Rural round-up

August 26, 2018

NZAgbiz launches first electrolyte product:

Developed by NZAgbiz in conjunction with leading veterinary scientists, Novolyte has been formulated to replace fluids lost due to scouring, treat dehydration and exhaustion and help calves recover from stressors such as transportation.

NZAgbiz is a Fonterra business unit that manufactures livestock nutrition products using primarily Fonterra ingredients, and General Manager Greg Cate says Novolyte was the logical next step in their range of scientifically formulated animal health supplements.

“All NZAgbiz products are based on solid scientific evidence and we saw the need for a high-quality electrolyte replacement to help farmers raise calves that thrive,” says Cate. . . 

Farm plans reduce N loss:

Farming practices now piloted by Mid Canterbury dairy farmers Grant and Jan Early could show other New Zealand farmers how they can successfully reduce their environmental impacts.

Earlys’ Mayfield farm is one of a small group in the Forages for Reduced Nitrate Leaching project looking for ways to cut nitrogen losses.

They have so far achieved a 20% cut in one year on their dairy support farm. The research results are made available to help farmers adopt new practices. . .

Milking it: I”m a farmer and I’m a very lucky man: – Craig Hickman:

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.

OPINION: Someone recently asked me why I’m a farmer and I think it’s fair to say it was something of an accident; I don’t’ come from a farming background and I had only a vague notions of what it might be like having spent a few summer holidays working on a deer farm.

I broached the idea with my parents at the end of my sixth form year, saying I would like to skip my final year of college and go work on a dairy farm, ostensibly to earn enough money to put myself through university.

My father, ever the practical man, came back to me with a counter proposal; if the object of working for a year is to save money for university, why not do something that pays real money? . . 

Hill country going well – Peter Burke:

Beef + Lamb NZ director Kirsten Bryant is concerned about the perception that hill country farmers aren’t doing well. Bryant says she and her husband have three hill country farms and financially they have never done as well as they are doing now.

Their properties are returning 5% to 8% on capital. “I don’t know where this perception that hill country farming is not profitable has come from,” she told Rural News. “For a start, let’s not forget about hill country farms that this is where the lambs are bred.

So you start focusing on hill country farming as a negative and talking it down and soon you are going to lose your breeding ewes and total lamb production,” she says. . . 

First NZ company receives Medical Cannabis license:

Hikurangi Cannabis has become the first New Zealand company to secure a license to cultivate medicinal cannabis plants.

The license issued by the Ministry of Health enables Hikurangi to breed cannabis strains that can eventually be used in medicines.

Hikurangi has secured significant investment and will now start building high tech greenhouses and processing facilities near Ruatoria on the East Coast. Hikurangi has commissioned clinical trials to start next year for the first New Zealand made cannabis medicines. . .

A2 Milk reports an a1 result while scientists work on the health benefits – Point of Order:

Revenue up   68%, profit up 116% , cash  on hand up  280% …

Those annual results are the sort most  companies’ bosses  dream of.  They are certainly are the  kind  of  results  Fonterra’s  farmer-suppliers    are  not  likely  to  hear  from  the  co-op’s  board in  this lifetime.

But  for A2 Milk’s  shareholders  they are  real.   Reporting to shareholders  (who  indeed have had a  dream run  this year), the   company this week  said revenue  reached  $922.7m,  annual profit $195.7m,  and  the sales margin  was  31%,  up  from  26% . . 

NZ pipfruit industry heading for a record 2018 crop, MyFarm says – Tina Morrison:

(BusinessDesk) – New Zealand’s pipfruit industry is headed for a record crop this year as it benefits from favourable growing weather, low Northern Hemisphere stocks, market changes, premium varieties, and a weaker New Zealand dollar, according to a report published today by MyFarm Investments.

The vast majority of the 2018 apple crop has been picked and nearly 90 percent has been exported, said MyFarm head of investment research Con Williams, who joined New Zealand’s largest rural investment syndicator last month after eight years as ANZ Bank’s agri economist. Williams said the crop is expected to have increased by 5-6 percent from last year, registering a new all-time high. . . 

Red meat sector confident despite some headwinds – Allan Barber:

Since I attended the 2016 conference, having missed last year’s, several things have changed considerably: two years ago Donald Trump wasn’t President, Silver Fern Farms hadn’t concluded its capital raising with a Chinese investor, alternative proteins and non-meat burgers weren’t on the industry’s radar and there was little recognition of the need for a Red Meat Story.

This year the conference programme acknowledged these changes by focusing on disruption to global trade, the China influence, heightened consumer expectations, the effects of the digital revolution and the importance of building consumer trust by telling our story about product provenance, traceability and environmental credibility. The conference was very well attended by farmers, processors and service providers, all of whom were optimistic about meeting the challenges ahead of an industry which has faced many different threats to its survival in the past 140 years. . . 

Country Life rural wrap from around New Zealand:

Do you know what is happening on farms and orchards around New Zealand? Each week reporters from Country Life talk to rural people about what is happening around New Zealand. Here’s what they told us.

Northland
Younger cattle have been selling well coming into a spring market. An average-to-better yearling steer has been fetching $880 to $950 and decent heifers $800 to $860. Wednesday was one of the worst days this winter – cold and bleak with hail, thunder and lightning. Thursday was sunny and Friday sunnier.

Pukekohe
This weekend’s weather will be like the last – fine. Unfortunately, the work days have been wet. With few exceptions, growers have kept off their fields unless crops were ready to harvest. With heavy supplies of broccoli retailing at unprofitable prices, working in the rain and muddy fields would appear to be a waste of time. . .

Tariff turmoil in times of abundance – Tim Burrack:

U.S. crop export prices dropped like a rock last month, falling by more than 5 percent. That’s the fastest dive we’ve seen in seven years, according to a report issued on Tuesday by the Department of Labor.

Government figures are important for understanding trends, but they cover up a lot of individual stories.

So let me tell you what these export-price statistics have meant for my farm in Iowa, where I grow corn and soybeans and raise hogs. Or, to look at it another way, let me tell you about my farm’s financial snapshot.

We’re facing tariff turmoil in a time of abundance. . .

 

Cavalier turns to profit in 2018, sees continuing improvements in future years –  Tina Morrison:

(BusinessDesk) – Carpet-maker Cavalier Corp turned to an annual profit and improved its debt and cash balances as it benefits from the previous year’s restructuring.

The Papatoetoe-based company posted a net profit of $4.1 million in the year ended June 30, from a loss of $2.1 million a year earlier. That’s above the top end of its forecast range of $3.7 million to $4 million. . . 


Rural round-up

August 25, 2018

Call for compo for farmers maintaining walkways – Maja Burry:

A high country farmer says there should be compensation for landholders affected by increasing visitor numbers.

A draft report published earlier this year by the Walking Access Commission found that a growing population, combined with record international tourist numbers is putting pressure on some access to the South Island High Country.

Andrew Simpson, who owns Balmoral Station at Lake Tekapo, said about 100,000 people use the Mt John Walkway on his farm each year.

Mr Simpson said he wanted people to enjoy his land, but he was having to spend tens of thousands of dollars on track maintenance this year, even with some support from the Department of Conservation. . .

Farmer leaders back off – Neal Wallace:

Farming sector leaders are unimpressed by the last-minute inclusion of far-reaching search and surveillance powers changes to the National Animal Identification and Tracking Act.

Federated Farmers, DairyNZ and Beef + Lamb NZ leaders, who endorsed the changes a week ago, said they understand the need for the change but the late additions should have been open to public scrutiny instead of being pushed through Parliament under urgency.

The Farmers Weekly was told a drafting error omitted the search and surveillance powers from the original Nait Act.

Farming sector leaders have been criticised for supporting the changes but they now say they were unhappy at the rushed legislated process. . . 

NAIT still long way from meeting original objective – Allan Barber:

NAIT is like a long running soap opera which viewers can watch faithfully for a couple of years, go back to after a long absence and find nothing much has changed. It was first thought of back in 2004, took eight years of argument, design, business case preparation and readings in parliament and it was finally implemented in July 2012 with a three year lead-in for cattle.

In 2016 a review was started which was finally completed in May this year and presented to the present Minister for Primary Industries. When it finally saw the light of day, you could have been forgiven for thinking it would be a review of all the reasons NAIT doesn’t yet appear to be working properly, but I understand it was always intended to be a routine review of the programme after three years in operation. . . 

Exchange rate reset will breathe new life to agriculture – Keith Woodford:

The recent decline in the value of the New Zealand dollar is about to breathe new life into agriculture. It will take some months before the benefits flow through to farm level, but the macro signs are there to be seen.

The key question is whether we are seeing a strategic reset or is it just short term. My own thinking is that it is medium term through to around three years and maybe beyond, but with inevitable volatility. Beyond that I cannot see.

First let’s get the basic maths sorted out. A lower value of the New Zealand dollar means that we get more New Zealand dollars for exports. And in the New Zealand context, that largely relates to our primary industries, principally agriculture and horticulture, but also forestry and fishing. . . 

A new weapon will help in the Stink Bug battle:

The addition of another weapon to fight any incursion of the Brown Marmorated Stink Bug on our shores is excellent news, Federated Farmers biosecurity spokesperson Karen Wiliams says.

“We’re delighted to learn the Environmental Protection Authority will allow controlled release of the tiny Samurai Wasp if this stink bug were ever to get a foothold here.

“The BMSB is a scourge that could put a multi-billion dollar hit on our economy. For arable and horticulture farmers, a scenario where a breeding population could get established here is a nightmare,” Karen says. . .

Seeka 1H profit falls on further banana business writedown – Sophie Boot:

(BusinessDesk) – Seeka, New Zealand’s biggest kiwifruit grower, posted a 6.5 percent decline in first-half profit despite revenue rising, as it wrote down the value of its banana-sourcing business further.

The Te Puke-based company reported profit of $10.4 million in the six months ended June 30, from $11 million in the same period a year earlier. Seeka said the bottom line included a $1.5 million writedown of goodwill to its tropical fruit business, Seeka Glassfields. Revenue rose 8.5 percent to $145.4 million, and earnings before interest, tax, depreciation and amortisation lifted 7 percent to $23.5 million. . . 

Federated Farmers keen to work with new Extension Service:

A new extension service intended to bring knowledge and resources to farmers struggling to keep up on production efficiency and environmental protection fronts is a “positive”, Federated Farmers board member and Arable chairperson Karen Williams says.

“Offering support so farmers can get up to speed is certainly preferable, and more likely to achieve progress, than wielding the big stick of fines and more regulations.

“The new extension service could prove helpful but we would urge MPI to continue to work with farming groups on the mechanics of it and how it is rolled out,” Karen said. . .

Apple and stonefruit group willing to engage in meaningful discussions with MPI following High Court judgment:

The group of five industry members who joined together to challenge MPI’s directive for nurseries and orchardists to contain and/or destroy tens of thousands of apple (Malus) and stonefruit (Prunus) plants has received the High Court judgment and is currently reviewing this in detail.

The judge found that the MPI directions, issued under s116 of the Biosecurity Act were unlawful and has directed MPI to reconsider.

The judgment encourages MPI to work with industry to develop and agree a more appropriate set of directions that address their key biosecurity concerns. . .


Rural round-up

August 13, 2018

Synlait Milk’s $2b man John Penno only wanted to be a farmer – Heather Chalmers:

John Penno says he only wanted to be a farmer; instead he set up a major export dairy company.   

On August 10, the Synlait Milk managing director officially stepped down after turning a bare paddock near Dunsandel in Central Canterbury into a multi-product company now worth $2 billion.

With a second $260 million nutritional powder manufacturing site at Pokeno, in north Waikato, set to start processing next year for the 2019-20 season, the company had much more growth to come, he said.   . . 

Lake Opuha holds out for last minute winter snow – Pat Deavoll:

It’s not just the ski fields looking for a late-season top-up of snow.

Opuha Water chief executive Andrew Mockford is hoping “mother nature will finish the winter with a flourish” and provide the much-needed snow to melt and fill irrigation reservoir Lake Opuha in South Canterbury.

There was less snow than usual this year and it was higher up the mountain, he said. . . 

 

Red meat sector confident despite some head winds – Allan Barber:

Since I attended the 2016 conference, having missed last year’s, several things have changed considerably: two years ago Donald Trump wasn’t President, Silver Fern Farms hadn’t concluded its capital raising with a Chinese investor, alternative proteins and non-meat burgers weren’t on the industry’s radar and there was little recognition of the need for a Red Meat Story.

This year the conference programme acknowledged these changes by focusing on disruption to global trade, the China influence, heightened consumer expectations, the effects of the digital revolution and the importance of building consumer trust by telling our story about product provenance, traceability and environmental credibility. The conference was very well attended by farmers, processors and service providers, all of whom were optimistic about meeting the challenges ahead of an industry which has faced many different threats to its survival in the past 140 years. . . 

Unyielding weather for European fruit and vegetable growers, how is the heat impacting crops?

Wrinkled tomato skins, curly cucumbers and small plums – these are some of the effects of drought on fruit and vegetables in Northern Europe. Exactly how great is the impact of heat and water shortages on crops, yields and growers in the region?

Hot and dry weather affects field crop farming the most, says Cindy van Rijswick, RaboResearch Fruit and Vegetable Analyst. “Yields are lower, but fruits and vegetables are also smaller in size and sometimes have quality issues. Because of the high temperatures or lack of water, growers have smaller plums, wrinkled tomatoes, and more misshapen cucumbers. In the coming months, the harvest of apples, pears and potatoes may potentially be smaller in size and yield too.” . . 

Agribusiness professional wins Future Leader role:

As a full-time rural valuer and part-time farmer George Macmillan has insights into many aspects of the agricultural industry.

Based in the Hawkes Bay, he lives close to his family’s 380ha sheep and beef farm south west of Hastings and has recently taken over the lease of a 50ha block. As a foot in the door towards land ownership, he will use the block to grow out the dairy cross beef calves he rears every year to heavier weights and will possibly finish a small number.

George, along with Northland farmer Mack Talbot Lynn, has been appointed a Beef + Lamb New Zealand Future Leader and will represent New Zealand at the International Beef Alliance conference in Canada in September. . .

For farmers, traumas tariffs are far worse than any bad trade deal – Bart Ruth:

As a candidate, Donald Trump promised to open new markets to trade, rein in regulatory overreach, cut government spending, and rebuild infrastructure and communication networks to enable rural America to compete in the global economy.

While there have been some positive changes under President Trump – when it comes to American agriculture, we are headed toward economic disaster.

As a sixth-generation farmer and a lifelong Republican, I am alarmed over the impacts that the administration’s actions are having on the agriculture economy and rural America. President Trump has shown a blatant disregard for international institutions, sound science, proven economic theory, and the history of protectionist policy. . .


Rural round-up

August 7, 2018

Wool gets revived as tide turns on synthetics’ pollution of the seas – Heather Chalmers:

A new wave of socially and environmentally-conscious consumers are turning to natural fibres for their clothing and homes, rejecting polluting synthetics and plastics.  

New Zealand wool companies are already tapping into this trend, promoting wool as a natural, biodegradable and renewable replacement.

But while momentum is growing, returns remain stubbornly low for the coarser end of New Zealand wool clip.   

While shoppers may think they have done their bit for the environment by ditching plastic bags, they are being advised to look at what they are wearing and how their house is carpeted, furnished and insulated.  . . 

 Wrightson shares jump 9.4% on plans to sell seeds unit for $439M; may distribute cash – Tina Morrison:

(BusinessDesk) – Shares in PGG Wrightson jumped as much as 9.4 percent after the country’s largest rural services business said it had agreed to sell its seed and grain business to Danish cooperative DLF Seeds for $421 million in cash and $18 of debt repayment, and signalled it may return up to $292 million to its shareholders.

The sale is above the $285 million book value of the seeds business and follows several expressions of interest received from international parties as part of a strategic review underway with Credit Suisse (Australia) and First NZ Capital. The Christchurch-based company expects to have a net cash balance of about $270 million following the sale and could distribute as much as $292 million to shareholders. . . 

A2 doubles stake in Synlait at 23% discount – Sophie Boot:

A2 Milk will buy another 8.2 percent of Synlait Milk, doubling its stake in the company.

The milk marketing firm will buy the shares at $10.90 apiece, down 2.3 percent from the NZX one month volume weighted average price of $11.16, for a total of $161.8 million. The shares will come from Tokyo-listed Mitsui & Co, a general trading company which invests across sectors and bought 8.4 percent of Synlait at the company’s initial public offering in 2013. . .

 

New Zealand red meat sector strongly opposes European Union and United Kingdom’s WTO quota proposal;

Beef + Lamb New Zealand and the Meat Industry Association strongly oppose the European Union (EU) and United Kingdom’s (UK) proposal to ‘split’ the EU’s World Trade Organisation (WTO) Tariff Rate Quotas between them.

The UK and EU have officially notified the WTO of their draft tariff schedules, which propose to split tariff rate quotas that allow access for New Zealand sheepmeat and beef exports. . .

Trade outlook still bright, but not without challenges – Allan Barber:

Vangelis Vitalis, Deputy Secretary for trade at MFAT and chief negotiator for the CPTPP due to take effect early next year, gave a very thorough and enthralling presentation on the trade landscape to the Red Meat Sector Conference in Napier on Monday.

Free trade and market access are a key area of interest to the New Zealand meat industry and the economy as a whole. Vitalis stated that three assumptions underpin New Zealand’s international trade negotiations: . . 

MPI sets the record straight with Forest & Bird:

Ministry For Primary Industries 2 August 2018 MPI is disappointed that Forest and Bird thinks it necessary to make inaccurate claims about combined efforts to prevent the spread of Kauri dieback.

Forest and Bird has advised MPI that it is closing off its reserves with wild kauri as a further measure to prevent the spread of kauri dieback, says Roger Smith, Head of Biosecurity New Zealand (a part of MPI). “We welcome all efforts to protect our kauri and have been working in partnership with a wide range of organisations to support their local efforts. . .

Tour leader found with fruit fly:

Fruit fly larvae carried by a tour party leader could have devastated New Zealand’s horticulture industry, says Biosecurity New Zealand.

Biosecurity officers intercepted the larvae last month in undeclared food with a holiday group from Malaysia at Auckland Airport, says Biosecurity New Zealand Passenger Manager, Craig Hughes.

The larvae was found in chillies following x-ray screening of the tour leader’s baggage. A caterpillar was also detected in some garlic bulbs carried with the undeclared food. . .

Rabobank Wine Quarterly Q3 2018: Status Quo Under Pressure in US Route-to-Market

The US has emerged as the largest wine market in the world, and by most measures, the most profitable and attractive. While wineries – both foreign and domestic – recognise the profit potential of the market, it is also widely seen as an exceptionally-difficult market to penetrate (particularly for small wineries), according to the latest RaboResearch Wine Quarterly report.

Route to the US consumer

Major changes are occurring today in how wine reaches the US consumer. “Changes in technology, business models and market structure are disrupting the global wine market and creating new sets of winners and losers among wholesalers, retailers and suppliers,” according to Stephen Rannekleiv, RaboResearch Global Strategist – Beverages. “Responding quickly to these changes will determine who survives, who thrives, and who fades away.” . .

Boy, 10, raises $60,000 in ‘Fiver for a farmer’ campaign – Shelley Ferguson:

More than $60,000 has been raised for drought-stricken farmers through a campaign started by children at a Sydney school last week.

Jack Berne, a grade four student at St John the Baptist Catholic School in Freshwater, was the instigator of “a fiver for a farmer”, and was inspired to help after learning about the struggles of those on the land in class.

Last week, Jack wrote a letter to media outlets as he tried to generate support for the cause after telling his mum that their teacher always tells them, “we can use our small and mighty voices” ..  . 


Rural round-up

June 13, 2018

New faces take on arable roles – Annette Scott:

Wairarapa cropping farmer Karen Williams made history as she took up the reins of the Federated Farmers arable section at its annual conference.

The first woman to head the section, the 2017 biosecurity farmer of the year and former Ballance Farm Environment Award winner takes on the job with a bundle of enthusiasm.

“I am excited about the opportunity. 

“For me this role gives me the opportunity to continue to work in biosecurity and engage in that space in Wellington. . . 

Drones prove worth on farms – Richard Rennie:

Drones initially welcomed as great novelties are now fixtures as business tools and on farms they can have multiple uses. Richard Rennie talked to farmers who have used them and found a new drone firm setting up shop here as their use becomes more widely accepted.

IN THE heady early days of drone deployment many promises were made about how they would revolutionise some of the grinding daily farm jobs, often all from the comfort of the farm kitchen table. 

A few years on they have proved to be more than a flash in the pan. 

For some farmers they are now an established tool but still as dependent on the technology they take into the sky as the inventiveness of farmers using them. . . 

Meat company results only average for 2017 – will 2018 be any better?  – Allan Barber:

ANZCO’s lacklustre result for 2017, posted last month, concludes the financial reporting for last year by the three major processors which publish their results. ANZCO’s pre-tax profit was $1.8 million which compares disappointingly with Alliance Group’s $16.7 million profit and Silver Fern Farms Cooperative’s 15 month profit of $7.8 million.

None of the three companies achieved a particularly good return on their investment in the business, but both Alliance and SFF showed improvement on the previous year which was in each case the result of substantial changes in the business structure and balance sheet. The $261 million investment by Shanghai Maling in acquiring 50% of SFF had an immediately positive impact on the company’s balance sheet strength and interest bill. During its year to September Alliance was able to reduce debt and make increased investment in plant upgrades at the same time. . . 

Danone adds to investment in NZ infant formula with proposal to buy up to 49% of Yashili New Zealand – Jonathan Underhill

(BusinessDesk) – Danone plans to increase its investment in New Zealand infant formula manufacturing by acquiring up to 49 percent of Yashili New Zealand Dairy Co, the local unit of China Mengniu Dairy, according to a filing in Hong Kong.

Terms of the transaction haven’t been finalised, including the price and method of payment, Yashili International said in a statement to the Hong Kong stock exchange. “The consideration, the payment method and the payment schedule shall be determined after arm’s length negotiations and mutual agreement between the parties,” it said in a statement to the Hong Kong stock exchange. . .

Changes on board of Young farmers – Sally Rae:

Experienced Dunedin marketer Sharon Angus has joined the board of New Zealand Young Farmers as an appointed director.

Ms Angus (54), who is former general manager of marketing at Silver Fern Farms, has extensive experience with food brands.

The marketing consultant was excited about joining the board as she felt New Zealand Young Farmers “represents the future”. . . 

Process vegetables industry signs up to GIA:

Today, Horticulture New Zealand signed a Government Industry Agreement (GIA) for Biosecurity Readiness and Response on behalf of Process Vegetables New Zealand (PVNZ).

PVNZ chair David Hadfield says robust biosecurity should be seen as an investment for growers.

“Committing to the GIA enables us to have closer, more informed interactions with the Ministry for Primary Industries (MPI) and other GIA industry partners around biosecurity. This includes planning for potential incursions and taking a leading role in collective biosecurity management where it impacts our members,” Hadfield says. . . 

Knitted with love:

How Fonterra is helping keep Gore’s newest residents warm and cosy this winter.

It’s a rainy Wednesday afternoon in Gore and Lois Shallard’s knitting needles are working over-time. Beside her on the table is a pile of tiny knitted baby socks, singlets and hats and at her feet are balls of wool – hot pink, lime green, lavender and a “lovely mottled blue”.

Lois is 70 this year and she’s been knitting since her teens. She knitted clothes for all her children back in the day and now she’s moved on to knitting for her town’s new mums.

“I love knitting the little socks the best, they are just so tiny and cute.” . . 


Rural round-up

June 1, 2018

Farmers at country club: ‘We want to stop the spread’-:

A small Tararua farming community has told the agriculture minister of the uncertainty facing it because of the cattle disease Mycoplasma bovis.

Damien O’Connor visited the community of Makuri near Pahiatua today as part of the government’s Mycoplasma bovis roadshow.

Tararua district mayor and farmer Tracey Collis was there and told Checkpoint there was a lot to be learned from the Mycoplasma bovis scare.

“Watching the uncertainty in farmers in the district – it’s not something you wouldn’t wish on anybody,” she said.

“I think we need to tidy up our practises. [Husband] Mike and I spent five years as organic dairy farmers and within that system anything that came onto the farm was cleaned.” . . 

M bovis eradication costs will be uneven:

The costs of the attempted eradication of Mycoplasma bovis will be borne unevenly, although economists say the full extent of the costs has yet be calculated.

The Government chose to attempt to eradicate the presence of the bacterium, noting the current estimates of eradication costs were smaller than the estimated costs of management.

No country has yet successfully eradicated the disease, but the Government does not want to regret not trying. . . 

Decision made but important to find the cause – Allan Barber:

The Government decision to eradicate rather than contain Mp. Bovis has the merit of drawing a line under the first stage of the disease outbreak. There were three options under consideration: eradicate, manage or do nothing; the third was clearly not seriously considered, but there must have been a serious debate between the first two. In the end the eradication course of action was chosen because it gives ‘the best shot’ at eliminating the disease to the benefit of the New Zealand agricultural sector, particularly the dairy industry, and the economy.

The other factor which weighed in favour of the chosen option was MPI’s cost estimate of $886 million in contrast to $1.2 billion from attempting to manage the disease, although at any point along the way it may prove necessary to accept eradication is not possible and management will then become the default option. The likely first trigger point for a change will come in October/November after calving when cows are at their most stressed and liable to show signs of Mp. Bovis. The third option of doing nothing has been estimated to cost $1.3 billion in lost production over 10 years as well as continuing productivity losses. . . 

ANZ announces Mycoplasma Bovis assistance package:

ANZ Bank today announced an assistance package to help Mycoplasma Bovis-affected cattle farmers meet their short-term cash-flow requirements and ultimately re-establish their herds.

The ANZ Mycoplasma Bovis relief package is in response to this week’s Government announcement stating it would work with farming sector leaders to attempt to eradicate the disease, which is not harmful to humans, over the next few years.

The package will be effective immediately.

ANZ also acknowledges the efforts of the Rural Support Trust and will make a $20,000 donation to support their important work with local farmers on the ground. . . 

Future Focus planning boost for farming partners in Tararua

Tararua and Southern Hawke’s Bay sheep and beef farming couples are among the first in the country to be offered a new programme to help them plan for long-term business success, developed in response to strong industry demand.

Launched recently, the programme equips farming partners to decide their business and family goals together, then use that to plan for, and lead, their teams.

Funded by the Red Meat Profit Partnership (RMPP) PGP programme, Future Focus, is initially being offered in seven rural centres, involving more than 100 participants.

Designed and delivered by the Agri-Women’s Development Trust (AWDT), each two-day programme will be held over two months. . . 

Supply pressure building in major world beef markets:

It’s been a positive start to 2018 for the global beef sector – with production and consumption up and prices generally favourable – however, building pressures in some of the world’s major beef-producing nations have the potential to change export market dynamics, with implications for New Zealand, according to a recently-released industry report.

In its Beef Quarterly Q2 2018 – Production continuing to Grow, but Supply Pressure Starting to Mount, agribusiness banking specialist Rabobank says supply pressure is growing in global beef markets due to dry weather conditions in the US, a surplus of animal protein in Brazil and changes in live cattle trade out of Australia.

Report co-author, Rabobank New Zealand animal proteins analyst Blake Holgate says the degree to which these supply pressures continue to build will determine the extent of their impact on global markets. . . 

Survey underlines rural connectivity frustration:

Plenty of rural folk have jumped at the chance to respond to a Federated Farmers survey on the quality of telecommunications connectivity out in the provinces.

There were close to 500 responses within 24 hours of the launch of the survey.

“It’s hardly surprising because we know from member feedback that broadband and mobile blackspots cause considerable frustration,” Federated Farmers Vice-President Andrew Hoggard says.

“Technology is a huge and increasing facet of modern farming. If the apps and programmes on farmers’ digital devices drop out or run at crawl-speeds, they simply can’t run their businesses efficiently.” . . 

The survey link is https://survey123.arcgis.com/share/a09e7cdf97874d85b722169fc6649d4f . . .

 


Rural round-up

April 8, 2018

School farm visits to encourage agricultural careers – Hunter Calder:

Benneydale School children watched eagerly as wool came off sheep on Storth Oaks Farm.

For some of the pupils it was the first time they’d ever been on a farm, not to mention seeing a sheep in the flesh.

“It’s very soft and mushy,” one pupil said as he felt the wool.

“It’s nice, it smells like cotton candy,” another student said. . . 

Both lamb and beef exports expected to break $3 billion for the first time and forecast farm profits rise:

Both beef and lamb exports are expected to break the $3 billion mark for the first time as high lamb, mutton and beef prices bump up this season’s forecast profit for sheep and beef farmers, according to Beef + Lamb New Zealand’s (B+LNZ) Mid-Season Update.

The milestone for lamb exports is predicted to be reached on the back of a forecast 14 per cent increase in average export value. Meanwhile, total beef export receipts, which passed the $3 billion mark in 2014 15, are expected to be $3.2 billion in 2017 18 – down 1.1 per cent. . . 

Iwi leader swaps corporate job to pick apples:

One of Hawke’s Bay’s most influential Iwi leaders has swapped his corporate job to pick apples this week as the industry faces one of the worst labour shortages in recent years.

In an attempt to get more locals picking apples, Chairman of Ngati Kahungunu, Ngahiwi Tomoana and his wife Mere are picking apples for three days for Bostock New Zealand and are calling on other members of their Iwi to join them.

“I just can’t sleep at night knowing that our delicious Hawke’s Bay apples could go to waste. The apple industry drives our economy and creates thousands of jobs for our Iwi. So we need to support our local growers, so the apples don’t rot on the trees. . . 

Govt deals body-blow to farmers and growers:

The Ardern-Peters Government has dealt a body-blow to farmers and growers in pandering to its mates in the Green Party and axing funding to irrigation projects, National Party spokesperson for Agriculture Nathan Guy says.

“Not only that, but it looks to me like it isn’t honouring its commitments to industries relying on these projects,” Mr Guy says.

“When they were first sworn in late last year, the new ministers received a briefing from Crown Irrigation outlining several projects that it had financial commitments to. . . 

Hurunui Water Project continues despite government funding ‘kick in thetTeeth’:

The Board and farmer-shareholders behind an on-plains storage based regional irrigation scheme are determined it will go ahead, despite the Government announcing that it will not provide further funding.

“Water is fundamental for our community – it’s the lifeblood of our region. As recent extended droughts have painfully shown, our livelihoods are tied to climate and the reliability of water supply,” said Hurunui Water Project (HWP) Chief Executive Chris Pile. . .

Govt’s irrigation cutback a blow but schemes to press on – Eric Frykberg:

A government move to cut back on irrigation has been called a kick in the teeth by a South Island water company fighting drought in an arid region.

The Hurunui Water Project is vowing to press on anyway, having already invested $10 million in a scheme to improve the water supply.

The government announced yesterday that it had begun winding down public funding for large-scale irrigation through the state agency, Crown Irrigation Investments Limited.

It said that was in line with its coalition and confidence and supply agreements. . . 

Silver Fern Farms’ result shows benefit of capital injection – Allan Barber:

Silver Fern Farms Limited has posted an improved annual result for its first year with its new Chinese partner, Shanghai Maling, which invested $260 million to acquire a 50% share of the meat processor and exporter. Revenue for the 2017 financial and calendar year, following the change in balance date from the traditional meat industry year to September, was on a par with 2016, but the NPAT of $15.4 million was a huge increase on the previous year’s $30.6 million loss, although not as good as the 2015 result of $24.6 million.

The declared result for Silver Fern Farms Cooperative was not nearly as good as it was for the operating company in which the cooperative now holds a 50% shareholding.  .  .

Meatco had planned note issue to raise $2.5M; liquidator left with 1.3 tons of frozen halal meat – Jonathan Underhill:

 (BusinessDesk) – Meatco, a New Zealand processor and exporter of halal sheep meat put into liquidation last month, had planned to raise capital through a convertible note issue to build a processing plant in Shannon in the lower North Island, the first of many, a strategy that was touted to boost earnings by 50 percent.

Instead, the three-year-old business was put into liquidation by a disgruntled creditor, Beirut-based Widriss Holding, a diversified food and commodity trader, “following a non-supply or refund of prepaid stock.” Meatco shareholder Michael Stacker and director and former shareholder Robin Bautista couldn’t immediately be reached for comment. . . 

Turning dirt into climate goals via carbon farming – Miriam Swaffer:

Having just returned from VERGE Hawaii: Asia Pacific Clean Energy Summit, I confidently can say Hawaii is awesome. Yes, the beaches are gorgeous. But what really got me excited is Hawaii’s climate leadership and the opportunity this creates for business.  

Hawaii’s lawmakers recognize both the grave threat of climate change and the economic opportunity to generate local clean power, as opposed to shipping oil thousands of miles to meet their needs.

Indeed, days after the U.S. government announced its intention to withdraw from the Paris Climate Agreement, Hawaii was the first state to say “We Are Still In.” Within days, Hawaii Gov. David Ige went event further than the state’s 100 percent renewable portfolio standard by signing bills expanding the policy strategies and mechanisms to reduce greenhouse gas emissions.   . . 


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