Rural round-up

September 2, 2015

Tap turned on at Hororata irrigation scheme – Annabelle Tukia:

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

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

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

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

Dairy and travel still our largest export earners:

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

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

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

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

App helps keep hives humming – Sally Rae:

Brice Horner gets a buzz about educating others about beekeeping.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Government grant for East Coast stream restoration:

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

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

Fonterra Farmers Can Now Apply for Co-Operative Support:

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

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

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

 


GDT up 10.9%

September 2, 2015

The GlobalDairyTrade trade weighted index increased by 10.9% in this morning’s auction.

This is a welcome second successive increase after a run of big falls.

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Rural round-up

September 1, 2015

‘Water is the next gold’ where expectations and dreams become reality – Kate Taylor:

After starting his working life in a family motor business, Jerry Greer took up farming with a young family and a determination to make a success of his new vocation.

“I had always had a yearning for the land, loved working with animals and loved being outside,” he says.

Jerry and wife Diana love the life they have created in the Argyll East farming district, between Tikokino and Waipawa, and being close to their four children and four grandchildren.

All have an interest in farming, Diana says. . . 

Working on cost of irrigation scheme – Lynda van Kempen

Good things take time, say the promoters of the Manuherikia irrigation scheme.

Feedback will be sought from landowners on revised figures by Christmas, after the estimated costs of the scheme upgrade almost trebled from initial estimates, forcing a rethink of the design and costs.

”It’s taking a bit longer than we’d have liked, but we’ll keep working at it until we’ve got a scheme that’s economic,” Manuherikia Catchment Water Strategy Group chairman Allan Kane said yesterday. . . 

Former Southland District mayor Frana Cardno’s final gift – Blake Foden:

Frana Cardno’s life was all about giving, and the former Southland District mayor has left her beloved province one final gift.

Three generations of Cardno’s family joined her close friends, members of the community and complete strangers to plant 329 trees on the shores of Lake Te Anau on Saturday afternoon.

A former kindergarten teacher who led the region for more than 20 years, Cardno organised her funeral during her battle with cancer. She asked that mourners dressed in colourful clothing and brought a donation of native trees and shrubs. . . 

Silver Fern Farms won’t rule out foreign investment:

The country’s largest meat co-operative, Silver Fern Farms, is not ruling out foreign investment as part of its capital raising process.

Silver Fern Farms is seeking about $100 million in new funding to help reduce debt and has appointed the stockbroking firm Goldman Sachs to help with that process.

New Zealand First leader Winston Peters said he had been made aware Chinese investors want at least a $100 million stake in the company. . .

DairyNZ board candidates put forward

Ten candidates have put their names forward for the three positions up for grabs on the DairyNZ board.

Four farmer candidates have also put their name forward for the three seats on DairyNZ’s directors’ remuneration committee.

Results from the double election would be announced at the DairyNZ Annual General Meeting in Morrinsville on October 13. . .

 


Rural round-up

August 31, 2015

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

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

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

Win over dumping celebrated – Patrick O’Sullivan:

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

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

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

Dumping is illegal under World Trade Organisation agreements. . .

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

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

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

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

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

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

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

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

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

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


Rural round-up

August 30, 2015

Just one today. I found it on Facebook and in case someone whose grammar is better than that of its author notices, whoever is behind it doesn’t know the difference between you’re and your.
NZ Farming's photo.


Rural round-up

August 29, 2015

Leave Fonterra to sort itself (or not) – Stephen Franks:

The amalgamation/monolith structure of Fonterra was a mistake. But it is what we have and pulling it to bits now could compound the mistake.

The Fonterra monopoly came from a conjunction of  dairy politics with the instincts of a leftist Clarke Cabinet, at a time when they needed to rebuild trust with business. The Fonterra ‘capture the value chain’ slogans appealed to a Cabinet nurtured on coop=good/big battalions/commanding heights socialism. So they legislatively outflanked the Commerce Commission, relegated official reservations, and created the monolith.

The Herald has an excellent review of the reasoning and the outcomes by Tony Baldwin, an official at key times. But his recommendations could be used to support those who’d like now to pull levers the other way, and impose new structures, equally well meant, equally sloganistic,  and equally without knowing the future any more reliably. . . 

Why hasn’t Fonterra worked? – Tony Baldwin:

Created in 2001, Fonterra was heralded as a ‘breakthrough idea’ meant to help New Zealand ‘catch the knowledge wave’. 14 years on, there’s been no economic transformation, writes Tony Baldwin.

“Potentially better than an oil well,” boasted Fonterra’s founding chairman, John Roadley, in 2002.

“White gold” is another favourite label.

Over many decades, New Zealand has invested massively in raw milk as a pathway to economic prosperity. It’s why Fonterra was formed. . . .

Landcorp strategy of dairy investment over dividends at odds with government’s surplus goal – Tina Morrison:

(BusinessDesk) – Landcorp Farming, which is taking on debt to convert former forestry land into dairy farms, won’t pay a dividend this year, highlighting the friction between the state-owned farmer’s long-term strategy and the government’s demand for regular payments in preference to investment.

New Zealand’s largest corporate farmer posted an 84 percent decline in annual profit to $4.9 million, in line with its forecast of $1 million to $6 million, as revenue fell 12 percent to $213.5 million on weak milk and lamb prices.

Debt rose 25 percent to $222 million, mostly to fund dairy conversions on the 26,000 hectare Wairakei Estate north of Taupo, slated to become the biggest milk producer in the southern hemisphere. Landcorp is 12 years into a 40-year lease to operate and develop the estate. . .

Northland Ballance Farm Environment Awards Recognise ‘Labour Of Love’:

Entering the 2015 Ballance Farm Environment Awards (BFEA) proved a thoroughly enjoyable experience for Northland farmers Ian and Sandy Page.

The Pages own Tahere Farm near Whangarei in the Pataua North district. Previously a run-down unit, the couple has spent many years developing the 162ha farm into a model of sustainability. With the whole title area under QEII National Trust covenant, BFEA judges said Tahere was like a privately owned regional park, farmed in the public interest.

“By entering an open space covenant, Ian and Sandy have invited the world to share their dreams.”

Tahere has about 62ha of indigenous forest. Another 59ha runs sheep and beef and the balance is in production forestry. . . 

Diabetes nutraceutical wins 2015 Proof of Concept grant:

A team developing a nutraceutical that could help regulate blood glucose levels thereby support the treatment of type II diabetes has won the University’s 2015 Proof of Concept grant.

The $50,000 grant, offered by the University’s commercialisation arm, Otago Innovation, is aimed at transforming novel research at Otago into a marketable idea, product or service.

Dr Phil Heyward and Dr Alex Tups of the Department of Physiology are working on the nutraceutical, which involves a plant product. They are collaborating with Associate Professor Nigel Perry of Plant and Food Research and Pat Silcock, the Manager of Food Science’s Product Development Research Centre, who each bring essential expertise to the project. . .

Wine awards recognise top drops from the Bay:

Some of the country’s best viticulturists and vineyards have been recognised for their grape growing skills.

The Bragato wine awards were announced in Hawke’s Bay last night as part of the New Zealand Winegrowers Romeo Bragato conference.

A Villa Maria chardonnay, with grapes grown by Brett Donaldson, won the Bragato Trophy.

And a Villa Maria cabernet sauvignon merlot, made from grapes grown by Phil Holden in Hawke’s Bay, won the champion domaine wine.

Chair of the judges, Ben Glover, said the competition recognises the grape growing behind a top drop. . . 

Inaugural New Zealand Young Winemaker crowned:

A night of nerves, skill and finesse surrounded the all-female finalists of the inaugural Tonnellerie de Mercurey 2015 New Zealand Young Winemaker competition last night.

Hawke’s Bay Winemaker, Lauren Swift took the inaugural title after she battled it out following three days of winemaking challenges at the Romeo Bragato conference.

Lauren says, “It was an extremely tough competition, I’m really thrilled with the result. It’s been such a great opportunity for me, and has already opened a number of doors and given me so much confidence. . . .


Rural round-up

August 27, 2015

Farmers not off the hook on health and safety:

It’s a complete fallacy that the farming community doesn’t have to worry about health and safety as a result of proposed changes to the Health and Safety Reform Bill, according to an expert in the field.

Crowe Horwath agri health and safety expert Melissa Vining says the recent hype around proposed changes have monopolised the headlines in recent days with many accusing the government of letting farmers off the hook.

However she is quick to dispel the myth that farmers have been given a mandate to ignore health and safety. . . 

Landcorp posts 2014/15 annual results:

Landcorp has recorded a net operating profit of $4.9 million on revenue of $224.3 million for the year ended 30 June 2015.

The $4.9 million net operating profit is down from the $30 million result the previous year. The sharp decline in the price of milk solids, combined with lower lamb prices, saw income from farm products drop 11.7 per cent on the previous year, to $213.5 million.

Landcorp chief executive Steven Carden said record-low dairy prices and tough growing conditions had driven overall financial performance down. However, a constructive response to challenging conditions had helped buffer Landcorp from major impact. . .

New Zealand in unique position for ‘water development’:

New Zealand has many advantages over the rest of the world when it comes to ‘water development’ but we need to get better at leveraging water use – for our future well-being and to protect us from the effects of climate change, says IrrigationNZ CEO Andrew Curtis.

This week is World Water Week 2015 with a theme of ‘Water for Development’. More than 3000 people, including world leaders, water experts and international aid organisations, have gathered in Stockholm, Sweden to debate solutions for water crisis around the globe at an annual symposium run by the Stockholm International Water Institute (SIWI) (www.worldwaterweek.org.nz).

Mr Curtis says New Zealanders are blissfully unaware of the relative advantage New Zealand has with plentiful rivers, lakes and groundwater supply across the country. . . 

Huge potential in Chathams – farmer:

The Chatham Islands has a huge, untapped potential for farming but a better understanding of soils is needed, one of the islands’ farmers says.

The islands are part of New Zealand and lie 750km east of the South Island.

Federated Farmers Chatham Islands chair Tony Anderson said there were 15 large farming operations there but many farmers worked a second job in the fishing industry. . . 

‘Power Play’ Innovation in Dairy Awards:

Entrants in the 2016 Dairy Manager of the Year contest will play to their strengths with a ‘power play’ initiative among the new judging criteria.

The change is one of many to the 2016 New Zealand Dairy Industry Awards programme, aimed at enabling more people to enter the awards competitions and at ensuring people with similar age, skills, maturity and investment in the industry compete against each other.

National convenor Chris Keeping says other changes include new competition names, entry and judging criteria – like the power play. . . 

OMG Dairy NZ Confessions Stories Advice's photo.


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