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.” . . 


Rural round-up

January 13, 2016

Alliance moves to deepen cooperative culture as Silver Fern sells stake – Tina Morrison:

Alliance Group, New Zealand’s second-largest meat processor, plans to entrench its cooperative status, encouraging farmers to ‘share up’ at a time larger rival Silver Fern Farms is watering down its cooperative by tapping a Chinese investor for capital to repay debt, upgrade plants and invest for growth.

Farmer groups failed last year to force a mega-merger on the country’s two large South Island-based meat cooperatives. Both changed chief executives last financial year and Dunedin-based Silver Fern is now awaiting regulatory approval for the $261 million sale of half its business to Shanghai Maling Aquarius, while Invercargill-based Alliance is moving its business model further towards a cooperative system. . . 

Milking sheep has potential to earn billions of dollars for NZ –  Jill Galloway:

Isobel Lees did a veterinary degree at Massey University and is now in Grenoble, France, doing a post graduate study in sheep milking.

She says her research investigating if New Zealand can establish an internationally competitive sheep dairy industry might shed light about how farmers might set up the industry.

“This research focused on the lessons learnt from France, a world leader in sheep dairy.”

Her studies indicate there is vast potential for New Zealand to establish a sheep dairy industry and for it to be a billion dollar contributor to the economy.

“New Zealand has a competitive advantage and superior performance. It has pasture-based agricultural production systems, leading innovations from the dedicated agricultural research community and market leading standards for sustainability, animal welfare and food safety.” . . .

Turangi Maori land trust brings in Chinese partners for sheep milk expansion – Paul McBeth:

(BusinessDesk) – Waituhi Kuratau Trust, the Turangi-based Maori land trust, has teamed up with Chinese interests to develop its sheep-milking interests as part of a plan to sell into the world’s most-populous nation.

The trust sold a leasehold interest in 490 hectares of land in Kuratau to Maui Milk for $1.2 million, which has been slated for development into a sheep dairy farm, according to the Overseas Investment Office summary approving the transaction. The trust owns 40 percent of Maui Milk, with the remainder held by four Chinese nationals. . . 

Govt happy with farm conditions monitoring:

The Government is ruling out an an inquiry into the pay and conditions of farm workers in New Zealand, saying standards are already in place.

Former Council of Trade Unions head Helen Kelly made the call, saying many farm workers were working up to 70 hours a week for low pay, and that was leading to high staff turnover. 

She said fatigue was a major cause of workplace accidents, and an official inquiry was needed to introduce regulations.

But Workplace Relations Minister Michael Woodhouse said the Labour Inspectorate already monitored non-compliance with minimum employment standards in the dairy sector. . . 

Right attitude key to $70k jobs – Tamsyn Parker:

A farm worker with the right attitude could take fewer than five years to get to a $70k-plus salary, says an industry leader.

Andrew Hoggard, a farmer who is on the board of farming body Federated Farmers, said Seek data showing a 14 per cent rise in the average salary for the sector was probably a little high as it was based only on jobs advertised through that business. . . 

Federated Farmers mourns the loss of life member Gordon Stephenson:

Federated Farmers expresses their deepest sympathies to the family of farmer and environmentalist Gordon Stephenson who died on Boxing Day.

A stalwart of Federated Farmers, Mr. Stephenson served as national chairman of the dairy section from 1973 to 1977 and instigated the Farm Environment Awards in 1991.

“Gordon was instrumental in the formation of QEII National Trust and the legacy he’s left behind can be seen all around the country in the land and native forests now voluntarily protected by farmers through the Trust,” says Federated Farmers National President Dr. William Rolleston. . . 

Farm Environment Awards Founder Leaves Lasting Legacy:

The passing of Farm Environment Awards founder Gordon Stephenson is a huge loss for New Zealand agriculture, Simon Saunders, chairman of the New Zealand Farm Environment Trust (NZFET), says.

“Gordon was a farsighted and inspirational leader. As a passionate advocate for conservation he was steadfast in his belief that good farming and good environmental management go hand in hand. This message is still very much at the heart of the Ballance Farm Environment Awards (BFEA) today.”

Mr Saunders says the establishment of NZFET and the success of the BFEA programme are legacies of Gordon Stephenson’s drive and vision. . . 

Federated Farmers grieves loss of former Chief Executive:

Federated Farmers is saddened by the death of former Chief Executive Tony St Clair.

Mr. St Clair served as Chief Executive between 1997 and 2005 following several years as Executive Director of the Victorian Farmers Federation.

“Tony was an inspirational and passionate advocate for agriculture and farming and he had an intimate and detailed knowledge and understanding of Federated Farmers,” says Federated Farmers National President Dr. William Rolleston. . . .

 

Fonterra Announces Record Export Volumes in December:

Fonterra Co-operative Group Limited today announced it has exported record volumes for the month of December 2015.

Export data for the Co-operative in December confirms the new record for a single month’s volume, with more than 300,000 MT shipped to its global markets.

December’s volume was approximately 10 per cent higher than Fonterra’s previous record month in December 2014. . . 

NZ honey exports double in November on manuka demand – Tina Morrison::

(BusinessDesk) – New Zealand honey exports doubled in November as the country benefited from demand for high-value manuka honey.

The value of honey exports jumped to $27.4 million in November from $13.6 million the same month a year earlier, according to the latest Statistics New Zealand data. That helped boost the annual value of honey exports in the 12 months through November by 45 percent to $281 million, the figures showed.

New Zealand is the world’s third-largest exporter of honey by value, behind China and Argentina. However it is only the 16th biggest global supplier on a volume basis, reflecting the premium price garnered for manuka honey, which accounts for as much as 80 percent of New Zealand exports and is prized for its health benefits. . .

Final report into killer swedes released:

The group investigating the fatal poisoning of hundreds of animals by swedes in Southland has issued one last warning to farmers not to feed herbicide tolerant swedes to cows in the spring.

The Southland Swedes working group today released its final report into the incident which left hundreds – if not thousands – of sheep and cows dead across the region.

In 2014 farmers across Southland reported sick, dead and dying livestock – after they’d been fed on swedes – mostly a new herbicide tolerant variety developed and sold by PGG Wrightson Seeds.

Farmers were subsequently warned by industry experts not to feed the HT Swede variety to cows when they were heavily pregnant or with calves – because the chemically mutated HT swedes were producing unnaturally high levels of glucosinolates that are toxic to livestock. . . 

 Recreational fishing parks proposed in Hauraki Gulf and Marlborough Sounds as part of Marine Protected Area reform:

The Government has today launched a consultation document on a new Marine Protected Areas Act to replace the Marine Reserves Act 1971 that includes proposals for recreational fishing parks in the inner Hauraki Gulf and Marlborough Sounds.

“We are proposing a new system of marine protection that will include marine reserves, species-specific sanctuaries, seabed reserves, and recreational fishing parks. This more sophisticated approach with four different types of marine protection is similar to the graduated approach we take to reserves on land that vary from strict nature reserves to those for a specific or recreational purpose,” says Environment Minister Dr Nick Smith.

“We want to improve community and iwi involvement in marine protection and develop a comprehensive network of areas that better protects marine life and which enhances New Zealanders’ enjoyment of our marine environment.” . . 

Seafood industry supports sustainable fisheries:

The seafood sector supports effective marine conservation, its Chief Executive Tim Pankhurst said today.

He was commenting on today’s release of a consultation document on a new Marine Protected Areas Act to replace the Marine Reserves Act 1971 that includes proposals for recreational fishing parks in the inner Hauraki Gulf and Marlborough Sounds.

The proposals would cut commercial fishing in the proposed areas. . . 

Easing NZ Dollar Helps Lift Local Wool Market:

New Zealand Wool Services International Limited’s C.E.O, Mr John Dawson reports that the first sale after the Christmas break of approximately 13,700 bales from the North Island saw a generally firmer market in local terms with 98.5 percent selling.

The weighted indicator for the main trading currencies eased 1.3 percent compared to the last sale on 17th December, however compared to the US dollar the New Zealand was back 1.9 percent. This weakening NZ dollar underpinned the market for most types. . . 

Grow Food, Not Lawns's photo.


Rural round-up

December 23, 2015

Proud to be NZ Farmers:

A  campaign designed to tell good news farming stories has caught the imagination of kiwi farmers attracting more than 1000 followers and reaching tens of thousands more in the first 24 hours since launch.  

The Proud to be NZ Farmers campaign, announced yesterday on The Farming Show by prominent beef and deer farmer, Shane McManaway, was kick-started with a Facebook page inviting anyone associated with New Zealand agriculture to share their positive news stories and talk about the pride they feel for their profession.  

Shane McManaway says the #ProudNZFarmers campaign is all about farmers coming out of their shells and showing the world the positive and passionate side of New Zealand farming.  . . 

Proud to be NZ Farmers's photo.
Solar innovation a relief for drought-stricken farmers:

A solar water pump system is helping get much needed water to stock on remote hill country farms and has captured international interest from water-stressed countries.

Central Hawke’s Bay electrical and pumping business Isaacs Pumping & Electrical has been developing the technology over the last two years with support from Callaghan Innovation.

Isaacs Electrical directors Gavin Streeter and Shane Heaton were continually being asked by farmers what options were available to reliably get water to stock without electricity, especially in remote hill country properties. . . .

Shareholder needs focus of manager – Sally Rae:

Nigel Jones is a strong believer in co-operatives.

Mr Jones, who joined Alliance Group as general manager strategy at the end of September, previously spent 16 years with Fonterra, where he had the same role in the ingredients division. Before that, he had an extensive career in internal logistics and supply chain.

Ever since he had been involved in co-operatives, he felt a sense of accountability to the shareholders.‘‘You recognise, in some cases, shareholders have got their entire family wealth entrusted to you,” he said. . . 

Beef and Lamb scientist takes genetics to farmers – Sally Rae:

One of the best parts of Annie O’Connell’s job is connecting with farmers.

Dr O’Connell is South Island extension officer for Beef and Lamb New Zealand Genetics, a position she took up in August.

Her Dunedin-based role focuses on helping commercial farmers and breeders apply genetics to their business objectives.

Beef and Lamb NZ Genetics was established in 2014 to consolidate sheep and beef genetics research and innovation. . . 

NZ export log prices jump to 9-month high on Chinese demand; slowdown looms – Tina M0rrison:

(BusinessDesk) – New Zealand export log prices jumped to a nine-month high amid steady inventories and stronger demand from China, the country’s largest market.

The average wharf-gate price for New Zealand A-grade logs rose to $104 a tonne in December from $92 a tonne in November, marking the highest level since March, according to AgriHQ’s monthly survey of exporters, forest owners and sawmillers. The AgriHQ Log Price Indicator, which measures log prices weighted by grade, increased to 97.11 from 92.51, its highest level since February. . . 

MPI’s SOPI report suggests it is on different planet – Allan Barbeer:

When I read the headline forecast in the December update of the Situation and Outlook for Primary Industries report, my initial reaction was “they must be joking, what planet are they on?” After a slightly more in depth study of their analysis, I am still baffled.

Their prediction for the 2016 year appears to be based on two main premises: firstly product prices will be roughly maintained at present levels due to strong overseas demand and secondly the exchange rate will be 15% lower than at the time of the June update. These factors indicate an increase in export revenue of $1.9 billion, roughly half from red meat and the other half from forestry and horticulture. . . 

Beef + Lamb New Zealand Director Election in Central South Island:

Beef + Lamb New Zealand Western North Island Farmer Director Kirsten Bryant has been elected unopposed.

An election will be held in the Central South Island with candidates, John Gregan of Timaru and Bill Wright of Cave, being nominated for one Farmer Director position. . . 

Kiwifruit industry to benefit from new strategic alliance:

New corporate shareholders for Opotiki Packing and Coolstorage Limited (OPAC) provide the company with a strategic advantage in the growing Eastern Bay of Plenty kiwifruit industry.

Te Tumu Paeroa – the new Māori Trustee, and Quayside Holdings Limited (Quayside) – the investment arm of the Bay of Plenty Regional Council, will each own 10.1% of OPAC following agreement at a shareholders meeting yesterday.

The investment by each is part of an OPAC over-subscribed equity capital raising which totalled $4.85 million. . .

Proud to be NZ Farmers's photo.


Rural round-up

November 30, 2015

Climate change: Call to recognise farmers’ efforts – Anders Crofoot:

The Paris climate change meeting represents an opportunity for the world to agree the terms for the next global effort to reduce emissions.

Negotiations have continued for a number of years and, with the Kyoto Protocol having effectively lapsed at the end of 2012, farmers are hopeful of an agreement which better recognises the services we provide civil society.

For better or worse, the Kyoto Protocol bundled biological emissions from food production together with fossil fuel emissions from industry, energy and transport. With agricultural emissions representing a relatively minor proportion of national emissions among most countries, the focus naturally remains on other sources. . . 

Season has contrasting impact on Silver Fern Farms and Alliance – Allan Barber:

The two biggest meat processors had contrasting experiences during the 2015 season to judge by their annual results and accompanying comments. There is no doubt Silver Fern Farms found life easier than Alliance, with respect to the year in question. SFF must also have heaved an enormous sigh of relief after its improvement from the previous three years.

The bare facts of the differing results are NPAT of $24.9 million and dramatically reduced debt for SFF and $4.6 million NPAT for Alliance accompanied by a marginal reduction in equity ratio. Alliance’s performance was slightly worse than 2014, disappointing as chairman Murray Taggart agreed, whereas SFF’s result was a massive improvement on the previous year. Neither result represented a satisfactory return on assets, but signs for the future are positive. . . 

Federated Farmers signs Land & Water Forum Report but with conditions attached:

Federated Farmers has today added its name to the signatories of the fourth report of the Land & Water Forum after receiving the conditional support of its National Council.

The National Council, meeting in Wellington over 26 and 27 November, comprises the presidents of Federated Farmers’ 24 provinces, its National Board and representatives of its seven industry groups.

“Federated Farmers has been deeply involved in and committed to the Land & Water Forum since its formation in 2009, playing an active role in the development of this and the previous three forum reports,” says Federated Farmers Water spokesperson Chris Allen. . . 

Farm gate milk price won’t recover until mid-2016 – Westland:

Westland Milk Products believes the farm gate milk price will not recover until the middle of next year because overseas buyers have already reacted to predictions of falling production and drought.

Chief executive Rod Quin said the brief upward spike in prices at the Global Dairy Trade auction six weeks ago was overseas buyers moving to secure supply.

Westland Milk Products, which has about 500 shareholders, held its AGM this week and Mr Quin said the payout forecast remained around $4.90 to the early five dollar mark, which was less than farmers needed to break even.

He said that was unlikely to change because it looked like there would be more pressure on prices in the next couple of months. . . 

Silver Fern Farms paid former CEO Keith Cooper more than $1.8M in 2015 – Tina Morrison:

(BusinessDesk) – Silver Fern Farms, New Zealand’s largest meat processor, paid former chief executive Keith Cooper more than $1.8 million last financial year, reflecting his long service with the company.

Cooper, who joined the cooperative in 1989 and was chief executive for eight years, was paid between $1.84 million and $1.85 million in the company’s 2015 financial year ended Sept. 30, Silver Fern Farms said in its annual report, where it is required to detail the number of employees that it paid $100,000 or more.

“The payments made to him reflect a combination of base salary for a period, a short-term incentive related to the prior year, a retention incentive that related to prior and future years, annual and long-service leave as well as a payment that reflected his significant contribution to the company over the prior 18 years, the most recent eight as chief executive,” the Dunedin-based company said. . . 

 

NZ Farming's photo.

 

 


Rural round-up

November 27, 2015

Rural NZ areas sit on ‘powder keg’ as temperatures rise – Mike Watson:

Rural fire authorities are warning farmers and contractors to check for potential ‘hot spots’ inside machinery and farm equipment as temperatures rise in Marlborough.

Marlborough Kaikoura Rural Fire Authority chief fire officer Richard McNamara said the rural region was on a “powder keg’ as temperatures rise and hot northwest winds continued to dry vegetation causing significant risk of fire outbreaks.

“It is a real issue, and anyone working with farm machinery and equipment, such as welding or grinding, needs to be aware of the risk of sparks igniting any vegetation nearby,” he said. . . 

Many positives but RMA reforms don’t go far enough:

Federated Farmers cautiously welcomes the Resource Legislation Amendment Bill introduced at Parliament today, but is concerned that proposed reforms do not go far enough.

“What we have is a Bill that looks to make the RMA less costly and cumbersome, and these are positive changes,” says Federated Farmers’ Environment and RMA spokesperson Chris Allen.

“Federated Farmers believes the Bill provides for better plan making and we support the introduction of a collaborative planning approach as long as the right checks and balances are in place, so that this is a robust and productive process.” . . .

Alliance launches new products for Chinese market:

Meat cooperative Alliance Group is launching a new range of market-ready lamb, beef and venison products for the food retail market in China.

Alliance Group has reached an agreement with its in-market partner Grand Farm – China’s single largest importer of sheepmeat – to market the co-branded Pure South-Grand Farm products in the country from next year.

Marketing general manager Murray Brown said with meat volumes going into China becoming more difficult, the company was looking to add value to exports. . . .

Competitive future for “unbroken” NZ dairy – visiting global expert:

New Zealand dairy is well placed to compete in the global market as prices begin to recover in the coming 12 months, a visiting global dairy specialist has told localproducers.

Tim Hunt, New York-based global dairy strategist with international agribusiness banking specialist Rabobank, says while current market conditions are “extremely tough” for many local producers, the New Zealand dairy sector is “unbroken” and has the fundamentals in place to enjoy a strong, competitive future in the global dairy trade. . . .

Ongoing disruption and volatility in dairy, with winners and losers – Keith Woodford:

In the last two weeks we have seen increasing signs of further disruption and volatility in dairy. First, there was good news with Fonterra announcing that they had turned the corner In relation to enhanced corporate profitability. But then, only two days later, there was another decline on the (GDT Global Dairy Trade) auction – this time of 7.9 percent overall and 11 percent for whole-milk powder.

In the meantime, The a2 Milk Company announced that they were almost doubling their previous estimate of profitability for the coming year, triggering another increase in the share price. Since the start of November through to 24 November the price rose 60 percent on large volumes. . . 

Ruataniwha promoter seeks mix of equity, debt funding – Jonathan Underhill:

(BusinessDesk) – Hawke’s Bay Regional Investment Co, the developer and sponsor of the Ruataniwha Water Storage Scheme, says the $275 million project will be funded with a mix of equity and debt, and is likely to result in a secondary market for water contracts.

HBRIC, the investment arm of Hawke’s Bay Regional Council, is in talks with three potential investors and banks about funding. The council is putting up $80 million for an equity stake in a yet-to-be formed irrigation company. The $195 million balance will come from outside investors, bank debt and an expected contribution from the government’s Crown Irrigation Investments, which acts as a bridging investor for regional water infrastructure developments. . . 

Cellphone helps save house from Australian bushfire:

An Australian man who saw his farm “explode in a fireball” on CCTV cameras at the property says his house survived because he used his phone to activate a sprinkler system from the other side of the country.

Charles Darwin University vice chancellor Professor Simon Maddocks said the reason his house at the 45-hectare wheat farm on the outskirts of Hamley Bridge escaped the fire was because of his neighbours – and the fact he activated an irrigation system at the property by remote control from Darwin.

Two people have been confirmed dead and more than a dozen injured in the fires which continue to burn north of Adelaide. . . 

Consultation on freshwater management ideas planned:

A report today published by the Land and Water Forum on the next steps needed to improved management of freshwater will be carefully considered by Government and help contribute to a public discussion paper to be published next year, Environment Minister Dr Nick Smith and Primary Industries Minister Nathan Guy said today. 

“The Government has an ambitious programme of work on improving New Zealand’s freshwater management.  These ideas on requiring good management practice, of how we can maximise the economic benefit of water within environmental limits, integrated catchment management, stock exclusion and enabling more efficient use of water are a further contribution on how we can achieve that,” Dr Smith says.

“I acknowledge the Forum’s significant efforts in tackling difficult policy challenges and we welcome their recommendations,” says Mr Guy. . . 

Irrigation New Zealand Welcomes 4th LAWF Report:

Irrigation New Zealand welcomes the fourth Land and Water Forum (LAWF) Report.

“The diverse group of forum members have spent a lot of time collaborating to reach the additional recommendations,” said Andrew Curtis, CEO of Irrigation New Zealand. “This has resulted in constructive advice to Ministers for the development of freshwater policy. It’s now time for the government to act.”

“Freshwater is a natural and recurring resource we need to protect, and is a national asset which needs to be properly and carefully managed to bolster our agricultural-led economy. . . .

Barbara Stuart returns to the NZWAC board:

Nelson farmer and outdoor-access supporter Barbara Stuart has been appointed to the Board of the New Zealand Walking Access Commission.

The appointment heralds Mrs Stuart’s second tenure on the board, where she previously served from 2008 to 2011.

New Zealand Walking Access Commission chairman John Forbes said Mrs Stuart had long been a champion of walking access and her return was very welcome. . . .

Farm Environment Trust’s Annual Report Highlights Growth:

The New Zealand Farm Environment (NZFE) Trust and its flagship event, the Ballance Farm Environment Awards, have celebrated another successful year.

Now available on the Trust’s website, the 2015 annual report outlines the organisation’s continued growth through 2015, with another region signing up to the Ballance Farm Environment Awards (BFEA).

“We are delighted to have the Auckland region in the Awards for the 2016 programme,” said NZFE Trust chairman Simon Saunders.

“Having Auckland on board is a huge step towards being able to offer a complete national programme. We are almost there.” . . . 


Rural round-up

November 13, 2015

Alliance profit takes $4.28m hit – Sally Rae:

Alliance Group’s profit has taken a dive and operating profit was down $4.28million in the year ended September.

The company released its key financial results yesterday, which showed operating profit of $9.19million, down from $13.47million last year.

Turnover lifted slightly, from $1.45billion to $1.49billion, while reported profit was down from $6.21million to $4.62million. . . .

Alliance taps in to online traffic through Chinese partner – Tim Cronshaw:

The Alliance Group’s closer partnership with a big red meat player in China will position it better to take advantage of the quick uptake by Chinese internet users to online buying.

Online sales are huge in China with US$9.3 billion of transactions going through Chinese e-commerce company Alibaba.com on November 11 (11/11) last year . This is known as  Singles’ Day when students graduate and has been popularised in the internet era. Much of the online retail went through Tmall.com, a platform for Chinese and international businesses to sell brand name goods to consumers in mainland China and owned by China’s richest man, business magnate Jack Ma.

Meat processor Alliance’s main sheepmeat buyer into China, Grand Farm, plans to step up online sales which will tie in with the companies’ joint strategy to increase their co-branding in the Chinese marketplace. . . 

Farming in the land of the hobbit – Gerald Piddock:

The Alexander family had never heard of Peter Jackson when in 1998 he first knocked on the front door of their Matamata farm.

The movie maker had spotted their 560ha sheep and beef farm from the air and thought the site could make an ideal set for what was to be The Lord of the Rings movies.

Unfortunately, Jackson chose the wrong time to call in on Ian Alexander, his son Craig told a large crowd of international farming journalists in Waikato for the International Federation of Agricultural Journalists Congress in Hamilton. . . 

Broadband rollout to rural hospitals complete:

Health Minister Jonathan Coleman and Communications Minister Amy Adams have announced that all rural public hospitals and integrated family health centres now have access to high speed broadband.

The 39 hospitals and integrated family health centres identified by DHBs as candidates for the Government’s Rural Broadband Initiative are now all able to connect to fibre capable of peak speeds of at least 100 Mbps.

“Faster broadband enables healthcare to be delivered in new and innovative ways. These e-Health solutions offer better, safer, more efficient healthcare closer to home,” says Dr Coleman. . .

Transtasman Company Named NZ’s Fastest Growing Agribusiness:

Agricultural consultancy and rural investment management company Compass Agribusiness, has secured the title of New Zealand’s fastest growing agribusiness in the latest Deloitte Fast 50 Index.

The company, which has offices in both Arrowtown (New Zealand) and Melbourne (Australia), also placed 18th on the overall index ranking the 50 fastest growing businesses in New Zealand.

New Zealand based company director Guy Blundell says the ranking caps off a big year for the business. . . 

Non seasonal dairy – Keith Woodford:

Recently, I have been writing about what we need to do in New Zealand to climb the agri-food value chain. I have been emphasising the importance of China – there really is no alternative – and the associated need for an integrated ‘NZ Inc’ approach to online selling direct to consumers.

The products we need to be selling through this dedicated and integrated ‘NZ Inc‘ portal (but also linked into the major Chinese online portals) include dairy, meat, wine, fruit, jams, biscuits, chocolate, and bottled water. Indeed almost anything else we manufacture for ourselves that has a shelf life of more than a few days, we can also manufacture for China. . . 

Commission approves Cavalier’s application to acquire NZ Wool Services:

The Commerce Commission has issued its final determination approving Cavalier Wool Holdings’ (Cavalier) application to acquire New Zealand Wool Services International’s (NZWSI) wool scouring business and assets.

Today’s decision follows on from the Commission’s draft determinations, released in March and October, which indicated it was likely to approve the application because of the public benefits of the acquisition.

Chair Dr Mark Berry said the Commission had considered and tested all the submissions and evidence presented to it since the application was lodged in October 2014 and was satisfied the acquisition should be permitted. . . 

James Wong's photo.

Despite all our accomplishments, we owe our existence to a six-inch layer of topsoil and the fact it rains.


Follow

Get every new post delivered to your Inbox.

Join 1,791 other followers

%d bloggers like this: