenderises spring lamb – Jon Morgan:

Logan Brown’s head chef Shaun Clouston takes a bite, chews thoughtfully, swallows and then licks his lips.

“By crikey, that’s beautiful,” he says, shaking his head slowly, wonder in his voice.

On the plate is a lamb rump, finely sliced, with kumara, crushed peas and roasted tomatoes. It’s a simple dish. “I want the lamb to be the hero,” Clouston says.

This is not any lamb. The meat is from a young spring lamb, only 4 months old when it was sent to slaughter, and from a farm on the coast south of Whanganui. . .

Kiwi to Lead International Tree Society

A Dunedin arborist became the first-ever Australasian president of the International Society of Arboriculture (ISA) last week.

Mark Roberts, an experienced arborist and academic director of horticulture training firm Thoughtplanters, is the second non-American elected to lead the 88-year-old society.

More than 20,000 arborists from 18 countries are members of ISA today. . .