Rural round-up

Maniototo farmers challenge Ardern to visit them on water tax

A group of Central Otago farmers are challenging Jacinda Ardern to visit their farms to discuss Labour’s water tax plans.

The group of women, known as Water Maniototo, say they cannot afford a royalty on irrigated water, planned at one to two cents per thousand litres of water, and it could drive some off their land.

Francine Hore, who farms sheep at Patearoa, says she supports fixing up the nation’s waterways, but many farmers are doing everything they can already. . . 

Lambs hit $7/kg – Annette Scott:

Low global stocks pushing lamb markets above the odds for this season is positive news for the New Zealand sheep industry but farmers are not yet jumping with excitement, Federated Farmers meat and fibre chairman Miles Anderson says.

Latest trade statistics revealed average export prices for both chilled and frozen product were tracking well above any prices seen in recent years, including 2011, the last time NZ saw such strong global demand for lamb.

Demand for chilled lamb had held solid in recent months, driven by the tight supply with chilled prices reaching historically high levels. . . 

Broken business makes comeback – Annette Scott:

From a business that was “essentially broken” to one recording a modest profit in less than 12 months, NZ Yarn is now poised to add value for New Zealand woolgrowers.

Over the past year the Canterbury yarn processor has spun its own turnaround project.

Getting back on its feet to lift returns for farmers and shareholders had been the focus of NZ Yarn’s reinvention, chief executive Colin McKenzie said.

“A year ago the business was essentially broken.

“We have reinvented, repositioned and resized operations and moved from making sizeable losses to recording our first modest profit in July,” McKenzie said. . . 

Millions tune in watch start of fresh NZ milk sales to China through Alibaba – Gerald Piddock:

Milk New Zealand’s trade agreement with global online retailer Alibaba has been launched with millions of Chinese consumers tuning in to watch the event.

The Chinese-owned company’s Collins Road Farm is just south of Hamilton and its 29 New Zealand farms will supply Alibaba with fresh milk to be sold on its online platform.

Organisers of the launch rented a satellite facility for the day to enable it to be live streamed directly to China. In attendance were 10 of China’s biggest social media influencers including Yuni and Joyce, who are known as the Chufei Churan twins in China.

The pair are considered the Chinese Kardashians with social media follower numbers larger than New Zealand’s entire population. They and other influencers videoed the event and the farm directly to their followers in China. . . 

Water royalty point of divergence – Nicole Sharp:

Water and the environment are two of the key talking points for Southern Rural Life readers this coming election. As voting day fast approaches, reporter Nicole Sharp talked to the candidates in the rural electorates of Waitaki and Clutha-Southland about these two issues that will affect rural voters.

Water is crucial to the agricultural sector and all candidates and their parties standing in the Waitaki electorate this upcoming election want to do all they can to preserve water quality now and in the future, they say.

Current Waitaki MP and National candidate Jacqui Dean said National’s new policy statement on freshwater, which was announced last month, would pursue a target of 90% of rivers and lakes swimmable by 2040. . .

 

Canterbury cropping farmer embraces environmental limits – Tony Benny:

Third-generation Canterbury cropping farmer David Birkett isn’t phased by tougher environmental regulations and says they can even lead to an improved bottom line. He talked to Tony Benny.

David Birkett’s farm is near Leeston, not far from what has been called New Zealand’s most polluted lake, Te Waihora/Ellesmere, and he’s well used to close scrutiny of the environmental effects of farming there by the regional council, members of the public and media.

“There’s a bit of pressure on farmers but they gain out of it, that’s the silly thing. I can’t understand someone who doesn’t bother to try to do the best they can because your bottom line is going to be better,” he says.

“Doing some measuring and making sure you know what’s needed, most of the time you’re actually financially better off than what you’d previously been doing.” . . 

Adding value more than just adding cost – Nigel Malthus:

The term ‘value added’ is too often used as a vague generic, and farmers need to consider specific strategies for adding value, says Rabobank analyst Blake Holgate.

Speaking at the recent Red Meat Sector conference in Dunedin, Holgate noted that most lamb was still exported frozen, returning $6906/tonne instead of chilled at $11,897/t.

“By and large we’re still treating sheep meat as a commodity market, so the lower value frozen export market still makes up about 80% of what we export, while the higher value chilled market, that’s worth nearly twice as much per tonne, is only 20%. . .

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