Rural round-up

Push for rural health alliance to tackle farmer depression:

A rural doctors representative wants a new health alliance to make a commitment to tackling rural depression.

The Rural Health Alliance Aotearoa New Zealand, which was formed last year, will hold its first AGM on Wednesday afternoon in the run up to the annual Rural General Practice Network conference in Rotorua this week. . .

Urgent decisions due for Sharemilkers and Sharemilker Employers:

Federated Farmers is warning Sharemilkers and Sharemilker employers that with drought now widespread, they need to urgently sit down and jointly plan the close of the 2012/13 season.

“Forget about how you handled the last drought because this one is significantly different,” says Tony Wilding, Federated Farmers Sharemilker Employers’ Section Vice-Chairperson.

“These are not normal drought conditions as there is little feed in the whole of the North Island to fall back upon. There are very few places where farmers can send stock to which has enough grass even in the South Island.

“Federated Farmers urges all sharemilkers and those who engage sharemilkers to sit down and plan for the close of the season. Both sides of the business relationship need to figure out how they can best manage today’s situation to prevent further damage or compromise next season’s production. . .

Sheep and beef farmers support PGP collaboration programe:

New Zealand sheep and beef farmers have agreed to co-fund the ‘Collaboration for Sustainable Growth Red Meat Primary Growth Partnership’, following a farmer vote held at the Beef + Lamb New Zealand (B+LNZ) Annual Meeting in Wanaka last week.

Electionz.com, which managed the vote on behalf of B+LNZ, has advised that the resolution was passed with 77% support from 2746 participating votes. The weighted voting percentage represents 21.3% of the potential total weighted vote based on sheep (31.2m head), beef (3.74 m head), and dairy (6.46 m head) livestock numbers at 30 June 2012.

B+LNZ Chairman, Mike Petersen said that following the funding commitment from the Government and industry partners, the positive farmer vote paves the way for the programme to proceed. . .

Meat sector takes huge step forward in supporting PGP

The strong farmer support for Beef+Lamb New Zealand’s co-funding of the Collaboration for Sustainable Growth Primary Growth Partnership (PGP) programme shows the entire red meat industry is on track toward a brighter future, says Jeanette Maxwell, Federated Farmers Meat & Fibre Chairperson.

“This PGP will provide a huge amount of investment in ways farmers can directly increase their productivity and returns through their own efforts, so it is very heartening that Beef + Lamb New Zealand’s co-funding resolution was supported,” Mrs Maxwell says.

“Federated Farmers saw the potential in this partnership and more than three quarters of the sheep and beef farmers who voted agreed.

“While the red meat sector is having a tough season with drought now adding to the stress of lower prices, I am confident this scheme could mean we do not face such dire seasons in the future. . .

Drought bites – RivettingKateTaylor:

It’s getting worse.

I have been holding off writing about the drought, but now I want to tempt the rain. It’s like watering the garden and then it rains. Only this time it’s not. And it’s not. And it’s not.

We are so lucky we are only on a lifestyle block. The pet sheep and calfie are not impressed by the dry, but they will survive, as will we with off-”farm” income. . .

Minister meets Brazilian counterpart – opportunities in the ‘giant of Latin America‘:

Primary Industries Minister Nathan Guy was impressed by the size and scale of Brazilian agriculture when he met with Brazilian Agriculture Minister Mendes Ribeiro Filho in Brasilia today, at the end of a nine-day trade mission to Latin America led by Prime Minister John Key.

“In meeting with my counterpart I outlined the expertise, innovation, and efficiency which characterises New Zealand’s agricultural sector,” says Mr Guy.

“With New Zealand’s world-leading expertise, and Brazil’s land and location, there are plenty of opportunities for our countries to collaborate and work more closely together.

“During the meeting I stressed that New Zealand and Brazil should try to work in partnership as agricultural exporters to reduce trade barriers and ease trade restrictions.” . . .

Fonterra launches Mainland cheese in Malaysia:

Fonterra Brands Malaysia’s launch of Mainland Cheese in Malaysia signals the strengthening trade links between New Zealand and South-East Asia, Minister for Economic Development Steven Joyce says.

Minister Joyce today launched the Mainland Cheese brand at a New Zealand Gala event in Kuala Lumpur.

“Over the last five years, Fonterra Brands Malaysia’s business in South East Asia has doubled, which shows the increasing demand for New Zealand dairy products, and the growing opportunities for New Zealand export companies in the region,” Mr Joyce says.

The launch coincides with New Zealand Week in Malaysia, a series of business and education events to lift the profile of New Zealand as an education destination, and to promote business and investment opportunities. . .

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

Joyce hints at more partnerships – Tim Fulton:

Science and Economic Development Steven Joyce has hinted at more partnerships between Lincoln and the private sector, calling his unspecified plan a crucial part of the tech-transfer story.

Joyce was at the university’s dairy research farm launching the second stage of the Pastoral 21 programme, highlighting the importance of places like Lincoln for information-sharing.

There had been a lot of talk over the years about the Lincoln campus developing and becoming a true agri-technology hub, he said.

Now, despite the cost of repairing earthquake damage, the university had a unique opportunity to take that role. . .

To feed the world we need to fix the politics not the environment – Milking on the Moove:

They say there will be 9 Billion people in 2050. The popular question is “how can we feed that number of people?”

There is literally not a day go by where I’m not confronted with some sort of report, program or video about the challenge of feeding the world.

The common theme is we need to increase agricultural productivity to meet this massive demand. The view that we have limited resources that will make food production more expensive or difficult in the future is widely popular.

Some people who belong to the environmental movements, like to use the growing demand to push their causes, one such cause is to promote the vegan lifestyle as less cattle will reduce CO2 emissions. 

Businesses also jump on the band wagon, because it allows them to get subsidies that keep their business profitable when it otherwise would not be, solar panel manufacturers spring to mind. . .

Eco-n suspension blow for Ravensdown – Tim Fulton:

Ravensdown is usually on full show at Lincoln farming events but last Thursday it was fronting up in a different way, explaining its position after suspending sales of its nitrogen inhibitor. Tim Fulton reports. 

ECO-N was introduced to the market on Lincoln University’s dairy research farm in February 2004, Ravensdown’s Richard Christie reminded farmers at the same spot on Thursday. . .

Irrigation company establishment board announced:

Minister for Primary Industries Nathan Guy has announced that experienced director Alison Paterson will oversee the establishment of a new Crown company to invest in irrigation.

The new company, which is to be established by 1 July, will act as a bridging investor for regional water infrastructure development, with $80 million to be set aside in Budget 2013.

“I’m pleased to have people of high quality and balance to work on what is a critical area of New Zealand’s growth,” says Mr Guy.

“Well-designed storage and irrigation infrastructure has the potential to deliver a major boost to our primary industries and support new jobs, which will have a flow-on effect for all New Zealanders. If current proposals are advanced there could be another 420,000 hectares of irrigated land available over time. . . .

Surprise at lack of interest in carbon credit trading:

Associate Professor Euan Mason of Canterbury University is surprised more hill country farmers are not showing an interest in carbon credit trading as they stand to boost their incomes while at the same time helping the environment.

Professor Mason said he is perplexed that some farmers have a negative attitude towards carbon trading and the climate change issue. . .