Fonterra opening forecast $4.25

May 26, 2016

Fonterra has announced an opening forecast farm gate milk price of $4.25 per kilo of milk solids for next season.

Prices are expected to increase during the season but no one should be banking on that.


Rural round-up

May 23, 2016

Hazardous Substances and New Organisms Act out of date and out of time:

Federated Farmers is calling on the Government to urgently set up an expert panel to review the regulation of genetic modification (GM) in the wake of a report by the National Academy of Sciences which confirms the safety of GM crops.

GM crops have been used in agriculture since 1996 and the study carried out by US-based National Academies of Sciences, Engineering, and Medicine examined the literature, listened to speakers and heard comments from the public to determine the negative effects and benefits of commercial GM crops.

Federated Farmers President Dr William Rolleston says the report found there was no substantiated evidence of a difference in risk to human health between current commercial GE crops and conventional crops. . . 

Future-focussed farm since 1863 – Sally Rae:

Brendon Cross is the sixth generation to farm amid the spectacular beauty of the Otago Peninsula.

He and his wife Paula’s vision for farm sustainability was rewarded recently when they were named supreme winners in the Otago Ballance Farm Environment awards.

At a field day last week, judging co-ordinator Judy Miller described it as a successful farming operation that incorporated the complexities and challenges of farming in a semi-urban environment. . . 

YFC’s support after accident appreciated – Sally Rae:

Brooke Solly had been meaning to join the Maniototo Young Farmers Club.

The young shepherd had every intention of heading along to a meeting but she got busy, breaking in a horse, and never quite made it.

Then on April 2 this year her life changed, potentially forever, when she rolled her vehicle and suffered serious injuries, including spinal damage.

“I got through 22 years of not breaking any bones and then decided to do a hell of a job of it,” she said dryly. . . 

NZ export log prices lift in May as weaker currency offsets higher shipping costs – Tina Morrison:

(BusinessDesk) – New Zealand export log prices advanced this month as a decline in the local currency made the country’s shipments more competitive, offsetting a lift in shipping costs.

The average wharf gate price for New Zealand A-grade logs edged up to $120 a tonne in May, from $119 a tonne in April, according to AgriHQ’s monthly survey of exporters, forest owners and saw millers.

The in-market price of A-grade logs in China, New Zealand’s largest market, advanced to US$113/JAS from US$111/JAS last month as inventory levels on Chinese ports remain moderate, following a relatively low build up of stock on ports during the Chinese New Year holiday period. . . 

Business leaders from Agritech industry to gather at the upcoming INZBC Summit 2016:

Over 300 global business leaders and stakeholders will come together on 13th June for first of its kind summit on Agritech, being held by INZBC. The summit will witness business leadership from across New Zealand and India to discuss in depth the scope of agribusiness in both the countries.

The Summit is being held in partnership with New Zealand National Fieldays, the most respected organisation in NZ for Agriculture. . . 

New Zealand Winegrowers welcomes modernisation of Customs and Excise regime:

New Zealand Winegrowers has welcomed today’s announcement by the Minister of Customs around the modernisation of New Zealand’s Customs and Excise legislation.

‘The legislation was becoming increasingly outmoded and an update has been badly needed’ said Philip Gregan, CEO of New Zealand Winegrowers. ‘We are looking forward to changes in areas such as moving goods around New Zealand and simplifying the process for applying for refunds of excise for unsold damaged goods.’ . . 

NZ should be milking it in organic market:

Consistent growth in the demand for organic produce over the last four decades is a missed opportunity New Zealand dairy farmers can’t afford to ignore any longer, says organics stalwart Bob Crowder.

His comments are a response to a payout forecast of $9.20 for organic milksolids, more than double the price of conventional milk, which he believes has the potential to take New Zealand back to being a world leader in organics.

He laments New Zealand letting its status as a frontrunner in organics slide. “At one time we were one of the top certified organic nations in the world. Now we’re almost insignificant in the global picture,” says Mr Crowder. . . 


Rural round-up

May 20, 2016

Major Japanese suit retailer commits to Kiwi wool – Dave Gooselink:

Fifty sales representatives from one of Japan’s largest suit retailers have spent the day on a Kiwi sheep farm.

They’ve been inspecting some of the merino sheep behind the company’s premium clothing, and it’s a market that’s expanding.

“We show them where it comes from off the sheep [and] we have some sheep out the back, which they’ve seen,” says Maniototo’s Closeburn Station’s Tony Clarke.

“We have some shearing so they see how it’s taken off them.” . . 

Westland launches UHT Product in China:

Only a few weeks after officially opening its new UHT milk and cream plant at its premises in Rolleston (April 15), Westland Milk Products has launched its whipping cream product into the Chinese market.

The Hokitika-based co-operative (New Zealand’s second largest dairy co-op) chose the 19th International Bakery Exhibition of China (Bakery China 2016) to launch the brand ‘Westgold Mu En’ (pronounced ‘moo ern’), aiming to bring a wider range of authentic New Zealand dairy products to Chinese consumers. Westgold Mu En, Westland’s flagship consumer and foodservice brand in China, literally translates as ‘nourishment from the pasture.’ The brand will initially comprise of Westland’s UHT milk, whipping cream and butter. . . 

China dominates global dairy imports – Keith Woodford:

In New Zealand, we have yet to come to terms with the reality that the future of our dairy industry is highly dependent on China.

America does not need us. Europe does not need us. The oil producing countries can no longer afford us. Africa has never been able to afford us.

So it is all about Asia. . . 

Government welcomes Māori forestry collective announcement:

The Ministry for Primary Industries (MPI) and Te Puni Kokiri (TPK) welcomed the announcement of Te Taitokerau Maori Forestry Collective Incorporated’s Action Plan to 2020 launched today at the He Kai Kei Aku Ringa (HKKAR) Regional Hui in Kerikeri.

The Collective is made up of 10 Māori land entities, and together they plan to replant more than 32,000 hectares of their land in forest – an initiative that offers business, education and employment opportunities. The Action Plan to 2020 will pave the way for the Collective’s future.

Ben Dalton, Deputy Director General at the Ministry for Primary Industries, is pleased with the significant progress the Collective has made. . . 

Nurturing the World: dairying with a difference – Caitlin McGee:

Miraka is a dairy company with a difference. It is the only one in the world that uses geo-thermal steam to power its plant. It also uses a worm farm to help get rid of waste.

Richard Wyeth is the chief executive and he says Miraka has a real point of difference in the industry.

“We have a full, closed-loop recycling system, which is reasonably unique in the New Zealand dairy sector. The other thing that is unique about Miraka is that we are predominantly Maori-owned, so 80 percent of our shareholders are Maori trust corporations.” . . .

Uncontrolled Urban Sprawl Will Increase Vegetable Prices:

It’s a simple equation: Auckland spreads its housing into our fruit and vegetable production land = we all pay more for food.

Horticulture New Zealand says if more houses are built on the most productive rural land then we can all expect to pay more for fresh vegetables and fruit.

“We know we need a bigger Auckland, but do we want to pay $10 a kilo for vegetables imported from China?” HortNZ natural resources manager Chris Keenan says.

HortNZ is worried the true cost of uncontrolled Auckland sprawl is not understood. . . 

 

Positivity Pumping At 2016 NZ Dairy Awards Final:

The winners and finalists in the 2016 New Zealand Dairy Industry Awards are evidence of the opportunities for people to prosper in the country’s dairy industry.

In front of 530 people at Wellington’s TSB Bank Arena last night, Mark and Jaime Arnold were named the 2016 New Zealand Share Farmers of the Year, Thomas Chatfield became the 2016 New Zealand Dairy Manager of the Year and Nicholas Bailey was announced the 2016 New Zealand Dairy Trainee of the Year. They shared prizes worth nearly $170,000. . . 

Research into rural disease transmission:

The transmission of diseases passed between animals and humans is the focus of research to be carried out by Otago University.

Known as Zoonotic disease transmission, around 60 percent of micro-organisms causing human diseases are passed that way.

The research led by Dr Pippa Scott will concentrate on two diseases, Escherichia coli, a particularly nasty bug that causes severe diarrhoea, and Staphylococcus aureus, a skin and blood infection. . . 

Onion Industry Strategy Delivering Increased Export Earnings:

Onions New Zealand Inc says with 75% of this season’s crop shipped, the industry is pleased with the direction it’s heading in.

“Returns are expected to be up 50% on last year,” chief executive Michael Ahern says.

“This means an increase from $81 million to $125 million FoB. This forecasted result will re-assert onions position as the third largest fresh horticulture export item after kiwifruit and pipfruit.” . . 

Accurate fertiliser spreading could save NZ agriculture millions:

A research study, commissioned by the New Zealand Fertiliser Quality Council (FQC), estimates that New Zealand agriculture could save tens of millions of dollars in lost production and wasted fertiliser – every year.

Conducted by Massey University’s Centre for Precision Agriculture, the report, which reviewed spreading accuracy from twin disc fertiliser spreaders, found that several factors contributed to ‘off target’ fertiliser spreading – including the physical properties of the fertiliser product, demand for spreaders to spread wider, as well as topography and wind. . . 

Southeast Asian entrepreneurs to gain insights into New Zealand agriculture:

Top Southeast Asian agribusiness leaders and entrepreneurs will be visiting Hamilton agricultural show Fieldays as part of a programme run by the Asia New Zealand Foundation.

The group is coming to New Zealand for a week-long programme through the ASEAN Young Business Leaders Initiative, managed by the Asia New Zealand Foundation for the New Zealand Government. ASEAN is a grouping of 10 Southeast Asian nations with a population of more than 620 million. New Zealand has a free trade agreement in place with ASEAN through the ASEAN-Australia-New Zealand FTA (AANZFTA). . . 


Rural round-up

May 18, 2016

NZ primary sector needs story to sell globally, trade envoy Petersen says – Fiona Rotherham:

(BusinessDesk) – New Zealand needs to develop a new primary sector story to help sell its products to the world, says Mike Petersen, New Zealand’s special agricultural trade envoy.

Speaking at today’s Dairy NZ Farmer Forum at Mystery Creek, Petersen said he has been “banging on” about this idea for some years without getting much traction.

“We need a coherent New Zealand story and we need it desperately to take out into the world,” he said. “We are behind the game at pulling this together to make the most of our opportunities.” . . .

Monsanto’s pesticide ‘unlikely to cause cancer’ :

The weed-killing pesticide glyphosate, made by Monsanto and widely used in agriculture and by gardeners, probably does not cause cancer, according to a new safety review by United Nations health, agriculture and food experts.

In a statement likely to intensify a row over its potential health impact, experts from the UN’s Food and Agriculture Organization (FAO) and World Health Organization (WHO) said glyphosate is “unlikely to pose a carcinogenic risk to humans” exposed to it through food.

It is mostly used on crops.

Having reviewed the scientific evidence, the joint WHO/FAO committee also said glyphosate is unlikely to be genotoxic in humans. . . .

Why Many Midwestern Farmers Are Pro-TPP – Kristofor Husted:

Turn on the TV and you can barely escape the acronym TPP.

The Trans-Pacific Partnership is a free trade deal between the U.S. and 11 other countries that’s currently being negotiated. Presidential candidates on both sides of the aisle are deriding the TPP, saying it’s a bum deal that will hurt the U.S. economy and especially low-wage workers.

But if you venture into the Midwest and ask a farmer about the TPP, you’re likely to get a different answer.

“This pending TPP trade negotiation, to me, is hugely important for agricultural commodities, but specifically for beef,” says Mike John, a cattle rancher in Huntsville, Mo. He’s one of many Midwest farmers and ranchers who are bucking the political trend to dog the TPP. . .  (Hat tip: Kiwiblog)

Māori land report shows potential in Northland:

Māori land owners in Northland have promising options for developing their land, according to a report commissioned by the Ministry for Primary Industries, Te Rūnanga-Ā-Iwi-O-Ngāpuhi and the Far North District Council.

“The report shows that in a 50km radius around Kaikohe there are nearly 4000 small parcels of unproductive land that have the potential to be developed for uses like horticulture and agriculture,” says Primary Industries Minister Nathan Guy.

The report highlights two case studies focusing on horticulture and pastoral land use scenarios that show the potential for many parts of Northland. . . 

Summit to Consider Farming Within Environmental Limits:

The 2016 New Zealand Primary Industry Summit will once again provide farm and business leaders with the opportunity to consider sustainability and environmental issues.

This years programme includes sessions that will tackle the hottest topics in the industry including the TPPA, sustainability, smart branding and marketing, and foreign investment. A highlight for those interested in sustainability will be a session delivered on day two by Fish & Game New Zealand’s Environmental Manager Corina Jordan entitled ‘Farming within environmental limits.’ . . 

Fonterra NZ, Australia milk collection drops in season to date – Tina Morrison

(BusinessDesk) – Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices.

Milk collection across New Zealand fell 3.3 percent to 1.499 billion kilograms of milk solids in the season from June 1, 2015, through April 30, 2016, with all of the decline coming in the North Island while good weather conditions kept South Island production unchanged, Auckland-based Fonterra said in its Global Dairy Update. The 2015/16 season forecast has been revised to 1.558 billion kgMS, down 3 percent on the previous season, its said. . . 

Fonterra Confirms Early Final Dividend Payment:

Fonterra Co-operative Group Limited today confirmed it will pay part of its forecast final dividend earlier, to support farmers during a time of extremely tight on-farm cash flows.

Chairman John Wilson said a solid performance during the nine months to 30 April in the current financial year enables the Co-operative to declare the 10 cents per share dividend today. Payment will be made on 7 June, bringing dividend payments so far this year to 30 cents per share.

“While the milk supply and demand imbalance continues to impact global milk prices and our forecast Farmgate Milk Price, the business is delivering on strategy and has maintained the good performance levels seen in the first six months of the financial year. . . 

Drop in number of farms on the market:

Farm sale prices held steady in April, but the number of farms on the market is falling, says the Real Estate Institute.

New data showed there were 16 percent fewer sales for the three months ended April this year, than for the same three months last year.

But the median price per hectare for all farms sold in the three months to April was $30,000, up nearly 5 percent on the same period last year. . . 

 

image

Hat tip: Utopia

 


GDT up 2.6%

May 18, 2016

The GlobalDairyTrade price index had a welcome 2.6% increase in this morning’s auction, albeit on small volumes.

GdT18.516

gDT185.16

gdt18516

 

 


Rural round-up

May 10, 2016

What impact do milk solids payouts have on the economy?:

Milk solids payouts have been in the news a lot of late with a rollercoaster ride of pricing that has shaken the farming sector’s confidence.

But what impact do these fluctuating prices have on the broader economy?

In the May year 2013/14, Fonterra paid its milk suppliers $8.40/kg for milk solids (excluding the dividend for shareholders). That is $1.3 million for the average dairy herd at the time of 413 cows producing 153,012 kg of milk solids. . . 

Farmers desperate for rain – Rhys Chamberlain:

The seemingly endless summer produced balmy days across Otago but the unseasonably warm start to autumn has caused further headaches for drought-hit farmers.

Niwa statistics show Dunedin is on track to record its second-lowest autumn rainfall on record with about three weeks to go before winter officially starts.

Although another 6mm of rain fell yesterday, Dunedin recorded just 53mm of rain between March 1 and May 7, just 6mm more than the 1939 record low. . . 

Chinese meat processors look to NZ ahead of chilled meat deal:

The new John Key-brokered deal to gain access for chilled meat to the China market is already attracting Chinese meat processors to the Bank of China (NZ) Agri-Business Investment and Trade Conference in anticipation of China relaxing the rules.

During Prime Minister Key’s recent visit to China, he was given an undertaking that the meat protocols between the respective regulatory authorities would be reformed to allow chilled meat exports to China. The deal, when it goes through, will add multi-millions to New Zealand’s trade with China. . . 

Organic dairy farmers reaping just rewards:

The huge rise in the milk payout to organic dairy farmers is a welcome encouragement for the dairy sector to move towards clean, green and high-value production, according to the Soil & Health Association.

Fonterra just announced a big jump in the milk payout to organic farmers, due to increasing global demand. For the 2016-17 season organic farmers will receive $9.20 per kg of milk solids, up from the current organic price of $5.65. Non-organic milk solids fetch just $3.90.

“Consumers worldwide are demanding safe, healthy food, and are prepared to pay for high quality, GE-free, organic dairy products,” said Marion Thomson, co-chair of Soil & Health. . . 

Silver Fern Farms Propose to Relocate Islington Venison Operations to South Canterbury:

 As a result of the pending expiry of its lease, and change in surrounding land use, Silver Fern Farms is consulting with staff at its Islington venison processing plant on options for closing the site and building a new integrated venison processing plant at its Pareora site, in South Canterbury.

Silver Fern farms currently leases land on the Waterloo Road site. The lease is shortly due to expire and the current plant buildings on the site are planned to be demolished to make way for new commercial developments at the Waterloo Business Park.

Silver Fern Farms Chief Executive Dean Hamilton says staying on the Waterloo Business Park site is no longer an option for the company. . . 

Pipfruit New Zealand gains role in protecting NZ biosecurity:

New Zealand’s $700 million pipfruit industry says it will have greater confidence in the country’s biosecurity system now that it will play an influencing role in helping to manage and govern biosecurity and risk.

Pipfruit New Zealand’s chief executive Alan Pollard said growers have welcomed the Government Industry Agreement for Readiness and Response (GIA) and supported the partnership with Government. . . 

Dairy Trainees Embark On Eye-Opening Study Tour:

The 11 finalists in the 2016 New Zealand Dairy Trainee of the Year competition begin a three-day study tour today, visiting award-winning farmers, Fonterra Innovation and Massey University’s No 4 dairy farm.

The trainees will also have a health check, visit a robotic farm, a goat farm, a raw milk farm and hear from a range of speakers on the state of the dairy industry and also on setting and achieving goals.

The tour will finish in Wellington where the group will join finalists in the New Zealand Share Farmer of the Year and New Zealand Dairy Manager of the Year competitions. The final aspect of their judging, an interview, will take place on Friday before the winners of the three competitions are announced at the 2016 New Zealand Dairy Industry Awards national awards dinner at the TSB Arenaon Saturday night . The winners will share about $170,000 in cash and prizes. . . 

Judges Begin Search For National Winner Of Ballance Farm Environment Awards:

The New Zealand Farm Environment Trust has assembled a strong line-up of judges to decide the next recipients of the esteemed Gordon Stephenson trophy.

Comprising six people with a broad range of skills and experience, the National Winner Judging Panel will select the next trophy holders from the eleven Supreme winners in the 2016 Ballance Farm Environment Awards (BFEA).

The recipients will be announced at New Zealand Farm Environment (NZFE) Trust’s National Sustainability Showcase in Northland on June 22, becoming ambassadors for the primary industry in a role that will take them around the country and beyond as they promote the importance of sustainable farming. . . 

Duncan Venison Unveils The “Bistro Fillet,”

A New, Innovative Premium Venison Cut:

Duncan Venison, one of New Zealand’s original venison producers, has developed a brand new item, which it has named the “Bistro Fillet.” The restaurant quality cut will be available to the public from 1 July, through a recently developed online store at duncan-nz.com.

Andrew and Vinnie Duncan, owners of the company, discovered the fillet when looking into ways to make the venison leg more useable, consistent and convenient for restaurants. They found a way to trim and portion the meat in that area, which has resulted in a tender, top quality cut that is ready for immediate cooking and serving. . . 


Rural round-up

May 5, 2016

Cheese-maker happy with the blues – Shannon Gillies:

Pursuing her goal of becoming a businesswoman in the highly competitive world of cheese-making has led Frenchwoman Pauline Treillard to Oamaru.

Originally trained as a sommelier, Ms Treillard (25) left that job to pursue her interest in cheese and became a cheese-maker in her home province of Bordeaux.

After years of trying to get further in the male-dominated industry, she decided to take a chance on the southern hemisphere and left France in 2013.

She arrived in Oamaru in March 2016, after her visa application to stay in Australia with her partner was declined. . . 

China Links paying dividends – Hugh Stringleman:

A week-long trip to China with Prime Minister John Key’s recent government and business delegation enabled Fonterra chairman John Wilson to view first-hand his co-operative’s engagement with its biggest and most-important market. Hugh Stringleman got a debriefing.

Vertical integration of Fonterra’s activities in China position it well for dynamic markets, regulatory changes and government approval, Fonterra chairman John Wilson says.

President Xi Jinping commented on Fonterra’s $1 billion-plus investment in China and the creation of 1600 jobs, Prime Minister John Key had reported. . .

Hard times swell Gypsy Day moves – Hugh Stringleman:

Sharemilkers and other dairy farm staff will be moving in greater numbers this Gypsy Day because of tough times in the industry.

Federated Farmers sharemilkers’ section leaders said more of the annual end-of-season moves would be from necessity and were not improvements in jobs.

“Higher-order sharemilkers will be moving for financial and structural reasons while the lower-orders and contract milkers may be taking a step backwards, unfortunately,” section chairman Neil Filer of Dannevirke said. . . 

Genetics could help combat FE – Sudesh Kissun:

An outbreak of facial eczema (FE) on the West Coast is driving home the need for FE-tolerant genetics, according to a farmer.

Andrew Bruning and Tracey Herrick are first year dairy farming in Karamea, where the whole district has been hit hard with FE — unusual for the area, Bruning says.

They milk 180 cows, mainly Friesian with some crossbred; a quarter of the herd have clinical symptoms of FE. Bruning believes the rest of the herd is suffering with sub-clinical symptoms. . . 

 ‘Gutless’ thieves butcher cow in field – Liz Wylie:

Kaitoke farmer Tony Skews said thieves who shot and butchered his prize cow on Monday night are “gutless pieces of junk”.

Mr Skews, who keeps just 15 cows on his property near Lake Wiritoa, said the animal had been shot with a .22 rifle and badly butchered by “amateurs”.

“They have taken the back steak and four legs and just left the rest,” he said.

“She was the fattest cattle beast on the property and this loss has cost me about $1500.” . . 

 

John Key's photo.

I back our farmers, our manufacturers, our ICT companies and in fact all our export industries to succeed.

If we can get an equal crack at world markets, we’re up there with the best in the world. John Key.

John Key's photo.

This deal matters to individual businesses and workers ine very region of the country.

The orchardist in Hawkes Bay, the windegrower in Marlborough, the dairy farmer in Waikto, and the IT provider in Auckland all stand to benefit. – John Key.


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