Rural round-up

July 9, 2019

Uncertainty plus unique ownership structure drive Fonterra share volatility – Keith Woodford:

Fonterra’s shares have been on a steady downward slide for the last 18 months. In January 2018 they were selling at $6.60 dropping to $3.86 at closing on 30 June 2019.

Then this last week things suddenly turned volatile, dropping at one point on 4 July a further 10 percent to $3.45, before rising by six percent to $3.69 at close of trade on 5 July.

The causes of the long-term drop are well understood. Very simply, Fonterra made a loss of $196 million in financial year 2018 largely because of write-down on assets. Fonterra is also now in asset-selling mode to strengthen its balance sheet. Non-farmer investors are coming to understand that, with family silver having to be sold as well as some rubbish disposal, any turnaround is likely to be long-term rather than short-term. . .

One billion tree flawed says climate scientist :

The Forestry Minister Shane Jones’ one billion trees won’t reduce carbon emissions, as too few natives are being planted, climate scientist Jim Salinger says.

The government has allocated $120 million in grants to landowners to plant trees on their properties, and wants two-thirds of those planted to be natives.

Forestry New Zealand figures show in the first year, of the 91m trees planted, only 12 percent were native. . .

Falling log prices may make some woodlots unprofitable – ANZ -Rebecca Howard

(BusinessDesk) – In-market prices for logs in China – New Zealand’s largest export market – have fallen in recent weeks and ANZ Bank warns the drop will make the harvest of some woodlots unprofitable.

While some price softening is not unusual at this time of year as construction activity slows in the hot months, “the scale of the correction was unexpected,” said ANZ agriculture economist Susan Kilsby.

The price of an A-grade log landed in China has fallen from US$130/JAS cubic-metre in early June to approximately US$105/JAS cubic-metre.. .

Vet behind Mycoplasma Bovis detection hopeful for eradication:

The Ōamaru vet, whose efforts led to the identification of cattle disease Mycoplasma Bovis in New Zealand, says she is optimistic the disease can be eradicated.

Earlier this week, Dr Merlyn Hay was given the Outstanding Contribution to the Primary Industries Award, for her work to identify M Bovis in July 2017.

Dr Hay told Saturday Morning that the disease was very hard to diagnose, and in many other countries it was only detected after it had already been spreading for several decades . .

Group aims to help farmers improve M. Boris response – Daniel Birchfield:

Lines of communication between the Ministry for Primary Industries and farmers impacted by cattle disease Mycoplasma bovis have been muddied for too long, Waitaki Mayor Gary Kircher says.

Alongside Waimate Mayor Craig Rowley, he chaired the first meeting of the recently formed Waimate/Waitaki Mycoplasma Bovis Advisory Group held at the Waimate District Council on Wednesday.

The group, modelled on a similar Ashburton arrangement, was formed to support the ministry’s M. bovis eradication programme and assist with regional decision-making to benefit farmers. . .

Lamb contract rewards loyalty – Colin Williscroft:

A $9/kg fixed-price lamb contract for August is a reward for customer loyalty, Affco national livestock manager Tom Young says.

So, farmers generally should not raise their hopes it signals prices higher that they might usually expect as the season unfolds.

The contract has been the subject of much discussion at sale yards but Young said it is not an offer being made to every farmer.

It is only available to loyal clients, farmers who have shown Affco consistent support. . .

Dismantling free markets won’t solve biodiversity threat – Matt Ridley:

Driven perhaps by envy at the attention that climate change is getting, and ambition to set up a great new intergovernmental body that can fly scientists to mega-conferences, biologists have gone into overdrive on the subject of biodiversity this week.

They are right that there is a lot wrong with the world’s wildlife, that we can do much more to conserve, enhance and recover it, but much of the coverage in the media, and many of the pronouncements of Sir Bob Watson, chair of the Intergovernmental Panel on Biodiversity and Ecosystem Services (IPBES), are frankly weird.

The threat to biodiversity is not new, not necessarily accelerating, mostly not caused by economic growth or prosperity, nor by climate change, and won’t be reversed by retreating into organic self-sufficiency. Here’s a few gentle correctives.

Much of the human destruction of biodiversity happened a long time ago . . .


Rural round-up

July 8, 2019

Katie Milne addresses national conference:

Kiwis can be proud of the rural women and men who produce the top quality food that arrives daily in supermarkets, and the extra which is shipped offshore as exports that help fuel our economy.  Over 65% of our exports come from agricultural food production and we produce it with a lower carbon footprint than any other country in the world.  

Biosecurity threats, geopolitics, alternative proteins, robotics, disruptors, food and environment sustainability…there’s no shortage of challenges and change confronting us. 

But you should also know – especially if you’ve been fortunate enough to catch some of the keynote addresses and panel discussions of the inaugural Primary Industries Summit that Federated Farmers organised and has hosted Monday and Tuesday – that New Zealand also has a wealth of ideas, talent and drive to deal with these big issues coming at us. . .

Tougher bank capital rules could slice 10% from dairy profits – Rabo NZ – Rebecca Howard:

(BusinessDesk) – Stricter bank capital requirements would severely dent dairy farm profits if the Reserve Bank goes ahead as planned, warn dairy interests in submissions on the contentious proposals.

“Our initial estimates are that the proposals could – at least in the short term – result in approximately a 10 percent decrease in profit for the agriculture sector,” Rabobank New Zealand said in its submission. . .

Trees replace top cattle – Annette Scott:

As far north as sale yards get in New Zealand the Broadwood selling centre in Northland hosted one of the country’s more notable capital stock clearing sales last week.

On behalf of Mark and Michelle Hammond of Herekino, Carrfields Livestock held the sale of a Hereford beef herd that put 50 years of top-quality genetics under the hammer, the animals’ grazing land destined for pine trees. . .

Ruapehu rural reading scheme spells out a winning idea  –  Katie Doyle:

A pair of librarians from the central North Island town of Taumarunui are bringing a love of reading to rural school children.

Fiona Thomas and Libby Ogle have started their very own mobile library – each month ferrying a load of books to two isolated primary schools in the Ruapehu District.

The idea came to life eighteen months ago when Mrs Thomas realised some kids in the region couldn’t access the library because they lived too away. . .

Blue Sky reports best result in 8 years – Rebecca Howard:

(BusinessDesk) – Southland meat processor and marketer Blue Sky Meats says the year to March was its best result in eight years as a strategic plan bore fruit.

The company, which is due to release its annual report shortly, said the March financial year ended with revenue up by 34 percent to a record $140 million. Pre-tax profit was up 36 percent at $5 million. . .

Overseas investors fined almost $3 million for illegal purchase of Auckland properties:

The High Court yesterday ordered the overseas owners of two rural properties at Warkworth, north of Auckland, to pay $2.95 million to the Crown after an Overseas Investment Office (OIO) investigation found they were bought without consent. The properties were bought in 2012 and 2014.

The court ordered the owners to sell the properties and pay penalties, costs and the gain made on the investment.

The overseas owners – Chinese businessmen Zhongliang Hong and Xueli Ke, and IRL Investment Limited and Grand Energetic Company Limited – should have applied to the OIO for consent to buy both properties because they are rural land of more than five hectares. . .

Latest technology to be demonstrated at the Horticulture Conference 2019:

Technology that will help fruit and vegetable growers now and in the future will be demonstrated at Our Food Future, the Horticulture Conference 2019 between 31 July and 2 August at Mystery Creek, Hamilton.   

‘We’ve gone all out to ensure that this year’s conference features demonstrations of technology that can help growers tackle some of the challenges that they face,’ says Horticulture New Zealand Chief Executive, Mike Chapman. 

‘From biological control products for crop protection to robots for asparagus harvesting and greenhouse spraying, they will all be demonstrated during the morning of second day of the conference.  . .

Ben Richards becomes Bayer Marlborough Young Viticulturist of Year 2019:

Ben Richards from Indevinbecame the Bayer MarlboroughYoung Viticulturist of the Year 2019 on 4 July following the competition held at Constellation’s Drylands Vineyard.

Congratulations also to Jaimee Whitehead from Constellation for coming second and Dan Warman also from Constellation for coming third. . 


Rural round-up

June 27, 2019

Culling our cows isn’t the only way to reduce emissions – but greenies shy from the GE option – Point of Order:

Climate  change  warriors  who   are  demanding  NZ’s  dairy  herd   be culled  immediately to  meet  targets of  lower methane emissions  may be confounded by the evidence  that leading farmers  are  already succeeding  in  lowering gas emissions.  And the  prospects  of  huge  advances  in other  aspects  of  dairying,  particularly  in   AI, robotics  and  the development of  new crops,  portend further  gains..

And what’s holding  up another  key development?

It’s the intransigence of the so-called  Green lobby against the introduction of genetic technology. . . 

South Canterbury champion shearers to take on the world’s best – Samesh Mohanlall:

Two South Cantabrians who are New Zealand’s premier blade shearers are headed to France and world shearing championships.

Tony Dobbs from Fairlie and Allan Oldfield of Geraldine are hoping for a good showing when they line up against the world’s best from July 1 at Le Dorat in Haute-Vienne.

The Olympics of shearing round up 35 nations, 300 international shearers, 5000 animals and more than 30,000 visitors, into a small town of 1900 inhabitants in southern-central France. . . 

Venison, velvet and … milk? – Farah Hancock:

How do you milk a deer? Very, very carefully.

In Benio, close to Gore the McIntyre family are doing just that with a herd of 90 hinds. It’s something they’ve been doing for four years and they put their success down to good handling of the deer.

Peter and Sharon McIntyre’s son Chris is in charge of the twice daily milking. He said at first a lot of people didn’t believe the family were milking their deer. Four years on, and with food and innovation awards under their belt not much has changed.

“It depends who you talk to. A lot of people still don’t believe us.” . . .

Fonterra says full-season milk collection up 1.2%- Gavin Evans:

(BusinessDesk) – Fonterra says its New Zealand milk collection for the year through May rose 1.2 percent despite a weak end to the season.

New Zealand’s biggest milk processor collected 1,522.7 million kilograms of milk solids in the year, and noted that the prior year had been a poor production season.

Fonterra said May production by its suppliers fell to 68.4 million kgMS, down 3.5 percent from a year earlier, despite more favourable conditions across many regions in recent months. Conditions in May 2018 had also been more favourable, the firm noted in its latest dairy update. . . 

Lower North Island butchers sharpen up for competition:

Butchers from across the lower North Island sharpened their knives and cut their way through a two-hour competition in the regional stages of the 2019 Alto Butcher and ANZCO Foods Butcher Apprentice of the Year.

It was a close call, but after a fierce competition Simon Dixon from Island Bay Butchery placed first in the Alto Butcher of the Year category and Makalah Stevens from New World Foxton claimed first spot in the ANZCO Foods Butcher Apprentice of the Year category.

This was the second regional competition in a national series to compete in a Grand Final showdown in August to crown New Zealand’s top butchers, culminating in a glitzy dinner – a highlight of the industry’s year. The Lower North Island competition involved the butchers breaking down a size 16 chicken, a boneless beef rump and a full pork loin into a display of value-added products. . .

Australia’s drought now eating into New Zealand’s rainfall figures – Weather Watch:

On Sunday we wrote about how NZ is being affected by Australia’s drought now a review of the past month’s rainfall shows some places only got 10mm of rain.

Farmers are increasingly telling us they have only received about one third of their normal rainfall in some parts of the country so far this year.

Enormous high pressure systems – like the one moving in this week and weekend – have been drifting east from Australia for months now and it is clearly having an affect on our rainfall figures. As we approach the halfway mark of the year the low rainfall is now starting to concern some in the agri sector about the impact this might have on summer. Likewise power companies are watching the South Island’s hydro lakes.

Recent rain should teach us to be careful what we wish for when it comes to Brexit – Tom Clarke:

Not too long ago, farmers were praying for rain, but now surveying our flattened crops and flooded fields, we’re wishing we hadn’t prayed quite so hard. There’s a lesson to be learned here about pushing for a no-deal Brexit, says arable farmer Tom Clarke.

Ten days ago arable farmers across the South and East of England were praying for rain to end the remarkable dry spell we’ve endured since spring 2018.

This week we got what we wanted. Good and hard. In many places, crops lie flattened and fields flooded.

The moral of this story is to be careful what you wish for. If it comes, it might not be quite what, how or when you wanted it. . .

Fertile large-scale certified organic property crops up for sale:

A large scale and diversified Hawke’s Bay certified organic business and landholding has been placed on the market for sale.

The 62-hectare site at Bridge Pa near Hastings consists of an L-shaped property producing commercial quantities of blueberries, carrots, onions, potatoes, kumara, and pumpkin

Much of the produce grown and sold through the site is branded under the true earth™ branding label. true earth™ food products are sold to wholesalers, food processing and manufacturing companies, selected supermarkets and speciality stores, with a small portion exported to Australia and Asia. . . 


Rural round-up

November 24, 2018

Whanganui berry farm forced to close pick-your-own strawberry service – Jesse King:

Popular family attraction Windermere Berry Farm has cancelled pick-your-own days after repeated thefts and other poor behaviour.

For the second year in a row, staff have been forced to put a temporary stop to the farm’s pick-your-own strawberry service.

Yesterday, people who had paid for the experience were seen wrenching a waratah out of the ground and picking strawberries from a block that was off-limits. . . 

 Fonterra is big but Mataura (nutritionally) aims to be world’s best – Point of Order:

Earlier this week Point of Order drew attention to the contrasting fortunes of key components within New Zealand’s dairy sector, which by any account is a mainstay of the country’s export industry. In that instance it was the contrast between the report of rising revenue and profit of specialist milk supplier A2 Milk and the slide in Global Dairy Trade auction prices likely to lead to another downgrade in the milk payout for Fonterra suppliers.

The contrast was heightened later in the week, first with speculative reports that Fonterra is putting up for sale the iconic icecream company Tip Top (which could yield $400m to reduce debt) as well as its South American operations. . . 

Effluent monitoring paying dividends:

An innovative approach to monitoring dairy farm effluent runoff is reaping rewards for farmers and the environment.

Taupo milk processor Miraka, with about 100 suppliers, is offering bonuses to suppliers who meet the five criteria set out in its Te Ara Miraka Farming Excellence programme: people, environment, animal welfare, milk quality and prosperity.

NZ agricultural technology company Regen is helping Miraka farmers manage their effluent more effectively with a smartphone app. This texts daily effluent irrigation recommendations to farmers, and logs data to prove compliance, meeting the company’s caring-for-the-environment criteria. . . 

Merino muster heads out on the highway – Sally Rae:

 It was hard to know which was the more spectacular sight on the snow-blanketed Lindis Pass yesterday – the weather or the wethers.

Munro family members were continuing a tradition of driving sheep between their two pastoral lease properties, Rostriever, at Otematata, and Mt Thomas, on the south side of the Lindis summit. 

At about 67km, John Munro reckoned it could be the longest sheep drive in New Zealand. . .

Frustrated farmer’s consent renewal attempts :

Turakina dairy farmer Andrew Major is frustrated by the difficulty of renewing his existing consent to spread effluent on sandhills.

He’s had the consent for 24 years. It is due for renewal next year and he is beginning the process of applying to Horizons Regional Council.

He was hoping to be offered help, but has been told he will be emailed a form to fill in.

It’s good that he’s applying early, Horizons Regional Council strategy and regulation manager Dr Nic Peet said. Applying six months before the consent is due to expire means he will be able to continue to operate under the old consent until the new one is decided. . . 

Woolshed injuries targeted :

The wool industry wants a new online training tool to become part of every woolshed in the country, so that injuries occurring in and around the sheds can be reduced.

Tahi Ngātahi was officially launched at the New Zealand Agricultural Show by shearing and farming industry leaders.

New Zealand Shearing Contractors’ Association president Mark Barrowcliffe said most wool harvesting injuries were preventable and all have a detrimental effect on everyone working in the business. . . 

 

Blades shearers cutting a track for France 2019

South Canterbury shearers Tony Dobbs and Allan Oldfield have confirmed their places at the 2019 world shearing and woolhandling championships.

With Fairlie farmer, Dobbs, again winning the New Zealand Corriedale blades shearing championship final, and Geraldine shearer Oldfield placing fourth, it confirmed their positions as winner and runner-up in a series of eight competitions which started at Reefton in February.

They become the first part of the Shearing Sports New Zealand team confirmed for the 18th world championships to be held in Le Dorat, France, on July 1-7. . . 

Milk production up 12% on Donald Pearson Farm:

It’s been a great start to the season for the Auckland dairy farm owned by NZ Young Farmers.

Milk production on the 74-hectare Donald Pearson Farm (DPF) is up “12 per cent on last season”.

The farm’s new manager, Tom Ruki, is being credited with the rise. . . 

Students to learn about food and farming in new ag curriculum – Andrew Norris:

Recommendations from a review into agricultural education and training in NSW completed in 2013 is bearing fruit, with the roll-out of new mandatory agriculture components in the school curriculum from next year.

The Pratley Review was conducted by Jim Pratley, the Foundation Dean of the Faculty of Science and Agriculture at Charles Sturt University, Wagga Wagga.

NSW Education Standards Authority inspector for technology education, Mark Tyler, said recommendations from this review played a crucial role in the introduction of these new courses. . . 


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