Shareholders back SFF

August 15, 2016

Silver Fern Farms’ shareholders have backed the board in its plan to enter into partnership with Shanghai Maling:

A strong majority of 80.4% of votes in favour of the 50/50 partnership with Shanghai Maling reinforced Silver Fern Farms Board’s position that the partnership is in the best interests of shareholders and the Co-operative.

The resounding support from shareholders came at a Special Meeting requisitioned by Messrs John Shrimpton, Blair Gallagher and a group which included 31 other shareholders who supported a statement stating they wanted to stop the $261m investment into Silver Fern Farms.

The 80.4% of shareholders’ votes in support of the partnership follows the result of the October 2015 vote, where 82% of votes cast supported the transaction. Both vote results exceeded the 75% Special Resolution threshold put forward by the Requisitioners. Chairman Rob Hewett said it was pleasing shareholders remained overwhelmingly supportive of the partnership.

“While the Board has clearly stated its view that the outcome of this meeting could not bind the company given the valid and binding approval last October, it is pleasing to see shareholders reaffirm their support and maintain their confidence in this exciting opportunity to create a sustainable Silver Fern Farms,” Mr Hewett said.

Mr Hewett said the partnership would create a strong Silver Fern Farms.

“This partnership will enable us to generate higher, sustainable returns for our shareholders.

“Shareholders have again made it clear they want progress for their company. They want meaningful change and are genuinely excited about the prospects presented through this significant investment and partnership with Shanghai Maling.

“The Board has strongly disagreed with the negative stance on the transaction taken by Messrs Shrimpton and Gallagher. They have caused significant disruption and their actions have been damaging to the company. Their allegations have proven to be entirely unfounded. Independent reviews by both the Financial Markets Authority and the Registrar of Companies have found no issue with the information provided to shareholders in October 2015 or the actions of the Directors.

Chief Executive Dean Hamilton said the process to complete the transaction had continued with all outstanding information now with the Overseas Investment Office for its consideration.

“We remain confident that we will achieve OIO approval prior to 30 September, and proceed to complete the transaction by 4 January 2017 as previously announced.

“The clear message from the voters is to get on with it, and realise this opportunity ahead of us.”

2610 shareholders voted representing 62.15% of eligible votes.

John Shrimpton says he accepts that shareholders have spoken.

New Zealand First which has also been a very vocal opponent of the plan continues to show it doesn’t understand the issue:

New Zealand First says Silver Fern Farms’ shareholders will regret selling majority control of their co-op to the Chinese but expects the Overseas Investment Office will greenlight it at breakneck speed.

“Today was the owners of Silver Fern Farms last chance to preserve one of New Zealand’s great assets for present and future farmers,” Mr Peters says. . . 

“How is it that foreigners can see value in what we produce, but the producers and this government can’t? Meat progressively joins forestry and increasingly dairying to condemn farmers as price takers at the bottom of the heap. . . 

This was a matter for shareholders not politicians.

SFF needs a large investment if it is to survive. Shareholders weren’t prepared to invest more and the company wasn’t able to get other investment from within New Zealand.

If the partnership doesn’t go ahead the company has no future, and even if it does get OIO approval, SFF has a lot of work ahead of it.

The deal leaves Alliance Group as the only co-operative in the meat industries, farmers who prefer that model can choose to support that company.


Rural round-up

June 27, 2016

Brexit has major implications for the New Zealand sheep and beef industry:

“We are concerned about the future of New Zealand’s sheep and beef exports to the UK and the EU following the UK’s vote to leave the EU,” says Beef + Lamb New Zealand and the Meat Industry Association of New Zealand.

“Our sheep and beef trade to both the UK and EU are inextricably linked through quota access and both are likely to be affected,” said Sam McIvor, CEO of Beef + Lamb New Zealand.

The EU is New Zealand’s most valuable market for red meat and associated co-products, accounting for over NZ$2 billion in trade last year. . . 

Banks put heat on meat co-ops – Neal Wallace:

Banks appear to be running out of patience with meat company debt, asking both co-operatives to reduce their level of borrowing.

Both Silver Fern Farms and Alliance Group have confirmed they have been told by their banks to reduce seasonal and core debt, but Alliance chairman Murray Taggart said his board had decided to do that anyway.  

Late last month Alliance chief executive David Surveyor told shareholders at the Alliance Pure South Conference banks had sent a strong message to the co-operative to reduce debt. . . 

Changing world will suit our red meat sector – Allan Barber:

When sheep and beef farmers are questioning whether they will ever receive the returns they need, there is potentially considerable hope for the future. The changing demographics and spheres of global influence indicate a substantial change in the relative economic power of the markets with which we trade.

The ANZ Bank’s June report focuses on new horizons in Asia, highlighting the top six countries we already trade with, representing 80% of New Zealand’s bilateral trade with Asia, and a second division of up and coming prospects. The report’s focus on Asia means our trade with the rest of the world is excluded from the analysis, but it provides a timely reminder of the opportunities available in markets not previously seen as easy or possible to develop.

These opportunities are further underlined by the Regional Comprehensive Economic Partnership negotiations held recently in Auckland involving 16 Asian countries which importantly include India. . . 

Dairy cow cull eases – Alan Williams:

Dairy cow cull numbers are finally reducing after spending most of the processing season in line with the high tallies of last year.  

Most people expected the cull to end early in the season but the numbers have only been falling since the end of May, week 33 of the killing season.

Going in to that week the tallies were down only 0.3% on the same time last year, at about 800,000; then the week itself was down 7% on last year and the companies have indicated the trend has continued. . . 

Silver Fern Farms seeks extension on Chinese deal :

Meat processing company Silver Fern Farms is seeking a time extension for official approval of its controversial deal with a Chinese company.

It also wants to defer a special meeting called by unhappy shareholders.

The joint venture with China’s biggest meat processor, Shanghai Maling, was approved by a majority of shareholders last October but still needs government and Overseas Investment Office approval. . .

Vineyards in growth mode – Sally Rae:

New Zealand’s vineyard area could expand by as much as 7000ha during the next five years, an almost 20% boost to the present producing area.

The expansion was under way, with an estimated 1800ha of grapes in the ground coming into production by the 2018 vintage, ANZ’s latest Agri Focus report said.

Marlborough would remain the epicentre of the sector at 65%-70% of the growing area, with the next largest areas being Hawke’s Bay, Otago and Gisborne. . .


Rural round-up

April 4, 2016

Alliance taking NZ produce to the world – Sally Rae:

Alliance Group is looking at how to “take a New Zealand Inc story to the world”.

Chief executive David Surveyor, who has returned from a trip to Asia, said the company was happy to do that with other industry players, whether it was the likes of kiwifruit growers, cheese or wine makers.

It was also happy to do it with other red meat companies “where it makes sense”, Mr Surveyor said. . . 

Eyes on lamb price as supply falls – Sally Rae:

Time will tell which “fork in the road” lamb prices will take over the coming months, ASB rural economist Nathan Penny says.

While the good news was that prices had stopped falling, the bad news was that prices remained low.

In the latest ASB rural commodities outlook, Mr Penny said one possibility would be “more of the same”, with prices remaining low until the spring before a modest recovery began.

That pattern would be consistent with demand remaining weak, particularly in Europe and the Middle East. . . 

Harvest brings grain glut – Annette Scott:

Canterbury is awash with feed grain, forcing cropping farmers to pay for off-farm storage for the surplus.  

But despite treading water over the next 12 months the industry was confident it had the resilience to ride out the glut, Federated Farmers arable chairman Guy Wigley said.  

The strong harvest this season, combined with a lot of grain carried over from the previous year meant farmers had to account for significant quantities of uncommitted grain. . . 

Farmers win with revived stream

Fish and Game has rewarded the Waikuku Water Management group for its efforts to protect a north Canterbury stream.  

The group is the first recipient of North Canterbury Fish and Game’s Working with Nature Award for outstanding efforts to improve local freshwater habitats.  

The award recognises what Fish and Game describes as the dedicated efforts of a number of farmers to protect and give back to the Waikuku Stream. . .

Farmer events spread message – Glenys Christian:

Northland dairy farmers have been urged to put strategies in place to move forward, monitor progress and keep communication up.  

A facilitation day organised by the Rural Support Trust, DairyNZ and Federated Farmers in Whangarei attracted more than 30 farmers.  

“That’s a good turnout for the north as some have started autumn calving,” Northland Rural Support Trust co-ordinator Julie Jonker said. . .

 

 

Hat tip: The Farming Show


Rural round-up

February 17, 2016

Urban ideals quash rural spirit – Craig Wiggins:

Over the last few years I have stood in front of many, commentating rural sports in many rural communities in three different countries and feel it’s time to put some perspective into the emotive protests for and against rural activities.  

We have just witnessed the SAFE campaign against the dairy industry and through the summer the anti-rodeo campaign gaining media coverage.  As in the case of the SAFE coverage, it’s easy fodder for urban-based journalists to get consumer buy-in and notoriety for their own careers.  

I pat on the back anyone who is passionate about what they believe in or against and stand up for it.

I am, however, against sensationalising facts and issues in the pursuit of self-promotion and a win over others at all costs, whether it be the truth or not.  

To win an argument one should be more knowledgeable about the facts the opposing side is arguing than they are. . . 

Landcorp scraps Shanghai Pengxin deal – Neal Wallace:

Landcorp will not renew its sharemilking contract with Chinese corporate dairy farmers Shanghai Pengxin when it expires at the end of next season.  

This brings to an end an arrangement that started in November 2012 when Shanghai Pengxin bought 16 Central North Island dairy farms that belonged to the Crafar family. . . 

Alliance enforces shareholding commitment to match supply – Allan Barber:

After many years competing for livestock without compelling suppliers to invest in the full number of shares required in principle, Alliance Group has seized the opportunity offered by Silver Fern Farms’ likely shareholding change to review its capital base.

The uncharitable observer would presume this action is necessary to raise more capital for balance sheet or investment purposes. However Alliance chairman Murray Taggart is adamant this move is all about correcting the imbalance between those suppliers who are fully shared up and those who have made a lesser commitment. The adjustment will take place gradually in line with the rate of supply with deductions of 50 cents per lamb, sheep or calf, $2 per deer and $6 per head of cattle. . . 

Has our dairy industry gone too far? – Julian Lee:

We all know the importance of our dairy industry and its existence to our country.

It’s our number one industry — we get that.

But has dairy gone too far in the beautiful Mackenzie Country?

The Mackenzie Basin is a stunning piece of landscape in the South Island — a desert spotted with electric blue lakes surrounded by mountains.

It is the last place you would think you would want to put cows. . . 

Open Country Dairy posts record annual profit in 2015 – Tina Morrison:

(BusinessDesk) – Open Country Dairy, the dairy manufacturer controlled by Talley’s Group, posted a record annual profit last year even as revenue fell.

Profit increased 16 percent to $34.4 million in the year ended Sept. 30, 2015, according to the Auckland-based company’s annual report. Revenue slid 24 percent to $688 million while the cost of sales sank 28 percent to $620.5 million, according to the accounts.

The company didn’t pay a dividend and has previously said it was investing in infrastructure for future growth. . . 

Weaknesses in industry cohesion and international marketing are costing kiwi farmers:

Federated Farmers Meat and Fibre Chair Rick Powdrell is calling for action to be taken to address issues in the marketing of kiwi lamb overseas – particularly in the UK – to prevent our sheep farmers continuing to face low returns.

Speaking at Federated Farmers Meat & Fibre Council in Wellington today, Mr Powdrell said meals featuring lamb had fallen 7% in the UK, while lamb consumption in the US was rising at 10% per year.

Mr Powdrell has just returned from the American Sheep Industry Conference in Scottsdale, Arizona, where he had seen first-hand some of the initiatives that are underpinning this growth. . . 


Rural round-up

February 13, 2016

Proliant’s Feilding plant expected to bolster Manawatu economy – Paul Mitchell:

Proliant’s new cattle blood plasma manufacturing plant in Feilding is expected to be a huge boost to Manawatu’s economy.

The $30 million plant takes blood from cattle and makes it into products such as diagnostic test kits and vaccines for research and in drug production.

It was officially opened on Friday by Economic Development Minister Steven Joyce.

Vision Manawatu regional manager Mark Hargreaves said the benefits to the region’s economy started two years ago with the plant’s construction bringing a lot of jobs to Manawatu contractors and freight companies.  . . 

Proliant Biologicals Opens New Zealand Facility:

Proliant Biologicals is proud to announce the opening of its New Zealand Bovine Serum Albumin (BSA) manufacturing facility. The facility is located on the North Island of New Zealand, in Feilding.

The facility was designed and constructed to replicate the “Closed Loop” system, developed and instituted in Proliant’s U.S. facility located in Boone, Iowa. The equipment design and installation was done to functionally duplicate the systems in the U.S. facility, with critical processing systems coming from the same vendors used for U.S. installations. . . 

All about fariness – Neal Wallace:

Alliance Group is addressing inequality not accumulating fresh capital by deducting money from suppliers’ animal payments, chairman Murray Taggart says.  

From today the co-op will deduct 50c a head from lamb, sheep and calves, $2 a head from deer and $6 a head from cattle for shareholders who need to increase their shareholding to match their supply calculated on a three-year rolling average.  

Taggart said the move was about creating equitable shareholding and not a capital-raising move. . . 

MIE won’t get B+LNZ backing:

Two remits being presented by the Meat Industry Excellence to Beef + Lamb New Zealand’s annual meeting next month won’t get the industry-good board’s backing.  

The board considered both the remits and agreed not to support either, chairman James Parson said.  

In its push for reform, despite an agreement for Chinese company Shanghai Maling to buy into Silver Fern Farms, MIE last week notified two remits it would present to the B+LNZ meeting on March 23.  

The remits would be mailed with the B+LNZ voting papers this week with MIE chairman Dave McGaveston urging farmers to get thinking early. . . 

Dairy farmers visit Vatican for help – Chris McCullough:

European dairy farmers have reached out to Pope Francis for some spiritual blessing, in the hope it can help boost the ailing milk sector.

Around 140 dairy farmers, who are members of the European Milk Board, travelled to the Vatican in Rome to ask the Pope for some assistance.

They travelled from France, Lithuania and many other countries, all asking for the same thing, a future for their industry. . . 

Red wine and a dinner party – Grassroots Media:

I promise this isn’t a blog about the effects of red wine after a dinner party. Ok maybe it is, but not in the way you’re thinking.

In May 2015 I saw myself at a cross roads – ‘What did my future hold?’ I had a secure job, I was working with great people but felt I was missing a little something.

It turns out that little something, was a big challenge.

While having drinks with the Kellogg’s Rural Leadership cohort in Wellington, I came across participants of the Agri-Women’s Development Trust Escalator course, who were also enjoying a wine or two. There, I met two women who would eventually change the road I was travelling on. . . 

 

Food Tank: The Food Think Tank's photo.


Rural round-up

February 11, 2016

Mixed outlook for New Zealand agriculture in 2016 – industry report:

New Zealand’s agricultural sector is looking at mixed prospects in 2016, with dairy facing another difficult year but most other sectors expected to perform well, according to a new industry report.

In its Agribusiness Outlook 2016, global agricultural specialist Rabobank says dairy prices continue to be weighed down by strong supply growth, particularly out of Europe after the recent removal of quotas.

Releasing the report, Rabobank general manager Country Banking New Zealand Hayley Moynihan said the recovery in dairy prices now risks arriving too late to enable a confident start to the 2016/17 season. . .

Marlborough farmers battle two-year drought

Farmers in Marlborough are making the best of some of the toughest climatic conditions in a long time, Beef and Lamb New Zealand says.

The industry body’s northern South Island extension manager, Sarah O’Connell, said recent rain had lifted spirits in the region but had not broken the two-year drought.

The past two seasons were some of the hardest farmers have had, Ms O’Connell said. . .

Alliance plans to start docking farmer payments for shares to bolster balance sheet – By Tina Morrison

(BusinessDesk) – Alliance Group, New Zealand’s second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements.

From Feb. 15, Alliance will withhold 50 cents per head for lamb, sheep and calves; $2 per head for deer; and $6 per head for cattle, it said in a letter to shareholders. The payments will go towards additional shares in the cooperative and will only apply to farmers who have fewer shares than required, it said.

Alliance is moving to entrench its cooperative status as its larger rival Silver Fern Farms waters down its cooperative by tapping Chinese investor Shanghai Maling Aquarius for capital to repay debt, upgrade plants and invest for growth. . . 

New PGP programme to boost wool industry:

Primary Industries Minister Nathan Guy has welcomed a new Primary Growth Partnership programme aimed at lifting the profitability and sustainability of New Zealand strong wool.

‘Wool Unleashed’, or W3, is a new seven-year $22.1 million Primary Growth Partnership (PGP) programme between the Ministry for Primary Industries (MPI) and The New Zealand Merino Company.

The programme is expected to contribute an estimated $335 million towards New Zealand’s economy by 2025. . . 

New Primary Growth Partnership programme sets sights on strong wool:

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand’s strong wool sector—a partnership that could see an additional $335 million contribution towards New Zealand’s economy by 2025.

“‘Wool Unleashed’, or W3, is a new 7-year, $22.1 million Primary Growth Partnership (PGP) programme led by NZM that will derive greater value from New Zealand’s strong wool,” says Justine Gilliland, Director Investment Programmes at the Ministry for Primary Industries. . . 

World’s best Pinot Noir winner found passion by chance – Jendy Harper:

Imagine arriving in a foreign country at the age of 13, unaccompanied, knowing no one and not being able to speak the language.

This was Jing Song’s experience when she came from China to Christchurch 16 years ago.

At her family’s advice and expectation, she became an accountant but no one guessed she would find her true passion in a Central Otago paddock.

Fast forward 16 years and Ms Song collected the trophy for the best Pinot Noir in the world at the IWSC competition in London last year. . .

NZ beef exports to Taiwan rise to a record, propelling it to 3rd largest market – Tina Morrison:

(BusinessDesk) – New Zealand beef exports to Taiwan rose to a record in 2015, propelling it to the country’s third-largest beef market behind the US and China.

In 2015, New Zealand’s beef exports to Taiwan jumped 36 percent to $188.6 million, while the volume increased 20 percent to 23,442 tonnes, according to Statistics New Zealand data compiled by the Meat Industry Association. That pushed it above Japan in value and ahead of Japan and Korea in volume to become the country’s third-largest beef market.

Taiwan also takes higher-value meat, with an average value last year of US$5.68 per kilogram, compared with US$5.08/kg for the US, and US$4.94/kg for China, according to AgriHQ data. . . 

NZ small dairy farmers content with their lot:

New Lincoln University research has found many small dairy farmers are content with the size of their operation, despite the constant calls for economic growth.

Dr Victoria Westbrooke and Dr Peter Nuthall, from the Faculty of Agribusiness and Commerce, surveyed 330 randomly selected farmers running small dairy farms for the small farmers’ organisation (SMASH). The project was funded by  via OneFarm.

“It was clear from this research, and similar previous work, that the farmers were content to simply carry on working their current farm,” Dr Westbrooke says. . . 

LIC posts half year result:

Livestock Improvement Corporation (NZX: LIC) has announced its half-year result for the six months ended 30 November 2015.

LIC total revenue for the six month period was $145 million, 9 per cent down on the same period last year. Net profit after tax (NPAT) was $15.9 million, down 46 per cent from the previous year.

LIC signalled reduced earnings in October (NZX, 20 October 2015), as a result of the lower forecast milk payout and reduced spending on-farm.

It is now expected that the year-end result will be closer to a break-even position, chairman Murray King said. . .

Silver Fern Farms Premier Selection Awards 2015 winners announced:

Auckland’s Botswana Butchery has taken out the title of Premier Master of Fine Cuisine at the Silver Fern Farms Premier Selection Awards, held in Auckland last night.

The popular restaurant also won awards for Best Beef Dish and Best Metropolitan Restaurant.

Executive Chef Stuart Rogan, who manages Botswana Butchery in Auckland and Queenstown as well as Auckland’s Harbourside Ocean Bar and Grill, impressed judges with his dish: Silver Fern Farms Reserve beef eye fillet, braised short rib with parsley, mustard and horseradish crust, carrot puree, asparagus, whipped garlic and cep jus. Head judge Kerry Tyack described Rogan’s dish as ‘consistent and faultless’. . . 


Rural round-up

February 3, 2016

Booklet kicks off Fonterra structure review – Hugh Stringleman:

Fonterra’s farmer-shareholders have received a preliminary booklet on the co-operative’s governance and representation, raising many questions but not providing answers.  

It begins a five-month journey to a revised structure more appropriate for Fonterra’s size, complexity and global ambitions.  Farmer-shareholders will be expected to contribute to the review and vote on the final proposal in May. . . 

Rabobank announces new head of Food & Agri Research:

Rabobank Australia & New Zealand Group has announced the appointment of Tim Hunt as new General Manager of its Food & Agribusiness Research (FAR) division.

Mr Hunt takes on the role after five years with Rabobank in New York, where he served in the international position of Global Strategist – Dairy.

In his new role, Mr Hunt will lead Rabobank’s highly-regarded food and agri commodities research team – comprising 10 specialist analysts – in New Zealand and Australia. . . 

Alliance drafter has eye for winner – Sally Rae:

Warwick Howie received a little good-natured ribbing when he won the Paddock to Plate competition at the recent Otago-Taieri A&P Show.

Mr Howie, a drafter for Alliance Group, laughed that he had ‘‘copped a bit of flak” following the victory.

The competition, which attracted 41 entries, has become an annual fixture at the show, with proceeds going to the A&P Society. . . 

Course already tidy for Legends – Sally Rae,

When it comes to maintaining the Tokarahi golf course, greenkeeper Marty McCone has the same philosophy as for his farm – he likes it tidy all the time.

So preparing for this month’s PGA Legends Tour, which is returning to Tokarahi for the second year, did not require an extraordinarily massive effort.

‘‘I try and keep the course up to speed all the time. There’s a lot of little things you do to have it really tip-top,” Mr McCone said. . . 

Synlait revises milk price forecast to $4.20:

Synlait Milk has revised its forecast milk price for the 2015 / 2016 season from $5.00 per kgMS[1] to $4.20 per kgMS.

Chairman Graeme Milne said the revision is driven by the sustained low global commodity prices since September 2015, and a view that the recovery will be slower than anticipated.

“Our previous forecast of $5.00 kgMS expected prices to recover somewhat by this stage in the season, however this hasn’t happened and our revised forecast reflects this,” said Mr Milne. . . 

World Wetlands Day celebrated:

World Wetlands Day is a chance for New Zealanders to find out more about some of the country’s most important natural treasures, Conservation Minister Maggie Barry and Associate Conservation Minister Nicky Wagner say.

To mark the day the Department of Conservation has released a new online resource,Our Estuaries, to help people explore and look after the wetland environment.

“New Zealand has more than 300 estuaries, and they are home to a wide range of native plants, fish and birds,” Ms Barry says. . . 

Rethink needed over dairy farm planting incentives:

The cost and benefits of planting trees to help mitigate environmental effects of dairy farming need to be shared by us all for it to succeed, a new study says.

Evaluation of an agri-environmental program for developing woody green infrastructure within pastoral dairy landscapes: A New Zealand case study says Government incentive programs are ineffective in overcoming barriers to planting such as the higher cost and slow growth of native plants, and the perception of planting being of little direct benefit to farmers’ operations.

Lead author, Lincoln University Landscape Ecology Senior Lecturer, Dr Wendy McWilliam, says the Government and the dairy industry need to work closely together to develop and maintain a landscape-scaled woody vegetation network on both private and public land. . .

Forestry show NZ way to better safety:

A sharp drop in forestry deaths and serious injuries after a massive safety overhaul in 2014 shows what can be achieved when an industry joins together to make improvements, the Business Leaders’ Health and Safety Forum says.

The fall is welcome and sets an example for other industries to follow, says Forum Executive Director Francois Barton.

“Forestry has shown us some of the things that need to be done to bring down high fatality and serious injury rates in an industry,” Francois says. . . 

Good Progress – But More Work to Do to Make Forestry Safe:

A reduction in deaths and serious injuries in forestry since 2013 is encouraging but there is more work to be done yet, the Forest Industry Safety Council (FISC) says.

WorkSafe figures show serious injuries halved to 78 in 2015 from 160 in 2013, FISC National Safety Director Fiona Ewing says.

“The trend is going in the right direction but we can’t rest on our laurels. Three forestry workers died in 2015. That’s well down on the 10 who died in 2013 but it’s up from just one in 2014.. . .

Irrigation scheme loan approved:

An $8 million loan from the Selwyn District Council means design of stage two of a multi-million dollar irrigation scheme can go ahead.

The council approved the loan to Central Plains Water last month, with the money expected to transfer over next week.

But a community group told RNZ News rate payers should not be lending money to fund a private shareholder scheme. . .

Ruataniwha Dam: Investor mix still being finalised:

Hawke’s Bay Regional Council’s investment company (HBRIC) says work on getting farmers to sign up to buy water from the proposed Ruataniwha Dam is on hold until the project’s investor mix becomes clearer.

HBRIC has been looking for institutional investors to put money into the dam since Trustpower and Ngai Tahu pulled out in early 2014, saying the risks surrounding the dam were too high and the returns too low.

The company said it had countersigned contracts for 31 million cubic metres of water with a minimum of 45 million cubic metres needed to be sold to make construction financially viable.

It said finalising the investor mix for the Ruataniwha Dam was its current focus. . . 

Global slump in fert prices benefits NZ farmers:

New Zealand farmers stand to benefit from significant savings on their farm nutrient inputs with Ballance Agri-Nutrients’ latest round of price reductions, effective 31 January.

The price review sees urea drop $50 to $525, DAP reduce $25 per tonne, sulphate of ammonia by $15 and potash by $10. These changes will flow through to product blends.

Ballance CEO Mark Wynne says the move comes on the back of a global slump in fertiliser prices, driven by strong supply and soft demand. . . 

Lowest urea price since 2007:

Farmers stand to benefit from a $50 per tonne saving for urea from 1st February, when Ravensdown will drop its prices.

Chief Executive Greg Campbell says he is pleased that Ravensdown is again leading on a price reduction for farmers who are facing increasing costs in many aspects of their business whilst their returns are under pressure.

“We said it not long ago, with our recent superphosphate cap,” Greg says, “that we are about delivering all-year value to our shareholders, and we’re demonstrating it again with urea and other products.” . . 


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