Rural round-up

June 1, 2016

Intergenerational links forge deep connections to the land at Te Nihi Nihi – Gerald Piddock:

Six generations of family farming by the Muirs at Te Nihi Nihi in northern Waikato has led to a deep respect for the land, Gerald Piddock writes.

Farming and land stewardship is more than just about milk in the vat for Stuart Muir and Kim Jobson.

Muir is the fifth generation of his family to farm the land at Aka Aka in North Waikato. He can can trace his family back to when his Scottish ancestor Sandy settled on the land in the 1850s, droving cattle from the East Cape to the Auckland markets. . . 

New rules hit job prospects for Filipino dairy workers – Tess Brunton:

New rules introduced to protect Filipino workers from taking out huge loans to secure work in New Zealand are now being blamed for preventing those very people from landing jobs here.

Filipino Dairy Workers in New Zealand (FDWNZ) chairman Earl Magtiday said the rules, introduced by the Philippine Overseas Employment Agency (POEA) late last year, could cost Kiwi employers up to $10,000 to recruit a single Filipino worker.

“Employers are not keen to pay out so much money, especially now the payout is low,” Earl Magtiday said. . . 

Close watch on dairy auction – Dene Mackenzie:

The GlobalDairyTrade auction early tomorrow morning takes on more significance than usual because of Fonterra’s first indication of next season’s milk price being lower than the market consensus.

Fonterra last week indicated a milk price of $4.25 per kg of milksolids, lower than the informal market consensus of $4.60 kg/ms and the ASB expectation of $4.80 kg/ms.

“To us, the forecast is conservative as it appears to be based off recent spot dairy price with no future increases in global dairy prices built in,” ASB rural economist Nathan Penny said. . .

Consumers split on market choice – Rebecca Harper

A major change in the values driving consumer decisions means businesses have a choice about which side of the consumer fence they sit on, Massey University Business School’s Dr James Lockhart says.

Speaking at the 2016 Primary Industries Summit, Lockhart cited a Deloitte study, Capitalising on the Shifting Food Value Equation, that showed consumers are now split 50-50 into two groups – a traditional value group and an evolving value group. . . 

Stream work wins unlikely praise:

Bill Wilson smiles as he looks down on the Waikuku Stream: below him is a superb example of a restored lowland Canterbury stream.

The efforts of Wilson and his fellow farmers have recently been recognised with an environmental award from Fish & Game.

The Waikuku Water Management Group is the first recipient of North Canterbury Fish & Game’s ‘Working with Nature Award’ for outstanding efforts to improve local freshwater habitats. . .

ADF: no silver bullet solution to dairy crisis – Colin Bettles:

AUSTRALIAN Dairy Farmers CEO Ben Stapley says milk processors could help ease immediate pressure on dairy farmers by announcing next season’s prices now but has stressed there’s no silver bullet solution to the current crisis.

Mr Stapley said the support package announced by the federal government with $555 million in dairy-specific concessional loans and other measures was a “really good starting point”. . .

Indonesian live export scandal revisited – Colin Bettles:

FIVE years ago today, the ABC Four Corners program “A Bloody Business” exploded onto television screens throughout the nation, igniting a cataclysmic chain of events that catapulted Australia’s northern beef cattle industry into its deepest crisis.

The dramatic, emotion charged broadcast showed repeated images of graphic and intolerable animal cruelty, originally captured by animal rights group Animals Australia in mid-March 2011, from deliberately targeted Indonesian abattoirs.

Intertwined with vision also filmed by the ABC’s own investigation a month before, the expose zoomed-in on the gore and violence, to portray the live animal export trade as being systematically cruel and desperately needing government intervention to enact urgent reforms. . . 


Drink up

June 1, 2016

It’s World Milk Day – drink up!

 

Akata Das's photo.
Starts at 60's photo.

The Land's photo.

Pediatric oncall's photo.

 

 

Allrecipes.com.au's photo.


Rural round-up

May 31, 2016

Japanese visit source of their wool – Sally Rae:

Delegates from Japanese suit maker Konaka were treated to a Kiwi farm experience and more when they visited Closeburn Station this week.

Gimmerburn farmer Tony Clarke gave a karate demonstration, a passion of his and one of the reasons he is so interested in Japanese culture.

His family’s relationship with the Tokyo stock exchange listed company has been “going from strength to strength” since initial contact in 2012, he said. . . 

Demonstration farm turning to dairying:

Southland Demonstration Farm (SDF) at Wallacetown, near Invercargill, is changing from operating a leased farm to establishing the Southern Dairy Hub.

SDF chairman Maurice Hardie commended the vision of Pam Brock and her late husband Stephen for the provision of their farm, which had contributed immensely to raising the profile and productivity of dairy farming in Southland.

“Nine years ago, farm owners Stephen and Pam Brock made their Wallacetown dairy farm available to the southern dairy industry to showcase dairy farming in Southland. . . 

Farming through drought easier with software:

A farmer struck by two years of drought says farm management software is helping him make timely decisions and get better results.

Rob Lawson farms with his brother Willie and father Jim on the 2300ha family farm Moana, just north of Dunedin.

While many parts of the East Coast seem to have dodged the predicted El Nino, Rob says it has been “very typical” in their area over the past two years. In fact the rainfall has even been lower this year than the worst drought his father has experienced before now – in 1998 and 1999. “That’s East Coast farming, and that’s what we’ve got to contend with,” Rob says.

Despite the severity of the drought, so far they have not lowered their capital stock numbers at all. Rob puts that down to close monitoring of stock. .  .

Bank of China NZ unit funds Chinese-NZ mission to boost tradeBy Tina Morrison

 (BusinessDesk) – Bank of China, one of the country’s biggest lenders, funded 55 of its Chinese company clients to meet with 120 Kiwi agricultural businesses in a bid to grow trade and help meet its goal of becoming the largest Chinese bank in New Zealand.

The bank flew over two to three representatives from each Chinese company and hosted 348 matchmaking sessions, which have so far resulted in at least four Memorandums of Understanding between firms to work together. A similar venture for 20 second-tier e-commerce companies in November last year helped local manufacturers export US$3 million in the first quarter of this year, it said. . . 

Don’t let velvetleaf hitch a ride on Gypsy Day:

This Gypsy Day, farmers are being urged to avoid moving the invasive pest weed velvetleaf along with their stock.

June 1 marks the first day of the new dairying season where thousands of sharemilkers load their cows into stock trucks or herd stock on roads and move equipment and families to new farms.

The Ministry for Primary Industries (MPI) cautions that the mass movement of stock and equipment could also move velvetleaf seed to other properties. . . 


Rural round-up

May 30, 2016

Dairy farmers not  looking for handouts – Jamie Gray:

Farmers want better infrastructure, roads and greater access to broadband, but are not looking for any handouts from the Government in Thursday’s Budget.

Dairy farmers across the Tasman are looking to politicians to support them through the current milk price slump but their New Zealand counterparts do not expect any such treatment from the Budget.

Deputy Australian Prime Minister Barnaby Joyce, after a three-day trip to Victoria, last week called for a bipartisan approach to develop a dairy industry support package to help dairy farmers struggling with milk price downgrades from the two biggest players in that market – Murray Goulburn and Fonterra.

But New Zealand dairy farmers, many with memories going back to the farm subsidy days of the 1970s and early 1980s, don’t expect any special treatment from the Budget. . . 

Guy looks to trim access to Fonterra’s raw milk for big processors in DIRA review – Paul McBeth

 (BusinessDesk)Primary Industries Minister Nathan Guy is seeking feedback on proposals to reduce the amount of raw milk Fonterra Cooperative Group has to sell to large independent processors in the latest step towards full deregulation of the dairy sector.

The minister’s discussion paper on proposed changes to the Dairy Industry Restructuring Act was triggered last year when independent processors in the South Island passed the threshold needed to review the law. Guy’s preferred options would amend regulations for raw milk so Fonterra didn’t have to sell to large, export focused processors and reduce the volume of raw milk available to other processors by 60 percent over three years. Submissions close on June 29. . . 

New Zealand hoki fisheries meet international best practice standard for sustainability:

Following a report from the University of British Columbia (UBC), the Marine Stewardship Council (MSC) has confirmed that the New Zealand hoki fisheries meet the high requirements of the MSC Fisheries Standard, widely recognised as the world’s most credible assessment of the sustainability of wild-caught seafood.

In 2001, New Zealand’s hoki fisheries became the first large-scale whitefish fisheries to achieve MSC certification, and have since been re-certified twice in 2007 and 2012. To achieve certification, fisheries must demonstrate to a third party certifier that they: ensure the long-term sustainability of fish stocks; minimise impacts on the marine environment; and are well managed, with effective governance and enforcement systems. Certification requires robust evidence to demonstrate that requirements are met. . . 

It  all started at school for beef ambassador – Kate Taylor:

A high school careers expo led Gisborne’s Emma Pollitt into an agricultural career and a love of working with cattle.

The 23-year-old was named the Allflex Senior Beef Ambassador at the Future Beef event held during the 2016 Beef Expo in Feilding. Wellsford 16-year-old Cara Doggett is the new Allflex Intermediate Beef Ambassador.

Pollitt grew up in Gisborne city and attended Gisborne Girls’ High School, where a careers expo opened her eyes to the possibility of farming.  Pollitt says she was into horses at high school, in terms of local shows and pony club, but hadn’t thought about any career options. She was accepted into Taratahi in Masterton and completed a Certificate of Agriculture (Levels 1-3) in the first year, staying an extra six months to complete Level 4. 

Her first job was on high country station Loch Linnhe at Kingston, near Queenstown, for a couple of months. . . 

NZ Yarn targets high fliers with the ‘Viagra’ of carpet – Amanda Cropp:

A high tech process to make the “Viagra” of carpet that doesn’t mat down is helping NZ Yarn carve out a niche market for custom-made floor coverings among the jet set. 

The Christchurch company recently sent samples to two American companies that carpeted the oval office and presidential plane, Airforce One, and executive chair Ross Callon said getting NZ Yarn product into the White House would be quite a coup.

The company, which exports its entire output, is also targeting the specialist carpet market for private jets, super yachts and high end apartments.  . . 

Manawatu stock buyer is about  to retire after 45 years on the job – Jill Galloway:

Kerry Lewis has been a prime stock buyer for 45 years. Jill Galloway talks to him about the changes he has seen from the 1970s to today.

In the 1970s there was only one phone in the Kerry Lewis’ household. These days there are two phones, a fax and Lewis always has a cellphone at his side.

Keeping pace with technology has been part of the job for Lewis who is retiring after 45 years in the business as a “fat” stock buyer in Manawatu.

The buying veteran has been through a few companies in his time. . .. 

Seeka’s avocado policy pays off for its growers with improved returns:

Seeka Kiwifruit Industries’ commitment to its avocado growers has paid off with average export returns of $26.86 per export tray for the 2015-16 season, well up on last season’s $16.64 per export tray.

“Our growers have done a great job in producing really good quality fruit,” said Simon Wells, Seeka General Manager Grower Services.

“And because Seeka is fully integrated, we are able to control our supply chain and manage the quality of the fruit all the way through from orchard to market.” . . 

Sanford almost doubles first-half profit; shares rise to month high – Tina Morrison:

(BusinessDesk) – Sanford, the country’s largest listed fishing group, almost doubled its first-half profit as it focused on lifting values over volumes and benefited from lower fuel costs and a weaker New Zealand dollar.

Profit jumped to $18.8 million, or 20.1 cents per share, in the six months ended March 31, from $9.6 million, or 10.2 cents, a year earlier, the Auckland-based company said in a statement. Revenue from continuing operations edged up 1.3 percent to $215.6 million even as sales volumes sank abut 20 percent as the company extracted more value from its catch. . . 

Fonterra Co-operative wins major health and safety award:

Two innovative employee health and wellness initiatives from Fonterra Co-operative Limited brought the company the WorkSafe New Zealand and ACC sponsored Supreme Award at last night’s Safeguard Workplace Health and Safety Awards in Auckland.

The company won WorkSafe’s category award for the best initiative to address a workplace health risk with a programme addressing milk tanker driver fatigue. Fonterra also won another category award for its employee wellbeing initiative which created a village concept where facilities for all contractors and subcontractors on site were centralised in one spot. . . 


Feedback sought on DIRA changes

May 30, 2016

Minister for Primary Industries, Nathan Guy, is seeking feedback on options to amend the Dairy Industry Restructuring Act 2001 (DIRA) and its regulations.

The document is in response to the Commerce Commission’s report on the state of competition in the New Zealand dairy industry, which was released on 1 March 2016. By law the Minister is required to respond to this report within 90 days of receiving it. . . 

Among suggested changes are:

• Amending the Dairy Industry Restructuring Act (Raw Milk) Regulations 2012 so that Fonterra no longer needs to sell milk at a regulated price to large, export-focused processors, and the volumes of regulated milk available to all other processors are gradually reduced.

At the moment, Fonterra is required to sell to competitors at a regulated price, even though they are big enough to stand on their own feet.

• Amending the open entry provisions so that Fonterra no longer has to collect milk from new dairy conversions. . . 

This requirement has forced Fonterra to direct investment to more processing when it’s not necessarily the best way to maximise returns for farmers.

It also led to dairy conversions in places where no-one would have contemplated dairying. It has imposed greater costs on Fonterra which has no choice but to collect the milk and some also argue it’s led to farms converted in areas where the environment isn’t suited to dairying.

If legislation is the answer to business success then it’s almost always because the wrong question has been asked.

We can’t turn back the clock. Fonterra was formed and the DIRA passed to ensure it didn’t have an unfair advantage.

However, the clause requiring Fonterra to sell milk at a regulated price to its competitors is no longer needed and requiring it to pick up all milk it’s offered has proven to be a mistake.

 

 


Theo Spierings to resign?

May 30, 2016

The Australian reports that Fonterra CEO  Theo Spierings is about to resign:

Speculation is mounting on both sides of the Tasman that the Dutch chief executive of Fonterra, Theo Spierings, is about to depart the dairy powerhouse, with Air New Zealand chief executive Christopher Luxon earmarked as his most likely replacement.

Mr Spierings has headed New Zealand’s largest company for about five years; and last year he faced criticism as Fonterra’s Australian arm fell into loss making territory, triggering a sale of its Australian yoghurt and dairy dessert business to Parmalat Australia in a quest to return it to profitability.

But the talk of his departure comes after Murray Goulburn chief executive Gary Helou recently left the Australian dairy co-op following a shock profit downgrade.

The dairy industries in both Australia and New Zealand are wresting with the challenges surrounding a lower milk price, and in New Zealand, the difficulties are compounded by the higher New Zealand dollar. Speculation has emerged in the past month on both
sides of the Tasman that Mr Luxon has been earmarked as the next Fonterra boss, with a departure by Mr Spierings, who has 30 years experience in the industry, said to be close.

Sources close to Fonterra have dismissed the suggestions. . . 

International commodity prices aren’t under the control of a CEO.

A company culture and its communications are and both need improvement at Fonterra.

UPDATE:

An email to shareholders from Fonterra chair John Wilson says:

  • I have received a number of emails from farmers this morning concerned at the media speculation that  Fonterra’s CEO Theo Spierings plans to resign.
  • This rumour is completely untrue.
  • Farmers and shareholders would be the first to know if the CEO of their Co-operative had resigned.

 

 


Rural round-up

May 28, 2016

Westland ups its payout prediction for the coming season:

New Zealand’s second biggest dairy co-operative Westland Milk Products has released a budget for the 2016-17 dairy season of $4.55 – $4.95 per kilo of milk solids (kgMS).

Payout for the current season will be in the range of $3.80 – $3.90 per kgMS.

Westland will also start its payout advance payments for the 2016-17 season at $3.80 per kgMS, payable 20 September 2016. . . 

Westland tops Fonterra – Hugh Stringleman:

Dairy farmers received cold comfort when Fonterra announced a low forecast milk price of $4.25/kg milksolids for the new season from June 1, with an advance rate beginning at $3.01.

Analysts’ expectations had been for an opening price of $4.60 or more, as well as some upside when world product prices steadily improved as expected towards the end of 2016.

They said Fonterra seemed to base its opening forecast on spot market prices and not the generally expected improving trend. . .

Farm profits help rural students get ahead – Kate Taylor:

A hill country farm east of Dannevirke has helped hundreds of young people with their tertiary studies. Kate Taylor visited to find out how.

Sheep and beef farmer Max Buckendahl has called the Weber district home for almost three decades but when his 30th anniversary rolls around next year he’s off to see the country.

Together with partner Lynn Moss and a fifth-wheeler artic truck caravan, he’s going to work (and fish) in the warmer climates of Northland for half the year and travel New Zealand for the other half.

“There’s no particular reason to go now but I wanted to stay here 30 years first,” he says. . . 

Silver Fern Farms:Details of Special Meeting:

• Special Meeting date set for Monday, 11 July 2016

Dunedin 27 May 2016: Silver Fern Farms has today settled the statement from two of the 80 requisitioners, in a form that Silver Fern Farms is willing to include in its Notice of Meeting, and has set a date of Monday 11 July to hold the Special Meeting.

The Board has received a statement from two of the 80 requisitioners and notes that the original 80 requisitioners sought a meeting of shareholders to consider: . . 

Silver Fern shareholders to vote again on Shanghai Maling deal in July – Paul McBeth:

 (BusinessDesk) – Shareholders of meat processor Silver Fern Farms will have a second vote on whether to approve its planned tie-up with China’s Shanghai Maling Aquarius in July, though the board intends to go ahead with the deal irrespective of the outcome.

The cooperative today set the meeting for July 11 in Dunedin where shareholders will vote on approving the proposed partnership and restructure, where the Chinese firm takes 50 percent ownership of the meat processor in return for $261 million of cash, a special dividend, and funds to bankroll the cooperative for seven years. Shareholders backed the deal in October, but John Shrimpton and Blair Gallagher, representing a group of 80 shareholders, have since sought a special meeting to effectively reconsider the transaction. . . 

Federated Farmers welcomes Freshwater Improvement Fund:

Federated Farmers is commending the Government on a new $100 million Freshwater Improvement Fund to aid communities investment in solutions for water quality in New Zealand’s rivers, lakes and groundwater supplies, announced in yesterday’s budget.

Federated Farmers water spokesperson Chris Allen says the fund will help communities achieve desired water quality outcomes sooner.

“It’s going to take innovative thinking, time and money to get to the level of water quality our communities aspire too,” he said. . . 

TB continues to be challenge for next decade:

Funding for TB control is less than it has been in the past but Federated Farmers is confident the new programme will continue to make progress with a more efficient spend of the money.

Federated Farmers OSPRI (TB Free NZ) spokesman Anders Crofoot said: “The amended TB Plan is a shift in approach from containing the disease to active eradication in livestock and wildlife. To date we’ve been successful at removing TB from large areas of New Zealand. This means with improved operational efficiencies and targeted work, enabled by advances in modelling we should see new TB Plan targets achieved.

The programme carried out by OSPRI will aim to eradicate bovine TB from cattle and deer by 2026, and from TB-infected wildlife in New Zealand by 2055. . . 

Government Support for Landcare:

Yesterday’s Budget marks a return to stable base-line funding for the work of NZ Landcare Trust.

The Minister for the Environment is responsible for financial appropriations for the 2016/17 financial year which include approximately $27 million for grants to third parties for water initiatives, environmental management and education programmes.

A specific appropriation identified within ‘Vote Environment’ has been established for the promotion of sustainable land management practice through a national network of coordinators. These funds are available due to the reprioritisation of $800,000 from the Community Environment Fund. This transfer reflects joint Ministers’ decision to fund the NZ Landcare Trust activities for 2016/17 and out years. No expiry date for this resourcing commitment has been set and it is identified as an on-going commitment. . . 

DairyNZ’s commitment to supporting dairy farmers:

Industry body DairyNZ is committed to supporting dairy farmers following the announcement by Fonterra of an opening forecast Farmgate Milk Price of $4.25 per kgMS for the 2016-17 season.

“The $4.25 per kgMS is not a surprise, although the particularly low opening advance rate of $2.50 per kgMS plus capacity adjustment is tough for farmers who will find the winter particularly difficult,” says DairyNZ chief executive, Tim Mackle. “This is the lowest opening advance rate in at least the last 14 years.

“The break-even milk income required for the average farmer is $5.25 per kgMS, yet under this forecast scenario they’ll only be receiving $4.45 per kgMS all up in terms of farm income, including retro payments from last season and dividends. . .

PwC supports NZ Milk Futures to manage milk price risk:

The NZX today launched a NZ Milk Futures contract that will eventually provide the opportunity for large and small dairy farmers to proactively risk manage milk price movements and volatility.

“The new futures contract essentially replaces, and considerably enhances, the Guaranteed Milk Price (GMP) contract previously offered by Fonterra,” says Roger Kerr, PwC Partner and Treasury Advisor.

“While the new futures contract has been expected, it will need support from the market to ensure its viability. This means that industry players with resources available to make this commitment, should be encouraged to participate,” says Mr Kerr. . .


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