Rural round-up

March 20, 2020

Government needs to help farmers – Heather du Plessis-Allan:

Here’s a challenge to this government: help farmers.

If this government is serious about doing everything to get us through this economic crisis in the best shape possible, it has to push pause on all the extra rules it is planning for farming.  Farmers are the ones who are going to get us through this

Look at Fonterra today. It’s holding its forecast farm-gate milk price of between $7 and $7.60. That is good economic news, and we’re getting precious little of that at the moment.

The world can and will stop buying thing – cruises, steel, logs, computers, any number of things – but it can’t stop eating. . .

Dairy industry profits are a bright spot in an economy heading for recession – Point of Order:

NZ’s  dairy  industry, under constant  fire from critics for its methane emissions,  pollution of  waterways  and  intensive farming practices in recent years, almost  overnight  is shaping up   to be one of the  country’s  saviours  as the economy dives into  recession.

While  other   key export sectors — tourism, forestry, education — are jack-knifed by the  coronavirus  pandemic,  the dairy industry’s earnings  more than ever before are proving it to be  what the  critics  have scorned:  “ the backbone of the economy”. . . 

Coronavirus: all shearing competitions cancelled :

The New Zealand Shearing Sports season is over with the cancellation of nine competitions which were scheduled for the next three weeks.

The cancellations include six A and P shows, with confirmation on Wednesday that the Oxford and Mackenzie shows in the South Island weren’t going ahead, following the earlier cancellations of the Methven, Flaxbourne, Warkworth and Auckland Royal Easter shows, the Waimarino and Waitomo shearing competitions, and the New Zealand Shears national shearing and woolhandling championships. . .

Bay company only Kiwi in Top 50 – Richard Rennie:

A Bay of Plenty robotics company is now ranked in the top 50 leading global agri-tech companies. 

Robotics Plus, the only Kiwi company on the list, has made the cut in an annual ranking of companies judged by global agri-tech innovation company Thrive, based in Silicon Valley. 

The Thrive platform is responsible for investing and accelerating start-up agri-tech companies globally. . .

Electronic forms are more efficient – Annette Scott:

Livestock movements will become more accurate and efficient with the introduction of electronic animal status declaration (eASD) forms.

The forms have been tested and farmers moving stock are now being encouraged to go electronic to record their animal movements.

Use of the forms is voluntarily now. . .

New Zealand grown stock feed available for drought-hit farmers:

Latest forecasts suggest New Zealand’s arable farmers have to date been less affected than other primary industry sectors by COVID-19 and the drought.

“It’s clear there are still locally-grown quality stock feed solutions available to farmers in regions hit by drought,” Federated Farmers Arable Chairperson Karen Williams says.

MPI’s just-released Situation Outlook Primary Industries (SOPI) report forecasts that arable production and export for the year ended June 2020 should see revenue increase by 10 percent to $260 million. . . 

 

 


Rural round-up

March 10, 2020

Kiwifruit harvest begins for 2020, Covid-19 and dry weather to create problems

Covid-19, dry weather and labour shortages are expected to create hurdles for the start of the kiwifruit harvest in Bay of Plenty.

There was even talk about New Zealand Kiwifruit Growers Incorporated working with forestry organisations to ascertain if they could provide opportunities to forestry employees while there was a lull in wood exports.

NZKGI today released its forecast for another bumper season with about 155 million trays expected across the country. . . 

Fonterra shareholders pitch ex-Zespri leader Peter McBride as new chairman: –  Andrea Fox:

The money is on Fonterra’s next chairman to be former Zespri chairman Peter McBride as shareholders demand a leader with international market experience and a good commercial record to guide the big dairy co-operative out of a morale funk.

Fonterra farmer-owners approached by the Herald after the announcement that chairman John Monaghan would step down in November said the news was no surprise, and the next appointee must inspire confidence among shareholders, staff and New Zealand Inc.

The company signalled in September last year, around the time it announced a FY2019 net loss of $605 million on asset writedowns of $826m, that a succession plan for the top job was being worked on, though this did not mean Monaghan was going to retire. . . 

Answers please!:

Overseer is proving to be a major worry. This software was supposed to be the solution for monitoring fertiliser input use and its potential environmental impacts, but concerns have been raised by farmers, regional councils and even the Parliamentary Commissioner for the Environment. Farmers have long complained that Overseer is a flawed tool.

However, the current Government – hell-bent on introducing new water quality regulations – has nailed the success of its proposed freshwater reforms to the use of Overseer as the key monitoring tool. . .

A2 Milk ploughs on in China :

The A2 Milk Company delivered another strong sales result in the first half of the 2020 financial year, lifting most of its key numbers by 20-30% over the previous corresponding period.

Revenue was $806.7 million, up 32% or nearly $200m on the first half of FY2019.

Earnings before interest and tax and net profit were up 21%, at $263m and $185m respectively.

Basic earnings a share were 25.15c but the company will continue its policy of not paying a dividend while reinvesting its profits. . . 

No wool sheep mean no worries – Suz Bremner:

Wiltshire sheep have recently come under the spotlight as the labour required and shearing costs associated with the more traditional breeds start to outweigh a dwindling wool cheque for crossbred wool. 

The Wiltshire animals have a relatively young history in New Zealand compared to some sheep breeds but it is a breed that has been nurtured for at least 40 years. 

For some the idea of farming ewes that shed or, at the very least, do not grow wool over their belly and crutch is a too good a chance to pass up and therein lie the bones of an increase in interest for Wiltshires.  . . 

Britain needs its farmers more than ever – Alice Thomson:

So that’s it, the new government doesn’t need farmers. They are antiquated, redundant, whingeing and muddy. We can buy in all our food, Tim Leunig, Treasury adviser and friend of Dominic Cummings, said in an email to the National Food Strategy last month. A second government adviser has suggested the return of lynx so we can rewild Britain and leave it to the big cats. Ardent environmentalists want to plant forests of native trees to replace crops, fields and hedgerows. Militant vegans are pushing for all domesticated farm animals in this country to be phased out.

Farmers can just pack up their diesel tractors and trundle off into the history books, along with wooden ploughs and oxen. They only make up 1.5 per cent of our 21st-century workforce, they moan about the weather, their hunting and shooting hobbies are dubious, and their barns make wonderful rustic conversions. . . 


Rural round-up

July 14, 2019

Quiz local govt candidates on costs, services — Feds – Sudesh Kissun:

Hold your local council candidates to account on costs and services: and if you think the voice of farmers is not being heard, consider standing for election yourself.

That’s the underlying message to rural people in the Federated Farmers 2019 local body elections guide, Platform: Feds on Local Government, released at the Feds’ AGM in Wellington this week.

“The quality of local government in rural communities can mean the difference between dodgy roads and safer ones, and many thousands of dollars in rates,” Federated Farmers President Katie Milne says. . . 

Workshop helps tackle succession :

Taihape farmer Kerry Whale’s family hadn’t even talked about succession. 

“We had our heads in the sand really.”

“It’s a very complicated subject but now our family has a plan to build on and it’s opened communications among us about what the next 10 years will look like.”

What changed? . .

Huge effort for farmers recognised – Annette Scott:

South Canterbury cropping farmer Colin Hurst has been recognised for his immense contribution to the arable industry.

Hurst was crowned Arable Farmer of the Year at the Federated Farmers arable industry group 2019 awards in Wellington.

The South Canterbury Federated Farmers vice president has represented the federation at national, regional and branch level and contributed to the South Canterbury Rural Support Trust, the arable group’s herbage seed growers subsection, United Wheatgrowers and the Foundation for Arable Research. . .

Concentrating on black currants – Chris Tobin:

Pleasant Point vegetable and berryfruit grower Tony Howey is scaling back.

He and his wife Afsaneh Howey have sold and given up leases on 600ha of land on which they grew onions, carrots, potatoes, grain and seed, in order to concentrate on their blackcurrant business.

Mr Howey said he had hoped to find a young keen grower who might take over the operation but this did not happen.

”It was quite difficult; it’s hard to entice young ones now. There’s no-one around.” . . 

Forget about following the floundering fortunes of Fonterra – a2 Milk is the NZX’s fast-rising star – Point of Order:

New Zealand  eyes  have been so  focussed  this  week  on  an event  20,000kms distant   that they  might  not have  noticed here  at  home another  extraordinary  event, taking  place  on the  NZX.

The market capitalisation of a company  which listed   as recently  as  2012  on the local sharemarket soared  past the  $12bn  mark and is hard on the heels of  Meridian Energy,  which has the  highest   valuation  of  NZ-based companies on the NZX  at $12.3bn.

The  challenger is a2 Milk,  which sells a  specialised  type of  milk  with what  it claims are health benefits. . .

Fonterra declares war on waste :

Fonterra is planning a war on waste.

The co-op will stop sending solid waste to landfill by 2025 and will by then have 100% recyclable, reusable or compostable packaging.

These are the right things to do and even more important as more consumers choose products that are environmentally friendly, says the co-op’s director of sustainability, Carolyn Mortland.  . . 

Being a girl won’t stop Courtney Hanns from becoming a livestock auctioneer – Olivia Calver:

YOU don’t see many women selling in yards but Courtney Hanns, 19, is one of a growing number taking up the gavel.

Courtney grew up in the Blue Mountains and from a young age set her sights on becoming a livestock agent.

“…since I was little girl, my Pop had a farm, and I always just wanted to be an agent because I loved what they do,” Courtney said.

However, first she had to convince some in the industry that she was up for the challenge. . .


Mooving to a2 milk

February 20, 2019

Fonterra is signing up farms to supply the a2 Milk company:

Mike Cronin, Fonterra Managing Director of Co-operative Affairs, says “Signing up New Zealand farms to significantly increase supply of high quality milk to The a2 Milk Company is a positive step forward. It clearly shows the strength of our strategic relationship, and our shared commitment to fast-track market growth and enable farmers to create additional value from their milk.”

The Co-op’s initial milk pool will be based in the Waikato around its Hautapu site and will support the production of ingredients. It is anticipated around 100 farms will be needed for next season.

Jayne Hrdlicka, The a2 Milk Company Managing Director and CEO, says “The a2 Milk Company is pleased to be making progress on our relationship with Fonterra. These farms will help support new growth areas for our company across existing and new markets. This is the next step in what we believe will be a fruitful long-term relationship with tremendous potential.”

The location of the milk pool was determined by several factors. Most importantly, the site needed the ability to manufacture the specific product in demand, produce relatively small batches and adapt easily to any product demand changes.

“While other regions were thoroughly considered, ultimately the decision must be demand-led. The ability to efficiently manufacture a range of products to meet that demand was the over-riding factor in choosing a site.As demand and product lines grow, we’ll look to expand the milk pool to enable more farmers to participate,” said Mr Cronin.

Most of the value from the relationship with The a2 Milk Company will be returned to all Co-op farmers through the dividend. Participating farms will also receive a premium for their milk.

Today’s development follows the national launch of the a2 Milk™ brand by Anchor from late September 2018.

A2 milk mostly lacks a form of β-casein proteins called A1 and instead has mostly the A2 form.

There is debate about A2’s health benefits but it attracts a premium price.

Fonterra missed the opportunity to lead with A2 milk and the a2 company has prospered.

Most herds have some cows which produce A2 milk and if Fonterra wanted to corner the market it could require its suppliers to use A2 semen for artificial insemination and in a few years all cows would be producing A2 milk.

That it’s seeking suppliers to supply a2 suggests it won’t be taking that approach.

 


Rural round-up

August 23, 2018

Calf rearer changes tactics after Mycoplasma bovis battle – Heather Chalmers:

Farmers who believe they can live with Mycoplasma bovis need to think again, say a Southland couple who are finally clear after eight months battling the bacterial cattle disease. 

Lumsden couple Ben Walling and Sarah Flintoft are now “gun-shy” of returning to their calf rearing business, knowing the risks involved. 

They had bought 1600 calves to rear last spring before being “clobbered” with M. bovis. Their farm was confirmed clear of infection by the Ministry for Primary Industries (MPI) in early August.  . . 

New research into animals that give off less nitrogen:

New research may hold the key to lowering our emissions, by breeding animals that naturally excrete less nitrogen.

Utilising the genes of animals that produce less nitrogen could provide farmers with a breakthrough in managing on-farm greenhouse gas emissions.

Two research projects are currently looking to see if there’s a link between the nitrogen content of milk and animal emissions and whether it’s possible to identify and then replicate genes in animals that might control how much nitrogen an animal gives off. . . 

A2 Milk shares rise 4.4% as company doubles down on US, Asia – Sophie Boot:

 (BusinessDesk) – A2 Milk’s shares rose 4.4 percent following the milk marketer’s annual results this morning, but are still well off record highs seen earlier this year.

The company more than doubled net profit to $195.7 million in the June 2018 year, as it widened margins and increased infant formula sales. Revenue rose 68 percent to $922.7 million and earnings before interest, tax, deprecation and amortisation also more than doubled to $283 million. A2 already gave that revenue figure last month, just beating its $900 million-to-$920 million forecast from May, and at the time said ebitda was about 30 percent of sales, implying a figure around $277 million. . .

Milking it: I spent a day on the farm and my nose may never recover – Anuja Nadkarni:

NZ is known for its dairy products, and is home to one of the biggest dairy companies in the world. In this Stuff special investigation, we examine how the price of milk is set and explore the industry behind our liquid asset.

I milked two cows last week.

A bog standard Auckland millennial, milked two cows in my jeans, puffer and rubber boots on a dairy farm.

Being the typical city slicker I am, for a moment I arrogantly thought to myself, “yeah, I could do this”.

Could I though? . . 

Sheepmeat and beef levies to increase:

Beef + Lamb New Zealand’s (B+LNZ) Board has decided to proceed with the proposed increase in the sheepmeat and beef levies following significant support from farmers.

From 1 October 2018 the levy for sheepmeat will increase 10 cents to 70 cents per head and the beef levy by 80 cents to $5.20 per head. This is 0.4 per cent of the average slaughter value for prime steer/heifer, 0.7 per cent cull dairy cow, 0.7 per cent of lamb, and 1.1 per cent of mutton over the last three years.

The additional levies will be invested in accelerating four key programmes: the international activation of the Taste Pure Nature origin brand and the Red Meat Story, helping the sector lift its environmental performance and reputation, telling the farmer story better, and strengthening B+LNZ’s capability to address biosecurity risks. . .

Comvita hones focus on biggest growth drivers as it seeks to bolster profits – Tina Morrison:

(BusinessDesk) – Comvita, New Zealand’s largest producer and marketer of honey and bee-related products, is reducing its risk and positioning itself for future growth by honing in on where it can get the most bang for its buck.

The company’s shares are the worst performer on the benchmark index this year after earnings were hurt by two consecutive years of poor honey harvests. Its honey supply business lost $6.2 million in operating profit in its 2018 financial year and $6.6 million in the 2017 year. . . 

Guy Trafford looks at what the future might hold for Lincoln University, and how consumer perceptions might change feedlot operations – Guy Trafford:

Lincoln University staff were called to a briefing on Tuesday this week from Chancellor Steve Smith and Acting Vice Chancellor Professor James McWha on what the future holds for the University.

For several years rumours and stories have been doing the rounds regarding Lincoln not helped by the issues surrounding the recently appointed and then moved-on Vice Chancellors.

The crux of the announcement revolved around the fact that Lincoln had signed a memorandum of understanding with University of Canterbury to form a joint future together. Considerable effort was spent reassuring staff that, whatever the future holds, Lincoln will retain its brand and culture and its autonomy to operate its multidiscipline programmes with their land-based programmes. . . 

Farmers protest California water plan aimed to save salmon :

Hundreds of California farmers rallied at the Capitol on Monday to protest state water officials’ proposal to increase water flows in a major California river, a move state and federal politicians called an overreach of power that would mean less water for farms in the Central Valley.

“If they vote to take our water, this does not end there,” said Republican state Sen. Anthony Cannella. “We will be in court for 100 years.”

Environmentalists and fishermen offered a different take on the other side of the Capitol to a much smaller audience. . . 

 


Rural round-up

April 24, 2018

Precious arable land – Eric Crampton:

I just don’t get the fixation with making sure that nobody builds a house on agricultural land.

The government plans to make it harder for councils to approve new homes and lifestyle blocks on productive land near urban areas.

A report out today, called Our Land 2018, shows New Zealand’s urban sprawl is eating up some of the country’s most versatile land.

It highlights that between 1990 and 2008, 29 percent of new urban areas were built on some of the country’s most versatile land. . . 

We are growing houses instead of food – Feds:

We are losing our most productive land to houses – that’s the most significant point Federated Farmers takes from the ‘Our Land 2018’ report released today.

The Ministry for the Environment report shows the pressure New Zealand agriculture is under from the loss of highly productive and versatile land due to urbanisation.

There was a 10% increase in urban areas from 2002 to 2012 and the loss would be even more now with the pressure on housing in the last few years. . . 

Auckland Council rates policy fails to value private land conservation:

Auckland Council is proposing to remove rates remission for privately owned land protected by QEII covenants.

QEII National Trust CEO Mike Jebson says “we are submitting against Auckland Council’s proposed policy. This policy discourages landowners from protecting natural heritage areas on their properties and fails to support protection of biodiversity on private land in the region.”

“QEII covenants often protect the habitat of threatened indigenous species, and provide corridors linking larger areas of private and public land set aside for conservation. The work landowners do in protecting their land, like excluding stock from the protected area, is critical in encouraging regeneration of native vegetation.” . .

 A2 shifts from a brand to a category, with Nestle and Mengniu now on board – Keith Woodford:

It is only six weeks since mega-sized Fonterra in New Zealand and medium-sized Freedom Foods in Australia announced their intention to produce A2 dairy products, these being products free of A1 beta-casein.  Since then, both Nestle and Mengniu have stepped up to announce that they too are developing brands for A2 infant nutrition products.

To place this in perspective, and as reported by Rabobank, Nestle is easily the largest global dairy company by turnover, followed by Lactalis, Danone, Dairy Farmers of America and then Fonterra. Further down comes Mengniu at number 11 globally, but number 2 in China.

It is now evident that dairy products free of A1 beta-casein are shifting from being a niche brand belonging to The a2 Milk Company (A2M) to becoming a broader dairy category. This was always going to happen, but the speed at which it is now occurring is taking most people by surprise. . . 

Livestock Improvement buys back $5.3M of shares to simplify structure – Tina Morrison:

 (BusinessDesk) – Farmer-owned cooperative Livestock Improvement Corp will buy back $5.3 million of its shares as part of its move to simplify its share structure.

In March the company’s shareholders voted to reclassify all cooperative control shares and investment shares into a single class of ordinary shares. Livestock Improvement said today that a small number of shareholders had elected to exercise their minority buy-out rights under the proposal. . . 

#SustainabilitySunday: A tale of two farms – Uptown Farms:

What you see above is crazy exciting for our family!

These two pictures are from two fields, only separated by an old fence row. The photos were taken about 4 foot apart. 

The farm in the bottom photo has been traditionally managed for north Missouri row crop farms. You see larger and more compacted soil clods, fairly typical of dirt in the area. 

On the farm in the top photo we have been using no-till and cover crop practices for three growing seasons. What you see, and would feel if you were here, is a light and loose soil. It’s full of organic matter without any compaction. (Think of potting soil compared to dirt from your backyard.) 

We have actually added soil to this farm by allowing crop residue and cover crops to decompose and turn to dirt. In only three years, we have changed the soil makeup of our farm.  . . 

Scales hunts for NZ agribusiness acquisitions to fit with apple export business – Tina Morrison:

 (BusinessDesk) – Scales Corp is eyeing potential agribusiness acquisitions that would fit well with its export apple business as the country’s largest apple grower aims to become the foremost investor in and grower of New Zealand agribusiness.

“We think New Zealand agribusinesses are in a good space, they make good products, and sell them to Asia,” chief executive Andy Borland told BusinessDesk. “We have over the years developed our skills around exporting and dealing with Asia, particularly China, and we are looking at businesses within New Zealand that would work with those sort of dynamics and be complementary to our apple business. We are really looking for those sort of New Zealand opportunities.” . . 

Good Idea! Feds Likes NZX Primary Sector Index Concept:

Federated Farmers congratulates the New Zealand Stock Exchange for coming up with the idea of creating a ‘primary sector index’ for investors.

The NZX intends to launch the new primary sector index later this year, where it will sit alongside the existing indices for other sectors such as energy, healthcare and real estate.

The index will include 15 companies, including Fonterra and A2 Milk. . . 

China begins to challenge multinationals in domestic infant formula market, says GlobalData :

CITIC Agri Fund Management, backed by Chinese state-owned CITIC Group, has recently agreed to buy a 25.18% stake in Hong Kong-based Ausnutria Dairy, one of the leading local suppliers of infant formula in the Chinese market. This clearly marks a change in direction for the government, which has hitherto been focusing its efforts on regulation in this sector, says leading data and analytics company GlobalData.

Local suppliers in China are yet to recover from the melamine contamination scandal in 2008, with parents continuing to put their faith in foreign-made milks even after a decade. . . 


Rural round-up

April 17, 2018

Station owner hopes for ‘permanent lake’ after landslide stabilised :

A landslide between Gisborne and Wairoa which caused a large lake to form has been stabilised.

On Monday, Gisborne District Council said strategic management of the slip in Muriwai had stabilised the area, and the previously-closed Paparatu Rd had been reopened.

Last month, Hawke’s Bay Civil Defence manager Ian Macdonald said the landslide, which was likely triggered by a small, localised earthquake, had become a “significant hazard” and people were warned to stay away from it. . . 

Enthusiasm’ wins award for family:

Waipahi sheep farmers Ross, Alexa and Logan Wallace are this year’s Otago Ballance Farm Environment Awards winners.

Their win was announced at a dinner at the Lake Wanaka Centre on Friday night. Judges described the family as a supportive, close family unit with clear vision, great goal-setting and financial discipline.

“They have incredible enthusiasm and a passion to learn — taking on ideas, good use of external advice and analysing data for the best outcomes.

“They have a strong environmental focus; land and environment plan, nutrient budgeting, wetland construction, retention of biodiversity and water quality emphasis, as well as an outstanding commitment to community and industry.” . . 

Ploughing in her blood – Nicole Sharp:

Ploughing is not your ordinary type of sport, but national finalist Tryphena Carter, of Riversdale, is not your ordinary type of lady.

Driving a tractor while towing a conventional plough is not a sport most would think of getting into, but Miss Carter was born to plough.

She is now in full preparation for the New Zealand Ploughing Championships, being held at Thornbury, Southland, this weekend, where she will compete in the Silver Plough class.

She started in the sport aged 15 and these championships will be her eleventh. . . 

Environment award winners delight in swimming in rivers around their Tararua dairy farm – Jill Galloway:

The dairy farmer winners of a farm environment award are proud to be sandwiched between two swimmable rivers in Tararua.

Swimming in them was a source of pleasure after media reaction to dairying’s contribution to poor river quality, said Andrew Hardie and Helen Long.

The pair showed off their dairy operation Te Maunga Farm near Dannevirke to about 70 people at a field day celebrating their performance as supreme winners of the Horizons Ballance Farm Environment Award.

Hardie said it was a robust, sustainable and profitable farm, which enabled them to fence off almost 14 kilometres of riparian strips. . .

First skin-pack cuts dispatched:

Alliance Group has dispatched its first major shipment of product in vacuum skin tray packaging to Hong Kong following a successful trial.

Skin packaging is technology that hermetically seals right to the edge of the meat cut, extending its chilled shelf life for up to 11 weeks, retaining colour and optimising meat tenderness. . . 

 

Chairman and incumbent director returned to Silver Fern Farms Co-Operative Board:

Rob Hewett and Fiona Hancox have been re-elected to the Silver Fern Farms’ Co-operative Limited’s Board of Directors.

The results of the election, which closed at 3.00pm on Monday, 16 February 2018, were: . .

A2 shares rise as new distribution deal opens up South Korean market – Paul McBeth

(BusinessDesk) – A2 Milk Co has signed an exclusive distribution deal with Yuhan Corp in South Korea, more than a decade after an earlier foray into that country which ended in litigation. The milk marketing firm’s shares rose 1.3 percent.

The Auckland-based, Sydney-headquartered company today signed an exclusive sales and distribution agreement with Yuhan to promote and distribute a2 branded products in South Korea, it said in a statement. . . 

a


%d bloggers like this: