John Oliver tries to put NZ on the map

February 20, 2019

John Oliver has poked the borax at New Zealand in the past, but now he’s trying to put us on the map:

He’s even provided a cut-out on Twitter so those of us upset by the omission can put it where it belongs.


Word of the day

February 20, 2019

Charette –   period of intense work or creative activity undertaken to meet a deadline; a public meeting or workshop devoted to a concerted effort to solve a problem or plan the design of something.


Mooving to a2 milk

February 20, 2019

Fonterra is signing up farms to supply the a2 Milk company:

Mike Cronin, Fonterra Managing Director of Co-operative Affairs, says “Signing up New Zealand farms to significantly increase supply of high quality milk to The a2 Milk Company is a positive step forward. It clearly shows the strength of our strategic relationship, and our shared commitment to fast-track market growth and enable farmers to create additional value from their milk.”

The Co-op’s initial milk pool will be based in the Waikato around its Hautapu site and will support the production of ingredients. It is anticipated around 100 farms will be needed for next season.

Jayne Hrdlicka, The a2 Milk Company Managing Director and CEO, says “The a2 Milk Company is pleased to be making progress on our relationship with Fonterra. These farms will help support new growth areas for our company across existing and new markets. This is the next step in what we believe will be a fruitful long-term relationship with tremendous potential.”

The location of the milk pool was determined by several factors. Most importantly, the site needed the ability to manufacture the specific product in demand, produce relatively small batches and adapt easily to any product demand changes.

“While other regions were thoroughly considered, ultimately the decision must be demand-led. The ability to efficiently manufacture a range of products to meet that demand was the over-riding factor in choosing a site.As demand and product lines grow, we’ll look to expand the milk pool to enable more farmers to participate,” said Mr Cronin.

Most of the value from the relationship with The a2 Milk Company will be returned to all Co-op farmers through the dividend. Participating farms will also receive a premium for their milk.

Today’s development follows the national launch of the a2 Milk™ brand by Anchor from late September 2018.

A2 milk mostly lacks a form of β-casein proteins called A1 and instead has mostly the A2 form.

There is debate about A2’s health benefits but it attracts a premium price.

Fonterra missed the opportunity to lead with A2 milk and the a2 company has prospered.

Most herds have some cows which produce A2 milk and if Fonterra wanted to corner the market it could require its suppliers to use A2 semen for artificial insemination and in a few years all cows would be producing A2 milk.

That it’s seeking suppliers to supply a2 suggests it won’t be taking that approach.

 


Thatcher thinks

February 20, 2019


Rural round-up

February 20, 2019

Fonterra wants many DIRA changes – Hugh Stringleman:

Fonterra wants to ditch the requirement for it to take all milk if its market share drops below 75% in a region.

It also wants to exclude big processors except Goodman Fielder from accessing its milk at the regulated raw milk price.

Instead it wants to introduce a 12c/kg handling fee, it says in its submission to the Primary Industries Ministry’s review of the Dairy Industry Restructuring Act.

All other processors should be required to publish their average milk price paid to farmers and details of how they set it, Fonterra said.

DIRA should evolve to cover the whole dairy industry and not just control Fonterra. . . 

Otago young farmers lay claim to two titles – Sally Rae:

Otago can lay claim to three new national champions – all in the rural sector. Luke Kane (30) and Isaac Johnston (25), from West Otago, won the national fencing competition held recently as part of the New Zealand Young Farmers conference.

Elizabeth Graham (21), who lives on her parents’ farm at Hindon, won the national stock-judging title. . .

Duck eggs hatch into growing business – Luke Chivers:

Taranaki duck farmers Dawn and Glen Bendall are earning a living out of making people, including themselves, healthier. Luke Chivers reports. 

It is 7.30am in deepest, darkest winter.

As daylight breaks on mountainous, coastal Taranaki Urenui duck farmer Dawn Bendall is preparing her children for school before fossicking around in wood shavings up to 25 centimetres deep to retrieve 400 eggs.

“The ducks will dig up, they’ll lay and then they will cover the egg up again.

“It’s their little way of not letting the vermin get to the egg so I don’t know what they think of me,” she says, laughing. . . 

Riparian planting cleans Waikato dairy farm river – Hunter Calder:

From above it looks like any other river.

But up close, the Marokopa River through Ruawai Farm in Te Anga is exceptionally clear.

Data collected by Waikato Regional Council shows the water quality is some of the best in the region.

The river rates particularly highly for macroinvertebrates – tiny creatures without backbones such as insects and worms. The more of those, the healthier the water. . . 

Bounce in deer numbers :

Farmed deer numbers, including the number of breeding hinds and fawns, increased in 2018 according to provisional agriculture census figures released by Statistics New Zealand.

This follows a small recovery in stag numbers in the 2017 census.

Deer Industry NZ (DINZ) chief executive Dan Coup says the trend is a strong indication of growing farmer confidence in the viability of deer in a drystock farming operation. . . 

Wrightson cleared to sell seeds business – Gavin Evans

(BusinessDesk) – PGG Wrightson has been cleared to sell its seeds business to Denmark’s DLF Seeds.

The Commerce Commission said the $434 million transaction, announced in August, was unlikely to substantially reduce competition in any of the markets it assessed.

DLF is not at present a close competitor of PGG Wrightson Seeds in respect of ryegrass seeds containing endophytes and is unlikely to be so in the future,” deputy chair Sue Begg said. . .

Trade deals with Africa would help continent grow – Marian L. Tupy :

In December 2018, Donald Trump approved a new strategy for Africa that includes increasing US commercial ties with the continent. According to the Wall Street Journal, Trump’s strategy “is part of a broader effort…to fight for global supremacy with Russia and China”. Geopolitical considerations aside, freer trade between the United States and Africa makes good economic sense that’s bound to become more obvious over time.

Today, the economy of sub-Saharan Africa (SSA) is small, accounting for some 2 per cent of global Gross Domestic Product (GDP). Between 1960 and 2017, SSA GDP grew from $252 billion to $1.75 trillion. The world economy grew from $11.3 trillion to $80 trillion (all figures are in 2010 US dollars). That amounts to an average annual compounded growth rate of about 3.4 per cent and 3.43 per cent respectively.

The United Nations estimates that over the next 50 years, the SSA and world populations will grow at average compounded annual rates of 2.05 per cent and 0.63 per cent respectively. SSA’s population will thus increase from 1.1 billion to 3.1 billion and the world’s population will increase from 7.7 billion to 10.6 billion. That means that SSA will account for roughly 30 per cent of the world’s population in 2070. . . 

Trace elements a solution close to home :

Despite New Zealand’s relatively benign climate lending itself so well to pastoral farming, its soils can hide some chronic mineral deficiencies that can undo the efforts of the best farm managers as they try to get the most out of their stock.

Richard Sides, Boehringer Ingelheim Animal Health NZ technical veterinarian is urging farmers to look harder at what may be holding their stock’s performance back, and says the answer may be easier to find than they first thought. . . 


Virtue signalling deals $28b blow to economy

February 20, 2019

An NZIER report shows that the government’s virtue signalling oil and gas ban will deal a $28b blow to the economy.

Last year’s oil and gas exploration decision could cost the New Zealand economy $28 billion by 2050, according to a new study by the New Zealand Economic Institute for Economic Research (NZIER).

“This is the first proper analysis of the wider impacts this decision will have and it is very sobering. It shows enormous damage to New Zealanders’ standard of living for no apparent environmental gain,” says Petroleum Exploration and Production Association of New Zealand (PEPANZ) CEO Cameron Madgwick.

“Exports are likely to fall by between and $3 billion and $10 billion, and the impacts will be particularly severe in Taranaki where the local economy could shrink by up to $40 billion.

“According to the report, ‘These are large GDP impacts… the decision drives a series of strongly negative economic impacts.’

“This will have real and long-term impacts on New Zealanders, hurting incomes and making us worse off as a nation.

“At the same time, according to the Government’s own advisers, global greenhouse gas emissions are likely to rise as we burn more coal and import more fuel from overseas.

“This is new information which was not available to the Government when the legislation was rushed through Parliament last year. It reinforces the need for an independent review and rethink of this policy.”

The research was commissioned by PEPANZ and is available here.

A government determined to counter climate change would struggle to justify a $28 billion cost even if it was going to have a significant and positive environmental impact.

But the oil and gas exploration ban is just virtue signalling and it’s impossible to justify the huge economic cost while increasing greenhouse gas emissions.


Quote of the day

February 20, 2019

I know how easy it is for one to stay well within moral, ethical, and legal bounds through the skillful use of words – and to thereby spin, sidestep, circumvent, or bend a truth completely out of shape. To that extent, we are all liars on numerous occasions. Sidney Poitier who turns 92 today.


%d bloggers like this: