Rural round-up

Reserve Bank watching farming sector after drought adds more stress -  Paul McBeth:

The Reserve Bank is “carefully monitoring” an already highly indebted agriculture sector after the recent drought in the North Island is likely to more strain on already stretched balance sheets.

The central bank has previously flagged concerns about the high level of indebtedness among farmers and its dairy concentration, and warns the recent drought could “expose financial vulnerabilities” across the sector, according to its six-monthly financial stability report.

“Parts of the agriculture sector in particular remain quite leveraged, and progress in reducing debt loads in recent years has been fairly limited,” the bank said. “For these reasons, the Reserve Bank will be carefully monitoring developments in these markets for signs that systemic risks are increasing.” . . .

$15 Million Investment In Lactoferrin Production For Infant Formula:

Synlait Milk is investing $15 million to upgrade its Special Milks Drier at Dunsandel as it looks to further tap into the $15 billion a year demand for infant formula in China.

The investment will enable Synlait Milk to become one of only two manufacturers in the world to produce lactoferrin as a spray dried powder, and will also allow the Company to manufacture dairy ingredients to a pharmaceutical standard.

Lactoferrin is a bioactive protein extracted from milk that provides significant antibacterial protection and other health benefits for people of all ages. It is in demand globally for health foods including infant formula and adult nutritional powders. With the new capability, Synlait Milk expects production to reach 18 metric tonnes within four years of commissioning in late 2013 to early 2014. . .

Benje Patterson finds that pasture-raised Kiwi cows are highly productive specimens living in a sweet spot:

When we talk about the dairy industry in New Zealand, we tend to focus on how farmers are going, however, we rarely stop to think about the plight of the cows they milk.

Over the past decade, these dairy cows have become increasingly indebted and the number of other cows they are forced to share paddocks with has also increased.

This article examines how dairy cows have responded to these conditions, and if their underlying financial positions compensate them for all of their hard work. . .

Telford open day:

About 70 southern dairy farmers will hear the first year results of an industry research project at the Telford Farm Training Institute open day on Wednesday.

Dairy NZ senior scientist Dr Dawn Dalley said three different approaches to farming cows over winter are being trialled to help farmers maximise their performance and minimise their environmental impacts.

She said one approach uses a largely traditional method while the second introduces several innovative measures, including calving the herd two weeks later so the cows return to more pasture cover, reducing the need for supplementary feed. . .

Meat Industry Excellence Gisborne & Te Kuiti meetings:

Following the enormous success of its Feilding meeting, Meat Industry Excellence (MIE) is holding additional meetings in Te Kuiti and Gisborne next week.

“As both Gisborne and Te Kuiti are major sheep producing areas, it is important that they be given the opportunity to be part of the meat industry’s change process,” says John McCarthy, MIE Executive Member.

“The MIE initiative is based around the premise that the industry model is broken.

“The ‘Boom and Bust’ model is not serving any of its participants well and needs serious attention if sheep and sheep farmers are to have a future. . .

Meat farm environmental impact steady – research:

New research suggests the environmental impact of sheep and beef farming in New Zealand has remained steady over the past 20 years despite a big increase in productivity.

AgResearch scientist Dr Alec MacKay has compared sheep and beef farm inputs – livestock and fertiliser – with the outputs of meat, greenhouse gases and nutrients.

Dr MacKay said he found huge eco-efficiency gains. . .

Vintage 2013 Keeps Marlborough Winemakers on Toes:

• Cooler Nights Ensure Aromatic Expression
• Pinot Noir Described as “Sensational”

Marlborough winemakers were kept on their toes, during what has been described as one of the most “intense” vintages ever experienced in the region. However no one is complaining about the quality of the fruit harvested in 2013.

After last year’s lower than average yields, Marlborough benefited from more ideal flowering conditions in December. While there has been some variability throughout the region, crop levels are described as being nearer to average this year – which will help to overcome the shortage of wine experienced in 2012.

The drought that impacted on most of the country, did not affect Marlborough. Instead timely rain events allowed the vines to stay healthy, without the fruit suffering disease pressure. . .

Rural round-up

NZ Super Fund sells forestry blocks to Chines, local investors - Paul McBeth:

The New Zealand Superannuation Fund, which today said the value of its portfolio topped $22 billion, has sold the bulk of 11 forestry blocks in the North Island to China National Forest Products Trading Corp for an undisclosed sum, with the remaining going to local investors.

The Chinese company, a subsidiary of state-owned China Forestry Group Corp, bought the majority of the portfolio, subject to Chinese regulatory approval, after getting the thumbs up from New Zealand’s Overseas Investment Office, the super fund said in a statement.

The Cullen Fund, so-called for its architect former Finance Minister Michael Cullen, was looking for a buyer for the blocks last year, when it valued the estates at some $91.1 million as at June 30. General manager investments Matt Whineray said the sale would let the fund focus on other domestic and international investment opportunities. . . 

Pivotal time for central farms - Mark Price:

Dozens of centre-pivot irrigation machines installed in the past couple of years are turning the dry plains of Central Otago into lush meadows. But, as Mark Price reports, this is just the beginning.

One farm on the flat near Tarras installed four irrigation pivots over the summer.

Another, on terraces above Tarras, installed eight or nine.

And, when the Tarras water scheme goes ahead there will be room for another 80 to 90 in that area alone.

In the world of irrigation, pivots are the state-of-the-art way of growing crops to feed dairy cows. . .

Maori land bursting with farm potential -Ben Dalton:

Primary industries generate over 70 per cent of New Zealand’s merchandise exports.

You’d be forgiven then for thinking that every last hectare of rural land is producing at its maximum. But you’d be wrong.

It has been known for some time that a significant proportion of Maori land is not delivering its potential.

A 2011 Ministry of Agriculture and Forestry report estimated that close to one million hectares were under-productive.

Now, a report commissioned by the Ministry of Primary Industries has allowed a glimpse of what’s at stake in bringing this land into full production – for Maori, the primary industries, and the country. . .

Quest for semi-rural playground – Alison Rudd:

The organisation which runs most of Southland’s kindergartens wants to buy a back yard for urban children who have no access to a semi-rural playground.

Kindergarten South wants a 1ha block close to Invercargill with trees, native bush and perhaps a stream. It will be a place where the 3 and 4-year-olds can ”get back to good old-fashioned play”, business development manager Sandra King said.

”It’s somewhere where they can climb trees, dig worms, puddle in water, draw pictures on the ground using sticks, learn to take a bit of a risk.”. . .

Delegat’s buys Australia’s Barossa Valley Estate assets out of receivership for A$24.7M - Paul McBeth:

Delegat’s Group has bought the assets of Australia’s Barossa Valley Estate out of receivership for A$24.7 million, just two months after snapping up the distressed vineyard and winery assets of Matariki Wines and Stony Bay Wines.

The Auckland-based winemaker, whose stable includes the Oyster Bay brand, will acquire a 5,000 tonne winery, a 41 hectare vineyard in the Barossa Valley, grape grower contracts and inventory and brands, it said in a statement. The deal is expected to settle in June, and will be funded through existing bank facilities. . .

Gunn Estate Ups the Ante With Reserve Range:

Hawke’s Bay’s popular Gunn Estate has just launched a range of Reserve wines, adding to the long history of the brand.

The 2012 Reserve range includes Sauvignon Blanc, Pinot Gris, Pinot Noir and Merlot/Cabernet varieties, made with grapes from specially selected vineyards in Hawke’s Bay and Marlborough.

Gunn Estate spokesman Denis Gunn says the new range represents the brand’s strong tradition.

“The Gunn Family has worked the land in Hawke’s Bay since 1920 and these wines are about keeping the passion and determination of three generations alive and well,” Mr Gunn says.

Rural round-up

Forestry helps economy grow at fastest pace in three years – Paul McBeth:

The New Zealand economy grew at the fastest quarterly pace in three years in the tail end of last year as demand for forestry exports underpinned gains in the primary sector. The kiwi dollar climbed on the figures.

Gross domestic product grew 1.5 percent to $36.81 billion in the three months ended December 31, from a 0.2 percent pace in the September period, according to Statistics New Zealand.

That is almost twice the 0.8 percent pace of expansion predicted by the Reserve Bank in its latest forecasts published last week and the fastest pace since December 2009. . .

Dairy price rise not the breaking dawn:

Federated Farmers is warning against overstating the 14.8 percent rise in the latest GlobalDairyTrade online auction, saying the increase is driven solely by supply and demand.

“New Zealand’s drought needs to be taken with the one that the United States suffered and unexceptional production out of Europe,” says Willy Leferink, Federated Farmers Dairy Chairperson.

“When you look at the global picture it is no wonder prices have spiked upwards. Westpac is forecasting New Zealand’s production may actually decline for the first time in years. The truth is that the supply of milk and global demand is finely balanced.

“This makes markets skitty and while any increase in international price is welcome, it is moot when you are yet to be fully paid-out for what you have produced. In the North Island many herds have either stopped production or are in the process of drying off early. . .

Local TBfree stalwart retires after three decades:

Well-known Helensville farmer John Glasson will retire from the TBfree Auckland Committee this month after 30 years at the forefront of the region’s mission to control bovine tuberculosis (TB).

Mr Glasson played an important role in reducing possum numbers and cattle and deer herd TB testing requirements in the South Kaipara Head area. “I recall my first experience with bovine TB in 1953 when 48 out of my father’s 100 cattle tested positive to the disease,” said Mr Glasson. These kinds of figures are unheard of today in the Auckland region.

His father’s encounter with the disease, and the experiences of others, prompted Mr Glasson to become involved with the TB control programme as a member of the Regional Animal Health Committee in the early 1980s. He recalls large numbers of possums that were passing the disease to farmed cattle and deer in the region. . .

East Coast still dry – 11mm not enough Fed head says – Kristen Paterson:

The huge low that spread across New Zealand days ago brought rain and relief to most areas of the country but the East Coast is still dry after a minimal fall.

The region is in the grips of what is a 70-year serious drought event, Federated Farmers President Bruce Wills told BusinessDesk.

“There’s a long way to go yet. All the rain did was give us some hope and a bit of a reprieve,” he says. But even after the rain it’s going to take two to three weeks to grow grass on the dry, parched paddocks. . .

Kiwifruit helps maintain muscles at optimum levels -

Researchers at the University of Otago, Christchurch, have found a daily vitamin C intake equivalent to eating two kiwifruit a day is required to ensure muscles maintain optimal levels.

Professor Margreet Vissers and her team at the Centre for Free Radical Research gave 54 males aged 18-35 either half a kiwifruit or two kiwifruit a day over a six-week period.

They then measured the vitamin C content in muscle and elsewhere in the body. . .

Lincoln University experts on tourism and water:

Potential water shortages and water stress will present a significant threat to the future growth and development of the tourism industry in the Asia Pacific region states a white paper on Tourism and Water released today in Singapore.

The international white paper was prepared by a leading research consortium supported by the EarthCheck Research Institute and EcoLab international a global leader in water, hygiene and energy technologies.

Susanne Becken, Adjunct Professor at Lincoln University and Professor of Sustainable Tourism at Griffith University, together with Dr Raj Rajan, Vice-President of Global Sustainability for Ecolab, presented the findings of the white paper at the Singapore International Water Festival.  . .

World Wine Trade Group conclude Treaty Protocol on wine labelling:

Trade Minister Tim Groser has welcomed the new Treaty Protocol on Wine Labelling, agreed today by members of the World Wine Trade Group (WWTG).

In 2007, the WWTG negotiated a Treaty on Wine Labelling which set new standards in the field. The Protocol takes this further by requiring participant countries to allow the importation and sale of wine from other signatories, provided it meets minimum standards for labelling (relating to alcohol tolerance, variety, vintage and wine region), and the exporting country’s laws and regulations.

The key benefits of the Protocol for New Zealand producers are that, once in force, it should provide enhanced access to overseas markets, enhanced predictability about regulation in key markets; and will set a useful benchmark for WWTG observer countries and other non-members. . .

Waikato Times letter of the month: runner up – Quote Unquote:

Another drought-related letter, this time blaming gay marriage rather than PKE, as the winner did. From yesterday’s issue, 21 March:

God and the drought

I have a thought about the drought in this country, which affects our country at its grass roots.

Perhaps a contributing factor is the new marriage law proposed in Parliament. . .

Rural round-up

Fonterra Announces Plan To Support And Grow Milk Supply:

Fonterra announced today a five-point plan to give farmer shareholders more flexibility in managing their farm businesses in order to support and grow milk production to support the Co-operative’s growth strategy.

The plan includes:
1. A bonus issue of one additional share or unit for every 40 held on 12 April 2013.
2. A further Supply Offer enabling Fonterra shareholders to sell the economic rights of some of their shares into the Fonterra Shareholders’ Fund[1].
3. A Dividend Reinvestment plan enabling shareholders and unit holders to elect to receive dividends in the form of shares or units.
4. Flexible contracts to give new and growing farmers more time and options to fully back their milk production with Fonterra shares.
5. New opportunities for winter milk supply contracts in the upper North Island to fuel Fonterra’s new UHT plant at Waitoa. . .

Fonterra To Develop UHT Plant At Waitoa:

Fonterra today announced it will be investing more than $100 million in a new UHT milk processing plant at its Waitoa site in the Waikato.

Fonterra Chief Executive Officer Theo Spierings said the new plant would enable the co-operative to meet growing demand for UHT products in Asia.

“The new plant will enable us to increase our UHT production by 100 per cent over the next few years. The plant will include five new UHT lines that will produce a range of products including UHT white milk and UHT cream for the foodservice sector. . .

Federated Farmers awaits Commerce Commission examination of swaps:

Federated Farmers has asked the Commerce Commission to look into the selling of debt finance instruments known as ‘swaps’. This formal request was made last November.

“It is fair to say we have received a number of inquiries from members and even non-members regarding swaps,” says Bruce Wills, Federated Farmers President.

“As most of these instruments were sold to farmers between 2007 and 2009, the impact of the global financial crisis upon interest rates saw concerns really only arise after 2009. . .

Drought makes high New Zealand dollar unjustifiable:

With widespread dry conditions and the first adverse event declaration in Northland related to drought, Federated Farmers believes there is no justification for the high New Zealand dollar.

“It seems dairy production is not just falling but in some key areas is starting to crash,” says Bruce Wills, Federated Farmers President.

“DairyNZ confirms Northland’s February milk production is some 20 percent down year to date while in the Waikato, it is about 15 percent down. Speaking to Kevin Robinson, the vice-chair of Federated Farmers Dairy, milk production at his farm is down 15-20 percent and is falling daily. . .

PGG Wrightson lifts 1H profit by 55% onr etail, ag services, pays 2.2 cent dividend:

PGG Wrightson, the rural services company controlled by Singapore-based Agria, listed first-half profit by 55 percent on earning s growth from retail and Ag services, allowing it to declare a 2.2 cents a share interim dividend.

Profit rose to $4.8 million in the six months ended Dec. 31, from $3.1 million a year earlier, the company said in a statement. Revenue from continuing operations fell to $589 million from $694 million.

Wrightson sold its finance unit to Heartland New Zealand in August 2011 and booked a loss of $3.37 million in the first half of the 2012 that wasn’t repeated in the latest period. Revenue from discontinued operations fell to $1.5 million in the latest half from $13.6 million a year earlier. . .

A2 1H profit dented by UK JV, affirms FY earnings target of $11.2M -  Paul McBeth:

Feb. 27 (BusinessDesk) – A2 Corp, which markets milk products with a protein variant claimed to have health benefits, reported an 82 percent slide in first-half profit as the cost of setting up its UK joint venture eroded the bottom line. The shares gained 3.9 percent as it affirmed its annual earnings forecast.

Net profit dropped to $243,000, or 0.09 cents per share, in the six months ended Dec. 31 from $3.4 million, or 0.53 cents, a year earlier, the Sydney-based company said in a statement. That came from a $1.5 million loss on establishing its UK joint venture with Robert Wiseman Dairies, which only started selling product in October last year. . .

Primary Wool Cooperative announces dividend payment:

Primary Wool Cooperative announces that on February 19, 2013, the Directors approved the payment of a 10% dividend to members. This comes on top of the annual 3 cents per kilogram rebate and last year’s 5% dividend, meaning that over the past 3 years, rebates and dividends have totalled an impressive $1.1M. These rebates and dividends, along with significant funding of industry-good activities such as the Campaign for Wool, demonstrate some of the ways Primary Wool Cooperative is delivering real benefit to the industry.

This is more good news for Primary Wool Cooperative, with the Just ShornTM brand being successfully rolled out into over 480 carpet retailers across North America and Canada on February the 18th 2013. . .

Farmers say ‘yes’ to rural stores merger:

Farmer Shareholders in the rural supply co-ops Farmlands and CRT have agreed to merge the two Societies with a majority of Farmlands and CRT Shareholders voting in favour of merger in today’s second special vote.

It means an immediate bonus for Shareholders in both co-ops. A bonus share issue of $32 million shares is being made to shareholders to distribute the retained earnings and unallocated reserves of the two co-operatives prior to merging.

And the two companies will distribute more than $8 million in an interim bonus rebate to Shareholders. This relates to their trading with the two co-operatives over the period 1 July– 31 December 2012. The rebate will be paid in a 60/40 share/cash split. . .

MPI Tech Transfer Survey Supports Red Meat PGP:

The findings of a Ministry for Primary Industries survey of technology transfer to farmers is more evidence of why farmers should want the red meat primary growth partnership programme to go ahead, says Beef + Lamb New Zealand chairman Mike Petersen.

The MPI survey says technology transfer has enabled farmers and growers to become world leaders in primary production during three decades of significant structural change. But the sector could now do with a boost because there are too few professionals and they need to be better linked to provide a more integrated approach to sharing new knowledge and information.

“This initiative runs right through our PGP programme that is bringing together the major meat companies, two banks and an accounting firm in an unprecedented collaboration. . .

Rural round-up

Fonterra plays down reports of Chinese officials destroying NZ milk powder – Paul McBeth:

Fonterra Cooperative Group, the world’s biggest dairy exporter, is playing down reports that China’s quarantine administration destroyed three different New Zealand brands of milk powder as being nothing out of the ordinary and part of a regular review.

No Fonterra product was involved.

The kiwi dollar shed half a US cent amid headlines the Chinese agency destroyed the New Zealand powder, just weeks after a global scare about traces of the DCD nitrate inhibiter being present in locally produced milk. Units in the Fonterra Shareholders Fund were unchanged at $7.13 today. . .

Agriculture course boosts school - David Bruce:

Waitaki Boys’ High School is returning to its roots with a major investment to boost its agricultural courses.

Rector Paul Jackson sees it as one of the keys to increasing the school roll.

”I want Waitaki Boys’ to again be a school of farming excellence,” he said.

The school last week began the first stage with an investment of about $60,000, virtually all raised through donations and in-kind contributions, to irrigate its farm – about 16ha of paddocks north and south of the school. . .

Green light for Wools of New Zealand as it reaches first threshold:

Wools of New Zealand announced today that it has achieved the minimum threshold of $5 million necessary to proceed with establishing a 100% strong wool grower-owned sales and marketing company.

Achieved one week ahead of the 25 February offer close, the company is now positioned to pursue its commercial, market pull strategy, putting Wools of New Zealand’s brands and market connections to work and further developing its technical and marketing capability for the benefit of its grower shareholders.

This milestone has been reached through the continued support of growers who recognise the need to invest beyond the farm gate. This includes investors in Wools of New Zealand who have converted some of their loans to the Wools of New Zealand Trust into shares in Wools of New Zealand, demonstrating their commitment and confidence in the proposition and their desire to see the company thrive under grower ownership. . .

Federated Farmers asks meat companies how parties can work together – Allan Barber:

Last week Jeanette Maxwell, Federated Farmers’ Meat & Fibre chair, sent a letter to the chairmen and CEOs of the five major sheep meat processors and exporters. The letter asked them to suggest how the parties could work together for the good of the industry.

So far one company, AFFCO, has replied formally, but no doubt others will respond in due course. Maxwell sees this as an age of ‘collaborative governance’ in which farmers and meat companies must go forward together instead of fighting each other. She says there’s nothing to be gained by rattling the cage to no purpose and the intention of the letter is to start the conversation between the parties.

The last twelve months have been seriously stressful, if not disastrous for the meat industry. A year ago the companies were paying an unsustainable $8 a kilo slaughter weight or around $150 per lamb, but the market price and exchange rate combined had already sent this into serious loss making territory for the processors. Just how serious was confirmed by the published annual results from Alliance and Silver Fern Farms, although Blue Sky Meats’ result for the period ended 31 March gave a good indication. . .

Think before letting dogs breed – Anna Holland:

EIGHTEEN YEARS ago I retired from shepherding; I had been hitting my head against a brick wall for too many years. It had been a frustrating occupation met with much resistance. Slowly it is changing and now there are some very capable women being given the opportunity to work the land.

Since then I have tried my hand at other things. My passion for working dogs never waned and I still bred the odd litter of pups, and in the last few years I trained a number of young dogs to the point of being ready to join someone’s team. . .

Effluent results improving, but farmers could do better – NRC

Northland’s dairy farmers have received qualified praise for their increased compliance with farm dairy effluent resource standards but there’s still plenty of room for improvement, those doing the monitoring say.

The latest Northland Regional Council monitoring figures for the 2012/13 milking season show almost 80 percent of the region’s 978 dairy farms were either fully compliant with their resource consent conditions and or rules, or had only minor non-compliance.

Operations Director Tony Phipps says particularly pleasing for the council was a thirty percent drop in significant non-compliance, which fell to nearly 200 farms compared with close to 300 farms reported twelve months earlier.

He says in recent years many of the region’s farmers have invested heavily in improvements to their effluent disposal systems and it’s pleasing to see that outlay starting to pay off. . . .

Down to the wire at Waikato/Bay of Plenty regional final -

Tim van de Molen is the second Grand Finalist in 2013 after he won the Waikato/Bay of Plenty Regional Final for the ANZ Young Farmer Contest on Saturday, February 16 in Hamilton at St Paul’s Collegiate School.

It was a very tight race throughout the competition, the final result came down to just one question.
Van de Molen had his work cut out for him narrowly taking the win by just two points ahead of competitor Dwayne Cowin. Josh Cozens and James Bryan were not far behind, placing third and fourth respectively. . .

Comvita flags 15% fall in FY profit on honey costs, supply shortages:

Comvita, which produces health products from manuka honey and olive leaves, expects a 15 percent fall in annual profit because of expensive honey, supply shortages and tough trading conditions in the UK and Australia.

The Te Puke-based company expects net profit of $7 million in the year ending March 31, down from $8.2 million a year earlier which it had been expecting to beat, Comvita said in a statement.

Sales are forecast to rise 4 percent to about $100 million. The profit warning comes after increases in wholesale honey prices of up to 50 percent, and weak consumer confidence in Australia and the UK, which made it hard to pass on rising costs. . .

Rural round-up

Fonterra scotches speculation of US$450m Indian acquisition – Paul McBeth:

Fonterra Cooperative Group, the world’s biggest dairy exporter, has dismissed speculation the company is among potential bidders for India’s Tirumala Milk Products.

The New Zealand cooperative scotched a Times of India report naming it with French food conglomerate Danone as vying for a controlling stake in Hyderabad-based Tirumala, with a spokesman for the dairy exporter calling it “rubbish”. The US$450 million enterprise value figure reported would be material for Fonterra and would need to be disclosed, he said. . .

Water allocation and limit setting in a changing climate – Waiology:

Last week, the Land and Water Forum released its third and final report on water management in New Zealand. It is a substantial piece of collaborative work with 67 recommendations. Number 29 is that allocation limits be set by taking into account “any flow and water level fluctuations caused by seasonal or other climate variations”. While this primarily refers to natural variability, such as the Interdecadal Pacific Oscillation, it’s also important to consider climate change. And along the same lines, last year’s National Policy Statement for Freshwater Management stated the need to account for the “foreseeable impacts” of climate change.

This is an important issue, as climate change is expected to bring about a raft of changes to New Zealand’s freshwaters (more details on that soon). Among these changes are reductions or increases in the amount of water available for use. Also importantly, climate change makes assessments of future water resources less certain. . .

Fonterra shareholder fund pricing uncertainty leaves Morningstar cold – Paul McBeth:

Investors should steer of the Fonterra Shareholders’ Fund, which seeks to raise up to $525 million to reduce the dairy cooperative’s redemption risk, until the units start trading, according to Morningstar Research.

However, the units have too many pricing uncertainties in the bookbuild phase.

The research firm gives a ‘do not subscribe’ recommendation for the fund’s initial public offering, saying Fonterra Cooperative Group lacks pricing power over its dairy commodities, generates low returns compared to its multinational peers, and investors won’t know the price they are paying until after the bookbuild process is completed on Nov. 27. . .

A2 in talks with NZX about shifting to main board – Paul McBeth:

A2 Corp, which markets milk products with a protein variant claimed to have health benefits, is in talks with the New Zealand Stock Exchange about shifting its listing on the main board.

The company, currently listed on the alternative market, qualifies for listing on the NZX main board, and managing director Geoffrey Babidge says that is a more recognised market and can provide better transparency and investor protection, according to a presentation at today’s annual meeting.

“A move to the NZX main board may provide greater liquidity and increase access to capital,” Babidge said. “To this end, the company has commenced discussions with NZX regarding a move to the NZX main board.” . . .

Kiwifruit vines credited as carbon sinks:

Three years of research by a Bay of Plenty company has found that kiwifruit orchards store a significant quantity of organic carbon in the soil.

PlusGroup Research received funding from the former Ministry of Agriculture’s sustainability farming fund to do the research, which investigated soil samples from more than 120 kiwifruit orchards across different growing regions. . .

Beef + Lamb NZ director elections:

Nominations are being called for two farmer-elected positions on the Board of Beef + Lamb New Zealand.

The positions are for the Western North Island and Central South Island electorates.

Nominations must be submitted on the official form obtained from the Returning Officer, Warwick Lampp, free phone 0508 666 003. The nominations need to be received by 5 pm on 20 December 2012. . .

Better Look Over Your Shoulder – Fish & Game Warning To Poachers:

The latest camouflaged ‘poacher cams’ are proving their worth in the Rotorua lakes district – giving trout poachers even more reason to look over their shoulder.

That’s according to Eastern Region Fish & Game, which has released information on the number of offenders caught over the last three months.

Fish & Game Officer Anthony van Dorp says that over the past three months (ending November) they’ve dealt with 30 people for a variety of offences ranging from fishing without a licence and fishing closed waters – to serious poaching offences. . .

Celebrating 150 Years in the Valley of Gold & Cardrona Vintage Fair

The historical and picturesque township of Cardrona in the breathtaking Cardrona Valley turns 150 years Gold this year. To celebrate, the iconic Cardrona Hotel and the greater community are opening their doors, hearts and rabbit cookbook’s for a birthday bash guaranteed to delight all ages.

Saturday 8th December – 150 Years of Gold celebration

From the excitement of highly trained heading dogs competing in the Dog Trials to trying your hand at gold panning, the 150 Years of Gold celebrations are local-jam-packed with fun and fascinating events for everyone. . .

Rural round-up

The return of milk scarcity – Rabobank on dairy:

The global dairy market appears to be heading for a period of renewed supply scarcity in the coming 12 months, according to Rabobank.

Rabobank senior dairy analyst Hayley Moynihan says the impetus for tightening emanates largely from the supply side, where low milk prices, extreme feed costs and pockets of unfavourable weather are expected to slow growth in milk production in export regions.

“We fear that much of the market has been lulled into a false sense of security by the phenomenal growth seasons we saw late in 2011 and early 2012, with the next 12 months to provide a rude awakening,” Ms Moynihan says. . . .

Dairy farming New Zealand can be proud of – Milking on the Moove:

I’ve changed my header to the Milking On The Moove logo. My goal is to create a dairy farming system that New Zealanders can be proud of.

I’m passionate about dairy farming and agriculture. While I have blogged about aspects that I think should change, I’m a fan of the industry. I’m concerned that Fonterra seems to get so much flack from the New Zealand public, which includes individual farmers.

I can understand left leaning environmentalists having a dim view of Fonterra, as that would be in keeping with their attitude towards corporates and big business in general. I’m concerned by the attitudes of middle New Zealand. It seems that many view Fonterra as a money hungry corporate giant that is screwing New Zealand consumers. I’m prepared to be a little understanding of a middle of the road New Zealander, who knows nothing about farming being influenced by the media. . .

Organics – Milking on the Moove:

Research out of Stanford University has shown that organic produce has no greater nutritional value than non-organic produce.

That’s not news to me, but I don’t think people buy organic food because they feel it is has a higher nutritional value, but rather because it is not covered in sprays and pesticides.

Jacqueline Rowarth points out repeatedly that organics generally produce 20% less yield than conventional farming methods. These farmers need to receive the premium that organics provides in order to stay profitable. But as the world begins to meet the needs of a growing population, all the figures I’m seeing require more product being produced from less and with a lower environmental impact. I’m doubtful that organics can achieve this.. .

 

Tokyo launch for coat range - Sally Rae:

A range of coats using merino wool from Closeburn Station in the Maniototo has been launched in Tokyo to much media interest.

Suit makers Konaka Co Ltd launched a range of 15-micron New Zealand wool coats to rival cashmere, under the label Limited Wool Premium. . .

 

New tech can help farmers head off enforced regulation

Farmers have an opportunity to put themselves ahead of the game regarding fertiliser application and avoid tough regulations being imposed on them, the annual meeting of Ravensdown was told in New Plymouth on Monday night.

Ravensdown Chief Executive Rodney Green told 500 shareholders that the company had developed new tools to enable farmers to get the most value out of their fertiliser regime, while still dealing with concerns raised by the likes of the Environment Court’s recent decision in favour of the nitrogen limits set by the Horizons Regional Council.

“We stood with Federated Farmers, Horticulture NZ and Fonterra making many submissions on behalf of farmers that were ultimately not given sufficient weight by the Environment Court,” said Rodney Green. “One thing, however, that is not in dispute is the fact that reducing the environmental footprint of New Zealand farming is increasingly important. Sustainable practices are an important part of the story to tell overseas customers about our farming produce and can also help deliver better results for the farmer’s bottom line.” . . .

Ngai Tahu boosts earnings from commercial operations, eyes bigger dairy development -  Paul McBeth:

Ngai Tahu Holdings, which manages the South Island iwi’s commercial operations, boosted earnings across all of its units and is looking to ramp up its exposure in dairy.

Net profit climbed to $95.7 million in the 12 months ended June 30, from $15.9 million a year earlier, the iwi said in its annual report. Operating earnings, which strip out gains from asset sales and property values, climbed 48 percent to $55.1 million on sales of $209.36 million.

Ngai Tahu Holdings invested $39 million in property development, $19 million in investment property mainly to do with dairy, and $22 million in the Agrodome and Rainbow Springs tourism operations. . .

 

‘ve changed my header to the Milking On The Moove logo. My goal is to create a dairy farming system that New Zealanders can be proud of.

I’m passionate about dairy farming and agriculture. While I have blogged about aspects that I think should change, I’m a fan of the industry. I’m concerned that Fonterra seems to get so much flack from the New Zealand public, which includes individual farmers.

I can understand left leaning environmentalists having a dim view of Fonterra, as that would be in keeping with their attitude towards corporates and big business in general. I’m concerned by the attitudes of middle New Zealand. It seems that many view Fonterra as a money hungry corporate giant that is screwing New Zealand consumers. I’m prepared to be a little understanding of a middle of the road New Zealander, who knows nothing about farming being influenced by the media.

Rural round-up

Meat price outlook positive in spite of short term wobbles – Allan Barber:

The exchange rate and uncertainty in the Eurozone remain the biggest negatives for red meat exports in the short term, but the outlook is still positive heading into next year.

It’s very hard to pick what will happen in Europe which will inevitably have a large impact on lamb prices for the foreseeable future. Southern Europe and the UK are technically in recession and are unlikely to improve much, at least until the ECB manages to sort out how it will cope with the trials of Greece, Spain and others. . .

 

Elworthy-managed fund psends $2m on Gisborne land, emerges with 9,200ha of forestry - Paul McBeth:

Craigmore Forestry Fund, which is managed by Forbes Elworthy’s Craigmore Sustainables, paid $2 million for 511 hectares land it wants to convert into forestry, as it looks to build plantations down the east coast of the North Island.

The fund has built up 9,200 hectares of land running from the East Cape to Riversdale, where it plans to either manage existing forestry operations or plant trees on farming land, according to summary decisions from the Overseas Investment Office. . .

  A permeating puzzle – Offsetting Behaviour:

Canadian supporters of supply management note that they’re helping to protect Canadians from “permeate” milk. Or at least my Twitter friend from the Canadian Dairy Lobby keeps needling about use of permeate.

Permeate is a concentrated byproduct from cheese-making that, in diluted form, can be added into fluid milk. You can also get it through ultrafiltration: ultra-filter the milk, then add stuff back in varying proportions depending on the blend you want to achieve. It’s relatively high in lactose, so it could make milk less friendly for those with lactose intolerance, but it otherwise seems pretty innocuous. Most supermarket milk in New Zealand uses permeate; it’s been a bit controversial in Australia. . . 

Ravensdown first fertiliser company to break billion dollar milestone:

Ravensdown, the 100% farmer-owned co-operative, has become the first NZ fertiliser company to surpass a billion dollars in revenue. The co-operative also helped shield shareholders from world price volatility for imports such as urea for a large part of the reporting period.

Revenues for the year to 31st May 2012 were a record $1.07 billion, an increase of 15%. The co-operative plans to distribute $53.5 million to shareholders. This represents a total of $40.48 per tonne of fertiliser purchased which is made up of a rebate of $15.10 per tonne plus a bonus share issue of 17 shares per tonne (tax paid) valued at $25.38 per tonne. . .

 Synlait Milk Scoops Agri-Business Award:

Synlait Milk has scooped the Agri-Business Award in the Sensational Selwyn Awards, which recognise business excellence in the Selwyn District.

Over 500 people attended the biennial awards dinner held on 28 July at the Lincoln Events Centre. Finalists for the award included Coppersfolly Limited and Ellesmere Transport Company Limited.

Since operations began in 2008, Synlait has grown to become one of Selwyn’s largest companies, processing over 500 million litres of milk a year from around 150 Canterbury farms, and employing 128 staff. . .

 Māori partner with agbio leaders to drive growth through science:

The Federation of Māori Authorities says supporting the world’s top agricultural biotechnology conference being held in Rotorua in September is an opportunity to connect its members with the best minds in the business.

The Federation has come on board as a Platinum sponsor of ABIC (Agricultural Biotechnology International Conference) 2012, which will bring industry leaders, researchers and scientists, investors and policy makers from around the world to New Zealand.

ABIC 2012 is hosted by NZBIO, the New Zealand biotechnology industry association.

The Federation of Māori Authorities represents New Zealand businesses with a combined asset base valued at NZ$8 billion, much of which comes from interests in seafood, forestry, dairy, sheep and beef, horticulture and energy. . . 

Dairy Compliance Improved:

Hawke’s Bay Regional Council’s compliance monitoring of dairy farms shows a marked increase in the level of full compliance.

Full compliance is up to 80% across the region, with the majority of the 20% non-compliance being of a technical nature rather than having a direct adverse environmental effect. . .

 

 

 

 

 

Rural round-up

Southland dairy farmers face rates hike:

Southland Regional Council is proposing to increase the rates burden on dairy farmers in its draft long-term plan.

But there will be some easing of that next year, if the plan’s confirmed.

The council considered submissions on the draft plan, last week, with many commenting on the proposal to increase the Dairy Differential Rate to $767,000, almost double the current dairy rate of about $390,000.

The council says that’s to cover the cost of increased environmental monitoring and resource planning required in the next 18 to 24 months because of the growth in dairying in Southland.

Dairy farmers complained that good farmers would be unfairly hit with the cost of enforcing compliance on a few poor performers. . .

Dairy puzzle – Offsetting Behaviour:

Dairy products are cheaper in New Zealand than in Canada, where the dairy cartel keeps prices high.

But the Dairy Farmers of Canada VP Ron Versteeg points me to an interesting puzzle: FAO stats showing NZ consumption of some dairy products is lower than that in Canada.

Here’s an FAO table showing NZ and Canadian consumption. Or, at least, I’d expect that this has to be per capita consumption rather than production given that total NZ production is higher than total Canadian given relative herd sizes. . .

 Synlait narrows loss as soaring milk prices squeeze margin – Paul McBeth:

 

Synlait Milk, the processor that turned to a Chinese investor after failing to attract local equity capital, narrowed its annual loss last year, even though surging raw milk prices eroded its gross margin.

 

The Canterbury-based company made a net loss of $3.1 million in the 12 months ended July 31 last year, smaller than the loss of $11.7 million a year earlier, according to financial statements lodged with the Companies Office.

 

The milk processor lifted revenue 28% to $298.9 million, though its gross profit shrank 11% to $21.1 million in a year when international milk prices reached record highs. . .

Federated Farmers’ Anders Crofoot to chair AHB and NAIT Stakeholder Council:

Federated Farmers National Board member, Anders Crofoot, has been appointed to chair the Stakeholder Council that will oversee the merger process between the Animal Health Board (AHB) and the National Animal Identification & Tracing (NAIT) scheme.

“I am deeply humbled to chair what will be a significant development in New Zealand agriculture,” says Anders Crofoot, Federated Farmers Board spokesperson on national identification & tracing.

“The Stakeholder Council is made up of representatives from industry as well as local and central government. The council includes Beef + Lamb NZ, the Dairy Companies Association of New Zealand, DairyNZ, Deer Industry New Zealand, Meat Industry Association, New Zealand Deer Farmers Association, NZ Stock & Station Agents’ Association, Local Government New Zealand, Ministry for Primary Industries and of course, Federated Farmers. . .

Rustlers cost farmers thousands:

Farmers say they are losing thousands of dollars of stock a year at the hands of rustlers, and not enough is being done to stop them.

Warning: Video contains footage some viewers may find disturbing.

They want police to have a greater rural presence, but police say before that can happen farmers need to start reporting the crimes.

“Eleven of them were taken, and the twelfth one had its legs crossed and tied with silver duct tape, and fell on the ground – and that’s how we found that we had had them stolen,” says farm owner Beverly Duffy, describing the latest spate of killings her farm has been hit by. Three months ago the same farm lost a dozen sheep – more than $2,000 overnight. . . . 

New Zealand grass-fed beef on the menu for chefs in Japan and Korea:

Award winning Christchurch chef Darren Wright has been in Korea and Japan promoting New Zealand grass-fed beef to a lineup of influential chefs and media.

 Beef + Lamb New Zealand Market Manager Japan/Korea, John Hundleby says Chef Wright cooked a range of beef dishes at a number of events. His offerings included beef ravioli made from short-ribs, beef tortellini and tenderloin steaks.

 “Since Korean and Japanese people are far more familiar with the cooking qualities of grain-fed beef which is more common in the two markets, a highlight at these events is always the demonstration of how to cook a good grass-fed beef steak.” . . .