Word of the day

05/03/2021

Twattling – to prate; to talk much and idly; to gabble; to chatter; to twaddle; gossiping or talking about unimportant things.


Yes Sir Humphrey

05/03/2021


Dairy delivers again

05/03/2021

Good news from Fonterra:

Fonterra Co-operative Group Limited today lifted its 2020/21 forecast Farmgate Milk Price range to NZD $7.30 – $7.90 per kgMS, up from NZD $6.90 – $7.50 per kgMS.

The midpoint of the range, which farmers are paid off, has increased to NZD $7.60 per kgMS.

Fonterra CEO Miles Hurrell says the lift in the 2020/21 forecast Farmgate Milk Price range is a result of consistent strong demand for New Zealand dairy.

“We’ve seen Global Dairy Trade (GDT) prices continuing to increase since February when we last updated on our forecast Farmgate Milk Price and then this week there was the 15% increase in GDT prices.

“It’s very much a China demand led story but there is also good demand for New Zealand dairy across South East Asia and the Middle East.

“China’s strong economic recovery, following the initial impact of COVID-19, is flowing through to strong demand for dairy and we’ve seen this through sales during the Chinese New Year.

“China’s local milk supply is being used in fresh dairy products and they are looking to us to provide longer-life dairy products – in particular, whole milk powder which has a big influence on the forecast Farmgate Milk Price.

“Customers know we are continuing to get products to market, despite the challenges in the global supply chain and they are looking to us for this reliability. We’re also seeing customers want to buy more of our products than usual to help mitigate the risk of global supply chain delays.”

Hurrell says today’s lift in the Co-op’s forecast Farmgate Milk Price is good news for New Zealand farmers and the wellbeing of rural communities. It would see the Co-op contribute more than $11.5 billion to the New Zealand economy through milk price payments this year.

But before we get too excited:

Fonterra has decided to maintain its plus or minus 30 cent range on its forecast Farmgate Milk Price, reflecting the continued uncertainties in the global dairy market.

Hurrell says it is important that farmers recognise there are a number of downside risks to the mid-point of the range. For example, the EU and US are heading into their season and their milk supply will start increasing, the impacts of COVID-19 on key markets and market volatility.

“A $7.60 per kgMS forecast Farmgate Milk Price also increases our input costs putting further pressure on our earnings in the second half of the 2020/21 financial year. More details on our earnings will provided at our half year results on 17 March.”

 


Rural round-up

05/03/2021

Dairy price lift will give fillip to regional economies and fortify Fonterra’s confidence in pressing on with capital restructuring – Point of Order:

Our  dairy provinces  are  reverberating to  the  news that prices  soared  at the  latest Fonterra GDT auction. The prosperity  this  brings  to the regions  will  provide a  significant counterbalance  to the loss  of earning power  in the tourism sector because of the pandemic.

The average price at the auction climbed 15% to $US4,231 a tonne but,  more  importantly, the price for wholemilk  powder, which is  the  key to the payout  to farmers,rose an astonishing 21% to $US4,364 a tonne. Butter  was  up  sharply to $US5,826 a tonne, or 13.7%.

Overall, the increase compares with a 3% rise at the previous auction two weeks ago. . . 

Reducing cow numbers no silver bullet for emissions – Sudesh Kissun:

Reducing cow numbers isn’t the ‘silver bullet’ to lowering greenhouse gas emissions in New Zealand, says Northland farmer and entrepreneur Tom Pow.

With the Government facing calls to slash cow numbers as part of its climate change action plan, Pow, the founder of HerdHomes, says a knee-jerk reaction to reduce cow numbers would be naïve.

He suggests looking at other options including reducing the number of hours cows spend in paddocks. “Balanced feed can lead to less greenhouse gasses (GHG) or effectively a smaller herd mis-managed could produce even more GHG,” he told Dairy News. . . 

Exciting board role for up and coming farmer – Peter Burke:

A 50/50 sharemilker at an award-winning Maori farming enterprise has been selected as one of two associate directors at DairyNZ for the coming year.

Carlos Delos Santo works for the Onuku Maori Lands Trust which runs a number of dairy farms near Rotorua as well as a sheep milking operation and other businesses. The other new associate director is Cameron Henderson who farms in Canterbury with his partner Sarah.

Delos Santo says he’s really excited to be selected for this role, as it allows him the chance to gain knowledge on what occurs at DairyNZ board meetings and contribute to important sector discussions. . .

Following his calling, not many downsides to farming – Toni Williams:

Mike Carr has had a calling to be a farmer since he was 8 years old; old enough to drive a tractor and help out on farm.

By the age of 25 he’d travelled overseas and had a mechanic’s qualification under his belt before returning to the family farm to work alongside his parents, Ian and Sue.

Then he took over.

He loves farming — and being outdoors.

“You’re your own boss. It’s great — you don’t answer to anyone else,” he said. . .

Shed consent application process could be improved – Shawn McAvinue:

A frustrated West Taieri farmer is calling for the Otago Regional Council to do better so he can achieve his dream of building a shed to keep his cattle warm and dry.

The council says it will seek ways to improve its service.

Fred Doherty, of Outram, said he had expected the process to get the consents required to build a wintering shed in the middle of his 90ha sheep and beef farm to be “simple and basic” but it had been “frustrating” and made considerably more expensive by red tape.

“It’s been a dream of mine to be able to put my stock inside for winter and to know that whatever nature throws at them, they are safe, warm and dry and your farm is getting looked after.” . . 

Could the next Emirates Team New Zealand boat be made entirely of hemp?:

With The America’s Cup due to start in a few days’ time, innovators from a very different sphere have been wondering how long it could be before New Zealand could be competing in a boat entirely built from hemp, with the crew eating high-energy, nutritious hemp-infused foods and wearing high-performance hemp kit?

Industrial hemp (iHemp) is from the same family as cannabis, but from different cultivars and without the psychoactive effects. Having historically fallen out of favour, it’s rapidly finding its place in the world again, due primarily to its environmental and health benefits.

Hemp has a wide range of uses driven by its unique characteristics. Hemp textiles are naturally anti-fungerial, antic static, antibacterial and antimicrobial and can stop 95% of the UV light. Used in construction materials, it is fire resistant, breathable and strong; one sixth of the weight of concrete and continues to sequester carbon throughout its life. .  .


Yes Sir Humphrey

05/03/2021


Who’s responsible?

05/03/2021

Another day and yet more evidence of confusion over Covid-19 information:

The Department of Prime Minister and Cabinet (DPMC) says posts on a Government website saying a KFC worker did nothing wrong were made in “on the understanding it was accurate” as the information came from the Health Ministry. 

If it wasn’t accurate, what was it doing on the website?

Multiple posts were made on the Unite Against COVID-19 website, which is run by the DPMC, on February 26. The posts were responding to questions from the public and stated that the KFC worker, known as Case L, didn’t need to isolate and her and her family “complied with advice they were given at the time”. 

The Prime Minister said on the same day she was “frustrated” with Case L for not isolating and being at work. . . 

COVID-response Minister Chris Hipkins said today the information was “out of context.” 

But National’s COVID-19 spokesperson Chris Bishop said the situation showed even Government departments are confused. 

“This is just baffling and bewildering. The Unite Against COVID-19 Facebook page is posting the Ministry’s own advice while Ministers dissemble and play the blame game. It is deeply unedifying.”

A spokesperson for the DPMC said the posts were “made in good faith” on the understanding that the information was correct, but “recognises the use of the word complied in the reply made it more definitive than it should have been.” . . .

On the understanding that the information was correct? More definitive that it should have been? Surely all communication on an official website should be correct and definitive.

It should also be clear, easily understood and not open to varying interpretations.

Who’s responsible for ensuring that it is? It’s not the members of the public that the politicians are criticising.

It’s the same people who are responsible for all the other mistakes and shortcomings in the Covid-19 response – the government and the Ministry of Health.

It is less than edifying to have different government agencies bickering publicly about who was right. It wouldn’t be happening if there was a single Covid recovery agency responsible for all policy and communication.


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