Rural round-up

February 20, 2015

Wishing all Chinese people a happy Year of the Sheep, flourishing business, well-being, good luck and prosperity

Sheep milk conference hopes to boost interest:

Sheep’s milk yoghurt and ice-cream will be on the menu at a conference today, which aims to expand and develop interest in the sheep dairying industry.

The Ewe Milk Products and Sheep Dairying conference will be held over the next two days in Palmerston North.

Massey University business school associate professor, Craig Prichard, said the industry had struggled to establish itself as a viable alternative to traditional but there was growing potential as interest in sheep dairy products increased. . .

Come on John, give them a break!:

The last time I dared to question MIE’s desired reform of the meat industry, John McCarthy accused me of bias and warned me to watch out, if we are unlucky enough to run into each other. So this column will almost certainly result in another attack on my character and more threats to my personal safety!

But after reading his Pulpit diatribe (Farmers Weekly 26 January), I can’t resist the chance to express surprise at some of the logic expressed there. He clearly believes the two cooperatives, SFF and Alliance, are guilty of driving the market for sheepmeat down to the bottom solely because of their incompetence. The only way he says this will change is to vote more MIE endorsed candidates onto the boards.

McCarthy accuses media commentators and company executives of myopia in their industry predictions last year which have now turned out to be too optimistic. Climatic and political circumstances have changed considerably since those forecasts were made which largely explains the downward trend. Possibly we should all have forecast the closing of the Russian market to other Western exporters, the slowdown in China, deflation in the EU, port clearance delays in the USA and the drought in much of this country. But when those forecasts were made, none of these factors were as clear as they are in hindsight. . .

Otago field days focus on farm effluent management:

DairyNZ ENVIROREADY field days starting next week will bring farmers up to speed with good practice effluent management, and provide tools and information to help them meet Otago Regional Council environmental regulations.

DairyNZ water quality specialist Shirley Hayward says the events are about helping farmers feel confident in their knowledge of how they can meet council regulations.

“With the more stringent effluent and discharge rules now in place, this will help everyone understand what they need to do to ensure they comply. There is something for everyone, staff, managers and owners alike as there is a practical hands-on component as well as discussion around infrastructure decisions and investment,” says Shirley. . .

 

SFF ownership ‘important’ – Sally Rae:

An appeal has been made to Silver Fern Farms to ”not sell the goose that has the potential to lay the golden eggs”.

Speaking at the co-operative’s annual meeting in Dunedin yesterday, Meat Industry Excellence member Mark Patterson said farmer ownership of the value chain would be ”incredibly important” and the company’s proposed capital raising had the potential to dilute that. . .

Why are we so afraid of the fruit fly? :

* What is Bactrocera tryoni or the Queensland fruit fly?

A native of Australia, it is one of the most destructive of the 4500 fruit flies in the world. It is fond of fleshy fruits such as avocado, citrus, tomato, guava, feijoa, grape, peppers, persimmon, pipfruit, berryfruit and stonefruit. 

It does not breed continuously but passes the winter in the adult stage. The total life cycle requires two to three weeks in summer and up to two months in autumn. Adult females live many months and four or five overlapping generations may develop annually. 

* Why is the fruit fly so dangerous?

Hard and expensive to control, fruit flies are commonly known as the “foot and mouth” of the horticultural industry. Once established, they are hard to eradicate. . .


Rural round-up

February 13, 2015

Sheep and beef farmer environment champions:

Seventy sheep and beef farmers from around the country are gathering in Wellington this week to equip themselves with the skills and knowledge they need to negotiate sustainable land and water management regulations in their own regions.

Beef + Lamb New Zealand has facilitated the conference given the growing need for sheep and beef farmers to be represented on their local catchment groups and working with their Regional Councils to ensure sheep and beef farmers’ voices are heard as decisions on farming within limits are developed.

Beef + Lamb New Zealand Chief Executive, Dr Scott Champion said the group of farmers who are attending the two day workshop have put their hands up to say they want to learn everything they can about being involved in environmental decisions in their own regions. . .

 NZ orange roughy exports accelerate as fish stocks improve – Tina Morrison:

 (BusinessDesk) – New Zealand orange roughy exports are accelerating as catch limits of the deepwater fish, once a poster child for bad fisheries management, increase amid confidence about improving stocks.

Exports of the slow-growing fish, which can live for up to 130 years, rose 6.9 percent to a three-year high of $36.5 million last year, according to Statistics NZ data. That compares with a high of $170.2 million in 1988 when the fishery was at its peak, and a low of $29 million in 2012 when catch limits were cut back. . .

Just how far can Overseer be trusted? –  Doug Edmeades:

Assuming that only matters of great importance to the nation get discussed in Parliament, Overseer is now a national issue.

Hansard records show that on November 26 and again on December 2, 2014, questions were raised in the House of Representatives about the use of Overseer.

Specifically, concerns were raised about Overseer’s fitness for purpose and in particular its use for setting nutrient limits and compliance monitoring in regional council plans.

I will assume that all farmers, except those sent loco by the summer heat, know that the Overseer to which I refer, is not the boss-person. I’m talking about Overseer, the nutrient budgeting tool being promoted by its owners and regional councils to improve nutrient management and in particular to managing nitrate N losses. . .

Conditions not structures cause of red meat price drop – Allan Barber:

The pre Christmas surge of optimism, boosted by high beef and sheepmeat prices when export volumes were low, has largely disappeared. The impact of the drought in the lower North and South Islands has seen slaughter numbers increase dramatically at the same time as a series of negative events have reared their head in world markets.

Unfortunately nobody foresaw such an adverse combination of events coinciding at the same time, although our weakening dollar made a positive difference. Drought always pushes stock prices down because available processing capacity, even in these times of excess capacity, can’t handle the livestock numbers farmers need to get off their farms; overseas customers know they are in the driving seat and, naturally enough, pay no more than they must. . .

Environmental advisor turning farmer:

Q&A with 29-year-old James Hoban, who is in the process of moving across to farming after six years at Environment Canterbury.

Former ECan land manager advisor James Hoban is working towards a career in sheep farming. His key environmental insight for fellow farmers is around completing a farm environment plan. He says 90 per cent of what is covered is generally recording what farmers are already doing.

While most of his family’s 227ha property at Culverden is currently leased for dairy support, James has his eye on a farming career in the medium term and is consulting in the meantime. He left ECan in June and has been kept busy advising farmers in the environmental space ever since. James is a member of the B+LNZ Northern South Island farmer council and is also heavily involved in the “Dryland farmers group”, which is approaching ECan for a plan change regarding the controversial Hurunui/Waiau water zone. . .

DairyNZ addresses price dip, drought:

DairyNZ has launched a campaign to help dairy farmers survive a tough season bought on by a low milk price and now drought.

More than 70 farmers from around 30 farms nationwide have agreed to share their information and host events as part of the Tactics for Tight Times campaign. The campaign is designed to help farmers survive the current season and build their resilience for the future.

DairyNZ chief executive Tim Mackle says the fact the Minister for Primary Industries has declared drought conditions on the east coast of the South Island as a medium-scale adverse event, has highlighted the critical need for extra support for farmers. . .

Ban and fine for animal neglect:

Two lifestyle farmers in the Tararua District have been banned from owning or managing livestock for two years after being convicted of animal neglect.

Gavin Matthews and Wendy Francis Hayward of Pahiatua admitted a charge under the Animal Welfare Act, stemming from a complaint in 2012, about the poor condition of cows on a Pongaroa grazing block managed by the pair.

As well as the ban, they have been fined a total of $8,500. . .

Wallace Corp backs Ligar to commercialise novel polymer products – Fiona Rotherham:

 (BusinessDesk) – Ligar, a startup developing molecularly imprinted polymers (MIPs), has secured an investment of hundreds of thousands of dollars from Wallace Corp, operator of New Zealand’s largest animal products rendering facility, to fund a range of industrial trials that could see it commercialise some products this year.

Ligar is developing molecularly imprinted polymers (MIPs) for purification and extraction that solve a growing need for many industries to extract both valuable and unwanted substances, such as consumable liquids, dissolved minerals, water or ingredients used in manufacturing.

It has already used its specially-designed molecules to remove agri-chemicals and smoke taint from wine and is now investigating food and beverage purification and metal extraction. . .

Cheese, Yoghurt & Butter Unite for Battle of NZ’s Best:

The battle to find New Zealand’s best cheese is set to be fierce with over 400 entries, three new cheese companies, a new cheese type, new international judges and the exciting addition of yoghurt and butter categories.

Now in its twelfth year, the New Zealand Champions of Cheese Awards bring the country’s finest specialty cheese under one roof, in the hope of winning one of 23 champion titles.

This year is a stand out in award history with the new addition of yoghurt and butter categories, acknowledging the importance of these dairy products alongside cheese in retail chillers.

The future of New Zealand cheese making will also be recognised with the first Primary ITO ‘Aspiring Cheesemaker’ Award. . .

Wool Firms:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that the combined North and South Island auction offering 14,000 bales saw a generally strong market with 96 percent clearance.

The weighted indicator for the main trading currencies lifted 0.43 percent compared to the last sale on 4th February having minimal impact on the market.

Mr Dawson advises that steady sales and quick shipment requirements are continuing to keep pressure on local price levels. . .

 

CRV Ambreed appoints new senior managers:

Leading herd management company CRV Ambreed is continuing to grow its capacity to support New Zealand dairy farmers with two key appointments to its senior management team.

Mathew Macfie and Andrew Singers have been appointed as sales and marketing manager and information management and information technology manager respectively.

CRV Ambreed managing director Angus Haslett said the additions to its senior management team will help the company continue to offer leading herd improvement solutions in New Zealand. . .

 

 

 


Rural round-up

February 10, 2015

Watt family all pulling together – Sally Rae:

They say many hands make light work.

At Waitaki Orchard, near Kurow, there are many hands, although the workload is not always light, particularly over the busy harvest season.

But the remarkable Watt family, who own and run the summerfruit operation, take it all in their stride.

Justin and Julie Watt, along with their eight children, aged between 9 and 20, do not consider themselves anything out of the ordinary.

But their story is anything but ordinary as the close-knit family work together and the children step up to take on more responsibility, due to their parents’ serious health issues. . .

Challenge for A&P Shows to satisfy demands of new public – Allan Barber:

The 148th Warkworth A&P Show was held on the Saturday of Auckland Anniversary Weekend on a very warm day with no fear of rain which at least alleviated the committee’s first concern. In the north at least feed is still plentiful, although rain would be welcome, but there is as yet no major worry of drought; so we were able to plan the event and welcome the weather forecast without a guilty conscience.

Two years ago there were rather more serious concerns the Show wouldn’t reach its 150th anniversary, but a few things have happened since then which have pushed this undesirable outcome into the background. . .

– Allan Barber:

Ever since the Korean War over sixty years ago the price of wool has been in decline with a few upturns along the way. Over the period the fortunes of wool growers have suffered from massive lifestyle changes leading to reduced demand for woollen textiles and fibres and the rise of synthetics with properties capable of imitating, if not matching, those of wool at a lower price. Wool is not the only natural fibre to be affected, with cotton being hit even harder.

There are a remarkable number of parallels between the red meat and wool industries in the reactions to the situation which is not surprising given the respective price trends and the fact many of the farmers are the same individuals. Sheep and beef farmers’ opinions of the deficiencies of the meat industry are virtually identical to those of the wool trade, while proposed solutions are also remarkably similar. . .

Smoke-tainted grapes could be an issue:

The fire which burned through almost 600 hectares of forest and farmland in Marlborough in the past week could be costly for some grape growers as well.

Vineyards in the vicinity of the fire which burned over five days in the Onamalutu Valley near Renwick, may now have a problem on their hands with smoke-tainted grapes.

Wine Marlborough’s general manager Marcus Pickens said they did not know yet how many vineyards may have been affected by smoke from the fire, on the edge of one of Marlborough’s main wine producing areas.

But they were acting on advice from the Australian wine industry and its experience in dealing with the impact of bush fires on grape production. . . .

Minister welcomes launch of Safer Farms:

Workplace Relations and Safety Minister Michael Woodhouse today welcomed the launch of the government’s Safer Farms programme.

Safer Farms is a multi-year programme designed by farmers and the wider agricultural sector, WorkSafe New Zealand and the Accident Compensation Corporation (ACC).

“The death and injury rate behind the farm gate is simply unacceptable. Someone is killed nearly every fortnight – this needs to change,” Mr Woodhouse says.

“Safer Farms is a new way of tackling a long standing problem hurting rural New Zealand. It’s about education, awareness and support for rural communities.” . . .

Sharing a passion for smart farming – Diane Bishop:

All eyes will soon be on Brian and Kristine Russell’s deer farming operation.

The large-scale deer farmers are the new Southland deer focus farmers. Their first field day will be held later this month, with Browns farmer Dave Lawrence as facilitator.

“We wanted a farmer with the right attitude and who is prepared to change. Brian is extremely positive and extremely passionate about the deer industry,” Lawrence said.

The Russells farm almost 10,000 stock units on two properties totalling 2165 hectares in central and northern Southland.

The 845ha Dipton West block, where the couple live with their three children, is used mainly for finishing, while the 1320ha Kowhai hill block, 20 kilometres away, is primarily used for breeding. . . 

 Attention to deer health can boost farm profits:

Deer farmers are being encouraged to have a close look at their animal health as part of the Passion2Profit initiative.

P2P aims to improve deer farm profits by developing new high-value markets for venison and removing barriers to performance on the farm. The initiative, which has just won funding support from the government’s Primary Growth Partnership, already has several activities underway.

“Animal health, feeding and genetics are the three big areas where farmers can influence the profits they make from deer,” says Deer Industry NZ chief executive Dan Coup. . . 


Rural round-up

January 5, 2015

Is raw milk safe? Some pasteurisation facts. Why I won’t well Raw milk & what to look for in a raw milk supplier – Milking on the Moove:

Tragically a child in Australia has died as a result of drinking contaminated raw milk.

So the raw milk vs pasteurised milk debate begins again. The comments on this article from June this year show the diverse opinions.

I grew up drinking raw milk from the vat. We looked long and hard at selling raw milk. We looked at the issues and decided that raw milk was not for us. I’ll explain why.

Is raw milk safe or not? 

The quick answer is, it can be safe, but it can turn bad very quickly. . .

Silver Fern Farms profit unsatisfactory, but promises more to come – Fiona Rotherham:

Silver Fern Farms, New Zealand’s biggest meat processor and marketer, has returned to profit after two years of losses but admits it still needs to deliver more.

Net profit after tax was $500,000 in the year ended Sept. 30, a significant turnaround from the $28.6 million after tax loss the previous year while pre-tax profit was $1.8 million compared to a loss of $36.5 million in 2013, the Dunedin-based cooperative said in a statement.

Over the same period the company paid down $99 million in debt as part of a plan to reduce the company’s debt servicing costs. Total income was $2.32 billion, up from $2 billion the previous year while earnings before interest, tax, depreciation and amortisation was $68.1 million, a nearly $46 million improvement on the 2013 financial year. . .

Silver Fern Farms release audited result just before Christmas - Allan Barber:

The delayed and much anticipated final result for Silver Fern Farms’ 2014 year has made it into the public arena in time for Christmas. Although it has squeaked in just above breakeven for the year at $1.8 million pre-tax and $0.5 million after tax, this is worse than the original guidance of $5-7 million announced at the end of October.

The difference is accounted for by a $3.3 million provision following a ruling by the Employment Relations Authority in relation to a technical redundancy arising from the closure of the Silverstream plant in 2013. From recollection SFF laid off staff on the basis of a seasonal shutdown, although at the time the company announced that it was unlikely to reopen unless stock numbers increased significantly.

The ERA’s ruling suggests this automatically implies a technical redundancy situation, whereas SFF believes not. The company has sensibly chosen (requested by the auditors?) to make the provision “while we consider our next steps over the coming month” according to chairman Rob Hewett. The time taken to reach this decision indicates the auditors must have refused to sign the accounts without this provision. . .

Year of contrasts for rural New Zealand:

It has been a year of contrasts for rural New Zealand, weather-wise and in other ways.

In Northland, for instance, while some farmers were emerging from drought, others were battling floods.

And dairy farmers saw record milk payments for the past season plunge from above eight dollars a kilo to below five dollars in a few short months.

Pondering on that is Waikato University’s professor of agribusiness, Jacqueline Rowarth.

“Hooray, hooray for good prices and then far more of a crash than actually was predicted by any of the analysts, though the banking ones were saying ‘watch out, we don’t think it’s going to be as good as you’re saying’, but of course they’re still saying that and there are some fairly dire predictions by the end of the year. . .

Rabobank Beef Quarterly Q4: Supplies remain tight amid robust consumer demand:

Rabobank’s Beef Quarterly Q4 reports that tight global cattle and beef supplies continued in Q4 2014, although prices tempered from their Q3 highs. The US remains the major global driver, with import demand affecting prices and volumes for other countries. A big question heading into 2015 with such a finely balanced market is—if Australian export rates decrease and herds in Mexico and Canada continue to be run down by the US—whether a new norm has been reached for prices or whether they still have room to rise.

“The US continues to be the driver in the global beef market with constrained supply and strong demand keeping prices high. A recent strengthening in the US economy and dollar will support continued imports to the US however we are watching a drop in the oil price and depreciation of the Russian Ruble given Russia’s status as the world’s largest beef importer”, explains Rabobank analyst Angus Gidley-Baird.  . .

Wine industry shows continued increasing profitability:

2014 financial benchmarking survey supports industry-wide optimism

The turnaround in the New Zealand wine industry has continued in 2014 on the back of improved profitability across wineries of all sizes, according to the ninth annual financial benchmarking survey released today by Deloitte and New Zealand Winegrowers.

Vintage 2014 tracks the financial results of wineries accounting for over 40% of the industry’s export sales revenue for the 2014 financial year. Survey respondents have been categorised into bands according to revenue to assist comparison within the industry.

Deloitte partner Peter Felstead says that for the first time since 2007, every category showed profitability before tax, ranging from 3.3% to 17.6%. . . .

New technology helps in fight against pests - Adrien Taylor:

A New Zealand inventor hopes to add drones to the fight against pests.

He won $25,000 to help turn his dream into reality and a trial of his Trap Minder system is taking place on Great Barrier Island this summer.

Scott Sambell and his dog Millie are finding that keeping Glenfern Sanctuary pest-free can be hard work.

The 240 hectare peninsula is cordoned off by a pest-proof fence to protect native wildlife, but that doesn’t stop a handful of unwanted predators making their way in every year. . .


Rural round-up

December 22, 2014

Two exciting years in a row - Allan Barber:

2014 and 2015 promise to be two of the most exciting years the red meat industry has seen for a long time and for a change the news is not all bad. There are some clouds around, but also silver linings like better beef and lamb prices, improved profitability and the possibility of positive developments in the industry’s structure.

At long last, after a slow start, there are plenty of signs the industry as a whole has recognised the need for change to address the main challenges of inadequate prices, declining sheep and beef numbers and excess capacity which have inexorably brought about land use conversions to more profitable activities. . .

  –  Allan Barber:

The Rabobank Rural Confidence Survey conducted in November found confidence among sheep and beef farmers had risen from just under 50% to 75% since the previous survey the previous quarter. However the overall confidence level remained low because of pessimism among dairy farmers, although this was slightly better than the two year low in the previous survey.

Sheep and beef farmer confidence is now on a par with dairy farmers’ confidence about their outlook and consistent with the situation two years ago. Major reasons for the turnaround are not difficult to fathom, but apart from the contrasting price trend for the respective products, half the farmers surveyed were optimistic about the outlook for global red meat demand.

The relative investment intentions of the two sectors also bore out the levels of optimism with 41% of sheep and beef farmers intending to invest more in their farms compared with just 18% of dairy farmers. . .

Fiordland rangers prepare for stoat plague – Dave Goosselink :

Rangers in Fiordland National Park are preparing for a major stoat plague, which will threaten one of our most endangered birds.

There are only around 260 takahe left, and the Department of Conservation (DOC) is doing its best to prevent any of them from becoming a Christmas dinner.

A remote part of the Murchison Mountains is home to the last wild population of takahe. The critically endangered native birds face a fresh wave of predators this summer due to bumper seed production in beech forests. . .

Tradition ties agents to job - Alan Williams:

There has been a raft of changes in the livestock agency industry in the more than 50 years Fred Fowler and John Honeybone have been working in Canterbury saleyards but one feature stays the same.

They’re both out there in the sprawling Canterbury Park facility wearing a tie.

“That’s the dress code,” Honeybone says.

“It’s good for discipline, specially for the young fellas.”

Fowler agrees. 

“If you’re standing in front of the public then you wear a tie.” . . .

The people behind the scene – Sally Millar:

As the year draws to a close, I would like to reflect on the year from a regional policy perspective. As Federated Farmers Policy Advisor my role is to advocate on behalf of our members to ensure they are able to farm without resource management policies and plans unduly impacting on their farm businesses.

With an ever changing regulatory climate, compliance can make farming tricky at times. We consider that most farming activities should be permitted, with appropriate standards that are essentially good farming practice and should be able to be complied with, with minimum fuss.  There are however areas where farmers will need a resource consent such as for building a bridge, discharging effluent, or getting a water consent for dairy shed wash-down.  This can be a confusing and complicated process.

Where resource consent is required, Federated Farmers Policy works to ensure the controls are appropriate, fair and achievable, without undue cost to the farmer.   This means if we do our job well much of what we achieve will go largely unnoticed. So I don’t necessarily see it as a negative if members are unsure of what I really do.  . .

Farmers face risk of dam-dry summer:

Low reserves of water in Canterbury have farmers and irrigation companies concerned ahead of what is threatening to be a dry summer.

The  Opuha Dam in south Canterbury is half empty – when, by now, it is usually more than 90 percent full and ready to keep pastures green through the summer.

Fish and Game said there had been an over-allocation of available water, which affected rivers and their ecosystems and needed to be addressed.

While the dam supplied water for irrigation, its main purpose was to stop the Opuha River from running dry. A dry spring and a lack of snow melt meant the dam had just over half the water it should have at this time of year. . .

Fonterra Welcomes New Managing Director International Farming:

Fonterra Co-operative Group Limited is pleased to welcome new Managing Director International Farming Alan van der Nagel to the business.

Mr van der Nagel reports directly to Chief Executive Theo Spierings, and replaces Henk Bles who has served as Interim Managing Director since April. Mr Bles is staying on in an advisory role for up to six months, ensuring a smooth leadership transition.

Chief Executive Theo Spierings said Mr van der Nagel had a considerable level of executive experience in internationally integrated dairy companies in emerging markets, and an impressive track record of driving operational excellence, working with multi-cultural teams, and managing large-scale international joint ventures. . .

 

 


Rural round-up

December 15, 2014

Commission releases final report on statutory review of Fonterra’s 2014/15 Milk Price Manual:

The Commerce Commission today released its final report on its statutory review of Fonterra’s Milk Price Manual (the Manual) for the 2014/15 dairy season. The Manual sets out the rules for how Fonterra will calculate the amount it will pay dairy farmers for raw milk this season. This is called the base milk price.

The Commission is required to report each dairy season on the extent to which the Manual promotes the setting of a base milk price that provides incentives for Fonterra to operate efficiently, while providing for contestability in the market for the purchase of milk from farmers.

This is the first of two statutory reviews that the Commission is required to undertake each dairy season under the Dairy Industry Restructuring Act 2001 (DIRA). . .

 

Fonterra back Mymilk for more milk:

Fonterra has today launched a separate milk sourcing subsidiary to grow market share in its New Zealand milk pool, and provide a new pathway to membership in the Co-operative.

Called mymilkTM, it will initially invite applications, from farms in the Canterbury, Otago and Southland regions that are not currently supplying Fonterra, for one year contracts, renewable for a maximum of five years, without the obligation to purchase Fonterra shares. At any time mymilkTM suppliers can apply to join the Co-operative, purchase shares and supply Fonterra directly.
Fonterra Chairman John Wilson said: “It is good for the Co-operative and the country for Fonterra to be the first name on the list for farmers considering their supply options. We know there are farmers who support the co-operative model, but are at the stage of development where sharing up is currently beyond their financial reach. . .

Fonterra Shareholders Council gives nod ‘with caveats’ to new milk supply plan – Fiona Rotherham:

(BusinessDesk) – The Fonterra Shareholders Council is “broadly supportive” of plans for the cooperative to start sourcing milk from South Island suppliers who are not also shareholders, with a couple of caveats.

Fonterra Cooperative Group, the world’s largest dairy exporter, yesterday announced a new milk sourcing subsidiary, mymilk, which would try to get milk in the Canterbury, Otago, and Southland regions where competition for milk supply is most intense from new suppliers on contracts on up to five years without the obligation to purchase shares. The feedback, particularly from new farmers who have recently spent a large amount of money converting farms to dairy, is that they can’t currently afford to now buy shares in the cooperative but would do so at a later date.

Shareholders Council chairman Ian Brown said the competition for milk supply at the farmgate was one of the biggest changes he’d seen in his farming career. “It’s a changed mindset to how to attract suppliers whereas in the old days it was what to do with new supply. That’s a mindset shift.” . . .

 

Mymilk likely to get up noses of Fonterra shareholders - Allan Barber:

Fonterra has launched a new company called mymilkTM which is specifically designed to attract supply from South Island dairy farmers who don’t currently supply Fonterra. The website says it’s cooperative, but that’s a bit hard to see when the supplier has no obligation to buy any shares within five years and only has to sign a one year contract.

The website also says somewhat cutely the company is ‘backed’ by Fonterra, when it is actually a wholly owned subsidiary. This new venture is no doubt directed at tempting Synlait and Westland suppliers to jump ship without having to stump up with any share capital (at least for five years).

It promises competitive payment – competitive with whom? Fonterra or one of the others? But it is not clear exactly how mymilkTM will avoid paying the same price or even a higher one (shades of meat industry schedule premiums) to secure a new sign up. Under Trading Among Farmers, it is expressly forbidden for Fonterra to have different classes of shareholders and under cooperative principles equality of payment is sacrosanct. . .

RBNZ sees 44% bounce in whole milk powder in 2015 - Paul McBeth:

 (BusinessDesk) – The Reserve Bank expects whole milk powder prices to rise by about 44 percent next year as the slump in global prices this year prompts less competitive processors to scale back their production in the face of smaller returns.

The central bank expects whole milk powder, which is New Zealand’s dominant dairy export, to rise to US$3,200 a metric tonne by early 2016, from its current price of US$2,229/tonne as international producers who were lured by record prices last year are squeezed out by this year’s decline, governor Graeme Wheeler told Parliament’s finance and expenditure select committee after this morning’s monetary policy statement.

New Zealand’s advantage is that it’s the most competitive dairy producer in the world and can operate with lower prices than its rivals, he said. . .

 

Sponsors provide choice cuts for Gate-to-Plate competition:

Cabernet Foods is the latest Gate-to-Plate sponsor to offer competition organisers added value – over and above a core contribution.

The Gladstone-based company has said, for every lamb that any 2015 Gate-to-Plate contestant consigns direct to Cabernet Foods (from 21st February 2015 to 20th February 2016), the business will donate $1 to the Masterton A&P Association to help further develop the Gate-to-Plate competition.

Lyndon Everton, Cabernet’s Managing Director, says, “This competition has the ability to showcase the Wairarapa’s primary sector not only on local menus but also nationally.

“The Gate to plate attachment to the A&P show is a fantastic opportunity for the pastoral farmer to win the hearts and minds of their urban cousins.” . . .

Aotearoa Fisheries back in black in 2014 as Sealord returns to profit – Paul McBeth:

 (BusinessDesk) – Aotearoa Fisheries, which manages more than $530 million of fisheries assets for its iwi shareholders, returned to profit in the 2014 financial year after its major investment, Sealord group, was back in black after exiting its unprofitable South American business.

The Auckland-based company reported a profit of $21.9 million in the 12 months ended Sept. 30, turning around a loss of $6 million a year earlier, it said in a statement. That was largely due to a $12.7 million contribution from Sealord, which Aotearoa Fisheries jointly owns with Japan’s Nippon Suisan Kaisha. Sealord posted a loss of $44.3 million in 2013, reflecting a $46.9 million loss on the sale of its Argentine business.

“Aotearoa Fisheries own divisions were ahead of target which is pleasing under difficult operating conditions like the exchange rate and soft demand for paua in Asia,” chief executive Carl Carrington said. “This year our business will ramp up efforts in becoming a leader in sustainability which is wholly in line with our tikanga. There is no question that our long term future hinges on how well we perform in this area.” . . .

Wool Firm For Better Styles:

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that the 6,000 bales of North Island wool at auction this week saw a 95 percent clearance with good style wools holding their ground and poorer styles easing.

The weighted indicator for the main trading currencies was 0.56 percent stronger but had minimal impact on the market with supply/demand factors being the current market driver.

Mr Dawson advises that full length Fine Crossbred Fleece was firm to 3.5 percent dearer with shorter types generally firm to 2 percent easier. . .

 

 


Rural round-up

December 7, 2014

Farmers key role in Oroua River’s success:

Federated Farmers congratulates the Manawatu River Leader’s Accord and its signatories on the stunning result with the Oroua River, which received the 2014 New Zealand River Award for the second most improved river in the country.

Federated Farmers Manawatu-Rangitikei provincial president, James Stewart, says “As members of the Accord, Federated Farmers couldn’t be more proud.

“Over the course of five years a Federated Farmers survey tells us that Horizon’s dairy farmers have spent an average of $100,000 per farm on riparian planting, fencing, effluent management and farming precision technology.This, along with other efforts such as the upgrading of the waste-water treatment plants and the Sustainable Land Use Initiative, have all had positive affects on the region’s rivers.” . .

 

The changing scale of dairy - Keith Woodford:

Twenty five years ago, New Zealand dairy farms were genuinely family businesses. The average herd was about 150 cows grazing on 65 hectares. Less than 5% of farms had more than 300 cows. In total there were 15,000 farms milking 2.2 million cows.

By 2013 the average farm size had more than doubled to 141 hectares, and average herd size had increased to just over 400 cows. Nearly eighty percent of national production came from farms with greater than 300 cows. In total there were 11,900 farms milking 4.8 million cows.

The average farm with 400 cows is now worth about $7.5 million. This includes land, cows and Fonterra shares. In dress circle locations such as parts of the Waikato, it can be worth a lot more. . .

Dairy production hits record high:

A farmer-owned co-operative says the past dairy season has been one of the best on record mainly because of very high grass growth rates.

Dairy industry statistics for 2013/14 have shown the country’s 4.9 million cows produced more than 20 billion litres of milk.

Just over 1.8 billion kilograms of milk solids worth $15.5 billion dollars was produced, delivering an average payout to farmers of $8.47.

The national herd grew by more than 138,000 – or by almost 3 percent – and production from each cow was up by just over 7 percent. . .

Plenty of interest in moratorium proposal – Allan Barber:

Although not all parties are in favour of it, the proposed moratorium on chain and plant licences has provoked a lot of debate and reaction from all parts of the red meat sector.

Generally the reaction from the farming side has been cautiously positive, although all groups require more clarification of exactly how it would apply and what it would mean to farmers. Rick Powdrell, Federated Farmers’ Meat and Fibre chairman, said it was important to canvas farmers for their views and hoped other groups, in addition to the Meat and Fibre Council, would discuss it with their members and suppliers. . .

 Moratorium would solve meat industry’s capacity problem – Allan Barber:

Word has got out suggesting some processors are in favour of a moratorium on new capacity as the only means of sorting out the meat industry’s excess capacity problem. It also appears MIE is initially supportive of the proposal, although it would need to be sure it was in farmers’ best interests before endorsing it completely.

My understanding is the moratorium would specifically prevent any new plants or chains operating on beef and sheepmeat around the country. This is where the plan is different from the previously floated concept of tradable slaughter rights (TSR) which proposed to set maximum permitted slaughter volumes for each processor. TSRs were supposed to enable whole plants or even companies to be closed with the costs of closure being financed by the sum paid to the owner. . .

Dairy industry animal database goes live:

The transfer of the Dairy Core Database from farmer owned co-operative LIC to industry body DairyNZ has been completed and is now part of a new Dairy Industry Good Animal Database (DIGAD).

DairyNZ chief executive Tim Mackle says DIGAD is a new database that will hold the New Zealand Dairy Core Database, all the data required for animal breeding evaluation purposes and some additional data for industry research. Access to the core data will continue to be controlled by an independent panel.

“This includes animal performance data from customers of herd recording companies LIC and CRV Ambreed and data collected by breed societies,” he says. . .

NZVA urges farmers to vaccinate stock against leptospirosis at an early age:

Leptospirosis is a significant risk to New Zealand farmers and the New Zealand Veterinary Association (NZVA) continues to reinforce the message for farmers to vaccinate young stock against leptospirosis at an early age and to maintain protection through animal boosters.

Dr Jenny Weston, President of the NZVA’s Society of Dairy Cattle Veterinarians says Leptospirosis is a highly infectious disease that can crossover from animals to humans. Farmers, veterinarians, and meat processors are most at risk of contracting it.

“New Zealand has one of the highest rates of Leptospirosis infection in the world with 120 human cases reported each year. However, the rates may be even higher as there could be many more unreported cases, with recent research suggesting there could be up to 40-50 undiagnosed cases for every case that is reported.” . .


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