Rural round-up

November 17, 2014

Primary exports tipped to rise:

The Ministry for Primary Industries is forecasting an eight percent lift in primary export earnings in the next four years.

In its briefing for incoming ministers, MPI is projecting export values from agriculture and horticulture, fisheries and forestry to grow to $40.7 billion by 2018.

However, export earnings will have to grow at an average rate of more than five percent a year if they are to reach the government target of doubling the value of primary exports by 2025.

Despite China putting the brakes on milk powder imports, which has contributed to the current slide in dairy prices, the ministry is predicting dairy export revenue to lift from just over $18 billion to $18.4 in 2018, on the back of higher production. . .

More to farming than gumboots - Sally Rae:

A Teacher’s Day Out was held in Otago last week, organised by New Zealand Young Farmers’ Get Ahead programme.

It highlighted to secondary school teachers the vast range of opportunities the primary sector affords school-leavers. Agribusiness reporter Sally Rae went along on the bus trip.

Party lines and horses.

That’s what East Otago farmer Jim Lawson recalls during his early years on the sheep and beef farm, as he holds his smartphone in the sheep yards of the family property, Moana, while son Rob demonstrates weighing hoggets through an auto-drafter.

The 2336ha property, running 10,000 stock units, has been owned and operated by the Lawson family since 1950. . .

‘Appaws’ for animal welfare research contribution:

A Massey University scientist has been honoured for his work in refining the ways animals are used in scientific research, testing and teaching.

Professor David Mellor was presented with this year’s National Animal Ethics Advisory Committee (NAEAC) Three Rs Award.

NAEAC deputy chair Dr Peter Larsen said the award covered all areas of animal welfare research.

“The concept of the Three Rs, from which the award takes its name, is to replace and reduce the number of animals used in research, testing and teaching, and refine experimental techniques to minimise pain or distress.  . .

Farm sector singled out by WorkSafe:

The agricultural sector is being targeted by WorkSafe New Zealand over its high accident rates.

In its briefing to its new Minister Michael Woodhouse, WorkSafe said agriculture was one of the worst industries in terms of health and safety.

The report said in 2013, there were 20 deaths from workplace accidents in agriculture – more than the forestry, construction, and manufacturing sectors combined.

Half of those deaths were from quad-bike or tractor accidents.

WorkSafe said there was a poor understanding of risk in the industry and it will be launching a targeted initiative next year to address the issues. . .

Red meat sector welcomes conclusion of Korea FTA

The recently-concluded free trade agreement (FTA) with Korea will provide a major boost for New Zealand’s red meat exports there, according to the chairmen of Beef + Lamb New Zealand (B+LNZ) and the Meat Industry Association (MIA).

Earlier today, Prime Minister John Key and Korean President Park Geun-hye announced that the FTA negotiation had been concluded.

“This deal is great news for sheep and beef farmers and meat exporters,” said Beef + Lamb New Zealand Chairman James Parsons. . .

Business Forum welcomes NZ Korea FTA:

The New Zealand International Business Forum (NZIBF) welcomes the much anticipated conclusion of the New Zealand Korea Free Trade Agreement.

“This negotiation has been a marathon and we are delighted Trade Minister Groser and his officials have got it over the line” said NZIBF Chairman Sir Graeme Harrison.

Korea is a significant trading partner for New Zealand and a number of key export sectors including dairy, meat and kiwifruit stood to be severely disadvantaged if New Zealand could not achieve a more level playing field with its key competitors in the Korean market notably Australia, Canada, the European Union and the United States all of whom have already concluded FTAs. . .

Zespri welcomes Free Trade Agreement with South Korea:

Zespri welcomes the announcement of the Free Trade Agreement (FTA) deal with South Korea and the significant outcome that has been achieved for the kiwifruit industry.

Over the past year, Zespri growers have paid approximately $20 million in tariffs into this important market.

“It is hugely satisfying that the industry can focus on building sales in the South Korean market, which will benefit both New Zealand and South Korean growers, as well as South Korean consumers,” says Zespri Chief Executive, Lain Jager. . .

Wine Industry Welcomes South Korea Trade Deal:

New Zealand Winegrowers has warmly welcomed the announcement of the conclusion of the free trade agreement between New Zealand and the Republic of Korea.

Commenting on the news, NZ Winegrowers CEO Philip Gregan said ‘The negotiators have achieved a great outcome for the wine industry. Tariff free access into South Korea at the time the agreement comes into force represents a significant boost to our export ambitions in one of the key Asian markets.’ . .

 

 

Yealands named World Champion at the International Green Apple Environment Awards:

Yealands Family Wines has claimed the overall World Champion title at the International Green Apple Environment Awards held in London last night. The prestigious ceremony was held at the House of Commons, in the Palace of Westminster and celebrates environmental best practice.

Yealands Family Wines competed against more than 500 global nominations from a range of industries, taking home the Australasia Gold Award, as well as the supreme “World Champion 2014” title.

Now in their 20th year, the Green Apple Awards have become established as the UK’s major recognition for environmental endeavour among companies, councils, communities and countries. The awards are organised by The Green Organisation, an independent, non-political, non-activist, non-profit environment group dedicated to recognising, rewarding and promoting environmental best practice around the world. . . .


Rural round-up

January 10, 2014

ANZCO opens new food laboratory – Alan Williams:

ANZCO Foods has set up a new innovation centre at Lincoln University to focus on new food developments.

Its research team was already working on new developments, with more in the pipeline, the company’s Food and Solutions business chief executive Rennie Davidson said.

The centre was opened last month by ANZCO chairman Sir Graeme Harrison, who said it was part of an $87 million project to generate more value from beef carcases.

The FoodPlus project is a joint venture between ANZCO and the Government’s Primary Growth Partnership (PGP) programme. . .

Kiwis set to shine in New York - Alan Williams:

Promotion and sales are the focus for two top New Zealand knitting yarn marketers later this week at the Vogue Knit Live fair in New York.

Marnie Kelly and Bev Forrester will be showing their yarns in front of thousands of knitters from all over the United States and many others from round the world, in the heart of Times Square.

They sell to American and Canadian tourists in NZ and to customers online, and now they want to use the fair to attract retailers who can provide them with a bigger market. . .

Sizzling summer brings boats into play -

SIZZLING, dry conditions in Queensland mean the prospect of feed grain being brought around from South Australia to Brisbane to boat becomes ever more likely.

Once considered fanciful, analysts now suggest the economics of bringing feed grain in from southern areas is now a strong possibility.

Lloyd George, AgScientia, said with the planting window for sorghum in southern Queensland rapidly closing and largely inelastic demand, end-users were casting their net ever further afield to source stocks. . .

ACCC has concerns over Murray Goulburn’s takeover of WCB –  Tim Binsted and Jared Lynch:

The competition regulator has cast doubts over Murray Goulburn’s claim that its acquisition of Warrnambool Cheese & Butter will yield benefits to the public and re-establish Australian dairy’s global competitiveness.

Murray Goulburn is locked in a fierce $500 million-plus takeover battle for control of WCB with Canadian dairy company Saputo.

Murray Goulburn must convince the Australian Competition Tribunal that the public benefits of its acquisition of WCB outweigh anti-competitive concerns or its bid is finished.

In an issues paper made public on Tuesday, the Australian Competition and Consumer Commission – which is helping the tribunal – rejected Murray Goulburn’s claim that its takeover of WCB would cause no significant lessening of competition. . . .

Food campaigners target Oxford Farming Conference – Johann Tasker:

Campaigners have called on the Oxford Farming Conference to recognise the contribution of small-scale farmers and food producers.

Members of the Land Workers’ Alliance protested outside the conference venue as delegates arrived at the Oxford Examination Rooms on Tuesday (7 January).

The alliance – members of the international peasant movement La Via Campesina – is a group which campaigs for the rights of small producers and a better food system. . .

 Musterer injured after horse collapses - Murray Robertson:

A CASUAL musterer on a farm at Rere was flown to hospital yesterday morning when the horse he was riding died underneath him as they descended a steep hillside.

Emergency services were alerted at about 11am.

The 69-year-old horseman suffered neck, head and facial injuries in the mishap. He was flown to Waikato Hospital yesterday afternoon after being assessed at Gisborne Hospital’s emergency department. . .

Manning the panic station - Tim Fulton:

It was just on five minutes to six in the half light of the morning when a cry rang out.

My wife’s urgent tone was comparable to the fright of a burglar in the living room: “Tim, Tim…the sheep are in the garden.”

Our sheep – a modest tally of four ewes and five lambs – make a mockery of our attempt at fencing.

The artificial barriers between yard and garden grow ever higher but still the mini flock tests weak links in the wire. . .


Rural round-up

December 9, 2013

Alliance targets increased lamb exports to Iraq – Hannah McLeod:

Alliance Group plans to increase exports to the Middle East.

The company has just completed its first year exporting directly to Iraq, supplying Pure South lamb to hotels, restaurants and catering companies.

Group general marketing manager Murray Brown said yesterday Alliance provided more than 1000 tonnes of red meat to the Middle Eastern country this year.

They hoped to increase their presence in the Iraq market by introducing a wider product range, and doing more promotional work. . .

Meat exporter turns loss into profit -

Meat exporter ANZCO Foods has turned around its last-season loss to record a post-tax profit of $12.2 million for the year to September

The result comes from total revenue of nearly $1.3 billion.

It is an improvement on the $19.1m deficit during a difficult 2011-12 season for red-meat trading and the company says its books are in a healthy position.

ANZCO was begun by Sir Graeme Harrison, who is company chairman, and is owned by three shareholder groups led by Japanese company Itoham Foods . . .

Progeny test helps Perendale breeding – Sally Rae:

Warren Ayers believes Perendale New Zealand’s progeny test will lead to the betterment of the breed.

Now in its fourth year, the test has been extended, with facial eczema and maternal traits, including body condition scoring and ewe longevity, added to the measurements.

Guided by a Perendale genetics group, the society is working with AgResearch and Ovita, with Beef and Lamb New Zealand investment.

Mr Ayers has taken over as host farm for the South Island portion of the progeny test, while a property at Tutira in Hawkes Bay is also involved. . .

Outlook fine for merinos – Sally Rae:

Mark Ferguson may be trying to help provide the perfect sheep – but he also reckons he has the perfect job.

Dr Ferguson is an Australian-born geneticist specialising in fine wool sheep who moved from Western Australia to Christchurch last year to join the New Zealand Merino Company.

He is leading NZM’s production science project, an initiative that aims to unlock the potential of ”the perfect sheep” – one that was healthy, fertile and high-producing, with high-quality meat and wool fit for high-value markets. . .

Survey looks at whitebaiting culture- Yvonne OHara:

Whitebaiting is quintessential Southland and part of the culture, like deer hunting, Environment Southland’s science technical adviser Dr Andy Hicks says.

He sent out a questionnaire in August to about 600 registered holders of whitebait stands in the lower Mataura and upper Aparima areas, to find out their opinions on their whitebaiting experiences.

About half of the respondents (54.5%) of the survey wanted to see more whitebait and better water quality, while about 23% thought there was no need for any change. About three-quarters (73%) of the 100 respondents said they were happy with their experience. However, 20% said they were not. . .

Fonterra finds cause of milk contamination:

Fonterra has completed its inquiry into an October incident in which 150,000 litres of milk in 14 tankers was contaminated with suspected mining waste at its Eltham Plant in Taranaki.

The milk was contaminated with mud and gravel and was disposed of at an Eltham waste plant.

Fonterra’s lower North Island regional manager Scott Walls says the company now knows what happened and has made changes so it can’t happen again.

He says a contractor had accidentally connected a trailer that was not intended to transport food products to a truck unit. . .


Rural round-up

December 7, 2013

Lochinver set for record price – Stephen Bell:

Lochinver Station on the Napier-Taupo Road is expected to set a New Zealand farm price record of more than $70 million.

Though bigger farms have been sold in the South Island Lochinver is the most productive rural property ever put up for sale in NZ, Bayleys managing director Mike Bayley said.

The land was waste and scrub when Sir William Stevenson bought it in 1958.

It is now being sold as Stevenson Group, one of the country’s biggest privately-owned companies, rebalances its investment portfolio to exclude farming, chief executive Mark Franklin said. . . .

Trade deals coming thick and fast – Alan Barber:

The TPP may not be happening as soon as expected, but free trade agreements with individual markets, Chinese Taipei and Peru, will come into effect, some aspects immediately, and provide more immediate rewards for our exporters.

Although multinational trade negotiations make more dramatic headlines, history suggests that they have a similar gestation period to an elephant, in fact quite a bit longer in the case of WTO rounds. The TPP looks as if it will follow a similar course because of the USA’s demands about trade partners’ internal arrangements, like Pharmac, and farmer lobbies in countries like Japan and South Korea. This makes it extremely difficult to conclude a binding agreement that meets the requirements of all the countries participating in the negotiations.

Unilateral trade agreements are not as highly regarded or sought after, but they are an essential part of international trade and, for New Zealand with its high trade dependency, very important to our future prosperity. . .

Police fear poaching fatality – Neil Ratley:

Farm workers and their houses are being caught in the spotlights of poachers, and southern police fear someone will be killed unless the illegal practice is stopped.

Constable Steve Winsloe of Winton said police and farmers were taking a collaborative approach to the problem to prevent a potential tragedy.

Landowners had had enough and were working with police to prevent poaching and other rural crime, he said.

“Farmers are getting caught in the spotlights when they are out working after dark. It just takes one poacher to see a glint of an eye that may not be an animal and they pull the trigger” he said.

“The last thing police want is a fatal shooting.” . . .

ANZCO bounces back into profit - Alan Williams:

ANZCO Foods has released early its trading result – a pre-tax profit of $12.6 million – in response to what it says are rumours about its financial strength.

The company was not only profitable in the year ended September 30 but increased its operating cashflow and equity ratio on a year earlier.

Revenue increased to $1.28 billion, from $1.21b previously.

It will also pay a dividend to shareholders, as it has done every year since the shareholding structure was put in place in 2001, chairman Sir Graeme Harrison said. . . .

Alliance operations on move - Collette Devlin:

The Alliance Group is in the process of transferring beef rendering operations to its new $25 million rendering plant at Lorneville in Invercargill.

Alliance Group chief executive Grant Cuff said the company started moving operations from the Mataura beef plant about a week ago.

It was also clearing out the rendering plant at Makarewa, where lamb slinks processing finished about a month ago, he said.

Alliance Group is consolidating its southern rendering operations at the new Lorneville plant to improve productivity. . . .

Flood of interest in storage dam idea- Matthew Littlewood:

The burgeoning Rangitata South Irrigation Scheme in South Canterbury has led to a rush of applications for water storage dams.

Environment Canterbury’s consents spokeswoman confirmed that none of the 21 applications within the Arundel-based scheme’s 16,000 hectare “command area” were declined, because all of them fitted within its notified Land and Water Regional Plan.

“To clarify – these are off-channel storage dams (no waterways were dammed) and these include four certificates of compliance (where a dam met the permitted activity requirements and no consent was required),” she said.

The capacity of the storage dams ranged from 8000 to 210,000 cubic metres. . . .


Kingi SmilerAgribusiness person of year

November 2, 2013

Prominent Maori businessman Kingi Smiler, responsible for some breakthrough developments in Maori agri-business, has been named Agribusiness Person of the Year by Federated Farmers.

He joins an elite list that includes Dr John Penno (Synlait), Sir Graeme Harrison (ANZCO), Andrew Ferrier (Fonterra) and Craig Hickson (Progressive Meats).

Kingi’s greatest accomplishment to date, beyond completing 20 Ironman events and achieving an international age-group ranking, was to pull together the support base and drive the establishment of Miraka Limited, the largest collaborative new venture undertaken in the Maori agrarian sector, indeed the entire Maori economy over the past five years.

Miraka’s state-of-the-art milk powder production facility, which draws on geothermal energy, is based at Mokai northwest of Taupo. It cost $90 million to build and opened in 2011, achieving profitability in year one.

Kingi is chair of the Board of Miraka, and is also chair of Wairarapa Moana Incorporation, who with Tuaropaki Trust are the cornerstone shareholders of Miraka. WMI manages 12 dairy units and operates 10,000 cows which produce 4 million kgs of milk solids a year and is the biggest single supplier to Miraka (the Maori word for milk).

Miraka has been the culmination of more than 10 years effort on Kingi’s behalf to lift the performance of the Maori agri-business sector. He has taken a key leadership role in this, fronting a series of initiatives like the Tairawhiti Land Development Trust which combined with the Ahuwhenua Trophy Maori Excellence in Farming Competition have seen the sector make some significant economic gains. The Ahuwhenua Trophy Competition is now considered the premier calendar event in the sector.

A former partner in Ernst & Young specialising in business and corporate restructuring, Kingi is a professional director. He is also on the board of Mangatu Blocks, one of the largest Maori meat producers and owner of Integrated Foods which processes and exports internationally.

A supporter and member of the Federation of Maori Authorities since 1987 Kingi was also instrumental in achieving the change in ending the leases in perpetuity over major Maori land blocks which was a historical milestone.

Federation CEO TeHoripo Karaitiana, who sits with Kingi on the WMI board, said the award was due recognition for a man whose vision, energy and leadership has had a transformational effect in Maori agribusiness and beyond.

“Kingi is not a man who seeks this type of recognition but it is simply impossible to ignore the extraordinary impact the initiatives that he has lent his energy to have had on the Maori agri-business sector,” he said. “For those that have worked with him, and I count myself lucky to have been one of them, you cannot help but appreciate his commercial astuteness and highly effective leadership style. He brings the same determination and discipline to his business activities that he does to his sporting pursuits.”

Kingi, whose whakapapa connections are to Ngati Kahungunu, Te Aitanga a Mahaki, Te Atiawa, Whakatohea and Tuhoe completed his first Taupo Ironman in 1997 and is now in the elite club of those that have completed 10 or more in Taupo. He also competes internationally and has achieved a very respectable ranking at masters’ level.

“The challenge of doing something that pushes your mind and body to its limit is what keeps me motivated,” Kingi said. “The Ironman offers no mercy and preparing to any eventuality – physically, mentally and weather-wise – is key to completing the race.”

He applies the same approach when considering business propositions and before embarking on new ventures, which have marked his greatest accomplishments to date.

Federated farmers Chief Executive officer Conor English presented the trophy to Mr Smiler at the FOMA annual conference being held in Hastings. Mr English said, “Maori are huge contributors to agriculture, exports and our rural communities. This award recognises the drive, entrepreneurship and success that is being demonstrated right across Maori agriculture every day. Kingi Smiler is a true leader and a well deserving recipient of this prestigious award,” Mr English concluded.

Kingi Smiler named Agribusiness person of the year

#gigatownomaru applauds success.


Rural round-up

October 20, 2013

Access big hurdle in China – Tim Fulton:

ANZCO chairman Sir Graeme Harrison took the podium at the China Business Summit to argue the big problem for the meat industry in China was market access.

“New Zealand, like all countries supplying meat to China, is currently caught in the midst of a huge reform process, with food safety and related regulatory changes a very prominent part,” Harrison said.

The process of getting NZ meat plants approved by AQSIQ, China’s inspection agency, had been tortuous.

One ANZCO plant the Ministry for Primary Industries certified for export to China in 2009 was finally officially listed by AQSIQ four years later, he said. . .

Alliance profit but no dividend – Alan Williams:

Alliance Group made a profit in its latest year but not enough to allow pool distribution or dividend payment.

Alliance had achieved good cashflow and improved its equity ratio over the year, chairman Murray Taggart told shareholder farmers in Christchurch last week.

Alliance was cautious about markets for this season but there were several positives, Taggart said.

Detailed results of the latest year would be released soon. . .

Mega-merger of dairy industry was ‘miracle’ – Clive Lind:

It was a miracle the New Zealand dairy industry, with it’s strong-willed people and philosophical conflicts, completed the mega-merger that formed Fonterra, says the author of a new book.

Clive Lind, a Fairfax executive and former daily newspaper editor, spent three years researching and writing Till the Cows Came Home, to be published mid-next month.

Through the eyes of key industry people he interviewed, Lind tells the stories behind the multi-billion dollar industry – from 40 years ago when the single-seller Dairy Board was jolted into an urgent search for new markets when Britain started talks to enter the European Economic Community, to the emergence of added-value products, the economics-driven consolidation of more than 100 dairy companies into less than a handful, to the writing on the Beehive wall for the single-seller producer board and the efforts of the industry to find a structure solution for the future. . . .

Plant & Food Research innovation recognised:

Plant & Food Research had two reasons to celebrate at last nights New Zealand Innovators Awards held at Auckland Museum. The Crown Research Institute won the ‘Innovation in Environment and Agriculture’ category for research into insect sex pheromones, while the Biopolymer Network (BPN), a company jointly owned by Plant & Food Research, Scion and AgResearch, also won the ‘Innovation Excellence in Research’ category.

Sex pheromones, the natural chemicals released by the females of many insect species to attract mates, can be used to disrupt communication between insects, reducing their ability to identify mates and subsequently leading to a reduction in the population and reduced reliance on chemical controls. . .

Raw milk venture renews enthusiasm - Tony Benny:

Selling raw milk direct to the public has allowed a Canterbury farmer to get back to what he loves and that’s milking cows.

Geoff Rountree and his wife, Sandra, gave up dairy farming nine years ago because their hay-making business was growing and the days were not long enough to do everything.

“The contracting was building and it was getting a bit out of hand because the cows weren’t coming first, they were coming second and that shouldn’t have been the case,” he said.

The 105 cow herd went and the seven a side herringbone shed at Oxford was mothballed but Rountree missed being a dairy farmer. “Sandra always said to me, ‘stop pining to milk cows, go and milk someone else’s’.” . . .

Tweeting shows common concerns - Abby Brown:

A world-wide live Twitter discussion, #Agrichatworld, on issues facing farmers was a global first and revealed some recurring concerns, organiser Josien Kapma said.

Those concerns included climate, sustainability, ignorance of consumers, ever fewer farmers and complexity around farms.

The conversation also showed that farmers think the public have the wrong view of farmers’ values which is exacerbated by the rural/urban divide.

One of the questions asked by @AgrichatUK was what farmers wish the non-farming public knew about them.

The respondents’ tweets showed that farmers feel the urban/rural divide is alive and well and growing as the non-farming public tend to think as farmers only being about the bottom line and not also wanting to be environmentally friendly and sustainable. . .


NZ will win with TPP

October 14, 2013

Trade Minister Tim Groser said there was no need for concern about the content of the Trans Pacific Partnership:

“When this deal is done, I am certain that I and the Prime Minister will be able to come in from of New Zealanders and say: ‘this is virtually all upside’.”

“In relative terms, New Zealand will gain more than any country in TPP … the structure of these massive protective barriers that will come down will benefit New Zealand more than any country in this negotiation.” . . .

. . .  Mr Groser . . . said concerns about intellectual property and patents under the TPP had been “wildly exaggerated”.

He said the United States is the “most innovative country in the world” so their intellectual property law could hardly chill innovation.

New Zealanders would not be paying more for drugs as a result of TPP, Mr Groser said.

“I’ve said categorically Pharmac is not on the table.”

ANZCO Foods chair Sir Graeme Harrison said New Zealand has a lot more to gain from the TPP now Japan’s in the negotiations.

He said:

New Zealand could bring in $5 billion per year in our exports now Japan was involved in the Trans-Pacific Partnership (TPP), compared to $3.5 billion without Japan.

The increase in exports to Japan could mean a 2% gain in GDP, with many of the gains in the primary industries, he said. . .

He said Japan’s inclusion has made the TPP more worthwhile for the United States, which in turn will work in New Zealand’s favour.

“All of this comes together with two countries, the world’s first and third largest economy, both believing in a rules-based trading system, that are on our side, and we can have quite an influence in that process.”

Both were speaking on The Nation yesterday. You can watch the full interviews here.

New Zealand has a very small domestic market and we have one of the most open economies in the world.

We’ve already gone through the hard part of giving up protection and puts us ahead of most of the other countries which are negotiating the TPP.

We have a lot to gain and very little to lose from the successful completion of the TPP agreement.


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