Rural round-up

Government approves kiwifruit Psa plan:

A national management plan for dealing with the kiwifruit Psa virus has been formally approved by the Government, Primary Industries Minister Nathan Guy has announced today.

“This plan means that the primary responsibility for managing Psa is now moving to the industry themselves as they are best placed to co-ordinate and lead the response.

“As part of this, the Government has approved a levy rate on exported kiwifruit equating to one cent per tray for green fruit and two cents a tray for gold fruit. This will help cover disease management, monitoring, plant material movement and dealing with unmanaged and abandoned orchards.

“The levy has been voted on by growers and will have a shortfall until yields return to pre-Psa levels. Therefore Cabinet has agreed that $3.5 million remaining from the initial Government funding of $25 million will be passed to Kiwifruit Vine Health (KVH) to implement the plan. . .

Enrolments to close for leading farm business management programme:

Applications are to close at the end of this month for this year’s Rabobank’s Executive Development Program, Australasia’s leading agricultural business management course for leading primary producers.

Now in its fourteenth year, the prestigious Rabobank Executive Development Program gives leading New Zealand and Australian farmers, from a range of agricultural sectors, the opportunity to develop and enhance their business management skills.

Rabobank CEO New Zealand Ben Russell said the Executive Development Program is designed to assist farmers improve primary producers’ ability to manage the challenges of agriculture and plan for the growth of their farming businesses. . .

Farm Environment Ambassadors Study Marketing of New Zealand Produce in Asia:

An industry-backed trip to Asia has given Otago farmers Blair and Jane Smith a deeper understanding of the challenges facing marketers of New Zealand meat and dairy products.

National winners of the 2012 Ballance Farm Environment Awards, the Smiths recently returned from South Korea, China, Taiwan and Singapore, where they visited a number of key markets for New Zealand sheep, beef and dairy products.

The purpose of the 16-day trip was to learn more about offshore markets, exchange views on topics of crucial interest to New Zealand farmers and to showcase New Zealand’s stance on agricultural sustainability. . .

Announcement of Intention to IPO:

Synlait Milk Limited (Synlait Milk) advises that it is considering an initial public offering (IPO) of shares and to list on the NZX Main Board.

Synlait Milk is currently 49% owned by Synlait Limited and 51% owned by Bright Dairy & Food Co., Ltd (Bright Dairy).

Prior to any shares being allotted under ny IPO, Synlait Limited has advised Synlait Milk that it intends to distribute to its shareholders, on a pro-rata basis, the shares it holds in Synlait Milk. . .

PGG Wrightson annual earnings to fall by up to 27% on drought, lower livestock values:

PGG Wrightson, the rural services company which fell out of the NZX 50 Index this year, expects annual earnings to fall by as much as 27 percent as dry conditions on both sides of the Tasman and lower livestock values erode prices.

The Christchurch-based company expects earnings before interest, tax, depreciation and amortisation of between $40 million and $48 million in the 12 months ended June 30, down from $55 million in 2012, it said in a statement. The decline was put down to the dry climate in Australia and New Zealand, lower livestock value and falling earnings from its Agri-feeds unit after disposing of its 4Seasons Feeds joint venture. . .

Irrigation Event Needs More ‘Owner Operator’ Irrigator Support:

The irrigation industry is rapidly moving away from a ‘No 8 wire mentality’ as next week’s Great Irrigation Challenge in Ashburton will demonstrate, says IrrigationNZ – but more ‘owner operator’ irrigators need to rise to the challenge.

On May 23 and 24 at Ashburton Racecourse, IrrigationNZ, with the support of principal sponsor Aqualinc, will host a series of hands-on workshops aimed at up-skilling and professionalising both irrigators and their support industries.

While more than 100 irrigators, irrigation scheme representatives and industry advisors from across New Zealand have signed up, IrrigationNZ wants to see more ‘owner-operator’ irrigators attend. . .

Southland’s Morning Milking Roll Call:

Georgia Donaldson discovered some ‘udderly amazing’ facts when she came face to face with about 500 cows on Fonterra Shareholders Allan and Ann Black’s farm in Invercargill this morning.

Each Jersey cow can produce at average 4100 litres of fresh milk a year – enough for more than 20,000 packs of Fonterra Milk for Schools milk.

Georgia was one of several children from 12 Invercargill schools invited to learn about the source of their daily dose of nutrition, and how it can help them concentrate in the classroom and, in this case, outside of it. . .

Rural round-up

‘An industry in transition’ – US beef challenges present opportunities for NZ producers:

The United States’ beef cattle industry is undergoing a major transition, with a significant contraction of its domestic herd diminishing available beef supply locally and offshore. This presents opportunities for New Zealand producers to cash in on increased market share, according to a visiting US meat industry expert.

Rabobank’s Texas-based vice president for animal proteins, Don Close says the reduction in the US herd is “unprecedented”, with current on-feed numbers at six per cent lower than 12 months ago, and set to continue to decrease into the 2013 Northern Hemisphere summer period.

“Right now, with a significant period of drought, the ongoing tightening of our cattle herd is really becoming increasingly evident,” Mr Close said. . .

Controversy over CAP capping and coupling plans – Paul Spackman:

Farming unions and environmental groups have given a very mixed response to yesterday’s crucial vote by MEP’s on the future of the CAP.

Elements that could cut red tape for farmers, ease the burden of inspections and allow for more proportionate penalties were generally welcomed.

However, other proposals were criticised by some for potentially distorting the market and discriminating against larger UK farms. . .

Rural media research reveals the changing face of farming:

The old image of farmers being dyed in the wool consumers of traditional media, late adopters of digital technology and low users of social media has been completely blown apart by a major piece of research commissioned by Waikato/Bay of Plenty based agency, King St.

The research involved 759 farmers – 314 dairy and 346 dry stock – participating in a 15-minute phone survey conducted by independent research firm, Versus Research, on behalf of King St and some of the agency’s rural clients.

The comprehensive study provides a full picture of farmers’ media habits. “It’s the largest study of its kind to be conducted and provides some extremely valuable information, along with some fresh insights”, says King St CEO, Chris Williams.

“If you think farmers are behind the times as an audience, you need to think again. Radio, TV and print are still going strong but it’s in digital media where we saw some big moves, particularly with the under 40s,” says Williams. “And rather than being behind, they are ahead in some instances.” . . .

Roadshow spreads word on lifting returns – Tim Cronshaw:

Sheep farming can once again be a mainstay of the New Zealand economy, says a top merino leader.

New Zealand Merino Company (NZM) chief executive John Brakenridge said sheep farming had anchored much of the New Zealand economy throughout the 1900s and had been overtaken by the dairy industry as it adapted to capture market opportunities.

For sheep farming to return to its previous position farmers had to be far more involved with global markets and accept scientific developments such as genomics research so that sheep could be adapted to meet market opportunities, he said. . .

Monitor puts squeeze on farm fuel thieves – Tim Cronshaw:

Stealing fuel from farm tanks will be made much harder for thieves with a smart new device.

The release of the remotely transmitted levno technology coincides with reports from the Federated Farmers of increased thefts of fuel, equipment and livestock. In the last few weeks diesel has been drained from diggers in Nelson and from fuel tanks in Upper Takaka and Motueka.

The theft of diesel and petrol is likely to be a bigger problem than realised with a farming enterprise estimating as much as 20 per cent of their fuel goes missing. . .

Myanmar President Welcomed by Fonterra:

Today, on his first visit to New Zealand, Myanmar President Thein Sein met with the Fonterra Co-operative Group’s Chairman John Wilson and CEO Theo Spierings at their headquarters in Auckland.

Fonterra, is opening an office later this year in Myanmar, and the meeting aimed to further strengthen the company’s relationship with Myanmar where it has been supplying high quality dairy nutrition for almost 20 years.

Chairman John Wilson said they were pleased to welcome President Sien to New Zealand and provide him with a deeper understanding of their business, and the New Zealand dairy industry. . .

Renowned NZ grape grower Willie Crosse strikes Gold again:

New Zealand Wine Society has been privileged to make wines from Willie Crosse’s pristine fruit since the 2001 vintage when his Riesling won a Gold medal. Eleven vintages on, the magic is stronger than ever.

At the 2013 Easter Show Wine Awards Willie and New Zealand Wine Society did it again, collecting another Gold medal for the Crosse Vineyard Marlborough Riesling 2012.

Willie is thrilled and says, ‘Jo Gear [the winemaker] is shaping quite a record with our riesling. 2012 was a good year on the vineyard, thanks to a very cool summer and a long dry finish through autumn which brought out the flavours and kept the grapes clean. It was a challenging start, but perfect in the end.’ . . .

Rural round-up

Better Lake Rotorua = Farmers + Community + Councils:

A “third way” to better water quality is the promise of the Lake Rotorua Primary Producers Collective signed between Federated Farmers, Te Arawa and councils.
“The positive reaction has been pretty amazing,” says Neil Heather, Federated Farmers Rotorua/Taupo provincial president.

“This is the application of a Land and Water Partnership type approach at a local level.

“Despite one academic taking a pot shot, most Kiwis will see farmers and landowners working hard with regulators to improve what is our lake too. . .

A telling quote about co-ops – Milking on the Moove:

“There seemed little room for entrepreneurial creativity; virtually every decision was politicized.  The most politically active members controlled the co-op with the own personal agendas, and much more energy was focused on deciding which companies to boycott than on how to improve the quality of products and services for customers.  I thought I could create a better store than any of the co-ops I belonged to, and decided to become an entrepreneur to prove it.”

This  quote is from Whole Foods CEO John Mckey. The quote is from his recent book Conscious Capitalism and Forbes has run an article about John and his book, which I found interesting.

John was a hippy in the 60s and 70s and was involved in a commune and various food co-ops.

It appears he became disillusioned with the co-ops and started his own natural food store which grew to be the now famous Whole Foods Market. . .

Failure a huge spur as record-breaking shearer faces biggest challenge -

Tackling the biggest job of your life might not be the best time to talk about failures.

But that’s not the way for Te Kuiti shearer Stacey Te Huia who on Tuesday tackles possibly the greatest shearing record of them all, hoping to shear more than 721 strongwool ewes in nine hours in a remote a King Country woolshed.

The record has not been tried by any other shearer in the six years since it was set by Southern Hawke’s Bay shearing ironman Rodney Sutton.

Tuesday’s bid will be a at Te Hape B, east of Benneydale on SH30 between Te Kuiti and Taupo, and will start at 5am and end at 5pm, including meal and smoko breaks). . .

Gang of four rips through record – Terri Russell:

A lively crowd of about 800 people cheered as four shearers, two from Southland, set a world shearing record near Mossburn yesterday.

Invercargill shearer Leon Samuels, Ohai’s Eru Weeds – who battled on despite being injured – and North Island shearers John Kirkpatrick and James Mack, shore 2556 sheep in eight hours.

The gang set the record in the previously unattempted Heiniger four-stand crossbred lamb eight-hour event. They shore the sheep in four two-hour runs.

The final countdown was heated, as the crowd screamed and shearers sweated it out. Some members of the crowd also performed a surprise haka to the shearers when they finished shearing. . . .

‘Wiggy’ working to better his skills – Sally Rae:

Meet Wiggy from Wales.

Paul ”Wiggy” Davies has been in North Otago working for shearing contractor Owen Rowland, having met Mr Rowland when he was over shearing in Wales.

Mr Davies (27), who had been shearing with former Oamaru man Grant Rowland, now living in Wales, wanted to improve his shearing. . .

Downright ‘grumpy’ over schedule - Rob Tipa:

NEW Zealand meat companies really should listen to their suppliers, because there are some very frustrated, disillusioned and downright grumpy sheep farmers out there.

And with good reason. Those who have withstood the financial pressures experienced by the meat industry in recent years are survivors who deserve a medal for their enduring loyalty to their respective meat processors.

They have listened patiently to promises of greater co-operation between meat companies in one meat industry review after another going back decades.

When the tide turned on low sheepmeat prices in the last couple of seasons, farmers were rewarded for their loyalty with record returns of an average $117 a head for lambs in 2010/11 and $113 a head in 2011/12. . .

Rabobank strengthens NZ research division – new animal proteins analyst appointed:

Rabobank’s Food and Agribusiness Research & Advisory division has announced the appointment of its new animal proteins analyst for New Zealand, Matt Costello.

Rabobank’s head of Food and Agribusiness Research & Advisory Luke Chandler said Mr Costello – who has strong experience as a researcher in the meat industry – was an excellent addition to the bank’s New Zealand food and agribusiness research team, joining senior analyst Hayley Moynihan, who specialises in the dairy sector.

“We’re pleased to welcome Matt into our team here at Rabobank and I am confident his strong background in the animal proteins sector will be a great asset to help further support our clients in this industry in New Zealand,” Mr Chandler said. . .

Global food security and strong trade links key for NZ Ag

The world’s increasing focus on global food security and safety and New Zealand’s strong trade links will be key factors in the international competitiveness of New Zealand’s agriculture in 2013.

In its flagship Agriculture in Focus 2013 report – examining the outlook for New Zealand and Australian agriculture – specialist food and agribusiness bank Rabobank identifies key opportunities and challenges for the competitiveness of New Zealand agricultural commodities in the year ahead.

Overall, the report finds the outlook for New Zealand agri commodities remains generally robust, despite some ongoing challenges to competitiveness.

“Global supply and demand fundamentals indicate an increased reliance on exportable supplies from New Zealand in 2013, which should help bolster local prices, largely off-setting the currency drag (from the high dollar),” the report says.

However, the report cautions, maintaining competitiveness is vital in order to take full advantage of the opportunities.

“Enhancing the international competitiveness of New Zealand agribusiness is becoming increasingly challenging. Where possible, these challenges must be tackled in 2013 to mitigate the impacts of the elevated New Zealand dollar and to unlock the growing opportunities for the sector into the future,” it says.

Food security and safety

Chief among the opportunities for the New Zealand agricultural sector are those presented by the pressing global need to provide food security to rapidly-expanding and increasingly wealthy populations, particularly in developing Asian economies.

The report says New Zealand, like its near-neighbour Australia, is well placed to increase the volume of agricultural exports into the Asian region due to its competitive advantages, including superior product quality, developed trade linkages and geographic proximity.

“The issues of food security and food safety provide enormous opportunities for New Zealand and Australia’s agricultural sectors,” the report says. “Both countries have ample supply of high quality food and agricultural products, and comfortably sit on the doorstep of a fast-growing region.”

However, extracting and retaining maximum value for that production – along with maintaining and developing competitive advantages – will be key to ongoing growth in exports, says Rabobank senior analyst Hayley Moynihan.

“The New Zealand agribusiness sector is expected to play a major role as a reliable supplier of high-quality, safe food over the next decade, however it is not the only country eyeing the opportunities presented by the increasing food demand from a rising middle class in Asia. Maintaining competitiveness is vital to take full advantage of the opportunities,” she said.

Food safety is also an important factor identified by the report. “Plagued by local food safety issues, many trading partners are seeking the assurance of high quality imported food and agricultural products,” Ms Moynihan said. “And stringent food quality and safety frameworks already underpin production systems in New Zealand.”

Trade links

Throughout 2013, New Zealand’s strength in international trade links with key importing markets is expected to be a distinct competitive advantage for the country’s agri exporters, according to the Rabobank report.

“The inability of many, particularly developing countries, to feed growing populations through domestic production means that governments are aiming to facilitate trade flows and offshore investment in agriculture as a means of securing food supply,” Ms Moynihan said.

“Trade relationships and agreements are integral in developing and maintaining efficient access to global markets. The continued facilitation of trade flows to ensure stable food stocks globally in 2013 is expected to help support the local prices of agri commodities in New Zealand.”

For New Zealand, a key focus is the ongoing negotiations with Russia, Belarus and Kazakhstan to form a Free Trade Agreement.

The report says foreign interest in New Zealand’s agricultural assets also looks set to continue in 2013, with the country’s reputation for quality food production making it an attractive destination for investors.

Other issues

Other key issues facing the agricultural sector in 2013 identified by the Rabobank report include the strong New Zealand dollar, increasing regulatory pressures and sector employment.

The New Zealand dollar is forecast to remain elevated for at least another 12 months, challenging the competitiveness and profitability of the country’s agricultural exports, the report says.Media Release February 11, 2013 3

“The elevated currency makes the pursuit of future productivity gains in New Zealand agriculture all the more critical,” Ms Moynihan said.

In addition, increasing regulatory pressures are creating some extra headwinds across the agricultural sector adding to the cost of production, as well as creating uncertainty, limiting resource availability and driving change in farming practices.

While attracting current and future generations to agriculture is a priority for all of the farming sector, Ms Moynihan says. “The challenge is not just meeting and being able to afford immediate labour requirements to get the job done, but identifying from where the next generation of farm owners, managers and agribusiness leaders will emerge,” she said.

Rural round-up

Low prices worry sheep farmers - Gerald Piddock:

Sheep prices rather than feed issues is the major cause for concern for South Canterbury sheep farmers midway through the 2012-2013 season.

Feed levels were good because of the periodic rain throughout the summer. While that was a positive, the returns farmers were receiving for their sheep was a big pill that was hard to swallow, South Canterbury Federated Farmers meat and fibre chairman Neil Campbell said.

“At least we’re not having to sell stock on a depressed store market,” he said. . .

Farmers fume at silence on power line route – Chris Gardner:

Waipa Networks is facing a backlash from angry landowners over its refusal to reveal where it plans to build a 110kv power line, which will cross three Waikato districts.

 Ray Milner, chief executive of the Te Awamutu-based network provider, refused to detail exactly where the company wants to erect the $20 million line when he spoke at Otorohanga District Council yesterday despite being told of landowners’ frustrations.

The line will start near Fonterra’s dairy factory on the outskirts of Te Awamutu and end near the Hangatiki intersection near Waitomo village. The distance by road is approximately 40km. . .

Farming lobby group denies organising geese cull – Paul Gorman:

Federated Farmers is distancing itself from last year’s bloody Lake Ellesmere cull in which Canada geese were bludgeoned to death with clubs and baseball bats.

Rotting carcasses were left floating in the lake after the controversial cull, raising fears of waterway pollution.

Federated Farmers high-country regional policy adviser Bob Douglas said this week that the organisation was not planning further culls of the pest bird.

Instead, it was working with people badly affected by the geese on their land to find a better solution. . .

Experts dump on dung beetle – Richard Rennie:

LEADING scientists and health experts believe there are major risks if dung beetles are released in New Zealand.

The beetles are in caged field trials in Northland after approval was granted by the Environmental Risk Management Authority (ERMA) for 11 species to be imported.

ERMA has since been disbanded and the Environmental Protection Authority (EPA) has taken over its role.

Championed by Landcare, the beetles are intended to assist rapid breakdown of animal waste, help reduce fly infestations resulting from dung presence, and possibly reduce the need for drench use. . .

Wheels may come off rural delivery – Richard Rennie

THE viability of rural mail contractors will be threatened if NZ Post pushes delivery services to only three times a week.

The state-owned enterprise is seeking to adjust the 1998 deed of understanding it has with the government on delivery conditions for standard letters and postal outlet services.

 NZ Post’s proposal document acknowledges rural New Zealand will be most affected by changes, particularly rural delivery contractors.

 One adjustment option the SOE has is to reduce mail services to three days a week . . .

High Value Harvest Underway:

New Zealand’s annual seed harvest is about to hit overdrive, and if last year’s official trade figures are any indication, there’s a surprising amount of money riding on the next few weeks.

Vegetable and forage seed exports were worth NZ$168million for the year ended 31 December 2012, up from NZ$138million the previous year, reports Statistics New Zealand.

Seed industry leaders have welcomed the result, especially considering the exchange rate, and are now eyeing up ways to grow the trade further while maintaining the rigorous standards that position New Zealand at the top end of a large, competitive global market. . .

Rabobank supports red meat sector collaboration program for greater farmer profitability:

Agricultural banking specialist Rabobank has welcomed the newly-announced red meat sector collaboration between industry and government to enhance the long-term profitability of New Zealand’s beef and lamb industries.

Rabobank New Zealand CEO Ben Russell said the bank was pleased to confirm its support as a participant in the proposed program. Rabobank notes the program is reliant on the forthcoming vote by farmers on Beef and Lamb New Zealand’s contribution. . .

Thorn Park Provides Highlights on Karaka Select Sale Day 2:

The momentum has continued right throughout Day 2 of New Zealand Bloodstock’s 2013 Select Yearling Sale today, with buyers reporting tough competition ringside.

By the close of play, 285 of the 611 Select Sale lots had sold for $12,809,000, with the average currently at $44,944 with the clearance rate strengthening slightly to 70%.

The top price was provided early in the day by Lot 707, the Thorn Park colt from Windsor Park Stud that was purchased for $140,000 by NZB as agent. The second foal of the Montjeu mare Kashira, he is from the family of dual Group 1 winners Military Plume and Monaco Consul.

Thorn Park colt Lot 718 fetched the second top price of the day. . .

Judging Underway in 2013 Dairy Awards:

Judging gets underway this week in the 2013 New Zealand Dairy Industry Awards.

National convenor Chris Keeping says the judges will begin the process to determine the 2013 New Zealand Sharemilker/Equity Farmer of the Year, New Zealand Farm Manager of the Year and New Zealand Dairy Trainee of the Year winners.

All entrants participate in the judging process that will select the 34 regional winners in the 12 regional competitions.

“Entrants had been invited to attend information evenings during the past couple of weeks to give them a bit of an idea of what to expect when judges visit on their farms – in the case of sharemilker/equity farmer and farm manager entrants – and what is expected of them. . .

Self-sufficient dairy farm placed on the market:

A well developed dairy farm on the north-east coast of the South Island has been placed on the market for sale.

The 187 hectare Mahunga Farm, 23 kilometres south of Kaikoura, is being marketed by Bayleys Real Estate as an attractive investment to an entry-level dairy farmer, or a group looking for a low-cost and low-output farm to draw healthy profits from. It is flat and well equipped with quality infrastructure. This farm has a sale price of $4.2million (plus GST if any).

Bayleys Canterbury salesperson Ruth Hodges said the current owners invested in Mahunga Farm with a long-term view – focusing on improving pasture quality and developing the farm into a low-input, profitable operation. . .

Rural round-up

New Environmental Planning Resource for Sheep And Beef Farmers – B+LNZ:

Beef + Lamb New Zealand will today launch a refreshed version of its Land and Environment Planning Toolkit, a resource to help sheep and beef farmers manage land and environmental issues on their farms.

The toolkit is being launched by the Minister for the Environment, Hon Amy Adams at an event in Christchurch.

Beef + Lamb New Zealand Chief Executive, Dr Scott Champion said New Zealand sheep and beef farmers had long recognised the importance of caring for the environment, particularly where families have been in the business of farming for generations. They understand the need to maintain and improve the natural resources of their farms for future generations. . .

The environmental sheep & beef farmer:

Federated Farmers has welcomed Beef + Lamb New Zealand’s refreshed Land and Environment Planning Toolkit, having attended its launch in Christchurch today.

“Federated Farmers believes it is vital to have the tools and means that make a real difference. The toolkit will not only help us to do better but also shows how seriously farmers take the environment,” says Jeanette Maxwell, Federated Farmers Meat & Fibre chairperson.

“Being farmers we aren’t big on spin but we are big on actions.
“As a toolkit for meat and fibre farmers, it will help differentiate extensive farming systems from low-land intensive farming too. . .

Horticulture NZ supports economic impact evidence:

 

Horticulture New Zealand is backing the submission of new evidence to the Environment Court on the much debated Manawatu-Whanganui regional plan.

The horticulture body is one of a number of farmer and grower organisations that strongly oppose the court’s ruling on the One Plan released earlier this year.

The court has backed the council’s proposal to impose nutrient caps on intensive farming and vegetable-growing operations to protect waterways from nitrogen pollution. . .

Farmers and growers say it will threaten their livelihoods. . .

Huge-support-for-farmers-who-lost-cows:

The south Taranaki farmers who lost 120 cows from still unknown causes have been inundated with offers of help and support, including replacement livestock.

The cows, which made up about a quarter of the farmers’ herd, died suddenly earlier this month, after their water troughs were topped up using a portable tank.

Within 30 minutes, cows began falling to the ground. Vets were called immediately, but there was little they could do as some of the cows died quickly. . .

NZ farmer confidence stages mild recovery yet remains in negative territory

 

Results at a Glance

• Farmer confidence improved slightly yet remains in negative territory for the fourth consecutive quarter

• Global economic outlook diminishes farmers’ expectations of their own business performance

• Dry seasonal conditions are concerning for New Zealand farmers

• Sheep and beef farmers the most pessimistic . . .

New Zealand Seafood Industry Welcomes NZ And US Food Safety Agreement

 

The New Zealand seafood industry today welcomed the joint agreement between United States Food and Drug Administration (FDA) and the Ministry for Primary Industries (MPI) recognising each other’s food safety systems as comparable to each other.

“The agreement is a vote of confidence in New Zealand’s food safety system and in the high quality of New Zealand’s seafood products,” says , Acting Chief Executive of Seafood New Zealand.

Ms Campbell says the agreement will mean greater commercial certainty for the seafood industry, as well as providing US consumers with even more confidence in New Zealand seafood. . .

Rural round-up

Feeding East Asia:

The importance of the East Asia region as the most significant market for many New Zealand and Australian food and fibre products is set to grow in coming years, highlighted more recently by the global economic downturn, according to Rabobank.

In a recent report titled, ‘Feeding East Asia’, Rabobank senior analyst Marc Soccio says the global and economic downturn has sharpened the focus onto the East Asian region as it continues to expand its slice of the global economic pie, offering opportunities no longer available in traditional markets as incomes grow and diets change in fundamental ways. . .

Fonterra seeks consent to build ‘Darfield-sized’ milk powder plant at Pahiatua site:

Fonterra Cooperative Group, the world’s biggest exporter of dairy products, is seeking consents to build a new milk powder plant at Pahiatua, more than doubling output from the site and mopping up surplus milk in the lower North Island.

The third drier at Pahiatua would process 2.5 million litres of milk a day, making it a similar size to its new 2.2 million litre-a-day plant at Darfield in Canterbury. The two existing driers at Pahiatua process 1.4 million litres a day, forcing Fonterra to send a further 1.6 million litres by rail to its Whareroa plant. . .

New welfare code to phase out battery cages:

Battery cages for layer hens are to be phased out under a new Code of Welfare released today by Primary Industries Minister David Carter.

From tomorrow (7 December), no new battery cages can be installed by egg producers and a staged phase-out of existing cages will begin.  By 2022, all battery cages will be prohibited.

“Scientific evidence and strong public opinion have made it clear that change is necessary.  We need alternatives to battery cages,” says Mr Carter. . .

Hemp Foods Coming Soon:

 Ashburton based company Oil Seed Extractions Ltd (OSE) has reached another milestone in its rapid rise as the Southern hemisphere’s leading producer and supplier of specialty seed oils and related oilseed products. This milestone relates to a new addition to the companies well established product range – hulled hemp seed.

Following on from other pioneering milestones in its short company history, OSE has become the first NZ company to produce hulled hemp seed in this country. Managing director Andrew Davidson was delighted with the quality of the product produced and was excited at the outcome in the company’s 10th year of business. “It’s great to be involved with the production of such a high quality and nutritious product and it’s even more rewarding for the business knowing the seed has been grown locally in Mid Canterbury, with complete traceability from the planting of the seed, through to the processing and packing of the final finished product”. . .

Nufarm earnings to rise at least 15% on Sth America, currency gains:

Agricultural chemicals manufacturer Nufarm says first-half earnings will rise at least 15% on improved trading in South America and Europe, and foreign exchange gains.

A strong performance in South America and an improved outcome in Europe “will more than offset what is likely to be a weaker first half result in Australia,” managing director Doug Rathbone told shareholders at their annual meeting in Melbourne.

“We remain very confident of generating an improved underlying ebit outcome for the current full year,” he says. . .

Pesky varmints - Wayne Linklater:

Did you know New Zealand has a pest problem?”

New Zealand is waking up from a nightmare to discover it is real. At least 2788 New Zealand species are threatened with extinction. Our iconic native species and their habitats are in trouble because they are being eaten by introduced pests. Cats, rats, possums, stoats and several others are a leading reason why New Zealand has one of the world’s worst records of native species extinction.

We should displace our nightmare with a dream. It is fun to dream and share our dreams. Our Department of Conservation (DoC) is dreaming…

Meeting People Best Bit of Dairy Awards:

 The 2012 New Zealand Farm Manager of the Year, Mick O’Connor, says the hardest part about the dairy industry awards is actually entering.

“Once you have done that, there’s no looking back.”

Mr O’Connor, who is contract milking 940 cows at Dunsandel for Dairy Holdings, says the New Zealand Dairy Industry Awards is great.

“We entered for a number of reasons, but mainly to see where our business was at and where improvement was needed. . .

Super premium honey mead wine launched:

The first “super premium” honey mead wine has been launched on the New Zealand market. It is tagged “premium reserve”, and aged with toasted French oak, and wone best in class at the recent national Fruit Wine Competition. Appropriately named “Excaliber”, the back label describes it as “the Holy Grail of honey mead wine.” It is the latest addition to the Bemrose range of mead wine and liqueurs, produced by Wildfern NZ, which also produces premium cocktail liqueurs.

Excaliber is made from a blend of native honeys, including Manuka honey: the rest are secret. “The quality comes from the exacting standard of balance with which we have selected honeys to give depth and richness with spice, lightness, and vanilla undertones: it is made the way you might make a blended red wine from Cabernet Sauvignon, Cabernet Franc, Merlot, Malbec, and a touch of Pinot Meuniere”, explains owner and winemaker, Mark Atkin. . .

Another big lift in the Hawke’s Bay beetroot crop:

Early next week Wattie’s in the Hawke’s Bay will begin harvesting its beetroot crop which, at 22,000 tonne, will be 50 percent up on last year.

Wattie’s Crop Supply Agronomist Tim Agnew says that after some cooler temperatures in early and mid- November, warmer weather has had a dramatic effect on the crop, and it is “really kicking away” now.

“We will be harvesting baby beets from around December 10, and the harvest overall will continue through until May next year, although these plants are not yet in the ground. . .

NZB Karaka Premier Sale Catalogue Now Available

New Zealand Bloodstock’s 2013 Karaka Premier Sale catalogue is now available online.

The 2013 Premier Sale catalogue features a hot line-up of 441 yearlings that will be offered over the two-day Sale on Monday 28 & Tuesday 29 January.

With 106 yearlings from stakes-winning mares and 123 siblings to stakes winners, the 2013 Premier Sale features siblings to a number of star performers including:

• 34 siblings to Group 1 winners including the four time Group 1 & 2012 Cox Plate winner Ocean Park (Lot 330) as well as Glamour Puss (Lot 130), Lights of Heaven (Lot 182), El Segundo (Lot 285), Rollout the Carpet (Lot 284), Norzita (Lot 421), Ambitious Dragon (Lot 164) and more. . .

Rural round-up

New Zealand urged to protect its brand – Sally Rae:

For an export nation like New Zealand, being “clean and green” is not enough any more, Oritain Global chief executive Dr Helen Darling says.

‘We actually need to be clean, green and clever,” Dr Darling said yesterday, while referring to the increasing instances of global food fraud.

Food fraud was an emerging risk for both consumers and producers worldwide, with the OECD estimating it cost legitimate producers about $US250 billion every year and that figure was growing, she said. . .

Local water focus urged – Howard Keene:

This month’s release of the third and final Land and Water Forum report marks a new consensus-driven approach to reform laws and practices around freshwater management in New Zealand, but its success will depend on how much the three reports the Government is willing to adopt.

The report recommends that local communities make decisions on individual catchments, acting within a national framework and bottom lines set by the Government. It also says water should be made more easily transferable between users.

While the report has received a mostly positive response there have been some cautioning voices. . .

Sweet smelling possums may help eradicate TB:

Using sex pheromones to capture possums is one example of the cutting-edge TB control initiatives featured in this year’s Animal Health Board (AHB) annual report and research report.

A two-year study into using sexually receptive female possums as a way to capture possums of both sexes in areas where numbers are low is among the scientific work forming part of the $2.5 million annually allocated by the AHB to research.

AHB chief executive William McCook said the two reports show the continuing significant progress being made in controlling and eradicating bovine TB from New Zealand, with the support of a range of government and industry partners. . .

Landcorp goal 80% fixed price sales – Alan Williams:

Landcorp sold more than 70% of its export lambs under fixed price contracts in its latest year, as part of a longer term goal to have 80% of all red meat sales handled this way.

This makes more than 230,000 lambs on fixed contracts out of a total 330,000 sent to processing companies in the year ended June 30 by the state-owned farmer.

Prices were on average higher than those achieved on traditional schedules, Landcorp livestock marketing manager Andrew Hall said in the written annual report.

About half the fixed price lamb contracts were for supply to the United Kingdom’s biggest grocery chain Tesco, he later told The New Zealand Farmers Weekly. . .

Rabobank Report: A New Wine Frontier:

With maturing or declining sales in many traditional markets, wine companies across the globe are increasingly searching for new growth markets. Emerging markets are attracting the interest of nearly all major wine companies. But those companies that were late to invest in these markets often have a greater challenge as the competition has already established routes to market and has garnered share of mind with the consumer. While China and South Korea probably rank as the most attractive emerging wine markets, Rabobank has identified Mexico, Brazil, Poland and Nigeria as four ‘hidden gems’ that have the potential to become important growth markets. Early investments to establish a route to market and build brand awareness hold the key to long term growth in these markets. . . 

And from Facebook:

Rural round-up

Meanwhile back at the ranch – Fran O’Sullivan:

Is Fonterra’s Sir Henry van der Heyden staying on past his use-by date as the dairy co-operative’s chairman to protect chairman-elect John Wilson from a boardroom coup?

That question was doing the rounds even before Fonterra confirmed on September 27 that van der Heyden would not step down from the board as expected this December when he hands over the chairmanship to John Wilson at the co-op’s AGM.

Van der Heyden will instead stay on for an unspecified period – expected to be much less than the December 2013 period when his term as an elected board member runs out – to ostensibly “provide continuity around the board table” until after Trading among Farmers (Taf) is up and running. . .

Maintaining lifestyle balance – Sally Rae:

Keri Johnston was about halfway through her final year at St Kevin’s College, in Oamaru, when she decided to pursue an engineering degree.

Ms Johnston had always loved science and mathematics but laughingly recalled how she hated the sight of blood, which ruled out anything in the medical profession.

After hearing a talk from a lecturer from the University of Canterbury School of Engineering, she decided engineering was something she might like to do. . .

Rabobank Australia & NZ country banking head appointed CEO of US Rabo AgriFinance:

Rabobank Australia and New Zealand Group country banking division head Neil Dobbin has been appointed to run Rabobank’s United States agri banking business, Rabo Agri Finance (RAF).

Mr Dobbin – a veteran of 25 years with Rabobank in Australia and New Zealand, the past decade as group executive Country Banking Australia & New Zealand – has taken on the role of chief executive officer for RAF.

Announcing the appointment, Rabobank Group executive board member Berry Marttin said during Mr Dobbin’s stewardship of its Country Banking operations in Australia and New Zealand, Rabobank had grown to become the leading food and agribusiness bank in the region. . .

New voice for local farmers -

The new president of Federated Farmers in Wairarapa is aiming to make sure local farmers have their voice heard.

Bideford’s Jamie Falloon was voted in on Tuesday night by the executive committee to replace outgoing president Paul McGill, who is taking up a position at Landcorp in Wellington.

Mr Falloon, 43, lives in Bideford with his wife Georgie and three children Joe, 9, John, 6 and Anabelle, 4. . .

Blue sky thinking from green fingered finalists:

Ideas that cut the cost of heating propagation beds to grow plants and turn frost fans into power generators are just two of the six projects being developed by the finalists for the Agmardt Market Innovation project in the 2012 Young Horticulturist of the Year Competition. Other innovation ideas include collapsible crates for freighting small plants, an instant rollout flower mat, and a design that takes weeding to a new level.

Six finalists from around New Zealand who have won their industry sector competitions are preparing for the intensive two day competition on November 14 and 15 in Auckland.

“The standard this year is amazing; I think the judges will have difficulty selecting the winner,” says Nicola Rochester, Chair of the RNZIH Education Trust, which manages the competition. . .

NZ farmer confidence lower

Rabobank’s latest quarterly Rural Confidence Survey shows New Zealand farmers’ confidence is lower.

Results at a glance:

• Farmer confidence has continued to decline and remains in negative territory
• High dollar and lower commodity prices main dampeners on confidence
• Negative sentiment now impacting farmers expectations of their own business performance
• Dairy sector confidence has staged slight lift

The survey which was conducted in September found:

. . .  that 44 per cent of the nation’s farmers expect the agricultural economy to worsen over the next 12 months (compared to 36 per cent with that expectation in the previous quarter and 10 per cent at the same time last year). Just 15 per cent expect economic conditions to improve.

That is a bit gloomier than the rural grapevine suggests, but of course the grapevine isn’t a scientific tool.

Rabobank New Zealand CEO Ben Russell said that while New Zealand farmer confidence had been on the decline since March last year, this survey was the first to show farmers now expected a greater negative impact on their own businesses.

“Farmers’ expectations of their own farm business performance had previously held up better than confidence in the agricultural economy as a whole, however this measure has also now showed some deterioration,” he said.    “This latest survey found 42 per cent of farmers expect their own farm business performance to worsen over the next 12 months, compared to 29 per cent in the previous quarter.”

Mr Russell said the high New Zealand dollar and falling commodity prices were key reasons for farmers’ declining confidence, cited by 50 per cent of farmers who expected conditions to worsen.

“Overseas market conditions and rising input costs were also shown to be a concern,” he said.

Of those New Zealand farmers surveyed who had a positive outlook, confidence was being driven by the expectation of positive flow-on effects to New Zealand agriculture from the drought in the US and tight food supplies globally.

Dairy and sheep farmers I’ve been talking to are expecting returns this season to be down on last year’s and that will impact on budgets and bottom lines.

But this is regarded as a temporary blip rather than a trend. The medium to long term outlook is generally pretty positive.

 

Co-ops key to feeding world

Agricultural co-operatives are the focus of World Food Day 2012.

The success of agricultural co-operatives here supports the contention that they are the key to feeding the world.

One reason for their success is that suppliers are shareholders.

This gives them a much stronger position than farmers who supply companies they don’t own who are then far more likely to be squeezed by processors and retailers.

Contrast returns to dairy farmers here, most of whom supply to co-operatives in which they own shares, with those in Australia where farmers have been the losers in supermarket wars which drove down the price of milk.

Farmers here don’t just benefit from being part of co-operatives which process their produce. Ballance and Ravensdown which between them supply most of our fertiliser are co-operatives and so is the specialist agribusiness bank, Rabobank.

Rural round-up

Rabobank Australia and New Zealand Agribusiness review October:

Key highlights:

• A warm end to spring is on the cards for most of Australia according to the Bureau of Meteorology. Climate models surveyed by the Bureau suggest sea surface temperatures in the tropical Pacific Ocean will maintain values around typical El Niño thresholds for the remainder of 2012.

• The US Federal Reserve announced the third stage of its quantitative easing program to help boost investment and spending in the economy. On a negative note, the World Trade Organisation downgraded its forecasts for growth in global trade in 2012 and 2013 by over one percentage point in response to slowing global economic activity.

• The New Zealand dollar has held firm over the course of the past month following the announcement of further liquidity measures in key global economies. The Australian dollar found some relief on the news of the Reserve Bank of Australia’s decision and softer external trade numbers and is currently trading around the USD1.025 level. . .

The full report is here.

A Successful Year for Agresearch:

On-farm pest control, new value-added products and improved environmental performance are three of the significant contributions made by AgResearch scientists to New Zealand’s agricultural economy over the past year, according to its 2012 annual report.

At the same time, the country’s largest scientific organisation has sought to realign itself more closely with its farmer, government, industry sector and other stakeholders, says Chief Executive Dr Tom Richardson.

“There is still much to do and we have valued the willingness of our sector partners to engage with us,” he says. . .

Standing for nothing does our agriculture a big non-favour  – Pasture Harmonies:

If you stand for nothing; does that mean anything is acceptable….or not?

This is the dilemma for NZ Inc agriculture as AgResearch announces the recent success of ‘Daisy’ a cow genetically modified to produce milk with much less beta-lactoglobulin (BLG). This is a milk whey protein known to be allergenic to some people. See the NZ Herald version of the story here.

I’m not commenting on the clever science behind GM Daisy – essentially using two microRNAs and RNA interference to knock down the expression of BLG. AgResearch next want to normally breed from Daisy and see if the same non-BLG milk is produced by her daughters – a several year exercise. . .

Free database will open access to best tree information

Farmers looking for information about any aspect of planting and managing trees in the working landscape will soon be able to access a new online – and free – database listing the most useful and credible information resources available. This database will range from practical aspects of growing and harvesting trees for timber through to establishing riparian plantings and management information such as budgeting and forest ownership options.

As a vital first step the project organisers are looking for input from farmers, via a short online survey as to how they prefer to receive this type of information. This survey can be found at: https://www.surveymonkey.com/s/Trees_on_Farms. . .

Below-ground protection from new grass endophyte

A Canterbury pasture plant breeding company is set to release a major advance in the fight against a multi-million dollar farming problem, insect pests.

Cropmark Seeds Ltd has managed to endow its pasture varieties with an endophyte “GrubOUT® U2” that gives grass grasses greater persistence under insect attack, above and below ground.

“It’s perhaps the greatest advance in plant breeding in 20 years, and it will have a dramatic effect on our farming systems and production” said Cropmark Seeds Marketing Manager Garry Begley.

The key to this breakthrough is the phrase “below ground”.

Livestock Farm Winners Inspire Other Farmers to Enter 2013 Ballance Farm Environment Awards:

Winning the Beef + Lamb New Zealand Livestock Farm Award in the 2012 Northland Ballance Farm Environment Awards was welcome recognition for Okahu farmers John and Lurline Blackwell and their son Peter.

But it wasn’t the main reason they entered.

“We weren’t looking for glory,” John says.

“We just wanted to support the competition and learn more about sustainability.”

The Blackwells farm a 345ha sheep and beef property, southeast of Dargaville. ‘Summer Hill Farm’ runs a small but highly productive sheep flock and finishes around 400 bulls a year. The farm also runs Wagyu-cross steers and heifers on contract. . .

Mind-bending video of a sheep with an upside down HEAD… and man who filmed it insists it was no fake – Alex Ward:

Look a bit closer and you will notice something very odd about this sheep.

Seemingly defying nature quite happily as it nibbles grass, it is indeed a sheep with an upside down head – but is it real?

The owner of the YouTube video of the weird animal insists it was no fake as the clip sparked the curiosity among thousands, becoming an internet hit with almost 50,000 views in five days. . .

(Hat tip CoNZervative)

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.

Rabobank forecasts agflation

Drought in the USA, Russia and South America is contributing to higher prices for agricultural commodities.

Skyrocketing agricultural commodity prices are causing the world to re-enter a period of “agflation”, with food prices forecast to reach record highs in 2013 and to continue to rise well into Q3 2013. Unlike the staple grain shortage 2008, this year’s scarcity will affect feed intensive crops with serious repercussions for the animal protein and dairy industries, according to Rabobank.

Luke Chandler Global Head of Agri Commodity Markets Research at Rabobank commented, “The impact on the poorest consumers should be reduced this time around, as purchasers are able to switch consumption from animal protein back towards staple grains like rice and wheat.

These commodities are currently 30 per cent cheaper than their 2008 peaks. Nonetheless, price rises are likely to stall the long-term trend towards higher protein diets in Asia, the Middle East and North Africa. In developed economies – especially the US and Europe –where meat and corn price elasticity is low, the knock-on effect of high grain prices will be felt for some time to come.”

Due to the long production cycles of the animal protein and dairy industries, the affects of grains shortages will be more sustained as herds (especially cattle) take longer to rebuild, maintaining upward pressure on food prices. However, food makes up a smaller proportion of budget spend in such countries, so the current period of agflation should not lead to the unrest witnessed in response to the shortage in 2008.

Rabobank estimates that the Food and Agricultural Organisation (FAO) Food Price Index will rise by 15 per cent by the end of June 2013. In order for demand rationing to take place, in turn encouraging a supply response, prices will need to stay high. As such Rabobank expects prices – particularly for grains and oilseeds – to remain at elevated levels for at least the next 12 months.

Most of our meat and milk producing herds are free range which means we ought to benefit from increased prices for our produce without them being offset by significant increases in the cost of feed.

Whilst the impact of higher food prices should be reduced by favourable macroeconomic fundamentals (low growth, lower oil prices, weak consumer confidence and a depreciated US dollar); interventionist government policies could exacerbate the issue. Stockpiling and export bans are a distinct possibility in 2012/13 as governments seek to protect domestic consumers from increasing food prices. Increased government intervention will likely encourage further increases in world commodity and food prices.

Rabobank expects that localised efforts to increase stockpiles will prove counterproductive at the global level, with those countries least able to pay higher prices likely to see greater moves in domestic food price inflation. This is a vicious circle, with governments committing to domestic stockpiling and other interventionist measures earlier than usual—recognising the risk of being left out as exportable stocks decline further.

On top of that, Rabobank warns that global food stocks have not been replenished since 2008, leaving the market without any buffer to adverse growing conditions. Efforts by governments to rebuild stocks are likely to add to food prices and take supplies off the market at a time when they are most needed.

That sounds like another argument for free trade.

Rural round-up

Efficiency with farm inputs – a recipe for productivity

An increasingly complex and volatile global farm input market is making it imperative for New Zealand farmers to have in place good purchasing strategies, while focusing on ways to conserve soil nutrients and input use, according to a new industry report.

The report, Efficiency with farm inputs – a recipe for productivity, by agribusiness banking specialist Rabobank, says more efficient use of farm inputs – including fertilisers, chemicals and fuel –will be essential in ensuring profitability, driving productivity growth and improving environmental sustainability of farm businesses into the future.

Report author, Rabobank senior analyst Michael Harvey says, with farm inputs a vital component of modern production systems, all farmers in New Zealand are exposed to the dynamics of procuring farm inputs. “In more recent times these markets have been evolving and becoming more sophisticated, which is altering the business landscape for farmers as end users,”he says. . .

Country life # 4 –  Quote Unquote:

Very late last night – me dozing off to the Economist, my wife dozing off to her novel – we heard a cow mooing, mooing for ages and we knew from which paddock. . .

Welcome to the Hotel van der Bijl – Shawn McAvinue:

More dairy farmers are building wintering sheds in Southland.  Shawn McAvinue  talks to one, who says those building them need to “do it once and do it right”.

The back rubs end abruptly when the music wanes. Then the stampede begins. 

    Car Wash, the 1970s disco hit by Rose Royce is playing to 750 cows and a party of about 20 curious farmers, who have come to see a new $4 million wintering barn in Dunearn, near Mossburn. 

    The $9000 wireless sound system is struggling to stay tuned to The Breeze radio station and the 24 speakers in the shed begin to crackle. Then the music stops. It’s like a gunshot fired in a packed nightclub. The cows get startled then stampede. Then there’s a crackle, the radio reception kicks in and Rose Royce returns: “Talkin’ about the car wash, yeah”. 

    The fickle cows are instantly content and return to chewing on feed or massaging their rumps.

Grand plans for NZ lamb in China - Shawn McAvinue:

The sleeping giant is wide awake and has a taste for our meat, say Alliance Group marketers from Southland. 

  Alliance Group staff went to China for 10 days to meet executives from Grand Farm, the largest single importer of New Zealand sheepmeat in China. 

    Alliance marketing development services manager Gary Maclennan said he was surprised how advanced the Grand Farm processing plant in northeast China was, “and how huge their plans are for target growth. They plan to double in two to three years.” . . .

Waikato cattle farmers at higher risk of fatal disease – Natalie Akoorie:

Waikato beef and dry stock farmers have higher rates of leptospirosis, a potentially fatal bacterial disease passed to humans through animals and infected water, according to a study in the New Zealand Medical Journal.

The farmers were probably more at risk because beef and dry stock cattle were less frequently immunised against the deadly disease, according to the report by Waikato District Health Board medical officer of health Dr Anita Bell and health population officer George Cowie.

The study, done over seven years, found the Waikato has one of the country’s highest annual rates of notified cases of the infectious disease, with the majority coming from the Waitomo district. . .

Online tool could enhance farm compliance -  Shawn McAvinue:

The former head of Environment Southland says new technology can ensure good farmers having a bad day are not unfairly prosecuted by compliance officers. 

    Former Environment Southland chief executive Ciaran Keogh said among the well-attended environmental conference in Auckland yesterday were Environment Minister Amy Adams, Primary Industries Minister David Carter and Nelson MP Nick Smith. 

    Mr Keogh was invited by the Environmental Defence Society to talk about new AG-HUB technology at Aotea Centre. . .

Scott seeks higher honours - Gerald Piddock:

Mid Canterbury arable farmer Andrew Scott is now be turning his attention to the Young Horticulturist competition after being crowned the country’s top young grower. 

    The 29-year-old beat three others to win the Young Grower of the Year title at Horticulture New Zealand’s annual conference in Auckland, 

    He earned his place in the competition after winning the Young Vegetable Grower competition earlier this year. . .

Lifestyle blocks a source of tension – Peter Watson:

Rural subdivision is about to come under the spotlight as the Tasman District Council reviews its rules and research shows the region losing some of its  best land at an increasing rate.   Peter Watson reports on what  is set to be a difficult debate. 

    Tasman and Nelson are losing their most productive land to lifestyle blocks and urbanisation at one of the fastest rates in New Zealand, sparking calls for councils to take a much tougher stance on rural subdivision. 

    Recent research by Landcare shows that 24 per cent of 16,000 hectares of high-class land in Tasman is now occupied by lifestyle blocks – the third highest level among regions and well above the national average of 10 per cent. Another 1 per cent of this land has gone on urban development, double the national rate. . . .

New wine frontman takes pride in region:

Richard Flatman describes himself as a “pretty passionate, outspoken bloke who loves Nelson” and good wine. 

    They are qualities that will come in handy in his new role as chairman of the Nelson Winegrowers Association. 

    The 41-year-old viticulturist at Neudorf Vineyards takes over from Mike Brown, who stepped down last month after six impressive years as industry spokesman. . .

Good Things Come in Eights for Misha’s Vineyard

Cromwell, Central Otago, 8 August 2012 – Misha’s Vineyard has announced a distribution expansion into eight markets around the world. The number eight, a lucky number in Chinese culture, has been an auspicious number since Andy and Misha Wilkinson first planted their vineyard on an old Chinese gold mining site on Bendigo Station, Central Otago, just eight years ago.

In the northern hemisphere the new markets are the Scandinavian countries of Denmark and Sweden through Gastro-Wine and across in the important US market, Misha’s Vineyard will be represented by Vindagra USA. . .

Sheep, cattle numbers holding, prices not

Sheep and beef cattle numbers increased by 2.6% and 1% respectively in the year to the end of June.

Beef + Lamb New Zealand Economic Service director Rob Davison says this compensated for the 4.4 per cent decline in sheep and 2.6 per cent decline in beef cattle the previous year.

B+LNZ’s annual stock number survey, which establishes the productive base of livestock for 2012-13, shows that while sheep numbers were up 2.6 per cent most of this increase will be stock carried over for slaughter in July-September.

“Breeding ewe numbers at 20.61 million are almost static (+0.6%) on the previous June when ewe numbers fell 6.0% per cent to a low of 20.49 million. Strong mutton prices earlier in the year encouraged a high slaughter of cull ewes for the second year in a row. The offset to this was a high retention of ewe hoggets (+10%) last July which by 30 June 2012 were mature first time in lamb ewes.

“Ewe condition is good across the country. Scanning results for most regions show in-lamb ewes are carrying more multiple lambs with the general comment that scanning percentages are up 5 to 10 per cent on last year.

“All we need now is an excellent spring to ensure high survival of the lambs born.”

Davison said the scanning results lead to expectations that the 2012 lamb crop could be up on last spring by 1.0 million lambs (+4%). This outcome would lift the ewe flock performance measured by lambing percentage to around the highest achieved, which in 2009-10 was 123 per cent. There is potential to exceed this performance level. Each 1 percentage point change in lambing percentage equates to 200,000 lambs.

Beef cattle numbers increased 1.0 per cent to 3.88 million and partly reversed the 2.6 per cent decline for the previous year. North Island beef cattle numbers increased 3.6 per cent with increases in both the beef cow herd and weaner cattle numbers.

The South Island beef herd in contrast decreased 5.7 per cent. This decrease came from earlier slaughter due to good seasonal conditions so that fewer cattle were on hand at 30 June 2012, coupled to pressure from alternative land uses that include dairy grazing.

Davison says the Economic Service estimates the dairy herd increased 3.2 per cent with part of this increase a carry-over of older cows in the North Island due to excellent growing conditions.

Numbers might be holding but demand might not a report from Rabobank says:

While New Zealand sheepmeat producers have been enjoying a ‘full cup’ in recent times – with strong farmgate returns – a ‘steady hand’ will be required to balance future production levels with demand uncertainty across European markets, Rabobank reports.

In its recently-released report Sheepmeat – full cup, steady hand, the global agribusiness banking specialist says the New Zealand sheepmeat sector has been enjoying strong farmgate returns in the past two seasons as a result of retail price increases and limited supply availability.

However, the report cautions, a ‘steady hand’ will be required to manage the sector’s immediate future due to demand uncertainty across European markets as consumers feel the pressure of rising food costs against wage stagnation.

Report co-author Rabobank senior analyst Hayley Moynihan says global sheepmeat supplies are forecast to increase from 2013, off a low production base, although this volume growth is expected to be modest and availability will not fully recover 2010 levels until 2015.

“While sheepmeat demand has softened in developed markets, we expect retail prices will normalise at new levels – typically 10 per cent higher than the three-year average for most regions,” she says.

“For New Zealand producers, a positive outlook will persist in export markets as the economic outlook improves and the market balance remains tipped in their favour.”

That confidence in the future is reassuring because prices dropped throughout last season and the wise are not budgeting on any increase in the coming one.

However, she cautions that problems in Europe pose challenges.

In real terms, Ms Moynihan says, the increased cost of living for the average EU consumer is likely to exceed any growth in income – at least for the next 12 to 24 months.

“Added to this, annual food price inflation is running at three per cent and has been above total inflation since November 2011,” she says.

“Meat price inflation has led the charge, averaging 4.5 per cent year-on-year, with eastern European countries experiencing increases as high as 10 per cent in 2011.
These factors can be expected to weigh heavily on sheepmeat demand and to limit growth prospects.”

When we were in England in June we visited several supermarkets. The least expensive lamb we saw was about 8 pound a kilo – and that was marked down to half price. It was sitting beside pork and chicken which were about half that price again.

We can’t compete with those alternative sources of protein on price, we have to compete on quality. But as the European economies stutter fewer people will be able to go for quality rather than price.

The economic outlook for developed economies is for a slow recovery through to the end of 2013, Ms Moynihan says.

“Consumers in these markets will have to contend with protracted low real wage growth, which will limit sheepmeat demand growth and the potential for extracting further value gains,” she says.

“Emerging markets will continue to grow, albeit slightly below the rate of previous years, and offer opportunities for sheepmeat demand growth.”

The Rabobank report says retail prices will also be influenced by continued strength of competing meat prices; the impact of lower beef production from the US and EU on global supplies; and the rising beef production costs from Brazil, China and Australia.

“These factors are likely to mean that retail price movements for lower-value cuts will continue to rise faster than high-end cuts. This will be particularly evident across emerging economies and consequently will only provide limited upward pressure on farmgate returns for exporters,” it says.

People in some emerging economies were demand for sheepmeat is growing have a preference for lower value cuts.

We visited a packing house in England where they had responded to tougher times by packaging meat for human consumption from cuts which in better times had been used for pet food.

Ms Moynihan says by 2015, sheepmeat production from key exporting regions is expected to lift by an additional 135,000 tonnes per annum, which would bring global export supply back to 2010 levels.

“With potential economic growth in Asia and the Middle East, continued pressure on flocks in continental Europe and economic recovery in the EU, a bust in prices is not likely,” she says.

“With the cup of farmgate returns for sheepmeat in Oceania above half full, a steady hand will be required to ensure production grows in line with global market requirements.”

The next season or two might be difficult but it is reassuring to see a brighter forecast for the medium term.

Rural round-up

Philanthropist meat industry pioneer dies:

Hawke’s Bay businessman and philanthropist Graeme Lowe has died after a 15-year battle with Parkinson’s disease. 

    His family said he died peacefully at his Havelock North home yesterday, surrounded by close family members, including wife Jenny, son Andy, and daughters Sarah Whyte and Kate Stace. 

    Andy Lowe said his 77-year-old father had lived his life to the full. 

    “We have lost a great husband, father, mentor and friend,” the son said. “He has touched the lives of so many, from all walks of life.” 

    A pioneer of the modern meat industry, Mr Lowe led Lowe Corporation from its inception in 1964. . .

PGP delivers on Government growth plan:

Primary Industries Minister David Carter has welcomed today’s announcement of a major investment partnership for New Zealand’s export beef sector.

The Government’s Primary Growth Partnership (PGP) is to fund half of a $23.7 million programme led by Brownrigg Agriculture and Firstlight Foods to produce high-value marbled beef for premium markets.

“The Government’s total investment so far of more than quarter of a billion dollars in PGP programmes demonstrates its firm commitment to boosting economic growth through primary sector research and innovation,” says Mr Carter. . .

Tapping into the halal economy - Richard Meadows:

The Muslim slaughtermen turns the stunned sheep to face Mecca, offering a prayer to Allah as he slits its throat and leaves the carcass to bleed out. 

    This bloody image is the face of halal in New Zealand, but business leaders will have to move past it if they want a piece of the largely untapped $2.3 trillion halal economy globally. 

    “Halal is not about ritual slaughtering of animals,” said Jamil Bidin, chief executive of Malaysia’s Halal Industry Development Corporation. . .

German Festival-Goers Flock to Eat New Zealand Lamb and Venison:

New Zealand lamb and venison were in such hot demand at Northern Europe’s biggest summer festival, the organisers had to get in extra chefs to satisfy the hungry queues.

Beef + Lamb New Zealand and Deer Industry New Zealand were invited to take part in this year’s Kieler Woche celebrations – the first time in the festival’s 130-year history New Zealand has been represented at the international market.

The market in Kiel’s picturesque main square is at the hub of more than 2,000 sports and cultural events which attract around three million visitors annually to a city with a population not much bigger than Hamilton’s. . .

Lifestylers to set rural rates – Alan Emerson:

I didn’t realise that New Zealand had a National Institute of Demographic and Economic Analysis but we do.

It is part of the University of Waikato in Hamilton. Its Professor of Population Economics is Dr Jacques Poot who has an impressive list of qualifications and is extremely approachable.

He gave a talk at the recent Fieldays at Mystery Creek and the news is largely bad for the rural sector and the family farm. I was surprised the talk didn’t receive more media coverage than it did.

Basically over the next 20 years the rural population will shrink and get older. . .

Move to NZ life-changing – Sally Rae:

Animal scientist Bruno Santos has no regrets about a    life-changing decision to move from Brazil to Dunedin.   

 Mr Santos, who moved to the city in February to work for  consultancy and new venture development company, AbacusBio,      was joined by his wife, Renata, and their two young childre last month.

He is no stranger to AbacusBio, having collaborated with the  company on business development and technical projects in Brazil. . .

New Zealand wine – a glass half-full:

A weather-affected 2012 New Zealand wine harvest has reduced bulging stocks and driven a small but significant lift in Marlborough sauvignon blanc (MSB) grape prices. This is leading many in the industry to once again “view the proverbial glass as half full rather than half empty” when it comes to New Zealand wine, according to a new industry report. In its Wine Quarterly Q2: New Zealand wine – a glass half full, agribusiness banking specialist Rabobank says an unseasonably cool and in some parts rain-affected 2012 New Zealand wine harvest of 269,000 tonnes (down 18 per cent on 2011) has reduced the high stock levels that had fuelled a surge in bulk wine exports and private label brands in recent years. . .

Mobile wallets already in developing countries

A successful trial of NFC (Near Field Communications) technology has brought mobile wallets closer to New Zealand.

They are already operating in developing countries.

A Rabobank executive who called on our hosts when we were on a farmstay in Holland last month told us Rabo has introduced mobile banking technology in at least two developing African countries.

People can transfer money from their account to another or receive payments via their mobile phones. If they don’t have a bank account, a text message gives them a code which enables them to get money from a cash machine.

This system is only used for relatively small amounts because just like an ordinary wallet, electronic ones can be lost or stolen.

But being able to make transactions through their phones is making a huge difference to the lives and businesses of people who until now might have had to walk for a day or more to get to a bank.

I use credit cards or EFTPOS for bigger purchases but prefer cash for smaller ones. However, I’ve noticed a lot of people, especially younger ones, use cards for even tiny transactions.

Mobile wallets are another step towards a cashless society and one in which the developing world is leading the way.

Rural round-up

Few still hurting dairying – Gerald Piddock:

The bottom 10 per cent of dairy farmers is giving traction to the ‘dirty dairying’ slogan, according to DairyNZ chief executive Tim Mackle.

The industry has to aspire to 100 per cent compliance, but the reality is that there will be farmers who do not comply, he says.

Dr Mackle made his comments during a panel discussion about improving perceptions within the industry held at the South Island Dairy Event in Dunedin.

The industry had to remain profitable because that gave farmers options and drove sustainability, Dr Mackle said.

“The two go hand in hand. The minute we lose profitability, sustainability goes down the gurgler.” . . .

Farm goals acheived with monitoring:

Waikato farm consultant Brendan Brier believes lessons learned from the Waikato/Franklin Beef + Lamb New Zealand Monitor Farm are easily transferred to most sheep and beef operations.

“Monitor farms provide a valuable template for family farms wanting to instil greater structure and direction around the business and can be accessed by all farmers,” said Brier.

Mr Brier has led the Waikato/Franklin Beef + Lamb New Zealand Monitor Farm on behalf of the Waikato Innovation Park for the past three years. . .

Milk price recovery expected next year – Gerald Piddock:

Rabobank senior analyst Michael Harvey says he does not expect to see a recovery in milk prices until early next year because of high stockpiles.

That recovery might be reflected in the milk price later this year, he told the Dairy Event in Dunedin.

“The global economy’s going to be weak but certainly hopefully we’ll start to see a better picture by the end of this year,” he said. . . . 

NAIT arrival hiccups kept in check - Tim Fulton:

NAIT’s entry to saleyards probably went off with less fuss than the debut for primary and secondary tags a decade ago, says one of PGG Wrightson’s leaders.

PGW livestock general manager Nigel Thorpe dropped in on yards in Waikato and Bay of Plenty last week, one of many keeping an anxious watch over a historic moment for the country’s cattle trading and processing.

With evident relief Thorpe said the compulsory process of scanning, checking registrations, transferring data to software and on to the NAIT database “went without a motion really”. . .

Farm papers a hit in the city – Jamie Ball:

Much like the Slow Food Movement creeping its way across 150 countries since the 1980s, the Great Cafe Challenge could nail the zeitgeist of this decade.

  The popular initiative has just kicked off in Australia and Godzone is now following. The aim couldn’t be clearer: reconnect townies with the land by getting farming magazines and newspapers into cafes about the country. The understanding and appreciation of what goes in to produce the nation’s food is a subtle but vital cog in the agricultural wheel.

  As the Great Café Challenge’s Facebook page highlights, “No cafe in Australia would be possible without the farmers who grow the food and supply the milk. This is a challenge to every cafe owner across Australia to carry at least one weekly rural newspaper in their shop to help bridge the city-country divide.” . . .

 

 

Brrrrr

Sunday: Vejer de la Frontera - 33 degrees.

Monday: Granada – 38 degrees.

Tuesday: Almagro – 28 degrees.

Wednesday: Alcalá de Henares – 30 degrees.

Friday & Saturday: Bangkok – 35 degrees.

Sunday: Auckland - 13 degrees, Christchurch - 9 degrees, home - 6 degrees.

Monday: Brrrrrr.

The trip was prompted by an invitation for my farmer to attend Rabobank’s first Global Masterclass, a gathering of 50 farmers from 16 countries:

Berry Marttin, member of the Executive Board Rabobank and host of the event, invited farmers from developed, emerging and developing countries: “As the world’s leading specialist agribusiness bank we are committed to the development of the agricultural sector and keen to understand the whole supply chain, that starts at the farmers’ gate, from beginning to end. Questions like having to double food production and doing this in a sustainable way are not easy to answer. Bringing together 50 farmers from around the world allows us to really get to grips with this challenge and face it head on.”

We started our journey in England before crossing to Holland for a three-day farm-stay organised by Rabobank for masterclass participants and partners.

While my farmer was at the summit I went back to school in Spain to take some of the rust off my Spanish. He joined me there for the last few days in Spain and we broke the return journey with 36 hours in Bangkok.

A month is about our tolerance for travel and it was good to get home yesterday but it is a wee bit cooler than the temperatures we’ve been enjoying.

Some travellers’ tales and observations will follow in future posts.