Rural round-up

06/04/2017

Good trade news for red meat – let’s hope it happens quickly – Allan Barber:

The visit by Chinese Premier Li Kequiang has been very positive in several ways for New Zealand’s trade agreements, except for those people who are anti free trade or closer engagement with China (Winston Peters?). After the excitement about the announcement in April last year during the John Key led trade mission, progress on chilled red meat access to China and an upgraded FTA appeared to have gone onto the back burner, until now.

Progress was always going to be slower than the optimistic predictions, because nothing like this happens quickly without extensive discussions between officials about technical issues and, in the case of chilled meat, rewritten protocols and plant certification. Another issue to resolve was the need for marketing and distribution relationships to be established with particular emphasis on the cool chain. . . 

Dairy farmers committed to lowering environmental impact – Katrina Knowles:

Taranaki dairy farmers have planted native species along 5760 kilometres of waterways on their farms. This is the equivalent to a journey from Cape Reinga to Bluff, and back to the steps of Parliament in Wellington, with a few plants to spare.

Dairy farmers, not just in Taranaki, but also throughout the country, are committed to lowering the environmental impact of dairying, while protecting the valuable contribution they make to the economy.

Dairy farming is a major driver in the New Zealand economy, improving everyone’s lifestyle in this country. This is both directly and indirectly, and in rural and urban communities. . . 

Feedback big part of dairy awards – Sally Rae:

Entering the Southland-Otago Dairy Industry Awards was not about winning for Clydevale sharemilkers Russell and Tracy Bouma.

Rather, it was an opportunity to get feedback from judges to help them grow their business, Mr Bouma said.

The couple recently won the Sharefarmer of the Year title at the regional awards function in Invercargill, collecting $20,065 in prizes.

They sharemilk 762 cows on Andrew, Owen and Barbara Johnston’s 270ha farm and it was the fourth time they had entered the awards. They have been sharemilking since 2002.

Every time they had entered, they had been able to implement some of the feedback from the judges, Mrs Bouma (37) said. . . 

Protecting vulnerable native species with 1080 gets results:

Conservation Minister Maggie Barry says successful breeding results for several of our most vulnerable native birds come as a result of using 1080 to kill predators.

“New results from a five-year study of South Island kākā nesting at Lake Paringa in South Westland show 30 times as many kākā chicks were produced and survived in the area after 1080 treatment to control stoats and possums compared to the area where no 1080 was used,” Ms Barry says.

“Put another way – 55% of kākā nests were successful up to a year after 1080 treatment but only 1.75% were successful where the compound was not used. 97% of adult kākā survived in 1080 treated areas.” . . 

Zespri reports strong interest in bidding round for Gold3 licenses – Rebecca Howard:

(BusinessDesk) – Zespri International reported strong interest in a bidding round for 400 hectares of new Gold3 or SunGold variety kiwifruit licences and said its shares will resume trading on Friday.

The kiwifruit marketer said it received 938 bids of which 235 were successful, and will reap $98 million of revenue from the allocation, excluding GST. The average size of the successful bids was 1.7 hectares. The SunGold variety has proven popular as it is more resistant to the Pseudomonas syringae pv actinadiae bacteria, better known as PSA, which decimated the industry some six years ago. By the end of June 2012, more than 35 percent of New Zealand kiwifruit orchards were infected. SunGold, first commercialised in 2010, was key to the sector’s recovery. . . 

Ashburton dairy farmer takes the helm at Canterbury A&P:

Dairy farmer Peter Gilbert was elected as President of the Canterbury Agricultural and Pastoral Association for 2017 at the Annual General Meeting held at Riccarton Park Racecourse on 29 March.

Based in Winchmore, near Ashburton, Mr Gilbert was confirmed as the President of the 155th Canterbury A&P Show in front of outgoing President Warrick James, the General Committee and Association Members.

Mr Gilbert said he was looking forward to his Presidential year after a long association with Canterbury A&P. . . 

Anmum Releases Its First Batch of QR Coded Cans in NZ:

Parents Can Trace Product Journey as Anmum Releases Its First Batch of QR Coded Cans in NZ

Consumers now have their first touch point with Fonterra’s traceability in New Zealand through QR codes on Fonterra’s paediatric range, Anmum.

The QR codes are part of a programme to track and trace ingredients and products electronically throughout Fonterra, from the raw milk source on farm right through to retailers who sell the product to consumers.

Unique for every Anmum can, the QR code connects consumers via a mobile phone app to a webpage with information which verifies the authenticity of the product and its batch number. Consumers can also scan the can at any stage after they have bought it and get up to date status information about their product. . . .

Positive outlook for forestry sector:

Associate Primary Industries Minister Louise Upston has welcomed new forecasts showing forestry export revenue set to rise further over the next two financial years.

The Ministry for Primary Industries’ first quarterly update of its Situation Outlook for Primary Industries shows forestry export revenue is forecast to rise 5.8 per cent to $5.4 billion for the year ending June 2017, and a further 8.8 per cent to $5.9 billion in the year to June 2018.

“Rising log exports are behind this positive forecast, with a strong demand from China due to its expanding housing market. This, combined with low shipping costs, has driven harvesting to record levels,” Ms Upston says. . . 

Rabobank’s dairy analyst Emma Higgins on today’s GDT Event result:

The spread in pricing between fats and proteins are at record levels. AMF lifted 2.5% to USD 5,936/tonne (the highest average price for AMF in GDT history) and although butter lost ground by 1.6%, the average price at USD 4,751 is still the second highest average price in the history of butter offerings on GDT. Given low SMP pricing dynamics, coupled with lower global milk production, low fat stocks are underpinning outstanding fat prices.

Looking at the powder front, WMP prices lifted a modest 2.4% to USD 2,924 /tonne. Some price support has come from lower auction volumes this time around, with 20% less on offer overnight compared to the last auction. While SMP moved a fraction lower (-0.8%) to USD 1,913/tonne, a sizable 50% increase in SMP offer volumes makes the result overnight seem very positive indeed. . .

Farmers to see changes to farmhouse deductibility:

With farmers spending an increasing amount of time in the office, or at the kitchen table as the case is for many farmers across New Zealand, the changes to the deductibility of farmhouse expenses may come as a surprise. “With changes impacting farmers for the 2017/2018 financial year, it is important they take the time to find out how the changes could affect them,” Tony Marshall, Agribusiness Tax Specialist for Crowe Horwath points out.

Since the 1960s the IRD has allowed full-time farmers a deduction of 25% of farmhouse expenses without any evidentiary support. Inland Revenue Group Tax Counsel Graham Tubb says that this has allowed some farmers to claim deductions for private spending. . . 

Anchor Food Professionals Opens Sri Lanka’s First Dairy Innovation Kitchen:

Sri Lanka’s foodies are set to receive a delicious boost to their out-of-home dining experience, with Fonterra’s opening of the country’s first dairy innovation kitchen for the foodservice industry.

With increased urbanisation and more Sri Lankans eating out of home, Colombo, a city with more than two million people, is seeing new international hotel chains, restaurants, bakeries and other food outlets spring up around the city.

To cater to the growing interest in out-of-home dining, Fonterra’s foodservice business, Anchor Food Professionals, has opened an innovation kitchen in the city to trial new dairy products and work with chefs to develop new recipes and flavours that suit the tastes of Sri Lankan consumers. . . 

Carrfields seeds produce second world record grain crop:

 An Ashburton farmer’s record-breaking wheat crop is the second world record grain yield to be produced from Carrfields seeds in two years.

Eric Watson’s February 2017 harvest of 16.8 tonnes a hectare, grown from Carrfields’ winter wheat variety Oakley, has just made the Guinness World Records list for highest wheat yield.

It follows the world record for the highest yielding barley crop, set by Timaru growers Warren and Joy Darling in January 2015. The Darlings broke the previous 25-year-old record with a yield of 13.8 tonnes a hectare from Carrfields’ variety 776.

Carrfields’ Cereal Seed Product Manager, Phil Smith, said he was thrilled to see two world records set in Canterbury in a short space of time. . . 


Rural round-up

03/04/2017

NZ red meat sector must pursue both ‘value and volume’ growth into China:

The New Zealand red meat sector must focus on creating greater value from its exports into China, as the rate of import growth slows in this major export market, according to new research from Rabobank.

In its recently-released report, China’s Animal Protein Outlook to 2020, the specialist global agribusiness bank says while Chinese imports of sheepmeat and beef will continue to grow out to at least 2020, the rate of growth will not be as rapid as it has been in the past.

In addition, says Rabobank animal proteins analyst Blake Holgate, as China has continued to open its market to New Zealand’s competitors in recent years, the NZ red meat sector no longer enjoys the same unique competitive advantage it had when it was the first developed country to enter into a free trade agreement with China in 2008. . . 

Rural doctor shortage: GPs considered ‘lesser beings’ – Joanne O’Brien:

For 25 years, Dr John Burton has been a lifeline for people in the isolated Waikato community of Kawhia, but, he says, GPs are considered “lesser beings” so job training is not producing good doctors for rural areas.

He said being the only doctor within an hour’s drive might deter some, but it made life fun.

“One of the things that often puts people off coming to a place like Kawhia is you’re always on call and anything can happen.

“Yet if I look back over the years I’ve had here, the times I’ll be remembering will probably be the times when, yes, I delivered a baby in the back of the ambulance or somebody was in a life-threatening condition.” . . 

Cows could infect humans with different strain of leptospirosis – Alexa Cook:

About 30 percent of New Zealand’s dairy herds pose a risk of infecting humans with a different strain of Leptospirosis not covered by the existing animal vaccine, a study has revealed.

People can pick up the disease if they come into contact with cow urine and rodents. It can lead to serious illness or death.

Leptospirosis is the most common zoonotic occupational disease for farm and abattoir workers. In the past year cases of the disease have jumped by nearly 50 per cent, compared to 2015.

The Massey University study, which started in 2015 and is government funded, collected blood and urine samples from 200 dairy farms. . . 

Fonterra produces a solid half-year set of results but it is not all plain sailing ahead – Keith Woodford:

Fonterra has produced a solid set of results for the first half of the 2016/17 season, with after-tax profit up two percent to $418 million.

Results were broadly in line with market expectations. Prices for Fonterra units had been drifting down on the NZX in the weeks prior to the announcement from a high of $6.39 to $6.20 and lost another five cents over the following two days down to $6.15.

As always, the half-yearly and annual reports from Fonterra are a masterful exercise in communication. It takes effort to scratch beneath the surface to figure out what the numbers are really telling us. . . 

Cervena to be marketed in Germany:

Cervena venison is to be marketed in Germany during the northern hemisphere summer as part of a market development trial.

Deer Industry NZ (DINZ) venison marketing manager Marianne Wilson says the trial, while relatively small, is symbolically very important. Traditionally, the deer industry has been heavily reliant on sales of venison to the German game trade which is highly seasonal, with demand and prices peaking in the northern autumn and winter, she says.

“Marketing Cervena venison there as a lighter summer eating option, suitable for grilling, is a challenge but it’s a journey we want to begin. Chefs across Europe are now showing more interest in innovative summer menu items, so the timing is positive.” . . 

NZ exporters gain access to international agfood innovations portal:

The FoodHQ Innovation Club has become a partner of World Food Innovations, an internationally recognised online portal that profiles innovative agfood solutions to attract global business.

The FoodHQ Innovation Club helps food and beverage companies tackle the multiple challenges associated with innovating their products and businesses to meet consumer demands in New Zealand and overseas. It provides one-door access to 2,200+ researchers, leading-edge knowledge, and innovation tools from internationally recognised research and innovation organisations.

WorldFoodInnovations.com, an initiative by Food Valley, the Netherlands, was established in 2016. Food Valley has built up a deep insight into the challenges of the agrifood industry and vast network of companies and knowledge institutions that can help to tackle these challenges effectively. . . 

Rabobank NZ annual profit falls 14% on higher provisioning for bad dairy debt – Paul McBeth

(BusinessDesk) – Rabobank New Zealand posted a 14 percent decline in annual profit last year as the rural lending specialist boosted its provisioning for bad debts in the face of the dairy slowdown.

Net profit fell to $89.5 million in calendar 2016 from $104 million a year earlier, the Wellington-based lender said in a statement. The decline in profit was largely due to the bank booking $15.1 million in impairment charges on bad debt. In 2015 Rabobank booked a $5.6 million gain, writing back the value on impairments. Net interest income edged up 2.6 percent to $251.3 million, outpacing a 2.2 percent increase in the size of Rabobank’s NZ net loan book to $9.65 billion. . . 

Dairy – the new cream of choice in China:

For chefs across China, it’s out with the old mock cream and in with the UHT cream as Fonterra ups capacity to meet growing demand.

UHT cream, one of Anchor Food Professionals top selling products, is fast becoming the cream of choice for chefs in China and other parts of the world as they look for a product that has the freshness of pure dairy, won’t over whip and holds its shape for longer.

Fonterra has recently completed a new one litre UHT line at its Waitoa site. However, with continued growth, the Co-operative has already begun construction on a second line which will produce an additional 45 million litres each year for consumers across Asia, the Middle East and the Caribbean. . . 


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