Rural round-up

May 29, 2015

Top deer environment award winners announced – Kate Taylor:

Central Hawke’s Bay farmers George Williams and Laura Billings were presented with the Elworthy Environment Award at the deer industry conference in Napier on Tuesday night.

The couple have a 1188ha business, including home farm Te Maire, in the Tikokino area with sheep, beef and cropping as well as deer.

Williams has a personal passion for deer with a focus on velvet with a venison by-product.

Velvet production for the 2014/15 season was a total of 2550kg (including 278kg of regrowth). Te Maire has also hosted the Wilkins Farming North Island stag sale since 2010. . .

Chefs to serve up kiwi venison in Euorpean restaruants –  Kate Taylor:

New Zealand venison will be eaten at European restaurants this summer.

Thirty-six ambassador chefs in Belgium and the Netherlands will be serving cervena venison on their menus in a trial as part of a Passion2Profit initiative formally launched at the Deer Industry Conference in Napier on Tuesday. . .

NZ heading for lowest wool clip in 6 years as farmers favour meat breeds, sheep flock declines – Tina Morrison:

(BusinessDesk) – New Zealand, the world’s largest exporter of crossbred wool, is heading for its smallest annual wool clip in six years, reflecting the lowest sheep flock in more than 70 years, dry conditions and an increased focus on meat producing breeds of sheep.

New Zealand will probably produce 138,400 tonnes of greasy wool, or 833,700 wool bales, in the annual season that runs through June, down 5.4 percent on the year earlier, according to farmer-owned industry organisation Beef + Lamb New Zealand. That would mark the lowest level since the 2008/09 season when the clip dropped to 132,400 tonnes as farmers eschewed a second shear in the face of low wool prices. . .

Support for dairy farmers ramped up:

Industry body DairyNZ is ramping up its support to dairy farmers following the announcement today by Fonterra of an opening forecast Farmgate Milk Price of $5.25 per kgMS for the 2015-16 season.

Chief executive Tim Mackle says DairyNZ had already been working on boosting its Tactics for Tight Times campaign to help farmers cope with what is likely to be a “very tough and grim season”.

“By our calculations, this forecast will translate into an average farmer’s milk income dropping by $150,000 for this next season. We’ve worked out that the breakeven milk price for the average farmer now going forward is $5.70 kgMS, yet under this forecast scenario they’ll only be receiving $4.75 all up in terms of farm income including retro payments from last season and dividends. Annual farm working expenses will need to be reduced to minimise increasing debt levels further. The flow-on impacts to the local economy will be significant as that money gets spent on things like feed, fertiliser, repairs and maintenance items. There will also be less capital spending in our sector. . .

Well-oiled operation sees rapid growth – Harrison Christian:

WAYNE and Maureen Startup never dreamed the four olive trees in their Havelock North backyard would turn into 17,000.

But that is what happened, after they decided to go full-time with their hobby 15 years ago.

The Village Press, which takes its name from their hometown, is the biggest and most competitive olive oil operation in New Zealand. Its high-quality olive and avocado oils are stocked on shelves around the world – and the business continues to grow. . .

Farmers ready to put irrigation funds to good use:

Federated Farmers says farmers will put to good use a $25m funding boost, from the recent Budget, for investigation and development of irrigation projects.

The Government has put $25m into the Irrigation Acceleration Fund through the next five years to kick-start regional irrigation projects.

Federated Farmers spokesperson on water, Ian Mackenzie, says the Government is quite right to identify nearly every part of New Zealand as being hit by drought in the past three years. . .

Plant disease world first in Bay:

A Peruvian plant disease will be used in a world first biocontrol against a notorious weed in the Bay of Plenty and Northland

Lantana blister rust (Puccinia lantanae) was recently released in the Bay and Northland regions in an attempt to control lantana – considered one of the world’s 10 worst weeds.

Landcare Research scientists have been searching for biocontrols before it becomes widespread. . .

Input Prices Rise for Sheep And Beef Farmers:

Prices for inputs used on New Zealand sheep and beef farms increased 1.1 per cent in the year to March 2015, according to the latest Beef + Lamb New Zealand (B+LNZ) Economic Service sheep and beef on-farm inflation report.

The sheep and beef on-farm inflation report identifies annual changes in farm input prices in New Zealand for the various expenditure categories. The on-farm inflation rate is determined by weighting the individual input category price changes by their proportion of total farm expenditure.

B+LNZ Economic Service chief economist Andrew Burtt says the increase in the 2014-15 year follows a 0.6 per cent decrease the previous year and was driven by rises in prices of interest and, local and central government rates and fees. It was only partly offset by a fall in fuel prices as fuel accounts for less than 5 per cent of sheep and beef total farm expenditure. . .

Pasture and Performance Loan to lift red meat productivity:

New Zealand’s largest rural lender today launched an extended lending package for red meat farmers wanting to boost farm productivity.

ANZ Bank’s Pasture and Performance Loan offers an interest rate of 5%* p.a. with a maximum loan of $100,000. The maximum loan term is five years, principal reducing, and there are no establishment fees. . .


Rural round-up

May 28, 2015

Surveyor believes in power of cooperative model, but says it’s up to farmers – Allan Barber:

Four months into his new job as CEO of Alliance, David Surveyor is really loving the challenge of heading a global business which is so crucial to farmers, consumers and New Zealand as a whole. He has always been interested in the agrifood space, as he terms it, and enjoys getting to know New Zealand through its agricultural producers.

In contrast with his previous roles in steel and building materials, the biggest difference in the meat industry is the question of livestock supply with so many factors outside the company’s control. Variable climatic conditions and land use change are just two of the main ones. At Alliance its cooperative status demands a lot of time seeing things from the supplier perspective which is not such a major factor in manufacturing industries, while all meat companies need to spend more time focused on the market. . .

Positive Signs Ahead as Farmers Look to Put Season Behind Them:

Fonterra Shareholders’ Council Chairman, Ian Brown said Farmers will be cautiously optimistic following today’s announcement by Fonterra of an opening forecast Milk Price for the 2015/16 season of $5.25 per kg/MS, including an opening advance rate of $3.66 per kg/MS.

Mr Brown: “Farmers will view next season’s forecast as a positive given the situation we have experienced this past season.

“They will also see the announcement as a signal from their Board that the market should start to move in a positive direction in the near future, which is welcome news. . .

Fonterra Announces Board Change:

Fonterra Co-operative Group Limited today announced that Sir Ralph Norris has indicated he will not seek to continue his term on the Fonterra Board, following the Co-operative’s Annual Meeting on 25 November 2015.

Sir Ralph joined the Board in May 2012 as an Independent Director, and made this decision because of his other commitments.

Sir Ralph is also resigning from the Board of the Manager of the Fonterra Shareholders’ Fund, from 25 November 2015. . . 

Funding bost for Irrigation Acceleration Fund:

Irrigation projects will receive a kick-start of $25 million in operating funding for five years from 2016/17 through the Irrigation Acceleration Fund (IAF), Primary Industries Minister Nathan Guy has announced today.

“This funding will help to complete the investigation and development of new regional scale irrigation proposals,” says Mr Guy.

“The need for more water storage projects is obvious given that nearly every part of the country has suffered through drought at some stage over the past three years.

“Providing a reliable water supply for farmers and growers has massive potential to boost growth, creating jobs and exports in provincial regions.” . . .

New Zealand National Party's photo.

Call for more water storage heard by Government – more funding allocated:

IrrigationNZ today welcomed the post budget announcement by Primary Industries Minister, Nathan Guy, of a $25 million allocation of new funding to the Irrigation Acceleration Fund.

“This will boost the development stages of water storage and irrigation distribution infrastructure, which is desperately needed in our summer dry east coast regions. Reliable water supply will sustain communities and maintain the environmental health of their rivers,” says Nicky Hyslop, IrrigationNZ Chair.

“With additional IAF funds contributing to the early stages of this infrastructure development, it will be essential that RMA process reforms that empower collaboration also occur so that the funds do not go to waste,” says Mrs Hyslop. . .

Choice of chair underlines importance of forest safety:

A safety council has been set-up, chaired by Dame Alison Paterson, to make forests safer places to work. Establishing the council was a key recommendation of the Independent Forestry Safety Review Panel that reviewed forest safety in 2014.

The Forest Industry Safety Council (FISC) was launched tonight at a function at parliament. Its board includes representatives of forest owners, contractors, workers, unions and Worksafe New Zealand. Funding will come from the Forest Grower Levy and from government – ACC and Worksafe. . .

Kanuka right at home on winning farm – Kate Taylor:

Kanuka is very much part of our landscape, says Simon Beamish, who with wife Josi was named the 2015 Pan Pac Hawke’s Bay Farm Forester of the Year in April.

They farm alongside the Ngaruroro River that slices between the Kaweka and Ruahine ranges in Hawke’s Bay, west of Hastings, with the farm rising to 690 metres above sea level.

Their 1121ha Awapai and 992ha Waitata properties have been owned by the Beamish family for almost 130 years. They were both part of the original Whanawhana block leased and then freeholded by Simon’s great great grandfather Nathaniel Beamish in 1886. Nathaniel’s son George was sent up to manage the block of land at the young age of 18. . .

Cervena venison piloted in Europe:

New Zealand venison exporters have started a trial to test the appetite of European consumers for Cervena venison in the summer grilling season.

The trial, which began in April, is part of the Passion2Profit initiative that was formally launched today at the Deer Industry Conference in Napier. P2P is a joint venture between the deer industry and the Ministry for Primary Industries (MPI) under the Primary Growth Partnership programme.

“We are really excited that this pilot is underway. Launching Cervena in Europe has been talked about in the deer industry for many years, but it needs careful branding and substantial promotional support to make it a sales success,” says DINZ venison manager Innes Moffat. . .

Horticulture’s future may lay with city slickers:

Increasing urbanisation means more support for initiatives like the ‘NZ Young Horticulturist of the Year 2015 Competition’ is needed to encourage fresh talent into primary industries, like horticulture, to sustain this country’s edge as a top quality food producer.

The horticultural industry has a bright future and is fundamentally important to New Zealand’s economy, but the fact that more than 85 per cent of kids under 15* now live in urban areas is prompting some of the country’s top companies to throw their weight behind career awareness and development initiatives in the sector. . .

Rural Connectivity Symposium 2015 gets underway today:

After months of planning TUANZ and RHAANZ are delighted to announce that the Rural Connectivity Symposium kicks off in Wellington today.

“The event has sold out with over 150 people attending. The Symposium will be opened by the Communications Minister, The Hon. Amy Adams and has been well supported by sponsors across the health and ICT spectrum” said Craig Young, CEO of TUANZ.

“Rural satellite service provider, Wireless Nation, is the premier sponsor for our one-day event, which is a mixture of presentations and workshops.” . .

New dairy mineral blend ticks all the boxes:

As mineral deficiencies continue to cost dairy farmers time, money, livestock and lost production, a unique new mineral blend is offering a comprehensive, cost-effective solution.

Developed specifically for New Zealand dairying by BEC Feed Solutions, Main Stay Macro Minerals, delivers key nutritional minerals in a convenient, palatable, accurate and dust-free blend. And, because it incorporates the revolutionary Bolifor Mag 33 and MGP+ Magnesium products, farmers won’t have to worry about pasture dusting again, consequently saving valuable time and labour costs. . .


Fonterra drops 2014-15 forecast, 2015-16 forecast better

May 28, 2015

An email from Fonterra chair John Wilson brings more bad news:

  • Today we reduced the current forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with the previously announced dividend range of 20-30 cents per share, the change amounts to a forecast Cash Payout of $4.60 – $4.70 for a fully shared-up farmer.
  • Today’s revision means there will also be a reduction to Advance Rate payments for August and September.  . .
  • The 10 cent reduction to the forecast reflects the reality that global commodity prices have not increased as expected.
  • World markets are over-supplied with dairy commodities after farmers globally increased production in response to the very good prices paid 12-18 months ago.  This supply imbalance has heightened due to continuing good growing conditions in most dairy producing regions. . .

This is unexpected and unwelcome but there is better news for next season:

  • We have also announced today our opening forecast Farmgate Milk Price of $5.25 per kgMS for the 2015/16 season.
  • The forecast Cash Payout will be available after we determine forecast earnings for the 2016 financial year, in July.
  • The Advance Rate will begin at 70 per cent of the forecast Farmgate Milk Price, with an opening rate of $3.66 per kgMS. . .
  • Our forecast takes into account factors including global milk production forecasts, the economic outlook of major dairy importers, current inventory levels and geopolitical events.
  • Prices are expected to recover going forward, with a rebalancing of supply and demand over the season.
  • However it is more difficult to say exactly when this recovery will lead to a sustained price improvement, and we recommend caution with your on-farm budgets at this early stage in the season.

Contractors are already finding farm work has dried up.

They and others who service and supply farmers will be sharing the pain until the payout picks up.


Rural round-up

May 27, 2015

Olive harvest underway:

The olive industry is welcoming a new processing plant opened in Wairarapa over the weekend.

The Olive Press in Greytown was opened by Primary Industries minister Nathan Guy yesterday, and was expected to be busy over the coming months as growers in Wairarapa and Hawke’s Bay prepared to begin the olive harvest.

When we spoke to Olive New Zealand’s president Andrew Taylor he was overlooking snow in Napier this morning, which he said was unlikely to affect the trees. . .

Border clearance levy welcomed:

Beef + Lamb New Zealand and the Meat Industry Association are welcoming a border clearance levy, signalled in the Budget 2015 announcement by the Government.

From the start of next year, passengers coming in and out of New Zealand will pay around $16 (inwards) and $6 (outwards) for those departing New Zealand.

Beef + Lamb New Zealand Chief Executive, Dr Scott Champion said this was an action the organisation had been asking government to consider for some time and so it was good to see some form of user pays applied to those who pose a potential biosecurity risk to New Zealand’s agriculture sector. . . .

MPI risks loss of focus on food safety and biosecurity – Allan Barber:

Most people would almost certainly see the primary role of Ministry for Primary Industries as the protection of New Zealand’s biosecurity, food safety and primary production. The creation of MPI was designed to meet a number of objectives, one of which, probably the most important, must surely have been to ensure a world class agency to deliver this priority.

Since 2012 there has been an increased focus on a series of policy initiatives which appear to the outside observer to be in danger of taking precedence over the core function on which our agricultural sector’s prosperity and survival depend. A reading of the 2013 and 2014 Annual Reports confirms the importance the department attributes to the protection role, but it is only one of a number of business areas which receive equal precedence. . .

Passion2Profit officially joins Primary Growth Partnership:

Deer Industry New Zealand (DINZ) and the Ministry for Primary Industries (MPI) have announced today that a new Primary Growth Partnership (PGP) programme, Passion2Profit, will officially begin.

The contract has just been signed for the $16 million, seven-year programme, which is intended to be a game-changer in the production and marketing of venison, delivering $56 million in extra revenues a year from the end of the programme.

Speaking from the Deer Industry annual conference today, DINZ Chief Executive Dan Coup says it’s exciting to be able to begin work on this venture. . .

Minister welcomes new venison PGP programme:

Primary Industries Minister Nathan Guy has welcomed the formal start of a new Primary Growth Partnership (PGP) programme involving the deer industry.

“’Passion2Profit’ is a seven year programme which aims to deliver economic benefits of $56 million per year in additional industry revenue by the end of the programme,” says Mr Guy.

“The partnership between Deer Industry New Zealand (DINZ) and the Ministry for Primary Industries will set the groundwork for major improvements in the production and marketing of New Zealand venison. . .

UC Forestry part of new multi-million forestry industry research:

The University of Canterbury is part of a new $14 million, seven year collaborative research effort aimed at maximising the value and export earnings of the forestry industry.

The Government recently announced it will invest the research funding in the effort, to be matched dollar for dollar by the forestry industry. The programme will be led by industry-operated entity Future Forests Research, in collaboration with Scion, UC, and the New Zealand Dryland Forests Initiative. The Government funding is provided through the Ministry of Business, Innovation and Employment’s Research Partnerships Programme. Industry fiunding is being provided by Forest Growers Levy Trust and a number of leading forestry companies and Farm Forestry Association. . .

Trust provides funding for two initiatives to benefit New Zealand wine industry

The Cresswell Jackson New Zealand Wine Trust has awarded funding for two University of Otago projects, both designed to benefit the country’s wine industry.
 
The first was awarded to Associate Professor David J Burritt of the Department of Botany to undertake research concerning the process of extracting phenolics during the winemaking process. Professor Burritt said, “The wine industry is incredibly important to the New Zealand economy. We are very grateful to receive this grant, which will be used to support our research investigating the potential for pulsed electric fields (PEF) technology to be used in the New Zealand wine industry.” . . .

SSanford Reports Satisfactory Result and Marks Shift in Customer Focus in Six Month Result:

. . . Sanford Limited, New Zealand’s largest commercial fishing and aquaculture company, has recorded an 18.1% rise in its EBITDA in its interim report for the six months ending 31 March 2015. EBITDA increased to $33.9m from $28.7m for the same period last year. Profitability was affected by one-off impairment charges with respect to Sanford’s fleet and plant and equipment at the Christchurch mussel processing plant. Net profit after tax for the six months was down 18.3% from $11.7m in 2014 to $9.6m for the current half year.

Sanford CEO Volker Kuntzsch says the result is satisfactory, given the challenging conditions faced in international markets. “In particular, in the last three months of the period, we have seen improving results. The team has worked really hard to lift our revenue. Initially, the period was marked by lacklustre sales for a few months, primarily due to weak currencies and political upheaval in some of our important export markets.” . .

2013 vintage wines “amongst the greatest red wines produced in New Zealand”:

GIMBLETT GRAVELS® 2013 Annual Vintage Selection revealed

The sixth year of this initiative from the Gimblett Gravels Winegrowers Association (GGWA), the Annual Vintage Selection serves as a unique snapshot of a particular vintage and helps to chart the evolution of GIMBLETT GRAVELS® wines on a vintage by vintage basis.

The highly acclaimed palate of Sydney based Master of Wine Andrew Caillard MW has been the independent selector for all six vintages, 2008-2013, inclusive. The 2013 selection was the most comprehensive yet, with a record 46 GGWA members’ wines submitted for selection. . .

Taranaki-based AgriPeople are your rural recruitment and People Management experts:

Working with agricultural employers and employees, AgriPeople focus on creating lasting relationships by using practical tools and applying a practical approach.

AgriPeople is made up of a stellar group of highly professional consultants and administrators. “Our consultants all continue to grow through professional development,” says Racquel Cleaver, Consultant and Director of AgriPeople. . .


Westland forecasts increased payout next season

May 27, 2015

Westland Milk Products has confrimed its milk payout for this season and forecast an increased payout for the 2015-16 season:

The Hokitika-based company will pay $4.90 to $5.10 per kilogram of milk solids before retentions this season, having reduced its forecast for the payment for a third time in April. For 2015-16, it expects the payout to rise to between $5.60 and $6.00/kgMS. . .

Westland chief executive Rod Quin while his company’s projection “might be more optimistic than some in the New Zealand dairy industry, it is our considered forecast of the expected outcomes for the approaching season.”

Quin said dairy prices are expected to recover as the 2015-16 season progresses, although “they’re expected to remain relatively low due to ongoing milk supply pressure from the US and the European Union.”

“One bright spot is that Chinese whole milk powder buyers are expected to return with more demand in early 2016,” he said. . .

That’s good news for farmers, those who service and supply them and the wider economy.

Fonterra will make its announcement tomorrow.

Keith Woodford says the advance payment is more important than the forecast:

Most pundits are suggesting an overall expected price for 2015/16 of between $5 and $6 per kg milksolids. But right now that estimate, which is little more than a guess, is largely irrelevant. It is the advance price that counts down on the farm, but which the media largely ignores.

The Fonterra advance payments are also important for Synlait and Open Country suppliers. These investor-oriented companies pay whatever they need to stay competitive with Fonterra.

Fonterra pays what are called ‘advance’ payments on the 20th of the month following when the milk is received. The rest of it dribbles in through to October of the following year.

In a normal year, Fonterra pays these so-called advances at about 65% of the expected final payout. But this year could be different. That is because Fonterra’s own cash inflows during the first half of the year will be modest.

The advance payout keeps money coming in though winter and early spring when cows are dried off and through calving until herds are in full production.

So how should Fonterra price the advance payouts? Should they be priced as a percentage of the early season prices, or should they be based on best estimates of the final price?
If Fonterra bases its advance payments on the current prices, then some farmers are in for a shock. The advances could be well under $4, with a likely figure being in the ‘low threes’.
If Fonterra bases the advance on overall expected prices, then the advance could be closer to $4.
The problem with the second scenario is that the overall price for the coming 2015/16 season is still such a guess. Despite the pundits predicting prices between $5 and $6, the reality is that it could be anywhere between about $4 and $7, or even outside that range.

Last year at this same time, Fonterra was predicting $7 per kg milksolids for the 2014/15 year. Yet the latest estimate for the 2014/15 season, which is now about to end, is $4.50. Surely that should convince everyone that estimating milk prices this far out is almost total guesswork. Quite simply, no-one knows.

The weather, value of our dollar, what our competitors do and supply and demand are all variables which make accurate forecasting difficult.

Everyone knows that international dairy prices are currently very low, but less well understood is the lags inherent in the system. Given those lags, most farmers will have received milk cheques during the current 2014/15 year in excess of $6 per kg of milksolids actually supplied. This is despite the estimate for the year about to end as being $4.50. It is only now that the cash crunch is beginning to bite.

Most farmers will receive some very modest payments in June for their May production, nothing in July, and then some tiny retro payments in August, September and October.
The new season’s payments will include the advance payment on 20th September for August production, with increasing payments in the following months as spring production cranks up. But if advance payments are only in the ‘low threes’, then for many farmers the overdrafts will continue to rise.

Down on the farms, there is a lot of frustration at Fonterra’s failure to accurately predict prices. But that is not Fonterra’s fault; it is the simple reality of global commodity markets. . .

No-one would have predicted going from prices which supported a record payout of more than $8 last season to little more than half that this season.


Greenwash, exercise and soup

May 26, 2015

Discussion with Simon Mercep on Critical Mass today was sparked by:

* Envormation – a New Zealand-based website which aims to help consumers cut through the greenwash by understanding key environmental information about products and services. (hat tip Idealog).

*  How to fall in love with exercise.

And

* The Soup Chick


Rural round-up

May 26, 2015

Arable farmers voice safety concerns – Jemma Brackebush:

Arable farmers concerned with how changes to the Health and Safety Act may affect them are meeting WorkSafe representatives in Southland this week.

The Foundation for Arable Research’s group, Women in Arable, have organised sessions after farmers voiced uncertainty about the changes that are due to come into force later this year.

Spokesperson Anna Heslop said one session had already been held in Ashburton, where they found many people were sceptical of the new rules. . .

Fonterra unit investors kick unit values after interim result – Tim Fulton:

Investors are punishing Fonterra for a disappointing balance sheet and dividend payments to farmers, a Canterbury-based share advisor says.

The value of Fonterra’s listed investment units has dropped up to 20 per cent since the co-op’s interim result two months ago.

The sharemarket “wasn’t too happy” with Fonterra’s interim financial result on March 25 and the feeling had contributed to the unit price in the Fonterra Shareholders Fund falling from about $6 per unit to $4.80, Hamilton Hindin Green authorised advisor Grant Davies said. . .

Westland’s Farm Excellence roll-out close to 100%:

The first stage of the roll-out of Westland Milk Products’ new Farm Excellence (FarmEx) programme has almost been completed, with 97 percent of farms having had their first FarmEx assessment.

Launched in 2014, FarmEx works on the basic philosophy that what happens behind the farm gate impacts on Westland’s ability to sell in a highly competitive marketplace. The programme sets high quality production, environmental, animal welfare and sustainability standards for Westland’s shareholder suppliers.

The move has been welcomed by the Department of Conservation on the West Coast because of the positive environmental spin-offs that the programme entails. . .

Awards experience gave confidence – Sally Rae:

Dave and Janene Divers first entered the Otago Ballance Farm Environment Awards four years ago.

At that time, they were newcomers to running Table Hill, a 1650ha family owned property 5km inland from Milton.

While they did not get past the first round of judging, they enjoyed the process and gained a professional look at their business, along with confirmation that their vision was ”on the right track”, Mrs Divers said.

It gave them the confidence to move forward with their ideas and goals and they decided to enter again when they had a chance of injecting ”a bit of their personalities” into the business and achieving some of their goals. . .

Delmont Angus bull fetches top price of $15,000

A top price of $15,000 was achieved at the 15th Delmont Angus bull sale held recently on farm at Kuriwao.

John and Tracey Cochrane sold 25 bulls for an average price of $6388, with a top price of $15,000, to Jeff Farm at Kaiwera.

Bev and Malcolm Helm, from Rough Ridge Shorthorns, at Gimmerburn, sold eight bulls for an average of $5000 and a top price of $9000, to Rob and Sally Peter, from Cape Campbell, Marlborough. . .

No farm ‘fire-sale’ scenario from lower milk payouts says real estate industry leader:

Lower dairying payouts will lead to a tightening of the proverbial belt around many Canterbury farm budgets – but not a rush to the mass selling of productive units, according to the head of a leading real estate agency in the region.

Bayleys Canterbury director Bill Whalan said the full impact of the latest lowered Fonterra payout forecast would depend on how long prices remained depressed – but any talk of ‘fire sale pricing’ was wide of the mark.

“A vast majority of Canterbury dairy farmers are in a position to deal with this season’s low payout – and therefore a rush of distressed farm sales is not anticipated,” Mr Whalan said. . .


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