Fonterra chairman John Monaghan in his opening remarks about this week’s strong half-year result said against the backdrop of coronavirus turmoil, the big dairy company’s news “may sound somewhat trivial”.
We knew what he meant, but he couldn’t have been more wrong.
The financial performance of New Zealand’s biggest company and the world’s fourth-largest dairy company assumes towering new importance because of that turmoil.
Dairying was an economic sword for New Zealand against the GFC. . .
The animal medicines and crop protection lobby group Agcarm applauds the government’s efforts to protect the health of New Zealanders in its response to the COVID-19 pandemic, buts asks that support is extended to the farming community for maintaining essential food supplies.
Agcarm chief executive says “our rural communities are needed more than ever to ensure that this health crisis doesn’t turn into a hunger crisis”. Food production must be prioritised as an essential part of the COVID-19 response.
“We must maintain the uninterrupted movement of animal medicine and crop protection products, seeds and feed so that our farmers can keep healthy livestock and maintain an abundant supply of meat, fruits, vegetables and grains.” . .
Still in business – Annette Scott:
Rural people are urged to band together in keeping safe as they ride the tough times of the coronavirus pandemic.
Social resilience is key and if everyone works together “we will get through this,” the Mental Health Foundation says.
Agriculture is still in business and likely to lead the bounce back, ASB rural economist Nathan Penny says.
“Farming is likely to be the quickest to rebound from the fallout from coronavirus. . .
Drought starting to bite hard – Colin Williscroft:
Drought shouts organised by North Island rural support trusts have been put on hold by restrictions on gatherings.
Rural Support Trust chairman Neil Bateup says the social events bringing farmers together to deal with the drought and take their minds off some of its problems are no longer an option as the focus goes on keeping farmers and trust staff safe from covid-19.
It does not affect the trust’s other services.
“We’re absolutely determined to continue with the one-on-one support and advice to farmers.
“That will not be interrupted but we’re putting some protocols in place to keep everyone safe.” . .
Dairy farm sales low but recovering – Maja Burry:
New figures from the Real Estate Institute show dairy farm sales remain slow, with only one dairy farm changing hands in Canterbury in the last nine months.
Data released yesterday shows 1253 farms were sold in the year to February 2020, 14.8 percent fewer than were sold in the year to February 2019, with 37 percent less dairy farms, 10 percent less grazing farms, 27.9 percent less finishing farms and 9.9 percent less arable farms sold over the same period.
The institute’s rural spokesperson Brian Peacocke said the data reflected a rural industry under pressure in terms of volumes and values, particularly the dairy sector. . .
Synlait Milk has reported a 30 percent fall in its first half profit as its costs rose despite higher revenue.
The dairy company’s net profit for the six month ended January was $26.2 million, compared with $37.3 million the year before.
Revenue rose 19 percent, but its depreciation and financing costs offset that as the company expanded for future growth. . .