Seize the day Dunedin

Dear Dunedin,

Congratulations.

You’ve won the Gigatown competition and will be the first in the country to get one gigabit per second internet connection.

Please seize the day and make the most of it.

Your success is vital for the success of the south and in the past few years you’ve been letting the rest of us down.

While North, Central and South Otago and Southland have been positive and doing their best to help themselves, too much of the news from Dunedin has been negative.

Being the first Gigatown in the country is your opportunity for to build on your strengths which include education, health, technology and the community spirit which helped you win the competition.

Companies like Animation Research and Natural History have shown the way without ultrafast broadband.

Now you’ve got the communications edge on the rest of the country they and others will be able to do so much more.

The university has always attracted young people from around the country and other parts of the world but the city has been able to keep too few of them after graduation.

You now have the opportunity to create jobs which will entice graduates to stay and strengthen the city’s economic and social fabric.

You’ve worked hard to win the competition but you can’t stop now.

The real prize will be what you do with the opportunities it will enable you to grab and build on.

Go for it for your own sake and that of the south.

 

Rural round-up

The most boring bankrupt economic argument–“we export raw logs when we could be adding value and making jobs” : Eye to the Long Run:

The rot set in in the late 1940s on this. Jim Anderton was maybe the first in the modern era to believe we wantonly refused to profit from the blindingly obvious money and jobs to be had from processing timber.

In recent times only Winston Peters has been bright enough to see what the entire business sector has apparently completely missed.

Now, joining him as a value add timber processing expert we have the lawyer from Herne Bay – Mr Cunliffe who has spotted the opportunity.

It is, you understand, not so profitable that any of them would give up their day job… it never is, is it? . . .

Future of red meat promotion under threat – Allan Barber:

Next year’s Commodity Levy Act referendum is one of the factors concentrating meat industry minds on the question of red meat promotional investment. B+LNZ is currently conducting a consultation round with individual meat companies to find out how this critically important, if contentious, topic should be agreed for the benefit of all industry participants.

B+LNZ Chief Executive Scott Champion told me it’s too early to make any predictions about the outcome, at least until after completion of the consultation round at the end of September. With the referendum about 12 months away, the process is geared to providing time to gather enough detail for promotional strategy development before taking this out to farmers to test it in advance of the vote. . . 

New Zealand’s Hake and Ling Join Top 8% of World’s Sustainable Fisheries:

Hake and ling from New Zealand are now among the top 8% of global sustainable fish species after being recognised by the Marine Stewardship Council (MSC).

Each of the three New Zealand hake trawl fisheries, five ling trawl fisheries and five ling long line fisheries have been certified as sustainable against the MSC standard – the ‘gold standard’ for sustainable seafood production.

Only 8% of the world’s wild-capture harvest is certified through the global MSC programme which sets high internationally-accepted standards for sustainable fishing and provides consumers with assurance that MSC certified seafood is sustainable, based on sound, independent science. . .

 

Rural New Zealand wants gigabit equality:

Federated Farmers and TUANZ believe it is essential the next Government delivers better connectivity to rural New Zealand, and is keen to work with them to make that happen.

“We are encouraged by the National Party’s further commitment of $150million, if they’re re-elected, and hope to see a similar commitment from our next Government announced this Saturday” says Anders Crofoot, Federated Farmers Telecommunications Spokesperson.

“Federated Farmers and TUANZ support a Gigabit Agenda for Rural New Zealand that doesn’t leave our productive sector behind. We need to talk about gigabit speeds, where farmers can eventually get their gigabytes as fast as the townies do. . . .

 The right people trained the right way -  Craig Littin:

Our recently released Manifesto talks about building a sustainable farm system giving us the collective means to go forward as a nation.  We can and we will be more than we are today, but to do that we need the right people trained the right way.

Firstly we need to look at what we are trying to achieve. We need to have the young people of New Zealand believing that farming is the attractive career option that it is. We also need to put our money where our mouth is in terms of investing in education, science, research and innovation.

There are some great stories out there of the highly skilled people in our industry who have worked through the agricultural industry to now run multimillion dollar businesses, on very attractive salaries. These opportunities are available to anyone with the enthusiasm, intellect and discipline required to make it in the dairy industry, but we need sound education systems to get the right people into the industry. To do this we need to align the requirements and standards to fulfil job roles with the qualifications offered within primary industry training/education institutes. . . .

Molkerei Ammerland Completes First Sweet Whey Powder Auction on Globaldairytrade:

Sweet whey powder has been sold for the first time on GlobalDairyTrade (GDT), the world’s leading online dairy auction platform, with Molkerei Ammerland selling the product they offered at their first trading event.

Molkerei Ammerland CEO Ralf Hinrichs said the company was pleased with the results from the first SWP online auction.

“Through GDT we have been able to extend our reach to a larger number of customers, and to transact with them much faster. We’re looking forward to using GDT to grow our export market,” he said. . .

Tasman Tanks Appoints Craig Hemmings as Dairy Effluent Sector Manager:

Leading New Zealand and Australian storage tank company Tasman Tanks, has appointed Craig Hemmings as dairy effluent sector manager.

Mr Hemmings brings to his position more than a decade of management experience with nationally and internationally recognised agricultural companies.

As dairy effluent sector manager for Tasman Tanks, Mr Hemmings will oversee the operational management of the company’s dairy effluent division in New Zealand.

“From small beginnings in 1996, Tasman Tanks has built its reputation on designing, manufacturing and installing fully engineered and certified tanks,” said Mr Hemmings. . .

 Central Otago Wine Industry no longer a “One Trick Pony”:

As we have come to expect, Central Otago wines dominated the medals for pinot noir at the 2014 New Zealand International Wine Show, taking out 10 of the 15 Gold Medals awarded. But what is more interesting about the results of this show is that Central Otago wines won medals in a total of 10 different wine categories – Methode Traditionelle, Riesling, Sauvignon Blanc, Pinot Gris, Gewürztraminer, Chardonnay, Dessert Wine, Rose, Pinot Noir, and Syrah.

Now in its tenth year, The New Zealand International Wine Show is firmly established as the largest wine competition held in New Zealand each year. The 2014 New Zealand International Wine Show was judged from 8th to 10th September in Auckland and attracted a total of 2130 entries. Trophies will be awarded at the Awards Dinner on 27 September. . .

Rural round-up

Forestry workers dodge poachers’ bullets – Sonita Chandar:

Forestry workers are dodging bullets from poachers, says a forest manager.

They are being fired at by people hunting wild pigs illegally released in the private forests.

”Our staff shouldn’t have to worry about going to work and being shot, but this is the reality,” said Phil De La Mare, Otago regional manager for forestry plantation company, Ernslaw One.

”These unpermitted hunters forget it is a workplace and go shooting any time, even when there are people out working.

”Their actions are putting our staff and contractors in a risky situation and for us.

”Providing a safe workplace environment has become a challenge.” . .

 Putting Rustling back into the history books – Rick Powdrell:

Contrary to talk, the meat and fibre industries are not broken as the fundamentals to take both sectors forward to much greater heights remain. Still, it requires an entire industry shared vision going forward and that’s of course easier said than done.

 This undoubtedly involves strong leadership accompanied by a strong grassroots involvement.  It hardly entails re-inventing the wheel, but rather more awareness of the areas we need to improve and a path developed to redeem theses issues.

 The red meat sector strategy has already identified significant issues, with the Beef + Lamb: Red Meat Profit Partnership focusing on topics behind the farm gate with the aim of lifting on farm performance.

 This collaboration of Beef + Lamb NZ, meat companies, banks and government foreshadows a united industry approach. . .

NZ exports to EU may face stricter pesticide standards – Yvonne O’Hara:

New Zealand’s fruit and vegetable export trade to Europe could be affected by as much as $600 million if a proposed European Union (EU) reduction of some pesticide residue levels on imported food goes ahead, Agcarm chief executive Graeme Peters says.

The European Commission (EC) had been looking at regulating common crop protection products that had endocrine-disrupting properties. The EC believed reducing endocrine-disrupting pesticides would benefit the environment; be good for the health of growers, workers, rural communities and consumers; and boost the economy.

It will release criteria to identify those properties in the next few weeks. . .

Commission releases final report on 2013/14 review of Fonterra’s base milk price calculation:

The Commerce Commission today released its final report on Fonterra’s base milk price calculation for the 2013/14 dairy season. The base milk price is the price Fonterra pays to farmers for raw milk.

The Commission is required to review Fonterra’s calculation of the base milk price each year as part of the Dairy Industry Restructuring Act’s milk price monitoring regime. The review assesses whether Fonterra’s calculation approach provides incentives for it to operate efficiently and provides for contestability in the market for purchasing farmers’ milk.

The most significant issue in this year’s review has been Fonterra’s decision to pay farmers an adjusted price for the 2013/14 season that is less than the milk price calculated under the company’s Milk Price Manual.

The Commission’s overall findings are that the way Fonterra is calculating and applying its proposed adjustment to the base milk price is not consistent with incentives for it to operate efficiently; however, the approach is consistent with contestability in the market under the Act. . .

Field day to give insight into rural work  – Yvonne O’Hara:

Rural Contractors New Zealand (RCNZ) is to hold its second field day on September 17 at Brian Hughes’ yard at Waimatua, near Invercargill, from 10am to 3pm.

RCNZ vice-president and contractor David Kean, of Centre Bush, said the field day, held in association with Work and Income, encouraged people to find out what it was like working in the agricultural contracting sector.

”People can drift in and drift out again throughout the day,” Mr Kean said.

Those attending the field day would have the opportunity to drive large tractors and operate an assortment of machinery under supervision. . .

Farmers’ need for speed – Chris Lewis:

We are ready when you are, and we have been ready for some time. The key investors and the next government need to know farmers and rural households are sick of the inferior connectivity they are receiving. We are in the need for speed and reliable connectivity; it is not only imperative for rural productivity, but for empowering rural households.

The agricultural industry generates 73 percent of New Zealand’s merchandise exports, so you would think that the powers and investors that be, would recognise a gaping hole when they see it. What is not ok is that whilst rural businesses and households are paying for the same services as our urban counterparts, we are not getting the same results.

Market research proves rural New Zealand is being neglected. We are armed with the latest devices, on average 9 connectable devices per business and 5 to 6 of those connected at one time, but have limited infrastructure to use them. Chorus recently went to the rural market through Colmar Brunton to find out exactly what we have been dealing with, and it should come as no surprise that they found we have the same level of needs as urban businesses and households. . .

In Burundi, Viola Nsengiyumva turns two acres into a profitable business - Food Tank:

Viola looks out over the two acres of land she and her husband, Deo, inherited from her father. The fields are thick with bushy, yellow-green vines. The beans are ready to be harvested.

Two and a half years ago, Viola’s fields were nearly bare. Even though she and Deo had land, they could not afford the seed and fertilizer needed to plant on all of it. Harvests were low, with just enough to feed the family. There was no surplus to sell for income.

“Before One Acre Fund, we would just manage to have enough to eat. We couldn’t sell anything we grew,” Viola says. “I would go to purchase fertilizer, but I would not be able to buy enough.” . . .

Do You Have the Correct Licence for the Coming Season?:

Rural Contractors New Zealand (RCNZ) is urging its members to ensure they have all the correct transport licences for the coming season.

RCNZ president Steve Levet says with the new season fast approaching it is timely for rural contractors and their staff to check to see they have the correct licence AND a ‘Wheels Endorsements’ if required.

“It is incumbent on rural contractors to ensure both they and their staff have all the correct licences when moving their tractors and machinery around the country,” he adds.

“There are no excuses for not having the correct licenses and/or wheels endorsement. If contractors are not sure they should find out – all the necessary information is under the members section of our website: www.ruralcontractors.org.nz .”

Mr Levet says the different types of licences rural contractors may require include: . . .

Matters that matter

This week National made several announcements on matters that matter:

None of these would be possible or sustainable without National’s sound and careful economic management.

Rural round-up

Farming app in running for award – Phillipa Webb:

A Manawatu-developed smartphone app could see dairy farmers spending more time on smartphones and less time in paddocks.

The Grass2Milk app developed by the OneFarm Centre of Excellence in Farm Business Management – a joint venture by Massey and Lincoln universities – was shortlisted in the environmental category of the 2014 World Summit Award mobile competition.

Massey University agri-business student Hamish Hammond helped to test the app, which allowed farmers to see whether herds were fed enough to reach daily milk and body condition targets to plan feed allocations for the day.

“Most farmers would be really intuitive when it comes to feeding, but they could use [the app] as a gauge.” . . .

China deal factor in Fonterra’s lower credit rating – Sally Rae:

Fonterra’s credit rating has taken a hit following the announcement of its proposed partnership with a Chinese infant food manufacturer.

Credit rating agency Standard and Poor’s has lowered the dairy co-operative’s long-term rating from A+ to A and affirmed its short-term rating of A-1.

Last week, Fonterra said it was forming a global partnership with Beingmate to help meet China’s growing demand for infant formula.

Fonterra’s proposed sizable shareholding in a commercial company operating in China indicated a financial risk appetite that was ”more aggressive” than Standard and Poor’s had factored into the previous rating, credit analyst Brenda Wardlaw said in a statement. . . .

Teasing out the beta-casein evidence – Keith Woodford:

In last week’s column I advocated that the mainstream dairy industry should convert New Zealand herds away from the production of A1 beta-casein. To not do so creates unnecessary long term risk to the industry. However, the mainstream industry remains locked into a defensive position.

In this article I will therefore briefly review some of the major strands of health evidence. I cannot cover it all – it took me a whole book to do so back in 2007. Since then, there has been a lot more evidence forthcoming.

In assessing the evidence, it is helpful to recognise that A1 beta-casein is the consequence of a historical mutation. Goats, sheep camels, buffalo, Asian cattle and humans produce beta-casein that is totally of the A2 type. It is only cows of European ancestry which produce A1 beta-casein. . .

Allied Farmers back in black as livestock unit grows – Paul McBeth:

(BusinessDesk) – Allied Farmers, which is rebuilding from a disastrous takeover of the Hanover and United Finance loan books, returned to profit as its core livestock unit lifted income with gains in Taranaki and Waikato.

The Hawera-based company reported a profit of $1.03 million, or 1.03 cents per share, in the 12 months ended June 30, turning around a loss of $1.12 million, or 2.94 cents, a year earlier, it said in a statement. Revenue in the slimmed down entity shrank 38 percent to $16.9 million.

“The focus for the coming year will be to continue to grow the livestock business and to leverage off the client relationships and trust that exists with those clients to provide value for money services,” chairman Garry Bluett said. “The effect of the reduced dairy payout is likely to have some uncertain impact on dairy livestock sales going forward and the continuing high dollar is already having some impact on meat exports at the early stage of this season.” . . .

 New Zealand firm creates health focused flavoured milk; export potential:

Christchurch-based New Zealand Dairy Brands believes it is a world leader in its sector in the production of health products with the launch of its highly innovative Go Milk flavoured milks.

The range has no added sugar, a low GI (glycaemic loading) and is low fat, making it suitable for diabetics and excellent in the fight against obesity. The product was a recent finalist in the NZIFST awards in the product innovation category.

Just released on New World and Pak n Save supermarket shelves in New Zealand, a trial export shipment of Go Milk has already been sent to China and the product is destined for the Australian market also. . . .

 Compass points new crop direction – Gregor Heard:

RESEARCHERS are excited about the prospects of a new barley variety set to be commercialised next year.

Speaking at a trial walk at last week’s Grains Research and Development Corporation (GRDC) grower update in Horsham, Birchip Cropping Group research agronomist Simon Craig said the Compass variety, developed by the University of Adelaide research team and commercialised by Seednet, showed outstanding promise.

“It looks to have a very good fit right across a range of low to medium rainfall zones.” . . .

Rural round-up

Synlait Milk receives MPI approval:

Synlait Milk has received approval of its Risk Management Programme from the Ministry for Primary Industries (MPI) for its dry blending and consumer packaging plant.

The approval enables Synlait Milk to now pack and export retail-ready product from its manufacturing site, having met the New Zealand food safety requirements of the Animal Products Act 1999.

The only exception is for exports of finished infant formula to China. Documentation required to support Synlait Milk’s application for registration as an exporter of finished infant formula to China was sent to the Chinese regulatory body today by MPI. . . .

Beef + Lamb NZ expenditure on overseas promotion under review - Allan Barber:

Next year sheep and beef farmers will have their five yearly referendum under the Commodity Levies Act when they get to vote on whether they wish to continue funding Beef + Lamb New Zealand as their industry good body.

It was a fairly close run thing last time and actually resulted in the motion to continue with wool promotion being defeated, although this is now back on the agenda. However there is obviously some nervousness about the likely outcome of the next referendum, although this may be unfounded if farmer returns continue to be positive

One element of B+LNZ’s activity which tends to provoke debate among farmers is the use of funds for overseas promotion. Within the last 20 years, and especially more recently, there has been an agreement within the meat industry that promotion should be jointly funded by MIA members and B+LNZ. . .

Westland farmers braced for hard season:

Farmer-shareholders of the dairy cooperative, Westland Milk Products, will be watching spending very closely as the country’s number two dairy cooperative has cut 60 cents per kilogram of Milksolids (kg/MS) to a range of $5.40 – $5.80 kg/MS before retentions.

“Given Fonterra’s hold on its benchmark payout forecast, this isn’t exactly the best news to go into spring with,” says Renee Rooney, Federated Farmers West Coast Dairy Chairperson.

“The fact the world produced seven billion litres of milk for export in the first half of 2014 isn’t a secret and hasn’t happened overnight, so this further revision is disappointing. . . .

TNZ and NZ Winegrowers sign MOU:

Tourism New Zealand and New Zealand Winegrowers have today announced a Memorandum of Understanding (MOU) to jointly promote New Zealand as a visitor destination and premium wine producer internationally.

The two-year MOU will see the organisations formalise their activity to enhance both brands, ultimately driving more visitors to New Zealand and increasing the sales of New Zealand wine in key markets.

The MOU was jointly signed by Tourism New Zealand Chief Executive Kevin Bowler and Phillip Gregan Chief Executive Officer for New Zealand Winegrowers, at the wine organisation’s annual conference in Blenheim.

Tourism New Zealand Chief Executive Kevin Bowler says that the MOU will see both parties work together to leverage and enhance each other’s international profiles. . .

 

Possum-fur yarn makes double debut at NZ Fashion Week

Wellington yarn maker, Woolyarns New Zealand were rapt to find out this week two designers, Zambesi and Maree MacLean, are featuring their luxury possum fur product, Perino in collections for New Zealand Fashion Week 2014.

Up until now the luxury yarn has been used exclusively in the tourist market. Woolyarns NZ Marketing manager Jimad Khan says the move into high fashion is an exciting development for the company.

Both Zambesi and Maree MacLean are using the top-end yarn as features in their New Zealand Fashion Week collections.

“Zambesi is very keen to source local, sustainable product and on being approached by Woolyarns New Zealand got excited by the idea of possum yarn,” says Zambesi designer Dayne Johnston. . . .

Spark brings high speed mobile broadband to rural New Zealand:

Spark New Zealand announced today that it has begun its rollout of 4G services on the recently acquired 700MHz spectrum in the Waikato, enabling 12 sites with 4G in the region.

Following a successful trial earlier this year Spark, in conjunction with Huawei Technologies has now livened up sites with 4G in Te Aroha, central Hamilton, Morrinsville, Mystery Creek and other surrounding areas in the Waikato – allowing customers to access high speed mobile broadband over the 700 MHz spectrum.

Spark Networks Chief Operating Officer, David Havercroft, said: “Today marks the start of an accelerated rollout of 4G services to regional New Zealand. Over the next few months we’ll continue to widen our 4G footprint in the Waikato region, including the Coromandel, and will bring this technology to existing sites by February 2015. . .

Finally, a cloud based solution even the number crunchers can get excited about:

Xerocon Australia 2014 proved to be the perfect launch pad for iAgri, the agri-add on partner for Xero’s farm accountancy solution.

With more than 1,300 delegates cramming into the Dome in Sydney to hear the latest news from Xero and check out the latest add-ons and services from 82 exhibitors, the Canterbury based farm software company was one of the real winners.

iAgri CEO John Lay says there was a huge degree of interest in the product. “Farming is as important in Australia as it is in New Zealand so we fielded a lot of enquiry. Plainly, a lot of the accountants and bankers, many of whom had travelled from all over Australia specifically to view the iAgri add-on, have been waiting for a comprehensive solution like this to take to their clients and they were super excited – about as excited as an accountant can get anyway.”  . . .

 

Rural round-up

 Not celebrating yet - Andrea Fox:

Bay of Plenty farmer David Jensen’s commitment of nearly a third of his milk production this season to Fonterra’s June guaranteed milk price (GMP) of $7 a kilogram of milksolids (MS) looks set to boost his coffers by at least $80,000 but he’s not crowing.

He knows that would be foolhardy, given the roller-coaster ride of the milk price this year and the long stretch of the season ahead.

This is Jensen’s second round on Fonterra’s new fixed milk price programme. In last year’s pilot scheme his business posted a $45,000 opportunity cost after he committed milk at $7/kg MS in what is set to be a record $8-plus payout season. . .

Pipfruit sector’s future ‘very bright’ – Pam Jones:

Good returns are expected in the pipfruit industry this year following a record season last year, Pipfruit New Zealand chief executive officer Alan Pollard says.

Mr Pollard was one of the keynote speakers at the two-day Pipfruit New Zealand conference in Queenstown last week, and visited three Central Otago orchards and one winery with delegates during a field day after the conference.

The conference built on the Pipfruit New Zealand strategic plan, which was released at last year’s conference and outlined how to achieve a goal of developing the pipfruit industry into a $1 billion export industry by 2022, Mr Pollard said. . .

Innovative sheep farmers winners –

Southland and Otago did well in the third annual Beef and Lamb New Zealand Sheep Industry Awards in Napier last week.

AbacusBio managing director Neville Jopson, of Dunedin, received the Focus Genetics sheep industry science award in recognition of his work in the industry, while Mount Linton Station, in Southland, won the Alliance Group terminal sire award for lamb growth and meat yield and the SIL-ACE award for terminal sire for lamb growth.

Andy Ramsden, of Wanaka, was awarded the Allflex sheep industry innovation award for his input to increasing the productivity of New Zealand sheep during the past 20 years, and Riverton’s Blackdale Coopworth stud won the Telford dual purpose award for reproduction, lamb growth plus adult size and wool production. . .

Agricultural drones taking off on farms:

Robots are not only taking their place in milking sheds or on vineyards and orchards – aerial drones are increasingly being used to extend the reach and view of human farmers.

Unmanned aerial vehicles or aerial robots – known in the military world as drones – are increasingly being used for a range of activities on farms, including checking fences and water systems, and monitoring and even moving stock.

Linda Bulk of the Aeronavics company, said farmers were surprised at how easy they were to use.

“It’s so practical,” she said. “There’s that eye in the sky, what you see from above is so much more informative than when you’re on eye level to start with and it gets into those hard to reach areas that are often a hazard for quad bikes. . . .

Improved Returns See Rise in Cattle Numbers:

Dry conditions in the northern North Island and continued land use change in the South Island saw New Zealand’s sheep numbers decrease 3.2 per cent over the 2013-14 season, while beef cattle numbers increased 1.6 per cent.

Beef + Lamb New Zealand’s (B+LNZ) Economic Service carries out a stock number survey annually. Its latest survey shows sheep numbers dropped to 29.8 million in the year to 30 June 2014.

B+LNZ Economic Service Chief Economist Andrew Burtt says strong mutton prices, driven by rising demand from North Asia, encouraged a high level of cull ewe processing for the second year in a row.

Breeding ewe numbers, at 19.96 million, were slightly down (-1.4%) on the previous June. The largest contributor to the overall decline was the South Island, reflecting the continued land use trend towards dairy and dairy support activities.

 

Meadow Mushrooms Opens Second Stage Of $120 Million Redevelopment:

The second stage of a $120 million redevelopment and expansion project at one of New Zealand’s largest agricultural enterprises will be opened this week.

The $12 million investment into the extension of Meadow Mushrooms’ Christchurch farm will add a further 60 jobs and increase production by 37,000 kilograms of fresh white mushrooms a week.

This project follows the $45 million expansion undertaken by the company on site in 2011 and is the second of three stages to completely reconfigure the company’s infrastructure in New Zealand. A new office administration and headquarters construction project will commence before the end of the year and will be followed by an expansion of the compost facilities and growing shed conversions.

“This development demonstrates Meadow Mushrooms’ confidence in the future market and our commitment to the industry,” said John Barnes, CEO of Meadow Mushrooms. . . .