Rural round-up

07/11/2020

Meat’s outlook looks reddish – David Anderson:

New Zealand beef and sheep farmers are facing more than 25% less income in the season ahead.

That’s the conclusion of Beef+Lamb NZ (BLNZ) in its recently released new season outlook for 2020-21. It is forecasting lamb export receipts to decline by almost 15% and sheepmeat co-products to decline by around 8% compared to the 2019-20 season.

Beef and veal export revenue is forecast to decline by 9% on 2019-20. “The uncertainty in the export market will be reflected in farm-gate prices and subsequent farm profitability,” says BLNZ’s chief economist Andrew Burtt. . . 

NZ challenges US farm subsidies :

New Zealand is questioning whether Donald Trump’s payments of billions of dollars to American farmers go beyond the limits allowed under international trade rules.

The Trump administration forked out US$12 billion in subsidies in 2018 to buffer American farmers from the fallout of the President’s trade war with China. It topped that up with another US$16bn in 2019.

Billions more were set aside after covid-19 dealt a further blow to US farm incomes, which are forecast to drop this year by 15% even after subsidies are accounted for.

According to one US report, payments from the federal government will make up 36% of American farm incomes this year – the highest share since 2001. . . 

New Zealand red meat exports to United States leap 50 per cent in third quarter:

New Zealand’s red meat sector continued to demonstrate its agility in the third quarter with exports to the United States growing by 50 per cent over the three months from July to September compared to a year earlier.

Total exports to the US reached $400 million for the quarter, closely followed by a 42 per cent rise to the UK ($71m) and Germany, a 25 per cent increase to $70m.

The growth in the third quarter offset a 25 per cent decline to China ($530m) although the value of sheepmeat and beef exports to China remains at an historically high level. Overall, exports in the third quarter were $1.69 billion, unchanged from the same period in 2019. . . 

Wool course plans national rollout – Neal Wallace:

The level of interest in a wool grading course has encouraged organisers to take it on the road.

Organised by the Southern Institute of Technology and held at its Telford campus near Balclutha, the plan is to buy a trailer to take equipment and samples to woolsheds to make it easier for people to access training.

The two-day block session for the New Zealand Qualifications Authority (NZQA) approved course held earlier this month, attracted 14 wool handlers from throughout the South Island.

The course is completed through distance learning and filing assignments; one on shed inspection and a grading report on a clip they prepared. . . 

2021 Ngā Karahipi Uru Rākau – Forestry Scholarship recipients selected :

Ngā Karahipi Uru Rākau – Forestry Scholarship is pleased to support another eight aspiring New Zealanders to study and pursue careers in forestry, with its 2021 Scholarship recipients announced today.

Now in its third year, the Scholarships are increasing diversity in forestry sciences and engineering, with a strong focus on encouraging Māori and women to embark on forestry careers.

“Māori and women represent only a small percentage of the forestry workforce. Te Uru Rākau endeavours to change that and make the forestry and wood processing sector more reflective of our communities,” says Henry Weston, Acting Deputy Director-General Te Uru Rākau/ Forestry New Zealand. . . 

Heirlooms – naturally – for one Mansfield small farm business – Andrew Miller:

Mansfield’s self-confessed “small scale farmer” Simone Boyd is on a mission to show Victorians carrots come in more colours than orange and not every lettuce is green.

Ms Boyd, and husband Cam, grow vegetables on a small property in the north-eastern town, selling at farmers markets, to restaurants and now branching out into online sales through their Heirloom Naturally business.

She says heirloom vegetables are much like precious pieces of jewellery, or furniture, which are passed down from generation to generation, after being saved season after season. . . 

 


Rural round-up

23/10/2020

Farm profit 26% drop predicted – Sally Rae:

Average farm profit before tax on sheep and beef farms is predicted to fall 26% this season amid continued uncertainty due to Covid-19, Beef+Lamb New Zealand’s new season outlook says.

The report, released yesterday, sets the scene for a challenging year with declines predicted in both sheep meat and beef export receipts as the pandemic affects global economies, consumer demand and trading channels.

Lamb export receipts were forecast to drop by almost 15% and co-products to decline about 8% compared with the 2019-20 season. Beef and veal export revenue was predicted to decline by 9%.

The uncertainty in the export market would be reflected in farm-gate prices and subsequent farm profitability, B+LNZ’s chief economist Andrew Burtt said in a statement. . . 

Jobs warning over migrant worker rules – Sally Rae:

Jobs are in jeopardy in the meat processing and exporting sector unless the Government recognises the essential role of its skilled migrant workforce, the Meat Industry Association has warned.

About a third of the country’s 250 halal processing workers would have to leave New Zealand next year due to the Government’s one-year stand-down policy, MIA chief executive Sirma Karapeeva said in statement.

The loss of those people, along with ‘‘hundreds of other essential meat workers’’, could result in reduced production and job losses in New Zealand’s largest manufacturing industry, Ms Karapeeva said.

“Most of the 42 halal processing plants in New Zealand now operate between 10-12 months per year. A shortage of skilled halal processing people could result in production at many plants being limited to six months in the year, which would mean processing of livestock for farmers is severely disrupted and employees might be let go. . . 

New woman at the helm of IrrigationNZ – Annette Scott:

Irrigation New Zealand is to be guided by a new chief executive in a new location and with a refreshed strategy. Annette Scott talked with Vanessa Winning about her new role.

FORMER DairyNZ farm performance manager Vanessa Winning is looking forward to leading New Zealand’s irrigation sector as it heads into a new era of management and renewed focus.

Winning has been appointed the new chief executive of IrrigationNZ, taking up the role in the organisation’s new Wellington base.

Following a review of the organisation’s activities the board, in July, put renewed focus on solving the tension between the fundamental need for irrigation in a post-covid NZ and the sector’s increasingly restricted license to operate. . . 

Campaign launched to help keep New Zealand Food and Beverage in hearts and minds of global consumers:

A global campaign designed to grow awareness, preference and demand for New Zealand Food and Beverage products in the key export markets of Australia, China, Japan, the USA and the UK has launched today.

The campaign, titled ‘Made with Care’, is being led by New Zealand Trade and Enterprise (NZTE) and is part of a wider ‘Messages from New Zealand’ country brand campaign, which sees Tourism New Zealand (TNZ), NZTE, Ministry for Primary Industries, Education New Zealand and New Zealand Story join forces to promote New Zealand’s brand on the world stage.

New Zealand’s food and beverage industry is a key player in our economy, accounting for close to 46% of all goods and services exports in the past year. In 2018/2019, the industry had a combined revenue of $71.7 billion, with exports reaching more than 140 countries. . .

CBD lifts mānuka value higher – Richard Rennie:

If a spoonful of sugar helps the medicine go down, then a snap-pack of Manuka honey may help you down a daily dose of CBD. Richard Renniespoke to Derek Burchell-Burger of Naki New Zealand about the company’s ground-breaking cannabidiol-infused honey nutraceutical.

For centuries cannabis and honey have been remedies used by assorted civilisations, and a Taranaki-based company is combining the two as a unique nutraceutical product.

“Indigenous cultures have been putting medicine in honey for generations, honey is a very good delivery system,” Naki New Zealand global marketing manager Derek Burchell-Burger said.

With Manuka honey’s popularity rising particularly over the covid pandemic, the company saw an opportunity for adding the therapeutic cannabidiol (CBD) to leverage off Manuka’s health and healing claims. . . 

 

Highly productive dairy farm and cropping operation placed on the market for sale:

A former market gardening operation now fully converted into a highly productive dairy farm and supporting cropping unit in the Eastern Bay of Plenty has been placed on the market for sale.

The 153.9-hectare property at Otakiri some 24-kilometres west of Whakatane milks a herd of between 410-430 cows to produce between 133,000-153,186 kilogrammes of milk solids annually, while also producing maize and silage for the herd.

The farm is made up of seven freehold land titles – all with a flat topography and linked by an extensive and high-quality network of crushed-lime races – with the maize and silage grown on a pair of 7.5-hectare blocks within the property. . . 


Rural round-up

02/10/2020

Freshwater rules take toll on confidence – Sally Rae:

Southern sheep and beef farmers have experienced their worst fall in confidence in a recent survey by Beef+Lamb New Zealand, as the Government’s freshwater rules are cited as a major factor.

Nationally, confidence dropped to the lowest recorded level since August 2017 with less than half — or 46% of farmers — confident in the future of New Zealand’s sheep and beef industry compared to 58% in May.

Farmer confidence was down in all regions, except for the northern North Island, and the largest fall was in the southern South Island at 32% (down 27%), followed by the central South Island at 42% (down 19%).

In a statement, B+LNZ chairman Andrew Morrison, a Southland farmer, said sheep and beef farmers were increasingly concerned at the speed and scale of government-led reforms. . . 

26 million national flock down 2.3% – Sally Rae:

Sheep numbers in New Zealand have dropped 2.3% over the past year to 26.21million — a far cry from the 57.85million recorded in 1990.

Beef + Lamb New Zealand’s annual stock number survey estimated this spring’s lamb crop would be 4.2% lower — or 980,000 head down — compared with spring 2019, while adverse weather events could lessen that further.

Ewe condition during mating was poor to average due to lower overall feed availability while ewe pregnancy scanning results were 5%-10% lower due to dry conditions and feed shortages. Fewer ewe hoggets were also mated.

In a statement, B+LNZ Economic Service chief economist Andrew Burtt said drought meant farmers decided to have fewer hoggets, weaner cattle and cows mated which would have impacts on future stock numbers. . . 

Fruit picker shortage reaches new levels :

With closed borders and no backpackers or casual labour coming in, the fruit picking industry desperately needs more workers than ever before.

Today The Detail looks at why it’s so hard to fill the gaps and whether robots are the answer to the labour shortage for what even employers admit is a “shit” job.

Horticulture is a $10b industry and is one that will continue to grow despite covid-19.

But the lack of workers has been something that has plagued the sector for years, even before the pandemic. . . 

Work experience helps fresh talent into dairying

Gillian Saich from Invercargill is new to dairy farming and was thrilled when a dairy farmer offered her work experience on his farm.

Gillian recently finished DairyNZ’s GoDairy Farm Ready Training, designed to give Kiwis throughout New Zealand entry level training to work on dairy farms.

After the training, dairy farmer Edwin Mabonga from Otautau offered Gillian two weeks’ work experience and she jumped at the chance.

“It’s been brilliant to get hands-on experience. I have learned so much and have been involved in lots of aspects on the farm, including calving and milking,” she says.  . .

NZ cheese sales a lockdown silver lining:

Everywhere, everyone agrees that 2020 has been one of the most challenging years. For many NZ cheesemakers that has meant quickly adapting and finding new markets as farmers’ markets, some specialty retail food stores, cafes and restaurants closed during lockdown.

However there is a silver lining, while New Zealanders hunkered down staying safe they used their free time to explore and support NZ made produce, including New Zealand cheese, which is enjoying record sales.

According to Nielsen Scantrack[1] – a record of supermarket sales for the year to 9 August 2020 – total value for all cheese sales is up by 12.2% for the 12 months. Among these numbers is a strong increase for speciality cheese – up in value by 9.5%. Always a favourite with families, blocks of cheese are up 14.5% in value and grated cheese sales were up a whopping 25.1%. . . 

Silver Fern Farms awards additional scholarship in light of Covid crisis:

Silver Fern Farms has announced their Plate to Pasture Youth Scholarships recipients for 2020, adding two additional scholarships this year, on top of the six normally offered, to strengthen their support for the industry through the challenges presented by Covid-19.

Silver Fern Farms Chief Executive Simon Limmer says the commitment Silver Fern Farms has to developing young people and their careers has become even more important as the red meat industry responds to disruption around the world.

Over 60 people applied for this year’s scholarships. “They were asked to identify outstanding opportunities for the red meat industry in light of the Covid-19 crisis and to share the role they could play in New Zealand’s recovery. . . 


Rural round-up

04/06/2020

Market base is strong but . . .  Annette Scott:

Despite significant primary sector disruption from covid-19 and drought Beef + Lamb forecasts a positive outlook for sheep and beef exports this season. 

It’s mid-season update says beef, lamb and mutton farmgate prices will maintain their high levels.

That is supported by a strong start to the first half of the season and an expected weakening of the New Zealand dollar.

While the drought and covid-19 have both had impacts for farmers and meat processors the fundamentals look likely to remain strong for sheep meat and beef exports this year, Beef + Lamb chief economist Andrew Burtt said.  . . 

Govt’s N fertiliser cap ignores basic science – Doug Edmeades:

Dr Doug Edmeades takes a look at the problems with the Government’s nitrogen fertiliser caps.

The Government’s recent decision to cap N fertiliser inputs at 190 kg N/ha/yr is doomed to failure because it ignores the basic science.

When an animal urinates, it applies N at the rate of about 500 to 1000 kg N/ha.

This is too much for the pasture and soil to accommodate and hence results in a huge excess of soluble N in a localised spot of soil, which is then subject to leaching into waterways. . . 

Pioneer in deer industry, conservation dedicates award to supporters – Liz Chen:

A man who received a Queen’s Birthday honour for services to wildlife conservation and the deer industry says the award is shared with everyone who’s made a contribution.

Murray Powell, now 89, established the Hilldale Zoo and Wildlife Park in 1969, now the Hamilton Zoo, and together with his late wife put significant investment towards the zoo’s development over the years.

The zoo is now one of Hamilton’s leading attractions with more than 140,000 visitors a year.

It runs successful breeding programmes as well as conservation and research projects for both nationally and internationally endangered species. . .

Face masks featuring New Zealand wool filters under ‘huge demand’:

A superior face mask product developed by an innovative New Zealand company using New Zealand wool is now under extremely high demand globally.

Farmers contracted to Carrfields Primary Wool (CP Wool) are supplying specialist-breed New Zealand Astino wool to air filter producer Lanaco, which uses it as the key ingredient in a vast range of air filtration applications.

Lanaco’s protective face masks which feature its ‘Helix’ wool air filters have now received a huge surge in demand since the global Covid-19 outbreak began.

Nick Davenport, CEO of Lanaco, says the company only started making face masks last year following significant research and development work, and is now struggling to keep up with global demand for the product. . . 

Rural Weekly to cease operation – Andrea Davy:

MY FIRST day working for the Rural Weekly newspaper I called a grazier in the Northern Territory who left me shocked.

As the Rural Weekly is among the News Corp publications that will cease all operations by June 26, it’s an interaction I have been reflecting on.

Coming from a daily paper where one of the biggest challenges of the role was convincing people to share their story, I had my spiel ready to go; I was geared up to convince this humble, most likely shy, station manager that sharing her life story with the masses was a good idea.

People are often wary of journalists; they consider us a nosy and untrustworthy bunch. . .

FAO sets the record straight–86% of livestock feed is inedible by humans :

As the media frenzy caused by a ‘planetary health diet’ proposed in a new report from an EAT-Lancet commission this month continues, it is perhaps timely to recall that the Food and Agriculture Organization of the United Nations (FAO) has set the record straight regarding not just the level of greenhouse gases that livestock emit (see yesterday’s posting on this blog) but also incorrect information about how much food (crops eatable by humans) is consumed by livestock. It’s not a lot.

The EAT-Lancet report summarizes scientific evidence for a global food system transition towards healthy diets from sustainable agriculture. The report concludes that a global shift towards a diet made up of high quantities of fruits, vegetables and plant-based protein and low quantities of animal protein could catalyze the achievement of both the 17 Sustainable Development Goals (SDGs) and the landmark 2015 Paris Agreement to combat climate change. . . 

Anne Mottet, an FAO livestock development officer specializing in natural resource use efficiency and climate change, usefully informs us of incorrect, if widespread, information and understanding about the so-called ‘food-feed competition’. . .


Rural round-up

30/11/2019

Good sheep meat prices will last – Annette Scott:

Despite global trade wars, Brexit and the impact of African swine fever the trade fundamentals for New Zealand’s sheep meat sector remain among the strongest in living memory.

Spring lambs at $9 a kilogram and record high mutton prices are not a flash in the pan, Beef + Lamb chief economist Andrew Burtt and senior insight analyst Ben Hancock say. 

And the fundamentals leading to record highs in the sheep industry look set to continue for at least the next three years.  . . 

Fonterra claims sustainability progress

It is not easy being green when you are not profitable, Fonterra leaders say in the co-op’s third annual Sustainability Report.

The past financial year was tough and one of significant challenges and fundamental change in the culture and strategy of the co-operative.

“Given the tough year we had it would’ve been easy to push sustainability to one side, whereas we have in fact continued to make progress,” chief executive Miles Hurrell said.

“We have underlined our commitment to the importance of sustainability and firmed up plans to do more on climate change, coal, waste and sustainable packaging.” . . 

New wool partnership ‘one of the biggest’ in New Zealand history – Angie Skerrett:

A new partnership between a Canterbury-based wool company and one of the world’s largest apparel and footwear companies is estimated to be worth more than a quarter of a billion dollars.

The New Zealand Merino Company (NZM) and VF Corporation have formalised a framework that will grow the market for ZQ certified merino wool.

ZQ natural fibre is the world’s leading ethical wool with growers having to adhere to the requirements set out in the ZQ Grower Standard. . .

US redwood sequoia company wins approval to buy more NZ land – Eric Frykberg:

A US company wanting to grow giant redwood trees here to sell the lumber back home has won the right to buy another 4000ha in New Zealand.

Tough restrictions on cutting down Redwood, or Sequoia, in the US means people cannot get enough of it to use as a building material.

The wood is especially popular for things like decking and outdoor furniture, as it is admired as both attractive and robust.

To meet the need, the Soper Wheeler Company of California set up the New Zealand Redwood Company in Taupō in 2001.

New Zealand’s moist climate allows higher growth rates for Sequoia than in California. . . 

New tool for farmers to measure their GHG :

Options for farmers have now broadened when it comes to managing their greenhouse gas (GHG) footprint on-farm.

The recent inclusion of urease-coated urea fertilisers as an option in the nutrient budgeting tool OverseerFM means farmers will now be able to demonstrate the benefits of its use in reducing farm emissions.

Urease-inhibited urea fertiliser, such as Ravensdown’s N-Protect, has dual benefits. It decreases volatilisation losses, therefore increasing agronomic efficiency by retaining more nitrogen (N) in the root zone. . . 

Dairy Environment Leaders trade gumboots for suits:

The DairyNZ Dairy Environment Leaders are hosting their 7th Annual farmer-led forum in Wellington from 2 – 4 December with a firm focus on supporting communities and embracing change, says DEL Chairwoman Tracy Brown.

“There is a lot of change currently facing our sector with issues like reducing emissions and improving water quality front of mind for both farmers and the general public” Mrs Brown said.

“Our Dairy Environment Leaders are rising to the challenge and leading from the front as they engage with supporters, critics and other farmers. . . 


Rural round-up

04/10/2019

Sheepmeat and beef exports in 2019-20 both forecast to break $4 billion for the first time:

China’s demand for New Zealand’s beef, lamb and mutton is forecast to propel both sheepmeat and beef exports past the $4 billion mark for the first time.

Beef + Lamb New Zealand’s (B+LNZ) New Season Outlook 2019-20 report forecasts beef, lamb and mutton prices to lift from historically high levels, helped by continuing strong export demand and an expected weakening of the New Zealand dollar.

“We have forecast increases in farm-gate prices for beef, lamb and mutton in 2019-20, because small increases in in-market prices are expected to be further assisted by an easing of the New Zealand dollar,” says B+LNZ Chief Economist Andrew Burtt. . . 

Agriculture Minister O’Connor under fire at Gore meeting – Rachael Kelly:

The Minister of Agriculture refused to accept that the Government is affecting farmers’ balance sheets.

O’Connor fronted up to a Ministry for the Environment freshwater consultation meeting in Gore attended by about 400 farmers on Thursday.

He told farmers to “get over it” when he was questioned about farmers’ equity.

While he told the crowd the one thing the Government needed to front up to was how banks were treating farmers at the moment, it wasn’t long before a heckler said it was O’Connor’s Government that was driving the equity out of farmer’s balance sheets. . .

Farmers urged to have say on water – Yvonne O’Hara:

Southland Federated Farmers president Geoffrey Young can see why some farmers could become disheartened and consider giving up their farms if they continue to get hammered by new regulatory requirements and increasing compliance costs.

He has done the maths on the impact the Government’s proposed Essential Freshwater rules would likely have on his ability to earn a living from his 5400ha hill country sheep and beef Cattle Flat Station, near Balfour.

It runs about 15,000 stock units including 8000 breeding ewes and 550 cows, on mainly hill country. . . 

Celebrity chef Al Brown says city slickers are the ones ruining the environment – Teresa Ramsey:

City slickers need to clean up their own backyard before criticising farmers, top New Zealand chef Al Brown says.

Brown, who owns restaurants in Auckland and Wellington, slammed “urban keyboard warriors” in a Facebook post aimed at defending farmers.

During a weekend in rural Raglan, Brown said he was impressed by the “extraordinary beauty of the NZ countryside”.

“Farm after farm in beautiful condition…..we witnessed many new plantings of native trees, fenced off waterways and blocks of old established bush breaking up the pastural land and providing ample shade for the stock,” he said in the Facebook post. . . 

The Trans-Tasman honey wars :

Small jars of New Zealand Mānuka honey are about to go on sale in the UK for nearly $3000 each.

The ‘super’ honey is collected by helicopter from remote parts of the North Island where there are heavy concentrations of Mānuka trees.

The high price is driven by a limited supply. A thousand jars only will be available exclusively from Harrods. While most of New Zealand’s Mānuka honey does not command such an extravagant price there is strong and growing demand internationally. . . 

Nelson man takes Young Grower of the Year – Angie Skerrett:

A Nelson man with a strong family connection to horticulture in the region has been named as New Zealand Young Grower of the Year 2019.

Jono Sutton was announced as the winner at an awards dinner in Tauranga on Wednesday night.

As the regional Nelson finalist he was up against six other contestants from around New Zealand.

The finalists were tested on a range of practical tasks and theory during the week, culminating in the awards presentation. . . 

 

Sour milk: how are US dairy farmers coping? – Lindsay Campbell:

US farming has seen better days.

Matt Moreland has taken what little hope he had left in dairy farming and put it behind him.

Moreland, who comes from three generations of dairy farmers, thought that after graduating from college he would follow that path as well.

But with the decline of milk prices and uncertainty of the industry’s future, he says it didn’t take long for him to come up with other ways to pay the bills. . .

 


Rural round-up

17/10/2018

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

17/09/2018

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

23/01/2018

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

16/09/2015

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

11/09/2015

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

29/05/2015

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

21/03/2015

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. . .


Rural round-up

16/08/2014

 Not celebrating yet – Andrea Fox:

Bay of Plenty farmer David Jensen’s commitment of nearly a third of his milk production this season to Fonterra’s June guaranteed milk price (GMP) of $7 a kilogram of milksolids (MS) looks set to boost his coffers by at least $80,000 but he’s not crowing.

He knows that would be foolhardy, given the roller-coaster ride of the milk price this year and the long stretch of the season ahead.

This is Jensen’s second round on Fonterra’s new fixed milk price programme. In last year’s pilot scheme his business posted a $45,000 opportunity cost after he committed milk at $7/kg MS in what is set to be a record $8-plus payout season. . .

Pipfruit sector’s future ‘very bright’ – Pam Jones:

Good returns are expected in the pipfruit industry this year following a record season last year, Pipfruit New Zealand chief executive officer Alan Pollard says.

Mr Pollard was one of the keynote speakers at the two-day Pipfruit New Zealand conference in Queenstown last week, and visited three Central Otago orchards and one winery with delegates during a field day after the conference.

The conference built on the Pipfruit New Zealand strategic plan, which was released at last year’s conference and outlined how to achieve a goal of developing the pipfruit industry into a $1 billion export industry by 2022, Mr Pollard said. . .

Innovative sheep farmers winners

Southland and Otago did well in the third annual Beef and Lamb New Zealand Sheep Industry Awards in Napier last week.

AbacusBio managing director Neville Jopson, of Dunedin, received the Focus Genetics sheep industry science award in recognition of his work in the industry, while Mount Linton Station, in Southland, won the Alliance Group terminal sire award for lamb growth and meat yield and the SIL-ACE award for terminal sire for lamb growth.

Andy Ramsden, of Wanaka, was awarded the Allflex sheep industry innovation award for his input to increasing the productivity of New Zealand sheep during the past 20 years, and Riverton’s Blackdale Coopworth stud won the Telford dual purpose award for reproduction, lamb growth plus adult size and wool production. . .

Agricultural drones taking off on farms:

Robots are not only taking their place in milking sheds or on vineyards and orchards – aerial drones are increasingly being used to extend the reach and view of human farmers.

Unmanned aerial vehicles or aerial robots – known in the military world as drones – are increasingly being used for a range of activities on farms, including checking fences and water systems, and monitoring and even moving stock.

Linda Bulk of the Aeronavics company, said farmers were surprised at how easy they were to use.

“It’s so practical,” she said. “There’s that eye in the sky, what you see from above is so much more informative than when you’re on eye level to start with and it gets into those hard to reach areas that are often a hazard for quad bikes. . . .

Improved Returns See Rise in Cattle Numbers:

Dry conditions in the northern North Island and continued land use change in the South Island saw New Zealand’s sheep numbers decrease 3.2 per cent over the 2013-14 season, while beef cattle numbers increased 1.6 per cent.

Beef + Lamb New Zealand’s (B+LNZ) Economic Service carries out a stock number survey annually. Its latest survey shows sheep numbers dropped to 29.8 million in the year to 30 June 2014.

B+LNZ Economic Service Chief Economist Andrew Burtt says strong mutton prices, driven by rising demand from North Asia, encouraged a high level of cull ewe processing for the second year in a row.

Breeding ewe numbers, at 19.96 million, were slightly down (-1.4%) on the previous June. The largest contributor to the overall decline was the South Island, reflecting the continued land use trend towards dairy and dairy support activities.

 

Meadow Mushrooms Opens Second Stage Of $120 Million Redevelopment:

The second stage of a $120 million redevelopment and expansion project at one of New Zealand’s largest agricultural enterprises will be opened this week.

The $12 million investment into the extension of Meadow Mushrooms’ Christchurch farm will add a further 60 jobs and increase production by 37,000 kilograms of fresh white mushrooms a week.

This project follows the $45 million expansion undertaken by the company on site in 2011 and is the second of three stages to completely reconfigure the company’s infrastructure in New Zealand. A new office administration and headquarters construction project will commence before the end of the year and will be followed by an expansion of the compost facilities and growing shed conversions.

“This development demonstrates Meadow Mushrooms’ confidence in the future market and our commitment to the industry,” said John Barnes, CEO of Meadow Mushrooms. . . .

 

 

 


Rural round-up

30/04/2014

PM turns first sod on Central Plains Water irrigation scheme:

Prime Minister John Key today turned the first sod of the $375 million Central Plains Irrigation Scheme near Hororata in Canterbury.

First conceived in 2001, Stage 1 of the 60,000 ha scheme is expected to deliver water to 20,000 ha of Central Canterbury in September next year.

Chief executive Derek Crombie said that the first major work on the $140m first stage, comprising the 17km-long headrace canal and bridges, will commence immediately, with construction of the 130km-long pipeline network picking up momentum mid-year.

“We expect to have up to 150 contractors working on a number of sites in the near future and to this end we are heartened by the experience of our two major contractors, Fulton Hogan/John Holland JV on the headrace canal and Downers, supported by subcontractors Aquaduct NZ Ltd, for the pipe network. . .

Construction begins on Central Plains Water irrigation scheme in Canterbury:

Primary Industries Minister Nathan Guy has welcomed the official start of construction on the Central Plains Water irrigation scheme in Canterbury, which has the potential to create up to $1.4 billion in new economic activity.

“This is a proud day for the Canterbury region, with major benefits both economically and environmentally.

“When fully completed the scheme will irrigate about 60,000ha in the central Canterbury area, bounded by the Rakaia and Waimakariri Rivers, and the foothills and State Highway 1.

“It’s estimated there will be additional economic activity of between $1 billion and $1.4 billion created, an export boost of $300 million per year, and around 1,100 new fulltime equivalent jobs. . .

Sheep and beef farm profits forecast to increase 35 per cent:

Beef + Lamb New Zealand’s latest forecast, released today, tells a positive story for farmers and the wider industry.

The organisation’s Mid-Season Update predicts better pricing and strong demand for sheepmeat and beef products from key markets.

The report outlined improved product prices which are expected to drive average sheep and beef farm profit up by 35 per cent on the drought-affected level of last season. The Mid-Season Update estimates that farm profit before tax for the 2013-14 season will rise to an average of $113,700 per farm.

B+LNZ Economic Service Chief Economist Andrew Burtt says total gross farm revenue is expected to increase 9.2 per cent to $460,200, reflecting a 12 per cent increase in sheep revenue. Total farm expenditure is estimated to be up 2.8 per cent, to $346,500, on the back of increases in repairs and maintenance expenditures. Interest expenditure dropped by 2.6 per cent, thanks to a slight decrease in farm debt and lower interest rates. . .

The full report is here.

Agricultural footprint risks getting out of balance – Allan Barber:

While not exactly a new or revolutionary call for action, Fish and Game’s call last week for an independent review of water use and leaching into waterways was another bit of pressure on the future development of New Zealand farming. The organisation has long been agitating for such a review, but the Parliamentary Commissioner for the Environment’s critical report on land use and nutrient pollution in waterways has provided it with further ammunition.

Inevitably dairy is cited as the main culprit for the increase in pollution because stocking rates are higher and there is more runoff into rivers and waterways from dairy than from sheep and beef. Fonterra says it has collected nutrient data from nearly 4000 farms which will provide information on how to mitigate the impact of nutrients; in addition fencing of waterways is now an obligatory condition of milk collection, although Fish and Game questions how rigorously this is being audited.

According to modelling by NIWA and Motu Economic and Public Policy Research, by 2020 a further 400,000 hectares of sheep and beef farm land will have been converted to dairy. There will be a large increase in nitrogen runoff in most regions including Canterbury, Southland, Otago and Wellington. . .

Kiwi and Korean deer farmers to work together:

The deer industry plans to work with Korean deer farmers to further build demand for New Zealand deer antler velvet in South Korea, its largest market.

“The Korean Deer Breeders Association used to be opposed to velvet imports, but they now accept that by working together we can grow the pie for their farmers, as well as ours,” says Deer Industry New Zealand (DINZ) chief executive Dan Coup.

Long part of the allure of deer farming, with an Asian medical pedigree going back thousands of years, velvet has recently stepped into the modern era.

“In South Korea there is growing demand among affluent consumers for health foods and tonics based on traditional ingredients like velvet and ginseng. Because of New Zealand’s reputation for natural, safe and quality-assured product, respected Korean food companies see us as the ideal source of velvet,” Mr Coup says. . . .

Fonterra takes sustainable dairy farming to YouTube:

Fonterra Co-operative Group Limited is putting dairy farm water and environmental conservation in the spotlight with the launch of a series of YouTube videos focusing on responsible dairying initiatives taking place on New Zealand farms.

Entitled Farm Focus, the series begins today and will feature one farm every Wednesday for four weeks on Fonterra’s YouTube channel. The videos will also be posted on Fonterra’s Facebook and Twitter pages under the hashtag #farmfocus.

The four farms featured are from the central and eastern North Island of New Zealand. Each video accounts for one farm and the activities undertaken to protect waterways and natural resources while enhancing the economic viability of a farm. . . .

Birds are on the menu once more:

The 2014 Gamebird Food Festival is opening this Saturday with restaurants from Kerikeri to Invercargill opening their kitchens to cook either this year’s catch of duck, pheasant and quail, or commercially sourced birds.

So far 13 restaurants have confirmed they are taking part in this year’s Gamebird Food Festival to celebrate the hunting season, which opens on Saturday (3 May).

The aim of Fish & Game New Zealand’s Festival is to promote game birds as a delicious, free-range food source: Hunters can take their own birds into participating restaurants to have them prepared by professional chefs, or non-hunters can choose commercially sourced duck, pheasant or quail from the menu. . .

Yealands Family Wines wins ‘Green Company of the Year’ in leading global sustainability awards:

Yealands Estate has been selected as the “Green Company of the Year” by the UK’s leading drinks publisher, Drinks Business.

The Green Awards are the world’s largest programme in the drinks trade raising awareness of green issues and recognising those leading the way in sustainability and environmental practice.

Founder of Yealands Family Wines, Peter Yealands, says this global recognition is another welcome endorsement of their philosophy, culture and focus on continual environmental improvement. . .


Rural round-up

09/02/2014

Agribusiness project is a classified success :

When young couple Shane Carroll and Nicola Shadbolt wanted to find equity partners to help them realise their dream of managing a big farming operation they put an advertisement in the newspaper.

“If you’ve got the money, we’ve got the expertise – let’s get together,” they said.

It worked. And 27 years later they are equity partners and managers of a diverse agribusiness in Manawatu’s picturesque Pohangina Valley.

Westview Farm is a combination of agribusinesses shaped by equity partners, farmer-managers and employees on the ground.

Carroll and Shadbolt, his wife and business partner who is well known as a Massey University professor of farm management and a Fonterra director, are the managers and part-owners of an organisation that runs dairy, deer, beef and sheep units. . .

Concerns about over-reliance on China:

A WARNING on heavy reliance on the one market of China has been sounded by Beef + Lamb NZ chief economist Andrew Burtt.

China’s continued growth as a market for New Zealand meat is one of the main trends showing in Beef + Lamb’s export figures for the 2013-14 first quarter, Burtt told Rural News. 

Mutton exports to China doubled in the first three months compared to the same quarter last year. But the continuing growth of China as a market comes with the qualification “about extrapolating that will go forever,” Burtt says. 

The other message is “that New Zealand’s traditional markets are still important to us.

Politically stable, economically stable, and they are wealthy and remain important”. . .

Farmers must look beyond farm on sustainability:

THE DAIRY industry’s contribution to sustainability shouldn’t be confined within the farmgate, says Hauraki Plains farmer Conall Buchanan.

Apart from keeping their farms environmentally sound, involvement in local schools and community projects allows interaction and helps improve public perception of dairy farming and farmers.

Buchanan notes in Hauraki Plains a natural link between the farming sector and the community, high levels of interaction allowing community concerns to be passed to farmers. . .

Women make an impression in dog trialling:

A couple of female dog triallists gave their male counterparts something to think about at the Oxford Collie Club’s Dog Trials.

In a historically male-dominated sport, the top two places in the zig zag hunt, judged by Perry May, went to Nicky Thompson and runner-up Steph Tweed.

The trials have been held by the club for the past 94 years.

This year’s event was held in near-perfect conditions, barring some late southerly rain on day two, when most courses were nearing completion.

Club president Lionel Whitwell said the decline in sheep farming had affected many dog trial clubs, and the triallists were fortunate that good-quality sheep had been sourced from local farmers Alan and Wayne Feary. . .

4 weird things dairy farmers are obsessed with – Modern Milk Maid:

Fat

Nothing to do with their own weight or others. Dairy farmers in Canada are paid based on the “components” of milk-butterfat, protein, and other solids such as lactose. Butterfat is the moneymaker, and every farmer I know loves to compare their results. Fun fact-whole milk is only 3.25% fat! My herd is currently averaging 4.3%. Low butterfat can indicate illness. Diet, genetics, and cow comfort all contribute to how much fat a cow will produce.

Semen 

Bull semen, that is. Choosing a bull that fits with your herd goals-improving looks, milk yield, or health traits is a never ending task. . .

Top German chefs light fire under lamb promotion:

WHEN FARMERS raced Michelin four-star chefs to create the best barbecue lamb dish, the results were mouthwatering. 

The New Zealand Lamb BBQ Masterchef contest  was held at Rob Buddo’s farm, Poukawa, Hawke’s Bay on January 29.

Judges were Black Barn Bistro chef Terry Lowe, Progressive Meats managing director Craig Hickson, Beef + Lamb NZ chief executive Scott Champion and gourmet BBQ chef Raymond van Rijk.

The winning team was Angus Irvine and Sam Morrah, of Central Hawke’s Bay, guided by chef Markus Philippi prompting diners’ satisfaction. . .

 


Lamb drop 2m down because of drought

06/09/2013

The impact of last season’s drought in the North Island has taken a siginifcant toll on stock numbers.

Last season’s North Island drought has dented New Zealand’s sheep and cattle numbers and this spring’s lamb crop is expected to be 2 million lambs less – down 7.7 per cent to 24.43 million head.

The Beef + Lamb New Zealand (B+LNZ) Economic Service annual stock number survey confirms what many predicted, following the recent prolonged and extensive drought. The survey provides the country’s sheep and beef sector with a prediction of the productive base of livestock for the 2013-14 season.

While both sheep and cattle numbers fell – 1 per cent and 1.3 per cent respectively – it is the lamb crop that reflects the drought’s impact most significantly.

The export lamb slaughter for 2013-14 is expected to be 18.6 million head, a decrease of 8.5 per cent and the export cattle slaughter is forecast to decrease 2.7 per cent to 2.2 million head in 2013-14.

This will have a big impact on the meat industry and also on other businesses which service and supply farms including shearers and stock firms.

B+LNZ Economic Service Chief Economist, Andrew Burtt says the drought conditions affected ewe condition at mating and, consequently, scanning results were variable across the North Island.

“We’re expecting lambing percentages to be down by up to 20 percentage points in the regions worst hit by drought in the north. The South Island fared better and scanning results were down only a few percentage points – and that’s against last season, which was favourable in the south.”

Overall, sheep numbers were down 1 per cent to 30.94 million head at 30 June 2013, compared to 31.26 million a year earlier.

Mr Burtt says breeding ewe numbers were also down 1 per cent overall, but the numbers in each island moved in opposite directions. “Ewe numbers in the North Island decreased by 2.7 per cent to 9.52 million, while South Island ewe numbers were almost static (+0.5%) at 10.69 million.

“Hogget numbers reflected a similar pattern – back 1.3 per cent overall, but down 3.5 per cent in the north and up 1 per cent in the south.”

Meanwhile, cattle numbers fell 1.3 per cent to 3.69 million head at 30 June 2013, from 3.73 million in 2012. “Again, the North Island figures tell the drought story, with numbers back 2.5 per cent – with particularly large decreases in East Coast and Taranaki-Manawatu – while the South Island’s cattle numbers rose 1.8 per cent.”

The full report is at Beef + Lamb’s website.


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