GDT edges up

January 18, 2017

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

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

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Rural round-up

January 11, 2017

South Island’s two-year drought ends:

After two years, regions along the South Island’s east coast are no longer considered to be in a state of drought.

In 2015, Primary Industries Minister Nathan Guy classified the drought as “a medium-scale adverse event” affecting Marlborough, Canterbury and parts of Otago.

The following two years made the drought the longest recorded in this country – but the official period has not been extended since 31 December. . . 

Putting New Zealand’s farming woes in perspective – Pat Deavoll:

Over the last 10 years, I have been a few times to an area of northern Afghanistan called the Wakhan Corridor.

I am reminded of the dichotomy between the farmers of this area and the farmers in New Zealand whenever a weak GlobalDairyTrade auction result is announced, or the poor state of the meat industry is bandied around the media, or a wool auction fails to meet expectations.

The Wakhan Corridor is split east-west by the Panj River. On the northern side is Tajikistan and nomads herd sheep and cattle, and above 4500 metres, yaks.

Bio-diesel drives milk flow – Richard Rennie:

Fuel is starting to flow from New Zealand’s first commercial bio-diesel plant with Fonterra in line to be one of the first large-scale fleet operators to power its tankers with the Z Energy blend.  

Z Energy’s $26 million bio-diesel plant in Wiri, South Auckland began processing tallow based bio-diesel before Christmas, with the first commercial product due to be at the commercial pump by February.  

The plant’s commissioning marked a milestone in the country’s chequered history of domestic bio-fuels production. . . 

New weapon in rabbit war – Neal Wallace:

A NEW strain of rabbit-killing RHD virus could be released this winter.  

Increasing immunity among rabbits means the existing RHDV1, or Czech strain, has become less effective and advocates say the RHDV1 K5, also known as the Korean strain, would overcome protective antibodies and improve kill rates by up to 40%.  Federated Farmers South Canterbury high country section representative Andrew Simpson said the original RHD strain was still working to a point but growing immunity had allowed populations in some areas to recover, meaning a new, virulent strain was needed.  

Rabbits less than three months of age exposed to the Czech strain became immune, which resulted in the population returning to plague proportions in some parts of the South Island. . . 

Consumers drive move back to dairy:

The new year is marked by resolutions, often about healthier lifestyles. A new series backed by Fonterra looks at the nutritional and lifestyle benefits of dairy – and at some of the old views now being slowly discarded.

The Wall Street Journal headline ran over two lines: Grass-Fed Milk Is Taking Off With Health-Conscious Shoppers. It was a sign of things to come.

That was in 2014 – a story about how shoppers were prepared to pay more for grass-fed milk (many cows in the US eat feed derived from corn) because it was considered healthier.

Now, an article on the Gallagher Group’s website relates how US dairy retail supplier Organic Valley (the one highlighted in the WSJ two years ago) is enjoying an 82 per cent dollar growth in their grass-fed yoghurt, more than three times that of non-grass-fed yoghurts. Their Grassmilk brand is the top-selling grass-fed dairy brand in the US, experiencing double-digit growth since its launch in 2012. . . 

WTO decision important for NZ beef and horticulture into Indonesia

Trade Minister Todd McClay today welcomed the World Trade Organization’s (WTO) decision upholding New Zealand’s challenge to 18 agricultural non-tariff barriers imposed by Indonesia.

New Zealand and the United States jointly brought the case against Indonesia in 2013 over a range of barriers imposed on agricultural imports since 2011. These included import prohibitions, use and sale restrictions, restrictive licence terms and a domestic purchase requirement.

The barriers are estimated to have cumulatively cost the New Zealand beef sector alone between half a billion and a billion dollars. As recently as 2010, Indonesia was New Zealand’s second-largest beef export market by volume, worth $180 million a year. . .

Quality Pedigrees Abound at Karaka 2017;

Full-brother to G1 winner Lucia Valentina (NZ) (Savabeel) to be offered at Karaka 2017.

New Zealand Bloodstock’s 2017 National Yearling Sales Series at Karaka has impressive depth with a large quantity of siblings and progeny of Group 1 winners.

For the second consecutive year, the National Yearling Sales Series will present a full-sibling to the winner of one of Australia’s richest and most prestigious races. . . 

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Farming it’s an addiction.


Rural round-up

January 5, 2017

From backwater to water ‘battleground’ – Sally Rae:

Farming in the Omarama area these days is very much like farming in the proverbial fish-bowl.

The spotlight is on both the Upper Waitaki and neighbouring Mackenzie district with changing land-use, water quality and environmental issues to the fore.

Twenty years ago, Omarama barely registered on the map; rather it was ”somewhere to drive through at high speed” to get to Wanaka or Queenstown, sheep and beef farmer Richard Subtil, from Omarama Station, said.

Bellamy’s organic infant formula derails in China – Keith Woodford:

For the last two years, Bellamy’s organic infant formula out of Australia has been one of the two rising stars of the Chinese infant formula market. The other has been ‘a2 Platinum’ produced here in New Zealand by Synlait for The a2 Milk Company (ATM).

In recent weeks, the Bellamy’s business has run badly off the tracks. This has sent jitters more widely through the infant formula industry.

First, there was a cautious market guidance release by Bellamy’s on 2 December, and the Bellamy’s share price immediately crashed 40%. Then on 12 December, Bellamy’s asked that its shares be suspended from trade for 48 hours while they assessed their position. This suspension has subsequently been renewed twice and currently runs through to 13 January 2017 while further assessment occurs. . .

Dairy turmoil shows folly of narrow focus;

Farming does not get the public attention is deserves these days, until this time of year when any road journey out of the cities reveals what a wealth of beauty and prosperity the countryside contains. Many farms somehow managed to look prosperous to the urban eye even when the main industry of most – dairying – was in the doldrums. But at least this summer, city holidaymakers on the roads can look at those verdant pastures and know that this, at last, is a happy new year for rural New Zealand too.

After two years of depressed dairy prices, the market began to turn in the middle of last year and for the past few months the price of milk powder has been back above break-even levels for most producers. Furthermore, there is every reason to believe the slump is over. The over-supply that caused it, largely from Europe, has been reduced or consumed and this season’s supply better matches demand.

The end of the world as we know it: What a vegan New Zealand would look like. – Jon Morgan:

Over Christmas lunch an earnest young niece asked, what did I have against vegans. I replied, nothing.

A couple of people I know profess to be vegans, migrating there from simple vegetarianism. They have to go to great lengths to ensure they have a balanced diet and I worry for their children, but otherwise they’re perfectly likable.

It’s the militant vegans I can’t stand, I told her. They’re the ones who have made veganism into a nefarious political movement, with the closure of all animal farms as their primary goal. . .

Rustlers take 1400 lambs in massive stock heist:

A Whanganui farmer has lost 1400 lambs to rustlers in what might be the largest stock heist in the country.

Police say they received a complaint about the theft from an owner of a property near Fordell.

More than 1400 lambs, worth about $120,000, reportedly went missing between October 25 and November 7, this year.

“That could be one of the biggest thefts involving sheep in the country,” Harry Matthews, president of Whanganui Federated Farmers, said. . . 

Texus Fibre eyes $2.9b face mask market in Asia :

A Kiwi company has secured a deal it hopes will unlock a lucrative $2.9 billion Asian healthcare market.

Texus Fibre uses natural wool to develop ‘functional materials’ – meaning they do something clever scientifically.

On Thursday it announced an investment and distribution deal with Auckland firm Healthy Breath Limited (HBL) for Texus’ wool-based air filter to be used in face masks marketed to city-dwellers in Asia. . .

 


GDT down 3.9%

January 4, 2017

The GlobalDairyTrade price index dropped 3.9% in this morning’s auction.

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Rural round-up

December 22, 2016

Sheep and beef industry confidence – a tale of two species:

While overall sheep and beef farmer confidence in their industry has taken a dip in the last four months, there is a solid core that remains upbeat about the future.

Beef + Lamb New Zealand commissions UMR Research to gather a range of confidence and performance indicators to understand three main topics. These are the mood of the industry, to assess the key areas farmers’ want their organisation to deliver on for them and to assess Beef + Lamb New Zealand’s performance.

Beef + Lamb New Zealand Chief Executive Sam McIvor said the latest 2016 quarterly report shows that farmers with high beef numbers are more confident than the sheep dominant enterprises. . . 

High value sheep milk PGP programme officially kicks off:

Building an environmentally, socially & economically sustainable industry to meet the growing demand for sheep milk products is the goal of a new sheep milk Primary Growth Partnership (PGP) programme that has officially kicked off.

The Ministry for Primary Industries (MPI) and Spring Sheep Milk Co. have signed a contract for the new Sheep – Horizon Three PGP programme, which means the programme can formally start.

Sheep – Horizon Three will provide a major boost by creating a high value, sustainable sheep milk industry in New Zealand. Internationally, sheep milk is growing in demand. This is particularly clear in Asia, where consumers like its nutritional value, flavour and digestibility. . .

A2 scotches talk of infant formula woes; shares gain – Paul McBeth

(BusinessDesk) – A2 Milk Co shares gained after the milk marketer played down fears about the infant formula market stemming from ASX-listed rival Bellamy’s Australia’s extended trading halt.

The stock gained 5.4 percent to $2.15, having been under pressure since Dec. 12 when Bellamy’s sought a trading halt, stoking speculation about the formula market. . . 

Research could lead to agricultural emissions reduction – Andrew McRae:

Scientists from New Zealand and the United States have made a discovery which could lead to new ways to reduce greenhouse gas emissions in the agricultural sector.

They have worked out how reactive nitrogen could be chemically converted to unreactive di-nitrogen gas, without forming harmful greenhouse gases.

Agriculture contributes more of the harmful greenhouse gas nitrous oxide than any other sector worldwide, primarily through nitrogen fertilisation. . . 

Dairy prices on the rise after sustained low:

Food prices fell 0.1 percent in November, Statistics New Zealand said today. Seasonally lower prices for vegetables in November were mostly offset by higher prices for dairy, meat, and fruit. After seasonal adjustment, food prices rose 0.3 percent.

“Prices for the cheapest available cheddar cheese rose 17 percent in October, to $8.44 a kilogram,” consumer prices manager Matt Haigh said. “Cheese prices overall rose 7.9 percent.” . . 

Farmers encouraged to keep children safe this summer:

Farmers are being encouraged to keep children safe on farms over the school holidays with a heightened risk of accidents on farms.

Accidents involving children on the farm peak over December and January, account for more than 22% of injuries to those aged 15 years and under. Seven children died as a result of an accident on a farm between 2013-2015. In the 12 years up until 2015, nearly 20,000 children were injured on the farm.

WorkSafe’s sector leader Agriculture Al McCone says children are a vital component of farming family life and it was important this tradition continued. . . 

Misha’s Vineyard Opens Pop-Up Cellar Door:

Misha’s Vineyard will open a pop-up cellar door in Cromwell for just two weeks commencing on Monday the 2nd January. Located in The Mall in the heart of Cromwell, the pop-up cellar door will be open from 10am to 4pm daily.

Misha’s Vineyard produces an extensive range of Pinot Noir and aromatic white wines including Pinot Gris, Riesling, Rosé, Sauvignon Blanc, Gewürztraminer, as well as a late harvest dessert wine – all of which will be available for complimentary tastings at the pop-up cellar door. . . 

Dijon Bleu (NZ) Stakes Karaka Million Claim:

It took just one start for Dijon Bleu (NZ) (Burgundy) to race her way into contention for next month’s $1m Karaka Million (1200m) at Ellerslie.

Purchased for $26,000 by Awapuni trainer Lisa Latta at the 2016 Select Sale, Dijon Bleu made her debut in Sunday’s$20,000 Mills Reef Winery 2YO (1100m) at her home track. Ridden by Kelly McCulloch, she edged out her stakes-performed stablemate Dreams of Platinum (Dream Ahead) by a nose.

Dijon Bleu earned $12,500 for Sunday’swin, putting her in equal eighth position on the Karaka Million . . 


GDT down .5%

December 21, 2016

The GlobalDairyTrade price index dropped slightly in this morning’s auction, the last for the year.

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Rural round-up

December 13, 2016

Shearer drug-testing mooted – Alexa Cook:

The New Zealand Shearing Contractors Association says there is a problem with drugs in the industry, but it is hard to measure because testing is not widespread.

The association’s president, Jamie McConachie, said alcohol was a well-documented issue with shearing gangs, however the scale of drug use was less clear because it was harder for people to talk about and measure.

The Australian shearing industry has recently formed a group to try and tackle methamphetamine abuse.

Mr McConachie said New Zealand had similar problems, but he did not think it was as bad as Australia. . . 

Film keeps young plants warm, moist – Sally Rae:

Brian Michelle’s maize crop alongside the Outram-Mosgiel Rd is attracting a fair bit of attention.

That is because it has been planted using a biodegradable film that creates a greenhouse effect for the young plants.

The Samco system, owned by Pioneer, had been in New Zealand for a few years. Mr Michelle was the only farmer to use it on the Taieri this year although the system was increasingly being talked about, Farmlands technical field officer Kieran Fowler said.

In a single pass, the Samco  planting machine planted the maize seed, applied a pre-emergent herbicide and laid the biodegradable film. . . 

MPI produces super biosecurity dogs:

The Ministry for Primary Industries hopes a new breed of detector dog will produce its best biosecurity sniffers ever.

MPI detector beagle Clara gave birth to three male and three female puppies on 24 November. The sire was Morley, a harrier hound. Both dogs work for MPI at airports and ports to sniff out food and plant materials that pose biosecurity risk to New Zealand.

“It’s the first time anyone in the world has crossed a beagle and a harrier for detection work and we have very high expectations for this super-breed,” says MPI Detection Technology Manager Brett Hickman. . . 

Case studies of top performing dairy farms released:

New case studies on top performing dairy farms will help other farmers drive their economic and environmental performance, says Primary Industries Minister Nathan Guy.

The studies are part of the Ministry for Primary Industries’ Farm Systems Change programme, which is looking at ways to help farmers boost performance by learning from the strongest performers.

“Last year the Government allocated $800,000 towards this project which is focused on understanding the drivers of farm performance and sharing that knowledge with others. . . 

Fonterra chairman urges new PM to continue push for trade deals –  Fiona Rotherham

(BusinessDesk) – Fonterra chairman John Wilson has told investors in the cooperative’s unit fund that it’s critical the government continues driving regional and multi-lateral trade agreements.

At the annual meeting of the Fonterra Shareholders Fund, Wilson said he had gone on a number of trade missions with former Prime Minister John Key, who he said was a strong supporter and advocate of the New Zealand dairy industry.

“With his departure, it is critical that we continue to work closely with government to ensure trade strategy adapts to the changing global environment that has certainly seen significant political change during 2016,” he said. . . 

Feds Challenge Bill English’s Team to Continue Good Work:

 

Federated Farmers congratulates outgoing Prime Minister John Key after eight years leading the country, and looks forward to working with Bill English in the top job.

“John Key has been an outstanding Prime Minister and ambassador for our country.

“During his time in office he has overseen some profound challenges and changes,” Federated Farmers President Dr William Rolleston says. . . .

Tatua Appoints New CEO:

On Thursday 8 December 2016, the same day as its Annual General Meeting, The Tatua Co-operative Dairy Company Ltd announced the appointment of Brendhan Greaney to the position of Tatua Chief Executive Officer.

Chairman Stephen Allen who spoke to both Shareholders and Staff said, “after a professional, rigorous yet sensitive process, supported by executive search firm, Hobson Leavy, we are absolutely delighted to announce the appointment of one of our own people, Brendhan Greaney. Brendhan’s appointment is with immediate effect with the simultaneous retirement of previous and highly respected Chief Executive Officer, Paul McGilvary”. . . 

Atkins Ranch gains full non-GMO accreditation in US:

New Zealand’s Atkins Ranch is the first lamb exporter in the world to gain full non-GMO accreditation in America through the non-GMO project.

“It is something we’ve been working towards since the start of this year,” says New Zealand supply chain manager Pat Maher. “As of this week 100 per cent of our product is 100 per cent non-GMO project verified.”

Non-GMO project is an American-based organisation that provides third-party verification for non-GMO food and products. . . 


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