Why is New Zealand’s retail milk so expensive? – Keith Woodford:
Visitors to New Zealand often ask me why our supermarket milk is so expensive compared to in their own countries. I tell them the answer is simple. First, we have little competition, with only two milk major processors (Fonterra and Goodman Fielder) and two major supermarket chains (Foodstuffs and Progressive). Also, unlike most other countries, the Government in New Zealand does tax food. Both answers are typically received with surprise.
I am sure it will also come as a surprise to many New Zealanders to hear they pay more for their milk than the British, the Australians, the Americans and even the Canadians. So let’s do some comparisons. . .
Smoke and mirrors of business as usual? – Allan Barber:
This season shows many of the normal characteristics of the red meat sector, but it’s getting harder than ever to unravel the complexities of an industry which epitomises Winston Churchill’s 1939 quip about Russia – a riddle wrapped in a mystery inside an enigma.
In conversation with several senior industry executives, it has been possible to establish for certain only three things: first, this season is a bit easier than last and quite a lot better than two years ago, second, the trend to dairy support away from sheep and beef has gained momentum, and lastly China is extremely helpful for exports of both species.
There are conflicting views about other current issues and events. Beef is either tougher or easier than sheepmeat depending on the region or point of view, capacity must come out, but whose capacity again depends on the perspective taken, and, while some are closer than others to see the possibility, nobody is willing to predict a disaster. . . .
From farm to the boardroom – Annette Scott:
Dawn Sangster is a grassroots farmer, an Alliance Group director and is committed to making a positive contribution to the red-meat sector. She talked to Annette Scott about her fascinating journey in the rural sector.
Maniototo farmer Dawn Sangster grew up on the family farm in Paerau, Central Otago.
She attended Waitaki Girls High before graduating from Lincoln University with a Bachelor of Agricultural Commerce degree in farm management. . .
Call for organic producers to unite – Alan Williams:
Southland farmer Craig Dowden reckons organic lamb producers can do better by teaming up and demanding a better price.
He wants them to decide on a fair minimum price and tell their processors that is a bottom line for supply.
Existing prices, providing typically a 20% premium over conventionally farmed lambs, weren’t enough, Dowden said.
The premium was needed to allow for reduced stocking rates, slower growth rates, and some stock-health issues involved in running a farm without some chemical treatments, he said. . .
TAF ‘a blueprint for the world’ – Tim Fuulton:
Fonterra’s Trading Among Farmers (TAF) scheme is being copied in Australia and the rest of the world is likely to follow, NZX head of capital markets Aaron Jenkins says.
Jenkins joined NZX last year from a role as Fonterra’s TAF general manager.
It is 16 months since the share-trade mechanism launched in a clamour of publicity.
Australian dairy co-operative Murray Goulburn’s proposed share-trade mechanism was virtually identical to Fonterra’s TAF, except the Australians wanted to raise money externally, Jenkins told a recent function hosted by Christchurch law firm Tavendale and Partners. . .
The health implications of A1 beta–casein relative to A2 beta-casein are controversial. At times the scientific debate can become clouded by the reality that milk is a commercial product. Conversion of all herds so as to replace A1 beta-casein with A2 beta-casein over one to two cow generations (4 – 12 years) is technically straight forward. Accordingly, the beta-casein issue can be presented as either a threat to, or an opportunity for, the mainstream industry, with elements of each perspective being valid.
The Key Science.
- All bovine beta-casein was originally of the A2 type. A1 beta-casein is now produced by a considerable proportion of cows that have European bloodlines. In contrast, goats, sheep, buffalo, camels and humans produce beta-casein of the A2 type. . .