Fonterra too tough on minnows?

December 4, 2015

When the milk payout went down farmers expected Fonterra to shed any fat in its operation.

I don’t think this is what they were expecting:

Business owners have been left feeling bullied by Fonterra over changes they say mean cutting their prices and waiting longer to get paid.

A letter from Fonterra’s chief financial officer Lukas Paravicini was sent to contractors and suppliers around the country in October detailing the changes that were being made.

The vendors were asked to find efficiencies across their operations to reduce their prices by 10 percent and submit a proposal on how they would do so.

And, rather than sending payments on the 20th of the month following the invoice date, some contractors were told payments would now be sent 61 days after the end of the month of the invoice.

A number of contractors spoken to were infuriated by the changes, but too afraid to speak up and risk losing business.

Wanganui National Party MP Chester Borrows said he had been contacted by some contractors from the Taranaki region, but many were uneasy about commenting on the situation.

“I think it’s classic bully-boy tactics from a big company who is using the leverage of fear against its contractors to drive down the price and to obtain free credit,” Borrows said.

“I’m talking to one particular company that employs 90 people, Fonterra’s quite a big chunk of their work. If Fonterra decides to push them around like this then these guys are afraid that they’re not going to be able to pay their suppliers.”

Alterations to the payment of contractors is the latest in a number of changes by Fonterra, who have made more than 700 staff redundant since the middle of the year. . . 

One of the attractions of dairying, unlike most other types of farming, is that suppliers get regular monthly payments. Contractors, many of whom will be small businesses, would expect their bills to be paid each month too.

Asking suppliers to sharpen their pencils is normal business practice but expecting small businesses to effectively bank you is not.

Fonterra is New Zealand’s biggest business fish and it looks like it is being too tough on the minnows it contracts for goods and services.

 


Word of the day

December 4, 2015

Cavil – make or raise irritating, petty or unnecessary objections; oppose by inconsequential, frivolous, or sham objections; find fault with unnecessarily.


Rural round-up

December 4, 2015

Moving stock to cope with dry conditions:

Canterbury and other parts of the country are continuing to struggle with dry conditions. The need to offload stock, particularly store lambs from farms is intensifying and it may be necessary to get large numbers of lambs to the North Island to help ease the pressure.

Federated Farmers are trying to get a handle on the numbers we may have to deal with and if there are farmers in other parts of the country with surplus feed who may be interested in taking on lambs to finish. . . 

Katie Milne reflects on her role before new Dairy Woman of the Year nominations open:

Dairy Women’s Network will be taking nominations for the 2016 Dairy Woman of the Year Award from 1 February until 11 March 2016.

Sponsored by Fonterra, the Dairy Woman of the Year award recognises an outstanding woman who has significantly contributed to the dairy industry with passion, drive, innovation and leadership.

The Dairy Woman of the Year is announced annually at the national Dairy Women’s Network conference, which in 2016 is being held on 4-5 May in Hamilton.

Current Dairy Woman of the Year Katie Milne attributes her recent win in the rural category of the New Zealand Women of Influence Awards to her Dairy Woman of the Year title, along with her role as Federated Farmers national board member. . . 

Dairy Awards Receives 452 Entries:

A total of 452 entries have been received in the 2016 New Zealand Dairy Industry Awards, a pleasing result given the economic climate in the industry.

The awards have also undergone significant change for the 2016 awards programme, with entry criteria changing for all three competitions resulting in two of the competitions sporting new names.

“Given this we are really happy with the result and we are pleased with the balance of entries across the three competitions,” General Manager Chris Keeping says. . . 

Ngāi Tahu Holdings confirms new joint venture:

Ngāi Tahu Holdings Board Chairman Trevor Burt is pleased to announce a new joint venture with the family-owned company, Watson & Son, one of New Zealand’s largest mānuka honey producers.

Ngāi Tahu will own 50% of Wairarapa-basedv which focuses on the production and distribution of premium mānuka honey products; and 50% of ManukaMed, a related company focused on the medical applications of mānuka honey. . . 

Notice of hearing for herbicide with two new active ingredients:

The Environmental Protection Authority (EPA) advises a hearing is scheduled for an application to import for release the herbicide GF-2687. This herbicide contains two active ingredients that are new to New Zealand, halauxifen methyl and florasulam. It is intended to be used for the control of broadleaf weeds in cereal crops, including wheat and barley.

The application from Dow AgroSciences (NZ) Ltd is for a wettable granule herbicide containing two ingredients that have not previously been approved under the Hazardous Substances and New Organisms (HSNO) Act and which are not components in any approved formulations. The submission period was from 8 June 2015 to 20 July 2015. . . 

Elite Ram and Ewe Sale Results:

The Canterbury A&P Association Elite Ram and Ewe Sale, held Friday 27 November, attracted a quality line up, with 231 Rams and 11 Ewes entered into the sale. With 144 rams selling, the average sale price was $1861 and $250 for ewes with 6 selling; total sales of $269,500 were recorded.

The highest price was reached by a Clifton Downs Southdown Ram (Chris Medlicott, Waimate), selling for $16,000.

Other top prices were as follows: Corriedale – $2900 (Wattlebank, GR and RW Wilson, West Melton); Hampshire – $3100 (Blue View, Gudex Family, Ashburton); Romney – $2400 (Gatton Park, DA & SJ Wyllie, Ashburton); Poll Dorset – $2000 (Brooklands, A&P McIlraith, Leeston); Border Leicester – $4000 (Hermiston, GJ Letham, Ashburton); Texel – $4000 (Hemingford, SEJ & V Holland, Culverden); South Suffolk – $4200 (Inver, SJ Sinclair, Ashburton); Suffolk – $6700 (Stoneylea, AW & JH Adams, Christchurch). . . 

Ceres Organics Addresses Californian Drought Impacts on Almond Crops:

NZ organics company Ceres Organics is spearheading action to diversify the world’s organic almond supply and take pressure off Californian almond growers, in response to one of the most severe droughts in California’s history.

Currently, California provides 80 per cent of the world’s almonds and with the drought affecting supply, the price of almonds has risen 40 per cent globally. Ceres Organics is one of the biggest suppliers of organic products across Australasia with around 400 products in the range and at least 40 of these contain organic almonds.

Managing Director of Ceres Organics Noel Josephson said the drought in California highlighted the issues associated with having mono-crops and the need for global crop-diversification. . . 

Wool Generally Steady

New Zealand Wool Services International Limited’s C.E.O, Mr John Dawson reports that the more versatile and stylish South Island selection on offer this week saw most types well supported, despite a slightly firmer New Zealand dollar.

Compared to the last sale on 26th November the indicator for the main trading currencies was up 1.05 percent only having minimal impact in some quarters.

Mr Dawson advises that compared to the last time sold on 19th November, Merino Fleece 20.5 microns and finer were firm to 1.5 percent easier with 21 to 23.5 microns 1 to 3 percent dearer. . . 

Narrabri mega train rolls into the record books – Mike Foley:

BIG train, big gain: That’s the aim for the longest grain train to haul wheat to port in Australia.

The train, rivalling the coal industry’s heaviest efforts, hauled out of Narrabri this morning and unloads at Newcastle Agri Terminal (NAT) tonight, its cargo bound for South East Asia.

Longer trains deliver bigger loads and squeeze more value from the scant rail slots available on the coal-laden Hunter Valley line.

The massive train – which is 1.3 kilometres long – is snaking across the North West farming districts and over the Great Dividing Range to port. . . 

NZ Farming's photo.

Proud to be a farmer supporting animal welfare.


Friday’s answers

December 4, 2015

Andrei and J Bloggs posed the questions, all but two of which stumped me.

If they stumped us all they can claim a virtual bunch of peonies by leaving the answers below.


Quote of the day

December 4, 2015

Permanence, perseverance and persistence in spite of all obstacles, discouragements, and impossibilities: It is this, that in all things distinguishes the strong soul from the weak. – Thomas Carlyle who was born on this day in 1795.


December 4 in history

December 4, 2015

306 – Martyrdom of Saint Barbara.

771 – Austrasian King Carloman died, leaving his brother CharlemagneKing of the complete Frankish Kingdom.

1110 – First Crusade: The Crusaders sacked Sidon.

1259 – Kings Louis IX of France and Henry III of England agreed to theTreaty of Paris, in which Henry renounced his claims to French-controlled territory on continental Europe (including Normandy) in exchange for Louis withdrawing his support for English rebels.

1563 – The final session of the Council of Trent was held (it opened on December 13, 1545).

1619 – 38 colonists from Berkeley Parish in England disembarked inVirginia and gave thanks to God (this is considered by many to be the firstThanksgiving in the Americas).

1676 –  Battle of Lund: A Danish army under the command of King Christian V of Denmark engaged the Swedish army commanded by Field Marshal Simon Grundel-Helmfelt.

1745  Charles Edward Stuart’s army reached Derby, its furthest point during the second Jacobite rising.

1791 The first edition of The Observer, the world’s first Sunday newspaper, was published.

1795  Thomas Carlyle, Scottish writer and historian, was born (d. 1881) .

1835  Samuel Butler, English writer, was born (d. 1902).

1867 – Former Minnesota farmer Oliver Hudson Kelley founded the Order of the Patrons of Husbandry (better known today as the Grange).

1872 The crewless American ship Mary Celeste was found by the Britishbrig Dei Gratia (the ship had been abandoned for 9 days but was only slightly damaged).

1881 The first edition of the Los Angeles Times was published.

1892  Francisco Franco, dictator of Spain, was born (d. 1975).

1918  U.S. President Woodrow Wilson sailed for the World War I peace talks in Versailles, becoming the first US president to travel to Europe while in office.

1930 Ronnie Corbett, Scottish actor, was born.

1939 –  HMS Nelson was struck by a mine (laid by U-31) off the Scottish coast.

1942 – In Warsaw, Zofia Kossak-Szczucka and Wanda Krahelska-Filipowicz set up the Żegota organization.

1942 – Carlson’s patrol during the Guadalcanal Campaign ended.

1943 – World War II: In Yugoslavia, resistance leader Marshal Titoproclaimed a provisional democratic Yugoslav government in-exile.

1943 – World War II: U.S. President Franklin D. Roosevelt closed down theWorks Progress Administration, because of the high levels of wartime employment in the United States.

1945 – By a vote of 65 to 7, the United States Senate approved United States participation in the United Nations

1949 Pamela Stephenson, New Zealand-born actress, was born.

1952 Great Smog of 1952: A cold fog descended upon London, combining with air pollution and killing at least 12,000 in the following months.

1954 The first Burger King opened in Miami, Florida.

1958 – Dahomey (present-day Benin) became a self-governing country within the French Community.

1966 – The state monopoly on commercial radio broadcasting was challenged by the pirate station Radio Hauraki’s first scheduled transmission from the vessel Tiri in the Colville Channel.

Radio Hauraki rules the waves

1971 The Montreux Casino was set ablaze by someone wielding a flare gun during a Frank Zappa concert; the incident would be noted in the Deep Purple song “Smoke on the Water“.

1971 – McGurk’s Bar bombing: An Ulster Volunteer Force bomb kills 15 civilians and wounds 17 in Belfast.

1977 – Malaysia Airlines Flight 653 is hijacked and crashed in Tanjong Kupang, Johor, killing 100.

1978  Dianne Feinstein became San Francisco, California’s first female mayor.

1980   Led Zeppelin officially disbanded following the death of drummer John Bonham on September 25th.

1991 –  Journalist Terry A. Anderson was released after 7 years in captivity as a hostage in Beirut.

1991 Captain Mark Pyle piloted Clipper Goodwill, a Pan American World Airways Boeing 727-221ADV, to Miami International Airport ending 64 years of Pan Am operations.

1993 – A truce was concluded between the government of Angola andUNITA rebels.

1998 – The Unity Module, the second module of the International Space Station, was launched.

2005 – Tens of thousands of people in Hong Kong protested for democracyand call on the Government to allow universal and equal suffrage.

2006 – An adult giant squid was caught on video for the first time byTsunemi Kubodera near the Ogasawara Islands.

2006 – Six black youths assaulted a white teenager in Jena, Louisiana.

2013 – Xavier Bettel became Luxembourg’s first openly gay Prime Minister.

Sourced from NZ History Online & Wikipedia


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