Rural round-up

November 27, 2015

Rural NZ areas sit on ‘powder keg’ as temperatures rise – Mike Watson:

Rural fire authorities are warning farmers and contractors to check for potential ‘hot spots’ inside machinery and farm equipment as temperatures rise in Marlborough.

Marlborough Kaikoura Rural Fire Authority chief fire officer Richard McNamara said the rural region was on a “powder keg’ as temperatures rise and hot northwest winds continued to dry vegetation causing significant risk of fire outbreaks.

“It is a real issue, and anyone working with farm machinery and equipment, such as welding or grinding, needs to be aware of the risk of sparks igniting any vegetation nearby,” he said. . . 

Many positives but RMA reforms don’t go far enough:

Federated Farmers cautiously welcomes the Resource Legislation Amendment Bill introduced at Parliament today, but is concerned that proposed reforms do not go far enough.

“What we have is a Bill that looks to make the RMA less costly and cumbersome, and these are positive changes,” says Federated Farmers’ Environment and RMA spokesperson Chris Allen.

“Federated Farmers believes the Bill provides for better plan making and we support the introduction of a collaborative planning approach as long as the right checks and balances are in place, so that this is a robust and productive process.” . . .

Alliance launches new products for Chinese market:

Meat cooperative Alliance Group is launching a new range of market-ready lamb, beef and venison products for the food retail market in China.

Alliance Group has reached an agreement with its in-market partner Grand Farm – China’s single largest importer of sheepmeat – to market the co-branded Pure South-Grand Farm products in the country from next year.

Marketing general manager Murray Brown said with meat volumes going into China becoming more difficult, the company was looking to add value to exports. . . .

Competitive future for “unbroken” NZ dairy – visiting global expert:

New Zealand dairy is well placed to compete in the global market as prices begin to recover in the coming 12 months, a visiting global dairy specialist has told localproducers.

Tim Hunt, New York-based global dairy strategist with international agribusiness banking specialist Rabobank, says while current market conditions are “extremely tough” for many local producers, the New Zealand dairy sector is “unbroken” and has the fundamentals in place to enjoy a strong, competitive future in the global dairy trade. . . .

Ongoing disruption and volatility in dairy, with winners and losers – Keith Woodford:

In the last two weeks we have seen increasing signs of further disruption and volatility in dairy. First, there was good news with Fonterra announcing that they had turned the corner In relation to enhanced corporate profitability. But then, only two days later, there was another decline on the (GDT Global Dairy Trade) auction – this time of 7.9 percent overall and 11 percent for whole-milk powder.

In the meantime, The a2 Milk Company announced that they were almost doubling their previous estimate of profitability for the coming year, triggering another increase in the share price. Since the start of November through to 24 November the price rose 60 percent on large volumes. . . 

Ruataniwha promoter seeks mix of equity, debt funding – Jonathan Underhill:

(BusinessDesk) – Hawke’s Bay Regional Investment Co, the developer and sponsor of the Ruataniwha Water Storage Scheme, says the $275 million project will be funded with a mix of equity and debt, and is likely to result in a secondary market for water contracts.

HBRIC, the investment arm of Hawke’s Bay Regional Council, is in talks with three potential investors and banks about funding. The council is putting up $80 million for an equity stake in a yet-to-be formed irrigation company. The $195 million balance will come from outside investors, bank debt and an expected contribution from the government’s Crown Irrigation Investments, which acts as a bridging investor for regional water infrastructure developments. . . 

Cellphone helps save house from Australian bushfire:

An Australian man who saw his farm “explode in a fireball” on CCTV cameras at the property says his house survived because he used his phone to activate a sprinkler system from the other side of the country.

Charles Darwin University vice chancellor Professor Simon Maddocks said the reason his house at the 45-hectare wheat farm on the outskirts of Hamley Bridge escaped the fire was because of his neighbours – and the fact he activated an irrigation system at the property by remote control from Darwin.

Two people have been confirmed dead and more than a dozen injured in the fires which continue to burn north of Adelaide. . . 

Consultation on freshwater management ideas planned:

A report today published by the Land and Water Forum on the next steps needed to improved management of freshwater will be carefully considered by Government and help contribute to a public discussion paper to be published next year, Environment Minister Dr Nick Smith and Primary Industries Minister Nathan Guy said today. 

“The Government has an ambitious programme of work on improving New Zealand’s freshwater management.  These ideas on requiring good management practice, of how we can maximise the economic benefit of water within environmental limits, integrated catchment management, stock exclusion and enabling more efficient use of water are a further contribution on how we can achieve that,” Dr Smith says.

“I acknowledge the Forum’s significant efforts in tackling difficult policy challenges and we welcome their recommendations,” says Mr Guy. . . 

Irrigation New Zealand Welcomes 4th LAWF Report:

Irrigation New Zealand welcomes the fourth Land and Water Forum (LAWF) Report.

“The diverse group of forum members have spent a lot of time collaborating to reach the additional recommendations,” said Andrew Curtis, CEO of Irrigation New Zealand. “This has resulted in constructive advice to Ministers for the development of freshwater policy. It’s now time for the government to act.”

“Freshwater is a natural and recurring resource we need to protect, and is a national asset which needs to be properly and carefully managed to bolster our agricultural-led economy. . . .

Barbara Stuart returns to the NZWAC board:

Nelson farmer and outdoor-access supporter Barbara Stuart has been appointed to the Board of the New Zealand Walking Access Commission.

The appointment heralds Mrs Stuart’s second tenure on the board, where she previously served from 2008 to 2011.

New Zealand Walking Access Commission chairman John Forbes said Mrs Stuart had long been a champion of walking access and her return was very welcome. . . .

Farm Environment Trust’s Annual Report Highlights Growth:

The New Zealand Farm Environment (NZFE) Trust and its flagship event, the Ballance Farm Environment Awards, have celebrated another successful year.

Now available on the Trust’s website, the 2015 annual report outlines the organisation’s continued growth through 2015, with another region signing up to the Ballance Farm Environment Awards (BFEA).

“We are delighted to have the Auckland region in the Awards for the 2016 programme,” said NZFE Trust chairman Simon Saunders.

“Having Auckland on board is a huge step towards being able to offer a complete national programme. We are almost there.” . . . 

Rural round-up

November 12, 2015

Fonterra’s silent majority hold key to shareholder vote on number of directors:

Fonterra shareholders who want to send a message to their company have been encouraged to support the proposal to reduce the number of directors on the company’s board.

Colin Armer and Greg Gent, the two former directors behind the proposal, say that shareholders are the only people who own the company’s constitution and the only people who have the right to change it.

Mr Gent said he wanted to encourage those who do not normally vote to do so this time. . . 

Improving resource base key to sustainable growth:

Improving the quality of our natural resources is the key to sustaining economic growth in our primary sectors right across regional New Zealand, says Economic Development Minister Steven Joyce and Primary Industries Minister Nathan Guy.

Ministers Joyce and Guy today launched the updated Building Natural Resources chapter of the Business Growth Agenda with an emphasis on lifting primary sector productivity while improving our environmental outcomes at the same time.

“Our natural resources are central to achieving growth and more jobs in New Zealand’s economy, especially our regional economies. We are committed to using new scientific techniques and innovations, alongside infrastructure developments in information technology and water storage, to achieve both productivity gains and environmental gains,” says Mr Joyce. . . 

NZ’s primary sector leaders of tomorrow still bank on brand Kiwi, want deeper debate on GMOs – Jonathan Underhill:

(BusinessDesk) – New Zealand’s emerging agri-business leaders say affluent consumers in 2035 will pay a premium for products sold with a strong provenance story and that are more tailored to their needs, according to KPMG’s Agribusiness Agenda 2015.

The accounting firm asked a range of primary sector organisations to nominate emerging leaders and more than 50 of them – scientists, company executives, farmers, government officials and marketers – met for a summit in Auckland in September and were asked to share their vision for the sector in 2035. They were also surveyed on their priorities and the results compared to a separate poll of current leaders. . . 

RBNZ asks banks to stress test dairy loans, confident they can weather downturn – Paul McBeth:

(BusinessDesk) – New Zealand’s major lenders are able to cope with a protracted downturn in the dairy sector, which the Reserve Bank estimates could cause credit losses of as much as 18 percent over a four-year period.

The central bank has requested the five biggest lenders to the dairy sector – ASB Bank, ANZ Bank New Zealand, Bank of New Zealand, Westpac New Zealand and Rabobank New Zealand – to stress test their portfolios, which the Reserve Bank sees as a growing risk to the health of the nation’s financial stability. The regulator was encouraged by “realistic provisions” set aside for the portfolios, and its modelling suggests a sustained downturn would be manageable for the wider system. . . 

Dairy farming not fanning Indonesian forest fires:

Federated Farmers echoes the concerns of Greenpeace and others regarding the devastation and environmental impact of forest fires that have burned for more than three weeks across Indonesia, but says the use of Palm Kernel Expeller (PKE) as a supplementary feed source for dairy cows is not to blame.

“It’s important to remember that PKE is not the reason for these fires or tropical deforestation. It is a by-product of the extraction of palm oil and palm kernel oil which would otherwise be treated as waste,’ says Federated Farmers Dairy Industry Chair Andrew Hoggard.

“Dairy farmers are taking this waste product and making use of it as a supplementary food source, used mainly as an alternative to pasture during adverse weather such as droughts, to maintain the welfare of herds and the productivity of New Zealand’s vitally important dairy industry.” . . 

Panning for Pink Gold: Fonterra Expands Capacity in High-Value Lactoferrin:

It takes 10,000 litres of milk and incredibly sophisticated technology to make just one kilogram of lactoferrin – a high-value ingredient that Fonterra has recently doubled its capacity to produce.

The new $11 million upgrade of the lactoferrin plant at the Co-operative’s Hautapu site is now running at full volume, helping to meet growing worldwide demand for the product affectionately known as ‘pink gold’.

Lactoferrin is a naturally occurring iron-binding protein found in milk and is in high demand, particularly in Asia, for a wide range of nutritional applications from infant formula through to health foods and yoghurts. . . 

Enter Dairy Industry Awards and go on holiday:

Those that enter the 2016 New Zealand Dairy Industry Awards can win a holiday of their choosing – so long as they enter soon.

Entries in the 2016 New Zealand Share Farmer of the Year, Dairy Manager of the Year and Dairy Trainee of the Year competitions are now being accepted online at close on November 30.

Those that enter by midnight on November 20* will go into the Early Bird Entry Prize Draw and be in with a chance to win a share of $12,000 in travel vouchers and spending money. . . 

Rural round-up

November 3, 2015

Advertising executive’s shock speech tackles farmer depression – Rachel Thomas:

The final speech of the day was supposed to be a light-hearted talk about city boys working in the country.

Instead, advertising executive Matt Shirtcliffe stood up in front of a conference of roughly 120 farming and business folk and told them his wife was dead. 

“Depression took her life.” . . 

The presentation is here.

Kathryn Ryan interviewed Matt Shirtcliffe here.

India farmers’ ‘seeds of suicide’: 200-year old story behind a modern tragedy – Aneela Mirchandani :

In 1998, a farmer in Warangal, India killed himself after a failed crop by drinking pesticide. His body was found hours later lying amidst his one-acre crop, which was overrun by worms. This suicide was one of many that were reported on at the time; the incidence was particularly high among cotton farmers. It set off much hand-wringing in the press: how was India failing its farmers?

The stated cause of this farmer’s suicide was debt, and many anti-GMO activists have linked a spate of similar tragedies to the introduction of GMO cotton — although the genetically engineered crop was not introduced into India until 2002. But if one looks deeper, one can see the real cause: modern crops and a modern economy abutted against a rural population that had changed little since the nineteenth century. . . 

“We farm!”  Wait…  What?  (Our cows explained) – Uptown Girl:

“What do you do?”  Sometimes I identify myself with a lengthy description of my career in Ag finance, but often I just leave it at, “We farm!”
I also find myself using “We farm” as an explanation as to why I am alone so often at gatherings.  But the more people I talk to, the more I realize that not everyone knows what I mean when I say, “We farm”.  So I am going to explain exactly what “farming” means to my family.
Our farm consists of our cows, our sheep, and our row crops.  I will cover each of these over the next few posts, but will start with our cows.
One of my favorite parts of our farm is our cattle herd.  We have what is commonly called a “Cow/Calf operation” – meaning we maintain a group of cows who will raise a baby calf each year, and then sell the baby at weaning time.  . . 

New regulations to protect oceans:

New Government regulations to manage the waste and pollution within New Zealand’s vast Exclusive Economic Zone (EEZ) come into effect today, Environment Minister Dr Nick Smith says. 

“These new regulations cover discharges of pollutants and waste from offshore installations like oil rigs and ships in the six million square kilometres of ocean in New Zealand’s Exclusive Economic Zone and Continental Shelf. They provide clear rules that protect the ocean environment and are the final stage of implementing the Government’s new environmental law covering the ocean,” Dr Smith says.  . . 

Glerups extends wool contract with NZ Merino through 2017 – Tina Morrison:

(BusinessDesk) – Glerups, the Danish woollen slipper maker, has extended its contract with New Zealand woolgrowers to meet increased demand for its product.

The company inked a 2017 contract through the New Zealand Merino Company for 120 tonnes of wool for about $1.5 million, during a visit to New Zealand this week, and expects to return next year to secure a 2018 contract, said Glerups supply chain manager Jesper Glerup Kristensen, the son of the company founder Nanny Glerup. It also extended its 2016 contract by 20 tonnes to 100 tonnes, up from 80 tonnes this year. . . 

Red Meat Sector welcomes decision to negotiate an EU-NZ Free Trade Agreement:

Beef + Lamb New Zealand (B+LNZ) and the Meat Industry Association (MIA) are delighted that the European Union and New Zealand are set to progress negotiations for a Free Trade Agreement, as announced by Prime Minister John Key in Brussels.

The European Union (EU) is a very significant export market for New Zealand red meat products, worth nearly NZ$1.9 billion for the year ended December 2014. The EU is New Zealand’s largest market by region for sheepmeat exports, and second-largest for chilled beef and wool exports. . . 

Appointment of Independent Director to Fonterra Board:

Fonterra Co-operative Group Limited announced today the appointment of a new Independent Director Clinton Dines who will take up the Board position made vacant when Sir Ralph Norris steps down at the Annual Meeting on 25 November.

Chairman John Wilson said world-class governance is one of the Board’s top priorities, and the Co-operative needed directors with a broad range of talent and depth of business experience.

“The Board welcomes Mr Dines, an Australian, who has outstanding business and governance credentials. . . .

Fonterra Welcomes Progress towards NZ EU FTA:

Fonterra has welcomed today’s announcement in Brussels that Prime Minister John Key will begin discussions on a Free Trade Agreement with the European Union.

“This is an important first step towards a comprehensive and high-quality free trade agreement with the EU. We have free trade agreements with almost all of our other major trading partners, so this really is the missing piece,” said Miles Hurrell, Group Director of Co-operative Affairs. . . 

Wine Industry welcomes prospect of free trade with the EU:

New Zealand Winegrowers welcomes the announcement of a proposed Free Trade Agreement (FTA) between New Zealand and the EU.

Improved access into the EU would be hugely beneficial to industry growth, commented Philip Gregan, New Zealand Winegrowers CEO. ‘An FTA with the EU would be a great outcome for New Zealand’s wine industry. The EU, as a whole, represents our single largest market, with exports totalling over $460 million and representing in excess of 30% of total wine exports. . . 


Rural round-up

October 14, 2015

Shareholders seek board changes for leaner, fitter Fonterra:

Two Fonterra shareholders and former Fonterra board members are calling on Fonterra shareholders to reduce the number of directors in a move to improve the company’s performance.

The two, Greg Gent and Colin Armer, have put forward a notice of proposal to the company’s annual meeting in late November seeking shareholder support for a reduction of board members from 13 to nine.

“We all want our cooperative to be more globally competitive and successful with a clear strategy to achieve that. Our farming businesses and livelihoods depend on that,” says Greg Gent who was formerly deputy chairman of the company. . . 

Forest & Bird congratulates New Zealand police on 1080 arrest:

Forest & Bird congratulates the New Zealand police for making an arrest as part of their investigation into a 1080 threat to infant formula late last year.

“This threat wasn’t just a challenge for our dairy industry and exports, it also had the potential to damage our ability to control introduced predators that are killing our native wildlife” explained Kevin Hackwell, Group Manager of Campaigns and Advocacy at Forest & Bird.

“We absolutely support the continued use of 1080 in New Zealand’s forests. It’s the most sensible, cost-effective way to reduce pest numbers and allow native forests and wildlife to thrive” said Mr Hackwell. . .

Alliance Group to offer farmers loyalty payments – Gerard Hutching:

Alliance Group will offer loyalty payments this season to farmer shareholders in what some observers are saying are the first shots in a procurement war.

The offer comes with the caveat that farmers have to supply 100 per cent of all their livestock or 100 per cent of one species.

The reward for farmers supplying 100 per cent of their lambs is an additional 10c per kilogram per animal.

Chief executive David Surveyor said the co-operative was forecasting $100 for an 18kg lamb for the 2015-2016 season. . . 

Farmers and growers hope to avoid another drought – Gerard Hutching:

Some South Canterbury farmers and growers are shying away from being dependent on Lake Opuha water and are putting in their own bores.

Jo and Steve Malone, who own Redwood Cherries and Berries on the Pleasant Point Highway, lost thousands of dollars during this year’s disastrous drought.

“We are going to drill for water because we don’t want to be reliant on the lake. We are waiting for the council to give us consent,” Jo Malone said.

They were not as big users of water as dairy farms. Their cherries had not received irrigated water for the last five years, but it was vital for the strawberries. . . 

Grain payments spell risky business – Alisha Fogden:

MAKING seven-day payment terms standard was a contentious topic in the managing market risk session at the recent Australian Grain Industry Conference in Melbourne.

Grain Trade Australia chief executive officer Geoff Honey, who was guest speaker, said that could potentially reduce competition.

“There are organisations that buy grain from you that sell it to an end-user that is on a 30-day end-of-week delivery,” he said.

“If it became seven-days EOW standard across everybody, you could be removing a layer of competition. . . 

A cure for vitamin B6 deficiency :

In many tropical countries, particularly in sub-Saharan Africa, cassava is one of the most important staple foods. People eat the starchy storage roots but also the leaves as a vegetable. Both have to be cooked first to remove the toxic cyanide compounds that cassava produces.

But the roots have a disadvantage: although rich in calories, in general they contain only few vitamins. Vitamin B6 in particular is present in only small amounts, and a person for whom cassava is a staple food would have to eat about 1.3 kg of it every day for a sufficient amount of this vital vitamin.

Serious deficiency in Africa

Vitamin B6 deficiency is prevalent in several African regions where cassava is often the only staple food people’s diet. Diseases of the cardiovascular and nervous systems as well as are associated with vitamin B6 deficiency.

Plant scientists at ETH Zurich and the University of Geneva have therefore set out to find a way to increase vitamin B6 production in the roots and leaves of the cassava plant. This could prevent vitamin B6 deficiency among people who consume mostly cassava. . . 

Rural round-up

October 2, 2015

Chinese deal vital, SFF says – Sally Rae:

Silver Fern Farms could be facing insolvency if shareholders do not approve a 50:50 joint venture with Chinese company Shanghai Maling.

Voting has opened on the proposal before a meeting of shareholders at Dunedin’s Forsyth Barr Stadium on October 16.

Shanghai Maling, a subsidiary of state owned food giant Bright Food Group, is proposing to take a 50% stake in Silver Fern Farms, in return for an investment of $261million. . . 

Hold off on Silver Fern vote, farmers urged –  Sally Rae:

Farmers are being urged to hold off voting on the Silver Fern Farms joint venture deal with Shanghai Maling, with hints that ”concrete” alternatives will emerge.

Voting is under way and closes at 10.30am on October 14, before a special meeting in Dunedin on October 16, where two resolutions will be voted on.

As well as the Shanghai Maling proposal, the meeting will also consider the shareholder resolution, promoted by Heriot farmer Allan Richardson and John Cochrane, from Clinton, seeking full analysis of the benefits and risks of a merger with Alliance Group. That resolution was not supported by Silver Fern Farms’ board. . . 

Bright lets sparks fly – Alan Williams:

Bright Dairy group is an excellent strategic investor in Synlait Milk, the latter’s chairman Graeme Milne says.

“It’s more than just money they bring.

“They’ve got the knowledge and capability to help us make good decisions.”

Shanghai Maling, the proposed new investor for Silver Fern Farms, is part of the wider Bright Dairy-Bright Foods group. . . 

Super-drone sprayer comes with risks -Robin Martin:

The first unmanned helicopter certified to spray chemicals in New Zealand could ultimately save back-country farmers thousands of dollars but it comes with a hefty price tag – and a safety warning. 

The Yamaha RMAX is a beast by drone standards, powered by a 260cc engine and weighing in at close to 100 kilograms.

Yamaha business development manager Geoff Lamb and his team put the chopper through its paces for a gathering of curious farmers, spraying contractors and radio-controlled aircraft enthusiasts at a Lepperton farm in Taranaki this week. . . 

Fonterra boss offers $4m salary freeze:

The chief executive of Fonterra has asked for his multi-million dollar salary to be frozen this year as the co-operative goes through major cost cuts and slashes hundreds of jobs.

Theo Spierings requested the freeze on his base salary on the same day Fonterra announced it was slashing hundreds more jobs as part of a business shake-up, taking total layoffs to 750.

That came just days before the company released its annual result.

A spokesman said Mr Spierings went to a meeting of Fonterra’s people, culture and safety committee on 21 September and requested that his base salary of about $4 million for the 2015/16 year be frozen. . . 

Nutrient loss under the spotlight:

New Zealand’s shift from a pasture-based model to high feed-input dairy farms will come under the microscope in a joint research project involving Ballance Agri-Nutrients, AgResearch, DairyNZ and Tatua, in partnership with the Government’s Sustainable Farming Fund initiative.

The two year project, led by AgResearch’s Dr Stewart Ledgard, will use case study farms varying in intensity of feed use to examine effects of their system changes over the last decade on emissions, production and profit as well as testing options for improving their sustainability.

“Locally there is strong interest in understanding implications for water quality of dairy intensification through increased use of supplementary feeds and how effects can be minimised, while internationally there is a desire for food products to be produced with efficient use of resources and reduced wider environmental impacts”, says Dr Stewart Ledgard. . . 

Aussies nab heaviest fleece record:

Well it’s official New Zealand has been fleeced by the Australians ..who now hold the world record for the heaviest fleece shorn off a merino.

The Australians were quick to yell they had found a wild merino near Canberra in early September with a fleece which weighed in at 40 kilograms.

Otago’s ‘Shrek the sheep’ held the record up until last year when another wild merino – dubbed Big Ben – was found in the Mackenzie Country with a fleece weighing 28.9 kgs. . . 

Steady wool market:

New Zealand Wool Services International Limited’s C.E.O, Mr John Dawson reports that the more restricted wool type offering in the North Island sale of 6,165 bales saw a 97 percent clearance and a generally steady market.

The weighted indicator for the main trading currencies firmed 1.66 percent compared to the last sale on 24th September only impacting on the finer end of the offering.

Mr Dawson advises that the stronger New Zealand dollar and limited interest in the Fine Crossbred longer wools saw prices ease 2 to 4 percent with shorter types better supported with pries 1 to 3.5 percent softer in local terms. . . 

Rural round-up

September 29, 2015

PM announces Kermadec Ocean Sanctuary:

Prime Minister John Key has announced the creation of a 620,000 km2 Ocean Sanctuary in the Kermadec region, one of the most pristine and unique environments on Earth.

“The Kermadec Ocean Sanctuary will be one of the world’s largest and most significant fully-protected areas, preserving important habitats for seabirds, whales and dolphins, endangered marine turtles and thousands of species of fish and other marine life,” Mr Key says.

“It will cover 15 per cent of New Zealand’s Exclusive Economic Zone, an area twice the size of our landmass, and 50 times the size of our largest national park in Fiordland. . . 

John Key's photo.

“Pretty damned exciting news” say Kermadec campaigners:

Champagne corks popped as the news was released that the Kermadec region has become an ocean sanctuary. Kermadec campaigners Forest & Bird, The Pew Charitable Trusts, and WWF-New Zealand were together when they heard the news.

The Prime Minister John Key made the momentous announcement at the United Nations General Assembly in New York. The creation of the Sanctuary once again puts New Zealand at the forefront of marine protection on the international stage.

The Kermadec Ocean Sanctuary is located in the South Pacific Ocean about 1,000 km northeast of the Bay of Plenty New Zealand. The area is one of the most geologically diverse in the world. It contains the world’s longest chain of submerged volcanoes and the second deepest ocean trench with a depth of 10 kilometres. . . .

Proposed Kermadec Ocean Sanctuary:

With no forewarning from Government the industry needs time to consider the full implications, Seafood New Zealand Chairman George Clement said.

“The seafood industry is committed to rational and effective marine conservation measures. These include a representative network of BPAs (Benthic Protected Areas) established at the industry’s behest and implemented throughout 30 per cent of the Exclusive Economic Zone, covering an area larger than the Kermadecs. . . 

Tatua Cooperative beats market with $7.10/kgMS payout for 2015 – Jonathan Underhill:

(BusinessDesk) – Tatua Cooperative Dairy Co, the Tatuanui-based dairy company founded 100 years ago, set the 2015 payout for its farmer suppliers at $7.10 per kilogram of milk solids, the highest of any New Zealand processor, while affirming a drop in payout for 2016.

Revenue rose to $286 million in the 12 months ended July 31, from $266 million a year earlier, the company said in a statement. Earnings before milk payout, retentions and tax fell to $121.2 million, from $136.4 million a year earlier.

Chairman Stephen Allen said the decline in pretax earnings reflected an increase in overall milk collection from farmers in the latest year and the “dramatic decline” in dairy prices. It equates to a payout $7.73/kgMS before retentions and tax. The company retained 63 cents/kgMS before tax. . . 

Migrant worker scam uncovered:

More than 30 Filipino workers reportedly paid $15,000 to obtain false documents clearing them to work on New Zealand dairy farms.

Immigration New Zealand has confirmed multiple Filipino workers have provided false and misleading information when applying for visas here.

Immigration NZ assistant general manager Peter Elms said the department started scrutinising visas more closely after discovering multiple issues, relating to claimed work experience and qualifications.

The department has not confirmed the number of cases that it is aware of, nor whether it was investigating, but the Philippine government said it was investigating at least 30 cases. The Philippine government’s Overseas Employment Administration is also looking into the claims. . . 

Alliance says merger with Silver Fern would risk creating ‘beached whale’ as rival tackles over-capacity – Jonathan Underhill:

(BusinessDesk) – Alliance Group chairman Murray Taggart says any merger with Silver Fern Farms risks creating a “big beached whale” of the New Zealand meat industry because its rival needs the capital offered by China’s Bright Food just to rationalise plant capacity and reduce its debt burden.

Bright Foods’ Shanghai Maling Aquarius unit has offered to invest $261 million cash in Silver Fern Farms (SFF) to become a 50-50 partner with the Dunedin-based meat company in a deal that would leave the business debt free and with funds to upgrade plants, spend more marketing higher-value meat products and provide a new route into China.

The injection of funds has stoked speculation a stronger SFF could subsequently dictate terms for a tie-up with Alliance, something the two firms have failed to achieve in a decade of sporadic talks. Alliance says it made an offer to SFF prior to the rival embarking on its capital-raising process and had “worked hard to engage with SFF and discuss opportunities for industry consolidation” over the past 10 years. . . 

Partnering with China – Keith Woodford:

This last week I have been in Beijing at the NZ –China Council Forum. Led by Minister Steven Joyce and co-chaired by Sir Don McKinnon, it has been all about building partnerships.

There were about fifty New Zealanders there, including industry folk and staff from the relevant Government ministries – Trade and Enterprise, Foreign Affairs and Trade, and Primary Industries. And there was a similar number of Chinese people from industry and their government.

Now to some people, the idea of building partnerships with China is anathema. Ten days ago I was involved in a passionate debate in Wellington about just that topic. It is all right to trade with the Chinese, so the argument went, but we should not think of partnering. The Chinese are different, and we should not in any way imply support for their way of doing business. . . 

Surge in water data for World Rivers Day:

To mark World Rivers Day this Sunday, regional councils are releasing their latest water quality data on the Land, Air, Water, Aotearoa website, which this year includes lake quality monitoring.

Launched in March 2014, began reporting water quality results at 1100 river sites. Since then, it has expanded into coastal bathing beaches and water allocation, tripling the number of monitoring sites for which data is available.

From this weekend, users will also be able access water quality data for monitored lakes, providing a more complete picture of the quality of New Zealand’s freshwater.

Stephen Woodhead, chair of the regional sector group of Local Government New Zealand, said that public debate showed that rivers and lakes were  important to New Zealanders and regional councils took their role in water stewardship very seriously. . . 

Drought-hit farmers sow grass seed donations – Annabelle Tukia:

Ten north Canterbury farmers are about to get some relief from the drought that has plagued their region for the past year after a group of business owners got together to try to ease the financial burden of the dry spell.

It’s been a tough 12 months on Damian Harrison’s Cheviot farm.

“This drought has been like driving in a tunnel, and you drive and drive and drive and never see daylight at the end,” says Mr Harrison.

But today at last there was a little ray of hope, in the form of Murray Stackhouse and his tractor and drill. The local contractor, along with a machinery company, have got together and are re-sowing grass onto 10 drought-stricken north Canterbury farms for free. . . 

Indonesia reopens door to NZ beef imports:

Indonesian media are reporting that trade officials there have done a u-turn on efforts to cut down imports of beef from New Zealand.

The Indonesian Trade Ministry has issued permits for the State Logistics Agency to import as much as 10,000 tonnes of beef from New Zealand.

The ministry said it wanted to stabilise meat prices in the country, and New Zealand was chosen because the price of beef from here was lower than the cost of Australian meat. . . 

NZ Honey fights MPI over alleged health claims on Manuka Doctor, Manuka Pharm branding – Suze Metherell:

(BusinessDesk) – New Zealand Honey International, the closely-held honey products maker, wants a judicial declaration on whether its trademarks Manuka Doctor and Manuka Pharm amount to health claims after the Ministry of Primary Industries withdrew export approvals, blocking the firm’s sales into certain markets.

MPI has been cracking down on the manuka honey industry amid international criticism there was more manuka honey coming out of the country than New Zealand actually produces. With no industry consensus on what constitutes manuka honey, MPI introduced an interim labelling guideline in July 2014 to give the industry clarity and protect consumers from false claims, as well as to try to improve credibility of the manuka products. . . 

Calf collection paves way for fertility project:

A huge logistical exercise that involved collecting hundreds of calves from farms all over the North Island has set the scene for a ground-breaking research programme aimed at lifting fertility rates in the dairy industry.

In recent weeks, heifer calves from 619 farms across Waikato, Bay of Plenty, Taranaki, Manawatu and Hawke’s Bay have been collected so that they can be reared and milked together as one herd. The “Animal Model” research herd will comprise equal numbers of Holstein Friesian calves with very high and very low fertility genetics, carefully selected from contract matings in spring last year and purchased from farmers by DairyNZ. . . 

Rural round-up

September 9, 2015

Bright Foods tipped as Silver Fern bidder – Fran O’Sullivan:

Chinese Government backed Bright Food is understood to be the party which has been in negotiations with Silver Fern to take a stake in the NZ meat company.

Bright is a wholly Government-owned State Owned Enterprise.

But the negotiating vehicle is understood to one of Bright’s four listed subsidiaries. One of those subsidiaries – Bright Dairy & Food – took a majority stake in Canterbury milk processor Synlait Milk for $82 million in 2010.

Late last week speculation suggested the proposed deal would be announced today by Silver Fern Farms. . .

Waikato farmer wearing undies and gumboots chases burgler – Florence Kerr:

An attempted robbery was thwarted by an angry Waikato farmer who chased down the not-so-clever burglars wearing his undies and his gumboots.

Fed-up with continued thefts from his and neighbouring farms, Ohaupo farmer Arnold Reekers was forced into action in the early hours of Sunday morning when he heard his quad bike beeping as the thieves attempted to hot-wire the vehicle.

And despite having a knife pulled on him by the would-be thieves, Reekers wouldn’t hesitate to do it again saying continued thefts would drive farmers to take up arms despite pleas from the police for people not to take matters into their own hands.  . . 

Agility to drive value – Hugh Stringleman:

Fonterra chairman John Wilson has hit back at repeated criticism the huge co-operative has lost its way or not delivered on the promise it once held.

“I do sense the frustration of farmers with critics who come out of their holes when global milk prices are low,” he said ahead of the annual results release on September 24.

Wilson is one of three farmer-directors who retire by rotation this year to face the farmers’ vote in October. . .

New Zealand sheepmeat – maximising the cut:

Softer overseas demand for New Zealand sheepmeat – particularly out of China – which has curtailed New Zealand sheepmeat producers’ returns in recent months, has largely been driven by decline in demand for the forequarter portion of the carcase, says agribusiness specialist Rabobank in a recently-released report.

The report, New Zealand Sheepmeat: Maximising the Cut – Breaking It All Down, says it is important for producers to understand the breakdown of the animal and market demand for specific products as it ultimately determines the farmgate price. 

“While farmers are paid on a per head or per kilogramme basis, the price they receive is calculated from the summation of all the products derived from the animal – from the extensive array of cuts, to the offal, co-products, skin and wool,” says report author and animal protein analyst, Matthew Costello. . .


Foreign investment decisions could be fast-tracked – Brook Sabin:

The Government is considering speeding up foreign investment decisions, but Finance Minister Bill English is giving a cast-iron guarantee the rules won’t be watered down.

The Overseas Investment Office (OIO) considers whether to approve high-value and sensitive land investments from overseas buyers. It then makes a recommendation to the Government, which ultimately decides whether the sale can proceed.

The most high-profile sale currently before the OIO is the 14,000ha Lochinver Station, which China’s Shanghai Pengxin wants to buy. The application has been held up for more than a year, but the Government is finally close to deciding whether it will go ahead. . .

Investment reduces AsureQuality profit:

AsureQuality posted a 9% drop in 2015 annual profit and expects a further decline in 2016 as the state-owned food safety company steps up investment for future growth.

Profit fell to $11.4 million in the 12 months ended June 30, from $12.5m a year earlier, the Auckland-based state-owned enterprise said in a statement posted on the Treasury website. It expects profit to decline further to $10.6m in 2016 before increasing to $12m in 2017, according to its 2015-2018 statement of corporate intent. . .

Organic farming is actually worse for climate change than conventional farming –  Deena Shanker:

Organic food is booming right now, as more and more people choose what they perceive to be healthier, more environmentally friendly food.

But a new study published in the June issue of Agriculture and Human Values suggests that organic farming, as it currently stands, is not as sustainable as it could be, and when done on a large scale, even produces more greenhouse gases (“GHGs” are heat-trapping compounds that contribute to climate change) than its conventional counterpart.

To determine the difference in emissions of organic agriculture versus conventional, University of Oregon researcher Julius McGee used state-level data, available through the United States Department of Agriculture and the Environmental Protection Agency, that showed agricultural GHG emissions from 49 states from 2000 to 2008. . .  Hat tip: Utopia

Biofilms in the Dairy Industry:

Recent high-profile contamination scares within the international food industry have highlighted the need for best practice when it comes to dairy manufacturing. After 15 years of research into dairy biofilms, there is now a cornerstone publication for a better understanding of the current science, and ways to reduce the occurrence of biofilms associated with dairy manufacturing.

Biofilms in the Dairy Industry provides a comprehensive overview of biofilm-related issues currently facing the New Zealand and international dairy sector. . . 


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