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. . . 

Rural round-up

September 2, 2015

Tap turned on at Hororata irrigation scheme – Annabelle Tukia:

The tap has officially been turned on for one of the country’s largest irrigation projects.

The Central Plains water scheme will irrigate more than 20,000 hectares of Canterbury farmland.

One Hororata farmer says the massive scheme, which runs off the Rakaia River, will enable him and his neighbours to completely transform their operations.

Rodney Booth has waited a long time to turn the irrigators on at his Hororata farm. . . 

Dairy and travel still our largest export earners:

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015, Statistics New Zealand said today.

In the year to June 2015, total exports of goods and services were $67.5 billion, while total imports were $65.1 billion.

Dairy remains New Zealand’s largest export commodity, earning $12.0 billion in the June 2015 year. However, this was down from $15.8 billion in the June 2014 year. Spending by international visitors to New Zealand (travel exports) increased $2.4 billion, reaching $11.7 billion in the June 2015 year.

“Dairy and travel are New Zealand’s biggest export earners,” international statistics senior manager Jason Attewell said. “A fall in dairy exports to China, combined with the increase in expenditure by overseas visitors to New Zealand, has narrowed the gap between the two.” . . 

App helps keep hives humming – Sally Rae:

Brice Horner gets a buzz about educating others about beekeeping.

Now the Dunedin police officer has developed a phone app that helps beekeepers identify whether they have the destructive bacterial disease American foulbrood (AFB) in their hives.

AFB kills bee larvae and infected hives have to be destroyed by burning, as the disease is very difficult to combat. After destroying the bee larvae, spores could survive outside a bee colony for more than 35 years.

It is a serious issue, and beekeepers are legally required to advise the AFB Management Agency within seven days of noticing an outbreak and to destroy the disease by burning within the same period. . . 

Kiwi dairy farmers feeling the pinch are right – their payout is the world’s lowest – Fiona Rotherham:

(BusinessDesk) – New Zealand dairy farmers bracing for the lowest payout in a decade probably won’t welcome the latest analysis of global trends in the industry – their counterparts in every other dairy-producing country are being paid more.

An expected uplift in dairy prices in the overnight GlobalDairyTrade auction won’t change the fact Kiwi dairy farmers are the lowliest paid. AgriHQ analysed milk prices from around the world converted to NZ$/kilogram of milk solids to allow valid comparisons, although some dairy farmers incomes in other countries are boosted by subsidies and support schemes.

Fonterra’s forecast farmgate milk price, which is the price setter in the New Zealand dairy industry, is $3.85/kgMS for the current season, the lowest in a decade. That compares to China at the other end of the scale at $11/kgMS, the United States at $8.15/kgMS, Argentina at $7.57/kgMS, and the UK at $6.95/kgMS. Of the countries analysed, Ireland’s payout of $6.10/kgMS was the closest to New Zealand’s. . . 

OceanaGold raises 2015 production estimate to reflect Waihi acquisition – Tina Morrison:

(BusinessDesk) – OceanaGold Corp expects 2015 production to increase while costs fall after the gold miner takes control of Waihi Gold Mine later this year.

The acquisition of the Waihi mine from Newmont Mining Corp is awaiting approval from the Overseas Investment Office this month, and once completed, OceanaGold expects to assume the economic benefits and costs associated with Waihi from July 1, the Melbourne-based miner said in a statement. The company increased its 2015 production estimates, and reduced its costs forecast to reflect lower copper and diesel prices and a weaker New Zealand dollar, it said. . . 

Sanford quits Pacific tuna business, lines up buyers for vessels – Paul McBeth:

(BusinessDesk) – Sanford, New Zealand’s largest listed fishing group, will quit its underperforming Pacific tuna business and put the unit’s fleet up for sale.

The Auckland-based company sold its San Nanumea vessel and is in talks with a potential buyer of San Nikunau, its other Pacific tuna ship, after reviewing the viability of the business, Sanford said in a statement. On April 9, it entered into a conditional agreement to sell both international purse seiner vessels, according to Sanford’s interim report released in June. . . 

Rural Equities posts 27% decline in annual earnings after milk prices slumped – Tina Morrison:

(BusinessDesk) – Rural Equities, the farming group majority-owned by the Cushing family, posted a 27 percent decline in annual earnings as milk prices plummeted.

The Hastings-based company said operating earnings before interest and tax fell to $4.67 million in the year ended June 30, from $6.43 million a year earlier as Fonterra Cooperative Group slashed its milk price payout to $4.40 per kilogram of milk solids from $8.40/kgMS the previous year. While that impacted its seven dairy farms, the company said its Waikato Puketotara sheep and beef property had a record year and it had steady income from leasing 15 of its 25 farms.

“Operating earnings were satisfactory given the substantial reduction in milk price,” said executive chairman David Cushing. “The company’s portfolio, with a mixture of directly operated and leased farms and diversity by property type and geography, helped provide balance.” . . 

Government grant for East Coast stream restoration:

An $89,700 grant from the Community Environment Fund for the restoration of the Whangawehi stream on the Mahia Peninsula was announced today by Environment Minister Dr Nick Smith during a visit to the catchment. 

“New Zealand has a major challenge to improve the management of our waterways, which has to be achieved stream by stream, river by river and lake by lake. The key to the success of these restoration programmes is getting all parties – landowners, iwi and hapū, district and regional councils as well as the Government – working together. This has been achieved on this project and that is why the Government is providing funding support,” Dr Smith says.  . . 

Fonterra Farmers Can Now Apply for Co-Operative Support:

Fonterra farmers can now apply for Fonterra Co-operative Support, a loan to help them deal with the current challenging conditions.

Chairman John Wilson said Fonterra is well placed to help its farmers because of the Co-operative’s underlying strength.

“Being able to help our farmers is all about standing together as a Co-operative and using our collective strength to get through these tough times,” said Mr Wilson. “We have had a lot of interest from farmers who appreciate what the Co-operative is trying to do for them to assist them with their farming businesses in a tough financial climate, and we are anticipating a large number of applications.” . . .


Rural round-up

August 31, 2015

Why people oppose GMOs even though science says they are safe – Stefaan Blancke:

Genetically modified organisms (GMOs) have met with enormous public opposition over the past two decades. Many people believe that GMOs are bad for their health – even poisonous – and that they damage the environment. This is in spite of overwhelming scientific evidence that proves that GMOs are safe to eat, and that they bring environmental benefits by making agriculture more sustainable.

Why is there such a discrepancy between what the science tells us about GMOs, and what people think? To be sure, some concerns, such as herbicide resistance in weeds and the involvement of multinationals, are not without basis, but they are not specific to GMOs. Hence, another question we need to answer is why these arguments become more salient in the context of GMOs. . .

Win over dumping celebrated – Patrick O’Sullivan:

Local growers are celebrating after winning their fight against the relaxation of anti-dumping measures.

They have been lobbying against a proposed relaxation of the measures, which threatened the local canning industry.

Cabinet had agreed in principle to change the rules which would have resulted in anti-dumping duties only after damage to local industry was proven, with the duties removed after an Automatic Termination Period (ATP).

Dumping is illegal under World Trade Organisation agreements. . .

El Niño predicted to give farmers a rough ride over spring and summer –  Michael Forbes and Caleb Harris:

Climate scientists are warning farmers to brace for a large-scale El Nino, with rainfall expected to drop by 15 per cent in some regions and increase by the same amount in others.

The National Institute of Water and Atmospheric Research (Niwa) is projecting the upper North Island and east coast of both islands will be hardest hit by dry conditions, which could mimic the devastating drought that shaved $618 million, or 0.9 per cent, off national GDP in 1997-98.

Principal climate scientist Andrew Tait said there was a 97 per cent chance El Nino would continue until October and a more than 90 per cent chance it would persist through until April 2016. . .

Retired farmer gives helping hand to struggling sharemilkers  – Hannah Lee:

A man who knows a thing or two about how tough farmers are doing it right now is helping out with a free meal.

Retired Lepperton farmer Bob Pigott said the industry has always had its ups and downs, but the current conditions were pretty dire.

As a way to lend a helping hand, Pigott has donated $1000 in meal vouchers at Sporty’s Cafe and Bar in New Plymouth, for sharemilkers who are in need of a night away from the stress of the job.

“To go from $8.25 to $3.85 payout, I mean, it’s pretty disastrous.

“It’s part and parcel of the job though isn’t it, prices go down and come back again – it’s happening again but I think it’s a lot worse this time.”  . . .

Quote of the day

August 27, 2015

If you sit in a room with people with diametrically opposed views, you’ll ultimately find you have 80 per cent in common. Do you want a better environment, a world your kids can live in, to leave your farm a better place when you leave? We found in the GM debate that when you isolate the fundamentalists, they are never going to change their view. It’s about taking people with you; not ‘I’m right and you are wrong.’ By giving a bit, we’ve gained a lot in the last five years. . . Dr William Rolleston.

Rural round-up

August 21, 2015

Reducing waste to feed the world:

A 2013 Asia-Pacific Economic Cooperation (APEC) agreement to reduce food waste by 10 percent across the region is picking up pace as researchers and technical team members work towards their 2017 goal of developing effective strategies and actions to address urgent global food waste issues.

A third of the edible parts of food produced for human consumption is lost or wasted. That translates into about 1.3 billion ton per year. Lincoln University Associate Professor James Morton says reducing food waste is the logical first step in meeting the needs of a growing world population, which is predicted to reach nine billion by 2050. He recently attended the second of three APEC ‘Multi-Year Project’ meetings focused on addressing global food waste, where he spoke around the need to measure and reduce wastage in the livestock chain. . . 

Democracy, apathy or revolution – Allan Barber:

MIE has to be given credit for its persistence with its campaign to persuade Silver Fern Farms and Alliance to look seriously at the benefits of merging as opposed to continuing to beat their respective heads against the brick wall of competition. But the outcome depends on several planets aligning at the same time.

The present state of flux exists because of the uncertainty surrounding the results of SFF’s capital raising exercise, still to be announced at the time of writing, the outcome of two special general meetings called by a minimum of 5% of the shareholders in the cooperatives, and last but not least, the attitude of the majority of those shareholders.

The latest step in this process is the concept of Newco – the Visionary Meat Cooperative which expands on the Big Red proposal contained originally in MIE’s Pathways to Long-term Sustainability report launched in April. There is more detailed financial analysis in the latest concept plan which implies a net profit of $92.4 million in the fourth year after merger compared with a combined profit of $6.7 million if the companies remain separate. . . 

Revolutionary new trawling method improves quality of catch:

A revolutionary new sustainable trawling method is showing great potential for increasing the value of New Zealand’s fisheries by more than $43 million per year by 2025, industry leaders heard in Wellington today.

The Precision Seafood Harvesting (PSH) technology known as a Modular Harvest System (MHS) is a potential replacement for traditional fishing methods. Using a large flexible PVC liner with specifically sized holes along its length, it allows undersized fish to escape before being brought on board a fishing vessel. In addition, the fish that are brought on board stay in good condition because they are still swimming in the liner when they’re on the deck, resulting in less stress and reduced likelihood of injury. . . 

Seizing the global opportunities for New Zealand seafood:

The growing global demand for environmentally sustainable, natural, healthy food offers great opportunities for the New Zealand seafood industry, Seafood New Zealand Chairman George Clement says.

Speaking at the New Zealand Seafood Industry Conference in Wellington today, Mr Clement referred to the Food and Agriculture Organisation’s (FAO) prediction that global food production will need to increase by 40 per cent by 2030 and seventy per cent by 2050.

Growth in global seafood production (3.2 per cent annually) continues to outpace population growth (1.6 per cent annually), he said. . . 

New Zealand fish stocks performing well:

New Zealand’s fisheries are performing well overall, Dr Pamela Mace, the Principal Advisor Fisheries Science, with the Ministry for Primary Industries said today.

She was providing an update on the status of New Zealand’s marine fisheries at the New Zealand Seafood Industry conference.

“New Zealand’s fisheries are performing extremely well overall, at least as good as or beyond the standard of the best in the world,” she said. . . 

New Role Encourages Home Grown Talent:

Beef + Lamb New Zealand (B+LNZ) Genetics has appointed Dr Phillip Wilcox as its inaugural senior lecturer in quantitative genetics* at the University of Otago.

Dr Wilcox has a background in molecular and quantitative genetics and comes from the forestry-focused Crown Research Institute, Scion, where he was a senior scientist. He was also a part-time senior research fellow with the University of Otago’s Department of Biochemistry, working in the field of human genetics. . . 

Seeka Kiwifruit Industries Six Months to 30 June 2015 [Unaudited]:

Directors and management are pleased to present Seeka’s financial results for the six months to 30 June 2015. It was a challenging six months for the Company with a fire significantly damaging Seeka’s Oakside post-harvest facility just prior to harvest, then having to focus on managing a record 27.7m trays of kiwifruit; the first major lift in production since 2011’s previous high of 27.1m trays.

Profits are up. Profit before tax this half year is ahead of the previous corresponding period (pcp) by $2.87m [+115%] at $5.36m, reflecting record kiwifruit volumes handled by post-harvest along with good earnings achieved by the orchard division. The half year results include an allowance for the full second year cost of the three-year grower share scheme totalling $2.55m. . . .

Ballance Farm Environment Awards good for farmers and good for the industry, say Horizons entrants:

Halcombe dairy farmers George and Ellen Bartlett entered the 2015 Horizons Ballance Farm Environment Awards (BFEA) because they wanted to support their industry and learn more about sustainability.

Winning three category awards in their first time in the competition was a bonus for the Bartletts, who run a 950-cow operation on 526ha north of Feilding.

“We certainly didn’t expect to win anything,” says Ellen, “we entered because we wanted to find out what we were doing right and what things we could improve on in future. We also felt it was important to support the awards because they do such a great job of showcasing the good work being done by farmers.” . . 

Share Farmer Contest Heralds New Era:

The 2016 Share Farmer of the Year competition has big boots to fill – taking over from the highly regarded sharemilker competition.

New Zealand Dairy Industry Awards Executive Chair Gavin Roden says the Share Farmer of the Year is a hybrid of the sharemilker competition, with changes that better position it within the dairy industry’s evolving farm ownership and employment structures.

“We think the changes will make the contest better and enable more people to enter and gain the benefits from entering. . . 

Wanaka lake weed reduced by two thirds:

Lake Wanaka is healthier than it has been in decades, thanks to weed control work led by Land Information New Zealand (LINZ), Minister for Land Information Louise Upston said today.

“In 2005, LINZ and a number of other agencies developed a 10-year strategy to deal with lagarosiphon. A decade on, two-thirds of the lake is clear of the aquatic weed, and LINZ is ready to begin the next phase of control work.

“These results show how LINZ’s collaboration with others is helping protect New Zealand’s iconic landscapes and waterways,” Ms Upston said. . . 


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