Rural round-uup

January 18, 2017

Brexit – Pommy Rogernomics? – Adolf Fiinkensein:

It appears British PM Theresa May is going for a hard landing.  Cut the ties to the EU and go it alone, right from the word go.

What will this mean for UK fat lamb producers?  What opportunities will this provide for NZ and Australian frozen lamb exporters?

It seems to me UK farmers will undergo the same shocks that beset NZ farmers when Roger Douglas delivered the much needed coup de grace to the now notorious Supplementary Minimum Prices. . .

Silver Fern Farms payout ‘used as a sweetener’ – Alexa Cook:

Silver Fern Farms’ dividend of 30 cents per share will be a one-off because it was only used to sweeten a deal with a Chinese company, according to one shareholder.

The company is New Zealand’s largest meat company and has confirmed today it will pay $35.5 million in dividends to its shareholders on 14 February. 

The government approved the controversial $260 million deal with Chinese company Shanghai Maling last year after a group of shareholders fought for more than a year to keep the meat company in New Zealand ownership, arguing the original shareholder approval of the joint venture was unlawful. . . 

Apples in short supply across the country – Laura Wlaters:

Apples are in short supply due to a slow start to the New Zealand season.

The popular fruit is usually available year-round but this week shoppers were shocked to see empty shelves where the granny smiths and royal gala would usually sit.

A Countdown spokeswoman said there were apples in their stores at the moment but they were not New Zealand apples.

“We’re in between seasons at the moment,” she said. . . 

Three NZ shearers set world shearing record – Che Baker:

A former Southland shearer made his way into the world record book again after breaking the three-stand strong-wool ewes shearing record for eight hours.

Eru Weeds, of Ohai but now based in Roxburgh, was joined by shearers James Mack, of Weber, and Luke Mullins, of Te Awamutu, at Waitara Station, inland northwest of Napier, to smash the record of 1347 by 264 sheep, finishing with a tally of 1611.  . . 

Constant rate increases irk – Pam Tipa:

THE DAYS of New Zealand having an undue reliance on property taxes to fund local government are coming to an end, claims Local Government New Zealand (LGNZ) chief executive Malcolm Alexander.

He was answering Federated Farmers’ questioning of the priorities and fiscal discipline of New Zealand’s councils, as rates continue to outstrip cost indexes. Alexander says it is pleasing to see others parties like Federated Farmers and the tourism industry are picking up on the need for more flexible funding tools for rates.

This is an issue which no longer can be ignored, he says. The Feds say between 2006 and 2016 there has been 77% hike in rates by the country’s 13 city, 54 district and 11 regional councils.  . . 

Four chartered 747s carry cherries to Asia for Chinese New Year – Amanda Cropp:

Singapore Airlines has put on four special charter flights to get hundreds of tonnes of South Island cherries to Asia in time for Chinese New Year.

The first two 747 “cherry flights” each carrying up to 95 tonnes of fruit flew out of Christchurch on Thursday and Friday.

Another two are scheduled over the next week to get fruit to Singapore for distribution to South East and North Asian markets. . . 


GDT edges up

January 18, 2017

The GlobalDairyTrade price index increased by .6% in this morning’s auction.

That’s not a significant change but dry weather in several regions has led to a drop in production and lower supply should hold or boost prices in the next auction. Supply in Northland is down 7%.

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Rural round-up

January 17, 2017

Developing wealth from water – Keith Woodford:

Current controversies about exporting water, be that in bottles or in bulk tankers, draw attention to New Zealand’s key resource.  Yes, that resource is indeed water. In a world that is chronically short of water, we in New Zealand are greatly blessed.

It is because we are so blessed that until recently we have taken the presence of water for granted. Essentially it has been a free resource.  As a consequence, water law in New Zealand is real messy. And that leads to major impediments to water being used efficiently, and in ways which the different groups in society can agree on as being ‘fair’. 

Water that falls as rain on private land has de facto use rights. But once that water runs off into a stream, or permeates below the level where plants can extract it, then it belongs to the Crown – in effect the people of New Zealand. . . 

Silver Fern Farms Annual Result:

Silver Fern Farms has reported a net operating loss before tax and impairment of $7.5m million for the 12 months ended September 2016 on income of $2.2 billion. This compares to a net operating profit of $30.8m and income of $2.5 billion the prior year.

Operating earnings before interest, tax, depreciation and amortisation (EBITDA) were $32.1m, down from $90.5m the prior year. . . 

Loss ‘disappointing’ for Silver Fern Farms – Sally Rae:

Silver Fern Farms chairman Rob Hewett has described the company’s financial results as “particularly disappointing” after it posted a $30.6million after-tax loss.

The loss, for the year ended September, compared with a $24.9million net profit in the previous financial year.

Operating earnings before interest, tax, depreciation and amortisation (ebitda) were $32.1million, down from $90.5million.

A $7.5million net operating loss, before tax and impairment and on income of $2.2billion, compared to a net operating profit of $30.8million and income of $2.5billion the previous year. . . 

$34.5M Dividend for Co-Op Shareholders:

Silver Fern Farms Co-operative Limited shareholders will receive a $34.5 million special dividend on 14 February.

The dividend of 30 cents per share on all Ordinary Shares and Rebate Shares follows the completion of Shanghai Maling Aquarius’ $267m investment in Silver Fern Farms Limited and the distribution to the Co-operative of $57million from that process which occurred in December 2016.

Silver Fern Farms Co-operative Chair Rob Hewett says the special dividend will be welcome news to shareholders. “This is the first dividend shareholders have received since 2008. Their support and patience as we have developed our Plate to Pasture value added strategy over the past 7 years has been critical to Silver Fern Farms.” . . 

Patron announced for QEII National Trust:

The Queen Elizabeth II National Trust is pleased to announce that Her Excellency The Rt Hon Dame Patsy Reddy has accepted its invitation to become Patron.

National Trust CEO Mike Jebson said the National Trust is honoured to have the Governor-General’s patronage.

‘Her Excellency considers conservation and sustainable practices to be of great importance to New Zealand.

‘Her sponsorship is a wonderful endorsement of the efforts the National Trust and its members do in this field of work for the benefit of all New Zealanders,’ Mr Jebson said. . . 

Last bastion of pioneering family’s links to the past goes on the market for sale:

A character-filled homestead linking a pioneering family with colonial roots dating back some 150 years in New Zealand’s past, has been placed on the market for sale.

The museum-like home linked to the Alison family in the Northland township of Waipu is adjacent to farm land first settled by direct descendants of the founding family in 1866.

With the last two grand-children of pioneering settler Duncan Alison passing away without any children of their own, the four-bedroom home and lifestyle block-sized landholding have been placed on the market for sale. . . 

Karaka 2017 to Showcase the Cream of the Australasian Sire Crop:

All of the biggest names in New Zealand and Australia’s sire ranks will be represented in force at the upcoming 2017 National Yearling Sales Series at Karaka.

Waikato Stud stallion Savabeel had a boomer of a Sale in 2016, amassing an aggregate of $11.545 million in the Premier session alone. Last season’s champion sire in terms of domestic, Australasian and worldwide earnings, and the leading sire again so far in 2016-17, Savabeel will again be represented by an impressive crop of 64 yearlings in the Premier catalogue. . . 


Rural round-up

January 16, 2017

In lament of the NZ Farm – Dr Rosie Bosworth:

On the road to becoming the Detroit of agriculture.

Colleague and Christchurch based technology strategist Ben Reid, recently tweeted that New Zealand is in danger of fast becoming the “Detroit of Agriculture” – a rustbelt left behind after production has moved elsewhere.” Unfortunately, I am inclined to agree.  With technologies, science and new business models evolving, accelerating and converging at current breakneck speeds, industries globally – from banking, transport, accommodation and healthcare are having the rug pulled right out from beneath their feet. And sadly (at least for New Zealand farmers), agriculture, our economic mainstay, is next up on the chopping block. Fast en route towards becoming a sunset industry.  Overtaken and displaced by disruptive technologies, science breakthroughs and new business models. And the people at the helm? Not the people on the inside like our dairy farmers, apple breeders and savvy winemakers. But by sneaker wearing tech millennials and wealthy Tesla driving Silicon Valley venture capitalists and well funded research agencies. . . 

Dry conditions take toll on Northland farmers:

A drought declaration in Northland is just a few weeks away, but as conditions in the region grow tougher, Federated Farmers says.

Federated Farmers Northland president John Blackwell said spring had been good for the region, but a dry November and December had caused problems across the board.

Halfway through November the rain had disappeared and south-westerly winds had had a very drying effect on the land, Mr Blackwell said. . . 

Dairy NZ to appeal decision on Greenpeace ad – Catherine Hutton:

One of the groups who complained that a Greenpeace advertisement was false and misleading says it plans to appeal the advertising watchdog’s decision.

The Advertising Standards Authority (ASA) received 12 complaints about the advert, which blamed the dairy industry for water pollution, but dismissed all of them.

Dairy NZ, which represents dairy farmers, would not comment on the reasons it was appealing, ahead of the hearing.  . .

Hurunui Water Project says Greenpeace claims are exaggerated and out of date:

North Canterbury irrigation Company Hurunui Water Project today rejected claims by Greenpeace that the proposed scheme will lead to large-scale intensive dairying and consequent degradation of the Hurunui River.

“Greenpeace needs to actually read the latest information on the Hurunui Water Project (HWP) proposal that they have,” says HWP Chief Executive Alex Adams. “If they had done so, they would have seen the scheme is very different now to the original proposal they seem to be referring to, and that dairy development as a result of the scheme is planned to be to be a minor component.”

Adams said a 2016 survey of HWP shareholders showed the vast majority of the dryland farmers simply wanted irrigation to provide the assurance they needed to continue with their existing farming practice; only some 10 percent indicated that dairy conversions might be an option. . . 

Korean FTA delivers new round of tariff cuts:

More local businesses looking to expand into Korea will benefit from the latest round of tariff reductions under the New Zealand-Korea Free Trade Agreement, Trade Minister Todd McClay says.

The start of 2017 saw two thirds of New Zealand’s exports to Korea become duty free, up from 46 per cent in 2016.

“Thanks to this continued progress under the FTA, even more New Zealand businesses can compete favourably in the Korean market,” Mr McClay says.

New Zealand and Korea celebrated the first anniversary of the agreement in December 2016. Since the FTA’s entry into force in December 2015, New Zealand has experienced strong results particularly in the food and beverage sector where exports to Korea have increased by over 16%. . . 

Fonterra milk collections remain below previous season, trend shifts in Oz – Edwin Mitson

 (BusinessDesk) – Milk collections by Fonterra Cooperative Group this season are continuing to track below the previous year, mainly due to lower production on the North Island.

Collections in the seven months from June 1, 2016 to Dec. 31, 2016 were 881 million kilogrammes of milk solids, a fall of 5.5 percent on the same period in 2015, when prices were much lower. Some 186 million kgMS were collected in the month of December, down 5 percent on the same month a year ago.

There was a clear gap between the two main islands of New Zealand. Collections on the North Island fell 7 percent from June to December, while on the South Island they dropped just 2 percent in the same period. . . 

Commitment Pays Dividends for Taranaki Egg Farm Worker:

Team spirit, pride in her work and a determination to succeed in her studies have proved a winning combination for Taranaki woman Amy Kimura, who was recently named Poultry Industry Trainee of the Year for 2016. The national award is given each year to the top-performing trainee in all of the training courses run by the poultry industry in cooperation with the Primary Industry Training Organisation (PrimaryITO).

Amy, who is of Ngati Raukawa descent, is currently a Farm Worker at Aviagen New Zealand Ltd’s Taranaki production farms where her duties include general care and responsibility for the welfare of the poultry in her care. . . 

17 myths about agriculture in 2017 – Peterson farm Bros:

1. GMOs are evil

GMOs are a valuable technology used in science, medicine, and agriculture. Farmers use them to increase yields, reduce inputs, improve the soil, and provide resistance to drought, insects and weeds. There are GMOs being used all throughout society, and there is a very good chance you’ve consumed or used a GM product today. We do believe people should be free to avoid GMOs if they want to, but GMOs have been around for 2 decades (over a trillion meals consumed) without a single sickness or health issue resulting from consumption. . .

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Vandalism, activism or personal?

January 16, 2017

Is this vandalism environmental activism or someone with a personal grudge?

“Committed” offenders  would have been drenched as they slashed the tyres on three pivot irrigators, causing thousands of dollars worth of damage,  police said.

Senior Constable Craig Bennett, of Kurow,  believes the attack on the irrigators  occurred early on Saturday near State Highway 8 and Broken Hut Rd, just outside Omarama. Snr Const Bennett said it was too early to say if the vandalism was caused by an individual or several people, but the irrigators were not easily spotted from the road and fences would have been navigated by someone with  intent.

Forty-four tyres, valued at up to $800 each, were slashed, he said.

Omarama farmer and pivot irrigator owner Richard Subtil was upset  about the damage and urged people to come forward with information about the attack.

He believed the vandal or vandals  either had a problem with him or an issue with irrigation and decided to attack his equipment.

“I really hope it’s the latter. I’m trying to understand what motivated someone to do it. If it’s a personal vendetta I’m unsure what it’s about.

The Subtils won the 2015 Canterbury Ballance Farm Environment Awards (BFEA).

At a BFEA ceremony on March 26, the Subtils also collected the Massey University Innovation Award, WaterForce Integrated Management Award, Ballance Agri-Nutrients Soil Management Award and the Environment Canterbury Water Quality Award.

They are innovative farmers who have been recognised for their careful management of their farm and the environment. Entrants in the BEFA are also judged on their contribution to their community.

That doesn’t rule out a personal vendetta but this couple is very highly regarded which makes it less likely.

The damage could be an act of vandalism.  But irrigation in this area has attracted vehement opposition so it could be the work of one or more environmental activists who object to the greening of what was an arid landscape.

 


Rural round-up

January 13, 2017

Global milk production downturn bodes well – Simon Hartley:

The global downturn in milk production bodes well for New Zealand’s dairy farmers for much of 2017 and is increasing the likelihood of a boost in estimated payouts.

Between the key whole milk powder prices rising 45% during the past six months and six of the seven major dairy-producing countries reporting production declines, Rabobank’s dairy quarterly report paints a reasonably positive outlook for 2017.

However, recovery may become the catchphrase of the current season, as opposed to outright profitability, and the US currency may yet have a major impact, and on various markets.

Co-author Rabobank dairy analyst Emma Higgins said the recent rally in global dairy prices heralded further positives as global efforts to increase overall production would take time. . . 

A woman valued and connected within the dairy industry – Anne Boswell:

Anne Boswell talks to an Atiamuri dairy farmer who can’t sit still, busy with family, friends, land and organisations helping farming women succeed.

Connection – to one’s family, friends and like-minded people – is fundamental to personal wellbeing but can be challenging for farmers, says Atiamuri dairy farmer and Dairy Women’s Network trustee Karen Forlong.

“Fundamentally we are hard-wired to need to belong to something, to feel a connection to something over and above ‘I am what I work at’,” she says. 

“Farming’s a business, but it’s so much more than that, and equally, the success of my farm does not define me as a person.” . . 

Ryan looks forward to challenges:

The New Zealand Farm Environment Trust’s new General Manager James Ryan is looking forward to the challenges the new job will bring.

Christchurch-based James Ryan, a former policy manager with DairyNZ, was appointed in October this year.  

He says the Trust will play a crucial role in guiding farmers through an era of increasingly complex sustainability issues. . . 

Fonterra & LIC Set to Release Farm Performance System – Agrigate:

Fonterra and Livestock Improvement Corporation (LIC) are in the final stages of developing an online tool, Agrigate, designed specifically to help farmers improve their farm performance through the use of their existing data.

Agrigate has been developed by the two farmer-owned co-operatives to make it easier for farmers to:

• access key information about their farming business in one place

• identify areas where they can benchmark their performance on a scale that they have not been able to in the past

• make smarter and faster decisions

• manage their environmental information (e.g. nutrient management) . . 

NZ commodity prices rise for eighth month, buoyed by dairy recovery – Rebecca Howard

(BusinessDesk) – New Zealand commodity prices rose in December, the eighth consecutive monthly gain, as dairy prices continued to improve.

The ANZ Commodity Price Index advanced 0.7 percent in December to 277.3 and was up 16.5 percent on an annual basis. In New Zealand dollar terms the index increased 2 percent in the month and rose 9.4 percent on an annual basis as the kiwi eased against the greenback and the British pound.

Dairy was the standout performer as tight global milk supplies and improved Chinese import demand continued to be the main drivers, said ANZ agri economist Con Williams. . . .

Comvita expects to realise $30M from sale of Medihoney, shares in US partner – Sophie Boot:

(BusinessDesk) – Comvita, the manuka honey products company, has sold its Medihoney brand to US partner Derma Sciences for about $19 million, and will reap a further $11 million selling Derma shares in a takeover offer of the Nasdaq-listed company.

The gross proceeds of the Medihoney deal will amount to US$13.25 million, with a US$5 million earnout payable on sales milestones being achieved, Comvita said in a statement to the NZX. Comvita also owns 1.1 million shares in Derma Sciences, which announced on Jan. 10 that it will be acquired by Nasdaq-listed Integra LifeSciences for US$7 per share by the end of March. That values Comvita’s stake at about $11 million, it said. . . 

Fonterra extends sway over Aussie dairy industry with Bellamy’s ‘poison pill’ – Brian Robbins:

Fonterra is in the box seat to control the future of Australian company Bellamy’s Organic under an effective “poison pill” arrangement that can be triggered if a shareholder group controls more than 30 per cent of Bellamy’s capital.

The troubled infant formula group outlined details on Wednesday of a new arrangement with Fonterra that allows the New Zealand group to terminate a key supply deal if a shareholder group controls more than 30 per cent of the Tasmanian company’s capital.

The disclosure, along with news of the replacement of Laura McBain, the chief executive of Bellamy’s, by another senior executive, Andrew Cohen, on an interim basis, came as part of a trading update to investors. . . 

Tasmanian dairy company Bellamy’s CEO Laura McBain to leave after price plummet – Caitlin Jarvis:

Launceston-headquartered dairy company Bellamy’s has replaced chief executive Laura McBain.

The embattled baby formula company announced to the Australian Securities Exchange (ASX) that Andrew Cohen has been appointed acting chief executive.

The announcement was made by the organic dairy company’s chairman Rob Woolley. . . 

Bid to heritage list Brumbies – John Ellicott:

Brumbies may be protected for their cultural heritage value in new legislation being drawn up and already, according to the proponents, met with approval by NSW Nationals leader John Barilaro.

With  the expected release soon of the new Wild Horse Management Plan, lobby groups are fighting to preserve substantial brumby populations in national parks, especially  in Kosciuszko National Park.

The Snowy Mountains Bush Users Group wants to prevent a culling of brumbies, which may form part of the new management plan – with ground shooting touted as the most likely form of control. . . 

North And South Island Wool Auctions Receive Varied Support:

New Zealand Wool Services International ltd’s CEO Mr John Dawson reports that the wool auctions in the North and South Islands this week produced considerable price variations for comparative types with the North Island levels well below the South’s.

Of the 19500 bales on offer, 7804 percent sold with the weighted currency indicator, compared to the last sale on 21st December was 1.62 percent higher, adding more downward pressure on local prices.

Mr Dawson advises that the South Island sale compared to when last sold on 15 December saw; . .. 

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Only a farm kid ‘gets’ this.


Rural round-up

January 12, 2017

This farming mum’s in charge – Kate Taylor:

A Hawke’s Bay woman laughs when people ask to speak to her husband about every-day decisions on the farm. Kate Taylor interrupted her at work in the sheep yards to find out why.

One of the first things Hawke’s Bay farmer Caroline Smith does when she stops for a cup of tea after drafting cull ewes is to breastfeed baby Clara.

She juggles looking after a young family and farming 240 hectares and loves it, although one of her pet hates is having people phoning on farm business asking to speak to her husband.

“They assume it’s not me running the farm. I say they can speak to my husband if they like but he’s an electrician so might not be too helpful for the information they’re after.”

‘Ripper’ season for southern contractors – Rob Tipa:

Many South Island rural contractors have had what they are describing as “a season out of the box” with outstanding silage, hay and balage crops made so far this summer.

It is a different story in the North Island where generally harvests have been later and patchier.

New Zealand president Steve Levet, of Wellsford, told the NZ Farmer weather conditions during spring and early summer in the north had generally been colder, wetter and windier than usual. . . 

Meat co-op offers new app to farmers – Sudesh Kissun:

Meat co-op Alliance Group has launched a new app to support its 5,000 farmer shareholders.

The Farm Alliance app, developed as part of the cooperative’s business strategy, provides a range of resources for farmers to help them manage the processing of their stock. Farmers can now see their own livestock processing results in real time, access their latest kill sheets, make booking requests, check statistics and schedule and receive industry updates.

Mark Blandford, chief information officer at Alliance Group says it is constantly looking for new ways to help farmer shareholders with their businesses. “Farmers can get their kill sheets delivered straight to their mobile phones as soon as their stock is processed and they will be automatically notified when new information is available. “The menu also includes all of a farmer’s kills for the previous six months and annual kill statistics.  . . 

China’s giant cow farms leave neighbours up milk creek – Tom Hancock:

Giant piles of black manure towering over cornfields, while rancid-smelling effluent from thousands of cows spills onto the land—this is the price of a glass of milk in China today.

Large-scale dairy farms have boomed in the Asian giant, as its near 1.4 billion consumers overcame centuries of cultural reluctance to embrace the white fluid.
An economic boom and government backing transformed dairy into a $40-billion-a-year industry, shifting production away from small-scale producers towards massive megafarms with up to 10,000 cattle—and a lot more waste. . .

One of Europe’s largest supermarkets will sell burgers and meatballs made from meal worms – Leanna Garfield:

Beef might taste delicious, but producing it exhausts our planet’s land and water. As a result, more chefs and retailers are searching for alternatives that taste like beef — including insects.

Starting May 2017, Coop, one of Switzerland’s largest wholesale retailers, will start selling “burgers” and “meatballs” — both primarily made from mealworm larvae — at select grocery locations. It will partner with Essento, a Swiss startup that makes food from insects, Switzerland’s the Local reports. . . 

New Zealand Chinese Jockey Club to Launch at Karaka Million:

In exciting news announced today, a group of private investors have established the New Zealand Chinese Jockey Club to cater for the high level of interest in racehorse ownership by the Chinese community, both here in New Zealand and internationally.

Headed by Mr Joshua Zong, a prominent Chinese business owner and property developer based in Auckland, the New Zealand Chinese Jockey Club will be officially launched on the eve of New Zealand Bloodstock’s National Yearling Sales Series at a function to be held at the Karaka Million Twilight Meeting on Sunday 29 January at Ellerslie. . . 

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Happiness does have a smell.1


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