Rural round-up

The Huiarua / Matanui betrayal – Clive Bibby :

Recently I enjoyed the experience of helping two young local men shear some of my sheep.

The exercise was a mixture of one that helped to restore my faith in our local farm based economy but also another that reinforced my concerns about the contemptuous manner in which the farming industry is being treated by the current government.

Who would have thought that it would be possible to have two views of the same cornerstone industry that are so diametrically opposed. 

Yet here we are lamenting that those who have the power to safeguard the jobs and welfare of those who make it happen, actually doing their best to destroy our number one asset – all in the name of an already discredited ideology. It is criminal activity and those who are responsible should be held to account.  . .

Dairy is fundamental to New Zealand’s future but it needs an informed debate – Keith Woodford:

The key message of this article is that dairy is of fundamental importance to the future of Aotearoa New Zealand.  However, the journey to get there is not straight forward and it will be controversial.

First, I set out the reasons why dairy is so important, and hence the need to face-up to the challenges that lie ahead. This then leads towards necessary actions to address the challenges.

It is no accident that New Zealand’s most important export industry is dairy, comprising some 30 percent of the export value of goods that leave New Zealand’s shores. Add in sheep, beef, timber, fish, kiwifruit and wine, and New Zealand’s primary industries contribute a little over 80 percent of the export earnings derived from merchandise goods.

The remaining exports are led by aluminium and some machinery. However, with these and other manufactured goods, the net contribution is typically much less than the export earnings, given the imports that are required to feed into the manufacture of these exports. . . 

Tomato growers face skyrocketing energy costs, labour shortages – Sally Murphy:

Tomatoes NZ hopes feedback from growers about the issues they’re facing will show the government and consumers how expensive and hard it’s become to grow the fruit.

The industry group is getting feedback from growers to create a living document of information.

It highlights the main issues growers are having such as rising energy and production costs, labour shortages and biosecurity incursions.

The cost of energy used to heat glasshouses had skyrocketed, with coal between 45 and 65 percent higher in price and gas up 50 percent.

Sourcing labour remained a challenge, the document said. Tomato growing businesses were operating with 40-60 percent of employee numbers due to the effects of Covid-19 and border restrictions. . . 

Worsening labour shortages forces agricultural sector to evaluate next steps :

Agricultural businesses in New Zealand are currently experiencing one of the highest labour shortages in its history. Farmers, business owners, and growers are dealing with a range of issues that are being felt nationwide with multiple crop losses and recent floodings. These issues and the additional strain on expenses are forcing employers to step back and evaluate next steps. There has never been a better time for employers to be well informed and aware of their obligations when it comes to managing and paying their staff.

New Zealand’s leading employment relations and health and safety at work specialists, Employsure New Zealand have released resources for agricultural business owners. Having represented over 6,000 businesses, Employsure have used their experience and knowledge to create tailored and effective resources for small business owners who find themselves unsure of their responsibilities.

Employsure New Zealand’s Operations Manager, Laurence McLean has commented on the importance of employer obligations. Mr McLean commented, [1]“With New Zealand doubling its working holiday intake and offering a fast-tracked path to permanency for temporary migrant workers, it is vital for employers to be knowledgeable on how to manage their staff from all walks of life including vulnerable workers such as backpackers and migrants many of whom do not fully understand their rights as employees. . . 

A2 share price rallies sharply as the processor reports big jump in net profit – Point of Order :

A mixed  bag  of  news  came  down the  line  for  New Zealand’s  dairy  industry  over the  past  week.  On  one  side,  Fonterra trimmed   its  forecast  payout  for  the  season, while  on  another a2  Milk   surprised   its  critics  by  reporting  a  42% jump  in  net  profit  to $114m.

Any   company  listed  on  the NZX  and  sitting  on a  cash  mountain  of  $800m  must  be  doing  something  right.    Yet  some of  the  headlines  on   its  result  focussed  on  what  might  go  wrong   for   the  company  that specialises  in marketing  a2 milk  and  infant  formula.

For  example  Business  Desk’s  Jenny Ruth  says the    biggest source of uncertainty for a2 Milk right now is China’s State Administration for Market Regulation (SAMR) deadline of February 21, 2023, for companies selling infant formula in China to get a new form of approval.  It’s called the GB standard, which is a Chinese national standard. Foreign companies won’t be able to manufacture formula for the Chinese market beyond that date unless they meet the new standard and have that all-important tick from SAMR.

But the  investment  community  was  cheered  by the  result in  what  is  currently  a rather downmarket climate. A2 Milk’s  share price rallied sharply after the company reported the  leap in profit which was driven by strong growth in its infant formula business in China. . . 

Integrated report shows strong progress for company against strategic objectives :

Ravensdown’s 2022 Integrated Report published today shows the fertiliser co-operative owned by primary producers is tracking well against its strategic objectives.

Highlights include:

  • A 12 per cent reduction in carbon emissions from fertiliser against the previous year.
  • A net reduction of scope 1 and 2 greenhouse gas emissions of 2,206 tonnes of carbon dioxide (14%) since the base year of 2018.
  • Confirming plans to convert the company’s Dipton, Southland coal-fired combustor to biomass eliminating at least 1100 tonnes of greenhouse gas emissions per year, almost 10 per cent of Ravensdown’s direct carbon footprint. . . 

 

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