Word of the day

June 11, 2015

Frore – frozen; frosty; having a low or inadequate temperature; feeling a sensation of coldness.


Rural Round-up

June 11, 2015

Prime Minister officially opens Fieldays 2015:

Crowds filled the Village Green to see Prime Minister John Key officially open the 47th NZ National Agricultural Fieldays®, along with NZ National Fieldays SocietyTM President Warwick Roberts.

The Prime Minister arrived at Mystery Creek this morning and greeted Fieldays visitors before giving his midday Opening Ceremony speech.

Prime Minister Key said there is an importance for innovation in the farming and science sector to lift New Zealand’s profitability at the ceremony. . .

 

Fieldays fans get on site fast for opening day  – Libby Wilson:

When the sun went down on the first day of Fieldays at Mystery Creek, just under 30,000 people had already checked out what was on offer.

Day one had started fast for the agricultural expo, NZ National Fieldays Society chief executive Jon Calder said.

“We had 15,000 on site by 9 o’clock,” he said. . .

Inventions on show at Fieldays – Adrien Taylor:

A device that converts cow poo into water and fuel is one of the inventions to catch the attention of farmers at this year’s Fieldays.

At the four-day event near Hamilton, a group of business experts are on site to help innovators get their ideas into production.

Fieldays commercial general manager Nick Dromgool says innovation is one of the key pillars of the event. . .

Higher NZ milk production, increased payout to boost NZ economy by $1.8B, AgriHQ says – Tina Morrison:

 (BusinessDesk) – Increased milk production and a higher forecast payout to dairy farmers for the upcoming season should bolster the New Zealand economy by $1.8 billion, according to AgriHQ.

The AgriHQ NZ milk production predictor forecasts growth of about 2.5 percent to 1,930 million kilograms of milk solids for the 2015/16 season, following 3 percent growth in the 2014/15 season.

The expectation for increased milk production comes as New Zealand dairy companies are forecasting higher payouts to farmers this year on the expectation global prices will pick up. Fonterra Cooperative Group, the world’s largest dairy exporter, expects to increase its payout for the 2015/16 season to $5.25 per kilogram of milk solids, from $4.40/kgMS in 2014/15. Synlait Milk expects to pay $5.50/kgMS in the upcoming season, up from a range of $4.40-$4.60/kgMS this season. . .

 Livestock export ‘a win for both countries’:

Federated Farmers says the live sheep shipment headed to Mexico will help that country restock following a serious drought as well as farmers hit by drought here.

The shipment leaving Timaru this morning is New Zealand’s largest-ever live sheep export of 50,000 sheep.

Three thousand cows will also be shipped to Mexico.

The Ministry for Primary Industries (MPI) said the animals were being sent to Mexico for breeding purposes and not for slaughter. Shipments of live animals for slaughter is banned. . .

Concerns at major live sheep shipment:

About 50,000 sheep – New Zealand’s largest live sheep export shipment for nearly a decade – are about to leave Timaru for Mexico.

The Ministry for Primary Industries (MPI) has approved the export of the sheep, as well as about 3000 cattle, for breeding purposes, due to high demand in Mexico after a recent drought.

Since 2007, livestock cannot be exported for slaughter unless special approval is granted by the Director-General.

Agribusiness Agenda 2015 – volume 1

Growing value – an uncertain future

The uncertain future of the dairy sector is currently top-of-mind for many primary sector leaders, reports KPMG New Zealand.

That was a key theme arising from the KPMG Agribusiness Agenda 2015, titled “Growing Value”.

KPMG’s Global Head of Agribusiness, Ian Proudfoot, says conversations about the dairy industry’s future have “changed dramatically in the last year”. . .

 

Ministers welcome KPMG Agribusiness Agenda:

Primary Industries Ministers Nathan Guy and Food Safety Minister Jo Goodhew have welcomed the annual KPMG Agribusiness Agenda, which shows strong industry support for the Government priorities of strengthening biosecurity and adding value to exports.

“This annual report surveys over 100 leaders in the primary sector and is a valuable snapshot of industry views,” says Mr Guy.

“It’s no surprise to see biosecurity highlighted again as the number one issue by industry, as it has been my number one priority since becoming Minister. . .

Combined rural firies take home top award

The district’s combined rural firies have scooped the Supreme Award at the 2015 Trustpower Ashburton Community Awards last night at Hotel Ashburton.

The Awards were announced and presented last night in front of almost a hundred spectators, entrant nominators and volunteers. . .

 

Opportunities for greater New Zealand-European Union agricultural partnerships:

Primary Industries Minister Nathan Guy says his visit to Europe over the last 10 days successfully highlighted opportunities for more agricultural partnerships between producers in the European Union and New Zealand.

Mr Guy visited France and Poland, and represented New Zealand at the International Agricultural Forum at the Milan Expo and at the 39th Food and Agriculture Organisation of the United Nations (FAO) conference in Rome. . . 

Rabobank Fertiliser Quarterly Q2: Neutral Nutrients:

Fertiliser markets will be neutral to slightly bearish the coming three months, according to the Rabobank Fertilizer Quarterly Q2. Across-the-board price support for fertilisers seems possible only if volumes discipline from suppliers remains or intensifies. In demand terms, price support would have to originate from India and Brazil.

Currently, demand in India remains fragile as buyers await more clarity on rupee volatility and monsoon rains. Brazilian buyers are holding out on significant purchases, based high-beginning stock levels and a subdued agricultural outlook. “In Brazil, we expect that full-year fertiliser imports in Brazil, could decline with as much as 15 to 20 percent YOY,” says Rabobank analyst Victor Ikeda. . .

Premium dairy brand launches ‘Breast Milk’ onto supermarket shelves:

New Zealanders wanting to support the search for a cure for one of our biggest killers can do so by having a swig of ‘Breast Milk’.

Lewis Road Creamery is backing Breast Cancer Cure’s mission to find a cure for breast cancer by repackaging its most popular organic cow’s milk, Homogenised, as Lewis Road Creamery Breast Milk f or a three-month period, from today. . .

Lewis Road Creamery ‘breast milk’ causes upset:

Lewis Road Creamery says it did not intend to mislead customers with its new “breast milk”, a labelling move that has been slated by breastfeeding advocates.

In a bid to raise money for breast cancer research, Lewis Road has branded its blue top 1.5 litre organic homogenised cow’s milk with a red label reading: “Breast Milk: the cow’s milk that funds the cure”. 

For every labelled bottle sold (RRP $6.09) Lewis Road will donate 20 cents to Breast Cancer Cure, the research foundation that originally pitched the idea to the dairy company. . .

 

 


Thursday’s quiz

June 11, 2015

It’s your turn to ask the questions.

You don’t need to follow the five-question format I usually use.

Anyone who stumps all of us will win a virtual batch of caramel square.


Flag of the day

June 11, 2015

The Flag Consideration Panel is inviting people to upload designs for a new flag.

There are more than 3000 in the gallery already.

This one is Another History by Monico B. Fuller Jr.

flag


OCR down .25 basis points

June 11, 2015

Reserve Bank Governor Graeme Wheeler has announced a small drop in the Official Cash Rate:

The Reserve Bank today reduced the Official Cash Rate (OCR) by 25 basis points to 3.25 percent.

Growth in the global economy remains moderate. Data on economic activity in the US, China and Australia has been mixed, although there has been some improvement in the euro area and Japan. Volatility in financial markets has increased.

The New Zealand economy is growing at an annual rate around three percent, supported by low interest rates, high net migration and construction activity, and the decline in fuel prices. However, the fall in export commodity prices that began in mid-2014 is proving more pronounced. The weaker prospects for dairy prices and the recent rises in petrol prices will slow income and demand growth and increase the risk that the return of inflation to the mid-point would be delayed.

Inflation has been low due to falling import prices and the strong growth in the economy’s supply potential. Wage inflation and inflation expectations have been subdued.

With the fall in commodity prices and the expected weakening in demand, the exchange rate has declined from its recent peak in April, but remains overvalued. A further significant downward adjustment is justified. In light of the forecast deterioration in the current account balance, such an exchange rate adjustment is needed to put New Zealand’s net external position on a more sustainable path.

House prices in Auckland continue to increase rapidly, and increased supply is needed to address this. The proposed LVR measures and the Government’s tax initiatives planned for 1 October 2015 should ease the impact of investor activity.

A reduction in the OCR is appropriate given low inflationary pressures and the expected weakening in demand, and to ensure that medium term inflation converges towards the middle of the target range.

We expect further easing may be appropriate. This will depend on the emerging data.

It’s good to see policies to address the supply side of the Auckland housing problem being acknowledged so that the rest of us aren’t paying in higher interest rates.


What have they been doing?

June 11, 2015

Fonterra expects to layoff hundreds of staff as a result of a comprehensive review of the company:

Fonterra chief executive Theo Spierings said he’s determined not to allow the dairy cooperative to fall below its current 87 percent share of the New Zealand milk pool, despite increased competition for supply.

Spierings fronted up to the media this morning after widespread criticism of the dairy cooperative’s management performance following a weak half-year financial result, lower forecast dairy payout, and anecdotal reports many of its 10,500 suppliers were seeking to leave and supply independents.

He said a major review underway of the business would lead to hundreds of its 1,500 head office and support function staff being laid off because it wanted to redirect more staff into sales and in market roles to help drive up returns. Fonterra currently employs 11,500 staff in New Zealand and 18,000 worldwide. . .

Job losses are always difficult for a business and for the people who lose their jobs.

But the loss of this many positions does lead to questions:

What have the hundreds of people who will lose their jobs been doing?

How long have they been doing it and if they don’t need to be doing it after the review why have they been doing it?


Quote of the day

June 11, 2015

Arnie replied: “I always thought that the most important thing is that we have big dreams, and that we take those dreams seriously.

“The key thing is not to pay any attention to the naysayers. Because there’s just too many people around that will always try to tear you down. Don’t listen to that. I always say to people: Don’t listen to the naysayers. You can make it. All you have to have is just a clear vision of where you want to go and you go after that.” – Arnold Schwarzenegger


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