Rural round-up

August 21, 2015

Reducing waste to feed the world:

A 2013 Asia-Pacific Economic Cooperation (APEC) agreement to reduce food waste by 10 percent across the region is picking up pace as researchers and technical team members work towards their 2017 goal of developing effective strategies and actions to address urgent global food waste issues.

A third of the edible parts of food produced for human consumption is lost or wasted. That translates into about 1.3 billion ton per year. Lincoln University Associate Professor James Morton says reducing food waste is the logical first step in meeting the needs of a growing world population, which is predicted to reach nine billion by 2050. He recently attended the second of three APEC ‘Multi-Year Project’ meetings focused on addressing global food waste, where he spoke around the need to measure and reduce wastage in the livestock chain. . . 

Democracy, apathy or revolution – Allan Barber:

MIE has to be given credit for its persistence with its campaign to persuade Silver Fern Farms and Alliance to look seriously at the benefits of merging as opposed to continuing to beat their respective heads against the brick wall of competition. But the outcome depends on several planets aligning at the same time.

The present state of flux exists because of the uncertainty surrounding the results of SFF’s capital raising exercise, still to be announced at the time of writing, the outcome of two special general meetings called by a minimum of 5% of the shareholders in the cooperatives, and last but not least, the attitude of the majority of those shareholders.

The latest step in this process is the concept of Newco – the Visionary Meat Cooperative which expands on the Big Red proposal contained originally in MIE’s Pathways to Long-term Sustainability report launched in April. There is more detailed financial analysis in the latest concept plan which implies a net profit of $92.4 million in the fourth year after merger compared with a combined profit of $6.7 million if the companies remain separate. . . 

Revolutionary new trawling method improves quality of catch:

A revolutionary new sustainable trawling method is showing great potential for increasing the value of New Zealand’s fisheries by more than $43 million per year by 2025, industry leaders heard in Wellington today.

The Precision Seafood Harvesting (PSH) technology known as a Modular Harvest System (MHS) is a potential replacement for traditional fishing methods. Using a large flexible PVC liner with specifically sized holes along its length, it allows undersized fish to escape before being brought on board a fishing vessel. In addition, the fish that are brought on board stay in good condition because they are still swimming in the liner when they’re on the deck, resulting in less stress and reduced likelihood of injury. . . 

Seizing the global opportunities for New Zealand seafood:

The growing global demand for environmentally sustainable, natural, healthy food offers great opportunities for the New Zealand seafood industry, Seafood New Zealand Chairman George Clement says.

Speaking at the New Zealand Seafood Industry Conference in Wellington today, Mr Clement referred to the Food and Agriculture Organisation’s (FAO) prediction that global food production will need to increase by 40 per cent by 2030 and seventy per cent by 2050.

Growth in global seafood production (3.2 per cent annually) continues to outpace population growth (1.6 per cent annually), he said. . . 

New Zealand fish stocks performing well:

New Zealand’s fisheries are performing well overall, Dr Pamela Mace, the Principal Advisor Fisheries Science, with the Ministry for Primary Industries said today.

She was providing an update on the status of New Zealand’s marine fisheries at the New Zealand Seafood Industry conference.

“New Zealand’s fisheries are performing extremely well overall, at least as good as or beyond the standard of the best in the world,” she said. . . 

New Role Encourages Home Grown Talent:

Beef + Lamb New Zealand (B+LNZ) Genetics has appointed Dr Phillip Wilcox as its inaugural senior lecturer in quantitative genetics* at the University of Otago.

Dr Wilcox has a background in molecular and quantitative genetics and comes from the forestry-focused Crown Research Institute, Scion, where he was a senior scientist. He was also a part-time senior research fellow with the University of Otago’s Department of Biochemistry, working in the field of human genetics. . . 

Seeka Kiwifruit Industries Six Months to 30 June 2015 [Unaudited]:

Directors and management are pleased to present Seeka’s financial results for the six months to 30 June 2015. It was a challenging six months for the Company with a fire significantly damaging Seeka’s Oakside post-harvest facility just prior to harvest, then having to focus on managing a record 27.7m trays of kiwifruit; the first major lift in production since 2011’s previous high of 27.1m trays.

Profits are up. Profit before tax this half year is ahead of the previous corresponding period (pcp) by $2.87m [+115%] at $5.36m, reflecting record kiwifruit volumes handled by post-harvest along with good earnings achieved by the orchard division. The half year results include an allowance for the full second year cost of the three-year grower share scheme totalling $2.55m. . . .

Ballance Farm Environment Awards good for farmers and good for the industry, say Horizons entrants:

Halcombe dairy farmers George and Ellen Bartlett entered the 2015 Horizons Ballance Farm Environment Awards (BFEA) because they wanted to support their industry and learn more about sustainability.

Winning three category awards in their first time in the competition was a bonus for the Bartletts, who run a 950-cow operation on 526ha north of Feilding.

“We certainly didn’t expect to win anything,” says Ellen, “we entered because we wanted to find out what we were doing right and what things we could improve on in future. We also felt it was important to support the awards because they do such a great job of showcasing the good work being done by farmers.” . . 

Share Farmer Contest Heralds New Era:

The 2016 Share Farmer of the Year competition has big boots to fill – taking over from the highly regarded sharemilker competition.

New Zealand Dairy Industry Awards Executive Chair Gavin Roden says the Share Farmer of the Year is a hybrid of the sharemilker competition, with changes that better position it within the dairy industry’s evolving farm ownership and employment structures.

“We think the changes will make the contest better and enable more people to enter and gain the benefits from entering. . . 

Wanaka lake weed reduced by two thirds:

Lake Wanaka is healthier than it has been in decades, thanks to weed control work led by Land Information New Zealand (LINZ), Minister for Land Information Louise Upston said today.

“In 2005, LINZ and a number of other agencies developed a 10-year strategy to deal with lagarosiphon. A decade on, two-thirds of the lake is clear of the aquatic weed, and LINZ is ready to begin the next phase of control work.

“These results show how LINZ’s collaboration with others is helping protect New Zealand’s iconic landscapes and waterways,” Ms Upston said. . . 


Rural round-up

August 17, 2015

More women working NZ farms – Suzette Howe:

New Zealand is seeing a rise in the number of women working in farming. For years farming has been mainly viewed as a man’s world, but the tide is turning.

Nestled away on a north Canterbury farm, Louisa McClintock is not your average teenage girl. At just 17 she’s fallen in love with farming. She has quit school and is taking up the reins of her granddad’s farm.

“Everyone thought I was going to stay at school till year 13 and do the whole nine yards and go to uni, but I don’t think there’s anything I’d rather be doing; farming is it,” she says. . . 

Getting through the tough times – Andrew Hoggard:

We at least now know where we are with the much anticipated Fonterra forecast payment.  A price of $3.85 per kilo of milk solids is a real shocker.  There’s not going to be many farmers making anything on that payout.

That said, what can realistically be done about helping farmers through the tough times ahead for at least the next few months?

First, there is the no brainer stuff.  Talk to the bank manager.  Talk to advisers.  Put a bit more effort into communication with the family – they will be feeling the pressure as well.  . . 

Water Proposals jeopardise Southland’s farming future

Federated Farmers Southland strongly opposes Environment Southland’s draft ‘Water and Land Plan and are planning meetings to discuss the rural community’s concerns.

President of Federated Farmers Southland, Allan Baird, says “In its current form, the cost to Southland farmers will be crippling and there will be large flow on affects for the wider Southland economy.”

“As proposed, this Plan would severely limit or prohibit development, flexibility, and innovation for farming businesses, which will have huge consequences for Southland’s economy.”

“Farmers want good water quality just like every other Southlander; by progressing the current outcomes based approach that focuses our resources on the priority hot spots. This is consistent with what the Parliamentary Commissioner for the Environment is encouraging in her recent report, but we can’t do that without the flexibility to adapt to the environment and regulatory changes.”    . . .

NZ and Australia likely to trigger milk quota – Allan Barber:

For the first time since 2004 New Zealand and Australian beef exporters look almost certain to run out of US beef quota before the end of the year. High kills in both countries have seen an excess of beef being processed, well ahead of the normal annual production trend.

New Zealand’s annual quota allows shipments of 213,402 tonnes, much of it manufacturing beef for the fast food industry, but also higher value prime beef cuts in the pre Christmas period. If the quota runs out, these cuts will be at risk. The excess production this year is a direct result of the high cow cull because of the downturn in dairy prices. One processor told me the present slaughter rate was four times the normal amount. . . 

Reducing waste to feed the world:

A 2013 Asia-Pacific Economic Cooperation (APEC) agreement to reduce food waste by 10 percent across the region is picking up pace as researchers and technical team members work towards their 2017 goal of developing effective strategies and actions to address urgent global food waste issues.

A third of the edible parts of food produced for human consumption is lost or wasted. That translates into about 1.3 billion ton per year. Lincoln University Associate Professor James Morton says reducing food waste is the logical first step in meeting the needs of a growing world population, which is predicted to reach nine billion by 2050. He recently attended the second of three APEC ‘Multi-Year Project’ meetings focused on addressing global food waste, where he spoke around the need to measure and reduce wastage in the livestock chain. . . 

TPP – it’s time for a breather – Keith Woodford:

The failure to reach closure at the recent TPP negotiations in Hawaii may be a blessing for New Zealand. It may give some time for our negotiators to reflect on what we hope to achieve and what we are prepared to concede.

Most farmers will be supporters of the TPP. They will be working on the apparently reasonable assumption that more free trade has to be good value. . .

Commission releases draft report on 2014/15 review of Fonterra’s base milk price calculation:

The Commerce Commission today released its draft report on Fonterra’s base milk price calculation for the 2014/15 dairy season. The base milk price is the price Fonterra pays to farmers for raw milk and is currently set by Fonterra at $4.40 per kilogram of milk solids for the 2014/15 season.

The Commission is required to review Fonterra’s calculation of the base milk price each year as part of the Dairy Industry Restructuring Act’s (DIRA) milk price monitoring regime. The review assesses whether Fonterra’s approach delivers incentives for it to operate efficiently and provides for contestability in the market for purchasing farmers’ milk.

The Commission’s overall view is that Fonterra’s calculation of the 2014/15 base milk price is largely consistent with both the efficiency and contestability purposes of the DIRA. . . 

 


Rural round-up

August 7, 2015

Rabobank Report: Moving Globally; What role will China play in the global beef market?:

Rabobank sees great potential in China’s beef market, and believes that Chinese investors will play an influential role in the global beef market over the next decade. According to Rabobank’s latest report, Moving Globally: What role will China play in the global beef market?, China’s beef demand will grow an additional 2.2 million tonnes by 2025. Driven by the weak domestic production, but with strong demand, the beef sector will likely become the first agricultural sector where China has high integration with the rest of the world and Chinese investors are expected to play an influential role in the global beef market.

In addition to the volume gap, China’s beef market also demonstrates potential for value-added and branded beef products. Strong demand from the food service and retail market channels provides opportunities for both Chinese and foreign companies in the further processing sector. . .

 

Fonterra’s restructure more about poor strategy than milk price – Allan Barber:

When Fonterra was formed back in 2001, there was a great sense of optimism about the potential for a New Zealand dairy company to compete on a truly global scale. The industry’s infighting and parochialism would be a thing of the past and the clear intention was to use the greater efficiencies and scale to create a substantially better performing business model.

The big question 14 years down the track is whether that objective has even remotely been achieved. Fonterra is the world’s leading exporter of milk products and the fourth largest dairy processor, so achievement to date appears consistent with the objective. But for many observers there was another, more ambitious expectation: to establish an internationally competitive value added business to compare and compete with Nestle and Danone. . .

Dairy sector needs to work together to manage downturn:

National accounting and business advisory firm Crowe Horwath is calling on all stakeholders in the dairy industry to work together to help the sector get through the current difficult period of lower milk solid prices.

On the back of dairy companies announcing a string of forecast milk price downgrades and prices continuing to plunge at the Global Dairy Trade (GDT) auctions, predictions are the current hard times for the dairy sector could potentially last another 18 months to two years.

Crowe Horwath says given the scale of the challenge now being faced by the industry, doing nothing is not an option for anyone involved, including farmers, banks, farm consultants and business advisors. . .

 

Fish & Game Calls for Fonterra to Lift Its Game After Pollution Conviction:

Fish & Game says Fonterra needs to lift its game after the dairy giant was fined $174,000 for several pollution offences under the Resource Management Act.

The Bay of Plenty Regional Council prosecuted Fonterra for polluting the and other waterways after several wastewater system failures at Fonterra’s Edgecumbe dairy plant.

The offences occurred several times between September 2014 and April 2015.

Fonterra pleaded guilty to six charges and was sentenced in the Tauranga District Court by Judge Smith. . .

 

I’m worried! I’m sympathising with organic farmers over a land use conflict! – Jim Rose:

Writing this blog of sound mind and sober disposition, I still have considerable sympathy with two organic farmers over a land use conflict they have with the neighbouring gun range.

Local land use regulations allows a gun club to set up 600 m away with competitive shooting days all day for 88 days a year. That is a voluntary self restraint. They could hold shooting competitions every day of the year. The local land use regulations allow the use of guns on rural land. The gun club used this absence of a prohibition on the use of guns in the frequency of use to set up a gun range to fire guns all day long on rural land. . . .

Market Continues to Show Strength:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that a continuing upward trend at today’s South Island wool sale saw prices increase.

The weighted indicator for the main trading currencies decreased from 0.6314 to 0.6181, down 2.1 percent. The US dollar rate was down to .6520 from .6670 which meant increased prices in NZC terms.

Of the 5,564 bales on offer 5,260 sold, a clearance of 95 percent. . .

 

Matariki Forestry Group announces recapitalisation:

Matariki Forestry Group (“Matariki”) today announced a NZ$242 million capital infusion from Rayonier Inc., its largest shareholder. This injection of capital will be used for the repayment of all outstanding amounts under its existing NZ$235 million credit facility and for general corporate purposes.

Upon completion of this capital infusion, Rayonier’s ownership in Matariki will increase from 65% to approximately 77% and the Phaunos Timber Fund ownership will be reduced from 35% to approximately 23%. The capital infusion is subject to certain closing conditions including New Zealand Overseas Investment Office approval and is expected to close by year end. Matariki will realise interest cost savings of approximately NZ$15 million annually as a result of the recapitalisation. . .

 

NZARN says strategic feed approach key to farmer viability:

Nutrition experts have entered the milk price payout debate saying that a strategic approach and optimising home grown and supplementary feed resources are key to long-term viability.

The New Zealand Association of Ruminant Nutritionists (NZARN) urges farmers, in an article published on their website (www.nzarn.org.nz) to benchmark themselves against the best performing farms to identify areas for improvement.

Dr. Julian Waters, NZARN Chairman says, “Maximising utilisation of home grown resources such as pasture, silage and crops should be the basis for a profitable business, with a sound strategy to incorporate supplements to increase efficiencies when home grown feed is limited.” . . .

 Internet Provider Puts Farmers’ Wellbeing First:

New Zealand internet provider, Wireless Nation, further demonstrates its commitment to the rural sector in a new agreement with Farmstrong, an initiative to promote wellbeing for all farmers and growers across New Zealand.

Wireless Nation’s zero-rated data agreement means that its Satellite Broadband customers can access Farmstrong’s website without the data counting towards their data cap.

Wireless Nation’s technical director, Tom Linn says he is passionate about making internet connectivity easier for people living in rural areas. . .

New Forests agrees to purchase Marlborough timber plantations from Flight Group:

New Forests today announced that it has reached agreement to purchase approximately 4,200 hectares of freehold land and softwood plantations from the Flight Group. The plantations consist of radiata pine and are located in the Marlborough region of New Zealand’s South Island.

The agreement forms part of a larger transaction by Flight Group, including the purchase of the Flight Timbers sawmilling assets by Timberlink, an Australian timber products processor that is also an investee company of New Forests. Completion of the plantation purchase by New Forests is subject to approval by the Overseas Investment Office. . .

 


Rural round-up

July 23, 2015

Potential for dairy farmers to increase income from calves:

In a welcome departure from dismal news on the dairy front, farmers are being told that a simple change to their herd mating plans could increase their income from calves.

The advice is one outcome from the Beef + Lamb New Zealand Dairy Beef Integration Programme which is looking at the impact of using good beef genetics in a dairy beef supply chain.

The aim of the AgResearch managed research is to confirm the impact the strategy could have for dairy farmers and others in the supply chain. Early results show clear advantage – and potential additional profit – to dairy farmers from the use of proven beef genetics. . .

 Tiny mite a buzzkill for NZ’s wasps: – Nick Butcher:

A Landcare Research scientist says a tiny mite found on the back of wasps could be helping control the spread of the pests, which sting the country’s primary industries by about $130 million a year.

Wasps also pose a hazard to people and harm the native bird population by competing with them for food, including honeydew and other insects.

Dr Bob Brown discovered the unnamed mite in 2011. He said his studies showed wasp nests infested with the mites were 50 to 70 percent smaller than uninfested nests. . .

Efforts continue to get to the bottom of NAIT puzzle – Allan Barber:

The saga continues, as my Warkworth friend attempts to find out how NAIT intends to ensure correct reconciliation of livestock records, but as yet without a totally satisfactory answer. After further contact, NAIT’s acting Group Manager Sam McIvor replied with answers to the main points raised and I understand the conversation will continue, as both parties try to convince the other of their respective point of view.

At its most basic, the debate centres round the issue of ensuring 100% accuracy which is only possible, if there is 100% retention of tags at the time of stock movement or every animal has a second or reserve tag. At present NAIT estimates there is 98% retention. My friend who came through the mad cow disease disaster as well as FMD outbreaks in the UK is adamant the only acceptable position is 100% accuracy in the event of a disease outbreak. . .

Duncan Coull New Shareholders’ Council Chairman:

Duncan Coull has been elected unopposed to the position of Chairman of the Fonterra Shareholders’ Council.

Mr Coull was first elected to the Council in 2010 to represent Fonterra Farmers in Otorohanga and served as the Council’s Deputy Chair for the past 12 months.

Mr Coull: “It is a privilege to be elected to lead the Council and I thank Councillors for the support I continue to receive. . .

 New Zealand Kiwifruit Growers Incorporated Annual General Meeting:

New Zealand Kiwifruit Growers Incorporated (NZKGI) held its Annual General Meeting today, Wednesday 22 July 2015, updating growers on its key projects and reflected on a successful year.

NZKGI President, Neil Trebilco, says grower confidence and orchard values have continued to increase over the last twelve months.

“The main factors in this increasing optimism are the reduced effects of Psa and increasing OGRs per tray, particularly for Green. . .

 

Dairy farm prices stalling, lifestyle blocks strong, REINZ data shows – Fiona Rotherham:

(BusinessDesk) – Farm sales are down 9 per cent in the year to June and dairy farm prices have begun a slight downward trend, according to the latest Real Estate Institute of New Zealand data.

There were 62, or 11.5 percent, fewer farm sales for the three months ended June, compared to the same period a year ago and the overall year to date is down 9 percent to a total of 1,737 farms sold.

The median price per hectare for all farms sold in the three months to June was $29,141, compared to $26,634 in the same period the previous year, up 9.5 percent. But the All Farm Price Index, which adjusts for differences in farm size, location and farming type, rose by just under 1 percent in June compared to the same month in 2014. . . .

Expert’s visit fruition of relationship cultivation:

Feijoas and Kiwifruit have been on the menu as Lincoln hosted a plant specialist recently to initiate closer working ties around food production with a Chinese province of 90 million people.

Feijoa expert Dr Meng Zhang, of Southwest University of Science and Technology (SWUST) in Sichuan Province, spent a month with Lincoln University and the Bio-Protection Research Centre (BPRC) at Lincoln specifically to learn more about New Zealand horticulture production systems, biological protection and bio-control.

The visit comes a few months after SWUST’s President, Jun-bo Wang, and Director Guan-zhi Zhang, were in Lincoln as part of a large Sichuan trade delegation intended to further extend co-operation between the two institutes. . .

 

Weaker New Zealand Dollar Helps Wool Prices:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that the weakening New Zealand dollar helped local prices this week with most types increasing by the corresponding currency change.

The weighted indicator for the main trading currencies was down 2.04 percent compared to the last sale on 9th July.

Of the 7,900 bales on offer from the South Island, 88 percent sold with types suitable for in the grease shipments coming under strong competition. . .

New production quality accreditation for animal feed:

New Zealand animal feed manufacturers now have a quality of production accreditation.

FeedSafeNZ is a new accreditation available to New Zealand Feed Manufacturers Association (NZFMA) members who pass independent audit standards as to quality of feed production. The FeedSafeNZ accreditation has two main aims: to provide safe feed for animals and thereby to protect the safety of human food.

Michael Brooks, NZFMA Executive Director says, “High quality feed is vital not only for the health and wellbeing of animals but also for humans, so it’s imperative that feed is manufactured to strict guidelines and is packed and stored correctly to ensure its quality is maintained. . .

 


Merger not answer for meat

July 6, 2015

A possible merger between Alliance Group and Silver Fern Farms is still on the agenda of some in the meat industry.

Disgruntled Alliance Group shareholders say they hope to have the support from 5 percent of their number within the next 10 days that’s required to force a special meeting to discuss the potential benefits and risks of a merger with Silver Fern Farms.

Last week Silver Fern Farms shareholders crossed the 5 percent threshold to force a special meeting of their meat cooperative to vote on seeking a full analysis of the benefits and risks of merging with Alliance, along with a comprehensive risk mitigation plan, verified by an independent firm. . .

Allan Barber explains why merger’s  not going to happen:

Silver Fern Farms have been forced to take what CEO Dean Hamilton calls a prudent approach to livestock procurement. This is code for being hard up against the company’s banking facility, directly as a result of greater livestock availability. A longer season in the North Island and pressure from drought in North Canterbury are responsible for this situation.

An in-house message to livestock buyers explains the company’s inability to handle all its potential livestock bookings and says it may be necessary to assist some suppliers in finding alternative slaughter capacity. . .

Clearly SFF has taken the sensible step of implementing seasonal closures at some large plants, such as Paeroa in the Waikato and Fairton in the South Island. Unfortunately the pursuit of cost savings has clashed with the longer than expected flow of livestock, but it would be financially unsustainable if not impossible to reopen these plants.

The other major factor is the state of the export market which is scarcely conducive to killing and processing more product than absolutely necessary at this time of year. As Hamilton told me, there is no point in filling up the chillers and freezers when the market is as soft as it is at the moment. He could well have added that the company’s bankers wouldn’t have allowed it anyway.

The internal communication to the buyers makes it plain SFF must live within its means which hasn’t been the case for the last three or four years. The hope is expressed that this will create more flexibility next season. However the $1.3 billion spent on livestock so far this year is greater than last year which indicates the company has yet again failed to live within its means.

Three years ago SFF suffered because it failed to meet the market which resulted in too much inventory having to be written down, causing substantial losses over two financial years.

SFF is suffering the ultimate meat industry conundrum: how to run all its plants at optimum capacity when its bankers impose facility limits which render this difficult or downright impossible in prevailing market conditions; another dimension of the conundrum is the conflict between satisfying supplier demand for slaughter space and the inability to turn this into cash.

Barber gives some history – this is what happened in the 1990s when Fortex and Weddel went into receivership.

SFF is faced with a similar set of problems which can only be resolved by a capital restructure. The shareholder group’s attempts to force a review of the potential for a merger with Alliance are doomed to fail, because the state of the balance sheet and bank constraints make a merger impossible. There are also rumours about the closure of SFF’s overseas offices. . .

It appears the result of the equity raising process carried out by Goldman Sachs will finally be available for communication to shareholders in August. Unless the shareholders can come up with a minimum of $100 million, and even this may not be enough, they will have no entitlement to influence the company’s future. There may be no alternative to bringing in outside capital to recapitalise all or part of the business. . .

The grapevine suggests several scenarios for the future of SFF none of which is a merger with Alliance.

Those wanting that to happen don’t understand directors’ legal responsibilities to work in the best interests of the company, which would rule a merger out.


Rural round-up

June 16, 2015

Federated Farmers water team ‘Reclaiming choice’:

Federated Farmers has launched its very own ‘Water Team’ in response to the growing challenges farmers face in securing a profitable and sustainable future. The Federation hopes to empower the provinces to negotiate their need for the natural resource which is threatened by the lack of choices and missed opportunities through ‘false dichotomies’.

Dr William Rolleston, Federated Farmers President, says “When we deny ourselves choices of how much risk we want to take we are limiting ourselves and our ability to move forward. Our challenge is to ensure regulators, politicians and the judiciary make decisions which are in line with the science, which reflect the uncertainty of the time but are not paralysed by it.

“That’s why Federated Farmers has been developing its very own specialist water team as well as science and innovation teams to help develop our policies and inform public debate.” . . .

 

Agribusiness Agenda poses challenges – Allan Barber:

KPMG’s Agribusiness Agenda for 2015 is a comprehensive analysis of the challenges faced by New Zealand agriculture in meeting the government’s target of doubling exports by 2025. In the light of dramatically falling dairy prices with little sign of recovery, what was always a big ask has suddenly become a whole lot harder.

The Agenda was prepared following a series of Roundtable discussions with a number of leading agricultural personalities from which the views of the participants have been distilled into a number of conclusions. The key finding is that there is a compelling need to add value to our agricultural output which the report admits is pretty obvious and easier to say than do. . .

Bay sheep make the news in New York – Patrick O’Sullivan:

A photo of a Hawke’s Bay flock of sheep has featured in New York Times Magazine.

It was taken by photographer and book publisher Grant Sheehan for a soon-to-be-released book on a sheep station west of Hastings, Kereru Station – Two Sisters’ Legacy.

The New York Times Magazine story was on Dronestagram, a website featuring aerial drone photography, where Mr Sheehan’s photo was featured.

Mr Sheehan, who grew up on a farm near Nelson, said sheep were very difficult to photograph. . .

Spring Sheep Dairy Takes First Step:

Spring Sheep Dairy has taken its first step, with joint venture owners Landcorp Farming Limited and SLC Group agreeing on the focus for its consumer-led marketing business.

Spring Sheep Dairy Chief Executive and Director Scottie Chapman says SSD’s long term goal is to export high value high quality sheep milk products to Asian consumers.

“We’re still to milk our first sheep so obviously there’s a long way to go and we will take a very careful and considered approach, but we are very excited about the potential opportunities this joint venture offers,” Mr Chapman says. . .

 

Auckland Signs Up For Farm Environment Competition:

Farmers in the Auckland region can now enter the prestigious Ballance Farm Environment Awards.

Awards-facilitator, the New Zealand Farm Environment (NZFE) Trust, has formed a partnership with Auckland Council to bring the highly successful competition to Auckland. The agreement means Auckland farmers and horticulturists are eligible to enter the 2016 Awards.

NZFE chair Simon Saunders says the trust is delighted to deliver the Ballance Farm Environment Awards to the region. . .

Partnership puts spotlight on dairy feed efficiency:

Feed supplier GrainCorp Feeds has teamed up with independent research and technical specialists Dairy Club to help New Zealand dairy farmers using supplementary feed to achieve maximum profit this season.

Farmers working with GrainCorp Feeds will have access to Dairy Club’s online milk prediction tool, Tracker™, which measures current milk production and shows how they can achieve maximum gain.

Dairy Club research shows that about $200,000 of efficiency and productivity gains for the average farm can be achieved using Tracker™, which is the equivalent to adding over $1.50 to the milk price. . .

 

Elders Primary Wool announce name change to CP Wool:

Elders Primary Wool has today announced they will change their brand name to CP Wool from September 2015. The brand name change follows the 50 per cent acquisition of the Elders New Zealand business by South Island based Carr Group.

The business will be identified as CP Wool in the market and will be underpinned by Carrfields Primary Wool, a play on the Carr Group transition to Carrfields which will roll out from July 2015. Primary Wool Cooperative, the other 50 per cent shareholder in the Elders Primary Wool business is represented by the Primary Wool reference. . .


Rural round-up

May 28, 2015

Surveyor believes in power of cooperative model, but says it’s up to farmers – Allan Barber:

Four months into his new job as CEO of Alliance, David Surveyor is really loving the challenge of heading a global business which is so crucial to farmers, consumers and New Zealand as a whole. He has always been interested in the agrifood space, as he terms it, and enjoys getting to know New Zealand through its agricultural producers.

In contrast with his previous roles in steel and building materials, the biggest difference in the meat industry is the question of livestock supply with so many factors outside the company’s control. Variable climatic conditions and land use change are just two of the main ones. At Alliance its cooperative status demands a lot of time seeing things from the supplier perspective which is not such a major factor in manufacturing industries, while all meat companies need to spend more time focused on the market. . .

Positive Signs Ahead as Farmers Look to Put Season Behind Them:

Fonterra Shareholders’ Council Chairman, Ian Brown said Farmers will be cautiously optimistic following today’s announcement by Fonterra of an opening forecast Milk Price for the 2015/16 season of $5.25 per kg/MS, including an opening advance rate of $3.66 per kg/MS.

Mr Brown: “Farmers will view next season’s forecast as a positive given the situation we have experienced this past season.

“They will also see the announcement as a signal from their Board that the market should start to move in a positive direction in the near future, which is welcome news. . .

Fonterra Announces Board Change:

Fonterra Co-operative Group Limited today announced that Sir Ralph Norris has indicated he will not seek to continue his term on the Fonterra Board, following the Co-operative’s Annual Meeting on 25 November 2015.

Sir Ralph joined the Board in May 2012 as an Independent Director, and made this decision because of his other commitments.

Sir Ralph is also resigning from the Board of the Manager of the Fonterra Shareholders’ Fund, from 25 November 2015. . . 

Funding bost for Irrigation Acceleration Fund:

Irrigation projects will receive a kick-start of $25 million in operating funding for five years from 2016/17 through the Irrigation Acceleration Fund (IAF), Primary Industries Minister Nathan Guy has announced today.

“This funding will help to complete the investigation and development of new regional scale irrigation proposals,” says Mr Guy.

“The need for more water storage projects is obvious given that nearly every part of the country has suffered through drought at some stage over the past three years.

“Providing a reliable water supply for farmers and growers has massive potential to boost growth, creating jobs and exports in provincial regions.” . . .

New Zealand National Party's photo.

Call for more water storage heard by Government – more funding allocated:

IrrigationNZ today welcomed the post budget announcement by Primary Industries Minister, Nathan Guy, of a $25 million allocation of new funding to the Irrigation Acceleration Fund.

“This will boost the development stages of water storage and irrigation distribution infrastructure, which is desperately needed in our summer dry east coast regions. Reliable water supply will sustain communities and maintain the environmental health of their rivers,” says Nicky Hyslop, IrrigationNZ Chair.

“With additional IAF funds contributing to the early stages of this infrastructure development, it will be essential that RMA process reforms that empower collaboration also occur so that the funds do not go to waste,” says Mrs Hyslop. . .

Choice of chair underlines importance of forest safety:

A safety council has been set-up, chaired by Dame Alison Paterson, to make forests safer places to work. Establishing the council was a key recommendation of the Independent Forestry Safety Review Panel that reviewed forest safety in 2014.

The Forest Industry Safety Council (FISC) was launched tonight at a function at parliament. Its board includes representatives of forest owners, contractors, workers, unions and Worksafe New Zealand. Funding will come from the Forest Grower Levy and from government – ACC and Worksafe. . .

Kanuka right at home on winning farm – Kate Taylor:

Kanuka is very much part of our landscape, says Simon Beamish, who with wife Josi was named the 2015 Pan Pac Hawke’s Bay Farm Forester of the Year in April.

They farm alongside the Ngaruroro River that slices between the Kaweka and Ruahine ranges in Hawke’s Bay, west of Hastings, with the farm rising to 690 metres above sea level.

Their 1121ha Awapai and 992ha Waitata properties have been owned by the Beamish family for almost 130 years. They were both part of the original Whanawhana block leased and then freeholded by Simon’s great great grandfather Nathaniel Beamish in 1886. Nathaniel’s son George was sent up to manage the block of land at the young age of 18. . .

Cervena venison piloted in Europe:

New Zealand venison exporters have started a trial to test the appetite of European consumers for Cervena venison in the summer grilling season.

The trial, which began in April, is part of the Passion2Profit initiative that was formally launched today at the Deer Industry Conference in Napier. P2P is a joint venture between the deer industry and the Ministry for Primary Industries (MPI) under the Primary Growth Partnership programme.

“We are really excited that this pilot is underway. Launching Cervena in Europe has been talked about in the deer industry for many years, but it needs careful branding and substantial promotional support to make it a sales success,” says DINZ venison manager Innes Moffat. . .

Horticulture’s future may lay with city slickers:

Increasing urbanisation means more support for initiatives like the ‘NZ Young Horticulturist of the Year 2015 Competition’ is needed to encourage fresh talent into primary industries, like horticulture, to sustain this country’s edge as a top quality food producer.

The horticultural industry has a bright future and is fundamentally important to New Zealand’s economy, but the fact that more than 85 per cent of kids under 15* now live in urban areas is prompting some of the country’s top companies to throw their weight behind career awareness and development initiatives in the sector. . .

Rural Connectivity Symposium 2015 gets underway today:

After months of planning TUANZ and RHAANZ are delighted to announce that the Rural Connectivity Symposium kicks off in Wellington today.

“The event has sold out with over 150 people attending. The Symposium will be opened by the Communications Minister, The Hon. Amy Adams and has been well supported by sponsors across the health and ICT spectrum” said Craig Young, CEO of TUANZ.

“Rural satellite service provider, Wireless Nation, is the premier sponsor for our one-day event, which is a mixture of presentations and workshops.” . .

New dairy mineral blend ticks all the boxes:

As mineral deficiencies continue to cost dairy farmers time, money, livestock and lost production, a unique new mineral blend is offering a comprehensive, cost-effective solution.

Developed specifically for New Zealand dairying by BEC Feed Solutions, Main Stay Macro Minerals, delivers key nutritional minerals in a convenient, palatable, accurate and dust-free blend. And, because it incorporates the revolutionary Bolifor Mag 33 and MGP+ Magnesium products, farmers won’t have to worry about pasture dusting again, consequently saving valuable time and labour costs. . .


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