Word of the day

July 16, 2015

Hingle  – the part (as a gate hinge or pot handle) by which something hangs; a snare with which to catch a hare or rabbit.


Rural round-up

July 16, 2015

Trade agreements add up to big savings – Gerard Hutching:

Free trade agreements with China and Taiwan helped save New Zealand $161 million through lower tariffs on sheep and beef exports in 2014.

Beef+ Lamb New Zealand chief executive Scott Champion said the tariff savings were a market access success story, enabling New Zealand to remain competitive on the global market and giving exporters the flexibility to sell products into more markets.

The sector’s export returns for the period total $7.7 billion, with the amount in tariffs paid falling from $331m in 2013 to $326m in 2014.

Meanwhile beef and veal export returns reached a record high of $2.53bn – up $686m on the corresponding period last season. . .

Charities benefit from farmers’ toil – Kate Taylor:

One of Hawke’s Bay’s oldest sheep stations has been profiled in a new book, Kereru Station: Two Sisters’ Legacy.

Kereru Station managers Danny and Robyn Angland run the business to meet the needs of the owners, a partnership between two charitable trusts set up by the late sisters, Gwen Malden and Ruth Nelson. Between them, the two trusts have gifted almost $9 million to several hundred organisations and causes, mostly in Hawke’s Bay. . .

Farm ownership in under 10 years – Tony Benny:

When David Affleck was growing up on a remote sheep, beef and deer farm at the head of Ahaura River on the West Coast, the last thing he wanted to do was milk cows. But when he was offered a job on a dairy farm in Canterbury, that soon changed.

“It wasn’t really what I wanted to do but I gave it a go and I’ve been milking cows ever since, really. I pretty much liked it straightaway and started to learn things pretty quick,” he says.

But his wife, Anna, whose family owned a dairy farm in Reporoa, Bay of Plenty, has always loved cows. . . 

Work for breed recognised  – Sally Rae:

James Robertson’s lengthy involvement with Holstein Friesian New Zealand has been acknowledged.
The Outram farmer, who is the third generation of his family to belong to the association, was presented with a distinguished service award at HFNZ’s recent annual meeting in Masterton.

Dale Collie, of Carterton, also received the award, which recognises members who have contributed to the Holstein Friesian breed and the association at regional and/or national level. . . 

Bison-beef cattle cross gives beefalo – Allison Beckham:

What do you get when you cross a bison bull with a beef cow? Beefalo.

And a brand new beefalo arrival on Blair and Nadia Wisely’s Southland farm earlier this month is expected to be the start of an all local beefalo blood line.

Despite his unmasculine name, Bobo the bison – the 6 year old shaggy beast weighing 900kg the Wiselys have owned for four years – appears to have proved his parental prowess at last, successfully mating with a 50 50 bison/Charolais cow produced using bison semen imported from the United States. . . 

Truffle time in Christchurch – Ben Irwin:

What do you know about truffles?

Well, like reporter Ben Irwin, most of us probably know next to nothing about the expensive, subterranean fungus.

So Ben, wanting to educate himself and look busy, went searching for what is known as Canterbury’s Black Gold. . .

Survey maps future landscape

Landcare Research is asking farmers, foresters and growers to take part in a survey designed to show what the landscape may look in decades to come.

The survey of Rural Decision Makers was first held in 2013, in conjunction with the Ministry for the Environment. It proved so popular that Landcare Research now conducts it every two years.
The survey’s director, economist Pike Brown, said it focused on what farmers were thinking, rather than figures such as the number of stock they had.
“There’s lots of questions about how farms are managed and how forests are managed, questions about irrigation. . . 

 

 

 

 

 


Thursday’s quiz

July 16, 2015

1. Who said:

First they came for the Socialists, and I did not speak out—
Because I was not a Socialist.

Then they came for the Trade Unionists, and I did not speak out—
Because I was not a Trade Unionist.

Then they came for the Jews, and I did not speak out—
Because I was not a Jew.

Then they came for me—and there was no one left to speak for me.?

2. Who wrote To Kill A Mocking Bird?

3. It’s intolerant in French, bacchettone in Italy, intolerante in Spanish and upoko mārō in Maori, what is it in English (hint, the answer is a noun not an adjective).

4. Why was Rosa Parks arrested in 1955?

5. Is there a place for positive discrimination?


Flag of the day

July 16, 2015

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

There are more than 7000 in the gallery.

The deadline for submissions is today.

This one is Unity (3D) by Dave Sauvage.

flag


GDT price index drops 10.7%

July 16, 2015

More bad news on the dairy front this morning with a drop of 10.7% in Fonterra’s GlobalDairyTrade price index.

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Fonterra’s board will review the forecast milk price next month.

It won’t be going up and could well go down.

The dollar fell to a fresh five-year low in the wake of the GDT result.

The kiwi touched 65.81 US cents, and was trading at 65.92 cents at 8am in Wellington, from 67.05 cents at 5pm yesterday. The trade-weighted index sank to 70.01 from 70.88 yesterday.

The New Zealand dollar dropped sharply after dairy product prices sank an average 10.7 percent to a six-year low in the GDT auction, with the key whole milk powder price dropping 13.1 percent to US$1,848 a tonne. Dairy prices have remained lower for longer amid higher global supplies in New Zealand, Europe and the US, weak demand in China and an import ban in Russia. The weaker prices come as New Zealand production is rising heading into the country’s peak supply period in October, raising concern about the impact on the nation’s economy. . .

We can be grateful we have our own floating currency and aren’t like Greece which is tied to the Euro.

 

 


Racism risks trade backlash

July 16, 2015

BNZ economist Tony Alexander joins the discussion on Auckland housing and the part played by foreign buyers:

. . . So we remain in the dark about the extent to which Auckland’s housing market is truly being driven by offshore buying. But as emphasised previously, there are three key points which I shall keep repeating regarding Auckland housing and house price pressures.

1. The fundamental cause of rising prices in Auckland is a shortage of supply and until that gets addressed prices will stay highly elevated and perhaps keep rising out to late-2017 this cycle.

No matter what tinkering is done to reduce demand by restricting foreign buyers won’t change the fact that there is a shortage of supply.

2. Whatever the true magnitude of Chinese buying has been these past few years it will get much greater. Chinese families are growing wealthier, so naturally they will seek offshore assets. Chinese people wish to get assets off the mainland and this week’s massive intervention in sharemarkets by the Beijing authorities illustrates why people have high distrust of the environment on the mainland in which they would hold assets. And Chinese authorities have yet to relax hefty restrictions on people getting their funds offshore. When they do, well then you will see something entirely new hit the world’s residential property markets.

3. We should as soon as possible adopt Australia’s rules restricting foreign buying of anything other than new housing unless resident for 12 months.

But here is the fourth point which to date I have not emphasised but now will do. Adopting Australia’s rules as they stand won’t be the panacea many are hoping for. In Australia’s case people have been able to get around the restrictions quite easily. The regime is now being enforced more rigorously, but that does not necessarily alter what is being seen as a huge problem – something which people in Hong Kong have been seeing more and more of in recent years.

Many Chinese who buy properties never, or rarely, occupy them. They sit empty. This applies even to newly built apartments sold to Chinese buyers. Chinese simply want an asset away from any control by the CCP. There was an article on this in The Australian newspaper this weekend, page 6.

What this means is the following. As Auckland very slowly goes vertical in areas like New Lynn, developers will find they can very easily get offshore financing for their projects and hefty sales off the plan to Chinese investors (we Kiwis prefer to touch and feel before buying). These investors may never occupy or even rent out their investment. Thus while on the face of it the Aussie rule that a foreigner may only buy a newly built house or apartment sounds like a grand idea, it could leave the housing supply situation unchanged from a no-rule regime.

Thus, were we to adopt the Aussie regime we would need to add in an extra clause along the lines of apartments having to be made available for rent, actually rented, or something like that.

When might we see the adoption of some form of restriction on foreign home buying in New Zealand? Maybe within two or three years. About three years ago I recommended that we adopt the Australian regime. That was/is not because I feel Chinese buying is currently the big buying force people believe it is, but because the buying will grow and the eventual popular backlash against such buying and introduction of legislation in that heated environment would risk a backlash. The Chinese leadership may feel we were targeting them and getting above our station. Trade retaliation would be likely.

That is still the position I hold and the earlier we adopt Australia’s rules with the extra twist noted above, the better for everyone, including exporters to China wanting good access for many years who may feel nothing needs to be done on foreign home buying. You are the ones most at risk should this situation turn bad in 5, 10, 15, or 20 years time.

If there needs to be restrictions on foreign non-resident buyers they must apply to all foreign non-resident buyers.

Over at Kiwiblog, David Farrar points out that Labour’s policy of treating Australians more favourably than Chinese would contravene the free trade deal which that party signed when it was last in government.

Even if it didn’t, putting higher hurdles in the way of those from one or more countries while applying less restrictive rules to others is discriminatory and could lead to tit for tat repercussions which would endanger trade.

That would impact on the whole country when the housing problem is essentially Auckland’s and the solution to it lies not in restricting demand but increasing the supply.

 

 


Quote of the day

July 16, 2015

National Council of Women of New Zealand's photo.

I raise up my voice, not so that I can shout, but so that those without a voice can be heard. – Malala Yousafzai


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