Rural round-up

February 22, 2019

Guy Trafford assesses how the Tax Working Group report would change signals to farmers, and how they are likely to respond – Guy Trafford:

Given the signals that have been coming out from the Tax Working Group over the last few months there haven’t been too many surprises as to what was revealed today. That may, probably will, come after the politicians have had their play with it.

From a farming perspective there are some pluses and minuses.

Succession planning
The roll over clause is attractive, but liable to alter land/business selling behaviour. It is only available as a succession tool in the event of the assets being passed on after the death. It is then made a liability in the event of the next generation deciding to sell at which point the value goes back to 2021 or whenever the older generation first took over the land. . . 

Grass on the A2 side of the dairy fence is looking greener – and the profits plusher – Point of Order:

The  contrasting   fortunes of  Fonterra  and  A2 Milk came into the  spotlight   this  week,  after the  latter  reported a  startling 55%  rise in  half-year net profit  to  $152m.  Fonterra  shareholders will be ruefelly recalling  their  company’s  performance last year  when  it  reported its  first-ever  net  loss  of  $196m.

A2 Milk  shareholders  are  marching to a  very  different  tune.  Despite  one market  analyst  reckoning its share price had  become over-priced, buyers  pushed  it up  by  more than  a dollar to  $13.95  as they absorbed  news  of   strong sales growth in all key product segments – infant formula, liquid milk and milk powders. . . 

Fatty milk Jersey cows in demand – Yvonne O’Hara:

”Fat is back” and no longer the ”ogre” it used to be, and that is good news for Jerseys as they have a higher fat content relative to protein than many other breeds.

DairyNZ’s New Zealand Animal Evaluation Unit (NZAEL) released its annual Economic Values (EV) index last week to reflect the increased global demand for high fat dairy products, compared to protein.

Economic Values is an estimate of a trait’s value to a dairy farmer’s production and profitability and contributes to cattle breeding worth (BW). . . 

LIC welcomes Fonterra’s a2 announcement:

The farmer-owned co-operative, which breeds up to 80% of the national dairy herd, says this increase in supply matches the demand it has experienced for its A2 genetics and testing services.

Last year, the co-operative introduced dedicated A2 bull teams and extended its test offering in anticipation of Fonterra’s next move with The a2 Milk Company.

LIC’s General Manager NZ Markets, Malcolm Ellis, who is also a Fonterra shareholder and farm owner, comments:

Fonterra scours world for $800m cash injection – Hugh Stringleman:

Where in the world will Fonterra get $800 million to reduce its debt while returning to profitability and making enough money to pay a good dividend on the $6 billion dairy farmers have invested in the co-operative? Hugh Stringleman looks for answers.

March 20 looms as the next milestone in Fonterra’s return to financial health and wellbeing when it declares first-half results for the 2019 year.

It will also say where asset sales, joint ventures and partnerships will be made or amended to improve the balance sheet. . .

Kiwifruit sector front-foots campaign to find pickers:

The kiwifruit industry is pulling out all the stops to make sure the 2019 harvest, which starts mid-March, isn’t short of workers – ensuring that quality Zespri kiwifruit is sent to overseas customers in premium condition.

New Zealand Kiwifruit Growers Incorporated (NZKGI) Chief Executive Officer Nikki Johnson says the amount of green and gold kiwifruit on the vines is forecast to be even higher than last year’s harvest, meaning around 18,000 workers will be needed. “Last year, the harvest was at least 1,200 workers short at the peak – we don’t want a repeat of that.” . . 

Central Districts Field Days has something for everyone:

More than 26,000 people are expected to flock to Manfeild in Feilding this month for New Zealand’s largest regional agricultural event, Central Districts Field Days.

Now in its 26th year, the 2019 event has plenty to offer all – from farmers and foodies to tech heads and townies.

“We’re really excited about this year’s event,” says Stuff Events & Sponsorship Director David Blackwell. “There are a record number of exhibitors and we have some great new areas and activities that are sure to make this year’s Central Districts Field Days a community event to remember.” . . 

Give it a go” – Bay or Plenty Young Grower of the Year  :

Alex Ashe, a technical advisor at Farmlands Te Puna, was named Bay of Plenty’s Young Fruit Grower for 2019 at an awards dinner in Tauranga last night.

The practical competition took place last Saturday, 9 February, at Te Puke Showgrounds, where the eight competitors tested their skills and ability to run a successful orchard in a series of challenges. These were followed by a speech competition discussing future disruptors to horticulture at the gala dinner last night. . .

Wine survey reveals profit, innovation and price on the up :

For only the third time in the history of the annual survey, all five winery tiers featured profitable results in 2018

Survey results indicate a positive correlation between innovation and financial performance.

2018 saw a 1.8 percent lift in average prices received by Kiwi wineries. . .

Veganism is on the rise, but experts say the cons of the diet outweigh the pros – Martin Cohen and Frederic Leroy:

After decades in which the number of people choosing to cut out meat from their diet has steadily increased, 2019 is set to be the year the world changes the way that it eats. Or at least, that’s the ambitious aim of a major campaign under the umbrella of an organisation simply called EAT. The core message is to discourage meat and dairy, seen as part of an “over-consumption of protein” – and specifically to target consumption of beef.

The push comes at a time when consumer behaviour already seems to be shifting. In the three years following 2014, according to research firm GlobalData, there was a six-fold increase in people identifying as vegans in the US, a huge rise – albeit from a very low base. It’s a similar story in the UK, where the number of vegans has increased by 350 per cent, compared to a decade ago, at least according to research commissioned by the Vegan Society. . . 

 


Rural round-up

February 21, 2019

Urban run-off floods nearby farms :

Farming on the city limits presents a paradox for Papamoa farmer Andrew Dovaston, one that on his bad days farming sometimes has him thinking about the benefits of cashing up to keen developers.

He is one of about a dozen farmers remaining down Bell Road, the boundary between Western Bay of Plenty District and Tauranga City and over the years he has seen the city’s lights creep ever closer as development pushes southwards from the country’s fastest-growing city.

The second-generation Dovaston family property was developed by Dovaston’s parents when they moved from Britain, initially intent on leaving their farming careers there behind and buying a service station.  . .

Golden Bay farmers suffering under one-in-20-year drought – Tracey Neal:

Nelson-Tasman is struggling with its driest weather in decades, with Golden Bay now in a one-in-20-year drought.

The district’s already ailing farmers and growers are in some areas operating on about 30 percent of their normal water allowances for irrigating crops.

In urban areas like Richmond and Mapua, gardens have dried up due to the total ban on watering.

Meanwhile, the State of Civil Defence Emergency will now be extended a further week as firefighters continue to battle the Tasman fire. . . 

The pain of Mycoplasma bovis is not being shared fairly – Keith Woodford:

Anyone reading the official information from MPI would be entitled to believe that the Mycoplasma bovis eradication campaign was going remarkably well. However, amongst the directly afflicted farmers, things remain far from sweet.

MPI has acknowledged that afflicted farmers have taken a hit on behalf of the industry, but as one greatly afflicted farmer said recently to me, this is the only team that he has been part of where, as a team member, he gets left behind.

I know of three farmers who have had to put their farms up for sale due to the Mycoplasma bovis outbreak and its implications.  There are others heading that way. I have yet to meet an afflicted farmer who does not feel hard done by. . . 

A2 more than doubles 1H net profit – Rebecca Howard:

 (BusinessDesk) – A2 Milk’s first-half profit lifted 55.1 percent as infant formula revenue continued to soar.

Net profit rose to $152.7 million in the six months ended Dec. 31 from $98.5 million a year earlier as sales climbed 41 percent to $613.1 million, Auckland-based, Sydney-headquartered a2 said.

Sales of infant formula totalled $495.5 million for the half – an increase of 45.3 percent on the prior year driven by share gains in China and Australia. . . 

It’s not shear luck – Luke Chivers:

Record-breaking shearer Aaron Haynes has sheared his way to land ownership. Luke Chivers reports on his successes.

It was a rare moment at the Central Hawke’s Bay A and P Show in November when the open shearing final was won by a competitor who had never previously a top grade title.

That competitor was Aaron Haynes. And if his name sounds familiar there is good reason why. . .

Drought, pests could force India to grant duty-free corn imports – Rajendra Jadhav:

 Below-normal monsoon rains and an infestation of the fall armyworm, which devastated African crops in 2017, have slashed India’s corn output and boosted prices, increasing the chances the government will grant duty-free corn imports for the first time since 2016. 

The shift to imports in the world’s seventh-largest corn producer, which typically exports to Asia, highlights the breadth of the crop losses due to the drought and armyworm. It also demonstrates the potential harm that the armyworm may wreak on India’s agricultural economy, which supports nearly half of India’s 1.3 billion people.

India harvests two sets of corn crops a year, a winter crop from March and a summer crop from September. . . 

Stop slugs munching your profit margin:

In the last few planting seasons we have seen favourable conditions for slugs, and if favourable conditions occur again this autumn, slug populations will quickly bounce back from the hot and dry summer and pose a risk to autumn-sown crops and grass.

We all know that slugs can be devastating to newly sown crops and pastures, so it makes sense to check paddocks before sowing to see how bad the risk of slug damage is. . .


Mooving to a2 milk

February 20, 2019

Fonterra is signing up farms to supply the a2 Milk company:

Mike Cronin, Fonterra Managing Director of Co-operative Affairs, says “Signing up New Zealand farms to significantly increase supply of high quality milk to The a2 Milk Company is a positive step forward. It clearly shows the strength of our strategic relationship, and our shared commitment to fast-track market growth and enable farmers to create additional value from their milk.”

The Co-op’s initial milk pool will be based in the Waikato around its Hautapu site and will support the production of ingredients. It is anticipated around 100 farms will be needed for next season.

Jayne Hrdlicka, The a2 Milk Company Managing Director and CEO, says “The a2 Milk Company is pleased to be making progress on our relationship with Fonterra. These farms will help support new growth areas for our company across existing and new markets. This is the next step in what we believe will be a fruitful long-term relationship with tremendous potential.”

The location of the milk pool was determined by several factors. Most importantly, the site needed the ability to manufacture the specific product in demand, produce relatively small batches and adapt easily to any product demand changes.

“While other regions were thoroughly considered, ultimately the decision must be demand-led. The ability to efficiently manufacture a range of products to meet that demand was the over-riding factor in choosing a site.As demand and product lines grow, we’ll look to expand the milk pool to enable more farmers to participate,” said Mr Cronin.

Most of the value from the relationship with The a2 Milk Company will be returned to all Co-op farmers through the dividend. Participating farms will also receive a premium for their milk.

Today’s development follows the national launch of the a2 Milk™ brand by Anchor from late September 2018.

A2 milk mostly lacks a form of β-casein proteins called A1 and instead has mostly the A2 form.

There is debate about A2’s health benefits but it attracts a premium price.

Fonterra missed the opportunity to lead with A2 milk and the a2 company has prospered.

Most herds have some cows which produce A2 milk and if Fonterra wanted to corner the market it could require its suppliers to use A2 semen for artificial insemination and in a few years all cows would be producing A2 milk.

That it’s seeking suppliers to supply a2 suggests it won’t be taking that approach.

 


Rural round-up

February 20, 2019

Fonterra wants many DIRA changes – Hugh Stringleman:

Fonterra wants to ditch the requirement for it to take all milk if its market share drops below 75% in a region.

It also wants to exclude big processors except Goodman Fielder from accessing its milk at the regulated raw milk price.

Instead it wants to introduce a 12c/kg handling fee, it says in its submission to the Primary Industries Ministry’s review of the Dairy Industry Restructuring Act.

All other processors should be required to publish their average milk price paid to farmers and details of how they set it, Fonterra said.

DIRA should evolve to cover the whole dairy industry and not just control Fonterra. . . 

Otago young farmers lay claim to two titles – Sally Rae:

Otago can lay claim to three new national champions – all in the rural sector. Luke Kane (30) and Isaac Johnston (25), from West Otago, won the national fencing competition held recently as part of the New Zealand Young Farmers conference.

Elizabeth Graham (21), who lives on her parents’ farm at Hindon, won the national stock-judging title. . .

Duck eggs hatch into growing business – Luke Chivers:

Taranaki duck farmers Dawn and Glen Bendall are earning a living out of making people, including themselves, healthier. Luke Chivers reports. 

It is 7.30am in deepest, darkest winter.

As daylight breaks on mountainous, coastal Taranaki Urenui duck farmer Dawn Bendall is preparing her children for school before fossicking around in wood shavings up to 25 centimetres deep to retrieve 400 eggs.

“The ducks will dig up, they’ll lay and then they will cover the egg up again.

“It’s their little way of not letting the vermin get to the egg so I don’t know what they think of me,” she says, laughing. . . 

Riparian planting cleans Waikato dairy farm river – Hunter Calder:

From above it looks like any other river.

But up close, the Marokopa River through Ruawai Farm in Te Anga is exceptionally clear.

Data collected by Waikato Regional Council shows the water quality is some of the best in the region.

The river rates particularly highly for macroinvertebrates – tiny creatures without backbones such as insects and worms. The more of those, the healthier the water. . . 

Bounce in deer numbers :

Farmed deer numbers, including the number of breeding hinds and fawns, increased in 2018 according to provisional agriculture census figures released by Statistics New Zealand.

This follows a small recovery in stag numbers in the 2017 census.

Deer Industry NZ (DINZ) chief executive Dan Coup says the trend is a strong indication of growing farmer confidence in the viability of deer in a drystock farming operation. . . 

Wrightson cleared to sell seeds business – Gavin Evans

(BusinessDesk) – PGG Wrightson has been cleared to sell its seeds business to Denmark’s DLF Seeds.

The Commerce Commission said the $434 million transaction, announced in August, was unlikely to substantially reduce competition in any of the markets it assessed.

DLF is not at present a close competitor of PGG Wrightson Seeds in respect of ryegrass seeds containing endophytes and is unlikely to be so in the future,” deputy chair Sue Begg said. . .

Trade deals with Africa would help continent grow – Marian L. Tupy :

In December 2018, Donald Trump approved a new strategy for Africa that includes increasing US commercial ties with the continent. According to the Wall Street Journal, Trump’s strategy “is part of a broader effort…to fight for global supremacy with Russia and China”. Geopolitical considerations aside, freer trade between the United States and Africa makes good economic sense that’s bound to become more obvious over time.

Today, the economy of sub-Saharan Africa (SSA) is small, accounting for some 2 per cent of global Gross Domestic Product (GDP). Between 1960 and 2017, SSA GDP grew from $252 billion to $1.75 trillion. The world economy grew from $11.3 trillion to $80 trillion (all figures are in 2010 US dollars). That amounts to an average annual compounded growth rate of about 3.4 per cent and 3.43 per cent respectively.

The United Nations estimates that over the next 50 years, the SSA and world populations will grow at average compounded annual rates of 2.05 per cent and 0.63 per cent respectively. SSA’s population will thus increase from 1.1 billion to 3.1 billion and the world’s population will increase from 7.7 billion to 10.6 billion. That means that SSA will account for roughly 30 per cent of the world’s population in 2070. . . 

Trace elements a solution close to home :

Despite New Zealand’s relatively benign climate lending itself so well to pastoral farming, its soils can hide some chronic mineral deficiencies that can undo the efforts of the best farm managers as they try to get the most out of their stock.

Richard Sides, Boehringer Ingelheim Animal Health NZ technical veterinarian is urging farmers to look harder at what may be holding their stock’s performance back, and says the answer may be easier to find than they first thought. . . 


Rural round-up

February 19, 2019

Tasman facing serious drought – Tracey Neal:

First there were floods, then fire and now drought.

The Waimea Plains, cradled between two mountain ranges, are usually immune to such extremes in the weather.

But a Tasman District Council water scientist says the wider area is facing its worst drought since 2001. . .

Explainer: Why NZ can’t afford to mess with China – Aimee Shaw:

China and New Zealand have enjoyed decades of mutual benefits.

The global powerhouse and New Zealand signed a Free Trade Agreement in 2008 and since then have phased in provisions to ease trade between the two countries.

China is now New Zealand’s largest trading partner, followed by Australia. Suffice to say it’s a relationship New Zealand can’t afford to lose.

Fallout from the Government taking the United States stance on the Huawei debate and now reports of people not wanting to come to New Zealand as a result are threatening the country’s long-standing friendly relationship. . . 

Year of the Pig means feast of exports for Fonterra :

Celebrations have been underway around the world to celebrate the festive Chinese New Year season — welcoming the Year of the Pig.

In China itself those celebrations are likely to have included family feasts including dairy produced in Waipa’s Fonterra plants.

Fonterra’s Te Awamutu site exported around $175 million in products to China for consumption in 2017/18. That’s about $12,500 per person in Te Awamutu. . . 

Optimistic report on ‘M bovis’ response – Sally Rae:

Improvements are already being made in many areas highlighted in the Mycoplasma bovis Technical Advisory Group’s report, response head Geoff Gwyn says.

Work is under way to develop a new surveillance approach for the beef industry and the focus is increasing on improving communication to affected farmers, the public and staff.

The report, released this month and following the group’s meeting in late November, provided independent validation the eradication programme was ”on track”, he said.

Mr Gwyn said the findings and recommendations were not surprising. Some of the recommendations were relatively simple to implement or were already in train, while others would need careful consideration before a decision was made. . . 

Open Country challenges validity of Fonterra 2018 milk price – Paul McBeth:

(BusinessDesk) – Open Country Dairy is seeking a judicial review of the way Fonterra Cooperative Group set its milk price in the 2018 season, despite the Commerce Commission giving the price-setting process a pass mark.

The commission noted the judicial review on its website, saying Open Country Dairy brought proceedings against certain conclusions in its 2018 report.

In that report, the regulator was satisfied that Fonterra’s calculation was largely in line with the efficiency and contestability elements required by law governing the dairy sector. . . 

Unusual beefalo meat in demand – Ken Muir:

A chance meeting with an engineer building a cowshed on a neighbouring farm next door to Nadia and Blair Wisely introduced them to bison and from there they’ve taken to producing beefalo – a bison beef cross – on their Isla Bank farm.

”We met Dennis Greenland by chance and he had purchased animals from a Marlborough breeder Bob Blake”, Mr Wisely said.

”He told us about the animals and that piqued our interest.”

The Wiselys purchased a bison bull, crossed it with a range of cows and Netherton Farm Beefalo was born. . . 

Wild horses go under the hammer in Hanmer

Twenty horses, all aged two or three years old, were mustered from the isolated Ada Valley and sold by auction at cattle yards in the St James Conservation Area, where there was once an 80,000-hectare cattle station.

The two-day biennial muster is a family tradition.

Hugh Dampier-Crossley, a sheep and beef farmer near Cheviot, has been mustering the horses since he was ten.

“The Stevensons owned the property. Jim Stevenson was my grandfather, they bought the place in 1927. He taught me how to break in horses and shoe horses so it’s become a bit of a passion,” he said. . . 

Plan to plant genetically engineered trees throughout US to save dying forests – John Gabattis:

Inserting genes to protect against foreign diseases and pests could bring species back from brink of extinction

Plans are under way to plant swathes of genetically engineered trees across the ailing forests of North America in a bid to save them from the ravages of disease and pests. 

Species such as the ash tree and whitebark pine have faced catastrophic declines of up to half their populations after creatures introduced from overseas tore through their defences. . .

 


Rural round-up

February 18, 2019

New foot and mouth threat to New Zealand – Annette Scott:

An emergency all-agriculture meeting to discuss tighter border controls is being considered after Australian authorities seized imported meat containing foot and mouth disease and African swine fever.

“There’s some pretty sinister things coming in (to Australia) and with New Zealand tourism following similar patterns this is a real wake up call for the industry and needs to be treated with the utmost seriousness by our own border agencies,” NZ Pork chairman Eric Roy said.

“The discovery of FMD in the latest samples of products found in Australia should be of particular concern for anyone in the livestock sector. . .

Houses, trees swallow up land – Neal Wallace:

The area of land devoted to agricultural production fell by almost a million hectares or 7% in the decade to 2012 and will fall further as new Government policies encourage forest planting.

According to the Ministry for the Environment report, Our Land – Land Use Statistics 2018, most of that decline was caused by tenure review of South Island pastoral leases, subdivision and lifestyle blocks.

But between 1996 and 2012 the main shift in land cover was from exotic grassland and shrubland to exotic forest followed by a 10% increase in New Zealand’s urban area, which reached 230,000ha.

Driven by the population growing from 3.7 million to 4.4m, urban areas in Auckland grew by 4200ha, Waikato 4000ha and Canterbury 3800ha. . .

Life story: Veteran Canterbury stockman John O’Carroll a community hero– Tom Kitchin:

 John O’Carroll​ worked on his farm until his early 90s, and even then he’d never say he had retired.

O’Carroll​ was not only one of the best known stockmen in North Canterbury, he was one of the last surviving World War II veterans in the district and put in years of community volunteer work.

He died on January 15, aged 98. . . 

Molesworth Station: What’s next for our biggest farm? – Pat Deavoll:

The view from the top of Ward Pass is sublime. To the north lie the rolling downs surrounding the Molesworth Station homestead, backed by the drama of the Inland Kaikoura Range. This culminates in the summit of 2885-metre Mount Tapuaenuku.

To the south, the Acheron River stretches into the distance hemmed by arid scree-capped peaks and golden tussock flats. The Acheron Road winds its way across the flats, and far away, the slow crawling dot of a 4WD moves up the gravel road, dwarfed by the landscape that surrounds it.

This landscape belongs to 180,000 hectare Molesworth Station, New Zealand’s largest farm, leased and farmed by Landcorp and managed by the Department of Conservation on behalf of the Crown. It belongs to all New Zealanders and its fate is up for grabs.  . .

Possum cull planned after cattle catch TB near Dunedin :

Possum control will be carried out near Dunedin next month, after two cattle herds in the Flagstaff area tested positive for Bovine tuberculosis.

Bovine TB can cause weight loss and death in cattle and deer herds.

Possums are the main way the disease is spread, and humans can be at risk if they drink raw milk from an infected cow. . .

No need to panic over Brexit – Alan Barber:

In spite of the fast approaching deadline of 29th March, when the UK is due to leave the EU, not to mention the latest shipment date able to meet that deadline, there may be no need to get too concerned. There is a huge amount of media-inspired speculation about the potentially dire consequences of Prime Minister May’s inability to achieve an improvement of the exit terms leading to a No Deal Brexit, but word from Britain suggests this is highly unlikely. After all, both the EU and the British Parliament have specifically ruled out leaving without a deal.

The most likely short term outcome will be an extension of current membership terms under Article 50 which would give time for legislation to be passed either in the improbable event May succeeds in obtaining a new deal acceptable to her own parliament or further negotiation is required to reach a final agreement. . . 


Boohoo boo-boo

February 17, 2019

Fashion retailer Boohoo has made a boo-boo:

Boohoo will no longer produce items made from wool.

The news comes after the animal rights group, People for the Ethical Treatment of Animals (PETA), launched an appeal calling on the online retailer to take a stand against the wool industry, which it claims is alarmingly abusive to sheep.

Now, the popular fashion company, whose brands include Boohoo, BoohooMan, Pretty Little Thing and Nasty Gal, has confirmed that as of autumn/winter 2019, it will “no longer knowingly source any wool products. . .

This is a UK company but how long before this virtue signaling, based on politics and emotion not science and animal welfare, spreads?

PETA pedals this nonsense and it’s difficult for the truth to counteract their lies.

No good shearer abuses sheep and no good farmers stand for shearers who abuse their stock.

Shearing isn’t cruel, rather the reverse is true.

Modern sheep have been bred to produce wool and if they’re not shorn their wool gets too long, causes overheating, hampers their movement, makes it more likely they’ll get cast and get fly-strike.

What’s more, wool is a much more environmentally-friendly option than synthetic alternatives which don’t degrade and pollute water by leaching microfibers when they’re washed.

It’s a natural, renewable product with fire-retardant properties. It doesn’t leach microfibres and it degrades easily when disposed of.

UPDATE:

The company has made a ewe-turn:

Boohoo has announced it will continue using wool in its products, despite earlier promising to enforce a ban by the autumn. The online fashion retailer had faced a backlash after unveiling plans to stop selling items containing wool – with one sheep farmer telling Sky News he was “absolutely disgusted” by the ban. . . 


%d bloggers like this: