Rural round-up

19/01/2021

Why we can’t plant our way out of climate change – Marc Daalder:

As New Zealand gears up to fight climate change, experts warn that we need to actually reduce emissions, not just plant trees to offset our greenhouse gases, Marc Daalder reports

This year is shaping up to be a major one for climate policy. Between the Climate Change Commission releasing its recommendations around our Paris target and emissions budgets and a major climate summit in Glasgow in November, 2021 is the year the New Zealand Government will finally lay out in detail its plans to fight climate change.

Ahead of February 1, when the Commission will release drafts of its advice for consultation, experts warn that we shouldn’t be taken in by the allure of trees as a silver bullet. It’s true that major reforestation will be crucial to slowing global warming (and has added biodiversity benefits as well), because all plants sequester carbon breathed in from the atmosphere. . . 

Daigou disaster – Elbow Deep:

It is surprising how quickly a company’s fortunes can change; the A2 Milk Company (A2MC) played a dangerous high-stakes game, relying heavily on an informal network of Chinese students and personal shoppers to distribute much of its product into China. It’s a game that has cost other companies dearly in the past.

Daigou, buying on behalf, is a network of Chinese nationals living in or visiting Australia who buy local products and ship them back home to groups of friends, customers cultivated via the social media app WeChat. It is not uncommon for Chinese tour groups to visit stores like the Chemist Warehouse and buy products in bulk, much to the ire of locals.

Such is the demand from China for Australian packaged products that in 2019 a Sydney store owner was found to have stockpiled 4,000 1kg tins of baby formula ready for export. . . .

Concerns over shearer ‘bidding wars’ – Gerald Piddock:

Reports of unofficial bidding wars among Australian farmers to secure shearers has a New Zealand shearing boss worried it could lure Kiwi shearers across the Tasman to chase the money, leaving the industry short-staffed.

The shortage of shearers in Australia due to covid-19 restrictions meant some farmers were paying shearers 20-50% premiums per sheep above the usual rate, the ABC reported.

Shearing Contractors Association of Australia secretary Jason Letchford told ABC farmers were offering shearers A$4-$5/head to shear sheep. The minimum pay rate to shear a sheep in Australia is A$3.24.

Prior to the covid-19 border restrictions, these jobs would have been taken up by NZ shearers. . . 

Exchange rate a pain point for meat export – Neal Wallace:

A wildly fluctuating exchange rate is causing headaches for meat exporters. Silver Fern Farms (SFF) says between October and November the NZ-US exchange rate rose from $US0.65 to $US0.71, wiping $140 a head off beef and up to $11 off a lamb.

As of late this week the exchange rate was $US0.72.

In a Christmas update podcast, SFF’s supply chain manager Dan Boulton says in addition to exchange rate fluctuation, the other headwind facing exporters as they enter peak production, is the congested global supply chain.

This is causing issues with container availability, shipping schedules and port access. . . 

Tractor industry remains optimistic for 2021:

The tractor sales industry finished 2020 on a strong note with December sales up 18.4 % on 2019.

Tractor and Machinery Association (TAMA) president Kyle Baxter says that while 2020 definitely posed challenges for the industry, the current mood of members is positive.

Overall tractor sales for 2020 were down 15.3% compared with 2019, with sales for the bigger machines (375+ HP) particularly affected with a drop of 25%. . . 

Dairy markets stable despite Covid challenges – Carlene Dowie:

Global dairy markets appear to be weathering the COVID-19 storm with prices stable despite pandemic-induced changes in demand in key markets.

The Australian Milk Value Portal’s latest Global Dairy Update says resilience in demand for dairy products is underpinning the market.

International analysts are also pointing to stability – with ANZ in New Zealand last week lifting its forecast farmgate price there by 7.5 per cent while the Food and Agricultural Organisation’s dairy price index jumped for the seventh month in a row in December.

The Milk Value Portal’s Nanna Moller said the market outlook was mostly bullish, despite differences in global markets, with slowing growth in milk supply in Europe and Oceania and sustained demand for consumer staples. . . 


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