From $4.25 to $6.15

May 25, 2017

A year ago Fonterra announced an opening forecast milk payout of $.425 for the 2016-17 season.

The forecast has gradually crept up as world prices increased and yesterday the co-operative announced a forecast payout of $6.15.

Chairman John Wilson said the increase reflects the strong fundamentals supporting global dairy markets. “World dairy prices have risen in recent months and as we near the end of the season we have more visibility and certainty which makes us confident of our $6.15 position,” Mr Wilson said.

Fonterra also confirmed its forecast earnings per share range of 45 to 55 cents for the 2017 financial year, as it continues to target a full year dividend of 40 cents per share. “Some of the challenges we faced in the third quarter could continue, but the business is committed to a strong fourth quarter particularly in Ingredients sales. This means we have been able to confirm the earnings per share range.” Mr Wilson said.

“The higher forecast Farmgate Milk Price of $6.15 per kgMS and the target dividend of 40 cents per share gives a forecast cash payout of $6.55 for a 100% shared-up farmer which is good news for our farmers and their communities,” he said.

In a further signal of confidence in the market outlook for dairy, the Co-operative is forecasting an improved Farmgate Milk Price of $6.50 per kgMS for the 2018 season. The forecast earnings range for the 2018 financial year will be announced around the beginning of August.

“The increase in the forecast Milk Price for the current season and the improved forecast for 2017/18 will be welcome news for our farmers following two challenging seasons on farm,” Mr Wilson said.

“Stronger production in March and April has partly offset lower peak milk production and collections are now expected to be down 3% for the season, a much better outcome for our farmers than had been anticipated earlier in the year,” Mr Wilson said.

The last few seasons have been very tough, especially for those new to the industry who didn’t have the good payouts the preceded the downturn.

The increased forecast for the current season and an even better one for the coming season is very welcome.

It will be interesting to see if it has an impact on farm sales.

Some farmers, and some banks, have been holding selling farms until the payout increased in the expectation land prices  will too.


Rural round-up

May 24, 2017

One quick click can save a life – Sally Rae:

It’s a message you see regularly on roadside signs and on the television – a simple click saves lives.

Had that split-second decision been made on a Friday night three weeks ago in rural South Canterbury, a wife might still have a husband and two young children a father.

Amid her grief, it is a message  Paul Dee’s widow, Julie, wants to reinforce in a national campaign.

As she sees it, she is in a privileged position to potentially help save other lives by getting people to change their thinking.

Mr Dee (46) was killed on April 28 in an ATV side-by-side buggy roll-over,  a stone’s throw from his Waihao Downs home, near Waimate. . . 

Big things expected of Te Mana lamb – Sally Rae:

Te Mana Lamb, the product of the Omega Lamb Project, has been officially launched by Prime Minister Bill English in Hong Kong.

Promoted as being the world’s tastiest and healthiest lamb, the project is a collaboration between Alliance Group, Headwaters Group and the Ministry for Primary Industries.

It involved bringing healthy fat back on to the menu by producing lambs with naturally higher polyunsaturated fatty acids, intramuscular fat and omega-3.

Guests at a gala dinner at the Grand Hyatt Hotel, attended by Mr English and the Hong Kong business community, were among the first international diners to try Te Mana Lamb. . . 

Sweet finish key to success for winning blue cheese – Pam Tipa:

Much of the success of Whitestone’s Vintage Windsor Blue cheese comes down to North Otago milk, with the cows grazing off grass from limestone soils, says chief executive Simon Berry.

Their unique mould strain they developed themselves is the other flavour aspect.

“It has a sweet finish no one else in the world has. When taken onto the international stage it stands out,” Berry told Dairy News. . .

Money will attract rural volunteers – Neal Wallace:

Rural health leader Martin London hopes a $59 million Government investment to double crew ambulances will also attract more rural volunteers to the service.

London, the chairman of the Rural Health Alliance, said the boost from the funding needed to be supported by adequate training of ambulance crews.

If that happened, he was optimistic the spirit and confidence it created would encourage new volunteers to join rural ambulance services. . . 

Water Accord business as usual – Peter Burke:

The targets in the Sustainable Dairying Water Accord are effectively becoming normal business practice for dairy farmers, says a DairyNZ director, Alister Body.

He made his comments at the release of a three year review of the accord, which covers a range of environmental targets dairy farmers are encouraged to achieve voluntarily. All dairy companies – except Westland which runs its own scheme — support the targets, as do the regional councils, Federated Farmers and some other agri-related organisations.

Body says the accord was agreed to and signed without a specific end date, but the signatories agreed to the three-year report on what has and has not been achieved. . .

Hops production in NZ slumps by 10% – Alexa Cook:

New Zealand hop production is down by about 10 percent, with the yield of some varieties falling by 30 percent.

The New Zealand Hops co-operative says its 18 growers, which are in the Nelson region, produced about 750 tonnes of hops, which was 33 tonnes less than the year before.

Chief executive Doug Donelan said the weather had not been right since spring.

“The growing season wasn’t very good. We had a cold summer and prior to that during the early stages it was a very wet spring. The two things you really don’t want when you’re growing hops.” . .

All New Zealanders to see connectivity benefits:

The Government is committed to making New Zealand’s communications network one of the best in the world, Communications Minister Simon Bridges says.

Minister Bridges spoke at the 2017 Rural Connectivity Symposium in Wellington today.

“In 2009 the internet in New Zealand was slow, and many people didn’t have adequate access at all – particularly in rural areas,” Mr Bridges says.

“We’ve come a long way in a relatively short period of time. Over 1.1 million households and businesses can now connect to Ultra-Fast Broadband, and over one-third of those are already connected. . . 


Do the bullies drink milk, eat ice cream?

May 24, 2017

The increasingly strident anti-dairy campaigns are hitting dairy farmers’ children:

Children of dairy farmers are being bullied at school, just because of the work their parents do.

This was revealed by DairyNZ director Ben Allomes, speaking at a dairy farmers’ forum in Manawatu recently.

Allomes says such behaviour is terrible, and it seems the campaign against dairying is being ramped up as the September election draws near.

Dairy farmers are becoming very sensitive to criticism and feel ‘got at’ by the mainstream media, he says.

“When we start hearing more of the negative media stories it impacts more on us and we are more critical of ourselves and more aware of the impact.

“When you read and hear nothing but negative media stories it brings you down and you are more sensitive to it.

“Farmers get out of bed to do their best for their family and the rest of their country but then get cut to pieces. It isn’t pleasant… especially for kids at school being bullied.” . . 

Do the children bullying dairy farmers’ children drink milk, eat cheese, ice cream or yoghurt?

Do the adults who swallow the anti-dairying messages eat dairy products and do they realise how much poorer the country would be and how much less there would be to spend on social services and infrastructure if it wasn’t for the billions of dollars in foreign exchange which dairying earns?

The economic contribution doesn’t excuse poor environmental practices.

But contrary to too much of the media coverage, most farmers are not environmental vandals and are working very hard to ensure are farming sustainably and, especially, that they are looking after water ways.


Rural round-up

May 23, 2017

Farmer groups set out to improve water quality – Sally Rae:

A new project set up in North Otago is aimed at helping farmers learn about how their activities can impact onwater quality.

Seven small ”pods” of farmers are being set up. Their members are setting achievable goals to achieve better water quality and then taking action to reach them.

The initiative is part of the ”local solutions built by local people” approach being taken by North Otago Sustainable Land Management Group (Noslam).

The project was a good way for the community to work together to find solutions for water quality in the Kakanui catchment, spokeswoman Jane Smith said.

The Otago Regional Council supported the approach being taken to help farmers meet their obligations under the water plan, which gave them room to be innovative in their farming practices, as long as they did not harm water quality, she said. . . 

Salmon net sabotage will cost farm $150k – Lydia Anderson:

Staff at a South Island salmon farm have been left reeling after vandals cut one of its nets and released 6000 young salmon into the wild.

High Country Salmon, near Twizel, has lost about $150,000 in earnings after the 800g salmon were cut free on Friday night.

Manager John Jamieson said he got an urgent call on Saturday from his workers, saying that one of the the farm’s topline nets had been cut. . . 

Learning from Tillamook dairy – Keith Woodford:

This last week I have been in Tillamook, in Western Oregon. Together with three colleagues from Calder Stewart, I have been exploring the dairy systems here, to see what learnings we can bring back to New Zealand.

Tillamook is a high rainfall zone on the Pacific Coast and has much of the same feel about it as the West Coast of New Zealand.  It is one of the few places in the world where dairy cows can be grazed on perennial pastures, and using the same grass species as we use in New Zealand. The latitude is 45 degrees North, which is a latitudinal mirror image of Oamaru, Alexandra and South Westland.  But climatically, it Westland that is the best comparison. . . 

Fit for transport animal welfare app launched today:

The Ministry for Primary Industries has launched a mobile app that helps farmers, transporters, stock agents and veterinarians determine whether an animal is fit for transport.

Developed with industry and vets, the app is an easy and efficient tool to help people make the right decision for the welfare of animals. It consolidates available information in to one place and doesn’t require internet access, which makes it suitable for on-farm use. . . 

Erosion control funding round opens:

Associate Minister for Primary Industries Louise Upston has welcomed the opening of the next round of funding for erosion control in the Gisborne region.

The Ministry of Primary Industries’ Erosion Control Funding Programme (ECFP) helps eligible land owners in the region contain erosion and improve susceptible land.

Improvements were recently made to the programme, including providing upfront funding to reduce the financial burden for land owners and extending the land categories eligible for treatment. . . 

Tis the season… for calf rearing:

It’s the busiest time of the farming year.

Between July and October many dairy farmers will be run off their feet with calving. Up at the crack of dawn (or even earlier), checking cows and not finishing until well after the sun has gone down.

To help prepare their members for another busy season, Dairy Women’s Network are running their annual ‘Successful Calf Rearing’ workshops in the regions from late May through to early July. . . 

NZ log prices advance in ‘humming’ forestry sector, AgriHQ says – Tina Morrison

(BusinessDesk) – New Zealand export log prices generally rose this month, as key fundamentals move in the country’s favour, AgriHQ said.

Prices lifted through all unpruned export log grades this month, while pruned logs experienced some minor weakness, according to AgriHQ’s monthly survey of exporters, forest owners and saw millers.

“The key fundamentals at the wharf gate have swung ever so slightly into NZ exporters’ favour,” AgriHQ analyst Reece Brick said in his report titled ‘Forestry sectors keeping humming’. . . 

Substantial pastoral station placed on the market for sale:

An expansive sheep and beef station has been placed on the market for sale. Waipaoa Station spreads across 1667 hectares some 58 kilometres north-west of Gisborne.

Waipaoa Station winters 16,500 stock units over 87 subdivided paddocks of easy-medium terrain, in conjunction with 358.5 hectares of adjoining leased pasture land subdivided into a further 12 paddocks. The property is being marketed for sale by Tender through Bayleys Gisborne – with tenders closing on June 16th 2017. . . 


Rural coverage not sparking

May 23, 2017

Technological progress ought to bring better mobile coverage but we’ve found it’s got  worse when we’re on the road.

We used to get good reception up the Waitaki Valley from Duntroon to the Otematata saddle, now it’s intermittent.

State Highway 1 from Christchurch south has suffered a similar drop in reliable reception and on other roads we use often, coverage is no longer consistent.

My farmer and I were blaming new phones and called into a Spark shop to discuss the issue last week.

The helpful young man who served us fired up his computer which told him that the changeover to 3G means rural coverage isn’t sparking as it used to. It’s led to patchy reception in many of the areas where it used to be better.

Friends who use Vodafone and 2Degrees tell us they are faring no better.

This isn’t just a matter of convenience.

Reliable mobile coverage is necessary for many rural businesses and it can also be a matter of safety when there’s an accident or illness.

We’re in desperate need of a bright spark to come up with a solution to improve reception and ensure mobile coverage is at its sparkling best.

 


Rural round-up

May 22, 2017

Rain severely cuts crop planting – Annette Scott:

Waterlogged South Canterbury farmland will lie idle over winter as farmers wait for spring opportunities to plant crops.

Twice the normal rainfall in March followed by four times the normal rainfall in April left farmers battling with sodden ground and unable to meet autumn planting commitments.

South Canterbury Federated Farmers arable industry chairman Michael Porter said to date only about 50% of farmers had managed to get the crops they planned into the ground. . . 

Report shows plenty to work on – Hugh Stringleman:

Lack of progress on mitigating nitrogen losses from dairy farms was evident in an otherwise mainly positive scorecard for the Sustainable Dairying: Water Accord (SD:WA) in year three.

The national average nitrogen leaching loss in 2015-16 was 39kg/ha a year — the same as the year before.

N-loss calculations in Canterbury and Otago (64 and 39 respectively) revealed higher figures than the rolling average of the two previous years of accord measurements (50 and 33).

This was because irrigation effects were included for the first time after a change in the Overseer computer model used to generate the leaching loss numbers. . . 

Dairy farm water report factual, independently audited:

Kiwis can be confident that dairy farmers are ‘walking their environmental talk’, says the chair of the Dairy Environment Leaders’ Group, Alister Body.

Commenting on the latest Sustainable Dairying: Water Accord report, Mr Body says the work being carried out by farmers to help achieve swimmable rural waterways is each year independently audited by Telarc SAI.

The Crown Entity subsidiary is the leading certifier of quality, environmental, food, and occupational health and safety management systems. . . 

Fairton closure unfortunate but inevitable – Allan Barber:

Silver Fern Farms decision to close its Fairton plant did not have much to do with Shanghai Maling’s investment, but was only a matter of time. Even the workforce had apparently come to accept the inevitable after seeing lamb numbers through the plant decline sharply from more than 1 million in 2010 to less than 500,000 last season and 325,000 in the latest six months.

This demonstrated graphically the unsustainability of keeping the facility open when the company’s modernised multi species operation at Pareora is only an hour down the road. In its notice of proposal to close, subject to a two week consultation period, SFF cited declining sheep numbers in the surrounding catchment area as a result of land use change to more profitable forms of agriculture. However not surprisingly the company didn’t mention its substantial loss of market share at the same time, 14% share loss over a six year spell since 2010. . . 

North Canterbury cattle stud makes it through drought and out the other side – Pat Deavoll:

Three years of drought and an earthquake that destroyed three farm buildings and badly damaged another has failed to deter Kaiwara Angus Stud of Culverden, in north Canterbury, from preparing for its annual bull sale in a month’s time.

Stud owner George Johns is in the process of producing the catalogue. “You think you have taken great photos through the year, but where are they when you need them,” he says with a laugh.

The stud was formed in 1971 by George’s father Bruce Johns. At the time the family farmed a property in Waiau but moved to Culverden and Kaiwara Farm 25 years ago. . . 

Trans-Pacific Partnership (TPP) Agreement Ministerial Statement:

Ministers and Vice Ministers from Australia, Brunei Darussalam, Canada, Chile, Japan, Mexico, New Zealand, Malaysia, Peru, Singapore and Viet Nam met today to discuss the Trans-Pacific Partnership (TPP) in the margins of the Asia-Pacific Economic Cooperation (APEC) Ministers Responsible for Trade.

The Ministers reaffirmed the balanced outcome and the strategic and economic significance of the TPP highlighting its principles and high standards as a way to promote regional economic integration, contribute positively to the economic growth prospects of its member countries, and create new opportunities for workers, families, farmers, businesses and consumers. . . 

Get to the heart of decision making:

Heartland Bank and NZX subsidiary AgriHQ have launched a free online livestock finisher tool, AgriHQ Finisher, to assist sheep and beef farmers to calculate the potential trading margin after finishing any livestock they are considering buying.

Heartland Bank’s head of rural, Ben Russell, said the old adage “information is power” is particularly true in this instance.

“With store livestock prices at historically high levels, the arrival of AgriHQ Finisher couldn’t be better timed. . . 

The strange sheep that baffled scientists – Eloise Gibson:

When a farmer in Otago, New Zealand, saw a bizarre-looking lamb in his flock, he first assumed a wild goat had snuck in and impregnated one of his ewes. The newborn had a lamb-shaped body yet was coated with straight, lustrous wool, more like the hair of an angora goat than a typical sheep.

News of the “geep” (or sheep-goat hybrid) soon reached the local papers but, when scientists saw photos, they immediately suspected the baby animal was something else. For decades they had been hoping to study a rare woolly mutant called a “Felting Lustre” mutant: a sheep which has straight, fine wool instead of the usual crimped stuff.

“You can see it when the lambs are born, they have a different sheen,” says Jeff Plowman, a wool researcher at New Zealand’s AgResearch science company. “It doesn’t have a dull look, it’s shiny and bright.”. . 

 


Rural round-up

May 19, 2017

Farmers ‘dead keen’ to improve water practices – council – Alexa Cook:

A group of farmers near Whakatāne are working with the regional council to try and improve water quality by changing the way they farm.

Agribusiness consultant Ailson Dewes has gathered about 15 dairy farmers on behalf of the Bay of Plenty Regional Council to understand more about how their farming systems can impact water quality.

Ms Dewes said the group was facing the issue head-on.

“They are sitting around the table, they are exposing all their numbers in terms of the health of their business, their environmental footprint, the way they farm – and they’re saying ‘we realise the way we farmed in the past is not the way we can farm in the future’. . . 

2017 Dairy Award Winners Environmentally Conscious

The 2017 New Zealand Dairy Industry Awards winners and finalists represent a group of people who are acutely aware of environmental issues and the dairy industry’s role in farming responsibly.

In front of nearly 550 people at Auckland’s Sky City Convention Centre last night, Christopher and Siobhan O’Malley were named the 2017 New Zealand Share Farmers of the Year, Hayley Hoogendyk became the 2017 New Zealand Dairy Manager of the Year and Clay Paton was announced the 2017 New Zealand Dairy Trainee of the Year. They shared prizes worth over $190,000. . . 

Fonterra Australia to pay more in 2017/18 season with improving business, milk price –  Rebecca Howard:

(BusinessDesk) – Fonterra Cooperative Group says an improvement in its Australian business and rising milk prices mean it will be able to pay its suppliers more in the season that kicks off in six weeks.

Fonterra Australia expects to pay its Australian suppliers a range of A$5.30-to-A$5.70 per kilogram of milk solids in the 2017/18 season as well as an additional payment of 40 Australian cents/kgMS. It paid A$5.20/kgMS in the season that is just ending. . . 

Counterfeits, name recognition a challenge for Zespri in quest for Chinese market dominance – Sophie Boot:

(BusinessDesk) – Zespri Group’s expansion into China is continuing at pace, after the country last year overtook Japan as its biggest retail market, though the company is battling against counterfeiting and theft from local growers who want a slice of its market.

Lewis Pan, the fruit marketer’s China country manager, says Zespri is focusing on brand recognition to shore up its dominance in the market. China delivered almost $300 million in revenue in the 2016 financial year, a 60 percent lift on a year earlier, and accounting for 16 percent of Zespri’s total $1.91 billion of revenue that . . 

Wilding pines control work nears million hectare mark:

Primary Industries Minister Nathan Guy and Conservation Minister Maggie Barry say wilding pines control work has nearly reached its first year target of a million hectares.

“20 per cent of New Zealand will be covered in unwanted wilding conifers within 20 years if their spread isn’t stopped. They already cover more than 1.8 million hectares of New Zealand and until now have been spreading at about 5 per cent a year,” Mr Guy says.

“The National Wilding Conifer Control Programme was put in place in 2016 to prevent their spread and systematically remove them from much of the land already taken over.” . . 

Ten years after the crisis what is happening to the world’s bees? –  Simon Klein:

Ten years ago, beekeepers in the United States raised the alarm that thousands of their hives were mysteriously empty of bees. What followed was global concern over a new phenomenon: Colony Collapse Disorder. The Conversation

Since then we have realised that it was not just the US that was losing its honey bees; similar problems have manifested all over the world. To make things worse, we are also losing many of our populations of wild bees too.

Losing bees can have tragic consequences, for us as well as them. Bees are pollinators for about one-third of the plants we eat, a service that has been valued at €153 billion (US$168 billion) per year worldwide.

Ten years after the initial alarm, what is the current status of the world’s bee populations, and how far have we come towards understanding what has happened? . . .

Delegat grape harvest growth slows, still has enough stock to meet projected sales – Paul McBeth:

(BusinessDesk) – Delegat Group recorded a small gain in its Australian and New Zealand grape harvest but has enough stock on hand to meet its projected sales targets for the coming year.

The Auckland-based winemaker, whose brands include Oyster Bay, had a 4 percent increase in the New Zealand harvest to 34,595 tonnes, while its Australian harvest grew 6 percent to 2,760 tonnes, it said in a statement. Last year, Delegat’s New Zealand harvest expanded 33 percent from a weather-affected crop in 2015, while the Australian vineyards delivered a 56 percent increase in 2016. . . 


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