Rural round-up

October 17, 2018

Big Nelson irrigators line up to complete finance for Waimea Dam as private investor pulls out – Pattrick Smellie:

(BusinessDesk) – Large-scale Nelson-based agricultural interests have stepped in to provide the final $11.5 million needed to finance the Waimea dam project, after an unnamed private investor pulled out of the deal.

The irrigators, who had previously said they had no resources of their own to complete the project, appear to have found the money and stepped back in, after deciding the private investor’s demands were becoming greedy.

BusinessDesk understands the Waimea Plains water users, including dairy farmers, horticulturalists and winemakers, became more comfortable about putting up their own capital when they realised they could use the same convertible notes financing formula for reducing their investment risk as the private investor had been proposing. . . 

 Local farmers help fund $102m Waimea Dam plans – Eric Frykberg:

Funding details of the revived Waimea Dam scheme near Nelson have been made public. 

They involve 14 agricultural businesses agreeing to provide an extra $11.5 million to Waimea Irrigators Limited for the project.

The proposed dam would be 53m high and store 13 million cubic metres of water in a 70ha lake in the Lee Valley, inland from Richmond. . .

NZ red meat exports top $6.7 billion in 2017-18:

Latest export figures from Beef + Lamb New Zealand (B+LNZ) show New Zealand’s red meat exports (excluding veal and co-products) were up $1.2 billion (21 per cent) on 2016-17 to over $6.7 billion in 2017-18 on the back of sustained high value per tonne and increased volume for lamb, mutton, and beef.

“While the highlights of the season were record high average values per tonne for lamb and mutton, the average value of beef exports remained high since the marked increase in 2014-15,” says B+LNZ’s Chief Economist Andrew Burtt.

“Good farm-gate prices and strong average values per tonne for exports occurred throughout the season, even during the fast start to the processing season driven by the dry conditions in December 2017.” . . 

Responsibly grown New Zealand wool blazes a new trail:

UK retail giant Marks & Spencer (M&S) has become one of the first major clothing retailers to launch a menswear range with wool certified under the global Responsible Wool Standard (RWS).

The launch reflects the increasing importance that retailers are placing on developing truly sustainable products, underpinned by ethical land management and animal welfare practices by farmers.

The new range of men’s blazers and waistcoats feature New Zealand lambswool, grown by RWS-accredited, Wools of New Zealand growers. . . 

Brewers hop on to opportunity to boost market gains

Backers of a new $13 million hop breeding programme hope it will bolster exports by creating a signature style of New Zealand beer.

Wellington craft brewer Garage Project and Nelson-based hop grower Freestyle Farms are committing $7.95 million to the seven-year project.

The remaining $5.3m is being delivered by the Ministry for Primary Industries through its Primary Growth Partnership programme. . . 

EPA chemical reassessment rational, says Agcarm:

A strong food supply and healthy livestock are vital for the future of New Zealand’s primary industries and economy. The government reviews the tools that play an essential role in the fight against pests and diseases that threaten these.

The Environmental Protection Authority (EPA) today announced its decision on the chemicals it will reassess. Part of this review evaluates the benefits and potential health risks posed by pesticides – ensuring they meet environmental and health safety standards.

The EPA has ranked 727 chemicals with an A to F ranking, with A being the most harmful. Despite recent attention, Glyphosate has been given an E rating (low risk). . . 

On the farm: What’s happening around rural NZ:

What’s happening on farms and orchards around New Zealand? Each week Country Life reporters talk to people in rural areas across the country to find out.

Te Ika-a-Māui/North Island

In Northland, temperatures have been nice and warm during the day all week but nights have been cooler, which means pasture growth is good but yet to hit full stride. Some farmers have delayed putting in summer crops like maize and turnips for another week while waiting for warmer temperatures. There has been concern about this week’s announcement on Fonterra’s milk prices but our correspondent says overall people are positive – so long as that milk price has a 6 at the front, things should be relatively healthy.

The first of the early potatoes are now being harvested in Pukekohe under dry conditions and in hard soil. The rain arrived on Thursday and Friday. Although the amount may struggle to reach 25milimetres, it will be close and useful for a few days. . . 

Search begins for next Kiwi delegate to ‘plant their path’ at the 2019 Youth Ag Summit in Brazil:

100 young agricultural enthusiasts aged 18 – 25 from across the globe will be chosen to attend the summit in Brasilia, Brazil in November 2019
• One lucky Kiwi delegate will be chosen to represent New Zealand on the world stage
• This year’s theme: how to feed a hungry planet in a more sustainable manner 
• Applications are now open until January 10, 2019

Now’s the time to step up and share your ideas with the world – that’s the call from Bayer New Zealand, which is on the lookout for a Kiwi delegate to represent New Zealand at the Youth Ag Summit in Brasília, Brazil from 4th – 7th November, 2019. . . 

New Zealand’s Extra Virgin Olive Oil Awards – top honours announced:

Winners in New Zealand’s most prestigious competition for olive oil were announced last night at a formal dinner held in Masterton. The New Zealand Extra Virgin Olive Awards are run by Olives New Zealand, the national organisation for olive oil growers.

Loopline Olives from Wairarapa took out the 2018 Best in Show as well as Best in Class in the Commercial Medium Single Varietal Class with their Loopline Picholene. Loopline also took out Reserve Best in Show with their Loopline Picual which was Best in Class in the Commercial Intense Single Varietal Class. . . 

Biosecurity Award finalists reflect huge national effort in biosecurity:

There is a heartening national effort taking place to safeguard the country’s biosecurity, says New Zealand Biosecurity Awards judging panel Chair, Dr John Hellstrom.

“We were excited to receive over 60 very high calibre entries, making the judging task difficult, but rewarding,” Dr Hellstrom says.

The Biosecurity Awards were established two years ago to recognise and celebrate exemplary contributions to protecting our taonga (precious natural resources) and ensuring New Zealand’s biosecurity system remains resilient, effective, and world-leading. . . 


Rural roundup

September 17, 2018

2018-19 lamb and beef exports forecast to both break $3 billion for the second time:

As the 2018-19 meat export season begins, Beef + Lamb New Zealand’s (B+LNZ) New Season Outlook 2018-19 report forecasts beef, lamb, and mutton prices to remain firm at historically high levels, helped by an expected weakening New Zealand dollar and strong export demand.

“We forecast slight increases in farm-gate prices for lamb and mutton in 2018-19, as prices are expected to remain relatively steady in New Zealand’s main export markets and benefit from an expected easing of the New Zealand dollar,” says B+LNZ Chief Economist Andrew Burtt. . .

NZ sheep & beef farm profits forecast to slip as expenses rise – Tina Morrison:

(BusinessDesk) – New Zealand sheep and beef farm profits are expected to decline in the coming year as higher spending outweighs a lift in revenue from the products they sell.

The average farm is expected to earn a pre-tax profit of $129,700 in the June 2019 year, down 2.8 percent from a pre-tax profit of $133,500 in the 2017/18 year, according to industry group Beef+Lamb New Zealand. . .

China is the key market for New Zealand sheep meat – Keith Woodford:

Some weeks back I wrote how the New Zealand sheep industry is in a sweet spot, with record prices. I also wrote that China is now easily our largest sheep meat market by volume. Here I share the story of some of the things that have been happening in that market, and how demand for New Zealand sheep meats has potential to further increase.

The starting point is to recognise that China’s own sheep industry is much bigger than New Zealand’s.  Whereas New Zealand has about 27 million sheep, China has about 150 million. However, most of these are farmed on arid lands in the west and far north of China, often at high altitude. Much of the product is consumed by the local people and does not reach the big cities. . .

Dry in south but wet up north – Annette Scott:

A mild, dry winter and a good start to spring has set Canterbury farmers up well but there’s concern of a big dry setting in.

Opuha Water chief executive Andrew Mockford said farmers have revelled in the great winter farming conditions but they have not put snow on the hills or water in the lakes and rivers.

While there was rain and just the third snowfall of the season early this month, there has not been enough to maintain the level of South Canterbury’s Lake Opuha. . .

Fonterra announces manager Fonterra Brands NZ :

Fonterra is pleased to welcome Brett Henshaw to the Co-operative as Managing Director, Fonterra Brands, New Zealand (FBNZ).

Brett is currently Managing Director of The Griffin’s Food Company and he will take up his role with Fonterra in the first week of December.

Fonterra Chief Operating Officer, Global Consumer & Foodservice, Lukas Paravicini, says “we are excited about Brett joining the team. He has an extensive 30-year career in FMCG and we are pleased he is coming on board.  . .

MPI to get tough on stink bug ships:

Biosecurity officials are promising to take tough action against cargo vessels believed to be infested with brown marmorated stink bug during the upcoming risk season.

“Each arriving vessel will be dealt with on a case-by-case basis. However, if our officers ultimately determine a ship is infested with stink bug, it will be prevented from discharging its cargo and directed to leave New Zealand,” says Steve Gilbert, Director Border Clearance Services, Biosecurity New Zealand

“We have also introduced a very low threshold for determining contamination. If we find a single bug, we will thoroughly investigate whether the entire vessel is contaminated. . .


Rural round-up

January 23, 2018

Record lamb and mutton receipts and second highest for beef:

Red meat export receipts reached a record high for the December quarter of the 2017-18 season, according to an analysis by Beef + Lamb New Zealand’s (B+LNZ) Economic Service.

The record was driven by high export volumes and average Free-on-Board (FOB) per tonne at record values for lamb and mutton, and near record values for beef, while the New Zealand dollar (NZD) has remained relatively strong.

Andrew Burtt, B+LNZ chief economist, said lamb and mutton farm-gate prices were up 30% and 59% respectively for the first quarter of the season (October-December 2017) compared to the previous season. Cattle prices were relatively steady – up 5%. . . 

MPI says disease is contained – Annette Scott:

Despite the growing number of properties testing positive for the cattle disease Mycoplasma bovis the Ministry for Primary Industries (MPI) remains adamant it has the disease contained.

MPI on Wednesday confirmed three new infected properties, two in Southland and one at Ashburton, bringing the total number of properties testing positive to 17, including one in Hawke’s Bay.

The number of restricted place notice properties is 34 and the number of properties for casing is 206. . . 

Fonterra ‘extremely disappointed’ as Beingmate’s forecast loss widens, again – Jamie Gray:

Fonterra says it is “extremely disappointed” that China’s Beingmate Baby & Child Food, in which it has an 18.8 per cent stake, has issued another earnings downgrade – this time to a loss of $171-$214 million for the December 2017 year.

The previous forecast was for a loss of RMB350m to RMB500m ($75m to $107m).

Fonterra said it was assessing the implications the loss would have on its first half result.

“As an investor in Beingmate, we are extremely disappointed by this announcement and the on-going performance of the company,” Fonterra said in a statement. . .

Mackay vs McKay in celebrity shears:

Jamie Mackay will be back at Waimumu to defend his speed shear title, this time going head to head with Rural Exchange presenter and former sports commentator Hamish McKay.

The inaugural Southern Field Days Speed Shears, held at the 2016 event, had The Country presenter Jamie Mackay go head to head with National leader Bill English.

Mackay walked away with bragging rights and he is coming south to compete again in this year’s “Celebrity Shear Off”. . .

Farm groups back TPP deal as Australia, Japan issue new March deadline – Kelsey Johnson:

Canadian farm groups are doubling down on their support for the revamped Trans-Pacific Partnership (TPP), after Australian Prime Minister Malcolm Turnbull said he wants the multilateral trade deal finalized by March — with or without Canada and Mexico.

The Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) has been in negotiation since the United States pulled out of the Trans-Pacific Partnership last January. Eleven members nations are involved in the discussions, including Australia, New Zealand, Japan, Mexico, Vietnam and Canada.

During a state visit to Japan this week, Turnbull said Australia and Japan want the new agreement finalized and an agreement-in-principle signed by March, according to reports from The Australian Financial Review. . . 


Rural round-up

September 16, 2015

Deal will change face of industry – Dene Mackenzie:

Silver Fern Farms aims to be debt free with money in the bank by this time next year if a deal to form a 50:50 joint venture with Chinese food giant Shanghai Maling gets shareholder approval.

Silver Fern Farms chairman Rob Hewett remained optimistic yesterday the deal would receive the required 50% shareholder support and the company is offering significant sweeteners to persuade shareholders to vote yes.

The deal would allow Silver Fern Farms to become unleashed, he said.

Mr Hewett’s presentation to a media conference was peppered with phrases such as ”turbo-charged” and ”compelling”. . . 

 

Shock waves from Silver Fern Farms will now pulsate through the industry – Keith Woodford:

Five months ago I wrote that whatever happened at Silver Fern Farms, it would be like an earthquake within the meat industry. Given that Silver Fern Farms is New Zealand’s largest meat company, and with the status quo unsustainable, it could not be any other way.

The offer that has now come forward from Shanghai Maling is remarkable. This offer, once regulatory approvals are received, will change Silver Fern Farms from being large but financially very weak, to being large and financially very strong.

Apart from mid-season working capital, Silver Fern Farms will be debt free and with cash in their war chest to ‘take it’ to their competitors. . . 

Alliance reaches out to Silver Fern suppliers – Dene Mackenzie:

Invercargill meat processor Alliance Group wasted no time yesterday in trying to woo disgruntled Silver Fern Farm suppliers after Silver Fern announced a joint venture with a Chinese company.

Alliance chairman Murray Taggart said it was important for New Zealand farmers to retain ownership of their industry and the best way to achieve that would be to supply Alliance as the only remaining major co-operative.

Alliance also muddied the water somewhat by saying it submitted a bid for Silver Fern before Silver Fern’s capital-raising process got under way as part of ongoing discussions with the Dunedin group. . . 

Beef and Lamb expects farm profits to rise – Dene Mackenzie:

New Zealand ”average” sheep and beef farmers are in for a profit lift and Beef and Lamb chief economist Andrew Burtt calls it positive news at a time when the economy would benefit from increased farm sector spending.

Beef and Lamb predicted the average sheep and beef farm would see its profit before tax lift to $109,000 this season – 9.6% more than last season but 3.1% below the five year average. . . 

Sheep meat marketing needs focus on premium – Simon Hartley:

Softening demand for sheepmeat in China and Europe should be prompting New Zealand to prioritise getting premium chilled lamb cuts in China, and to also look further afield to new Middle Eastern markets.

Softer overseas demand for New Zealand sheepmeat, particularly from China, had curtailed New Zealand sheepmeat producers’ returns in recent months, Rabobank animal protein analyst, Matthew Costello said in his recent report on the New Zealand sheepmeat industry.

While China’s imports had ”exploded on to the New Zealand sheepmeat export scene” in 2013, to become New Zealand’s largest sheepmeat trading partner, its own production had since grown to about eight times that of New Zealand. . . 

Large trade blocs good for NZ exports:

New Zealand’s refreshed priorities for international trade have been welcomed by ExportNZ.

The Government’s Business Growth Agenda on trade has been updated, with a focus on completing the Trans Pacific Partnership, achieving a free trade agreement with the European Union, and engaging more with emerging economies in Latin and South America.

ExportNZ Executive Director Catherine Beard said exporters welcomed the continued emphasis on TPP. . .

Swede test a first for NZ – Hamish Maclean:

The plight of Southern farmers last year has led to a first for New Zealand.

When 200 dairy cows died in Southland and South Otago and many more became ill, the cause – a naturally occurring compound in winter feed, swedes in particular, – could not be tested at any New Zealand commercial laboratories.

Now, commercial glucosinolate testing of plants is available in New Zealand, and that is good news for the dairy industry, Dairy NZ says. . . 

Farm prices hold up; MyFarm eyeing dairy opportunities – Fiona Rotherham:

(BusinessDesk) – Farm prices are holding up well on a drop in volume over the winter months, according to the latest Real Estate Institute of New Zealand rural farm sales data.

There were only three dairy farm sales recorded in the past month and the median sales price per hectare for dairy farms for the three months ended August fell to $26,906, compared to $35,304 for the three months ended July and $43,125 for the three months ended August 2014.

But the REINZ Dairy Farm Price Index, which adjusts for differences in farm size and location, rose by 17.3 percent in the three months to August, compared to the three months to July. . . 

Tests before tightening help protect farm fertility:

Soil tests should be the first step for farmers trying to managing budgets while maintaining pasture productivity.

Ballance Science Extension Manager, Ian Tarbotton, says keeping soils fertile is good insurance with pasture an essential feed source, but gut instinct or past experience won’t lead to good decisions on what to spend or save.

“Soil tests will show you what you have to work with and they are the best guide to decisions around a fertiliser budget. The last thing farmers want to do is to compromise future productivity, so understanding what nutrients are available now is the best basis for decisions on fertiliser budgets.” . . 


Rural round-up

September 11, 2015

Sheep and beef farmers to benefit from weaker NZD:

Beef + Lamb New Zealand’s Economic Service released its New Season Outlook 2015-16 today. It predicts the average sheep and beef farm in New Zealand will see its profit before tax lift to $109,900 this season – 9.6 per cent more than last season, but 3.1 per cent below the five-year average.

B+LNZ Chief Economist Andrew Burtt says this is positive news, at a time when the New Zealand economy will benefit from increased farm sector spending.

“This season, New Zealand’s 12,300 commercial sheep and beef farmers will spend a total of $4.66 billion on fertiliser, interest, repairs and maintenance and general farm operating costs. This will be welcomed by rural suppliers and communities, particularly at this time.” . . 

Techno lucerne: getting the best out of bulls – Kate Taylor:

Nothing spells out spring more than lambs and daffodils.

You won’t find many woolly creatures on the Central Hawke’s Bay farm of Angus and Esther Mabin, apart from the ones keeping the grass down in the home paddock.

You will find daffodils though. Thousands of them planted across more than 8ha by Angus’ Mum Railene over 40 years and now sold as a fundraiser for CHB Plunket. Every September, giant-sized daffodil signs grace the side of SH2 south of Waipukurau and locals and visitors swarm to the farm known as Taniwha. . . 

Will ants bee the saviours of our hives? – Alexa Cook:

Scientists have discovered a new ant virus related to the deformed wing virus, which kills honey bees.

Bees and ants often forage together, and may be capable of passing on diseases to each other.

The new virus is carried by Argentine ants, which are one of New Zealand’s major bee pests.

The ants already carry a deformed wing virus, which can cause bee colony collapses. . .

Silver Fern Farms ‘strategic’ not even close – Gravedodger:

The entire  NZ Meat Industry may qualify in that category but there is absolutely nothing about a farmer supplier owned part player processor, I hesitate to call them marketer, in the meat industry to what I understand Strategic to involve.

Yes there is farmer supplier investment  in SFF and if the whole shambolic outfit went broke tomorrow it would have some dire effects for many but in the absence of any significant new meatworks being created, those that were built in the latter years of last century have all outlived the planned obsolescence and the older ones are more relics than meatplants.

The entire meat industry since the “Dunedin” departed New Zealand waters with the first refrigerated cargo of meat for the UK over 130 years ago, is littered with incompetence and manipulations bordering on fraud as aspiring entrepreneurs attempted to make their fortune. . . 

New great walk to be ‘one of the best‘ – Paul Taylor:

The Department of Conservation is working on plans for a Great Walk near Queenstown, the country’s 10th.

The proposed three day route is through the spectacular scenery of nearby Mt Creighton Station.

The ”Moonlight Trail” is part of a mooted trade off between the Government and the company which owns the perpetual lease for the 15,000ha station. . . 

New Zealand Winegrowers launches consumer focused education programme in China:

The New Zealand Wine Intermediate Certificate was launched in Shanghai last week, giving Chinese wine consumers the chance to learn about New Zealand’s diverse wine styles.

The education programme was developed by New Zealand Winegrowers and New Zealand Trade & Enterprise in response to a growing demand for information about New Zealand wine from consumers across China.

“This certificate has been several years in the making. We are working with New Zealand based Master of Wine Jane Skilton and her team at the New Zealand School of Wines & Spirits, whose experience will prove invaluable” said Chris Yorke, Global Marketing Director at New Zealand Winegrowers. “Education plays a huge part in our marketing strategy for China, and the launch of a programme specially tailored for consumers will help raise awareness and appreciation of our premium wines in a growing market.” . . 

Watch your back this spring:

Sheep farmers busy with tailing/docking of lambs are being urged to take extra care of their backs.

With spring comes more stock handling,” says Al McCone, WorkSafe’s Agriculture Programme Manager. “Injuries often happen when people do routine tasks like tailing/docking over and over again. Before you or your workers start any job on the farm, stop and consider what you need to watch out for and how to get it done safely.”

In September last year, people working on farms made 600 claims qualifying for ACC funding for back injuries. In addition to injuries suffered as a result of tailing/docking work, other back-related injuries came from kicks or crushing by animals, slips, trips and falls, and injuries from vehicles and heavy machinery. . . 

True Dairy Trainees Targeted in Contest Revamp:

Changes to the 2016 New Zealand Dairy Trainee of the Year competition will give genuine dairy trainees the opportunity to succeed.

National Convenor Chris Keeping says the entry criteria in the dairy trainee competition has been tightened to ensure it caters for young people, who have less experience and qualifications than other potential new entrants to the dairy industry.

“The dairy trainee contest aims to foster and assist new people coming into the industry to gain the skills, knowledge and reputation they need to progress,” Mrs Keeping says. . . 

2015 New Zealand Extra Virgin Olive Oil Awards:

Entries in New Zealand’s most prestigious competition for extra virgin olive oil closed on Wednesday 9th September, with a total of 70 entries. There were 60 entries in the Extra Virgin classes and 10 entries in the Flavoured Oil classes, which are new classes for these Awards.

The 2015 New Zealand Extra Virgin Olive Oil Awards have attracted entries from all of the major olive growing regions across the country. . .

Save on calf rearing this season:

Weaning calves from milk when they reach 65 kilograms could add to the bottom line if a good value meal and pasture is added to the diet early on – especially when it comes to replacement heifers.

Wendy Morgan, Nutrition and Quality Manager at animal nutrition company SealesWinslow said the cost of rearing calves can be reviewed by farmers who are looking for ways to make cost savings this season.

“To wean from milk, start weighing calves at six weeks of age. An animal can be weaned once it has reached 65 kilograms, has an obvious rumen (a pot belly when looking at it from behind) and is eating 1 kilogram of meal for three consecutive days,” she said. . .

The Global Forest Industry in the 2Q/2015:

Excerpts from the Wood Resource Quarterly (www.woodprices.com)

Global Timber Markets:

Sawlog prices fell again in the 2Q/15 in most of the 19 regions worldwide that are part of the Global Sawlog Price Index (GSPI). The Index is at its lowest level since 2009, and is down 20% from its all-time high four years go.The only regions where prices increased in the 2Q were in Northwest Russia andthe Interior of British Columbia.

Global trade of softwood roundwood slowed down towards the end of 2014 and log shipments have continued to be slow during the first half of 2015, with the biggest reduction in imports being in Japan, South Korea and Sweden. . . 

Increased cruise ship biosecurity a welcome result for kiwifruit:

The Ministry for Primary Industries’ (MPI) announcement to beef up biosecurity on incoming cruise ships is a welcome result for the kiwifruit industry.

Kiwifruit Vine Health (KVH) Chief Executive, Barry O’Neil, says KVH has been working with MPI for increased border interventions on the cruise ship pathway, and supports the work being done to address the increasing risks.

“The cruise ship pathway is one the kiwifruit industry is concerned about so we are fully supportive of MPI’s proactive approach following a cruise ship passenger risk review.” . . 


Rural round-up

May 29, 2015

Top deer environment award winners announced – Kate Taylor:

Central Hawke’s Bay farmers George Williams and Laura Billings were presented with the Elworthy Environment Award at the deer industry conference in Napier on Tuesday night.

The couple have a 1188ha business, including home farm Te Maire, in the Tikokino area with sheep, beef and cropping as well as deer.

Williams has a personal passion for deer with a focus on velvet with a venison by-product.

Velvet production for the 2014/15 season was a total of 2550kg (including 278kg of regrowth). Te Maire has also hosted the Wilkins Farming North Island stag sale since 2010. . .

Chefs to serve up kiwi venison in Euorpean restaruants –  Kate Taylor:

New Zealand venison will be eaten at European restaurants this summer.

Thirty-six ambassador chefs in Belgium and the Netherlands will be serving cervena venison on their menus in a trial as part of a Passion2Profit initiative formally launched at the Deer Industry Conference in Napier on Tuesday. . .

NZ heading for lowest wool clip in 6 years as farmers favour meat breeds, sheep flock declines – Tina Morrison:

(BusinessDesk) – New Zealand, the world’s largest exporter of crossbred wool, is heading for its smallest annual wool clip in six years, reflecting the lowest sheep flock in more than 70 years, dry conditions and an increased focus on meat producing breeds of sheep.

New Zealand will probably produce 138,400 tonnes of greasy wool, or 833,700 wool bales, in the annual season that runs through June, down 5.4 percent on the year earlier, according to farmer-owned industry organisation Beef + Lamb New Zealand. That would mark the lowest level since the 2008/09 season when the clip dropped to 132,400 tonnes as farmers eschewed a second shear in the face of low wool prices. . .

Support for dairy farmers ramped up:

Industry body DairyNZ is ramping up its support to dairy farmers following the announcement today by Fonterra of an opening forecast Farmgate Milk Price of $5.25 per kgMS for the 2015-16 season.

Chief executive Tim Mackle says DairyNZ had already been working on boosting its Tactics for Tight Times campaign to help farmers cope with what is likely to be a “very tough and grim season”.

“By our calculations, this forecast will translate into an average farmer’s milk income dropping by $150,000 for this next season. We’ve worked out that the breakeven milk price for the average farmer now going forward is $5.70 kgMS, yet under this forecast scenario they’ll only be receiving $4.75 all up in terms of farm income including retro payments from last season and dividends. Annual farm working expenses will need to be reduced to minimise increasing debt levels further. The flow-on impacts to the local economy will be significant as that money gets spent on things like feed, fertiliser, repairs and maintenance items. There will also be less capital spending in our sector. . .

Well-oiled operation sees rapid growth – Harrison Christian:

WAYNE and Maureen Startup never dreamed the four olive trees in their Havelock North backyard would turn into 17,000.

But that is what happened, after they decided to go full-time with their hobby 15 years ago.

The Village Press, which takes its name from their hometown, is the biggest and most competitive olive oil operation in New Zealand. Its high-quality olive and avocado oils are stocked on shelves around the world – and the business continues to grow. . .

Farmers ready to put irrigation funds to good use:

Federated Farmers says farmers will put to good use a $25m funding boost, from the recent Budget, for investigation and development of irrigation projects.

The Government has put $25m into the Irrigation Acceleration Fund through the next five years to kick-start regional irrigation projects.

Federated Farmers spokesperson on water, Ian Mackenzie, says the Government is quite right to identify nearly every part of New Zealand as being hit by drought in the past three years. . .

Plant disease world first in Bay:

A Peruvian plant disease will be used in a world first biocontrol against a notorious weed in the Bay of Plenty and Northland

Lantana blister rust (Puccinia lantanae) was recently released in the Bay and Northland regions in an attempt to control lantana – considered one of the world’s 10 worst weeds.

Landcare Research scientists have been searching for biocontrols before it becomes widespread. . .

Input Prices Rise for Sheep And Beef Farmers:

Prices for inputs used on New Zealand sheep and beef farms increased 1.1 per cent in the year to March 2015, according to the latest Beef + Lamb New Zealand (B+LNZ) Economic Service sheep and beef on-farm inflation report.

The sheep and beef on-farm inflation report identifies annual changes in farm input prices in New Zealand for the various expenditure categories. The on-farm inflation rate is determined by weighting the individual input category price changes by their proportion of total farm expenditure.

B+LNZ Economic Service chief economist Andrew Burtt says the increase in the 2014-15 year follows a 0.6 per cent decrease the previous year and was driven by rises in prices of interest and, local and central government rates and fees. It was only partly offset by a fall in fuel prices as fuel accounts for less than 5 per cent of sheep and beef total farm expenditure. . .

Pasture and Performance Loan to lift red meat productivity:

New Zealand’s largest rural lender today launched an extended lending package for red meat farmers wanting to boost farm productivity.

ANZ Bank’s Pasture and Performance Loan offers an interest rate of 5%* p.a. with a maximum loan of $100,000. The maximum loan term is five years, principal reducing, and there are no establishment fees. . .


Rural round-up

March 21, 2015

TPP Opportunity for Dairy Must Not Be Missed:

The Dairy Companies Association of New Zealand (DCANZ) has joined with national dairy organisations from Australia and the United States in appealing for their governments to progress a swift but successful conclusion to the TPP negotiations.

“We have a historic opportunity to remove distortions from the dairy market in the Asia-Pacific region. Our governments must grab hold of this.” Said DCANZ Chairman Malcolm Bailey.

“TPP outcomes must be ambitious, comprehensive and commercially meaningful for dairy along with other products. We understand that progress is being made in the negotiations but that it still falls short of the level of ambition needed. . .

Record beef returns offset impact of a dry season:

Drought and the ratio of sheep to cattle farmed are the two factors with the biggest impact on sheep and beef farmers’ incomes this season.

Beef + Lamb New Zealand (B+LNZ) today released its mid-season update. Six months ago, the organisation’s new season outlook predicted the average farm profit before tax would be around $110,800 for 2014-15. However, B+LNZ Economic Service Chief Economist Andrew Burtt says those predictions were based on the assumption that climatic conditions would be normal – and this season has proved to be far from normal in many areas.

“While the average farm profit before tax has been adjusted slightly downwards, to $109,400, North Island profits are expected to increase 19 per cent, to $117,100, while South Island profits are predicted to decrease 20 per cent, to $100,200. The difference can be accounted for by the ratio of sheep to cattle farmed in each island, with cattle making up greater numbers in the north. .

– Allan Barber:

Tuesday saw the launch of Meat Industry Excellence’s report Red Meat Sector – Pathways to Long Term Sustainability to a relatively small group of invited attendees in Wellington. The audience consisted of MIE farmer members, directors of Silver Fern Farms and AFFCO, MIA chairman Bill Falconer, ANZCO CEO Mark Clarkson, Rick Powdrell Federated Farmers’ Meat and Fibre chair, various industry analysts and commentators, and politicians including the Minister for Primary Industries, Shadow Spokesman and the Speaker.

Rod Oram was the MC with addresses from Alasdair Macleod, leader of the Red Meat Sector Strategy development four years ago, Ross Hyland, principal advisor to MIE, James Parsons, chairman of B+LNZ and MIE chairman John McCarthy.

Ross Hyland gave the most interesting talk, both stimulating and entertaining supported by several overheads to illustrate his key points. Fortunately he did not attempt to summarise the report, but focused on some key points which painted the picture of an industry suffering from declining profitability and livestock numbers. . .

Meat Industry cautious on new report:

Meat company reaction to a newly released report on restructuring the industry has been muted so far.

The study comes from the farmer-led Meat Industry Excellence group, which is pushing for a major revamp of the industry to improve its profitability and lift falling returns to farmers.

It advocates a fresh attempt being made to merge the two big co-operatives, Silver Fern Farms and the Alliance Group, and getting the two other big privately-owned companies, ANZCO and AFFCO, to agree to rationalisation measures as well.

Plant a tree for International Forest Day:

Associate Minister for Primary Industries Jo Goodhew marked United Nations International Day of Forests at the Methven A&P show today, by planting a maple tree with industry representatives.

“New Zealand is a proud producer of sustainable timber products,” Mrs Goodhew says. “Today is a reminder of the contribution New Zealand forests make to both the environment and the economy.”

Our forests cover one third of New Zealand, and remain our third largest export earner.

“Leading into the 2020s, there is the potential for a 40 per cent increase in log production. A challenge to industry is to move wood products out of the commodity basket and up the value chain,” Mrs Goodhew says. . .

21 March International Day of Forests:

Forests and trees sustain and protect us in invaluable ways. They provide the clean air that we breathe and the water that we drink. They host and safeguard the planet’s biodiversity and act as our natural defence against climate change. Life on earth is made possible and sustainable thanks to forests and trees. . .

 

Kiwifruit Industry Strategy Project on track for record turnout:

On the final day of voting, grower turnout for the Kiwifruit Industry Strategy Project (KISP) referendum has surpassed all expectations and is on track to be the largest voter turnout in the horticulture sector for almost two decades.

KISP Independent Chairman Neil Richardson notes, “Our initial expectations were based around the average turnout for similar referendums across different sectors being 40%, and the NZKGI Levy vote in 2011 reaching 43% of grower turnout.”

“With voter turnout by both production volume and grower numbers already exceeding 50% we are confident that this referendum turnout will be the most significant the entire horticulture industry has seen since the late 1990s,” says Mr Richardson. . .

Team-Focused Dairy Business Takes Top Title in Taranaki Ballance Farm Environment Awards:

Eltham dairy farmers Mark and Jacqui Muller and their manager Conrad Maeke are the Supreme Winners of the 2015 Taranaki Ballance Farm Environment Awards (BFEA).

They received the award at a BFEA ceremony on March 19. Mark, Jacqui and Conrad also collected the LIC Dairy Farm Award, Hill Laboratories Harvest Award, Massey University Innovation Award and the PGG Wrightson Land and Life Award.

The Muller’s business, Gardiner Partnership, is based on 212ha of family land west of Eltham in the Mangatoki district. The operation milks up to 618 cows on a 167ha milking platform, achieving production well ahead of the district average. . .

 Cheese And Beer a Winning Combo for Home Crafted Cheese Maker:

Former corporate high-flyer John Morawski has found that cheese and beer make a winning combination.

The brewer turned cheese maker decided to make use of a discarded cheese-making kit he bought his fiancé. Less than three years later he has won the Curds & Whey Champion Home Crafted Cheese Award at the 2015 NZ Champions of Cheese Awards.

The Home Crafted category gives “hobbyist” cheese makers a chance to showcase their creations. To be eligible, cheese must not be made for retail distribution and the annual volume cannot exceed 100kgs. . .

 

Taranaki/Manawatu Young Farmers to be put to the test in ANZ Young Farmer Contest Regional Final:

The fifth ANZ Young Farmer Contest Grand Finalist will be determined next weekend, Saturday 28 March at the Taranaki/Manawatu Regional Final held in Palmerston North.

“This contest season is shaping up to be very exciting, every year the calibre of contestants continues to improve and impress,” says Terry Copeland, Chief Executive of New Zealand Young Farmers – organisers of the event.

The eight finalists are contending for a spot at the Grand Final in Taupo 2 – 4 July and their share of an impressive prize pack worth over $271,000 in products, services and scholarships from ANZ, FMG, Lincoln University, Silver Fern Farms, AGMARDT, Ravensdown, Honda, Husqvarna and Vodafone. . .


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