Rural round-up

Feel good factor that comes from living with bees - Sally Rae:

Murray and Heidi Rixon get a real buzz from sharing their love of bees.

The couple have launched a business, offering a beehive rental and management service to clients with domestic gardens, lifestyle blocks or rural land.

It was a business they described as having a ”massive feel-good factor” as they provided a hands-on teaching environment and actively encouraged clients to get involved with their new residents.

Brought up in Mosgiel, Mr Rixon has returned to his roots after years away following an interesting career path; horticulture to aviculture and now apiculture.

Horticulture was his first profession and he worked at the Dunedin Botanic Garden for 10 years before moving to the United Kingdom in 1991. . .

Pesticides not to blame for bee deaths:

Europe’s decision to ban neonicotinoids is another example of politicians making decisions meant for regulators. Pesticides have been blamed for a decline in bee health despite a lack of scientific proof.

“Clear scientific evidence has taken a back-seat to a politically-based decision on regulation, which could mean the reduction of effective crop protection products in Europe,” said Graeme Peters, chief executive of Agcarm.

There is absolutely no evidence that neonicotinoids are harming New Zealand’s bee population. First introduced in 1992, neonicotinoids are thoroughly assessed before being approved for use by the Environmental Protection Authority.

Blaming pesticides is barking up the wrong tree. A multitude of factors are responsible for persistent bee mortality, including pests and parasites, microbial disease, inadequate diet, bee management practices and climate change. . .

Fonterra to cut 300 jobs, slashing costs to invest in growth strategy:

Fonterra Cooperative Group, which imposed a hiring freeze in February, may eliminate up to 300 jobs as it seeks annual cost savings of $65 million a year, adding to $60 million of cost cutting already targeted for 2013.

The review of support services affects workers at Fonterra’s corporate offices in New Zealand. It didn’t quantify the potential restructuring costs. The May Day announcement marks the biggest layoff at the dairy giant since it cut workers in 2006 with the closure of manufacturing plants.

“While we are investing in growth, we have to make sure our people are working on the right things and that we are spending our precious capital on the right priorities,” chief executive Theo Spierings said in a statement. Jobs would be eliminated by centralising services, reducing duplication and stripping out layers of management, he said. . .

No fish for you – Offsetting Behaviour:

If you’re a fisherman on Manitoba’s lakes, you can only sell your fish to the government’s monopsonist Freshwater Fish Marketing Corporation. I’ve heard different stories about its establishment: some stories had it that the FFMC was set up to protect small fishermen against big corporations who’d otherwise exploit them; others had it that the system was meant to encourage efficiency through centralised processing. Or maybe it was both of them.

It really isn’t working out very well for fishers based far from the processing plant. And it isn’t working out for fishers who have put in the yards to identify markets for fish that the FFMC has deemed to be of very low value. Fishers cannot sell some species of fish to the FFMC at any kind of profit, but they’re also forbidden from selling those fish to other willing buyers. And so the fish are left for the birds to eat. . . .

Farmers Beef Up Leadership Skills At Environmental Forum:

The first Beef + Lamb New Zealand Environmental Leadership Forum has been hailed as an outstanding success.

Twenty five sheep and beef farming leaders attended the B+LNZ -funded event, held in Wellington from April 16 to April 18.

The forum was facilitated by the New Zealand Farm Environment (NZFE) Trust, which has run a similar annual event for dairy farmers and also delivers the Ballance Farm Environment Awards.

Participants included past-winners of the Ballance Farm Environment Awards and B+LNZ Farmer Council members.

Simon Saunders, deputy chair of the NZFE Trust, says the forum was designed to equip farmers with the skills needed to become effective ambassadors for the sheep and beef industry.

“These farmers have already achieved a huge amount in terms of environmental leadership. So a key aim of the forum was to refresh their skills and give them the tools to work successfully with a range of community stakeholders to address environmental issues.” . . .

DCANZ Welcomes Establishment of Joint Government/Dairy Industry Working Group On Food Testing:

The Dairy Companies Association of New Zealand (DCANZ) today met with the Ministry of Primary Industries and agreed to develop appropriate engagement protocols across dairy companies and MPI where a food integrity issue comes to light.

DCANZ Chairman, Malcolm Bailey, said that the meeting was a positive step forward in strengthening closer ties between dairy companies and government to meet market information needs on food testing.“New Zealand has one of the most robust food safety response systems in the world. The detection of DCDs was not a food safety issue but demonstrated strong interest from markets for information on food testing,” said Bailey.

“Today MPI and DCANZ agreed to formalise coordination and communication protocols related to all future food testing incidents, to help meet market needs both in New Zealand and overseas.” . . .

 

 

Rural round-up

Concerns For Sheep and Beef Farmer Viability Show In
rural Confidence Survey:

Results at a Glance

• Half of sheep and beef farmers are concerned about their business viability

• Dairy farmers are the most optimistic of the sectors, driving some improvement in overall rural confidence

• One in three farmers on the North Island say their farm is severely impacted by drought

Half of New Zealand’s sheep and beef farmers are worried about their ongoing viability as the impact of drought and a sharp fall in lamb prices over the past year take their toll, the latest quarterly Rabobank Rural Confidence Survey has showed. . .

Fonterra Announces Management Changes:

Fonterra Co-operative Limited announced today senior management changes in its Asia Pacific Middle East Africa (APMEA) business unit, including the departure of the existing Managing Director APMEA and the appointment of a new Managing Director for Australia.

Fonterra CEO Theo Spierings said a new leadership team had now been confirmed for APMEA, effective June 1. It included a new Managing Director Australia, Judith Swales, who joins Fonterra after leading Heinz across Australasia and before that the Goodyear Dunlop Business in Australia.

“Judith has considerable experience in delivering business turnarounds across a number of industry sectors, with a great understanding of consumer, customer and operations which will be critical in our Australian business,” said Mr Spierings. . .

Farmers to learn about environmental best practice:

Federated Farmers is proudly promoting regional Field Days for the Ballance Farm Environment Supreme Award Winners. Details of these upcoming Field Days are below.

“What Ballance Farm Environment Supreme Award Winners showcase, is how farmers are responsibly using the environment,” says Bruce Wills Federated Farmers President.

“While they say you cannot teach an old dog new tricks, that saying does not hold with agriculture. Farmers devour information and use field days to learn better ways of doing things.

“In March, I was among 200 farmers at the Smedley Station Field Day in Hawke’s Bay. This gives you an idea as to how popular these Ballance Farm Environment Award Supreme Winner Field Days are. . .

Dairy Awards Drives Progress In Industry:

The New Zealand Dairy Industry Awards is succeeding in its goal of recognising excellence among farmers as they progress in the dairy industry.
 
Three of the 11 finalists in the 2013 New Zealand Sharemilker/Equity Farmer of the Year competition are past entrants and regional winners in the New Zealand Farm Manager of the Year contest.
 
National convenor Chris Keeping says it is an exciting development in the awards programme, which has run in its current format since 2006 when the sharemilker/equity farmer, farm manager and New Zealand Dairy Trainee of the Year competitions were brought together. . .

New Zealand Seafood Industry Welcomes the National Plan of Action – Seabird:

The New Zealand seafood industry welcomes the new National Plan of Action – Seabirds launched today by the Minister for Primary Industries, the Hon Nathan Guy.

“The Ministry for Primary Industries has involved many groups including industry and environmental NGOs, in developing the National Plan of Action. This collaborative approach has led to common-sense processes that will deliver results,” says Tim Pankhurst, Chief Executive of Seafood New Zealand.

“New Zealand is geographically a global centre for seabirds and the New Zealand industry is committed to maintaining its role as world leader in reducing interactions between seabirds and fishing. . .

Countdown to the Ultimate Rural Challenge:

The Grand Final of the 2013 ANZ Young Farmer Contest is just weeks away and the countdown is on. Tickets are still available for the different events, visit www.youngfarmers.co.nz for more details.

The Grand Final will take place between 16-18 May in Auckland at the Kumeu Showgrounds and SKYCITY, and there is sure to be something entertaining for all ages and interests.

The series of events kick off at 4.00pm, Thursday 16 May, with the Official Opening at Aotea Square. Here, spectators will be entertained with the first Head-to-Head Challenge and introduced to the seven Grand Finalists: Ian Douglas of Northern, Tim Van de Molen of Waikato/Bay of Plenty, Cam Brown of Taranaki/Manawatu, Aaron Passey of East Coast, Reuben Carter of Tasman, Matthew Bell of Aorangi, and Dean Rabbidge of Otago/Southland. . .

Karaka Million Payments Due Tuesday:

Payments for New Zealand Bloodstock’s $1 million Karaka Million– New Zealand’s richest race – are due next Tuesday 30 April.

Horses that were entered by the Entry Deadline of Wednesday 6 March have until 5pm (NZ time) on Tuesday 30 April to pay the Entry Fee of $1,750 + GST per nominated yearling in accordance with the Conditions of Entry.

Please note that any party who has not paid the nomination fee(s) by the deadline will remain liable for the entry fee but their yearling(s) will no longer be eligible for the Karaka Million 2YO or Karaka 3YO Mile. . .

Rural round-up

Drought breaking rain sparks race to prepare for winter:

Farmers are rejoicing that the drought breaking rain finally arrived, but hope winter can hold off for a few more weeks to maximise pasture growth and better insure their feed supplies until spring.

“We have heard from nearly all our provincial presidents that the rain has broken the drought in their areas and that grass is growing again,” Federated Farmers adverse events spokesperson Katie Milne says.

“Some areas had a bit too much rain, while others are still a bit dry, but overall the rain brought by last weekend’s subtropical trough was exactly what was needed, with grass growth returning to many areas. . .

Drought status likely to remain until September:

Recent rainfall has been welcomed by farmers but the problems created by the dry summer will be felt for some time, says Minister for Primary Industries Nathan Guy.

“The dry conditions may have ended in many parts of the country but there are still major challenges ahead. It will take time to build up enough grass cover to provide feed for winter.

“There’s no doubt the rain over the last week has been a real boost, especially for those in areas that have missed out before like the central North Island. . .

Prime Minister Attends Blessing for New Fonterra Plant:

Construction of Fonterra’s new $126 million UHT milk processing plant in Waitoa today took another step forward with the site’s blessing attended by Prime Minister John Key.

Fonterra’s Chief Executive Theo Spierings said the plant, which will be running from April 2014, will enable Fonterra to increase UHT production by 100 per cent over the next few years.

“The five new UHT lines will produce a range of products including UHT white milk and UHT cream for the foodservice sector, which is a part of our business that generates more than $1 billion in sales a year and this plant will allow us to meet the growing demand in Asia for these products,” said Mr Spierings. . .

New A2 formula ready for China – Christopher Adams:

NZX-listed alternative milk company A2 Corporation says the first consignment of its new infant formula brand will be shipped to the lucrative Chinese market next month, followed by distribution in New Zealand and Australian supermarkets soon after.

The company has appointed the China State Farms Holding Company Shanghai, a subsidiary of state-owned China National Agriculture Development Group Corp, as the exclusive Chinese distributor of its Platinum formula brand.

The formula will initially be sold in Beijing, Shanghai, Guangzhou, Tianjin and Chongqing before sales are progressively expanded to other major cities in mainland China, as well as Hong Kong and Macau, A2 says. . .

Outdoor workers shun sun protection- Tamara McLean:

The sun protection slogan Slip, Slop, Slap and Wrap is being dangerously ignored by two thirds of Kiwis working in the great outdoors, with farmers and builders among the worst culprits.

A University of Otago study of more than 1000 workers across nine outdoor occupations has revealed that sun smart messages are not getting through to those who spend their lives working outside.

Just one in three outdoor workers wear sunblock or a suitably protective hat while at work, despite being more at risk of sun damage than other people. . .

Last of founding vineyard empire goes on the market for sale:

A large landholding of what was once the family-owned and operated Nobilo wine empire west of Auckland has been placed on the market for sale.
The 7.49 hectare property bordering the township of Kumeu was once planted in white and red grapes, and was part of the huge landholding created by New Zealand wine legend Nikola ‘Nick’ Nobilo.

Nick Nobilo was born in Croatia and emigrated to New Zealand with his family in 1937 to settle in Kumeu. Nobilo came from a winemaking family which had been producing vintages for some 300 years. . .

Locally bred Habibi sold after winning 6th consecutive race:

New Zealand Derby winner Habibi has been sold to a United States buyer.

A winner of six of her nine races, Habibi was sold to Pennsylvania buyer George Strawbridge after finishing fourth in unsuitably heavy conditions in the Australian Oaks at Randwick last Saturday.

Her owner-breeders Peter and Heather Crofskey will keep a minority share in the filly for the rest of her racing career. . .

Gibbston Valley mountain bike resort soft opening:

Queenstown’s new Rabbit Ridge Bike Resort will have a ‘soft’ opening on April 27 with riding available on some of the newly constructed trails. Rider numbers are limited to invitation only to reduce traffic and enable trails to bed in.

Invited local bikers, bike shop owners and front line staff will get to try out the new trails for the first time this weekend (April 27/28) at the new bike ‘playground’ on 400 hectares of land adjacent to Queenstown’s award-winning Gibbston Valley Winery.

Locals eagerly anticipating the opening of the new resort will then be able to ride the trails on Free Locals Days scheduled for the first Saturday of every month, starting May 4. . .

Rural round-up

We need a dream – Dave Stanton:

My neighbour was saying farmers were once ranked alongside doctors, lawyers and accountants.

My dad used to shear the sheep and go off to town and buy a new car.

Fat chance of that these days. You can draft all your lambs and barely clear the seasonal financing.

We are still getting the same prices for beef that we were 20 years ago, when we started farming, and inflation has tripled the cost of things since then.

To borrow from Martin Luthur King, we need a dream.

A dream of a better future. . .

True cost sought for consolidation - Nigel Stirling:

The farmer-led group behind a renewed push for consolidation in the meat industry say its major players need to come clean on the true costs involved.

The Meat Industry Excellence Group is pushing for 80% of New Zealand’s red meat to be sold through a single company in an effort to boost recent poor returns.

Alliance Group chairman Owen Poole has put the cost of such a plan at $600 million. . .

Drought challenges still lie ahead:

 Minister for Primary Industries Nathan Guy says he is pleased with the way New Zealanders have rallied to help drought-affected communities, but challenging times still remain ahead.

“Scattered rain is forecast over the next week which will be welcomed, but on its own it won’t be enough to break the drought conditions. We still need plenty more rain to help grass growth before the colder weather settles in.

“However it’s encouraging to see a range of support available from not just the Government but also businesses and communities.

“Federated Farmers have run a series of ‘farming in drought’ field days and have been organising shipments of feed from the South Island to the North which have been gratefully received. . .

Top soil scientists gather:-

More than 150 soil scientists from around 30 countries will meet in Queenstown in April to discuss the ins and outs of testing soil.

They will also look at the environmental impacts of increased fertiliser use on soil carbon and the increasingly important role of soil testing in environmental stewardship both now and in the future.

The symposium, held every second year at different locations around the world, is being hosted in New Zealand for the first time in its 26-year history. . .

Fonterra to slash Australian brands to restore profitability:

(Business Desk) – Fonterra Cooperative Group plans to slash its consumer brands in Australia to restore profitability as competition intensifies for both milk supply and retail sales.

The company’s ANZ division, which produces consumer products and ingredients in Australia and New Zealand and runs the RD1 rural supplies chain, posted a 32 percent decline in normalised earnings before interest and tax in the first half to $98 million. Of that, EBIT from Australian consumer brands fell 31 percent while New Zealand consumer brand earnings were “slightly up.”

“There’s a new reality in Australia,” chief executive Theo Spierings told reporters on a conference call. . .

Northland farmers urged to register for DairyNZ Farmers’ Forum, 5 April:

DairyNZ’s national series of Farmers’ Forum events kicks off in Whangarei on Friday, 5 April.

The event is free to levy-paying farmers and their staff who are urged to register this week for the informative and practical seminars to be held at the ASB Leisure Centre from 9.30-2pm.

Each year the Farmers’ Forum provides a great opportunity for dairy farmers to see how their levy is invested and to learn about dairy industry research and development work.

Every second year the event is held in the regions where forum topics are customised based on locally relevant issues. . .

Once a day milking a hot topic at North Island DairyNZ Farmers’ Forums:

The benefits and costs of milking cows once a day when you’re short on feed will be the focus of one hot science topic scientists will be sharing with dairy farmers at its North Island DairyNZ Farmers’ Forum events during April and May.

DairyNZ kicks off its regional Farmer’s Forum events in Whangarei on 5 April. Two other North Island events are in Hawera on 18 April and Woodville on 28 May.

Extreme weather conditions, such as those we’re experiencing now but also flooding in late winter and early spring can create short and long term feed shortages. DairyNZ scientist Jane Kay said for many years farmers have used once-a-day milking as a means of alleviating nutritional stress on the cow. . .

Farmers, don’t be afraid to discuss: “Who gets the family farm?”

DairyNZ’s Farmers’ Forum event is coming to Hawera on 18 April. One of the most anticipated speakers at the event is Joan Baker, a succession planning expert.

Joan herself comes from a farming family and knows first-hand the intricacies that come with succession. She says it can be quite easy to organise all the money and the legalities surrounding successions, “It’s actually very difficult for people to face up to the need to plan for succession and to think about what they really want and to have the conversations with all of the people they need to have them with to make it happen.”

She acknowledges that the most difficult decisions are the emotional ones: “What’s very hard for people is to do the thinking and the talking that’s required to get them to the point of having a succession plan.” . .

Rural round-up

Commission updates Primary Production select committee on interest rate swaps investigation:

Commerce Commission Chairman Dr Mark Berry has today provided an update to the Primary Production select committee on the Commission’s progress in its interest rate swaps investigation.

In August 2012 the Commission began enquiring into whether interest rate swaps, a financial derivative product, were misleadingly marketed from 2005 onwards. The Commission has received 42 complaints since concerns were raised in the media.

“The investigation is at an early stage, but we are giving the issues full consideration. To date we have spent more than 1,000 staff hours on the investigation,” Dr Berry said.

The Commission is primarily considering whether the swaps were marketed in ways that may have misled customers as to their true risk, nature and suitability. . .

Minister welcomes King Salmon report:

The final report of the Board of Inquiry on New Zealand King Salmon’s application to develop new marine farms in the Marlborough Sounds was welcomed today by Minister of Conservation Dr Nick Smith.

“The Board has undertaken a thorough process being mindful of the need for New Zealand to conserve its natural resources with the need to grow exports, jobs and wealth,” Dr Smith says.

“The substantive decisions in the final report are consistent with the draft released last year, with the Board approving four new farms. These farms will occupy an area of just six hectares of surface water space out of a total of about 100,000 hectares in the Marlborough Sounds. They will enable King Salmon to grow its production from 7,500 to 15,000 tonnes per year, employ another 170 people and boost its annual export earnings by an extra $60m. . .

Good For Marlborough, Good For New Zealand:

The EPA Board of Inquiry’s (BOI) final determination will enable New Zealand King Salmon to deliver long-term benefits to the region, the community and the national economy.

Aquaculture New Zealand Chairman Peter Vitasovich said the four new salmon farms approved in the decision would create permanent full-time jobs and provide significant downstream benefits for associated industries while generating export earnings through the sustainable production of premium seafood.

“Four new working salmon farms in the Marlborough Sounds will provide valuable employment opportunities within the community, while also attracting skilled labour to the region, to work across the spectrum of production – from farming to processing to marketing and business roles,” Mr Vitasovich said. . .

Final decision on King Salmon released by EPA

The EPA’s Board of Inquiry has issued its final decision on the King Salmon applications today, approving four out of nine salmon farms in the Marlborough Sounds.

“An earlier draft decision announced that 5 of the 9 nine sites would be refused consent and approvals given for 4 sites. This final decision doesn’t change anything in that respect,” said EDS Chairman Gary Taylor.

“We acknowledge that the Board has declined consent for 5 sites but it has not gone far enough.

“The areas the industrial scale consented farms are to be located in are highly natural and in prominent locations in the iconic and internationally renowned Marlborough Sounds. . .

Fonterra And A-Ware Food Group Confirm European Partnership:

New Zealand-based Fonterra and Netherlands-based A-ware Food Group have given the green light to develop a new cheese plant and dairy ingredients plant in Heerenveen in the north of the Netherlands.

Fonterra CEO Theo Spierings and A-ware Food Group CEO Jan Anker have today confirmed the partnership would proceed and signed a final agreement.

Under the agreement a greenfields site will be developed where A-ware will operate a cheese plant and Fonterra will operate a dairy ingredients plant alongside it. Cheese will be produced for A-ware’s customers in Europe and the whey and lactose produced will be processed into premium nutrition dairy ingredients for Fonterra’s global customer base. . .

Wools Of New Zealand Closes Capital Raise:

Wools of New Zealand has closed its capital raise with more than 700 applications for shares totalling approximately $6 million, representing approximately 14.5 million kilograms of annual strong wool production and a five-year marketing commitment.

As a 100% grower owned company, Wools of New Zealand is now positioned to drive its commercial, market-pull strategy, for the benefit of its shareholders.

Mark Shadbolt, chairman of Wools of New Zealand, said there had been a lot of late interest right up to the close of the offer. . .

NZ milk is safe – MPI, Fonterra

Ministry of Primary Industry Director-General Wayne McNee says there’s  confusion about the suspension of a pasture treatment, DCD, in New Zealand and what this means for the safety of New Zealand milk products.

“Use of DCD was suspended by its manufacturers because very small traces of residue were unexpectedly detected in New Zealand milk. DCD residues have been only found in some milk powder products and not in other dairy products such as butter and cheese.

“The detection of these small DCD residues poses no food safety risk. DCD itself is not poisonous,” Mr McNee says.

“DCD is not used directly in or on food in New Zealand and never has been. It is a product used on pastures to reduce greenhouse gas emissions and the leaching of nitrogen into waterways.

“DCD manufacturers have voluntarily suspended DCD because New Zealand’s international dairy customers expect New Zealand products to be residue-free, where there is no internationally accepted standard for residues for particular compounds. An international standard has yet to be agreed for DCD.

Mr McNee says the European Commission has set an acceptable daily intake for DCD, and based on the highest DCD residue that was detected in New Zealand milk products, a 60 kg person would have to drink more than 130 litres of liquid milk or consume some 60 kg of milk powder to reach the Commission’s limit for an acceptable daily intake, and considerably more to have any health effects.

The Ministry says there is only a small amount of dairy product potentially involved in this issue. DCD has been used by less than five percent of the country’s dairy farmers who applied it only twice a year. Each application leaves only traces of residue on the grass for no more than a few days. This means only very small numbers of New Zealand cows could have come into contact with DCD in very limited time frames.

“The chance of any residues of DCD being present in milk products processed now is minimal,” Mr McNee assures.

“There has been no use of DCD on New Zealand pastures since September 2012, and now that its use has been suspended, it is not possible that any New Zealand dairy produce currently in production will have DCD residues in it.”

There has been absolutely no restriction on dairy sales in New Zealand because of this suspension of DCD use on pasture.

DCD is not melamine. It is a different chemical and has none of the toxicity that melamine has.

Fonterra is also reassuring consumers our milk is safe:

Fonterra Co-operative Group Limited Chief Executive Theo Spierings has today reassured global customers that New Zealand dairy products are safe to consume.

“We know some of our customers and regulators have questions.

“We need to answer them, and that’s exactly what we are doing.

“We have strong science and we are providing assurances about the safety of our products.

Let’s keep it in perspective. Our testing has found only minute traces of DCD in samples of some of our products.

“It is important to remember that the minute traces detected were around 100 times lower than acceptable levels under European food safety limits.

“The Ministry of Primary Industries has confirmed that the minute traces pose no risk to human health.

“DCD has never at any point been a food safety issue – and if it had been, we would have been the first to speak out. Fonterra has one of the highest standard food supply chains in the world, and safety is part of our DNA.

“Since November we have been closely involved in a working group with the Government, the fertiliser companies, scientists and other dairy industry representatives gathering information, scientific opinion, and undertaking tests.

“The bottom line? Our products are safe. Customers can rest assured,” said Mr Spierings.

Those are the facts.

DCD was only found in some milk powder products, not in butter or cheese. It poses no food safety risk and it’s not poisonous.

But when it comes to food safety perception and emotion will trump facts.

Overseas media is a carrying the story and that will be enough to make some consumers wary, regardless of the facts.

The risk isn’t a food safety one. It’s a perception and marketing one and will be higher in countries where people can’t trust their government and businesses to tell them the truth.

Thanks Henry

Sir Heny van der Heyden stepped down as chair of Fonterra at the company’s AGM yesterday.

In his final address as chair he said that decisions made by farmer shareholders over the last decade have laid a strong and durable foundation for future growth:

 Taking stock of the changes within the industry over the past 10 -15 years, Sir Henry reflected on the important decisions that had strengthened Fonterra’s global position and returns to farmers.

 “It’s been one huge year after another and every one of them has made us stronger.

 “Together we’ve turned a collection of co-ops into the world’s top dairy exporter.

 “Creating Fonterra was a massive leap of faith on two levels.  We put our faith in a single integrated model – and we put our faith in it succeeding in an entirely deregulated market.  I can say without a shadow of a doubt that we pulled it off,” he said.

 “Fonterra came out of the blocks with $11.8 billion in assets.  We have grown that by 28 per cent to $15 billion.  That’s an outstanding performance.

 “We have done what we set out to do – grow farmers’ wealth ¬– and that’s come through in the value of your land, your shares and your earnings on the farm.”

 Sir Henry said global demand for dairy was the strongest it had ever been and was growing.

 “We need to use all of our muscle to push ahead and stay ahead.  But we will do it our way.  History has shown we are not afraid to make the big calls and make big changes without trading what is really important.”

 Chief Executive Theo Spierings  said since Fonterra’s formation in 2001, the Board and farmer shareholders had made the tough decisions required to position the Co-operative for growth.

“Establishing a Fair Value Share, achieving a transparent Milk Price, and introducing a dividend policy were the first three hurdles.  This year, Trading Among Farmers has delivered permanent share capital and a stable capital base.

 “Looking ahead, our business strategy is to grow volumes, grow value, generate more cash and improve our return on capital. To deliver on this, our future priorities are to:

• Shift more ingredients sales direct to customers and generate prices higher than Global Dairy Trade;
• Grow consumer and foodservice volumes;
• Align our costs and spending so we have the money to invest in areas that will generate growth; and
• Maintain a balance between environmental, economic and social sustainability.

“We have to start thinking differently about cost – and have already started doing this with our focus on reducing costs by $60 million this financial year.”

 Building a durable co-operative for the future meant Fonterra had to align spending, to make sure resources were directed to the right priorities, said Mr Spierings.

Sir Henry said  that when he took the job on, he wanted to make a difference and leave the Co-operative in a better position at the end of his tenure.

He has done that and its not only shareholders who have benefited from that.

Fonterra also makes a very significant contribution to New Zealand’s economy.

Its milk in schools programme is beginning to make a valuable contribution to education and health.

New chair John Wilson and the other incumbent director Nicola Shadbolt were re-elected to the board. The other vacancy was filled by former Shareholders’ Council chair Blue Read.

Fonterra’s milk in schools going nation wide

Fonterra’s trial of free milk in schools has been declared a success and will go nationwide next year.

Fonterra Chief Executive Theo Spierings said that after trialling the school milk programme in Northland, Fonterra had decided to roll out the programme to all 2000 primary schools throughout the country from next year. 

“We are totally committed to Fonterra Milk for Schools because we believe it will make a lasting difference to the health of New Zealand’s children. We want Kiwis to grow up drinking milk because it’s good for them and we are proud that this programme will give every primary school kid the chance to enjoy this nutritious product,” he said.
 
“New Zealand is the largest exporter of dairy products in the world, but at home, we’re not drinking as much milk as we used to. We want to be the dairy nutrition capital of the world and this starts with our kids.”

Research conducted by the University of Auckland has shown that children’s milk consumption in the Northland community, both at school and at home, has significantly increased since the pilot began.

“We know that getting Kiwis drinking more milk is not an overnight job but we are committed to helping improve the health of our kids,” said Mr Spierings.

The Co-operative made the announcement at an event co-hosted by its farmer shareholders and Hillpark Primary School in Manurewa. Mr Spierings said the success of this year’s Northland pilot had informed the decision to roll out nationally.

“The Northland pilot allowed us to test our systems. We learnt some valuable lessons and got great feedback from schools in the area. We can now move forward with confidence the programme is a winner.

“That said, this is a huge undertaking and we’ll be rolling out town by town.  We will continue with Northland, and launch in Southland in the first term next year, moving through the country during the year. We expect to have all schools who wish to take part on board by Term 1 2014.”

Manaia Health Chief Executive Chris Farrelly said the Northland community was privileged to trial the programme and was pleased that all schools would now get the opportunity.
 
“This move by New Zealand’s largest company to make this wonderful product available to our children is a significant game changer,” said Mr Farrelly.

“This is not just looking out for our kids today, but for the future. If we get it right for them now, then we’re going to get it right for our country.”

Principal of Hillpark Primary and New Zealand Principals’ Federation executive member, Gavin Beere, said the Federation fully supports Fonterra’s generous move.

“Schools play a key role in shaping children’s lifestyles. This includes their diets and attitudes towards nutrition, so it’s incredible to be able to offer this healthy product every school day.”

Fonterra Ambassador Richie McCaw said: “Over this past year I have been blown away by the passion of Fonterra’s people and the importance of the Co-operative’s farmer roots in everything it does.

“As a country, we should be extremely proud of this long-term commitment our New Zealand dairy farmers are making.”

Mr Spierings said the cost of the programme would depend on the number of schools participating – and this would not be known until the end of next year. 

“While we don’t know the exact number, we believe this is the largest single community investment by a New Zealand company and we are very proud to be making this investment in the health of our future generations.”

This is an opt-in scheme.

Schools which don’t want to have the milk won’t get it.

And while it’s being called free milk that means the schools and pupils don’t pay for it but Fonterra and ultimately its shareholders do.

However, if it improves the health and education of children and increases demand for milk then the social and financial dividends which more than justify the cost.

Fonterra’s final payout $6.40

Fonterra’s final payout for last season is $6.40 for fully shared up farmers.

The result includes a lower Farmgate Milk Price of $6.08 per kilogram of milksolids (kgMS), down from $7.60 last year reflecting lower commodity prices and a strong New Zealand dollar. A dividend of 32 cents per share has been announced, with retentions of 10 cents per share^[1].

 

Announcing the result, Chairman Sir Henry van der Heyden said the 2012 year had been one out of the box for dairy: “All around the world, we saw record dairy production which was mirrored back here in New Zealand.

 

“Global dairy demand held up reasonably well but this ocean of milk obviously impacted on global commodity prices, with the GlobalDairyTrade (GDT) index reaching its lowest value in 34 months in May.

 

“This contributed to a lower Farmgate Milk Price in the 2012 year, however, the impact of this decline on overall earnings for farmers has been eased a little by the much higher volumes of milk they produced.” 

 

Fonterra Chief Executive Theo Spierings said the Co-operative had posted a strong operating performance, with normalised earnings^[2] of NZ$1.03 billion for the 2012 year, up 2 per cent on the prior year.

 

Profit before tax was up 9 per cent on the prior year and net profit after tax was $624 million, down 19 per cent, largely due to tax credits of $202 million in the prior year not repeated in the current year. Excluding those credits, Fonterra’s net profit after tax improved by 10 per cent. 

 

Results highlights compared to the prior year include: 

• Record New Zealand milk flows, up 11 per cent to 1,493m kgMS in the current season
• 11 per cent increase in export volumes to 2.32 million metric tonnes (MT)
• Sales volumes increased 2 per cent to 3.94 million MT
• Flat revenues of $19.8 billion
• Higher operating cash flows of $1.4 billion, up $206 million
• Balance sheet strengthened with economic gearing ratio^[3] improving from 41.8 per cent to 39.1 per cent

There are no surprises there.

The outlook for the current season is volatile which reinforces the benefits of a co-operative which looks after the interests of suppliers.

 

 

Air NZ, Fonterra NZ’s most reputable organisations

Air New Zealand and Fonterra are the country’s top two Most reputable Organisations in the Hay Group/NZ Management magazine survey.

These and third placed Becca have been in the top three rankings for the last three years.

Companies were judged on corporate social responsibility, financial performance, implementation of strategic objectives, innovation, operational model, organisational structure, quality of product or service, senior leadership, stakeholder relationships and vision for the future.

Fonterra CEO Theo Spierings said the company’s good name must be worn into the very fabric of the organisation.

The value of the supplier owned co-operative model is evident in his message to staff and stakeholders:

. . . Fonterra must be a star performer in the world with a very strong connect to its grass roots.

He is also mindful that the reputations of  Fonterra and New Zealand are inextricably linked, Fonterra carries with it the stamp, or brand, of New Zealand he says “and we have to protect that country brand off-shore”. . .

Fonterra is an example of the prophet not appreciated in its own country. Its reputation overseas is far higher than the public perception of it here.

That it has been recognised as one of the country’s most reputable organisations for three years in a row shows that the less than enthusiastic domestic view of Fonterra isn’t well-founded.

But the company has work to do to ensure that the negative perception here catches up with the positive reality at home and abroad.

The story is accessible by subscription only. You can subscribe here.

Farmers vote for TAF

Fonterra shareholders have voted in favour of the company’s Trading Among Farmers plan.

The resolution for Trading Among Farmers received a 66.45% vote in support at Fonterra’s Special Meeting today, with two out of every three votes in favour.

Fonterra Chairman Sir Henry van der Heyden said the final vote on the share trading scheme attracted a record voter turnout.

“Our farmers have voted in big numbers, representing 85% of the Co-op’s milksolids. It is great to see so many taking part and having their say.

“Now we can move forward with this important evolution in our capital structure,” he said.

“We’ve spent six years talking about capital structure and it has been a rigorous debate and process. Our farmer shareholders have made a great contribution and the final version of Trading Among Farmers is all the richer because of that input.”

Sir Henry said TAF ensures a stable, permanent capital base for the Co-op and secures its future.

“We broke new ground with the formation of Fonterra and now we have the support from our farmer shareholders to refine that model and to break new ground again.

“As in the past, our farmer shareholders will now get behind the Co-op as we move forward. That’s what we all want, a united Fonterra.

“Over recent months we have used some of the best legal minds and co-operative specialists to stress test the concept and proposed trading system as part of the Due Diligence process. This final vote shows the majority agree that TAF is a fundamental pillar for the Co-op and the Board is absolutely unanimous in the belief that this is a lasting solution.”

Sir Henry said the Board listened to farmer shareholders’ concerns on preserving 100% farmer control and ownership and the integrity of the Farmgate Milk Price.

“We asked our farmers to vote on constitutional changes which would tighten limits on the size of the Fonterra Shareholders’ Fund, which is fundamental to 100% farmer control and ownership, and preserve the integrity of the Farmgate Milk Price. This resolution required a 75% vote and received 72.8% support.”

The Board will take this resolution back to the next annual meeting in November and will seek Shareholders’ Council support for this. In the interim, further planning on Trading Among Farmers will proceed within the parameters outlined in Resolution 2. Sir Henry said the Board believed this was in the best interests of the Co-op.

Fonterra Chief Executive Theo Spierings said the vote for TAF means Fonterra can be in charge of its own destiny.

“TAF will stop money washing in and out and give the Co-op a stable, permanent capital base to deliver on its Strategy Refresh.

“There is no co-operative anywhere around the world that is the same as Fonterra. TAF is completely unique as is the solution to eliminating redemption risk.

“We will now be able to implement our strategy and remain a relevant player in the global dairy industry. With overall demand for dairy growing, TAF will ensure that we are well placed to grow volumes and protect our position as the world’s leading dairy exporter.”

Sir Henry said the Board is still working towards a November launch for TAF but this will be dependent on market conditions. The pre-conditions in the Constitution still need to be finally satisfied, including the support of the Shareholders’ Council. The Board is confident that the necessary changes to the Dairy Industry Restructuring Act and the waivers are on track for this to happen. The Board will determine an exact launch date closer to the time.

The result of the vote is as follows:

• Resolution 1: Trading Among Farmers – 66.45%
• Resolution 2: Constitutional Changes for Trading Among Farmers – 72.8%
• Resolution 3: M. Beach Proposal – 20.2%
• Resolution 4: Upson Downs Limited Proposal – 23.26%

The result is in effect a vote of confidence in the board and management who have spent years designing a scheme to ensure supplier control while minimising redemption risk.

Fonterra forecast payout down 30c

Fonterra has revised its forecast payout for this season down by 30 cents to $6.45- $6.55 before rententions.

It’s also announced an opening forecast of $5.95 – $6.05 before retentions for next season.

The updated forecast Payout range for this year comprises a lower forecast Farmgate Milk Price of $6.05 per kgMS and a forecast Net Profit after Tax range of $570-720 million, equating to 40-50 cents per share.

As a consequence, Fonterra forecasts that a 100 per cent share-backed farmer will earn on average in the range $6.45-$6.55 per kgMS before retentions.

CEO Theo Spierings said the lower forecast Farmgate Milk Price was due to continued softening of commodity prices.

“The Global Dairy Trade trade weighted index has declined 20.3% since our last Farmgate Milk Price forecast of $6.35 in April,” said Mr Spierings.

“Dairy production levels in the US and Europe are high, while we continue to have higher-than-normal production levels from New Zealand. All this is occurring at a time of heightened uncertainties in global markets.”

Mr Spierings said with the softening of global commodity prices, operating earnings were expected to be marginally ahead of 2011.

The grapevine has been suggesting next season’s payout could have been as low as $4.50. the opening forecast of more than a dollar higher than that is a relief but nothing is certain and that will put pressure on budgets.

Free milk boosts punctuality

The introduction of Fonterra’s free milk in schools has had an unexpected consequence:

Manaia View School principal Leanne Otene in Whangarei says the pupils love their morning milk and it’s giving a good start to the day for those who didn’t eat breakfast.

But she says the surprise has been the immediate impact on lateness.

Mrs Otene says the milk is handed out at 9am, so pupils can sip it while they work on their literacy programme, and those who turn up late miss out.

She says since the milk regime started, children are getting to school on time.

Manai View is one of more than 100 schools in Northland where the free milk is being trialed.

Fonterra Co-operative announced the Fonterra Milk for Schools programme late last year and has since been working with Northland schools and communities to set up the pilot in a way that makes it as easy as possible for schools to participate.

The Co-op will monitor the pilot for the first three terms, with the intention of rolling it out nationwide in 2013, says Fonterra CEO Theo Spierings.

“Our motivation is to get more Kiwis drinking more milk, and this starts with our kids.

“Milk is without a doubt, one of the most nutritious foods there is and as leaders in dairy nutrition, we want to do what we can to make it more accessible to New Zealanders,” says Mr Spierings.

The positive resonse to the trail is not unexpected but improved punctuality is an unexpected bonus.

Fonterra opening second farm in China

Fonterra’s chair and chief executive Sir Henry van der Heyden and chief executive Theo Spierings will be in China next week to open the company’s second dairy farm there.

In a newsletter to shareholders they also mention that China’s imports of milk in February were 45% higher than at the same time last year. New Zealand supplied 95% of the whole milk powder and 75% of the skim milk powder.

The trade weighted price of milk increased 1.5% in this morning”s globalDairyTrade auction after three months of falling prices.

the price of anhydrous milk fat increased 8.3%; cheddar was up 13.2%; milk protein concentrate went up 13%; rennet casein was up 13.8%; skim milk powder was down .8% and the price of whole milk powder was down 2,8%.

Arla, a european co-operative, and Murray Goulburn, an Australian co-operative, sold milk in the auction for the first time. The addition of more industry players highlights the GDT’s key role in international dairy trade.

 

Fonterra drops forecast payout

Fonterra has just announced a revised payout forecast for the 2011/12 season of $6.75 – $6.85, for a fully shared up farmer, 15 cents down on the previous forecast.

The media release says:

The revised forecast comprises a lower Fonterra Farmgate Milk Price of $6.35 per kg milksolids, down from $6.50. The season’s Distributable Profit range forecast of NZD 570 – 720 million, equating to 40-50 cents per share remains unchanged.

Fonterra is required to consider its Farmgate Milk Price every quarter as a condition of the Dairy Industry Restructuring Act (DIRA).

Fonterra Chairman Sir Henry van der Heyden said the lower Farmgate Milk Price forecast reflected declining commodity prices and a stronger New Zealand dollar.

“We’ve had price declines in the five out of the last six Global Dairy Trade (GDT) trading events,” said Sir Henry. 

Overall, the GDT-Trade Weighted Index is down 5.7 per cent since December 13 2011 when the forecast of $6.50 per kgMS was announced.

Sir Henry said the New Zealand dollar’s continuing strength, higher levels of global milk production, and uncertainties in international markets led to the Board decision to lower the Fonterra Farmgate Milk Price forecast.

Chief Executive Theo Spierings said the trends were indicating for stronger global production continuing into 2012. 

 “While we have had a strong start to the season in New Zealand, with record milk flows, we are also seeing higher milk production levels in the US and Europe.

“International milk powder demand, however, currently appears robust which should help offset the impact of the stronger milk supply growth.

“In the past few weeks, global markets seem to be reacting to the ongoing economic difficulties in Greece, the potential for conflict in the Middle East and China’s reduced growth forecast. These events appear to be having a negative influence on most commodity prices.

“We think dairy commodity prices are likely to remain under some pressure through to mid-2012,” said Mr Spierings.

I blogged last week, wondering if the company was softening shareholders up for a drop in the forecast payout.

Falls in auction prices while small have been consistent, some of our competitors have increased production and the global economic situation is uncertain.

However,  this forecast payout is still above average.

Fonterra will announce its interim results and dividend on March 29th.

Fonterra putting milk back in schools

School milk was not one of the happy memories of my childhood.

A half pint was too much for me to drink at a time and it was usually warm. Besides, like most of my contemporaries we had plenty of milk at home.

Ample milk and adequate diets are no longer the norm for too many children and Fonterra CEO Theo Spierings has announced a plan to put it back in schools.

Mr Spierings says New Zealand has the potential to be the dairy nutrition capital of the world, and this should start at home with Kiwis drinking milk.

“When I took over this role I made a promise to take a fresh look at how we could make milk more accessible in New Zealand,” says Mr Spierings.

Milk is an important building block for good nutrition. We want Kiwi kids to grow up drinking milk because it is good for them.

We are looking to introduce a Fonterra Milk for Schools programme. We want all New Zealand primary school children to have access to dairy nutrition every school day. For some New Zealanders this initiative will bring back memories of the  Government programme which operated in New Zealand primary schools between 1937 and 1967. We’ll ensure this time that the milk is cold and tastes great.

The company is staring with a regional pilot for primary schools in Northland, covering 110 schools and 14,000 children, starting during the first term next year.

 It will be a voluntary programme for schools to opt into so we can get a fix on likely demand from schools for such a programme.   “We don’t want kids having to drink warm milk in summer like the old days, so we will look at installing refrigerators in schools, and also explore options for recycling the milk packaging,” Mr Spierings says.

Results from the Northland pilot will be monitored during the first three terms of the 2012 school year with the intention of progressing with a nationwide programme for the start of the new school year in 2013. Mr Spierings said Fonterra would welcome support from other partners for a nationwide programme, including the Government.

As a supplier and  shareholder in Fonterra I can see social, health, marketing and PR benefits from this scheme but it comes at a cost.

The company announced an increase in the forecast payout this week and even without that expected returns this year were reasonable. But what happens when the price of milk, and therefore returns to farmers, go down? Once the provision of  ”free” milk is established it will be difficult to take it away again.

I’m definitely not keen on the government getting involved in the provision of school milk, especially if it’s not being aimed at only those in genuine need. Its money would be better spent on initiatives which address the causes of ill-nourished children.

The company has been criticised for the high price of milk on the domestic market and is continuing to review it.

Our motivation is to have more New Zealanders drinking more milk because it is important for basic nutrition. To achieve this, we have to make it available and affordable.

In recent years we have seen a major lift in international dairy prices which effectively doubled in 18 months. This has pushed up the cost of milk prices locally and we have seen consumption decline, with New Zealanders drinking less milk.

Traditionally milk consumption in New Zealand has been increasing around 1-2 per cent per year but it is currently declining by a similar rate.

“We are exploring a range of options to turn around the consumption decline by making milk more consistently affordable and will report back in the first quarter of next year,” Mr Spierings says.

Fonterra will also trial milk sales in its RD1 rural supply stores.

Anchor is our flagship brand and it makes sense to have it available in the 64 RD1 rural stores around New Zealand which we now own 100 per cent. “Initially we will be focusing on smaller towns that don’t have supermarkets nearby. From here we can measure the demand and decide whether to roll this out further,” Mr Spierings says.

Customers of RD1 stores are predominantly farmers. But if the stores sell milk well below supermarket prices they will broaden their customer base and the competition will probably force supermarkets to reduce their mark-ups.

Rural round-up

Sights on NZ as dairy nutrition leader – Hugh Stringleman:

Fonterra can make New Zealand the “dairy nutrition capital of the world”, according to new chief executive Theo Spierings, when speaking just three days into his new job. Spierings was not talking milk volumes at his first news conference, but nutrition knowledge, research, university interactions and product innovation.

“We need to have an ambition to be ahead of the game in dairy nutrition, all of the time,” Spierings said, with typical Dutch determination.

Algae turns greedy for phospohorus from effluent:

MASSEY SCIENTISTS have been granted $745,000 over three years to develop technology of potentially huge benefit to dairying – the removal and recycling of phosphorous from effluent.  

Professor Andy Shilton, School of Engineering and Advanced Technology, and his team have the grant from the Marsden Fund managed by the Royal Society. The fund is designed to allow researchers to do ‘blue sky’, innovative, long term science in particular areas . . .

New look for MAF:

A unified and redesigned MAF will be strongly placed to support the success of New Zealand’s primary sectors, says MAF Director-General Wayne McNee.  

MAF today confirmed the detailed design of the new Ministry following the merger of MAF with the Ministry of Fisheries.

“The new Ministry will be the ‘gateway to government’ for the primary sector, with a clear vision of ‘Growing and Protecting New Zealand’,” McNee says . . .

Board bid brings skills set together – Sally Rae:

John Key inadvertently played a fairly major role in determining Grant Cochrane’s future.   

Although not from a farming family, Mr Cochrane always had an affinity with the land and, from a very early age, had a passion to go farming.   

In 1987, he saw a television programme that featured currency trading and Mr Key – long before the future prime minister had political aspirations – and decided currency trading      would be the quickest route to farm ownership . . .  

Competition hones eye for stock, way with words – Sally Rae:

For young South Canterbury farmer Thomas Gardner,  stock-judging competitions combine valuable public speaking skills with being able to handle stock.   

Mr Gardner (20) was among 13 young people who took part in a      recent junior stock-judging competition in Waimate. . .   

Believe it or not it’s a geep (or a shoat) – Sally Rae:

When Taieri farmer Graeme Wallace brought a mob of ewes    and lambs in for tailing this week, he thought the wool was    being pulled over his eyes.   

      “I thought, ‘What the hell is this? Is it a goat or is it a      lamb? … No, it’s a 50-50′.”   . . .

Zespri says kiwifruit industry will learn to live alonside PSA:

The kiwifruit marketer Zespri says the industry will learn to live alongside PSA.

PSA Innovation’s general manager David Tanner told a kiwifruit conference in Tauranga on Thursday that a programme to produce a new variety of the fruit, which is tolerant or resistant to PSA, has been stepped up.

He says in the short-term, the use of chemicals to protect the vines are buying the industry time . . .

B+LNZ schoalrship takes young Marton farmer to Mexico:

Marton farmer, Richard Morrison, has been awarded the Beef + Lamb New Zealand agricultural scholarship that will take him to the Five Nations Beef Alliance and Young Ranchers Programme being held in Mexico later this month.

Richard (32), was selected from a strong line-up of candidates vying for the chance to represent and promote New Zealand beef, as well as helping to foster international relations within the beef industry.

Rural sales volumes continue rising steadily:

Data released today by the Real Estate Institute of NZ (“REINZ”) shows there were 93 more sales (+56.7%) for the three months ended September 2011 than for the three months ended September 2010.  Overall, there were 257 farm sales in the three months to end of September 2011 compared with 164 sales in the three months to September 2010.  The number of sales fell by eight (-3.0%) in the three months to September 2011 compared to the three months ended August 2011.

The median price per hectare for all farms sold in the three months to September 2011 was $17,694 compared to $15,148 in the three months to August 2011 and $17,447 for the three months to September 2010. 

Farenheit 212 turns up heat for NZ wool – Peter Kerr:

The guys who presented some new wool innovation ideas last week in Christchurch and Auckland are an interesting bunch, with an extremely interesting business model. (More, generally, about some of these wool ideas in another blog – all participants have signed a non-disclosure-agreement).

Fahrenheit 212, formed by New Zealander Geoff Vuleta five years ago in New York, is the only company of its kind in the world he reckons. Sure, there’s many product development firms, coming up with new ideas for corporate clients . . .

Farms are getting bigger across Europe Paul at Business Blog:

The number of agricultural holdings across Europe fell by one fifth between 2003 and 2010, as the average size continued to increase, European Commission figures have revealed.

In 2010 there were just over 12m agricultural holdings in the EU-27, and a farmed area of 170m ha. While the number of holdings was down 20% on 2003, the area was just 2% lower, meaning the average size increased from 12ha to 14ha. . .

Farmers stressed by environmental rules:

A study into the health of dairy farmers shows environmental rules from regional councils, including those on water management, are a common cause of stress.

In the first year of a seven-year programme, AgResearch interviewed 500 dairy farmers to identify their main health issues.

It found 17% had experienced depression or anxiety and half did not seek help when they needed it.

IrrigationNZ rewards initiative:

Innovation, discovery and achievement making a positive contribution to irrigation and efficient water management are set to be rewarded by the industry’s national body.

Irrigation New Zealand, in association with Aqualinc, will open nominations this month for the second biennial “Innovation in Irrigation’award.

The award is an opportunity for the industry to showcase innovation, and IrrigationNZ’s way to recognise new invention, ideas, systems, or gadgets that are constantly coming out of the irrigation sector.  The award celebrates, encourages and promotes innovation and the benefit and impact irrigation provides to communities right throughout New Zealand . . .

Basking in the rising sun: unlocking our primary potential - William Rolleston:

It is my pleasure to speak to you on research priorities for agriculture and horticulture.

Before I begin to outline some thoughts that will be challenging at times, I first wish to make comment to you on the research priorities according to New Zealander of the year, Sir Paul Callaghan.  I quote:

“We are brilliantly successful at dairying, but sadly we cannot scale up this industry because of the risk of further environmental damage.”

What’s more, apparently, “our dairy industry exports milk powder, rather than developing new products. Our forestry industries send raw logs offshore and despite the past capacity to invest in processing, have shown no inclination to do so”

So there you have it.

We can all pack our bags, go back to our offices, send dismissal notices to our staff and report to Ministers, the scientific community and the public, that biologically, we are as good as we can ever possibly be . . .

Farm manager winner takes next step:

The 2011 New Zealand Farm Manager of the Year, Jason Halford, is now the proud owner of his own herd, sharemilking 280 cows at Opiki, Horowhenua.

“I was ready for the next step and I think sharemilking is a great sector to be in and owning cows is a big positive.”

Mr Halford is co-ordinating the 2012 dairy trainee of the year contest for the Manawatu Rangitikei Horowhenua regional competition, one of 12 regional competitions held nationwide by the New Zealand Dairy Industry Awards . . .

Shaping the dairy cow of the future:

Dairy farmers get a chance to shape the cow of the future at a national road show over the next month.

The 20 events from Kaitaia to Invercargill are for farmers to give feedback on the National Breeding Objective.

The dairy cow is the engine of the New Zealand dairy industry, with 4.4 million cows producing more than 1.4 billion kilograms of milksolids every year. The National Breeding Objective is to identify animals whose progeny will be the most efficient converters of feed into farmer profit, otherwise known as Breeding Worth (BW). . .

Fertiliser industry environmental initiatives:

The Fertiliser Quality Council (FQC) is pleased that the fertiliser industry is investing considerable amounts on research to lower our environmental footprint. It will be great for farmers and the environment.

The FQC congratulates Ballance Agri-Nutrients and the Ministry of Agriculture and Forestry’s Primary Growth Partnership for committing $32 million to support the research.

“At a time when margins are suffering, anything that will reduce a farmer’s inputs has to be good,” FQC chair, Neil Barton said. “In addition anything that we can do to preserve the environment is vital . . .

Rural round-up

Interest in merino born in childhood - Sally Rae:

Jayne Rive attributes her love of merino sheep to growing up on remote Halfway Bay Station.

She and her five siblings were all involved in daily station life, including working with sheep, on the property on the western shores of Lake Wakatipu . . .

Stock judge wins national title – Sally Rae:

Olivia Ross proved she has an eye for stock when she won the New Zealand Young Farmers national stock judging competition.

A member of Nightcaps Young Farmers Club, Miss Ross (23) works as a field consultant for Outgro Bio Agricultural Ltd . . .

Fitting milestone as CRT cracks $1b - Sally Rae:

Rural servicing co-operative CRT has cracked the billion-dollar mark – reporting turnover of $1.092 billion and an operating surplus of $8.4 million in the year to March 31.

That was up from a turnover of $801 million and an operating surplus of $5.1 million in the previous year. . .

Well managed systems key to dairy success – Mary Witsey:

The most profitable dairy farms in Southland are those which are well managed.

That was the message the province’s dairy farmers heard from Dairy New Zealand senior economist Matthew Newman, who was in the south last week conducting seminars.

Regardless of the size of the herd, or whether it was a low, medium or a high-input production system, the most profitable farms were those that made the best use of resources on offer, Mr Newman said . . .

Warning on dire state of apple industry – Peter Watson:

Nelson’s apple growers are in such a dire state the region risks not having a viable export industry in five years, leading local businessman John Palmer warns.

Speaking at a Nelson-Tasman Chamber of Commerce luncheon yesterday, he said it had got to the stage where many orchards were more valuable without their trees and would be “less of a cash drain growing grass than growing apples”. . .

New Fonterra boss wants positive impact – Hugh Stringleman:

A Canadian will hand over management of Fonterra to a Dutchman at the end of September, which indicates that the skills needed to run New Zealand’s biggest company are more readily found offshore.

Theo Spierings, aged 46, has been appointed by the Fonterra board as the new chief executive to take over from Andrew Ferrier, who has held the job for eight years . . .

Welcome end in sight for forced farm sales – Tony Chaston:

Is this just real estate spin or is rural real estate on the move again and can we expect modest price rises based on stronger product prices and profits?

As reported earlier from the June real estate figures, more farms are being sold than last year, but at values last seen in 2004. The banks have signaled their intention to lend more on profits and less on land value, so if product prices continue, we can expect more sales. . .

Better information needed on farm technology – RadioNZ:

Pastoral Agriculture Professor Jacqueline Rowarth of Massey University thinks farmers are not being well served by some of the new technology they’re being urged to adopt, to lift production.

Professor Rowarth, who spoke at an Agricultural & Horticultural outlook summit this week, says New Zealand farmers are doing a good job of taking up new ideas. She says that’s clear from statistics which show  agriculture is one of the few sectors that continues to grow.

Market knowledge the key - Debbie Gregory:

KNOWLEDGE about commodity prices and markets helps farmers future-proof their businesses, says ANZ National Bank agri-economist Con Williams.

Speaking to farmers and others involved in the rural industry in Gisborne this week, he said commodity prices across the board had peaked and would soften, but should remain at a relatively high level compared with prices seen in the past.

“It’s not so much the level they have got to, it’s the speed they have got there,” he said . . .

Hat tip: Interest.Co.NZ

Theo Spierings new Fonterra CEO

Fonterra has named its new CEO – Theo Spierings, a Dutchman with 25 years experience in the global dairy industry.

Fonterra chair Sir Henry van der Heyden said:

“Mr Spierings has a wealth of experience in managing dairy businesses across Asia, Latin America, Africa, the Middle East and Europe,” Sir Henry said.

“Most importantly, Mr Spierings has an in-built respect for the co-operative structure and for farmers and their commitment to co-operative principles. He is well recognised by his peers for his people leadership, delivery of results and strong strategic skills.”

This will resonate with Fonterra’s shareholders who are resolute in their determination to retain farmer control and the co-operative structure.

Mr Spierings was acting CEO of Royal Friesland Foods when he presided over all aspects of its complex and highly sensitive merger with Campina. He left the company shortly after completing the merger as, prior to the transaction, both parties had already agreed on an independent CEO to take the new entity forward.

Sir Henry said as well as a 25 year history in the global dairy industry, Mr Spierings had held a variety of general management, operations and supply chain and sales and marketing positions across a number of geographies.

Mr Spierings said the role of CEO for Fonterra was a great opportunity, working in the industry he loved.

“I am honoured to be invited to lead Fonterra into its second decade,” Mr Spierings said.

“The Fonterra Board, Andrew Ferrier and his team have established a strong foundation and my challenge is to build an even more successful global dairy co-operative.

Mr Spierings said he was familiar with both Fonterra and its key people and had great respect for the foresight New Zealand farmers had shown in creating Fonterra in the first place.

“A huge amount has been achieved in the past 10 years since Fonterra was established. Trading Among Farmers – the newly approved capital structure – is a good example. But what makes Fonterra really unique is its combination of low-cost pasture based farming and its status as the world’s largest milk processor.”

With the co-operative already performing strongly, Mr Spierings said it was clear that the challenge ahead was to add another layer of value across the business.

“I am used to working for farmers and I know they demand results. Being entrepreneurs themselves, they expect continuous improved performance of both their co-operative and through-out the value chain,” Mr Spierings said.

”I am acutely aware of Fonterra’s importance to the New Zealand economy and look forward to leading an organisation that has the potential to have such a positive impact on its home country. I thrive on the prospect of contributing to Fonterra’s continued success, which I know is of great importance to not only its farmers and employees, but to every New Zealander.”

Mr Spierings, aged 46, holds a Bachelor of Arts-degree in Food Technology/Biotechnology and a Masters in Business Administration. He is married with three children and currently lives in The Netherlands. He owns and runs his own company which focuses on corporate strategy and mergers and acquisitions in fast moving consumer goods.

The 2011 financial year would be a record one for Fonterra and announcing thre results will be one of Andrew Ferrier’s last duties with the co-operative before his successor takes over on September 26.