Consumers pay cost of tariffs

March 13, 2018

USA President’s decision to impose tariffs on some imported goods could start trade wars.

That appears to be something of which Foreign Minister Winston Peters approves:

What’s Donald Trump’s biggest complaint? It’s that countries shouting out ‘free trade for America’ don’t practise free trade themselves. In fact it’s New Zealand First’s and my complaint that the countries we deal with apply tariffs against us whilst we’re giving them total and unfettered access to our country. It’s simply not fair.

It might not be fair but imposing tariffs on goods from other countries in retaliation is simply stupid.

It might protect inefficient local industries but local consumers will pay for that in higher prices and less choice.



Rural round-up

February 20, 2018

Niche markets open up for farmers with good animal welfare and environmental records – Pat Deavoll:

Merino farmers front-footing environmental and animal welfare standards are finding better paying niche markets opening up for them.

A property in the Ashburton Lakes area has secured a contract to sell wool direct to a major American retailer, said Rakaia Gorge runholder Willy Ensor.

“I can’t name the property yet, but one of the reasons they pulled it all together was because they had a very traceable animal welfare system and an audited farm environment plan. . .

Milton woolhandler claims Southern Shears title :

Milton woolhandler Cheri Peterson has become the latest addition to the ranks of Open-class winners by claiming the Southern Shears title in Gore.

Uniquely, all three in Friday’s final were gunning for their first Open win in New Zealand, with the South Otago rookie winning by just over 15pts from runner-up South Island-based Foonie Waihape, from Gisborne, and third placegetter Candy Hiri, of Gore, who were separated by just 0.53pts.

While Waihape had the quicker time and both Waihape and Hiri had better board points, Peterson had the better fleece and oddments points, to make extended a unique record at Gore.. . 

Nutritional formula plant will put Gore on the map – Sally Rae:

From bare farmland to a bustling construction site, the rural landscape of McNab, near Gore, has transformed remarkably over the past 18 months.

The population has been temporarily boosted through the day by about 350 people on-site during the construction phase of Mataura Valley Milk’s new nutritional formula plant.

Work began on the site in August 2016, and the $240 million project is on track for commissioning in May.

Once operational, it will be staffed by 65 full-time employees and process about 500,000 litres of whole milk a day to produce 30,000 tonnes of infant formula a year at full capacity. . .

State-of-the-art $30m fertiliser plant unveiled :

The Ravensdown co-operative has unveiled its new $30 million state-of-the-art fertiliser blending plant and distribution centre in New Plymouth today.

The company’s regional manager, Mike Davey, said a feature of the facility is a $5 million precision blending plant imported from the United States.

“So you’re blending the right amount of product, the right amount of nutrients, the fertilizer’s then spread accurately in the exact amount that’s required for that particular job.” . .

Second sweep of the Great DDT Muster gathers pace:

A nationwide initiative to rid New Zealand of banned pesticides like DDT is gaining momentum as farmers turn over tonnes of the dangerous chemicals for safe disposal.

The programme, called The Great DDT Muster, has so far collected some 17 tonnes of banned persistent organic pollutants (POPs) and other chemicals from properties in Northland to Invercargill. . .

Defiant cow flattens farmer and swims to remote island to escape abbatoir :

A resilient cow destined for a trip to a slaughterhouse has taken control of her own fate, smashing through a metal fence, flattening a farmer and swimming to a nearby island.

Workers attempted to load the stubborn bovine onto a truck bound for an abattoir in Poland last month but it quickly became pretty clear she wasn’t having a bar of it.

The beast instead rammed the fence in the escape, breaking one of the farmworker’s arms in the process. . .

Rural round-up

February 19, 2018

Syrian lamb commands higher prices than ours; alternative proteins are next threat – Sam McIvor:

If you think our meat is premium, export boss Sam McIvor has a wake-up call. Fake meats and other lab-grown alternatives are threatening our farms. 

 The Stuff series “Meat under heat” has led to a robust debate among farmers. I speak with farmers every day and they tell me that while they understand the scale of challenges outlined in the series, they are excited about the future and the opportunities which lie ahead. Farmers certainly do not have their heads in the sand.

They can see for themselves the rise of alternative proteins and I know a number, like me, who have tried an Impossible Burger and other similar products.  I consider myself a bit of a meat connoisseur and cooked well, the Beyond Burger was a realistic substitute.

That’s why we’ve invested in a large research project to better understand the implications of alternative proteins. Early conclusions indicate that alternative proteins are likely to become major competition. It also showed, however, that the same forces driving investment and demand for alternative proteins, including concerns about industrial (feedlot) farming; health concerns arising from the use of hormones and antibiotics; environmental and animal welfare concerns, offer an opportunity to differentiate New Zealand red meat internationally.  . . 

 – Allan Barber:

The global market for New Zealand’s meat exports and exporters is undergoing quite a rapid change, judging by movements in the industry’s latest quota entitlements and market destinations. The differences between exporters and markets over a ten and five year period provide an interesting snapshot of the relative position of the meat companies and the impact of changing market dynamics.

A comparison of quota entitlements over 10 years illustrates some sizeable changes in market share, but also considerable industry rationalisation. A number of smaller exporters have either disappeared or been absorbed by a larger company, but for the most part the same companies still dominate the industry, but with some noticeable changes in share. . . 

My tips for 2018 – Allan Barber:

It’s the time of year for making predictions, some of which may turn out to be close to the mark, but most, like horse racing tips or economists’ forecasts, will end up looking slightly silly, if anybody takes the trouble to remember what they were. The luxury of writing a column is the ability to speculate without being held to account for any inaccuracies.

Before I make any predictions for the year ahead, it’s worth taking a moment to highlight some of the main features of the year that has just finished. Two events of major significance actually had their roots in 2016 – the US election and the BREXIT referendum – but nobody is much the wiser about how they will play out from a trade perspective. As is often the case, what appears to be a seismic event takes longer than expected to have any noticeable impact. . . 

PSA heroes rewarded – Richard Rennie:

Ground-breaking research that helped take the kiwifruit industry from zero to hero in the space of a few years in Psa’s wake has earned Plant and Food Research scientists the country’s richest science award.

The Crown research institute’s multi-disciplinary team collected $500,000 of prize money in the 2017 Prime Minister’s Science Prize for the intensive work they did after the Psa disease incursion in November 2010 as they battled to identify the strain of the disease, develop a test for it and determine replacement cultivar tolerance to the disease.

The disease ultimately laid to waste the original gold kiwifruit variety Hort16a, the up and coming hope for the industry’s future growth.  . . 

Rare sheep music to couple’s ears – Yvonne O’Hara:

Country music singers Ron and Kathleen Gallagher have a small flock of some of the rarest sheep in the country.

There are thought to be about 100 Stewart Island sheep left in New Zealand and the Owaka couple have about 30 on their 8ha lifestyle block.

The Stewart Island sheep are a coloured, feral version of the merino, and are descended from those released by sealers and whalers on to Stewart Island in the 1800s and those which escaped from sheep farming operations.

They look similar to Arapawa sheep and Pitt Island sheep, with black and brown-toned fleeces. . . 

Mycoplasma bovis eradication still on the table as milk testing results flow in:

Initial results from the first round of milk testing from all producing dairy farms for Mycoplasma bovis indicate eradication of the disease remains a viable option as work to contain it ramps up, says Agriculture and Biosecurity Minister Damien O’Connor.

The first round of the joint industry MPI surveillance programme is near completion with no positive detections.

Tests have been completed on the tanker milk from 9100 dairy farms without a positive detection. The remaining tests will be completed early next week. . . 

DIRA Bill a good move for dairy industry:

Federated Farmers is pleased to see that the Dairy Industry Restructuring Amendment Bill (DIRA) has finally made it through Parliament.

“I think most of the industry will agree this is long overdue and should have happened at least six months ago,” says Chris Lewis, Federated Farmers’ Dairy Industry Chair.

The Federation was looking forward to working with the Ministry for Primary Industries (MPI) and the dairy sector on a comprehensive review. . . 

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Accept no substitutes. 8 0z of real milk contains 8g of protein. 

8 oz of almond beverage contains only 1g of protein.

Cavalier boosts first-half profit on benefits from restructuring – Rebecca Howard

Feb. 15 (BusinessDesk) – Carpet maker Cavalier Corp reported an improved first-half net profit on better margins, after restructuring the business to reduce costs and introduce a more efficient manufacturing system.

Net profit rose to $1 million, or 1.5 cents per share, in the six months ended Dec. 31, from $31,000 in the prior period. Revenue fell to $75.3 million from $84.3 million, reflecting reduced carpet sales in the first half due to market conditions as well as the materially lower wood prices which impacted the revenue of its wool buying business Elco Direct. . .

Rural round-up

February 18, 2018

Are you bogged mate? – Mary O’Brien Rural:

I spend a lot of time raising awareness about spray drift but recent events have compelled me to talk about something that disturbs me even more than spray drift.

I have spent my whole life working in rural and remote Australia and always around country blokes; working with them, for them, and beside them. My father was one, my brother is one, and most of my dearest friends are country blokes. I have always worked in male dominated occupations and that certainly doesn’t make me special but I believe it has given me a good understanding of rural men and it has definitely given me a deep and profound respect for them.

So when I see country blokes facing challenges like never before, I need to say something because I know none of them will. I’m talking about rural men’s mental health and more specifically, rural male suicide. Yes, that mongrel black dog that sneaks in when you least expect it, grabs all of your rational thoughts, buries them somewhere you can’t find them, and without you or those close to you noticing, it gradually pulls you into a hole, a bog hole. . . 

Taupo Beef and Lamb starts exporting its meat range to Japanese supermarkets – Gerald Piddock:

Taupo Beef and Lamb has begun exporting its meat range to Japan.

The company, established by farmers Mike and Sharon Barton, sent the first container load of product in December which went on sale at five high end supermarkets east of Tokyo in mid-January.

The response from shoppers so far had been great, said Mike Barton at a field day at Onetai Station.. . 

NZ Ireland collaboration confirmed – Nicole Sharp:

Similarities between Ireland and New Zealand are leading to collaborations on research and development in the dairy industry.

Southland dairy farmers Tim Driscoll and Tony Miles travelled to Ireland recently with DairyNZ research and development general manager David McCall and AgResearch scientist Jane Chrystal.

The aim of the visit, which had funding from the two organisations and the Ministry for Primary Industries, was to cement the collaboration between the two countries.

Mr Driscoll said both countries were similar in climate which made them ideal for comparisons in research and development.

Mr Driscoll and Mr Miles, both trustees of the Southern Dairy Development Trust, wanted to make sure the Southern Dairy Hub was a part of the ongoing collaboration. . . 

Climate work ramping up:

With climate change champions, partnership farms and greenhouse gas roadshows in the pipeline, the Dairy Action for Climate Change is accelerating its work in 2018. Here are some details from DairyNZ senior policy advisor Kara Lok and developer Nick Tait.

The aim of the Dairy Action for Climate Change (DACC), launched in June last year, was for the dairy sector to proactively take action to mitigate against agricultural emissions. This initiative, by DairyNZ and Fonterra, has come at a time when it is increasingly imperative for the dairy sector to take leadership on such challenges.

At a climate conference in Germany late last year, Climate Change Minister James Shaw said New Zealand would be a world leader on climate change. The Government is looking to have the Zero Carbon Act in force by the middle of this year, which will enforce a net zero emissions target by 2050, and set up an independent Climate Change Commission that will decide whether agriculture should enter the Emissions Trading Scheme. Regardless of the outcome, it has never been more important for the dairy sector to take action on agricultural emissions. . . 

Plenty more lambing seasons in store – Yvonne O’Hara:

Even though he is 82, John Benington recently completed 57 consecutive lambing seasons. And he is intending to add to that number.

He still helps son Jamie on the family farm, Craigellachie Downs, near Beaumont, when needed, and he and wife Anne have their own smaller unit, near Lawrence.

Mr Benington is the third generation to live in the area.

”I was born and bred in Lawrence,” he said. . . 

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Put that baler twine back in your pocket son, this fence is beyond fixing, said no farmer ever.

Decisive action on Brown Marmorated Stink Bug necessary:

New Zealand Winegrowers applauds the Ministry for Primary Industries’ (MPI) decisive action in turning back three cargo vessels contaminated with Brown Marmorated Stink Bug (BMSB).

BMSB is one of the wine industry’s most significant biosecurity risks due to the insects’ potential to impact on both the production and quality of processed red wine.

New Zealand Winegrowers CEO Philip Gregan says a BMSB incursion would significantly affect the wine industry’s ongoing export success. . .

Rural round-up

February 17, 2018

Disease has two hubs – Annette Scott:

Cattle disease Mycoplasma bovis has been in New Zealand for at least two years and is spread wider than first thought, Southland veterinary clinic Vet South says while Biosecurity Minister Damien O’Connor says there are now two infection hubs.

The Winton practice sent an email to clients on Thursday urging people whose stock or properties might have been linked to Southern Centre Dairies to come forward.

Southern Centre Dairies, the hub of infected properties in Southland, is owned by Gea and Alfons Zeestraten.

Vet South director veterinarian Georgette Wouda said Ministry for Primary Industries surveillance work indicated the disease was limited to a relatively small group of farms but more needed to be known.

“Down in our region all of the infected properties to date have links with Alfons Zeestraten’s farms. . .

Lamb and wool marketers confident – Sally Rae:

Farmers visiting Alliance Group’s tent at the Southern Field Days had mostly one burning question — how long could lamb prices be sustained.

And the response? “We feel market fundamentals around the world give us some confidence,” chairman Murray Taggart said.

The North Canterbury farmer acknowledged that his position was a “bit easier” than what it was when he first took on the role.

The mood among farmers was “pretty positive” and, despite climatic conditions, he was “really chuffed” with market prices.

“You’ve done a bloody good job,” a long-time shareholder told Mr Taggart on the way past, but Mr Taggart said the company was not resting on its laurels. . . 

Momentum grows in understanding of farming, farmers – Sally Rae:

Federated Farmers national president Katie Milne believes there is real momentum building for farming — “and in the right way”.

The straight-talking West Coast dairy farmer — who last year broke a 118-year history of male leadership of the rural lobby organisation — has been at the Southern Field Days in Waimumu this week.

Joking that she had left her partner unsupervised around the many machinery sites, she helped a Federated Farmers team to victory over FMG in a tug-o-war competition.

Ms Milne, who is known for her down-to-earth and no-nonsense approach,  said the leadership role was “really exciting” and it was a privilege to be a voice for farmers. While she knew it was a big job, it had surprised her the places that she ended up and the people she had met.

It had been somewhat of a baptism by fire, with the general election  being held straight after she came into the role. . . 

Honey season better but patchy – Richard Rennie:

With parts of Northland and Bay of Plenty grappling with major rainfall while parts of Taranaki and Otago remain parched, honey producers are reporting mixed results for the season’s honey collection.

Comvita, one of the country’s largest honey producers, has already informed investors this season has been a successful one, largely thanks to more favourable conditions in December and January. 

However, severe weather in early January hit Northland and Waikato hard at a critical flowering period, pushing yields down towards a more average season.

Comvita chief executive Scott Coulter told investors if the above-normal temperatures remain for the rest of this summer, Wairarapa, Whanganui, East Coast and Hawke’s Bay are expected to have an above average season. . . 

Big toy has price tag to match – Sally Rae:

If you’ve got a spare $625,000 sitting in the wallet, then a Fendt 1050 tractor could be just the ticket.

The world’s largest conventional tractor was attracting plenty of interest at JJ Ltd’s site at the Southern Field Days.

There are only three of the 500hp tractors — described by JJ’s staff as being in a “class of its own” — in New Zealand, two demonstrator models and one that had been bought by a North Island contractor. . . 

NZ Well Positioned to be global player in alternative protein market – producer:

Eco conscious millennial consumers are reshaping demand for alternative sources of protein according to the country’s largest manufacturer of vegetarian foods.

Mark Roper spokesperson for Life Health Foods – which makes plant based Bean Supreme and recently launched Alternative Meat Co. products, says growing concern for the environment is leading this demographic to seek out other options to integrate into their diet.

A nationwide survey commissioned by the company has found that millennials aged 18-34 are the most likely demographic to adopt a mostly meat-free lifestyle in the next decade. . . 

How Do I Love Ewe?

February 15, 2018

Jim Mora mentioned the anniversary of the first shipment of frozen meat on the Pre-Panel this afternoon and read a snippet from my ewenique rewriting of Elizabeth Barret Bronwing’s poem:

How Do I Love Ewe? (With apologies to Elizabeth Barrett Browning)

How do I love ewe? Let me count the ways

That lamb tempts the taste buds and any hunger stays.

Of course I love ewe roasted, but still a little rare.

And I love ewe butterflied, from all the bones carved bare.

I love you chopped or diced and threaded onto sticks,

With capsicum and onion to get my vege fix.

I love you minced with salad in a burger bun

And chewing on the chop bones is always lots of fun.

I love ewe tender barbequed, the smokey taste sublime,

And shanks cooked long and slow for flavour that’s divine.

I love ewe marinated, with mint or coriander,

And many other ways my appetite ewe pander.

Though, proud Kiwi that I am, would be hard to find one keener,

My favourite way to cook ewe is how it’s done in Argentina:


The sheep for that first shipment came from, and were slaughtered at, Totara Estate in North Otago.

It’s now owned by Heritage NZ and is open to the public.

NZ History tells the story of that first shipment here.


Rural round-up

February 2, 2018

New Zealand Agribusiness Outlook 2018:

Favourable market conditions should underpin a second year of broad-based profitability for New Zealand agriculture. Where the industry chooses to direct improved cash flow and focus amid this sustained positive run will be important for many years to come. . .

Lewis Road investor Southern Pastures ties up with Westland Milk – Paul McBeth:

Dairy farm fund Southern Pastures LP, which took a quarter stake in Lewis Road Creamery last year, will link with Westland Milk Products as a supplier from the 2018/19 season and with plans for a high-value product joint venture. Separately, Westland cut its forecast milk payout for this season.

Southern Pastures and Westland signed a letter of intent where the dairy farm investor’s nine Canterbury farms will supply an extra 4 million kilograms of milk solids to Westland from 2019, and investigate a business case for a 50/50 joint venture to create products from free-range, grass-fed milk based on strict animal welfare, health, sustainability, climate change and human rights standards. . . 

Why the CPTPP is important for New Zealand:

There is no question that our small, remote nation depends on trade. But there were times during the protracted negotiations that have now culminated in the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) when the visceral debate here could easily have led bystanders to believe New Zealanders specialise primarily in trading insults.

The fact that there is now a deal to be signed – after the efforts of successive prime ministers ranging from Helen Clark and John Key to Bill English and now Jacinda Ardern – is a cause for real celebration. Our role in recent decades as free-trade pioneers, in the teeth of other countries’ stubbornly defended protectionism, should be a source of national pride. Our exports reap more than $70 billion a year, but farmers and manufacturers know what courage it has taken to open our borders, forgo subsidies and eschew protectionism. They and the country are better off as a result. . . 

Environment and agriculture can both benefit from CPTTP:

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTTP) trade agreement has the potential to transform the agricultural sector and at the same time benefit the environment, agribusiness expert Dr Nic Lees of Lincoln University says.

However, he added, the public needed to be convinced of that.

The CPTTP is the re-negotiated Trans Pacific Partnership after the USA withdrew, and is a free trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Negotiations have concluded between the countries but it is yet to be ratified by New Zealand. The TTP had met some public and political opposition. . .

Farm machinery sales back to 2014 levels – TAMA:

Sales of tractors in 2017 increased markedly, just topping the previous highest recorded levels of 2014, says NZ Tractor and Machinery Association (TAMA) General Manager, Ron Gall.

Mr Gall said the association recognised that some farmers in both islands were currently experiencing hardship with the very hot and dry conditions. The challenging drought conditions may affect sales in the coming months but it was hoped changing weather would provide some relief.

Mr Gall said in 2017, a total of 4079 tractors were sold. This is up 13% on 2016, up 14% on 2015 and even slightly up on the boom dairy year of 2014, which had 4062 sales. . . 


Rabobank Wine Quarterly Q1: Evolution of sourcing strategies:

2017 was a dynamic year for the wine industry, marked by short-term scarcity and rising prices, according to Rabobank’s latest Global Wine Quarterly report.

The report says while “2017 was an unusual one for the wine industry, forcing all players to rethink their short-term strategies” – changing consumer behaviour, global shifts in demand volumes and changing trading frameworks, could represent long-term structural changes.

“Although the unconventional year that 2017 was may just be a one-off, it may also be enough to accelerate deeper changes that were already developing in the wine industry,” says RaboResearch senior beverages analyst Maria Castroviejo. . . 

Green light for China opens up new export opportunities for leading supply group:

Leading avocado export supply group AVOCO has welcomed this week’s announcement that New Zealand market access to China has been granted for the 2018-19 export season.

AVOCO exports New Zealand avocados to various Asian markets under its AVANZA brand and the company has been preparing for access to China for some time. Preliminary planning has included the development of a market-specific brand name designed to be the exemplar brand from New Zealand for China. . . 

Millennials are leaving desk jobs for this surprising profession – Alexandra Hayes:

The millennial generation is often called out for its social media addictions, its work habits, and even its unhealthy ideals around perfection, but according to the Washington Post, many of them are diverging from the status ladder and leading a crusade toward a different purpose entirely: farming.

Take Liz Whitehurst. Two years ago, she left her non-profit job and bought her farm, Owl’s Nest, from a retiring farmer. Now she grows an array of organically certified produce and sells to restaurants, through CSA shares, or at local farmers markets.

According to the latest Census of Agriculture in 2012, the U.S. Department of Agriculture reports that 69 percent of farmers today have a college degree, a number that suggests more millennials are leaving traditional desk jobs to pursue this very different life. . .

Manuka South® latest Manuka honey is making a legendary entrance:

The highly anticipated Limited Reserve batch of 26+ UMF features some of the rarest and most potent Manuka honey available in the world. Manuka South® is releasing only a limited amount of the high-end honey.

Manuka South® 26+ Limited Reserve – available at select Aotea Gifts stores in New Zealand – is the latest in the line of premium Manuka honey products produced by Manuka South®, a trusted brand from New Zealand Health Food Company (NZHF). But it will also be the rarest among them, because jars won’t be on store shelves long. . . 

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