Word of the day

August 27, 2014

Hwyl – a stirring feeling of emotional motivation and energy.


Labour tells truth

August 27, 2014

David Farrar has found a Labour MP telling the truth:

jobcuts

 

It’s not a parody and it’s certainly not positive.

It might be a SMOG – social media own goal – but given Labour’s anti-progress policies it’s also the truth.


Party and candidate lists

August 27, 2014

The Electoral Commission has released the party and candidate lists for next month’s election.

The registered parties seeking the party vote are:

ACT New Zealand

Aotearoa Legalise Cannabis Party

Ban1080

Conservative

Democrats for Social Credit

Focus New Zealand

Green Party

Internet MANA

Labour Party

Māori Party

National Party

New Zealand First Party

NZ Independent Coalition

The Civilian Party

United Future

13 registered political parties contested the general election in 2011.

Candidates

A total of 554 candidates (electorate and list) are standing in this year’s election. This compares with 544 candidates in the 2011 election.

71 candidates are on the party list only and 114 are standing as electorate candidates only.  38 electorate candidates are standing as independents or representing unregistered parties (only registered parties are eligible to contest the party vote).

The number of candidates standing both as an electorate candidate and on a party list is 369.

The electorates with the most candidates are Epsom and Tauranga with 11 and the electorate with the lowest number of candidates is Hauraki-Waikato with 3.

390 men and 164 women are standing in the 2014 General Election. In 2011 there were 397 men and 147 women standing.

The elections website www.elections.org.nz has full information by electorate including candidates, advance voting places and election day voting places at

www.elections.org.nz/events/2014-general-election/information-voters-who-when-and-where

The party lists are available at www.elections.org.nz/2014partylists

Party

Number of Candidates

List Candidates

Electorate Candidates

ACT New Zealand

44

41

39

Aotearoa Legalise Cannabis Party

13

13

10

Ban1080

9

9

5

Conservative

64

20

64

Democrats for Social Credit

35

35

30

Focus New Zealand

8

8

2

Green Party

60

59

57

Internet MANA (figures include Electorate Candidates standing for MANA Movement or Internet Party)

35

32

Internet Party – 15

MANA Movement – 18

Labour Party

85

64

71

Māori Party

27

24

24

National Party

75

75

64

New Zealand First Party

32

31

31

NZ Independent Coalition

10

10

4

The Civilian Party

8

8

0

United Future

11

11

11

Unregistered party and independent candidates

38

N/A

38

Total

554

440

483

To see the break-down of list and electorate candidates click on the link at the top of the page.

Does anyone know why only 65 candidates appear on the published list when a few parties have more than that number of candidates?


Rural round-up

August 27, 2014

$150 million boost for Rural Broadband Initiative:

National’s Communications and Information Technology spokeswoman, Amy Adams, today announced a re-elected National-led Government will establish a new $150 million fund to extend the Rural Broadband Initiative (RBI).

Ms Adams made the announcement in Greymouth with Prime Minister and National Party Leader John Key.

“The RBI is making an immense difference to the way our rural firms do business, the way our kids learn and the way our health services deliver to us as patients,” Ms Adams says.

“Already, nearly 250,000 households and businesses have access to faster broadband under the RBI. However, National wants to see more rural homes and businesses benefit from faster, more reliable internet. . .

New partnership a boost for sheep and beef farming:

Lincoln University officially launched its lower-North Island base for vocational training and demonstration in lamb and beef finishing systems at a function in the Rangitikei today.

The University, along with the newly-formed Lincoln-Westoe Trust, will operate the 400 hectare Westoe Farm north of Bulls as a training facility, offering land-based certificate programmes for students looking to enter into primary sector careers. The training will have a particular emphasis on sheep and beef farming, and a special focus on training youth from Te Rūnanga o Ngāti Apa.

Over time, the Westoe Farm will also be developed as a demonstration farm for the finishing of lambs and the raising and finishing of beef cattle. This demonstration activity will be underpinned by objective scientific measurement of the farm’s performance, including its environmental footprint. Demonstration activity will be supported by commercial sponsors. . . .

A1 beta-casein a threat to dairy industry – Keith Woodford:

Evidence that A1 beta-casein might be a human health issue has been available for more than 15 years. However, the mainstream dairy industry has always fought against the notion that it might be important.

Back in 2007, I wrote a book called ‘Devil in the Milk’ which brought together the evidence at that time. The mainstream industry and even some elements within the Government were not impressed. They made it clear that this was an issue which New Zealand did not need to air publicly. The industry, with considerable help from the Food Safety Authority, was largely successful in dousing the public concerns, leaving just a few little puffs of smoke to remind those who were watching carefully that the fire might not be totally out. . . .

Landcorp, keen user of Fonterra’s guaranteed milk price, looks to reduce dairy exposure – Jonathan Underhill:

(BusinessDesk) – Landcorp, New Zealand’s biggest corporate farmer, has been an enthusiastic participant in Fonterra Cooperative Group’s guaranteed milk price scheme as it reduces exposure to volatile dairy prices, while looking at ways to reduce the dominance of dairy in its portfolio.

The state-owned farmer’s milk revenue soared 70 percent to $129 million in the year ended June 30, contributing to a more-than doubling of operating profit to $30 million. It won’t see a similar benefit from dairy prices in the current year, given dairy prices have tumbled this year from their highs in February.

“We’re making sure we don’t get too reliant on dairy income so the more volatile dairy sector doesn’t become too dominant in the portfolio,” chief executive Steven Carden told BusinessDesk. Landcorp’s strategy includes exploring fixed-price contracts, hedging and greater cooperation with customers across both dairy and meat, he said. . . .

Country of origin law rejected – report:

The Meat Industry Association is supporting the finding by a World Trade Organisation disputes panel that has ruled against the United States over a country of origin meat labelling law.

Canada and Mexico, backed by New Zealand and Australia, amongst others, opposed a new US rule that requires more information on labels about the origins of beef, pork and other meats.

They regard the country of origin law as a potential trade restriction. . . .

Conservation grant supports bird recovery:

Conservation Minister Dr Nick Smith today announced Wildbase Recovery Community Trust is to receive a $90,000 grant from the Department of Conservation to put towards a new state-of-the-art rehabilitation facility for birds and wildlife.

“New Zealand’s most challenging conservation issue is the decline in our native bird populations. We need to raise public awareness of the threat from pests like rats, stoats and possums that kill 25 million native birds each year. We need facilities like Wildbase Recovery to improve public understanding of our special birds and save those birds that are injured and can be rehabilitated back into the wild,” Dr Smith says.

Wildbase Recovery Community Trust is a charitable trust formed in partnership with local iwi, Palmerston North City Council, Massey University, Rotary and the Department of Conservation for the sole purpose of building, operating and maintaining the community-funded Wildbase Recovery. . .

Benefits from dairy demonstration farm New Zealand wide:

 A new demonstration dairy farm in the Waikato has a key role in helping New Zealand achieve the Government’s target of doubling revenue from primary industries by 2025.

This was a consistent theme from speakers at the launch of the St Peter’s – Lincoln University Dairy Demonstration farm in Cambridge on Thursday 14 August. 

The Demonstration Dairy Farm has set its sights on being in the top 3% of farms in the region for both profitability and environmental performance.  The overall aim of the farm is to promote the sustainable development of profitable dairying, principally in the Waikato but also the greater North Island.  This will be achieved through the implementation of proven scientific research, best practice farming coupled with scientific monitoring of impacts in a collaborative environment with farmers. . .

Akarua Purchases Vineyards on Felton Road

Akarua is delighted to announce a major vineyard purchase with the acquisition of vineyards located in Felton Road and Lowburn finalised on Friday 22 August 2014.

Akarua, established in 1996 by Sir Clifford Skeggs is the largest family owned vineyard in Central Otago with single estate holdings in Cairnmuir Road Bannockburn, this recent purchase will significantly boost their total vineyard area to 100 hectares in Central Otago.

David Skeggs, Managing Director of the Skeggs Group said that that the company had been actively looking at purchasing developed vineyard in Central Otago for the last 2 years. . . .

New Zealand organic pioneers place farming unit up for sale:

A sizeable landholding which is part of one of New Zealand’s oldest organic farming operations has been placed on the market for sale.

The farms just north of Tolaga Bay on the East Coast and trading under the brand Kiwi Organics, have been run by the Parker family for more than 50 years – the last 23 of those under ‘certified organic’ branding. Owners Mike and Bridget Parker are former winners of the Heinz Watties Organic Farmer of the Year title.

Kiwi Organics farm and manufacture primary products for customers throughout the Pacific Rim – including Hong Kong, Taiwan, South Korea, Japan, Australia. The company’s products are Bio Gro Certified, USDA/NOP Certified, and EU Certified and Gluten Free. . .

 


Fonterra expands in NZ and proposes partnership in China

August 27, 2014

A newsletter to suppliers from Fonterra chair John Wilson announces plans to expand processing in New Zealand and the proposal for a new partnership in China:

Your Board has given approval to build a new high efficiency milk powder drier in the North Island and further increase milk processing capacity in the South Island to help meet global demand for dairy products.

This investment, totalling $555 million, will grow the Co-operative’s processing capability and allow for more flexibility to better optimise production.

New Zealand is our most important milk pool.  Our strategy is to increase earnings by driving more of your milk into higher value categories.  It’s all about turning the wheel from commodities to higher-margin products.

Key points on the new Lichfield drier:

  • Capable of processing up to 4.4. million litres per day
  • Similar in size to the world’s largest drier at Darfield which produces up to 30 metric tonnes of Whole Milk Powder per hour, and 700 metric tonnes per day
  • Will use the latest energy-efficient processing and water reuse technology.

Three plants will also be installed at our Edendale site in Southland.  Key points are:

  • Milk Protein Concentrate (MPC) plant which separates protein from skim milk and turns it into protein powder – capable of processing 1.1 million litres per day
  • Reverse Osmosis (RO) plant which will increase capacity on an existing drier by 300,000 litres per day
  • Anhydrous Milk Fat (AMF) plant capable of processing 550,000 litres of milk into cream per day

In total, the development of Edendale will increase capacity by 1.4 million in milk, and 550,000 litres of cream processing per day.

Global Partnership with Beingmate

We are establishing a global partnership with Beingmate, which is one of the leading infant food manufacturers in China.  Beingmate is already a long-standing customer – and is a well-established and respected company in China.

Our partnership will be the next milestone for our strategy, as it will increase the volume and value of our ingredients and branded infant products exported to China.

Together we will create a fully integrated global supply chain from the farm gate direct to China’s consumers, using Fonterra’s milk pools and manufacturing sites in New Zealand, Australia, and Europe.

This global supply chain will see more of our high quality dairy ingredients and our Anmum™ brand exported from here in New Zealand. It will see more high value paediatric products made in Australia for China at the Darnum plant – that is our second milk pool. And it includes a third milk pool in Europe where whey specialty ingredients will be manufactured at our new JV plant in the Netherlands, and through our alliance with Dairy Crest in the UK.

This partnership is about volume and value.  The value will come from accessing Beingmate’s extensive distribution and sales network in the infant formula market in China.  This market is today worth around NZ$18 billion – and is expected to be worth nearly NZ$33 billion by 2017.

This partnership will come together in two phases:

We are starting the process to issue a partial tender offer to gain up to a 20 per cent stake in Beingmate. Depending on the response to the tender offer, Fonterra’s total investment in the global partnership will be in the range of NZ$615 million (including proceeds from the JV in Australia), funded through debt.  

After gaining regulatory approvals and Fonterra satisfactorily completing the partial tender offer, Fonterra and Beingmate will set up a joint venture to purchase Fonterra’s Darnum plant in Australia and establish a distribution agreement to sell Fonterra’s Anmum brand in China.

The purpose of the proposed joint venture will be to manufacture nutritional powders, including infant formula and growing up milk powder at Darnum, for Beingmate as well as Fonterra.

Beingmate will own 51 per cent of the JV to satisfy Chinese regulatory requirements.

The JV will be governed by a Board, and Fonterra and Beingmate will each appoint two directors. 

We will manage Darnum’s operations, under a formal management agreement.  We will also supply raw milk to Darnum.

Summary

Today’s announcements are a major step forward in our strategy to be a globally relevant co-operative so that we can will deliver increased returns to our farmers – through both the Milk Price and dividend – during the ups and downs of global dairy price volatility.  We are financing the increases to processing capacity and our partnership with Beingmate from a solid balance sheet position, and a strong gearing position will be maintained.  These investments are intended strengthen returns by:

  • Turning more New Zealand milk into higher value products  
  • Optimising the use of our Co-operative’s global assets  
  • Investing in capacity and flexibility of our New Zealand assets  
  • Building a fully integrated global supply chain. . . .

This is very good news for the company and the communities where it is expanding processing because of the jobs that will be created.

The board also decided to hold the forecast farmgate payout at $6 a kilo.

Along with a previously announced estimated dividend range of 20-25 cents per share, the forecast Cash Payout for the season is $6.20-$6.25.

The decision to maintain the forecast Farmgate Milk Price reflects the longer term outlook for international prices for dairy. Current market views supported by our own forecasting indicate commodity prices improving later this year or in early 2015, with global demand for dairy continuing to grow year-on-year. 

While the long-term market fundamentals remain sound, we need to recognise that the current conditions are difficult and there remains further downside risk.

There is still volatility. This reflects challenges with supply and demand following a good dairy season globally. Given these factors, the forecast is our best judgement at this time.

It is early in the season, and it is important to continue exercising caution with your farming business budgets. The reality is, we expect to see ongoing volatility, and we will keep you informed as we move forward.

Russia’s decision to block European imports and cheaper grain prices which are leading to an increase in production in the USA will both have an impact on the supply of milk and other dairy products.

Fonterra and its suppliers are right to be cautious.

For more see media releases:

FONTERRA INCREASES PROCESSING CAPACITY TO HELP MEET GLOBAL DEMAND

FONTERRA AND BEINGMATE INITIATE GLOBAL PARTNERSHIP IN CHINA’S HIGH-VALUE INFANT FORMULA MARKET

FONTERRA MAINTAINS FORECAST FARMGATE MILK PRICE FOR 2014/15 SEASON


A tale of two campaigns

August 27, 2014

Andrea Vance writes on a tale of two campaigns:

. . . One is slick, polished and organised to the last detail. The other is ad hoc, chaotic and oddly low-energy.

National leader John Key whizzed his way across Auckland on Monday, barely pausing for a breath. A brisk shopping centre walkabout was memorable, mainly for the sheer numbers who stopped him for a selfie. The campaign bus rolled up, stacked with supporters in their Team Key sweaters.

Key is merciless in keeping the exchanges swift – a grin for the camera phone, and an exchange of pleasantries and he’s on to the next voter.

Fast forward a day, and his opposite number David Cunliffe was on the road in Rotorua, campaigning with ex-television presenter Tamati Coffey.

The day started with a selfie – and there were plenty – but to be blunt, Coffey was the bigger drawcard.

A stop-off at a local primary school excited pupils, especially when told a Labour government would give them each a tablet. But with only a handful of eligible voters in the room, reporters wondered how effective the visit was.

A scheduled town centre walkabout was delayed by 35 minutes as Cunliffe, Coffey and activists stopped for a curry. “An army marches on its stomach,” Cunliffe said later. On the stroll he talked with eight people, two of whom were in town from overseas. . .

There are many reasons for the differences.

Some of them are personal – the Prime Minister is popular as a man as well as a politician, the would-be PM is not.

Some are political – National has a good record that’s working for New Zealand. That gives it a strong foundation on which to base its campaign to keep the country on the right track.

Labour doesn’t.

Some are organisational.

National is unified.

Labour isn’t.

National has tens of thousands of members who are working with and for candidates.

Labour doesn’t.

It’s a tale of two parties.

National is positive and unified, Labour isn’t and the campaigns reflect that.


Labour negative on labour

August 27, 2014

Labour’s campaign on positivity took several hits at the ASB finance spokespeople’s debate in Queenstown last night.

The worst was from its finance spokesman David Parker in response to a question on immigration when he said:

“I don’t think that in a world that needs less labour the answer is more labour.”

He then went on to talk about low value immigrants, was pulled up by the chair Duncan Garner and tried to turn it into immigrants doing low value jobs.

Then he repeated what he’d already said that in a world with a decreasing need for labour because of technology the answer wasn’t more labour.

That is an extraordinarily ignorant statement which shows no understanding of how an economy and the job market works.

It also demonstrates a depressingly negative attitude from a party which obviously doesn’t understand wealth creation.

Businesses go and others come, jobs go and others come and in a growing economy more come than go.

They might be different jobs and will need differing levels of skill and receive differing levels of pay, but they will be jobs.

Finance Minister Bill English made that point by saying that we will need 150,000 people to fill the jobs that will be created.

Parker presumably meant labour with a small l but look at his sentence with a big L:

I don’t think that in a world that needs less Labour the answer is more Labour.

Now that’s positive.


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